Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — 9M 2018 Earnings Presentation
46 slides from Vienna Insurance's earnings presentation, Nov 28, 2018
Slide 1: 9M 2018 Results Presentation
9M 2018 RESULTS PRESENTATION Vienna, 28 November 2018
Slide 2: 9M 2018 Results Conference Call: Presenting team and topics
9M 2018 RESULTS CONFERENCE CALL Presenting team and topics Attending Topics Members of the Board Liane Hirner, CFO Financials & Investments p. 3 Judit Havasi Summary & Targets 2018 p. 13 Peter Höfinger Appendix 1: Segments p. 15 Appendix 2: Financials p. 28 Note: Rounding differences m
Slide 3: Financials & Investments
FINANCIALS & INVESTMENTS SUMMARY & TARGETS 2018 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 3 VIG VIENNA INSURANCE GROUP
Slide 4: Highlights 9M 2018
HIGHLIGHTS 9M 2018 VIG well on track to reach full-year targets 2018 Gross written premiums Profit before taxes Combined Ratio € 7,357.5mn € 352.3mn 96.3% GWP up by 2.9% compared to 9M 2017 PBT increased by 6.4% Down from 97.3% in 9M 2017 Current premium business: +5.4% CEE profit growth impacte
Slide 5: Strong overall performance of VIG
STRONG OVERALL PERFORMANCE OF VIG 9M 2018 Income statement €mn 9M 2018 9M 2017 +/- % Gross premiums written 7,357.5 7,152.6 2.9 Premiums up by €205mn; adjusted for life single premium Net earned premiums 6,518.1 6,325.8 3.0 business premium growth of 5.4% Financial result1 795.9 732.1 8.7 Other in
Slide 6: Trends of previous quarters continue in Q3 2018
TRENDS OF PREVIOUS QUARTERS CONTINUE IN Q3 2018 Q3 2018 Income statement €mn Q3 2018 Q3 2017 +/- % Gross premiums written 2,207.2 2,180.2 1.2 Premiums up by 1.2% despite the lower single premium life Net earned premiums 2,163.2 2,106.7 2.7 business; growth driven by other property and motor Financ
Slide 7: Gross written premiums of €7.4bn up by €205mn
GROSS WRITTEN PREMIUMS OF €7.4bn UP BY €205mn Overview by segments Gross written premiums (€mn; y-o-y chg.) Premiums in Austria and Poland slightly lower y-o-y; adjusted for life single-premium business, premium growth in Austria of 1.9% and in Poland of 11.1% Premium decrease in Turkey/Georgia
Slide 8: Premium development by business lines
PREMIUM DEVELOPMENT AS EXPECTED – ALL BUSINESS LINES EXPERIENCE GROWTH, EXCEPT FOR LIFE SINGLE PREMIUM BUSINESS Gross written premiums by lines of business (€mn; y-o-y chg.); incl. Central Functions MTPL Casco Other property Total premiums +2.9% 9M 2017 1,039 811 3,119 7,153 7,357 +5.8% +8.6% +5.5%
Slide 9: Group profit before taxes of €352.3mn up by 6.4%
GROUP PROFIT BEFORE TAXES OF €352.3mn UP BY 6.4% Overview by segments Result before taxes (€mn; y-o-y change) Profit growth in AT and CZ driven by CoR improvements and better financial results SK: profit decrease of €8.1mn due to higher cost ratio and reserve strengthening in Q1 PL: provisions
Slide 10: Combined ratio (P&C) improved to 96.3%
COMBINED RATIO (P&C) IMPROVED TO 96.3% Positive development driven by improved claims ratio in AT, CZ and PL P&C Combined Ratio development Overview by segments (9M y-o-y development net, %) AT and CZ: improved cost and claims ratios +8.2%p -2.1%p -3.1%p +1.8%p -1.2%p -2.4%p SK: CoR increase dri
Slide 11: Investment split and bond portfolio overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Bond portfolio split by rating changed due to rating upgrade of CZ in Q3 9M 2018: Total €37.5bn Bond portfolio by rating1 4.3% 1.5% 5.5% AAA AA A BBB Other 9M 2018 10% 32% 36% 16% 6% 6.6% 12M 2017 10% 22% 45% 17% 5% 5.7% 66.5% Bond portfolio by issuer 9.9
Slide 12: Financial result increased by 8.7%
FINANCIAL RESULT INCREASED BY 8.7% Current income and income from disposal of investments incl. at equity consolidated companies Total 9M 9M Income +/- % 2018 2017 Current income 1,022,521 1,020,810 0.2 Financial result up by €63.8mn incl. at equity consolidated companies Income from appreciations
Slide 13: Summary & Targets 2018
FINANCIALS & INVESTMENTS SUMMARY & TARGETS 2018 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 13 VIG VIENNA INSURANCE GROUP
Slide 14: VIG with solid results, well on track to reach targets for 2018
VIG WITH SOLID RESULTS WELL ON TRACK TO REACH TARGETS FOR 2018 Executive summary Highlights Consolidation ongoing Mergers of local composite insurers with life insurance companies specialised in bank distribution completed in Austria, Slovakia, Hungary and Croatia; merger in Czech Republic expecte
Slide 15: Appendix 1: Segments
FINANCIALS & INVESTMENTS SUMMARY & TARGETS 2018 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 15 VIG VIENNA INSURANCE GROUP
Slide 16: Austria
AUSTRIA Merger of Wiener Städtische and S-Versicherung successfully completed GWP development (€mn) €mn 9M 2018 9M 2017 +/- % -0.4% Gross premiums written 2,996.4 3,009.6 -0.4 Adjusted for life single premium business, 3,010 Net earned premiums 2,364.5 2,380.3 -0.7 premiums in Austria up by 1.9%;
Slide 17: Czech Republic
CZECH REPUBLIC Ongoing strong premium and profit development GWP development (€mn) €mn 9M 2018 9M 2017 +/- % +5.6% Gross premiums written 1,274.4 1,206.5 5.6 Premium growth driven by life regular 1,274 Net earned premiums 955.7 896.6 6.6 premium business (+€35mn), other 1,206 Financial result1 79.
Slide 18: Slovakia
SLOVAKIA Premiums up in all lines of business, except for life single premium business GWP development (€mn) €mn 9M 2018 9M 2017 +/- % +0.4% Gross premiums written 591.7 589.2 0.4 Premium growth of 3.8% adjusted for life 589 592 Net earned premiums 490.0 486.3 0.8 single premium business Financial
Slide 19: Poland
POLAND Adjusted for life-single premium business, premium growth of 11.1% GWP development (€mn) €mn 9M 2018 9M 2017 +/- % -1.0% Gross premiums written 668.7 675.2 -1.0 Premium growth in motor lines of business 675 Net earned premiums 508.6 541.4 -6.1 (+€45mn) and other property (+€21mn) 669 Financ
Slide 20: Romania
ROMANIA After goodwill impairment of €50.1mn in Q2 2018, reserve strengthening and special provision in Q3 2018 GWP development (€mn) €mn 9M 2018 9M 2017 +/- % +5.2% Gross premiums written 392.9 373.4 5.2 Deterioration of motor market requires 393 Net earned premiums 294.2 278.2 5.7 reserve streng
Slide 21: Baltic States
BALTIC STATES CoR below 100% GWP development (€mn) €mn 9M 2018 9M 2017 +/- % +16.5% Gross premiums written 279.2 239.7 16.5 Strong premium growth in all lines of 279 Net earned premiums 202.1 179.0 12.9 business Financial result 4.1 4.7 -13.8 Other income 0.9 1.5 -41.2 Positive result contributi
Slide 22: Hungary
HUNGARY Double-digit top- and bottom-line growth GWP development (€mn) €mn 9M 2018 9M 2017 +/- % +11.2% Gross premiums written 191.1 171.8 11.2 Premium growth driven by life single 191 Net earned premiums 143.5 121.8 17.8 premium business (+€10mn), motor Financial result 4.8 4.9 -2.4 (+€6mn) and h
Slide 23: Bulgaria
BULGARIA Solid overall development despite slight CoR increase GWP development (€mn) €mn 9M 2018 9M 2017 +/- % +8.4% Gross premiums written 129.6 119.6 8.4 Premium increase driven by motor and 130 Net earned premiums 93.8 83.1 12.9 health business 120 Financial result 7.6 8.3 -9.2 17 Other income
Slide 24: Turkey/Georgia
TURKEY/GEORGIA Developments impacted mainly by FX situation in Turkey GWP development (€mn) €mn 9M 2018 9M 2017 +/- % -3.6% Gross premiums written 149.1 154.7 -3.6 Premiums as well as the result impacted 155 Net earned premiums 70.2 76.9 -8.8 mainly by TRY FX effects 149 Financial result 5.1 6.7 -
Slide 25: Remaining CEE
REMAINING CEE Ongoing strong performance in the 9M 2018 GWP development (€mn) €mn 9M 2018 9M 2017 +/- % +8.2% Gross premiums written 284.6 263.1 8.2 Remaining CEE includes Albania (incl. 285 Net earned premiums 213.3 183.8 16.0 Kosovo), Bosnia-Herzegovina, Croatia, Financial result 26.1 20.1 29.9
Slide 26: Other Markets
OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 9M 2018 9M 2017 +/- % +1.8% Gross premiums written 232.7 228.5 1.8 Premium increase driven by other property 233 Net earned premiums 198.3 196.0 1.2 and life business in Germany 229 Financial result 14.6 15.4 -5.3 Other income 2.0 3
Slide 27: Central Functions
CENTRAL FUNCTIONS Substantial improvement driven by financial result and other expenses GWP development (€mn) €mn 9M 2018 9M 2017 +/- % +9.4% Gross premiums written 1,168.1 1,068.1 9.4 Central Functions include VIG Holding, 1,168 Net earned premiums 979.7 901.2 8.7 VIG Re, VIG Fund, the non-profit
Slide 28: Appendix 2: Financials
FINANCIALS & INVESTMENTS SUMMARY & TARGETS 2018 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 28 VIG VIENNA INSURANCE GROUP
Slide 29: 9M 2018 Key Financials
9M 2018 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and non-controlling interest (€mn) ROE after tax and minorities1 (%) 288 298 7.3 7.2 7.0 6.6 215 207 2016 2017 9M 17 9M 18 2016 2017 9M 17 9M 18 EPS net of hybrid interest1 (€) Book value per share (€) 2.23 35.66 37.75 36.
Slide 30: Equity development in 9M 2018
EQUITY DEVELOPMENT IN 9M 2018 Change in Group Shareholders’ Equity (€mn) -4% 275 -195 -26 -135 6,044 5,813 -11 -140 Equity as of 12M17 Profit for the period Repayment Currency changes AFS unrealised Dividend payment Other Equity as of 6M18 hybrid capital gains and losses 30 APPENDIX 2: FINANCIALS VI
Slide 31: 9M 2018 Balance Sheet
9M 2018 BALANCE SHEET IFRS (€mn) €mn 30.09.2018 31.12.2017 +/- % Intangible assets 1,905 1,971 -3.3 Investments 36,530 35,933 1.7 Unit- and index-linked investments 8,743 9,061 -3.5 Reinsurers’ share in underwriting provisions 1,081 1,066 1.4 Receivables 1,544 1,476 4.6 Tax receivables and advance p
Slide 32: 9M 2018 Financial Result by Segment (I)
9M 2018 FINANCIAL RESULT BY SEGMENT (I) IFRS (€'000) Austria Czech Republic Slovakia Poland 9M 9M 9M 9M 9M 9M 9M 9M Income +/- % +/- % +/- % +/- % 2018 2017 2018 2017 2018 2017 2018 2017 Current income 555,451 561,881 -1.1 72,839 72,988 -0.2 32,497 32,192 0.9 16,623 18,071 -8.0 Income from appreciat
Slide 33: 9M 2018 Financial Result by Segment (II)
9M 2018 FINANCIAL RESULT BY SEGMENT (II) IFRS (€'000) Romania Baltic states Hungary Bulgaria 9M 9M 9M 9M 9M 9M 9M 9M Income +/- % +/- % +/- % +/- % 2018 2017 2018 2017 2018 2017 2018 2017 Current income 14,333 11,829 21.2 5,332 5,481 -2.7 4,033 4,107 -1.8 3,055 3,019 1.2 Income from appreciations 6
Slide 34: 9M 2018 Financial Result by Segment (III)
9M 2018 FINANCIAL RESULT BY SEGMENT (III) IFRS (€'000) Turkey / Georgia Remaining CEE Other Markets 9M 9M 9M 9M 9M 9M Income +/- % +/- % +/- % 2018 2017 2018 2017 2018 2017 Current income 7,763 7,663 1.3 28,070 26,306 6.7 14,993 15,561 -3.7 Income from appreciations 72 1,263 -94.3 84 727 -88.4 18 34
Slide 35: 9M 2018 Financial Result by Segment (IV)
9M 2018 FINANCIAL RESULT BY SEGMENT (IV) IFRS (€'000) Central Functions Consolidation Total 9M 9M 9M 9M 9M 9M Income +/- % +/- % +/- % 2018 2017 2018 2017 2018 2017 Current income 287,702 268,408 7.2 -48,183 -42,906 12.3 994,508 984,600 1.0 Income from appreciations 97 159 -39.0 0 0 7,138 16,461 -56
Slide 36: 9M 2018 Development for P&C Business According to VAG
9M 2018 DEVELOPMENT FOR P&C BUSINESS ACCORDING TO VAG (AUSTRIAN INSURANCE SUPERVISION ACT) IFRS (€mn) €mn 9M 2018 9M 2017 +/- % Gross direct premiums written 4,186.63 3,954.94 5.9 Gross direct1 445.76 306.68 45.3 Underwriting result 345.25 219.72 57.1 Financial result 100.508 86.97 15.6 Direct reins
Slide 37: 9M 2018 Development for Life Business According to VAG
9M 2018 DEVELOPMENT FOR LIFE BUSINESS ACCORDING TO VAG (AUSTRIAN INSURANCE SUPERVISION ACT) IFRS (€mn) €mn 9M 2018 9M 2017 +/- % Gross direct premiums written 2,627.19 2,704.88 -2.9 Gross direct 333.25 257.33 29.5 Underwriting result 0.00 0.00 Financial result 0.00 0.00 Direct reinsurance cessions -
Slide 38: 9M 2018 Development for Health Business According to VAG
9M 2018 DEVELOPMENT FOR HEALTH BUSINESS ACCORDING TO VAG (AUSTRIAN INSURANCE SUPERVISION ACT) IFRS (€mn) €mn 9M 2018 9M 2017 +/- % Gross direct premiums written1 367.09 345.36 6.3 Gross direct 30.15 33.37 -9.7 Underwriting result 0.00 0.00 Financial result 0.00 0.00 Direct reinsurance cessions -0.01
Slide 39: 9M 2018 Premiums by Business Lines and Country (I)
9M 2018 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- % Austria 258.8 253.2 2.2 227.1 221.4 2.6 1,080.0 1,056.5 2.2 Czech Republic 219.4 208.8 5.1 182.3 172.3 5.8 365.2 343.6 6.3 Slovakia 114.2 108.9 4.
Slide 40: 9M 2018 Premiums by Business Lines and Country (II)
9M 2018 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- % Austria 937.1 932.4 0.5 179.8 244.5 -26.4 313.5 301.7 3.9 Czech Republic 457.7 422.7 8.3 39.4 49.1 -19.8 10.4 9.9 5.4 Slovakia 128.0 123.6
Slide 41: 9M 2018 Country Overview GWP / PBT / Combined Ratio
9M 2018 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- %p Austria 2,996.4 3,009.6 -0.4 130.2 105.7 23.2 94.9% 97.0% -2.1 Czech Republic 1,274.4 1,206.5 5.6 123.8 113.7 9.0 93.6% 9
Slide 42: 9M 2018 Exchange Rates
9M 2018 EXCHANGE RATES Balance Sheet: period-end exchange rate / P&L: average exchange rate 2018 2017 Country Currency Balance Sheet P&L Balance Sheet P&L EUR EUR EUR EUR Albania EUR/ALL 126.2900 128.5953 133.7000 134.3349 Belarus EUR/BYN 2.4537 2.3977 2.3141 2.1293 Bosnia & Herzegovina EUR/BAM 1.95
Slide 43: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Current analyst recommendation split Current listings Ticker Rating Major Indices SELL Vienna Vienna Stock Exchange: VIG Standard & Poor´s: ATX 2 BUY Prague Bloomberg: VIG AV / VIG CP A+, stable outlook A
Slide 44: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region1 Continental Europe 30% Austria 28% ~70% ~30% North America 28% UK & Ireland 11% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) 1 Split of identified shares, May 2018 (Source: CMi2i) 44 APPENDIX 2: FINANCIALS VIG VIE
Slide 45: Contact Details / Financial Calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2019* Head of Investor Relations Team Leader Corporate Reporting Date Event Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 21 Mar.
Slide 46: Disclaimer
DISCLAIMER IMPORTANT NOTICE These materials do not constitute or form part, or all, of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in any jurisdiction in which such solicitation, offer or sale would be unlawful, nor shall pa
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