Vienna Insurance Group VIG.VI
What does Vienna Insurance Group do?
Vienna Insurance Group is an internationally active insurance group headquartered in Vienna. The company offers life, health, and property and casualty insurance, including motor, fire, liability, transport, and legal expenses insurance. The offering is complemented by reinsurance services. Customers are private individuals, tradespeople, and companies. The group is a subsidiary of a Viennese insurance association that acts as its core shareholder.
The group earns money from insurance premiums and from income on the investment of premium funds. Distribution runs through agents, brokers, banks, and direct sales. The focus is on Austria and on Central and Eastern Europe, where several brands are locally established. In terms of competition, the group benefits from its broad regional presence, its proximity to customers through local companies, and diversification across countries and lines of business. Competitors are other international insurers as well as national market leaders in the respective countries.
Score profile
Rank vs. Insurance - Diversified (9 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Vienna Insurance Group ranks below average in the group Insurance - Diversified (2.5/10). On growth, the company ranks in the middle in the group Insurance - Diversified (4.4/10). On valuation (higher = cheaper), the stock ranks among the best in the group Insurance - Diversified (9.0/10). On financial strength, Vienna Insurance Group ranks below average in the group Insurance - Diversified (2.8/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 9.4x | 11.0x | better than 94 % |
| Trailing P/E | 6.9x | 12.5x | better than 94 % |
| PEG ratio | 1.2x | 1.2x | better than 50 % |
| EV/EBITDA | -1.6x | 5.4x | better than 0 % |
| Price/sales | 0.7x | 1.5x | better than 94 % |
| Price/book | 1.3x | 1.7x | better than 81 % |
| Revenue growth | 9.2% | 11.2% | better than 39 % |
| Earnings growth | 16.1% | 16.1% | better than 50 % |
| Gross margin | 15.9% | 26.6% | better than 6 % |
| Operating margin | 10.4% | 13.7% | better than 39 % |
| Net margin | 6.3% | 11.8% | better than 28 % |
| Return on equity | 12.9% | 18.7% | better than 28 % |
| Debt/equity | 33.2% | 33.2% | better than 50 % |
| Current ratio | 1.8x | 1.8x | better than 56 % |
| Free cash flow yield | -9.4% | 5.3% | better than 17 % |
| Dividend yield | 2.3% | 2.8% | – |
| Payout ratio | 23.2% | 35.7% | – |
| Beta | 0.46 | 0.47 | – |
Valuation: what is Vienna Insurance Group worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Vienna Insurance Group a model range of 87.53 EUR to 93.17 EUR per share.
4 analysts, average rating “—”, average price target 71.12 EUR (−4.2%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Premium growth in property and casualty and life insurance depends on economic development, insurance penetration, and distribution strength in the core markets.
- The underwriting result is determined by claims experience, pricing discipline, and cost control at the local companies.
- Investment income depends on the interest rate environment and the quality of the investment portfolio.
Risks
- Natural disasters and severe weather events can sharply increase claims expenses in the region and weigh on earnings.
- Political, regulatory, and currency-related uncertainties in the markets of Central and Eastern Europe can affect business and profits.
- Capital market fluctuations and interest rate changes can weigh on the value of investments and on guarantee obligations in life insurance.
What to look for with Vienna Insurance Group
The combined ratio in property and casualty insurance shows whether the core business is profitable after claims and costs are deducted from premiums.