In implementing these objectives, the Vienna Insurance Group relies on the following four principles, which have proven themselves in the management of the Group:

Think globally – act locally

The Vienna Insurance Group uniquely combines an enormous experience of Group management with the know-how of local management, thereby ensuring that the standards of the Group become a part of fair, needs-based insurance solutions in every market, and benefit all customers.

Direct communication and the mutual exchange of knowledge are key features of the cooperation taking place throughout the Group, not just at the top management level. Management and employees of Group companies also regularly discuss best-practice examples, thereby making successful products and creative solution approaches available to one other.

This lively transfer of know-how makes it possible for the Vienna Insurance Group to repeatedly score points in the markets with innovative insurance solutions adapted to local conditions and customer needs.

Multi-brand policy

The multi-brand policy consciously pursued by the Vienna Insurance Group significantly differentiates it from other market participants in the region. Each Group company uses its local brand as its first name, followed by Vienna Insurance Group as its family name.

This allows established, well-known brands that already enjoy good customer recognition to be retained and helps to maintain the loyalty and commitment of local employees and managers. Established distribution relationships are also easier to continue using an existing brand. On the whole, the business of insurance companies can be developed with great success in this manner.

Each company, however, should also make effective use of its own brand, actively gaining new customers and retaining their loyalty. If maintaining a Group company’s own brand can no longer be justified based on the competition, these companies can also be merged, if necessary, with other companies in the Vienna Insurance Group, and local brand names can be withdrawn from the market.

The logos in the figure below show the diversity of the approximately 50 different local brands that together
form the V.I.G. Group:

Regardless of the different brands that are being used successfully together with multi-channel distribution, when the Vienna Insurance Group is represented by more than one company in a country, it always endeavours to exploit back-office synergies. Thus, areas without direct customer contact, such as accounting, purchasing, payroll, IT, investment, etc. are centralised within a country to realise potential savings. In this connection, the Vienna Insurance Group developed a Group-wide future-oriented action plan to reduce materials costs and improve processes in 2009. The Company plans to achieve cost reductions of EUR 100 million by the end of 2010.

Multi-channel distribution

Effective distribution and multiple distribution channels enable the business potential of a market to be fully exploited and therefore create a basis for the Vienna Insurance Group’s future growth. Optimal access to customers is ensured when multi-channel distribution is used in combination with the Group’s multi-brand policy. The Group uses salaried field staff to create a solid foundation for its distribution structure. In addition, depending on availability and efficiency, the Vienna Insurance Group also works together with exclusive and non-exclusive agents, brokers, multi-level and direct marketing organisations and banks.

The Vienna Insurance Group also gives great importance to distribution when making acquisitions. High-performance, sustained distribution capacity is always the main criterion used when a new company is acquired. The systematic development and expansion of distribution channels pursued in this manner over the course of the Vienna Insurance Group’s expansion is responsible for the outstanding position held by the Group in Austria and the CEE region.


The Group stands out for its broad diversification across countries, distribution channels and products, thereby minimising risks. The Vienna Insurance Group now operates in 23 different markets, and attempts to use a variety of distribution channels in these countries to achieve a balanced mix of business that contributes to the long-term positive growth of the Group. Local management has the best knowledge of the specific conditions and customer needs in their own markets and custom-tailors their own optimal product range by quickly and flexibly adapting the extensive range of products offered by the Vienna Insurance Group to match current demand in their country. In this way, the Vienna Insurance Group’s main objective of offering innovative insurance solutions for all areas of life and top-quality customer service in all markets can be achieved to the best degree possible. Diversification is, however, also important for investments and reinsurance, and the Group ensures an appropriate level of quality and risk spreading in these key areas in order to guarantee the maximum possible safety.

Principles essential for achieving V.I.G.'s goals (graphic)