Vienna Insurance : 2023 VIG Group Annual Report

Result before taxes

in EUR million

Development of the net combined ratio

in percent

Net claims ratio

Net cost ratio

Income statement

Gross written premiums

Insurance service revenue - issued business

Total capital investment result

Result before taxes

Net result for the period after taxes and non-controlling interests

Net combined ratio

Net claims ratio

Net cost ratio

Balance sheet

Total capital investment portfolio

Consolidated shareholders' equity (including non-controlling interests)

Insurance contracts liabilities issued

Total assets

Operating return on equity (Operating RoE)

Contractual Service Margin (CSM)

Share

Number of shares

Market capitalisation

Average number of shares traded by day

Book value per share1

End-of-period price

High

Low

Share performance for the year (excluding dividends)

Dividend per share

Dividend yield

Earnings per share3

Price-earnings ratio as of 31 December

Employees

Number of employees (annual average)

EUR million

EUR million

EUR million

EUR million

EUR million

%

%

%

EUR million

EUR million

EUR million

EUR million

%

EUR million

Piece

EUR million

Piece

EUR

EUR

EUR

EUR

%

EUR

%

EUR

284.3-12.2

772.7 585.7

559.0 472.3

92.692.8

62.161.5

30.431.3

15.111.6

5,797.2 5,838.1

128,000,000 128,000,000

3,392.00 2,860.80

~33,000 ~56,000

42.48 40.80

26.500 22.350

27.350 26.850

22.250 20.650

18.57 -10.24

1.4021.30

5.285.82

4.313.63

6.156.16

29,405 28,832

in EUR

Life - without profit participation 5.4% (5.1%)

Life - Unit- and index-linked 0.9% (0.9%)

Health

6.8% (6.7%)

Motor own damage 14.7% (14.2%)

EUR 4.31

Earnings per share

Top result in a challenging environment

EUR 1.40 dividend per share An increase of the dividend to EUR 1.40 per share will be proposed at the Annual General Meeting based on the new dividend policy.

Diversity is one of VIG's core values. It does not consider itself as a purely centrally managed group, but rather as a group of companies that act independently. This enables quick decision-making,motivates our approximately 29,000 employees, and makes VIG flexible and innovative. This is also expressed on the cover of the 2023 reports. Diversity creates added value - both for VIG and its stakeholders.

Four good reasons to invest in VIG:

1 Broad portfolio with growth potential

•  Insurance solutions in the property/casualty, life and health business across 30 countries

•  Over 30 years of M&A experience in the CEE region •  Organic and inorganic growth initiatives to further

expand VIG's leading market position

2 Financial stability

•  "A+" rating with stable outlook from Standard & Poor's •  Solvency ratio of 269% in 2023

•  Continuous dividend distribution every year since 1994

Solvency ratio of 269%

VIG continues to be very well capitalised.

EUR 1,199 million

in green bonds

In addition to ecological criteria, VIG considers social criteria in their investment strategy.

More information on VIG shares and the contact information for the Investor Relations department is available on the VIG website at group.vig/investor-relations

3 Proven management principles ensure customer proximity

•  Local entrepreneurship for taking quick, flexible action on the market

•  Multi-channel distribution to exploit all sales opportunities •  Multi-brand policy to ensure broad appeal in relation

to ­target groups

•  Conservative investment and reinsurance policies create trust

4 Sustainability as an integral part of the business model

•  Sustainability program with a focus on six spheres of impact: Investments, underwriting, operations, employees, customers, society

•  Declarations of "Responsible Investment" and "Responsible Insurance"

Read more in the 2023 Sustainability report or at group.vig/sustainability/downloads

Dear Shareholders,

Ladies and Gentlemen!

It is with great pleasure that I present to you the current VIG Group Annual Report. Together with our Group companies we have succeeded in continuing the very positive dynamic and conclude the financial year with outstanding results. In the first full year after the adaption of the

accounting­ standards our Group showed an insurance service revenue of EUR 10.9 billion and a pre-tax result of EUR 772.7 million. This corresponds to an increase in turnover of 12.2% and an increase in results of 31.9%. The insurance service revenue is

one of several new key figures under IFRS 9 and IFRS 17 that you will come across in the report. They include the consideration that an insurance company receives or expects to take over insurance risks.

Interest rate turnaround and inflation significantly shaped 2023. The

increased­ interest rates had a positive effect on our earnings and solvency position. On the other hand, rising prices increased claims handling costs. This effect, however, could be kept within limits - on the one hand by measures to increase efficiency, and on the other hand by inflation-­ related premium adjustments that are

Key figures 2023

EUR 13.8 billion gross written premiums (+9.8%)

EUR 10.9 billion insurance service revenue (+12.2%)

Result before taxes:

EUR 772.7 million (+31.9%)

92.6%

Net combined ratio

included in many insurance contracts via indexation.

The 2023 results show: You can rely on VIG at all times. For me personally, it is extremely important that this continues to be the case in the future. Therefore the question: What makes us resilient? I am convinced: It is our diversity

>

Group. The fact that VIG's independent companies operate close to the market and the needs of the customers. This makes us flexible and enables individual action. Thus, we create added value by diversity for all our stakeholders.

A dividend at last year's level or higher The strength and stability of VIG also benefits you, our shareholders. Since our initial listing on the Vienna Stock Exchange in 1994 we have continuously paid a dividend every year. The previous dividend policy foresaw a distribution of 30% to 50% of the Group net profit. From 2024 onwards, our focus will

be even more on the resilience and predictability of VIG. We now strive for a dividend per share that at least corresponds to the previous year and increases continuously depending on the operative performance. On the basis of the dividend adopted in 2023 and the excellent business performance we will propose to the Annual General Meeting a dividend of EUR 1.40.

New ways to collaborate

In order to continue the positiv dynamic of the Group it is important to keep alive VIG's recipe for success and develop it further in line with the requirements of an increasingly complex world. There- fore, we took a few significant steps in the second half of the year in order to expand collaboration within the Group.

It was always clear for VIG: Diversity and solidarity go hand in hand for us. That is what connects us and makes us a Group. Thus, a Group is more than the sum of its parts. Diversity means

New financial reporting

As of 1 January 2023, VIG Insurance Group for the first time applied the IFRS 9 and IFRS 17 accounting standards. The first-time application leads to significant changes and therefore has a material influence on this Group Annual Report including adjusted comparative information for the previous year. Details of the changes from page 65.

working independently and at the same time supporting each other in the best possible way. The newly created division CO3 takes up this approach with the goal of strengthening the collaboration within our Group.

CO3 stands for "collaboration,

­cooperation and communication". The range of activities in collaboration is wide: they include better exchanges between the departments within a company as well as the networking of peers over different companies and national borders. There are already numerous very well established formats for this - others are currently in the making. In contrast to this, cooperation describes the collaboration of two or more companies in the same country. Communication, in addition to the familar tasks of corporate communication and marketing, forms the bracket over all collaboration and cooperation focal points and makes these visible via different channels.

With all this, VIG remains true to its values and management principles. We continue to live local entrepreneur- ship. Because the solutions to identify and leverage synergy potentials are developed locally, with consideration of the market conditions. Our multi-brand ­policy, the differentiated approach to the customers, remains the same. Hence, we also see added value through diversity here.

Future topics in view

In addition to CO3, the digital, social and ecological (climate) transition will keep us very busy with the further

development­of our business model. Parallel to diverse technical innovations, such as the use of AI models for automatic claims handling, IT security and the protection of infrastructure and corporate data are increasingly important. Also in this area we are strengthening the organisation of the Group with corresponding structures and support measures for all our companies. We want to include new possibilities in ­approaching our customers via systematic cooperation with digital platforms, as well as to expand assistance not only to new products but also to new markets.

Sustainability has always characterised the group. In recent years we have started to anchor this subject explicitly and systematically in all our business- es. The sustainability program that was formulated in 2023 - jointly with the CEOs of the Group companies - defined specific goals in six spheres of impact. This strengthened sustainability as an

© Ian Ehm

VIG 25 Sustainability Programme

The new VIG sustainability programme defines six spheres of impact.

Asset management, underwriting and operations have a focus on ecology, while employees, customers and society primarily address social aspects. For more information on each sphere of impact, see page 14.

integral part of the business model. This will also be reflected in the future in a corresponding specific reporting based on new statutory regulations, such as EU's Corporate Sustainability Reporting Directive (CSDR).

Outlook

What can you expect from VIG in the future? We have no control over how our environment will develop but we do have control over how to deal with it. This makes it all the more important that we are in a position to continue to be proactive to trends and react quickly to changes. The initiatives of our programme as well as new ways of collaboration support us in this. The three strategic focus areas of the VIG 25 strategic programme target more efficiency, greater customer proximity

and expansion of the business model beyond the classical insurance business and ensure that we reach our goals by 2025.

With the outlined CO3 measures we improve our internal collaboration, maximise our strengths and ensure the continued positive performance of our companies and the entire Group. By systematic embedding of our ­sustainability goals we are taking a

significant­ step towards preserving a future worth living.

Hartwig Löger

Chairman of the Managing Board

Consolidated financial statements

58 Primary financial statements

1. Consolidated income statement
2. Consolidated statement of comprehensive income
3. Consolidated balance sheet
4. Consolidated statement of changes in equity
5. Consolidated cash flow statement

64 Notes

90 Explanatory notes to the net assets, financial position and operating results

149 Additional disclosures

1. Risk strategy and risk management

1. Declaration by the Managing Board
2. Auditor's Report

For VIG diversity and solidarity go hand in hand. You can read more about our ­commitment to society and the environment and about further aspects of responsible corporate governance in our Sustainability Report 2023 or at group.vig/sustainability

Service information

1. List of abbreviations

1. Glossary

1. VIG logo overview
2. Addresses of VIG insurance companies and pension funds

1. VIG Holding contact information

1. Address - Notes - General information

AT A

GLANCE

VIG is the leading insurance group in Central and Eastern Europe. It consists of the listed VIG Holding as well as more than 50 insurance companies and pension funds in

VIG country portfolio

VIG divides its region into two areas. First, the region of Central and Eastern Europe, which consists of 20 countries, including Austria, whose long-term growth opportunities will be exploited. Second, ten special markets where objectives specific to each market will be pursued. Four of these countries (Germany, Georgia, Liechtenstein and Türkiye) are in the "Special Markets" reportable segment.

30 countries. The Holding, with headquarters in Vienna, coordinates the Group-wide exchange and functions as the steering body.

The insurance companies rely on local brands. Their approximately 29,000 employees provide approximately 32 million customers with the best possible protection against the risks of ­ day-to-day life.

The strategy of VIG is oriented to profitable growth and the creation of added value through diversity: The wealth of different languages, cultures and entrepreneurial approaches ensures the greatest possible proximity to customers and promotes innovation and creativity. The decentralised structure makes the Group flexible and ensures quick decisions.

FR

Who is VIG?

Find out more about the leading insurance group in CEE in this video at annual-report.vig/2023/profile

NO SE

LV

LT

Market positions in the CEE

Market rankings 1st to 3rd quarters of 2023,

Moldova 1st to 4th quarters of 2022,

Hungary 1st to 4th quarters of 2023

CEE region

Special Markets according to the country portfolio

EE

BALTIC

STATES

1

BY

UA

2

MD

5

RO

1

BG

3

GE

TR