EANS-Adhoc: VIG Group adjusts goodwill for Bulgaria, Croatia and Georgia by a total of around EUR 120 million EAE

8/10, 2:31 PM (Source: euro adhoc)
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Profit before taxes before goodwill impairment continues to develop positively

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10.08.2020

- - Based on the ESMA recommendation of May 2020 and the macroeconomic
developments influenced by COVID-19, VIENNA INSURANCE GROUP AG Wiener
Versicherung Gruppe executed an event-related impairment test at Group level. In
view of the - currently not yet conclusively assessable - effects of the
pandemic on medium- and long-term economic developments, the Executive Board
decided to conduct scenario analyses for certain cash-generating unit groups
within the framework of the traditionally cautious valuation policy of VIG
Group. On the basis of this event-related goodwill review, goodwill impairments
of about EUR 120 million are carried out for Bulgaria, Croatia and Georgia,
which is particularly attributable to the significant increase in discount rates
due to COVID-19.

Profit before taxes before impairment shows a positive development in the first
half-year of 2020, which is amongst others due to overall reduced claims
expenditure, for example less weather-related claims. Due to the ongoing
uncertainties, it is not possible to provide an outlook for the financial year
2020 at this point in time. The Managing Board continues to anticipate dampening
effects on the full year results 2020 of VIG Group. For the first half of 2020,
the Managing Board expects a pre-tax profit including goodwill impairment of
around EUR 200 million.

The publication of the half-year results 2020 will take place as planned on 26
August 2020.

The dividend proposal of EUR 1.15 per share for the financial year 2019 to be
voted for at the Annual General Meeting on 25 September 2020 remains unchanged,
subject to substantial unforeseeable health and economic developments.

The following securities of VIG are admitted for trading on a regulated market:

ISSUE TITEL                ISIN         TRADING SEGMENT
Share                      AT0000908504 Vienna and Prague Stock Exchange,
                                        Official Market
VIG subordinated bond 2015 AT0000A1D5E1 Luxembourg Stock Exchange, Second
                                        Regulated Market
VIG subordinated bond 2013 AT0000A12GN0 Vienna Stock Exchange, Second Regulated
                                        Market


Further inquiry note:
VIENNA INSURANCE GROUP AG
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
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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:      VÖNIX, WBI, ATX
stockmarkets: Prague Stock Exchange, Wien
language:     English

EAX0001    2020-08-10/14:31

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