Bond Issuance Roadshow
Interested in the top 3 topics COO Gerhard Lahner was recently asked at our bond issuance roadshow? We have summarised them for you:
What impact has inflation on your business?
Gerhard Lahner: Inflation was on our agenda already mid of last year. I believe VIG is well positioned to handle the topic for different reasons: In Austria, where contracts tend to be more long-term, we have the possibility of adjusting premiums based on the indexation clauses included in the contracts. Contracts in CEE are more short-term and often have a duration of only one year. Premium adjustments are therefore possible on an annual basis. Here it is particularly important for our sales staff to inform customers about the risk of underinsurance if premiums don’t get adjusted.
Do you have a leverage target?
Lahner: We want our leverage ratio - which follows the calculation of Standard & Poor’s – to stay below 40%. In the past, our leverage has been between 20 and 30%, whereby we have accepted a slightly higher ratio in 2021, when we issued a RT1 bond as well as our first sustainability bond and took advantage of the favourable capital market environment. Nevertheless, we would prefer to be in the mentioned range around 20%.
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What is your exposure to Ukraine and Russia?
Lahner: We have no business operations in Russia since 2012. With regards to Ukraine, our business is up and running as far as possible and it really astonishes me under which circumstances our employees work there but I guess they are trying to have a somewhat normal life. We are mainly operating in the Western part of the Ukraine.
Investment-wise we have an exposure of roughly 250 million euros relating mainly to Russian and Ukrainian bonds. The biggest part - 190 million euros – refers to the Russian investment exposure, mainly government and corporate bonds. We have not taken any impairments yet. However, we have built a precautionary measure of roughly 75 million euros related to the Russian investment exposure and will assess the situation again at the half-year 2022 results.
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Highly-accomplished versatile logistic and freight forwarding executive with focus airfreight. Over 20 year’s professional experience and a proven track record in international markets.
2 年Suver?n wie immer ??
mercury-club.cz
2 年Sehr gut :-) Gratuliere :-)
Director Strategic Partnerships and investor relations/ CFO
2 年Well done Gerhard
Managing Director bei CALLCOM Telecommunication GmbH
2 年Top ??
Managing Director at Igepa Austria GmbH
2 年Bold move Gerhard, congrats!