The core strategies are accompanied by the following management principles, which are intended to ensure optimal access to customers, mutual exploitation of synergies and broad risk diversification throughout the Group:
Think globally – act locally
As a result of the many acquisitions made in recent years, the management of the Vienna Insurance Group has considerable experience in successfully integrating new purchases into the Group. The Group’s goal is to combine the local experience of employees with the quality standards of the Group, in order to enable high-quality insurance services to be offered in all markets.
The philosophy of the Vienna Insurance Group includes a multi-brand policy under which newly acquired companies continue to operate using their existing brand names, which are already established locally and known to customers. This allows existing distribution relationships to be maintained and the focus of marketing activities to be placed on the steady development of these companies.
The use of Group-wide synergy effects makes it possible for individual companies to develop products specifically designed for their markets, carry out local marketing campaigns and enter into suitable cooperative distribution agreements for each market. Administrative and cost structures are kept lean through shared use of back office services (shared services) and uniform procurement of services within the Group.
In distribution, the Group relies on a combination of its own sales force, brokers, agents and bank distribution. Multi-channel distribution is used to ensure optimal exploitation of cross-selling potential and to avoid dependency on any one distribution partner.
Anchored in the local market
The great majority of Group companies have their own local management with many years of experience in the market environment prevailing in their countries. Stra tegic control of the local companies takes place in close cooperation with the Executive Board of the Group.
When there is more than one subsidiary in a country, the smaller subsidiaries are assigned organisationally to the largest subsidiary, which provides direction. In general, profits earned are allowed to remain in the relevant companies and/or countries so as to support further business growth.
Support from headquarters
The local companies receive support from the Group in key business areas, in particular
- a Group-wide reinsurance concept,
- provision of actuarial services by the Group’s actuarial department,
- EDP support,
- cross-border support for corporate customers, and
- investment management.
The Vienna Insurance Group believes that this approach provides Group companies with the flexibility needed to optimally adapt themselves to local market conditions while allowing the Group to attain its strategic goals.
The Group’s constant aim is to keep risks low by broadly diversifying in all segments. This is achieved by geographic diversification and the use of a variety of distribution channels by the Group, which currently operates in 23 countries. As a result, any deterioration of the insurance environment in one market will have only a limited effect on the Group as a whole.
The multi-brand strategy enables the Group to address different target groups and to use a variety of distribution channels in the individual countries. The Group strives to achieve a balance between life and non-life business and between private and corporate customer business in each market.