2023 Sustainability Report

Since July 2023, VIG Holding has had a

new Managing

Board.

Former Chairwoman Elisabeth Stadler and former member of the Managing Board Peter Thirring chose not to extend their mandates. Hartwig Löger, who served as Deputy Chairman, took over the leadership of the Board, while Managing Board member Peter Höfinger stepped into the role of Deputy Chairman.

See interview with Hartwig Löger on page 20

As part of the VIG 25 strategic programme, the Group also developed a new sustainability programme. In a collaborative process with the VIG insurance companies,

6 spheres of

impact

with specific focal points were defined.

See page 12

In 2023, VIG expanded its approach towards

responsible investment.

Existing criteria for investment decisions

were tightened and supplemented

with new criteria.

See page 30

The Ringturm building in Vienna, VIG's head office that was built in the 1950s, has been compliant with EU Taxonomy requirements since 2023 and is therefore considered

officially

environmentally

friendly.

Aspects that contributed to this certification include the use of district cooling, LED lighting, thermal refurbishment and the installation of photovoltaic systems.

See page 44

"Our resilience and stability are the prerequisites for achieving sustainable value."

VIG is special. This is exactly why it can make a difference. As a group of over

50 companies with some 29,000 employ- ees, we have an impact on the lives of a great number of people: for our approximately 32 million customers, we protect what matters. We also have an impact on our shareholders, the national economies in which we operate, local communities, the environment, and even future genera- tions. With our VIG 25 sustainability pro- gramme, we aim to ensure that this impact is positive and sustainable.

What makes VIG special? We put the core value of diversity into practice. This is reflected in our decentralised structure and in the vast scope for decision-making given to our local insurance companies. This makes us flexible as well as innovative - and therefore resilient. Our resilience and stability are the prerequisites for achieving sustainable value.

Sustainability for us means not least a profitable business model that ensures the Group's continued economic existence. At the same time, we want to generate added value for all of our stakeholders. This position has been embodied by our Group from the very beginning. What has changed in recent years, though, is that we have made this position explicit and have systematically embedded it into our business model.

The most recent milestone of this development is our VIG 25 sustainability programme, which we created in 2023 in collaboration with the CEOs of all Group companies. The programme sets out six spheres of impact in which VIG has a particularly relevant impact and, therefore, can make a particularly significant differ-

ence. We want to therefore act especially ­responsibly in these areas (more details on this can be found on pages 12 and 13).

We have defined specific focal points for every sphere of impact. In the three spheres of impact with a social aspect, for example, we want to promote risk literacy for the people in our markets so that they can make responsible decisions and can better deal with the risks of modelife. VIG will continue to improve customer satisfaction and also be an attractive employer who promotes diversity and equal opportunity.

In the three spheres of impact with an environmental focus, our commitment is clear: In the area of investments, in the underwriting portfolio and in our own office operations, we are striving for net zero by 2050, in line with the EU's climate targets. We intend to reduce our greenhouse gas emissions-such as CO2-as much as possible by this date, and to neutralise any remaining emissions.

As you can see: the added value that VIG creates takes many forms. It is as diverse as our stakeholders - and VIG itself.

Hartwig Löger

Chairman of the Managing Board

As

set

Manage m e n t  

Expansion of

Innovations for additional customer benefits, better understanding of our customers' needs

environmental know-how and net zero by 2050 - including the corporate and retail underwriting

58

  s e e yolpmE

portfolio

38

Private households Suppliers of services Suppliers of materials Reinsurers

Capital providers

PROCUREMENT MARKETS

Corporate Governance, Strategy, Controlling, Human Resources, General Secretariat and Legal, Risk Management, Compliance, IT, Finance and Accounting, Business Organisation, etc.

Sources used: Dieter Farny, 2011, Versicherungsbetriebslehre (Insurance Operations), Verlag Versicherungswirtschaft GmbH, Karlsruhe, p. 98 ff

Thomas Köhne, 2017, Industrialisierung (in) der Versicherungsbranche (Industrialisation in the Insurance Industry), in: Wagner, F. (editor), Gabler Versicherungslexikon (Gabler Insurance Encyclopaedia), Wiesbaden, p. 430 ff

Who is VIG?

Find out more about the leading insurance group in CEE in this video at annual-report.vig/2023/profile

CEE: Central and EasteEurope, including Austria. The aim is to take advantage of the long-term growth opportunities offered by these 20 countries.

Special Markets according to the country portfolio:

Specific objectives will be pursued in each of these ten countries.

UA

2

GE

TR

VIG serves private and corporate customers in its insurance business and also provides reinsurance. The product range includes, among oth- ers, motor third party liability and motor own damage insurance, accident insurance, liability insurance, fire and natural hazards insurance as well as travel insurance. A large number of life and health insurance products are offered for individuals and groups. These include, for example, supplementary health insurance, nursing care insurance, endowment insurance, term life insurance and investment-oriented products. In accordance with VIG's strategic cornerstones, products are sold through a variety of distribution channels in all markets.

Life - without profit participation 5.4%

Life - with profit participation 7.8%

Life - Unit- and index- linked 0.9% (0.9%)

Health 6.8%

Insurance service revenue by line of business in 2023

Motor third party liability 17.4%

Motor own

damage 14.7%

STRATEGIC

PRINCIPLES

The VIG mission statement, strategic objectives and clear management principles determine the long-term course followed by the Group.

Mission statement

Our vision

We want to be the first choice for our customers. Our stakeholders see us as a stable and reliable partner. This enables us to consolidate our position as the leading insurance group in Central and EasteEurope.

Our mission

We stand for stability and competence in the field of risk protection. We use our experience, know-how and diversity to move closer to our customers. We see it as our responsibility to protect the values that matter to our customers.

Our values

Diversity

Customer proximity

Responsibility

Our promise

We enable customers

to live a safer and better life: ­Protecting what matters.

Strategic objectives

Expansion of leading market position in CEE

Creating sustainable value

Sustainability goals in six spheres of impact

On the basis of this long-term strategic orientation VIG formulates medium-term objectives. For example, the Group aims to be at least one of the top three insurance groups in each CEE market by 2025 (with the exception of Slovenia). It intends to increase premium volume by taking advantage of long-term opportunities in health insurance and future provisions in the CEE region, among other things. Creating sustainable value improves aspects such as efficiency in the operating business,

for example by making more targeted use of synergies between companies. The Group-wide sustainability programme aims to ­further strengthen sustainability as an integral component and foundation of the business model and thereby also ensures the Group's future success (see page 12).