Outlook for VIG Insurance Group 2023
As market leader in Central and Eastern Europe, VIG Insurance Group with its roughly 29,000 employees is in an excellent position to take advantage of the opportunities available in this region and the long-term growth options they offer. It is therefore implementing its VIG 25 strategic programme, which was developed together with the CEOs of the VIG insurance companies based on trends and developments in the insurance business and comprises the financial years through to 2025. In addition to creating sustainable value and achieving sustainability objectives, one of the key objectives of the programme is to expand the leading market position in Central and Eastern Europe, with the aim of achieving at least a top three position in each CEE market, with the exception of Slovenia. A major step in this direction is the successful acquisition of the companies in Hungary and Türkiye that were formerly part of the Dutch Aegon Group. This took VIG to number one in the Hungarian market. For the acquisition of the remaining Eastern European business of Aegon with companies in Poland and Romania, only the approval from Romania is pending for a closing. It is expected to be formally concluded in 2023.
A range of 150 to 200% is specified for the VIG Group solvency ratio without taking into account transitional measures for underwriting provisions used by some individual Group companies. The new financial reporting, as set out by IFRS 9/17, which took effect on 1st January 2023 will lead to the relevant financial KPIs being adjusted. The new accounting standard will not have any impact on the strategy or business model of VIG. Further information on the impact of IFRS 9/17 on the consolidated balance sheet and the consolidated shareholders’ equity can be found in the notes to the consolidated financial statements starting on page 65.
In line with the current dividend policy, which provides for a distribution in the range of 30 to 50% of Group net profits, the Managing Board recommends to the relevant bodies that the dividend be increased from EUR 1.25 to EUR 1.30 per share for the financial year 2022. This corresponds to an increase of 4.0% compared to the previous year and a dividend payout ratio of 35.7%. The dividend per share is based on the company’s success and takes into account the current volatile environment.
The development of the financial year 2023 is difficult to assess due to a number of uncertainty factors, especially associated with the ongoing war in Ukraine and its far-reaching consequences. The weaker macroeconomic environment and higher levels of volatility expected on the financial markets are currently restricting the ability to predict business trends. In this context, and in view of the transition to a new financial reporting from 2023, any firm outlook for 2023 pursuant to IFRS 9/17 can only be provided during the course of the year. Given that VIG has been able to manage the current challenges in its insurance business operations very well so far, following 2022 the Group continues to aim to achieve positive operating performance in 2023, subject to the factors mentioned above.
Vienna, 20 March 2023
The Managing Board:
General Manager (CEO),
Chairwoman of the Managing Board
Deputy General Manager,
Deputy Chairman of the Managing Board
CFRO, Member of the Managing Board
Member of the Managing Board
COO, Member of the Managing Board
CIO, Member of the Managing Board
Member of the Managing Board
CTO, Member of the Managing Board