Investing customer funds is an important and challenging task that demands great responsibility and consideration of a number of factors such as liquidity, profitability, diversification and the assessment of a variety of risks. VIG's conservative investment policy ensures that investments are secure and profitable at the same time. The Group has always been highly risk-conscious when making investments.
VIG followed a strategy of steadily increasing the quality of its portfolio even before the outbreak of the financial crisis. The Group has a very strong investment portfolio, and added high-quality investments to it in 2012. The focus continues to be on further increasing government bond holdings, particularly in core European countries and countries where Vienna Insurance Group operates. In general, holdings of subordinated debt securities and bank bonds were further reduced. The equity allocation in the year under review remained approximately at the same level as the end of 2011.