Celebrating 30 years since IPO
The Initial Public Offering (IPO) of the company known today as VIG took place on 17 October 1994, when its shares were listed on the Vienna Stock Exchange for the first time. Thirty years later, we want to take a look back at VIG's development and to look ahead to what the future holds. Join us on a journey through three decades of VIG’s presence on the capital market.
Risk management is our core competence, then as now
In the German-language Sunrise podcast series ‘View from the Top’, Liane Hirner, CFRO, talks about the development and the capital market strategy of Vienna Insurance Group. She explains the regulatory hurdles for European insurers and how VIG has managed to optimise their use by implementing them in a forward-looking manner. Furthermore, Liane Hirner gives an insight into her career.
It is extremely important to us that we are seen as a reliable, stable partner by all our stakeholders. Our shareholders are an important stakeholder group. We work to continuously improve our results, which is also reflected in the key financial figures of recent years.
The stock market anniversary to read
VIG’s stock market history in a nutshell
How it all began: IPO in 1994
VIG, then Wiener Städtische Versicherung, paved the way for its IPO in 1992 by changing its legal structure to become a joint stock corporation.
The initial listing on the Vienna Stock Exchange took place on October 17, 1994, with only preferred shares (1,350,000 shares with a nominal value of 135 million Austrian shillings) being traded under the securities identification number 090 852. The issue price was ATS 1,030, excluding capital measures, with a free float of 11%.
Milestones in early capital market communication
Starting in the summer of 1995, Wiener Städtische launched its Internet presence with a website providing general information on the company as well as annual reports and press releases. In autumn 1999, the company relaunched its website, as online interaction was becoming increasingly important. A separate Investor Relations (IR) section was created, which provided current share price information and financial calendar dates, among other things.
In 2001, the company's 10th Annual General Meeting was broadcast online for the first time.
An online annual report specially prepared for the Internet was available in both German and English starting from the 2004 financial year.
In 2004, Wiener Städtische voluntarily underwent an active rating process by the international rating agency Standard & Poor’s for the first time. The initial rating of “A” with a stable outlook was upgraded to “A+” in 2005, which remains in place today.
Stock split
On July 19, 2004, the shares were split at a ratio of 1:7, making them easier to trade on the stock exchange and therefore attractive for small shareholders in particular.
Investor-friendly shares for a wider public
In 2005, the company stepped up its stock market engagement. In June, the preferred shares were converted into ordinary shares with voting rights (ISIN AT0000908504) at a ratio of 1:1. In so doing, Wiener Städtische took an important step towards a clear, investment-friendly capital structure. The company also committed to the Austrian Code of Corporate Governance. Wiener Städtische ordinary shares, held by Wiener Städtische Wechselseitige Versicherungsanstalt-Vermögensverwaltung, were included in trading on the Vienna Stock Exchange.
On 20 June 2005 the shares were added to the “Prime Market” segment on the Vienna Stock Exchange and to the ATX index on 19 September 2005.
The first capital increase took place in December 2005:
- The proceeds totalled around EUR 910 million and were primarily used to finance the Group’s further growth through acquisitions particularly in Central and Eastern Europe
- The offer price was EUR 49 per share.
- The capital increase comprised 18,642,400 new shares and a Greenshoe (over-allotment) of 2,796,300 shares from the main shareholder’s holdings.
- There was great interest among private investors in Austria, with a share of just under 40%. Employees were able to acquire new shares on preferential terms as part of the capital increase.
- The free float rose to around 29% as a result of the capital increase.
A department dedicated to the financial community
The first capital increase led to the establishment of a separate Investor Relations (IR) department headed by Thomas Schmee.
The company’s stock market initiative expanded the investor landscape. In addition to Erste Group, which has been providing continuous research on the company since 2005, international investment firms such as Citigroup, UBS and Goldman Sachs also began their research activities.
Three unforgettable letters: VIG
Starting on 1 February 2008, the shares started being traded under the name VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe (symbol: VIG). The trading name on the Vienna Stock Exchange was internationalised, taking into account the increasingly significant contribution the individual VIG companies in CEE were making to the overall result.
The company has also been listed on the Prague Stock Exchange since 5 February 2008. The listing in Prague underscores VIG’s focus on CEE markets.
Around the world in 14 days
VIG acquired Erste Group’s insurance activities in 2008, and a distribution partnership was established. VIG carried out its second capital increase to finance the transaction:
- The subscription and offer price for the new shares was EUR 49.50 per share.
- A total of 23 million new shares were issued with a total volume of around EUR 1.14 billion.
- Since then, 128 million VIG shares have been listed on the stock exchange.
VIG management undertook a veritable travel marathon with the aim of presenting VIG as an investment opportunity to as many investors as possible. Investor meetings were held in 23 different cities in twelve countries around the world, organised in three teams (red, blue, green), all in a span of just two weeks.
A busy schedule of conferences and AGMs
In August 2010, the operative insurance business in Austria was separated from the holding functions of the Group. The listed VIG Holding now concentrated on the management of the Group, international corporate business and reinsurance.
Nina Higatzberger-Schwarz took over as Head of Investor Relations (IR) on 1 January 2012. In its capital market work, the IR team and VIG management are in regular contact with analysts and investors in conference calls and at banking conferences and roadshows. Since this time VIG has engaged in outreach to retail investors at stock exchange events and takes questions from private investors in particular at the Annual General Meetings. While personal interaction remained the focus during this period, digital formats were also gaining in popularity.
New approaches for placing bonds and shares
VIG has been setting new trends on the capital market with its successful bond placements, a prime example being its sustainability bond issued in March 2021. VIG is the first insurance company in Europe to place a sustainability bond – and not just a green bond with a focus on environmental projects – on the market. The net issue proceeds are being used for projects in renewable energy, green buildings and clean transportation, as well as social projects for more affordable housing and improved access to basic services such as education and healthcare.
VIG shares have also been listed on the Budapest Stock Exchange since 11 November 2022, once again underscoring the Group’s focus on the CEE region.
Capital market communication goes digital
Successful capital market communication has been evolving to meet changing requirements against the backdrop of social and technological developments. New communication formats are emerging, while others are fading away. IR activities have been increasingly focused on expanding VIG’s digital presence. On 13 April 2022, the VIG IR LinkedIn channel went online with a video post about VIG IR’s objectives, requirements and tasks. It is the first IR LinkedIn channel in Austria.
VIG’s stock market history in pictures
VIG shares on the Vienna Stock Exchange
Share price development over the course of time. Navigate through the milestones of VIG’s stock market history as well as important internal and external events along the share graph.