Vienna Insurance : Annual Financial Report 2025

About this update from Vienna Insurance Group Ag

Annual Financial Report 2025 Consolidated financial statements CONSOLIDATED FINANCIAL STATEMENTS 2025 Primary financial statements 136 Consolidated income statement 137 Consolidated statement of comprehensive income 138 Consolidated balance sheet 13tı Consolidated statement of change in equity 140 Consolidated cash flow statement 142 Notes 142 General information and principles of significant accounting policies 150 Segment reporting 156 Explanatory notes to the net assets, financial position and operating results 217 Additional disclosures 27tı Risk strategy and risk management 2tı7 Corporate Governance Report 313 Supervisory Board Report 317 Declaration by the Managing Board 318 Auditor's Report 324 Independent assurance report on the non-financial reporting Contents Group management report 5 GROUP MANAGEMENT REPORT 2025 6 General information 6 Structure and organisation 6 Segmentation and scope of consolidation 6 Retroactive adjustments 6 Business development and economic position 6 Economic environment 7 Legal environment tı Group business development and financial performance indicators 13 Branch offices 14 Business development and financial performance indicators by reportable segment 26 Consolidated non-financial report 28 General information 64 Environmental information tı1 Social information 111 Governance information 121 Annex 128 Other mandatory disclosures 128 Research and development 128 Holdings, purchase and sale of own shares 128 Internal control and risk management system 130 Capital, share, voting and control rights and associated agreements 130 Corporate governance 131 Outsourcing disclosures 131 Expected development and risks of the Group Significant risks and uncertainties Expected development - Outlook for 2026 Online annual report Additional videos and information about the 2025 financial year are available online at annual-report.vig/2025 Publications All VIG Holding publications Annual financial statements 347 ANNUAL FINANCIAL STATEMENTS IN ACCORDANCE WITH UGB 348 Annual Financial Statements 2025 348 Balance sheet 350 Income Statement 352 Notes to the financial statements for 2025 368 Proposed appropriation of profits 36tı Auditor's report Declatation by the Managing Board Supervisory Board report Service 37tı SERVICE INFORMATION 380 List of abbreviations 382 Notice - Address Management report 32tı MANAGEMENT REPORT TO THE ANNUAL FINANCIAL STATEMENTS IN ACCORDANCE WITH UGB 330 Company profile 331 Management report 2025 331 Economic environment 331 VIG Holding business development 335 Risk report 341 Internal control and risk management system in the accounting process 342 Disclosures in accordance with Section § 243a and Section 243 (3) (3) UGB 342 Disclosures on outsorcing in accordance with Section 156 (1) (1) in conjunction with Section 109 VAG 342 Outlook can be found at group.vig/reports Group management report GENERAL INFORMATION STRUCTURE AND ORGANISATION As part of its multi-brand strategy, VIG Insurance Group relies on regionally established brands and operates with more than one company and brand in most of its markets. The companies address different target groups through their individual market presence. Their product portfolios differ accordingly. This multi-brand strategy does not mean, however, that potential synergies remain unexploited. Structural efficiency and the cost-effective use of resources are examined regularly and developed further. Back offices that perform administrative tasks for more than one company are already being used successfully in many countries. In addition, as part of the new Group strategy evolve 28 with CO 3 (Collaboration, Cooperation, Communication), collaboration and the exchange of knowledge within the Group is being strengthened further. The aim is to systematically leverage synergies, create transparency and increase competitiveness in the long term through increased cooperation between the companies in a country. Mergers of insurance companies are considered if the synergies that can be achieved outweigh the benefits of a diversified market presence. To ensure uniform management, clearly defined country responsibilities also exist at Managing Board level. Furthermore, in addition to the CEO (Chief Executive Officer) and the CFRO (Chief Financial and Risk Officer), there is also a COO (Chief Operations Officer) and a CIO (Chief Innovation Officer) on the Managing Board. To improve readability, company names have been shortened throughout the entire report. The list of abbreviations under "Service information" contains a list of the full company names. In order to avoid duplicate information, reference will be made to appropriate information in the notes to the consolidated financial statements. Changes in significant balance sheet and income statement items are presented in both the segment reporting and the notes to the financial statements. Additional disclosures in the management report are intended to explain these data in more detail. SEGMENTATION AND SCOPE OF CONSOLIDATION The over 50 VIG insurance companies and pension funds operate in the following reportable segments: Austria, Czech Republic, Poland, Extended CEE, Special Markets and Group Functions. These six segments are explained in the segment reporting section of the Group management report. The segment Extended CEE includes the countries of Albania incl. Kosovo, the Baltic states, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North Macedonia, Romania, Serbia, Slovakia and Ukraine. The segment Special Markets consists of the four countries Germany, Georgia, Liechtenstein and Türkiye. Further information on the scope of consolidation and the method of consolidation can be found in Note "22. Affiliated companies and partici-pations" and Note "25.2. Business combinations". Details on the changes in scope of consolidation can be found in Note "21. Business combinations". RETROACTIVE ADJUSTMENTS The accounting policy used for the determination and accounting of deferred taxes was changed, which required an adjustment of the previous year's figures. For more information, please refer to the "Principles of significant accounting policies" section of the notes to the consolidated financial statements under "Change in accounting policies". BUSINESS DEVELOPMENT AND ECONOMIC POSITION ECONOMIC ENVIRONMENT After the significant impact of US tariff policy had to be overcome in the first and second quarters of 2025, the fourth quarter in particular was surprising in a positive way. On an annual basis, real GDP growth for the euro area was 1.5%. Spain again reported good growth figures, and Germany was able to break free from stagnation in the third quarter. After two recessionary years in Austria, a slow recovery continued, adding up to real GDP growth of 0.6% in 2025. Private consumption recovered in the fourth quarter and public consumption remained supportive. The export situation also eased in the final quarter. Stable and even moderately increasing consumer sentiment and investment brought real GDP growth for Central and Eastern Europe (CEE) to a regional average of 2.3% for the year. Poland and Croatia were at the upper end with projected GDP growth of 3.6% and 3.2%, respectively, while Hungary and Slovakia were at the other end with 0.4% and 0.8%, respectively. The euro area ended 2025 on an inflation rate of 2.1%. Driven by continuing high core inflation (service providers) and energy prices, inflation in Austria rose to 3.6% for the year as a whole (2024: 2.9%). At 4.1% (2024: 3.7%), inflation in CEE was also significantly above the previous year's level and the euro area average. Romania recorded the highest inflation rate at 7.3% and Slovenia the lowest at 2.4%. LEGAL ENVIRONMENT SOLVENCY II The directive amending the Solvency II legal framework was published in the Official Journal of the European Union on 8 January 2025 and entered into force on 29 January 2025. EU Member States are required to transpose the new Solvency II rules into national law following a two-year transposition period, with the rules applying from 30 January 2027. During the years 2025 and 2026, approximately 80 Level 2 and Level 3 legal instruments (in particular regulatory and implementing technical standards and guidelines) will be newly created or revised in connection with the revised Solvency II Directive. These instruments will become legally binding once they have been adopted by the European Commission and published in the Official Journal of the European Union. The Solvency II Directive has, among other things, adopted adjustments to the standard formula for the calculation of its Solvency Capital Requirement in order to better mitigate pro-cyclical effects. The purpose is to avoid unnecessary capital burdens by adapting assessment methodologies more closely to the real risks of the European insurance industry. Liquidity risk management plans are to be introduced to monitor liquidity risks in the future, with appropriate measures that are necessary to restore liquidity and ensure compliance with the law. RECOVERY AND RESOLUTION The directive establishing a framework for the recovery and resolution of (re-)insurance undertakings was published in the Official Journal of the European Union on 8 January 2025 and entered into force on 29 January 2025. EU Member States are required to transpose the new rules into national law following a two-year transposition period, with the rules applying from 30 January 2027. During the years 2025 and 2026, approximately 20 Level 2 and Level 3 legal instruments (in particular regulatory and implementing technical standards and guidelines) will be developed in relation to the Insurance Recovery and Resolution Directive. These instruments will become legally binding once they have been adopted by the European Commission and published in the Official Journal of the European Union. The purpose of this Directive is to prepare (re-)insurance undertakings for crisis situations and to enable an orderly exit from the market in the event of failure without recourse to public funds by providing the competent authorities with effective resolution tools and powers which allow for appropriate early intervention in the event of an insurer failing or likely to fail and thereby minimising negative effects on policy holders, financial markets, the wider economy and on budgets of the Member States. The Insurance Recovery and Resolution Directive requires (re-)insurance undertakings to draw up pre-emptive recovery plans before a breach of the Solvency Capital Requirement (SCR); at group level, corresponding group recovery plans must be submitted to the group supervisor. If a (re-)insurance group carries out critical functions in the public interest, the relevant group resolution authority shall draw up group resolution plans in which impediments to resolvability are addressed and removed. In the context of ongoing regulatory developments, the Insurance Recovery and Resolution Directive provides that the European Commission shall submit a report to the European Parliament and the Council by 29 January 2027 at the latest, after having consulted with EIOPA. The purpose of this report is to assess the appropriateness of minimum common standards for insurance guarantee schemes (IGS) within the European Union. SUSTAINABLE FINANCE A range of comprehensive European legislative initiatives have been introduced in recent years under the "European Green Deal". Against the background of the initiative to reduce red tape, some of these regulations were reviewed during the reporting period and partially adjusted. On 26 February 2026, the final EU directive of the Omnibus I simplification package in the field of sustainability was published in the Official Journal of the European Union. The package of measures presented by the European Commission in February 2025 aims to simplify and harmonise more closely sustainability-related regulatory requirements for companies. The aim of this initiative is to strengthen the competitiveness of European companies without jeopardising the overall sustainability objectives of the European Union. In terms of content, the focus is in particular on adjustments to the requirements for sustainability reporting and corporate due diligence obligations. The main focus is on the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). In addition, the package includes simplifications of the report formats and reporting templates within the framework of the EU Taxonomy. The European Sustainability Reporting Standards (ESRS), which are being adapted as part of the CSRD revision, are expected to be mandatory for the first time in the 2027 reporting year. The rules of the CSDDD will apply from mid-2029. The simplified reporting templates for the EU Taxonomy have already been used for the 2025 financial year. DIGITAL RESILIENCE The regulation of digital security in the financial sector remained a focus at the European level during the reporting period. Since 17 January 2025, the Digital Operational Resilience Act (DORA) has been applicable to European financial entities, requiring them, among other things, to take all required security precautions to mitigate cyber attacks and other risks in the area of information and communication technology (ICT risks). Essential details for the provisions in DORA are set at level 2. These level 2 measures were developed by the ESAs (EIOPA, EBA and ESMA) in the course of 2024 in a joint committee. They became legally binding upon their adoption by the European Commission and subsequent publication in the Official Journal of the European Union. INTERNATIONAL SANCTIONS After significant changes to the dynamics, complexity and extent of the international sanctions environment as a result of Russia's attack on Ukraine in 2022, multiple countries and organisations, above all the European Union, the United States of America and the United Kingdom of Great Britain and Northern Ireland, imposed further comprehensive sanctions against Russia and Belarus or expanded already existing sanctions in the reporting year. The restrictions rang from (investment) restrictions for specific economic sectors to embargoes on goods, complete trade embargoes for specific regions to the significant expansion of the number of persons and companies that were placed on sanctions lists and with whom business relationships are therefore prohibited. As in the previous year, the European Union, the United States of America and the United Kingdom of Great Britain and Northern Ireland again stepped up their efforts to prevent sanctions being circumvented. In this context, in 2025, numerous individuals, companies and vessels domiciled or registered outside Russia and Belarus were sanctioned. In some cases, this also includes persons who are nationals of an EU country or companies with their registered office in the EU. Iran was also the focus of sanctions again in 2025. Against the background of the failed nuclear negotiations, the "snapback mechanism" provided for by the Joint Comprehensive Plan of Action (JCPOA) was triggered, which led to the reactivation of the comprehensive sanctions of the United Nations Security Council against Iran, which had been suspended since 2015. This meant further sanctions for persons or companies in Iran or related to Iran. In Austria, the Sanctions Act 2024 introduced new provisions relating to sanctions, which, among other things, require insurance companies to establish strategies, controls and procedures to ensure compliance with financial sanctions. The Sanctions Act 2024 came into force for insurance companies on 1 January 2026. Furthermore, the act transferred the powers for the monitoring and enforcement of financial sanctions in the financial sector from the National Bank of Austria to the FMA as of 1 January 2026. GROUP BUSINESS DEVELOPMENT AND FINANCIAL PERFORMANCE INDICATORS FINANCIAL PERFORMANCE INDICATORS The key financial performance indicators that form the basis for assessing the business development are presented below. All disclosures are based on IFRS figures. Due to a lack of data availability, market data relates to the gross written premiums in the respective period. Gross written premiums Further details on the gross written premiums are included in Note "1.7. Risk of concentration". In 2025, VIG Insurance Group achieved gross written premiums of EUR 16,313.7 million and thus a plus of 7.1% year-on-year (2024: EUR 15,226.3 million). All reportable segments show positive development. Gross written premiums in the segments Extended CEE (+9.2%), Austria (+4.6%), Czech Republic (+8.2%) and Poland (+10.7%) performed particularly well. Of the countries in the Extended CEE segment, Romania (+9.3%), Hungary (+8.4%), Slovakia (+7.4%) and the Baltic states (+7.8%) in particular recorded dynamic premium development. In the segment Special Markets, Türkiye in particular recorded strong premium growth (+5.8%). Insurance service revenue - issued business Additional details on the insurance service revenue issued business, hereinafter referred as "Insurance service revenue", are included in Note "1.3. Insurance contracts issued". The insurance service revenue increased by 8.7% in 2025 to EUR 13,196.0 million (2024: EUR 12,138.5 million). With the exception of the segment Group Functions, all reportable segments recorded growth. Property and casualty insurance (accounted for using the Premium Allocation Approach) in the Extended CEE and Special Markets segments contributed particularly strongly to the increase compared to the previous year. Insurance service expenses - issued business Further details on the insurance service expenses - issued business, hereinafter referred as "Insurance service expenses", are included in Note "1.3. Insurance contracts issued". In 2025 the insurance service expenses amounted to EUR 11,451.3 million (2024: EUR 10,656.8 million), which is an increase of 7.5% year-on-year. This is mainly due to the significant increase in business volume. The increase in insurance services in the commercial business was offset by lower weather-related claims. Insurance service result - reinsurance held Further details on the insurance service result - reinsurance held can be found in Note "1.4. Reinsurance contracts held". The insurance service result - reinsurance held resulted in 2025 in a loss of EUR 226.3 million (2024: loss of EUR 295.3 million). The improved reinsurance result is primarily due to major losses that had significant reinsurance coverage, despite a significant decline in claims arising from natural catastrophes. Total capital investment result Details on the investment result can be found in Note "9. Notes to the consolidated income statement". The total capital investment result consists of investment result, income and expenses from investment property, insurance finance result and result from associated consolidated companies. The two significant positions are the investment result in which the results of the assets evaluated according to IFRS 9 are shown and the insurance finance result, which primarily shows the interest effect of the underwriting liabilities and assets or the total financing effect of the Variable Fee Approach. The total capital investment result increased by 12.3% in 2025 to EUR 489.4 million (2024: EUR 435.6 million). The significant increase compared to the previous year is primarily due to higher interest revenues from the bond portfolio in Türkiye. Result before taxes The consolidated result before taxes increased by 31.7% in 2025 to EUR 1,161.3 million (2024: EUR 881.8 million). The increase is mainly due to the significantly higher result in the reportable segments Austria, Czech Republic, Extended CEE and Poland. The result before taxes, adjusted for adjustments of EUR 96.3 million (2024: EUR 116.4 million), resulted in a business operating result of EUR 1,257.7 million in 2025, which was 26.0% above the previous year's figure (2024: EUR 998.2 million). The adjustments taken into account in the current reporting year mainly resulted from the impairment of goodwill in Hungary in the amount of EUR 72.6 million. ABBREVIATED CONSOLIDATED INCOME STATEMENT 2025 2024 adjusted ∆ in % ∆ absolute in EUR million Insurance service result 1,518.4 1,186.4 28.0% 332.1 Insurance service revenue - issued business 13,196.0 12,138.5 8.7% 1,057.5 Insurance service expenses - issued business -11,451.3 -10,656.8 7.5% -794.5 Insurance service result - reinsurance held -226.3 -295.3 -23.4% 69.0 Total capital investment result 489.4 435.6 12.3% 53.8 Investment result 2,398.0 1,884.0 27.3% 514.0 Income and expenses from investment property 46.8 60.6 -22.7% -13.8 Insurance finance result -1,982.6 -1,536.0 29.1% -446.5 Result from associates (equity-method) 27.1 27.0 0.4% 0.1 Finance result -82.5 -78.8 4.7% -3.7 Other income and expenses -667.6 -545.0 22.5% -122.7 Business operating result 1,257.7 998.2 26.0% 259.4 Adjustments * -96.3 -116.4 -17.2% 20.1 Result before taxes 1,161.3 881.8 31.7% 279.5 Taxes -303.0 -234.3 29.3% -68.7 Result for the period 858.3 647.6 32.5% 210.8 Non-controlling interests in net result for the period 23.5 21.2 10.4% 2.2 Result for the period less non-controlling interests 834.9 626.3 33.3% 208.6 Earnings per share (in EUR) 6.46 4.83 33.7% 1.6 *The value includes impairments of goodwill as well as (reversals of) impairments of intangible assets. Total capital investment portfolio Further details on financial instruments can be found in Note "2. Financial assets and liabilities as well as other balance sheet items evaluated according to IFRS 9". The total capital investment portfolio as of the reporting date 31 December 2025 amounted to EUR 47,151.6 million (31 December 2024: EUR 44,568.3 million). This corresponds to an increase of 5.8% year-on-year. The development is mainly due to the increased market values of the investments measured at fair value and to the high level of new investments. The financial instruments for unit- and index-linked life insurance increased by 12.0% from EUR 8,558.4 million in 2024 to EUR 9,583.2 million in 2025. This development is also due to the positive market value development. The "risk-bearing portfolio" includes cash and cash equivalents, financial assets, investments in associates, investment SPLIT OF THE CAPITAL INVESTMENTS HELD AT OWN RISK 2025 property as well as owner-occupied property. As of 31 December 2025 the portfolio amounted to EUR 38,040.2 million (31 December 2024: EUR 36,476.8 million) and corresponds to the total capital investment portfolio minus the financial instruments for unit- and index-linked life insurance plus owner-occupied property. As owner-occupied property a value of EUR 471.8 million was reported as of 31 December 2025 (31 December 2024: EUR 466.8 million). Bonds 74.6% (73.8%) Values for 2024 in parentheses Property 9.6% (9.8%) Other investments 9.0% (10.1%) Shares 3.4% (3.2%) Loans 2.0% (1.8%) Affiliated companies 1.4% (1.3%) Consolidated shareholders' equity Further details on the consolidated shareholders' equity can be found in Note "10. Consolidated shareholders' equity". The consolidated shareholders' equity increased in 2025 by 11.8% to EUR 7,331.4 million (31 December 2024 adjusted: EUR 6,558.9 million). This development is mainly due to the retained profits of the Group. In 2025, the equity attributable to shareholders amounted to EUR 7,170.9 million (2024 adjusted: EUR 6,411.8 million). Insurance contracts liabilities issued Further details on the insurance contracts liabilities issued are included in Note "1.3. Insurance contracts issued". The insurance contracts liabilities issued amounted to EUR 41,496.9 million as of the balance sheet date 31 December 2025 (31 December 2024: EUR 39,598.1 million). This corresponds to an increase of 4.8% year-on-year. This development is mainly due to the increased business volume of product lines accounted in PAA - in particular in property and casualty insurance -as well as to the positive market development of the underlying assets in the Variable Fee Approach - especially in the longterm life and health insurance lines of business. Cash flow Cash flow from operating activities improved in 2025 to EUR 842.3 million (2024: EUR 346.0 million). This is mainly due to the increase in business volume and the much lower claims payments related to natural catastrophes. In 2025 cash flow from investment activities was EUR -943.2 million (2024: EUR 257.7 million). The decline is mainly due to the high level of new investments in the bond portfolio as a result of the increase in business volume in life insurance. In 2025 the cash flow from financing activities was EUR -262.0 million (2024: EUR -409.6 million). The increase in cash flow from financing activities is primarily due to the issue of a Tier 2 sustainability bond with a volume of EUR 300 million. Bonds in the amount of EUR 145.2 million were also repurchased. At the end of 2025 cash and cash equivalents of the Group were at EUR 1,371.0 million (2024: EUR 1,748.1 million). In 2025, the received interest and dividends in total amounted to EUR 1,056.1 million (2024: EUR 1,018.1 million). Earnings per share Earnings per share is a key figure that compares the result for the period (less non-controlling interests) to the average number of shares outstanding. The number of shares compared to the previous year remained unchanged. In 2025 earnings per share were EUR 6.46 (2024 adjusted: EUR 4.83). The increase compared to the previous year is 33.7%. This development reflects the positive business development. Operating Return on Equity (Operating RoE) Operating return on equity measures the profitability of the insurance group. This ratio is calculated by dividing the business operating result by the average shareholders' equity less unrealised gains and losses. As of 31 December 2025, Vienna Insurance Group achieved an operating return on equity of 18.7% (31 December 2024 adjusted: 16.2 %). Operating Return on Equity 31/12/2025 31/12/2024 adjusted 31/12/2023 adjusted in EUR million Shareholdersʾ equity 7,331.4 6,558.9 6,099.3 Unrealised gains and losses recognised in equity* -255.9 -195.7 -159.3 Adjusted shareholders' equity 7,075.4 6,363.2 5,940.0 Average adjusted shareholders' equity 6,719.3 6,151.6 Business operating result 1,257.7 998.2 Operating RoE in % 18.7 16.2 *adjusted by non-controlling interests Net combined ratio The calculation of the net combined ratio is the insurance service expenses for issued business less insurance service expenses from reinsurance contracts held divided by the insurance service revenue from issued business less insurance service revenue from reinsurance contracts held in property and casualty insurance. The net combined ratio in 2025 was 90.1% (2024: 93.4%). The significant improvement in the combined ratio compared to the previous year is mainly stemming from the reportable segments Austria, Czech Republic, Poland and Special Markets, and is supported by much lower weather-related claims and natural catastrophes. Net combined ratio 2025 2024 in EUR million Insurance service revenue net 9,288.8 8,494.8 Attributable costs net -2,819.8 -2,601.4 Insurance service expenses excl. attributable costs net -5,545.0 -5,330.2 Insurance service expenses net -8,364.8 -7,931.6 Net claims ratio in % 59.7 62.7 Net cost ratio in % 30.4 30.6 Net combined ratio in % 90.1 93.4 Contractual service margin (CSM) The contractual service margin (CSM) includes the unrealised profits originally priced into the insurance contract, which is reported as a separate component of the technical provisions. As of 31 December 2025 the CSM amounted to EUR 6,235.9 million (31 December 2024: EUR 5,523.2 million) and mainly stems from long-term life and health insurance. This corresponds to an increase of 12.9% year-on-year. The development is mainly the result of changes in the Variable Fee Approach due to market-related effects. BRANCH OFFICES VIG Insurance Group has branch offices in Germany, France, Italy (2024 closed in accordance with regulatory law), Kosovo, Slovenia, the Baltic countries Estonia, Latvia and Lithuania and the North European countries Sweden, Norway and Denmark. Information on branches and any significant changes compared to the previous year are discussed in more detail for the respective reportable segment in the section below, if applicable. A list of the addresses of the insurance companies and pension funds and their branch offices is also provided in the "Service information" section. BUSINESS DEVELOPMENT AND FINANCIAL PERFORMANCE INDICATORS BY REPORTABLE SEGMENT The reportable segments Austria, Czech Republic, Poland, Extended CEE, Special Markets and Group Functions are discussed below. The discussion focuses on the presentation of these reportable segments and descriptions of the market position held by VIG Group in the respective countries. A detailed presentation of the consolidated income statement by reportable segment can be found in the notes to the consolidated financial statements in the "Segment reporting" section. INSURANCE SERVICE REVENUE RESULT BEFORE TAXES 2025 2024 ∆ in % ∆ absolute 2025 2024 ∆ in % ∆ absolute in EUR million Austria 3,747.7 3,543.2 5.8% 204.5 in EUR million Austria 434.5 336.1 29.3% 98.4 Czech Republic 2,278.7 2,078.2 9.6% 200.4 Czech Republic 285.6 211.1 35.3% 74.5 Poland 1,471.8 1,373.3 7.2% 98.5 Poland 105.7 65.1 62.5% 40.6 Extended CEE 1 3,908.0 3,599.5 8.6% 308.5 Extended CEE 1 236.4 159.7 48.0% 76.7 Special Markets 2 1,170.1 924.2 26.6% 245.9 Special Markets 2 126.9 88.6 43.3% 38.4 Group Functions 3 1,766.5 1,780.9 -0.8% -14.4 Group Functions 3 -27.9 21.3 n/a -49.1 Consolidation -1,146.8 -1,160.8 -1.2% 14.0 Consolidation 0.0 0.0 n/a 0.0 Total 13,196.0 12,138.5 8.7% 1,057.5 Total 1,161.3 881.8 31.7% 279.5 1 Extended CEE: Albania incl. Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine 2 Special Markets: Georgia, Germany, Liechtenstein, Türkiye 3 Group functions: VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers, one asset management company and intermediate holding companies 1 Extended CEE: Albania incl. Kosovo, Baltics, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North Macedonia, Romania, Serbia, Slovakia, Ukraine 2 Special Markets: Georgia, Germany, Liechtenstein, Türkiye 3 Group functions: VIG Holding, VIG Re, Wiener Re, VIG Fund, corporate IT service providers, one asset management company and intermediate holding companies AUSTRIA AUSTRIAN INSURANCE MARKET In Austria the top 5 insurance groups in the country in the 1 st to 3 rd quarter 2025 generated approximately 71% of the gross written premiums. The two largest insurance groups contributed around 44%. MARKET DEVELOPMENT 1 ST TO 3 RD QUARTER 2025 COMPARED TO THE PREVIOUS YEAR 9M 2025 figures MARKET SHARE OF THE LARGEST INSURANCE GROUPS Per cent of total premium volume 41.3% EUR 10.8 bn EUR 2.5 EUR 3.9 bn +5.0% bn +8.5% +1.2% +4.6% EUR 17.3 bn Other participants 22.9% VIG ranked 1 st Total Property and casualty Health Life 15.2% Ranked 3 rd 20.6% Ranked 2 nd Source: Austrian Insurance Association Source: Austrian Insurance Association; as of 9M 2025 In the 1 st to 3 rd quarter of 2025, the Austrian insurance industry generated a total of EUR 17.3 billion gross written premiums. Compared to the previous year this corresponds to an increase of approximately 4.6%, which is primarily attributable to the positive development of health insurance as well as of property and casualty insurance. In the 1 st to 3 rd quarter 2025 an increase of 5.0% in the property and casualty insurance was recorded year-on-year. The motor vehicle insurance contributed with an increase in the gross written premiums of 6.1%, which is especially attributable to the increased price levels. The premiums in the motor third party liability insurance grew by 4.7%, in the motor own damage insurance (Casco) by 8.3%. The premiums in the non-motor lines of business grew by 4.5% in the 1 st to 3 rd quarter 2025. In life insurance a moderate increase in gross written premiums of 1.2% was recorded in the 1 st to 3 rd quarter 2025. While the income from regular-premium life insurance declined slightly by 1.8% year-on-year, a double-digit gain of 22.5% was recorded in single-premium life insurance. Unit- and index-linked life insurance also recorded an increase of 6.1% year-on-year. In income protection insurance, which is also classified as life insurance, premium income fell significantly with a decrease of 8.4%. Endowment insurance, which constitutes the largest share of life insurance, also recorded a decline of 6.3%. The gross written premiums in the health insurance developed positively with an increase of 8.5% year-on-year. According to internal calculations based on data from the International Monetary Fund (IMF) and the Austrian Insurance Association (VVO), in 2024 an average of EUR 2,322 per capita was spent for insurance in Austria. Of which the non-life sector accounted for EUR 1,755 and life insurance accounted for EUR 568. Vienna Insurance Group is represented by the two insurance companies Wiener Städtische and Donau Versicherung in Austria. s Versicherung, which was merged with Wiener Städtische in 2018, continues to exist as a brand for bancassurance customers. Wiener Städtische also operates via a branch in Slovenia. The branch in Italy was closed in 2024 for regulatory reasons. VIG Holding operates out of Austria as a reinsurer of the Group and an insurer in the cross-border corporate business. In addition, since 2019 it operates via branches in the Northern European countries of Sweden, Norway and Denmark in the traditional industrial insurance business. VIG Holding is assigned to the segment Group Functions. The VIG insurance companies are the leading insurance group in Austria with a market share of 22.9% in the 1 st to 3 rd quarter 2025. In property and casualty insurance and in life insurance it holds first market rankings, in the health insurance business it takes third place. FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE SEGMENT AUSTRIA Insurance service revenue The insurance service revenue in the year 2025 amounted to EUR 3,747.7 million (2024: EUR 3,543.2 million). This corresponds to an increase of 5.8%. This is due in particular to the positive development in non-life insurance (accounted for using the Premium Allocation Approach) and health insurance (accounted for using the Variable Fee Approach). INSURANCE SERVICE REVENUE BY LINE OF BUSINESS Result before taxes The result before taxes in the segment Austria amounted to EUR 434.5 million in 2025 (2024: EUR 336.1 million). This corresponds to an increase of 29.3%. This positive development is mainly due to the improved combined ratio. Net combined ratio The net combined ratio in 2025 was 90.3% (2024: 92.5%). The improvement is mainly due to a more favourable claims development as a result of lower weather-related claims (previous year: storm "Boris"). CZECH REPUBLIC CZECH INSURANCE MARKET In the 1 st to 3 rd quarter of 2025 the insurance market in the Czech Republic was dominated by the top 5 insurance groups, which together held a share of approximately 84% of the total gross written premiums. The two largest insurance groups contributed around 56%. MARKET DEVELOPMENT 1 ST TO 3 RD QUARTER 2025 COMPARED TO THE PREVIOUS YEAR 9M 2025 figures MARKET SHARE OF THE LARGEST INSURANCE GROUPS Per cent of total premium volume 32.9% CZK 149.9 bn +7.2% CZK 114.6 bn +8.0% CZK 35.2 bn +4.7% Other participants 11.6% Ranked 3 rd 32.2% VIG ranked 1 st 23.3% Ranked 2 nd Total Non-life Life Source: Czech Insurance Association Source: Czech Insurance Association; as of 9M 2025 According to the market share analysis of the Czech insurance association ČAP, the Czech insurance market recorded gross written premiums in the amount of CZK 149.9 billion in the 1 st to 3 rd quarter of 2025 and thus an increase of 7.2% year-on-year. Both life insurance (+4.7%) and non-life insurance (+8.0%) contributed to this growth. In the motor lines of business the motor own damage insurance had an increase of 7.6% year-on-year. The motor third party liability insurance also developed positively with an increase of 7.7%. Both lines of business benefited from the price development in 2025. The number of newly insured vehicles increased by 5.6% in motor third party liability insurance and declined by 3.8% in motor own damage insurance. In non-motor insurance there was an increase of 9.3% in the 1 st to 3 rd quarter 2025 partly influenced by the double-digit growth rate in the property insurance. The growth in life insurance is mainly due to the good performance of single-premium life insurance, which recorded an increase of 11.5%. Private health insurance, which is also classified as life insurance, recorded an increase of 9.8%. Life insurance with profit participation achieved growth of 8.6%. According to internal calculations based on the data of the International Monetary Fund (IMF) and the Czech Insurance Association, the Czech population spent an average of EUR 764 per capita for insurance premiums in 2024. This amount was divided into EUR 554 for non-life insurance and EUR 210 for life insurance. Vienna Insurance Group is represented by two companies in the Czech Republic, Kooperativa and ČPP. With a market share of 32.2%, it was the largest insurance group in the Czech Republic in the 1 st to 3 rd quarter 2025. It was in first place in the market for both life insurance and non-life insurance. The Group's own reinsurance VIG Re, which has its headquarters in Prague, is assigned to the segment Group Functions. FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE SEGMENT CZECH REPUBLIC Insurance service revenue The insurance service revenue was EUR 2,278.7 million in 2025 (2024: EUR 2,078.2 million). This corresponds to an increase of 9.6% year-on-year. The basis for this development is the positive performance in motor insurance, other property and casualty insurance, and life insurance. INSURANCE SERVICE REVENUE BY LINE OF BUSINESS Result before taxes The result before taxes in the segment Czech Republic in 2025 amounted to EUR 285.6 million (2024: EUR 211.1 million). This corresponds to an increase of 35.3% year-on-year. This is primarily due to the improvement in the net combined ratio. Net combined ratio The net combined ratio in 2025 was 84.7% (2024: 94.8%). It improved as a result of lower weather-related claims (previous year: storm "Boris"), a positive development in the motor sector and increased profitability in household insurance. POLAND POLISH INSURANCE MARKET The five largest insurance groups in the country wrote approximately 79% of the gross written premiums in the first three quarters of 2025. The three largest insurance groups contributed approximately 63%. MARKET DEVELOPMENT 1 ST TO 3 RD QUARTER 2025 COMPARED TO THE PREVIOUS YEAR 9M 2025 figures MARKET SHARE OF THE LARGEST INSURANCE GROUPS Per cent of total premium volume 28.1% Other participants PLN 66.0 bn +4.3% PLN 47.6 bn +4.6% PLN 18.3 bn +3.5% 9.1% VIG ranked 4 th 34.0% Ranked 1 st Total Non-life Life 12.0% Ranked 3 rd 16.8% Ranked 2 nd Source: Financial Market Authority Poland; as of 9M 2025 Source: Financial Market Authority Poland In the 1 st to 3 rd quarter 2025 the Polish insurance market generated PLN 66.0 billion and thus an increase of 4.3% year-on-year. The increase is attributable to the good development of both the non-life insurance (+4.6%) and also life insurance (+3.5%). The motor insurance recorded growth in the 1 st to 3 rd quarter 2025: motor third party liability insurance increased by 8.8% compared to the same period in the previous year partly due in part to the increase in average premiums (+4.0%). The premiums in motor own damage insurance (Casco) increased by 5.2%, which can be partly attributed to the increased number of contracts (+5.4%). The non-motor lines of business grew moderately by 1.8%, with legal expenses insurance (+16.2%) and assistance (+15.1%) recording double-digit increases. Following the significant increase over the past two years, premium income from health insurance products in non-life insurance declined slightly by 1.1% compared to the same period in the previous year. Life insurance recorded an increase of 3.5% year-on-year in the 1 st to 3 rd quarter 2025. This is mainly due to the positive development of life insurance with regular premiums, which increased by 6.5% in the first nine months of 2025 compared to the same period in the previous year. In contrast, single-premium life insurance recorded a decline of 16.0% in the 1 st to 3 rd quarter 2025. The average insurance spending in Poland amounted to EUR 543 per capita in 2024 according to the calculations of the data of the International Monetary Fund (IMF) and Polish financial market authorities. Of which EUR 394 was for non-life insurance and EUR 149 for life insurance. Following the restructuring of its market presence in 2024, VIG Insurance Group is represented on the Polish market by Compensa Non-Life, the digital insurer Beesafe, InterRisk, the life insurer Vienna Life and the pension fund Vienna PTE. Since 2019, InterRisk has held a stake in the mutual insurance association TUW "TUW". Vienna Insurance Group ranks fourth in the overall market in Poland with a share of 9.1% in the first nine months of 2025. In both the non-life and life segments, it is also ranked fourth among the top insurers. FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE SEGMENT POLAND Insurance service revenue The insurance service revenue in 2025 amounted to EUR 1,471.8 million (2024: EUR 1,373.3 million). Compared to the same period in the previous year, this corresponds to an increase of 7.2%. The increase is primarily due to the positive development of other property and casualty insurance and life insurance. INSURANCE SERVICE REVENUE BY LINE OF BUSINESS Result before taxes In 2025, the result before taxes increased by 62.5% to EUR 105.7 million (2024: EUR 65.1 million). The significant increase compared to the previous year is mainly due to the improvement in the combined ratio. The result before taxes, adjusted for adjustments of EUR 1.4 million (2024: EUR 0.1 million), resulted in a business operating result of EUR 107.1 million in the segment Poland in 2025 (2024: EUR 65.1 million). The adjustments taken into account resulted from the impairment of customer bases in the amount of EUR 1.4 million. Net combined ratio The net combined ratio in 2025 was 91.8% (2024: 95.6%). The improvement in the net combined ratio is due to the positive business development in motor third party liability insurance and other property and casualty insurance, in particular as a result of higher average premiums in household insurance, as well as lower weather-related claims (previous year: storm "Boris"). EXTENDED CEE The segment Extended CEE includes the countries of Albania incl. Kosovo, Baltic states, Bosnia-Herzegovina, Bulgaria, Croatia, Hungary, Moldova, North Macedonia, Romania, Serbia, Slovakia and Ukraine. Albania incl. Kosovo VIG Insurance Group operates in the Albanian insurance market with the two non-life insurers Sigma and Intersig, as well as the life insurer Vienna Life, which was founded at the end of December 2024. The three companies ranked third in the market with a market share of 20.3% in the first nine months of 2025. Via a branch Sigma is also represented in Kosovo where it ranked sixth with a market share of 8.7% in the 1 st to 3 rd quarter of 2025. Vienna Life is not included in the scope of consolidation in 2025. Baltic states VIG insurance companies are represented in all three Baltic states. Life insurance company Compensa Life has its headquarters in Estonia and is also represented in Latvia and Lithuania via branch offices. Non-life insurance company BTA Baltic operates in Latvia and is active in Estonia and Lithuania with branches. The non-life insurance company Compensa Non-Life operates in Lithuania. It maintains branches in Latvia and Estonia. VIG insurance companies are the market leader in the Baltic states with a market share of 26.7% in the 1 st to 3 rd quarter 2025. They are ranked first in both non-life and life insurance. Bosnia-Herzegovina VIG Insurance Group is represented by Wiener Osiguranje with headquarters in Banja Luka and by Vienna osiguranje with headquarters in Sarajevo. The VIG insurance companies were in third place overall based on a market share of 8.7% according to the data of the 1 st to 3 rd quarter 2025. Bulgaria On the Bulgarian insurance market VIG is represented by Bulstrad Life and Bulstrad Non-Life. Together they held a market share of 14.0% in the 1 st to 3 rd quarter 2025. Thus, VIG insurance companies were in first place in Bulgaria. In the non-life insurance sector they ranked third in the market and in life insurance they are in first place. In addition, the PAC Doverie pension fund is part of VIG Insurance Group, and has a 24.6% market share in Bulgaria based on assets under management. Croatia In Croatia the VIG insurance company Wiener Osiguranje is active. A market share of 8.1% in the 1 st to 3 rd quarter 2025 puts it in fourth place on the Croatian insurance market. It is in fifth place in the non-life insurance sector and ranks first in the life insurance sector. Moldova The VIG insurance company Donaris operates in Moldova. With a market share of 13.0% in the 1 st to 3 rd quarter 2025 it is in third place on the market. In the non-life insurance sector, it is also in third place. In August 2025, VIG acquired 80% of the shares in the non-life insurance company Moldasig. Moldasig ranked fifth in the overall market in the 3 rd quarter of 2025 with a market share of 12.7%. The approval of the transaction by the competition authority is expected in the first half of 2026, which is why the company has not yet been included in the scope of consolidation in the 2025 financial year. Once the transaction has been successfully completed, VIG will become the market leader in Moldova. North Macedonia VIG is represented by one non-life and one life insurance company in North Macedonia, Makedonija Osiguruvanje and Winner Life, respectively. The two VIG insurance companies together held a market share of 16.0% in the 1 st to 3 rd quarter 2025. This makes the VIG companies number two among the leading insurance groups in North Macedonia. VIG is also in second place in the non-life sector and ranks third in the life sector. Romania There are three VIG insurance companies operating in the Romanian insurance market, the non-life insurer Omniasig, the composite insurer Asirom and the life insurer BCR Life. In addition, VIG is represented on the Romanian market with the pension fund Carpathia Pensii. VIG is the market leader in the Romanian insurance market, with a market share of 23.3% in the 1 st to 3 rd quarter 2025. In non-life insurance and life insurance, it ranks second. Serbia In Serbia, VIG Insurance Group is active with the Wiener Städtische Osiguranje. With a market share of 10.3% it occupied fourth place in the 1 st to 3 rd quarter 2025. In the non-life insurance sector it is also in fourth place, in the life insurance sector it ranks third. Reinsurance company Wiener Re, which is a 100% reinsurance subsidiary of VIG Re and is headquartered in Belgrade, is part of the Group Functions segment. Slovafiia Two VIG insurance companies, Kooperativa and Komunálna, are represented in the Slovakian insurance market. With a market share of 27.4% in the 1 st to 3 rd quarter 2025 they are in first place as the largest insurance group in Slovakia. In non-life insurance, they are in second place. In life insurance, they are ranked first. In addition, the pension company Kooperativa Pension Fund is part of VIG Insurance Group. Ufiraine The VIG non-life insurers Kniazha and USG as well as the life insurer Kniazha Life are active in Ukraine. With a share of 11.2% in the 1 st to 3 rd quarter 2025 the VIG insurance companies are in second place in the overall market. In the non-life sector, Vienna Insurance Group also ranks second in Ukraine. Hungary In Hungary, Vienna Insurance Group operates with Union Biztosító and Alfa Biztosító. According to the data published by the Hungarian Association MABISZ from the 1 st to 3 rd quarter 2025, the VIG insurance companies are in first place in the market with a market share of 17.8%. They are in first place both in non-life and life insurance. In addition, the pension fund Alfa VIG Pension Fund is part of VIG Insurance Group. VIG Asset Management, which is based in Budapest, is assigned to the Group Functions segment. FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE SEGMENT EXTENDED CEE Insurance service revenue The insurance service revenue in 2025 amounted to EUR 3,908.0 million and was thus 8.6% above the previous year's figure (2024: EUR 3,599.5 million). The increase is mainly due to the good development in Romania, Slovakia, the Baltic states, Bulgaria and Ukraine. In particular, motor insurance, other property and casualty insurance and health insurance achieved good growth. INSURANCE SERVICE REVENUE BY LINE OF BUSINESS Result before taxes The result before taxes in the segment Extended CEE in 2025 was EUR 236.4 million (2024: EUR 159.7 million). This corresponds to an increase of 48.0%. The significant increase compared to the previous year is primarily due to the increase in business volume in conjunction with an improvement in the insurance service result and lower impairments in Hungary. The result before taxes, adjusted for adjustments of EUR 82.0 million (2024: EUR 116.3 million), resulted in a business operating result of EUR 318.4 million in the segment Extended CEE in 2025 (2024: EUR 276.0 million). The adjustments taken into account mainly resulted from Hungary and related to the impairment of goodwill (EUR 72.6 million), customer bases (EUR 6.4 million) and software (EUR 3.3 million). In the previous year, these adjustments were mainly due to the impairment of goodwill. Net combined ratio In 2025, the net combined ratio in the Extended CEE segment was 91.3% (2024: 93.9%). The improvement is primarily due to a better cost ratio. SPECIAL MARKETS The segment Special Markets includes the countries of Germany, Georgia, Liechtenstein and Türkiye. Germany VIG insurance companies InterRisk Non-Life and InterRisk Life operate in Germany. The InterRisk companies distribute exclusively through around 10,000 independent sales partners. InterRisk Non-Life specialises in accident and liability insurance and selected property insurance products. InterRisk Life focuses on retirement provision and occupational disability solutions, as well as protection for surviving dependents. The VIG companies continue to be successful in the German market as profitable niche players. In November 2025, VIG secured 98.81% of the shares in Nürnberger Beteiligungs-AG. The closing is expected to take place in the second half of 2026. The Group internal reinsurance company VIG Re has also been represented by a branch in Germany since 2017. It is assigned to the segment Group Functions. Georgia VIG Insurance Group is represented in Georgia by the companies GPIH and IRAO. With a market share of 24.0% the companies are the second-largest group on the Georgian insurance market in the 1 st to 3 rd quarter 2025. In the non-life sector, they also rank second. In life insurance, they are in third place. Liechtenstein VIG is represented in Liechtenstein by the Group company Vienna-Life. Following a revision of its product range in 2024, Vienna-Life is positioning itself as an ambitious provider of asset- and succession-oriented life insurance solutions in Germany with the unit-linked life insurance product "Private Wealth Police". With a focus on long-term asset planning, asset protection and legal stability, Vienna-Life takes advantage of the benefits of Liechtenstein as a location to offer tailored solutions for retail customers. Türfiiye In Türkiye, VIG Insurance Group operates with the non-life insurer Ray Sigorta and the life insurance company Viennalife. With a market share of 5.5% the VIG insurance companies reached fifth place on the Turkish market. They rank eighth in non-life insurance and third in life insurance. FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE SEGMENT SPECIAL MARKETS Insurance service revenue Insurance service revenue in the segment Special Markets rose from EUR 924.2 million in 2024 to EUR 1,170.1 million in 2025. This corresponds to an increase of 26.6%. This development is mainly due to the dynamic business development in Türkiye, in particular due to a higher premium volume, especially in motor insurance and life insurance. INSURANCE SERVICE REVENUE BY LINE OF BUSINESS Result before taxes In 2025 the segment Special Markets increased its result before taxes by 43.3% to EUR 126.9 million (2024: EUR 88.6 million). This significant increase is primarily due to the strong business development in Türkiye. The result before taxes, adjusted for adjustments of EUR 7.6 million (2024: EUR 0.0 million), resulted in a business operating result of EUR 134.5 million in the segment Special Markets in 2025 (2024: EUR 88.6 million). The entire adjustment is due to an impairment of software in Germany. Net combined ratio The net combined ratio in 2025 was 93.6% (2024: 98.7%). This improvement in the net combined ratio is mainly due to the positive development of the motor lines of business in Türkiye. GROUP FUNCTIONS The Group Functions reportable segment includes VIG Holding (including the branches in Northern Europe), VIG Re (including the branches in Germany and France), Wiener Re, VIG Fund, corporate IT service providers, one asset management company and intermediate holding companies. VIG Holding primarily focuses on managerial tasks for the Group. It also operates as the reinsurer for the Group as well as in the international corporate business. VIG Re, a reinsurance company established in Prague in 2008, offers tailored reinsurance solutions to both VIG insurance companies and third parties. With its branches in Germany and France, it is the leading reinsurance company in the CEE region and is continuously expanding its market position in continental Europe. As part of its strategic expansion into Asia, it is planning to establish a branch in Singapore, subject to regulatory approval. At the end of 2025, the rating agency Standard & Poor's again confirmed the A+ rating of VIG Re and raised the outlook to "positive". FINANCIAL PERFORMANCE INDICATORS IN THE REPORTABLE SEGMENT GROUP FUNCTIONS Insurance service revenue The insurance service revenue was EUR 1,766.5 million in 2025 and thus below the previous year's figure by 0.8% (2024: EUR 1,780.9 million). The decline is mainly due to lower intra-Group reinsurance business. Result before taxes In 2025, a loss of EUR 27.9 million was reported in the segment Group Functions (profit before taxes in 2024: EUR 21.3 million). The deterioration in the result is mainly due to a decline in the insurance service result following the strengthening of reserves in VIG Holding and VIG Re. The result before taxes, adjusted for adjustments of EUR 5.4 million (2024: EUR 0.0 million), resulted in a loss in the business operating result of EUR 22.5 million in 2025 (profit in the business operating result in 2024: EUR 21.3 million). The entire adjustment is due to the impairment of customer bases. CONSOLIDATED NON-FINANCIAL REPORT CONTENTS ESRS standard Disclosure Requirement Description Reference ESRS 2 BP-1 General basis for preparation of consolidated non-financial report 28 BP-2 Disclosures in relation to specific circumstances 30 GOV-1 The role of the administrative, management and supervisory bodies 34 GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management 36 and supervisory bodies GOV-3 Integration of sustainability-related performance in incentive schemes 37 GOV-4 Statement on due diligence 37 GOV-5 Risk management and internal controls over consolidated non-financial reporting 39 SBM-1 Strategy, business model and value chain 39 SBM-2 Interests and views of stakeholders 45 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 47 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 51 IRO-2 Disclosure requirements in ESRS covered by the undertaking's consolidated non-financial report 54 MDR-P Policies adopted to manage material sustainability matters 54 MDR-A Actions and resources in relation to material sustainability matters 63 MDR-M Metrics in relation to material sustainability matters 63 MDR-T Tracking effectiveness of policies and actions through targets 63 E1 - Disclosures pursuant to Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) 64 E1.GOV-3 Integration of sustainability-related performance in incentive schemes 70 E1-1 Transition Plan for climate change mitigation 70 E1.SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 72 E1.IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities 73 E1-2 Policies related to climate change mitigation and adaptation 76 E1-3 Actions and resources in relation to climate change policies 78 E1-4 Targets related to climate change mitigation and adaptation 80 E1-5 Energy consumption and mix 83 E1-6 Gross Scope 1, 2, 3 and Total GHG emissions 84 S1 S1.SBM-2 Interests and views of stakeholders 91 S1.SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 92 S1-1 Policies related to own workforce 92 S1-2 Processes for engaging with own workforce and workers' representatives about impacts 94 S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns 95 S1-4 Taking action on material impacts on own workforce and approaches to mitigating material risks and pursuing 95 material opportunities related to own workforce, and effectiveness of those actions S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks 96 and opportunities S1-6 Characteristics of the undertaking's employees 96 S1-7 Characteristics of non-employee workers in the undertaking's own workforce 97 S1-8 Collective bargaining coverage and social dialogue 97 S1-9 Diversity metrics 98 S1-10 Adequate wages 98 S1-11 Social protection 99 S1-12 Persons with disabilities 99 S1-13 Training and skills development metrics 99 S1-14 Health and safety metrics 99 S1-15 Work-life balance metrics 100 S1-16 Compensation metrics (pay gap and total compensation) 100 S1-17 Incidents, complaints and severe human rights impacts 101 ESRS standard Disclosure Requirement Description Reference - Additional company-specific disclosure 101 S4 S4.SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 103 S4-1 Policies related to consumers and end-users 104 S4-2 Processes for engaging with consumers and end-users about impacts 105 S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns 106 S4-4 Taking action on material impacts, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users and effectiveness of those actions 106 S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 109 - Additional company-specific disclosure 110 G1 G1.GOV-1 The role of the administrative, management and supervisory bodies 111 G1.SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 112 G1.IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities in business conduct 112 G1-1 Corporate culture and business conduct policies 113 G1-3 Prevention and detection of corruption and bribery 115 G1-4 Confirmed incidents of corruption or bribery 118 G1-5 Political influence and lobbying activities 118 - Additional company-specific disclosure 119 GENERAL INFORMATION ESRS 2 - GENERAL DISCLOSURES Basis for preparation DISCLOSURE REQUIREMENT BP-1 - GENERAL BASIS FOR PREPARATION OF CONSOLIDATED NON-FINANCIAL REPORT All material topics of the sustainability activities of VIG (fully consolidated companies) are reported in the consolidated nonfinancial report or sustainability statement as part of the Group management report, in accordance with both the currently applicable Austrian Sustainability and Diversity Improvement Act (NaDiVeG, EU Directive 2014/95) and the Corporate Sustainability Reporting Directive (CSRD, EU Directive 2022/2464). This covers all sustainability matters in accordance with NaDiVeG and § 267a of the Austrian Commercial Code (UGB). They are presented in chapters ESRS E1 "Climate change" for "Environ-mental matters in accordance with NaDiVeG"; ESRS S1 "Own workforce" for "Employee matters in accordance with NaDiVeG" and ESRS G1 "Business conduct" for "Respect for human rights and combating corruption and bribery in accordance with NaDiVeG". The Corporate Sustainability Reporting Directive (CSRD, EU Directive 2022/2464) was transposed into Austrian law in February 2026, but the provisions of the Austrian Sustainability Reporting Act (NaBeG) are not yet mandatory for the 2025 financial year. As the CSRD had not yet been transposed into Austrian law by the balance sheet date of 31/12/2025, the consolidated nonfinancial statement is reported on a voluntary basis in accordance with the EU requirements of the CSRD and the European Sustainability Reporting Standards published in this context. The report was prepared voluntarily in accordance with Article 29a of the Accounting Directive (EU Directive 2013/34) and the current ESRS, so that all essential information on sustainability-related impacts, risks and opportunities is disclosed. Categories of ESRS Standards The consolidated non-financial report has been prepared and is presented in accordance with the general requirements of ESRS 1. In accordance with the requirements of ESRS 2, VIG fulfils the disclosure requirements for all material sustainability aspects in the areas of governance, strategy, the management of impacts, risks and opportunities, as well as metrics and targets, and complies with the requirements of the topical standards. In accordance with ESRS 1, topics whose impacts, risks and opportunities have been rated as "not material" for both VIG and sustainability matters are not taken into account. Company-specific disclosures In addition, VIG discloses company-specific information in ESRS S1 "Own workforce", ESRS S4 "Consumers and end-users" and ESRS G1 "Business conduct". Reporting areas The disclosure requirements are divided into the following reporting areas: Governance (GOV): governance processes, controls and procedures for monitoring, managing and overseeing impacts, risks and opportunities; Strategy and business model (SBM): the interaction of the strategy and the business model with the material impacts, risks and opportunities, including how they are addressed; Impact, risk and opportunity management (IRO): processes for identifying the impacts, risks and opportunities, assessing their materiality and taking appropriate action to address them; Metrics and targets (MT): metrics and defined targets, and progress towards achieving targets. Double materiality as the basis for the non-financial report The principle of double materiality is of fundamental importance for the consolidated non-financial report. On this basis, the report aims to give readers an understanding of two key perspectives: on the one hand, the impact of VIG's activities on sustainability topics (inside-out perspective; impact materiality) and, on the other, how sustainability aspects may affect VIG's financial position (outside-in perspective; financial materiality). The double materiality assessment thus forms the basis of the consolidated non-financial report. Further details are provided in chapter ESRS 2 IRO-1 "Description of the process to identify and assess material impacts, risks and opportunities". Scope of consolidation of the sustainability statement The consolidated non-financial report is prepared by VIG Holding for VIG (fully consolidated companies) for the reporting period from 1 January 2025 to 31 December 2025. A sustainability statement has therefore been prepared on a consolidated basis. The principles of consolidation have been harmonised between the financial and sustainability reporting and applied consistently. The scope of consolidation of the CSRD sustainability statement therefore corresponds to that of the consolidated financial statements prepared in accordance with IFRS, with the exception-due to the war situation-of selected reporting data for the three insurance companies in Ukraine. These three companies were not included in ESRS S1 "Own work-force", ESRS S4 "Consumers and end-users" or ESRS G1 "Business conduct", and nor were they included in the calculation and reporting of emissions from the company's own operations. The data from the three companies-as they are available centrally-was included in the calculation of the Scope 3.15 emissions in the same way as the other companies. More information on the scope of consolidation and the consolidation method is provided in the consolidated financial statements under "Additional disclosures" in Chapter 21 "Business combinations" and Chapter 22 "Affiliated companies and participations". In determining the ESRS scope of consolidation according to the nature and scope of the inclusion of associated companies, no undertakings over which VIG has operational control were identified among the non-consolidated companies in the financial reporting pursuant to IFRS. Greenhouse gas emissions of the at equity companies are recorded on a pro rata basis and taken into account in accordance with the respective ownership interests under Scope 3.15 or separately shown in ESRS E1-6 "Gross Scope 1, 2, 3 and Total GHG emissions." The following table shows the companies for which the group exemption from preparation of a separate ESRS-compliant sustainability report is being utilised locally for the 2025 financial year. Exemption from reporting according to the CSRD Company Country Alfa Hungary Asirom Romania BTA Baltic Latvia Compensa Life Poland Compensa Non-Life Lithuania Compensa Non-Life Poland ČPP Czech Republic Donau Versicherung Austria InterRisk Poland Komunálna Slovakia Kooperativa Czech Republic Kooperativa Slovakia Omniasig Romania Union Biztosító Hungary Wiener Osiguranie Croatia Wiener Städtische Austria Coverage of the value chain As part of the sustainability statement, the double materiality analysis carried out in 2024 was re-evaluated in the year under review, taking into account the Company's own business activities and the upstream and downstream value chain. All material impacts, risks and opportunities lie exclusively in the area of own business activities and the downstream value chain; no significant issues were identified in the upstream value chain (only the voluntary Scope 3.6 reporting on greenhouse gas emissions from business trips is to be allocated to the upstream value chain in accordance with the GHG protocol, although the topic was not identified as essential in the materiality analysis, but is included for certain stakeholders due to the assumed relevance). Further information on the value chain can be found in chapter ESRS 2 SBM-1 "Strategy, business model and value chain". DISCLOSURE REQUIREMENT BP-2 - DISCLOSURES IN RELATION TO SPECIFIC CIRCUMSTANCES Time horizons The following time horizons have been defined for the purposes of sustainability reporting: for the short-term time horizon: a reporting period of up to one year for the medium-term time horizon: from the end of the short-term reporting period up to three years for the long-term time horizon: from the end of the medium-term reporting period The time horizon for the medium-term materiality assessment was aligned with the business plan and set at one to three years compared to the 2024 reporting, which defined it as two to five years. The definitions for the short- and long-term time horizon have also been adjusted accordingly. The periods are therefore based on those of VIG's financial and business planning, enabling a transparent financial quantification. It also ensures consistency between strategic business planning and the assessment of sustainability impacts, risks and opportunities. Estimates in the consolidated non-financial statement The full collection of primary data along the entire value chain is made more difficult due to the limited availability of information. This makes it necessary to use estimates to prepare this sustainability statement. This relates to metrics for calculating emissions data in the Company's internal operations, in underwriting (corporate and retail customers) as well as in asset management including the real estate portfolio and the calculation of remuneration metrics. Existing data gaps were closed by means of extrapolations, which are described below. Estimates in internal operations Estimates were made in the year under review for the environmental key figures in the Company's internal operations, insofar as not all consumption data for the entire year were available for certain companies as of the reporting date of 31 December 2025. Extrapolation data were used on the basis of the existing monthly values from the previous year or missing energy metrics were extrapolated on the basis of the net usable area of the respective company, which were then multiplied by a median value across countries and industries (e.g. median of the reported power consumption per square metre multiplied by the reported net usable area of the Company). The approach used provides a consistent and reliable basis for the extrapolations and thus ensures that the consumption data are estimated as realistically as possible. Estimates in underwriting For underwriting for corporate customers, emissions were calculated in accordance with the "economic activity-based emissions estimate" in accordance with the Partnership for Carbon Accounting Financials (PCAF Standard, Part C, Version 1, November 2022). This calculation is based on average emissions data for the respective industry. The insurance contracts are assigned to the average economic emission intensities of the industry underlying the policyholders. The average cost of risk(i.e. the average written premiums of policyholders in the sector in relation to the revenue generated by policyholders with their company) is used to convert the premiums written under the insurance contracts into an estimate of the insured revenue (representative of the share of the total insurance). The policyholders' revenue figures are often not recorded in the underwriting system and therefore have to be estimated. The insurance contracts are mapped to industry averages using NACE codes of varying granularity. The NACE code is the classification of economic activities in the European Union (the term "NACE" derives from the French title "Nomenclature statistique des activités économiques dans la Communauté européenne"). This estimate reflects the share of absolute emissions of policyholders that are covered by the insurance contracts. The insurance-associated emissions were calculated by dividing the total absolute emissions by the average cost of risk of the underlying sector to obtain the insured revenue in that industry. This figure was then multiplied by the average emission intensity (tCO 2 e/revenue) of the sector in order to obtain the estimated emissions. Alternatively, the premiums written under an insur ance contract can be divided by the cost of risk and then multiplied by the average energy intensity of the respective sector. The formula shown below serves to illustrate the calculation logic and schematically shows the underlying influencing factors. Emissions = [Premiums/average cost of risk] x emission intensity x insurer attribution factor The emissions data for underwriting (corporate) were calculated in the reporting year with a reporting date of 31 October 2025. This difference in reporting date has no material impact in terms of data quality, since at that time the vast majority of the relevant data was already available and the remaining two months do not cause any significant changes in the portfolio. Since average values are used to calculate the emissions, a certain degree of measurement uncertainty in the reporting year cannot be ruled out. Efforts are made to minimise estimation uncertainty as far as possible. Work will continue to improve data quality in the future. Emissions in the motor portfolio are calculated in accordance with the PCAF standard (Part C, Version 1, November 2022) "Insurance-Associated Emissions". For estimation purposes, the "Estimated Vehicle-Specific" approach (Score 2-3) described in the PCAF Standard is used for passenger cars and light commercial vehicles, while the "Estimated Vehicle-Unspecific" approach (Score 4) is applied to other vehicles, as no primary data from policyholders' motor portfolios are available for an "Actual Vehicle-Specific" approach (Score 1). Using data based on existing insurance contracts, each vehicle with a motor third party liability insurance (MTPL) policy was assigned emission values in the motor portfolio. Based on the data from the individual consolidated companies, which in the reporting year were submitted with a reporting date of 31 October 2025, emissions were calculated using vehicle-specific emissions per 100 km travelled and the annual distance travelled by the vehicle. For the reporting year, 75.1% (2024: 77.1%) of the reported emissions are already calculated on the basis of the official CO₂e data provided by vehicle manufacturers. The remaining data gap of 24.9% (2024: 22.9%) of emissions results from the fact that vehicle identification numbers (VINs) were not available for all vehicles. Therefore, an approximation based on the known vehicle categories in the respective country is used. The data on assumed kilometres travelled were obtained from public sources. In the case of passenger cars, average mileage was derived from Eurostat publications per country. The earlier reporting date does not result in any significant inaccuracies with regard to the data quality in the motor portfolio, as there are only minor fluctuations and the emission values for the last two months of the reporting year therefore had no material impact on the total emissions. In order to improve the accuracy of the emissions collected in the future, more precise information on the mileage of vehicles and a more complete recording of vehicle types will be sought. Value chain estimation in asset management In the area of asset management, 74.1% (2024: 74.8%) of corporate bonds and equities were directly covered by emissions data from an external ESG database of a specialised financial service provider in 2025 (including investment fund units). The coverage rate for government bonds in the reporting year was 99.9% (2024: 99.9%). For more information on estimated emission calculation values in the assessment and availability of primary data, see chapter ESRS E1-6 "Gross Scopes 1, 2, 3 and Total GHG emissions". Value chain estimation in the real estate portfolio The financed emissions from VIG's real estate portfolio were collected and calculated in accordance with PCAF (Part A, Version 2, December 2022) "Financed Emissions". Depending on the availability of primary and secondary data, emissions are calculated using three approaches with decreasing data quality. A more detailed description of the calculation of emissions from VIG's real estate portfolio can be found in chapter ESRS E1-6 "Gross Scopes 1, 2, 3 and Total GHG emissions", which presents VIG's greenhouse gas emissions (GHG). A distinction was made between actual emissions and estimated and calculated emissions when collecting the relevant emissions. For all properties for which verifiable and complete consumption figures are available, the actual emissions can be collected and reported. For all those properties for which no (detailed) consumption data are currently available, the information shown on the energy performance certificate is used to calculate the total emissions. To do this, the estimated energy consumption per m 2 based on the information in the energy performance certificate is used to calculate the emissions based on an average emission factor for the energy source used. In the case of real estate investments for which neither consumption data nor energy performance certificates are available, estimates are carried out in the same way as for the other investment classes, using approximations from an external specialised financial service provider in accordance with the NACE classification. Consequently, VIG used all three approaches proposed by PCAF (Part A) for calculating the real estate portfolio's emissions. As data quality increases, the inaccuracy of estimates will gradually decrease in the future. Sources of estimation and outcome uncertainty The same method used for the consolidated income statement in financial reporting was used to translate foreign currency amounts into the reporting currency of euros during the financial year in order to ensure consistent and comparable reporting in accordance with ESRS 1 (see "Additional disclosures" in chapter 25.1 "Currency translation" in the consolidated financial statements). Where possible, actual and up-to-date emissions data from the investee companies, taken from the external database used, were used to determine the financed emissions. In the calculation of the remuneration ratios in ESRS S1 "Own workforce", the salary data are adjusted for purchasing power differences and currency conversion by means of purchasing power parities (PPP) according to Eurostat. The salary data of around 7,000 employees of Austrian VIG companies were used as the basis for determining the median of the annual total remuneration of all employees (excluding the highest-paid individual). The median for the entire VIG was derived based on the distribution of these data. Further information on the calculation methods can be found in the respective metrics in ESRS S1 "Own workforce". Changes in preparation or presentation of sustainability information The results of the first double materiality analysis from 2024 were revised in the reporting year. Identified impacts, risks and opportunities were summarised by topic following a structured process in order to avoid redundancies. In addition, positive impacts in individual cases were transferred to actions. Furthermore, the evaluation process was aimed at further strengthening communication with internal stakeholders on the key issues (see chapter ESRS 2 IRO-1 "Description of the process to identify and assess material impacts, risks and opportunities" in accordance with ESRS 2). As part of the evaluation, measurement schemes were generalised (see chapter ESRS 2 IRO-1) and time horizons were adjusted (see ESRS 2 BP-2 "Time horizons"). In addition to the company-specific topic of social engagement defined in 2024 in ESRS G1 "Business conduct", two other company-specific topics have been identified: "Artificial intelligence" in ESRS S1 "Own workforce" and "Promoting risk literacy" in ESRS S4 "Consumers and end-users". The results of the consolidated materiality analysis are presented in the present sustainability statement in tabular form in ESRS 2 SBM-3 "Material impacts, risks and opportunities and their interaction with strategy and business model". In addition, at the beginning of each topic chapter, an overview is given of the corresponding impacts, risks and opportunities, including the main measures and underlying concepts, in order to ensure a transparent and comprehensible presentation. For the information provided under Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation), VIG has adopted the new simplified reporting templates of Commission Delegated Regulation (EU) 2026/73 of 4 July 2025. This approach was applied uniformly to both the investment and underwriting KPIs. Since the 2025 reporting year, only the portfolios under own management (own risk) have been taken into account for the calculation of the share of green bonds. This adjustment was made to ensure that coverage is consistent with the Responsible Investment strategy. Reporting errors in prior periods For the 2024 reporting year, the proportion of employees covered by a collective bargaining agreement increased from 33.6% to 46.5%. The increase is due to an error in the data reported by a company in 2024. The discrepancy was identified and corrected in 2025 as part of expanded validation processes, and the previous year's figures for 2024 were corrected accordingly. For further details, see ESRS S1-8 "Collective bargaining coverage and social dialogue". Disclosures stemming from other legislation or generally accepted pronouncements on the consolidated non-financial report Disclosures in accordance with Article 8 of Regulation 2020/852 (Taxonomy Regulation) are published in the environmental information in ESRS E1 "Climate change". Where information has been included in the consolidated non-financial report on the basis of other legislation or recognised standards, this has been indicated in the appropriate places. References outside the consolidated non-financial report: Chapter ESRS reporting Reference BP-1 General basis for preparation of consolidated non-financial report Consolidated financial statements under "Additional disclosures" in chapter "21. Business combinations" and chapter "22. Affiliated companies and participations" BP-2 Disclosures in relation to specific circumstances Consolidated financial statements under "Additional disclosures", chapter "25.1. Currency translation" GOV-1 The role of the administrative, management and supervisory bodies Group Annual Report under "Corporate Governance Report", chapter "Supervisory Board independence" GOV-2 Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies no reference GOV-3 Integration of sustainability-related performance in incentive schemes Website https://group.vig/en/vig-inside/corporate-governance , "VIG Holding Remuneration Policy", chapter 2.2. "Remuneration of Managing Board members" GOV-5 Risk management and internal controls over consolidated non-financial reporting Group management report, chapter "Internal control and risk management system" Consolidated financial statements, chapter "Risk strategy and risk management system" SBM-1 Strategy, business model and value chain Group Annual Report, chapter "Group strategy evolve 28 " and "Sustainability programme" Consolidated financial statements, chapter "Risk strategy and risk management" and the report on solvency and financial situation; Group management report, chapter "Group business development and financial performance indicators" SBM-2 Interests and views of stakeholders no reference SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities Consolidated financial statements, under "Additional disclosures", chapter "25.5. Goodwill" and chapter "25.9. Calculation of fair value" Consolidated financial statements, chapter "Risk strategy and risk management" MDR-P Policies adopted to manage material sustainability matters Group Annual Report, chapter "Group strategy evolve 28 " MDR-T Tracking effectiveness of policies and actions through targets no reference E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions: Insurance turnover: Insurance service revenue - issued business E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions: Real estate income (from rented properties of insurance companies and from real estate holding companies) E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions: IFRS 15 turnover from non-insurance companies: Other income (other revenue from services) Consolidated financial statements, chapter "Consolidated income statement" Consolidated financial statements, chapter "4 Investment property" Consolidated financial statements, chapter "16. Type of expenses and details Other income and expenses" Governance DISCLOSURE REQUIREMENT GOV-1 - THE ROLE OF THE ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES The VIG Holding Managing Board comprised seven members as of 31 December 2025. The Supervisory Board consists of 12 members. There is no works council at VIG Holding, so there are no workers' representatives on the Supervisory Board. The interests of employees are covered by the specific activities described in more detail in the chapter on Disclosure Requirement ESRS S1-2 "Processes for engaging with own workforce and workers' representative about impacts", as well as through due consideration in the relevant bodies. The areas of responsibility and country responsibilities of the Managing Board members are described in the Corporate Governance Report under "Members of the Managing Board and their responsibilities" in the Annual Financial Report. The gender-specific composition and other diversity metrics for both the Managing Board and the Supervisory Board of VIG Holding are presented below. Gender, generations and internationality are the primary diversity criteria in relation to top management. The data as of 31 December 2025 were used to calculate the percentage distribution. Diversity (gender, generations, internationality) on the Managing Board and Supervisory Board of VIG Holding Managing Board of VIG Holding Supervisory Board of VIG Holding 2025 2024 2025 2024 Gender Number in % Number in % Number in % Number in % Male 6 85.71 6 85.71 7 58.33 7 58.33 Female 1 14.29 1 14.29 5 41.67 5 41.67 Nationality Austrian 6 85.71 6 85.71 6 50.00 6 50.00 Non-Austrian 1 14.29 1 14.29 6 50.00 6 50.00 Generations Under 30 years old 0 0 0 0.00 0 0 0 0.00 30-50 years old 3 42.86 3 42.86 2 16.67 2 16.67 Over 50 years old 4 57.14 4 57.14 10 83.33 10 83.33 On the basis of the data presented in the previous table, the Managing Board's gender diversity ratio in the reporting year was 0.17, while the corresponding figure for the Supervisory Board was 0.71. The metrics reflect the ratio of female to male members in the respective committees. Seventy-five percent of the members of the Supervisory Board elected by the Annual General Meeting can be categorised as independent in the reporting year in accordance with the independence criteria defined by the Supervisory Board under C-Rule 53 of the Austrian Code of Corporate Governance; see the Annual Financial Report under "Corporate Governance Report", chapter "Supervisory Board independence". The Corporate Governance Report in the Annual Financial Report (see "Members of the Supervisory Board") contains comprehensive information on the tasks and responsibilities of the Supervisory Board. This includes an overview of the individuals and committees of the Supervisory Board. The Supervisory Board, as a whole, regularly deals with sustainability issues. It has established the Committee for Urgent Matters (Working Committee), the Audit Committee (Accounts Committee), the Committee for Managing Board Matters (Personnel Committee), the Strategy Committee and the Nomination Committee. These committees carry out all activities defined under the law, articles of association and the procedural rules of the Super- visory Board. The Audit Committee (Accounts Committee) performs the tasks in accordance with § 92 (4a) of the Austrian Stock Corporation Act (AktG) and § 123 (9) of the Austrian Insurance Supervision Act (VAG) 2016, as well as Regulation (EU) No. 537/2014. It is therefore responsible in particular for the auditing and preparation of the approval of the separate financial statements, the proposal for appropriation of profits and the management report. The Committee for Managing Board Matters (Personnel Committee) deals in particular with the personnel matters of the Managing Board members and reviews the remuneration policy at regular intervals. The Managing Board submits the Group management report and thus the consolidated non-financial report contained therein to the Audit Committee and the Supervisory Board as a whole, and the Audit Committee and Supervisory Board then audit the consolidated non-financial report as part of the audit of the management report. The VIG Holding Managing Board is responsible for the management of the company and VIG. The Managing Board manages the business of the company under the leadership of its Chairperson and within the constraints of the law, articles of association and procedural rules of the Managing Board. It meets regularly to discuss current business developments, and makes the necessary decisions and resolutions during the course of these meetings. The Managing Board members continuously exchange information with each other and with the heads of various departments. Overall responsibility for the topic of sustainability lies with the Managing Board, whereby sustainability is generally anchored in terms of content as a cross-cutting topic in all areas of the organisation and is therefore part of the line functions. Accordingly, responsibility for the implementation of sustainability aspects also lies with the respective departmental responsibilities of the VIG Holding Managing Board or with the local management of the VIG companies. Sustainability matters are taken into account by the individual departments when performing their tasks within the scope of their respective responsibilities on the VIG Holding Managing Board. In addition, a Group Sustainability Office (GSO) has been established within VIG Holding to consolidate and coordinate efforts. This office is assigned to the portfolio of the Chairperson of the Managing Board. On behalf of the Managing Board, it coordinates and manages the sustainability activities and their further development at VIG, involving the relevant departments. A Sustainability Committee, consisting of members of the Managing Board and managers from various divisions of VIG Holding, deals comprehensively with important topics of the introduction, implementation and further development of VIG's sustainability activities, whereby it is in particular responsible for issuing recommendations to the Managing Board on key issues relevant to the Managing Board's resolution in the area of sustainability. It meets at least quarterly; the Managing Board is informed by means of minutes and, where appropriate, through an oral presentation at a Board meeting. The following are represented on the Sustainability Committee: Deputy Chairman of the Managing Board, Chief Finance and Risk Officer (CFRO), Chief Operating Officer (COO) and, in particular, managers from the Corporate Business, Retail Insurance & Business Support, Asset Management (including Real Estate), Human Resources, European Affairs, Risk Management and Group Finance and Regulatory Reporting departments. The nomination of these representatives within VIG Holding is linked to the spheres of impact of VIG's sustainability programme. The Group Sustainability Officer, who also chairs the committee and reports regularly to the Managing Board on the committee's work, is responsible for managing the committee. In the 2025 reporting year, the Managing Board of VIG Holding informed the members of the Supervisory Board of material sustainability and IT security matters. Among other things, the transition plan for climate change mitigation was dealt with by VIG's commitment to achieving emission targets by 2030. As in the governance structure described above, responsibility for monitoring the objectives in connection with the sustainability programme lies with the local management of the VIG companies and also with the respective departmental responsibilities of the VIG Holding Managing Board. The local management of the VIG companies informs the local supervisory board at least twice a year about the objectives and the implementation status of the sustainability programme at the level of the VIG companies. At VIG Holding, the topic of sustainability is regularly dealt with in the Supervisory Board. The members of the Managing Board and the Supervisory Board have the necessary specialist knowledge, industry knowledge and experience, especially in the countries in Central and Eastern Europe in which VIG operates, in order to properly fulfil their duties. The relevant experience and expertise comes from relevant further education and training courses as well as corresponding professional experience, which is also ensured by the statutory fit & proper requirements. The members of the Supervisory Board also receive regular training and information on current specialist topics. A comprehensive document governance system is established in VIG in at least all (re-)insurance companies, asset management companies and pension funds, provided VIG Holding (directly or indirectly) holds more than 50% of the shares. This regulation regulates in detail how binding specifications for VIG can be issued. This system differentiates between Group policies, Group guidelines and Group operating procedures. While policies are adopted by the full Managing Board, guidelines are approved by the responsible Managing Board member. Operating procedures are issued by the responsible department manager or a special representative of VIG Holding on the basis of an authorisation in a policy or guideline. The governance documents are communicated to the VIG companies within the scope of application of the document by the respective document creator. In addition, the documents can be accessed on the Intranet. The governance documents require local implementation at VIG company level in order to be effective, and the approval requirements must correspond to those at VIG Holding level. If, in exceptional cases, Group requirements cannot be implemented at VIG company level, there is a standardised process for handling deviations that provides for appropriate communication between the VIG companies in exceptional cases and the document creator(s) at VIG Holding and requires the decision of the local Supervisory Board in the event of disagreement. Once a year, Compliance (incl. AML) of VIG Holding carries out a centralised query to check that the Group-wide governance documents have been formally implemented. The relevant VIG Holding document creator is responsible for monitoring implementation. In addition, the implementation of governance documents forms part of the internal audit process. This multi-pronged approach to monitoring ensures effective implementation and compliance in the VIG companies. DISCLOSURE REQUIREMENT GOV-2 - INFORMATION PROVIDED TO AND SUSTAINABILITY MATTERS ADDRESSED BY THE UNDERTAKING'S ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES Individual members of the Managing Board or the full Managing Board of VIG Holding are informed about sustainability aspects within the scope of their departmental responsibilities by the managers of the departments and the Chairperson of the Sustainability Committee (see Group Sustainability Office, GSO). Compliance and data protection are also reported on a regular basis. In addition, the VIG Holding Managing Board regularly addressed IT security-related topics and was updated on the current status of the Cyber Defense Center programme. During the reporting year, the Supervisory Board of VIG Holding was also informed, following a meeting, about EU sustainability regulation for insurance companies and its implications for VIG. The Supervisory Board, both as a whole and through the Audit Committee, took the opportunity to address sustainability matters. The Managing Board as the management body and the Supervisory Board as the governance body are involved in such matters in accordance with the statutory requirements for these bodies, which define the relevant responsibilities. The strategic and economic relevance of the decision plays an important role in this. The material sustainability impacts, risks and opportunities identified in the double materiality analysis are largely also reflected in the six spheres of impact of the VIG sustainability programme. The actions taken in connection with ESRS E1 "Cli-mate change" focused on the preparation of a transition plan for climate change mitigation for VIG and were approved by the VIG Holding Managing Board on 27 January 2025. In addition, key performance indicators (KPIs) related to ESRS reporting were presented, for example on the GHG emissions from underwriting, asset management and internal operations. The Group-wide ESG risk catalogue, which was drawn up in accordance with the Guide for Managing Sustainability Risks of the Financial Market Supervisory Authority (FMA), forms the basis for identifying and assessing risks within the framework of the consolidated double materiality analysis in accordance with ESRS. The results of the Group-wide ESG risk catalogue are generally reported to the VIG Holding Managing Board once a year. DISCLOSURE REQUIREMENT GOV-3 - INTEGRATION OF SUSTAINABILITY-RELATED PERFORMANCE IN INCENTIVE SCHEMES The incentive schemes for the members of the VIG Holding Managing Board reflect the Company's success from the perspective of the various stakeholders, i.e. the remuneration is intended to reward successful management, particularly with regard to sustainable earnings on the one hand, and contributions to employee and common good on the other. The remuneration package for members of the VIG Holding Managing Board is divided into fixed and variable components (see the part of the VIG Holding remuneration policy relating to members of the Managing Board, Section 2.2.5), while the remuneration for members of the VIG Holding Supervisory Board does not include a variable component. The variable remuneration of the members of the VIG Holding Managing Board is linked to the achievement of pre-defined annual performance targets, which include both financial and non-financial components. In 2025, the transition plan for climate change mitigation was anchored in the non-financial targets of the VIG Holding Managing Board and weighted at 50% of the strategic special targets (see also section 2.2.2 b of the remuneration policy). This means that the consistent implementation and follow-up of the actions defined in the transition plan for climate change mitigation is integrated into the variable remuneration system. Moreover, a significant part of the variable remuneration is subject to a sustainability-oriented deferral rule, where 40% of the bonus earned for the financial year is distributed on a straight-line basis over three years. The deferred payments depend on the sustainable development of VIG. When assessing sustainable development, both economic goals and the responsibility towards the environment, society and employees are considered, thus embedding longterm sustainability into the remuneration structure...

View stock analysis, news, and events for Vienna Insurance Group Ag