Vienna Insurance Group is committed to following clear principles that have proven themselves even under difficult conditions and is currently in a stronger position than ever before. Premium volume has never been as high and VIG has never achieved better consolidated profits than in 2011. Management is therefore proposing that the dividend be increased to EUR 1.10. This makes the expected dividend rate consistent with VIG's predictable and transparent dividend policy.
The priority in 2012 will be on promoting further organic growth, that is, conducting operations using existing companies. This does not rule out acquisitions that would be a good fit for the current insurance portfolio.
VIG aims to continue growing faster than the market in coming years. The goal is to gain a clear competitive edge as the leading insurance group in Central and Eastern Europe through the best customer service. VIG feels that possibilities exist for better exploiting the markets in the Balkan countries and Ukraine. VIG would also like to further expand its position in other countries, such as Poland. In light of the situation in European markets VIG expects if at all to be negatively affected at times by sluggish revenues due to the slowdown in consumption.
VIG will continue to follow its policy of using a diversified local market presence and a conservative investment strategy in order to further strengthen its earning power.
At the same time, given the economic environment, Vienna Insurance Group will continue efforts to keep volatility as low as possible. VIG is continuously looking for areas of potential savings and the best use that can be made of them. VIG has set itself a goal of continuously optimising profitability. The planned cost reduction of EUR 20-25 million will primarily be achieved by more efficient administration, particularly in the companies in the CEE region, and increasing harmonisation of IT infrastructure within the Group.