VIG holds some EUR 100 million in Carinthia-guaranteed bonds of Hypo, half of which is subordinated capital.
Also, Uniqa, Austria's second biggest insurer stands to lose about EUR 35 million.
The proposed law must now be approved by Austria's parliament.
Both companies said on Wednesday that they would take steps to protect their rights.
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Uniqa and VIG to Challenge Draft Hypo Law