Standard & Poor’s confirms “A+” rating with stable outlook

Standard & Poor’s assessed the business risk profile of VIG as „strong“ based on the leading market position in Austria and Central and Eastern Europe (CEE). The geographic and business line diversification and the well-established multichannel distribution strategy are highlighted. VIG’s exclusive bancassurance cooperative agreement with Erste Group and the multi-brand strategy are also seen as a competitive advantage. According to S&P, VIG benefits from the prosperous economy in Austria and CEE, although the growth potential is primarily seen in the CEE markets.

The financial risk profile is rated as „very strong“. Ample capitalisation of the Group reached “AAA” level in 2016, based on S&Ps internal risk-based capital model. S&P considers VIG’s conservative investment and reinsurance strategy making the Group relatively resilient against capital and earnings volatility. VIG’s financial flexibility is mentioned favourably and the liquidity of the Group is described as “exceptional”. This in conjunction with an „adequate“ enterprise risk management and „strong“ management and governance of the Group led to the confirmation of VIG’s rating, which was again given a stable outlook.