The Central Functions segment includes VIG Holding (including the branches in Northern Europe), VIG Re (including the branches in Germany and France), Wiener Re, the VIG Fund, non-profit societies, corporate IT service providers and intermediate holding companies. VIG Holding primarily focuses on managerial tasks for the insurance group. It also operates as the reinsurer for the insurance group and in the international corporate business.
The reinsurance company VIG Re was formed in Prague in 2008 and is a successful reinsurance provider for both VIG insurance companies and external partners. It has established itself as an important company in the CEE region and follows a conservative underwriting and investment strategy. Standard & Poor’s affirmed VIG Re’s A+ rating with stable outlook in the autumn of 2020.
Financial performance indicators in the Central Functions segment
Premiums written in the Central Functions segment rose by 7.0% in 2020 to EUR 1,736.5 million (2019: EUR 1,623.5 million). In addition to an increase in premiums from the entry into new business areas (Western Europe) in active reinsurance generated by the insurance company VIG Re, an increase in corporate and large customer business was also recorded in VIG Holding.
A loss of EUR 107.6 million was recorded in the Central Functions segment in 2020 (2019: profit before taxes of EUR 36.5 million). This was due to the change in the consolidation method of the non-profit societies as of the reporting date of 31 July 2019, and an increase in amortisation caused by a reduction in the useful life of software.