The Central Functions segment includes VIG Holding, VIG Re (including the branches in Germany and France), the VIG Fund, non-profit societies, corporate IT service providers, intermediate holding companies and, since the 1st half of 2018, Wiener Re. VIG Holding primarily focuses on managerial tasks for the Group. It also operates as the reinsurer for the Group and in the international corporate business.
The Group’s own reinsurance company, VIG Re, was formed in Prague in 2008 and is a successful reinsurance provider for both Vienna Insurance Group companies and external partners. VIG has established itself as an important company in the CEE region and follows a conservative underwriting and investment strategy. Standard & Poor’s confirmed VIG Re’s A+ rating with a stable outlook in the summer of 2018.
Financial performance indicators in the Central Functions segment
Premiums written in the Central Functions segment rose 12.2% in 2018 to EUR 1,584.3 million. This was mainly the result of an increase in internal Group reinsurance through VIG Holding and an increase in premiums generated by Group company VIG Re entering new reinsurance business areas (Western Europe). In addition, Wiener Re was added to the Central Functions in the 2nd quarter of 2018.
A profit before taxes of EUR 70.2 million was recorded in the Central Functions segment in 2018 (2017: loss of EUR 16.7 million). The positive result is primarily due to the non-profit societies in the real estate area, lower expenses in the IT area and an improvement in the technical result.