The international rating agency Standard & Poor’s (S&P) reconfirmed the A+ rating with a stable outlook for Vienna Insurance Group (VIG) on 30 August 2018.
Standard & Poor’s rates VIG’s business risk profile as strong. This is based on its market leadership in Austria and Central and Eastern Europe and its broad product portfolio in non-life, life and health. VIG’s multi-brand strategy, well-established multi-channel distribution strategy and geographic and business line diversity were other important factors in the outstanding S&P rating. Extending the cooperation with Erste Group until 2033 and the related expansion of bank distribution were seen as a competitive advantage.
VIG’s capital adequacy satisfies the requirements for an AAA rating. S&P highlights that Vienna Insurance Group’s solvency ratio being robust in the context of the company’s interest rate sensitivity. Its good profitability and improved cost efficiency were also positively mentioned. VIG’s exceptional level of liquidity is considered a strength. S&P stated that Vienna Insurance Group management consistently and successfully implements planned measures to achieve targets for the Group and all major business lines.
