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1. Company Snapshot

1.a. Company Description

Vienna Insurance Group AG, together with its subsidiaries, provides various insurance products and services in life, health, and property and casualty areas in Central and Eastern Europe.The company provides motor own damage, rail vehicle own damage, aircraft own damage, transport, fire and natural hazards, third party liability, carrier, aircraft liability, general liability, credit, guarantee, legal expenses, assistance, marine, aviation, and travel health insurance products, as well as sea, lake, and river shipping own damage insurance.It also offers reinsurance products and services.


The company sells its products through sales employees, banks, brokers, and agents.It operates in Austria, the Czech Republic, Slovakia, Poland, Romania, the Baltic states, Hungary, Bulgaria, Turkey, Georgia, Albania, Kosovo, Bosnia-Herzegovina, Croatia, North Macedonia, Moldova, Serbia, Ukraine, Germany, and Liechtenstein.The company was founded in 1824 and is headquartered in Vienna, Austria.


Vienna Insurance Group AG operates as a subsidiary of Wiener Stadtische Wechselseitiger Versicherungsverein - Vermögensverwaltung - Vienna Insurance Group.

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1.b. Last Insights on VIG

Vienna Insurance Group's recent traction can be attributed to its steady performance and appeal as a dividend stock. Amidst European market stability, investors are seeking reliable income sources, and the company's consistent earnings and robust cash flow position it favorably. With the pan-European STOXX Europe 600 Index experiencing modest growth, Vienna Insurance Group's ability to offer stability in uncertain times is noteworthy. As a strong dividend stock, it is being considered by investors looking for steady returns, according to recent market assessments.

1.c. Company Highlights

2. Vienna Insurance Group's Strong 9-Month Performance and Strategic Expansion

Vienna Insurance Group (VIG) reported a robust financial performance for the first three quarters of 2025, with insurance service revenue increasing by 8.6% to EUR 9.7 billion. The company's profit before taxes rose by 31% to EUR 872.8 million, driven by an excellent technical result in Property and Casualty (P&C) and a low net combined ratio of 92.1%. The earnings per share (EPS) came in at EUR 1.46, significantly beating analyst estimates of EUR 0.69. The strong financial performance is a testament to VIG's operational efficiency and strategic initiatives.

Publication Date: Nov -26

📋 Highlights
  • Revenue & Profit Growth:: Insurance service revenue rose 8.6% to EUR 9.7B, with profit before taxes surging 31% to EUR 872.8M.
  • P&C Performance:: Net combined ratio improved to 92.1%, driven by favorable climate and fewer claims.
  • Strategic Acquisition:: 98.38% shareholder approval for NURNBERGER acquisition, enhancing Germany presence and diversification.
  • Capital Strength:: Solvency ratio at 286%, with own funds up 4% to EUR 11.7B, supporting EUR 500M credit facility for NURNBERGER deal.
  • Regional Growth:: Central Eastern Europe drives 12% health, 8% life, and 5.6% P&C growth, targeting expanded customer base and product offerings.

Financial Highlights and Outlook

VIG's financial performance was bolstered by growth across its business lines, with health insurance growing by 12%, property and casualty by 5.6%, and life insurance by 8%. The company's solvency ratio stood at 286%, and its own funds increased by almost 4% to EUR 11.7 billion. VIG raised its target range for 2025 profit before taxes to EUR 1.1 billion to EUR 1.15 billion, reflecting its confidence in continued strong performance. As Gerhard Lahner noted, "we have shown we can turn around non-life portfolios, and we can share our know-how," highlighting the company's capabilities in managing its insurance businesses.

Strategic Expansion through NURNBERGER Acquisition

VIG announced its intention to acquire a controlling stake in NURNBERGER, with a public purchase offer accepted by 98.38% of shareholders. The acquisition will strengthen VIG's presence in Germany and enhance its diversification. The deal is expected to be financed from VIG's own liquid funds and a EUR 500 million revolving credit facility. VIG expects the acquisition to enhance its internal financing capacities and support growth in Central and Eastern Europe.

Valuation and Dividend Yield

With a Price-to-Book Ratio (P/B) of 0.97, VIG's valuation appears reasonable, considering its strong financial performance and growth prospects. The company's Dividend Yield stands at 3.16%, providing an attractive return for income-focused investors. The acquisition of NURNBERGER is not expected to impact VIG's dividend payment from 2025 earnings, as Hartwig Loger stated, "our investment in NURNBERGER won't impact the dividend payment from 2025 earnings."

Growth Prospects and ROE

VIG's Return on Equity (ROE) stands at 10.48%, indicating a decent return on shareholders' equity. Analysts estimate next year's revenue growth at 6.8%, driven by the company's strategic initiatives and expansion in Central and Eastern Europe. The Evolve '28 program aims to drive long-term profitable growth through a dynamic evolution of its current business model, focusing on key areas such as country portfolio and company strategies, group programs, CO3, and values and principles.

3. NewsRoom

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European Dividend Stocks To Consider For Your Portfolio

Nov -20

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European Dividend Stocks To Consider In October 2025

Oct -01

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Vienna Insurance Group (WBAG:VIG): Is the Current Valuation Justified After Recent Volatility?

Sep -10

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Vienna Insurance Group AG (WBO:VIG) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...

May -28

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Vienna Insurance Group pre-tax profit rises 7.5% in Q1 2025

May -27

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Vienna Insurance bids for 80% stake in Moldasig

May -19

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Vienna Insurance Group picks 48.82% stake in Phinance

Mar -20

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Vienna Insurance Group AG (WBO:VIG) Full Year 2024 Earnings Call Highlights: Strong Growth Amid ...

Mar -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.00%)

6. Segments

Insurance and Pension Scheme / Fund

Expected Growth: 14%

The 14% growth of Vienna Insurance Group AG's Insurance and Pension Scheme/Fund is driven by increasing demand for retirement savings, favorable regulatory environment, and strategic expansion into Central and Eastern Europe. Additionally, the company's diversified product portfolio, strong distribution network, and effective risk management practices contribute to its growth momentum.

7. Detailed Products

Life Insurance

Provides financial protection to the policyholder's family in the event of death or terminal illness.

Non-Life Insurance

Covers damages or losses to property, liability, and other risks.

Health Insurance

Provides coverage for medical expenses, hospital stays, and other healthcare-related costs.

Pension and Provident Fund

Long-term savings plans for retirement, providing a steady income stream in old age.

Investment Products

Offers a range of investment options, including unit-linked life insurance and investment funds.

Motor Insurance

Covers damages or losses to vehicles, including liability for accidents.

Property Insurance

Covers damages or losses to buildings, contents, and other property.

Liability Insurance

Covers damages or losses resulting from accidents or negligence.

8. Vienna Insurance Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Vienna Insurance Group AG is moderate due to the presence of alternative insurance providers and financial institutions offering similar products.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration in the insurance industry, making it difficult for individual customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers of services and products, but some suppliers may have significant bargaining power.

Threat Of New Entrants

The threat of new entrants is low due to the high capital requirements and regulatory barriers to entry in the insurance industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple established players in the insurance industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 31.11%
Debt Cost 4.98%
Equity Weight 68.89%
Equity Cost 7.90%
WACC 6.99%
Leverage 45.15%

11. Quality Control: Vienna Insurance Group AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

62.6$

Current Price

62.6$

Potential

-0.00%

Expected Cash-Flows