Investing customer money is an important and challenging task that demands great responsibility and the consideration of a number of factors such as rate of return, 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 has pursued a strategy of further increasing the quality of its portfolio since the outbreak of the financial crisis. Vienna Insurance Group has a very strong investment portfolio that continued to improve in quality and, therefore, security during the course 2011. The increase in the government bond weighting was focused primarily on core European countries, or those countries where Vienna Insurance Group operates. PIIGS country holdings were further reduced from an already very low level. The weightings of covered bonds and top-quality corporate bonds were also increased. Bank bond holdings and the equity allocation were reduced in the year just ended.