Vienna Insurance Group acquires Nürnberger for biometric expertise

Vienna Insurance Group (VIG), valued at €9 billion with a premium volume of €16 billion, has acquired the Nürnberger Versicherungsgruppe in Germany. Liane Hirner, VIG's CFO, stated that the acquisition provides a one-time opportunity to gain expertise in biometric products, specifically occupational disability insurance, which is a leading market for Nürnberger. The move aims to strengthen group diversification and resilience, with Nürnberger's post-turnaround dividend flow intended to fund further investments in the core Central and Eastern European market. VIG expects the acquisition to reduce its solvency ratio by approximately 25 percentage points, though it remains near 300 percent, well above the 150-200 percent target range. The company plans to use its capital strength for further acquisitions in markets where it is not yet a top-three player, such as Poland and Slovenia. VIG operates in 30 countries with over 50 insurance companies, maintaining a multi-brand strategy to preserve local trust. Hirner noted that local brands create proximity and trust, which are essential in the insurance business, and that the group does not impose a minimum size on subsidiaries as long as they grow profitably. The company also maintains a hybrid distribution model, with 8% of distribution via digital channels and the remainder split between brokers, own sales staff, and bank partnerships. Hirner argued that complex products like life and occupational disability insurance remain trust-based and require long-term advisory relationships, predicting a future mix of high-quality personal advice enriched by digital services rather than a full shift to digital-only distribution.