S&P has awarded Vienna Insurance Group (VIG) an excellent “A+” rating with a stable outlook.
This places VIG among the top-rated companies in the Austrian Traded Index. The Group’s reinsurance company, VIG Re, based in Prague, also received an “A+” rating with a stable outlook.
S&P attributes this high rating to VIG’s robust capitalisation, even under extreme stress scenarios, with a confidence level of 99.99%. The rating agency underscores VIG’s strong performance in 2023, driven by solid underwriting results, a stable combined ratio, and a strong new business margin in life and health.
S&P also praised VIG’s conservative capital and financial management, which has led to a significant capital buffer and a smooth transition to IFRS 17.
The rating agency highlighted VIG’s market leadership in Austria and several Central and Eastern European (CEE) countries. VIG’s diversified insurance portfolio, robust sales capacity, and bancassurance partnership with Erste Group were also noted.
Additionally, VIG’s conservative reinsurance strategy effectively limits losses from adverse weather events in Austria and CEE.
According to S&P, the stable outlook is supported by the leading market positions held by multiple VIG companies in Austria and several CEE countries.
Looking ahead, S&P anticipates that VIG will continue to exploit its growth potential over the next two to three years.
S&P concludes, “Based on its capital resources and successful business model, Vienna Insurance Group is ideally positioned to participate in the exponential growth of the CEE region and to be a strong partner to its customers.”
