EANS-News: Vienna Insurance Group shows strong resilience in EIOPA stress test CNE

12/14/2018, 6:01 PM (Source: euro adhoc)
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Vienna - Vienna Insurance Group (VIG) was the sole Austrian insurance group to
be invited to take part in the European Insurance and Occupational Pensions
Authority's (EIOPA) stress test. In all three quantitative test scenarios, VIG
achieved results of between 158 percent and 215 percent including the volatility
adjustment - well above the required minimum solvency ratio of 100 percent.

42 European insurance groups took part in the EIOPA stress test between May and
August 2018. Three quantitative scenarios were assessed on the basis of VIG's
solvency ratio of 220 percent as of 31 December 2017. The first scenario
examined the impact on solvency of increasing interest rates combined with
market value decline, mass surrender of insurance contracts and rising costs due
to inflation. The second scenario considered the protracted period of low
interest rates, combined with market value decline and increased life
expectancy. The third scenario focused on natural disasters, assuming the
occurrence of eight specifically defined catastrophes across Europe. In contrast
to previous EIOPA stress tests, this year's assessment covered not only the
effects on equity, but also the impact of stress on solvency.

Overall, the results of the tests were very satisfactory for VIG. Even in the
most challenging scenario for the Group, the solvency ratio was a solid 158
percent, or 138 percent without the volatility adjustment. Performance in the
low-interest-rate scenario was even stronger, at 186 percent, or 171 percent
without the volatility adjustment. Owing to VIG's conservative and effective
reinsurance policy, natural disasters would have only a minimal impact - in this
scenario, the solvency ratio would decrease from 220 percent as at year-end 2017
to 215 percent. "The results of the EIOPA stress test underscore the outstanding
strength of Vienna Insurance Group's capital base, which was again confirmed by
the rating agency Standard & Poor's in the summer of 2018. We have shown strong
resilience in conducted crisis scenarios under very difficult market conditions.
We see this as another positive indication that we can be a stable and reliable
partner," commented Elisabeth Stadler, CEO of Vienna Insurance Group.

The results of the EIOPA stress test and charts on VIG's solvency are available
on the VIG website at https://www.vig.com/solvency

Further inquiry note:
Wiener Versicherung Gruppe
1010 Vienna, Schottenring 30

Wolfgang Haas 
Head of Group Communications & Marketing, Spokesperson of the Group
Phone: +43(0)50 390-21029
Fax: +43 (0)50 390 99-21029
E-Mail: wolfgang.haas@vig.com

Nina Higatzberger-Schwarz
Head of Investor Relations
Phone: +43 (0)50 390-21920
Fax: +43 (0)50 390 99-21920
E-Mail: nina.higatzberger@vig.com

end of announcement                         euro adhoc

issuer:       Vienna Insurance Group AG Wiener Versicherung Gruppe
              Schottenring 30
              A-1010 Wien
phone:        +43(0)50 390-22000
FAX:          +43(0)50 390 99-22000
mail:         investor.relations@vig.com 
WWW:          www.vig.com
ISIN:         AT0000908504
indexes:      WBI, VÖNIX, ATX
stockmarkets: Wien, Prague Stock Exchange
language:     English

EAX0007    2018-12-14/18:01

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