Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — Baader Investment Conference 2018

30 slides from Vienna Insurance's conference presentation, Sep 24, 2018

  1. Slide 1: Investor Presentation, Baader Investment Conference

    VIENNA INSURANCE GROUP Investor Presentation Baader Investment Conference Munich, 24 September 2018

  2. Slide 2: VIG – The Leading Insurance Group in Austria & CEE

    VIG – THE LEADING INSURANCE GROUP IN AUSTRIA & CEE Close to Around Represented in 200 years of experience 50 Group companies 25 markets More than More than About 50% of premiums coming from CEE 25,000 employees 55% of profits coming from CEE Since Current market capitalization S&P Rating 1994 contin

  3. Slide 3: Management Principles

    MANAGEMENT PRINCIPLES 1 Local entrepreneurship  Knowledge of local needs and markets  Decentralised structures and efficient decision-making procedures 2 Multi-brand strategy  Around 50 brands in 25 countries  Utilisation of established local brands 3 Multi-channel distribution  Various distrib

  4. Slide 4: VIG Is Best Positioned to Leverage on Positive Market Development in CEE

    VIG IS BEST POSITIONED TO LEVERAGE ON THE POSITIVE MARKET DEVELOPMENT IN CEE Excellent market shares throughout the region 1 2018: 25 markets Client/talent base: Country Market position Market share total 180mn people Austria 1 1 1 24.4% 10 Czech Rep. 1 1 1 32.6% 4 Slovakia 1 2 1 33.4% Poland 4 4 5

  5. Slide 5: Positive Economic Environment and Strong Growth Potential Going Forward

    POSITIVE ECONOMIC ENVIRONMENT AND STRONG GROWTH POTENTIAL GOING FORWARD Annual insurance spending shows significant growth potential in the CEE region Real GDP growth p.a. 2018-2022 Insurance density 2016, in EUR (premiums per capita) Austria 1.5 Austria 1,955.0 Czech Republic 2.3 Czech Republic 504

  6. Slide 6: Agenda 2020: Creating Added Value by Increasing Operating Performance

    AGENDA 2020: CREATING ADDED VALUE BY INCREASING OPERATING PERFORMANCE Medium-term target: combined ratio sustainably at level of 95% Optimisation of business model Ongoing activities  Shared Services Mergers in AT, CZ, SK, HU and HR Creating cost benefits by merging back-office VIG merged the forme

  7. Slide 7: Agenda 2020: Specific Initiatives to Contribute to Future Success

    AGENDA 2020: SPECIFIC INITIATIVES TO CONTRIBUTE TO FUTURE SUCCESS Main focus is on digital transformation of the Group Ensuring future growth Ongoing activities Focus on health insurance and expansion of reinsurance activities  Use of growth potentials Health premiums in the target markets of Polan

  8. Slide 8: Mutual Distribution Agreement with Erste Group

    MUTUAL DISTRIBUTION AGREEMENT WITH ERSTE GROUP Extension of strategic partnership ahead of schedule 2008: Start of mutual Distribution Agreement following CZ the acquisition of the insurance operations of Erste SK AT Extension & Intensification of existing agreement until 2033 HU RO HR Respective co

  9. Slide 9: Half-Year Results 2018

    STRATEGY & AGENDA 2020 HALF-YEAR RESULTS 2018 APPENDIX 9 VIG VIENNA INSURANCE GROUP

  10. Slide 10: Results Half-Year 2018 - Highlights

    RESULTS HALF-YEAR 2018 - HIGHLIGHTS Strong operating performance in the first half-year of 2018 despite impairment of goodwill in Romania Gross written premium Profit before taxes € 5,150.3mn € 232.7mn GWP up 3.6% compared to 6M 2017 PBT increased by 5.5%  Current premium business: +5.7%  CEE prof

  11. Slide 11: Gross Written Premiums of €5.2bn Up 3.6%

    GROSS WRITTEN PREMIUMS OF €5.2bn UP 3.6% Overview by segments Gross written premiums (€mn; y-o-y chg.)  Premium growth in all segments  Adjusted for life single-premium business, overall premium growth of 5.7% +0.1%  CZ: Premium growth driven by life regular premium business (+€27mn) and other +7

  12. Slide 12: Excellent Premium Development, Apart from Planned Reduction of Life Single Premium

    EXCELLENT PREMIUM DEVELOPMENT, APART FROM ONGOING PLANNED REDUCTION OF 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 +3.6% 6M 2017 717 555 2,246 5,150 +7.9% +9.0% +6.3% 4,972 773 MTPL 717 6

  13. Slide 13: Group Profit Before Taxes of €232.7mn Up 5.5%

    GROUP PROFIT BEFORE TAXES OF €232.7mn UP 5.5% Overview by segments Result before taxes (€mn; y-o-y change)  CZ: Profit growth driven by CoR improvement and better financial result  RO: impairment test during the period triggered by changing market environment; review of planning data and conservat

  14. Slide 14: Solvency Ratio of 222% as of 30 June 2018

    SOLVENCY RATIO OF 222% AS OF 30 JUNE 2018 Calculation based on Partial Internal Model (PIM) in €mn 222% 220% 6M 2018  Solvency ratio of Vienna Insurance Group at 222% YE 2017  Results include volatility adjustment 7,764 7,659  Solvency target range 170% - 230% 3,525 3,452 Solvency II SCR Solvency

  15. Slide 15: Outlook 2020 and Targets for 2018 Unchanged

    OUTLOOK 2020 AND TARGETS FOR 2018 UNCHANGED Despite a more cautious stance towards Romania, VIG maintains its guidance Gross written premium Profit before taxes Combined Ratio > € 10bn € 500mn - € 520mn 95% Based on the positive macroeconomic In line with continuous premium growth, VIG VIG will furt

  16. Slide 16: Appendix

    STRATEGY & AGENDA 2020 HALF-YEAR RESULTS 2018 APPENDIX 16 VIG VIENNA INSURANCE GROUP

  17. Slide 17: Managing Board as of 1 July 2018

    MANAGING BOARD AS OF 1 JULY 2018 Fotos: Ian Ehm, Thomas Pitterle Elisabeth Stadler, CEO Franz Fuchs Judit Havasi Liane Hirner, CFO Peter Höfinger Peter Thirring Mgmt. of the VIG Group, Performance Planning & Controlling Finance & Accounting Corporate and Large Group external income General Secretari

  18. Slide 18: 6M 2018 Key Financials

    6M 2018 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and non-controlling interest (€mn) ROE after tax and minorities (%) 288 298 7.3 7.2 7.2 6.4 147 137 2016 2017 6M 17 6M 18 2016 2017 6M 17 6M 18 EPS1 (€) Book value per share (€) 2.23 2.20 35.66 37.75 36.04 36.59 2.16 2.04

  19. Slide 19: Dividend per Share at €0.90 for Business Year 2017

    DIVIDEND PER SHARE AT €0.90 FOR THE BUSINESS YEAR 2017 Earnings per share up 3.2%; payout ratio increased to 38.7% EPS (€) Dividend per share (€) Payout ratio (%) 2.16 2.23 38.7 UNCHANGED DIVIDEND POLICY 35.6  Distribution of at least 30% of Group net profits after minorities 0.90 0.80  Dividend p

  20. Slide 20: 6M 2018 Income Statement

    6M 2018 INCOME STATEMENT Strong operating performance despite impairment in Romania GWP development (€mn) €mn 6M 2018 6M 2017 +/- % Gross premiums written 5,150.3 4,972.4 3.6  Premiums increased by 3.6%; +3.6% adjusted for life single premium Net earned premiums 4,354.9 4,219.0 3.2 5,150 Financial

  21. Slide 21: 6M 2018 Balance Sheet

    6M 2018 BALANCE SHEET IFRS (€mn) €mn 30.06.2018 31.12.2017 +/- % Intangible assets 1,895 1,971 -3.8 Investments 36,193 35,933 0.7 Unit- and index-linked investments 8,742 9,061 -3.5 Reinsurers’ share in underwriting provisions 1,134 1,066 6.3 Receivables 1,666 1,476 12.9 Tax receivables and advance

  22. Slide 22: Investment Split and Bond Portfolio Overview

    INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Bond portfolio split by rating expected to change in Q3 due to rating upgrade of CZ 6M 2018: Total €37.4bn Bond portfolio by rating1 4.3% 1.1% 6.2% AAA AA A BBB Other 6M 2018 10% 23% 46% 16% 5% 6.7% 12M 2017 10% 22% 45% 17% 5% 5.8% 66.1% Bond portfolio by

  23. Slide 23: 6M 2018 Premiums by Business Lines and Country (I)

    6M 2018 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- % Austria 188.1 183.0 2.8 162.5 157.9 2.9 822.1 809.9 1.5 Czech Republic 149.4 141.8 5.3 123.5 116.3 6.2 264.4 242.7 8.9 Slovakia 79.5 75.7 5.0 55.0

  24. Slide 24: 6M 2018 Premiums by Business Lines and Country (II)

    6M 2018 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- % Austria 643.5 647.8 -0.7 144.3 166.6 -13.4 209.6 201.7 3.9 Czech Republic 305.8 279.0 9.6 31.6 35.9 -11.9 6.9 6.5 5.8 Slovakia 85.5 83.4 2.

  25. Slide 25: 6M 2018 Country Overview GWP / PBT / Combined Ratio

    6M 2018 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- %p Austria 2,170.0 2,167.0 0.1 76.7 77.5 -1.1 95.3% 95.8% -0.5 Czech Republic 881.7 822.2 7.2 84.9 76.6 10.8 94.6% 96.5% -1.

  26. Slide 26: 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

  27. Slide 27: 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) 27 APPENDIX VIG VIENNA INSURANCE

  28. Slide 28: VIG VIENNA INSURANCE GROUP

    28 APPENDIX VIG VIENNA INSURANCE GROUP

  29. Slide 29: Contact Details / Financial Calendar

    CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2018/2019* Head of Investor Relations Team Leader Corporate Reporting Date Event Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 28

  30. Slide 30: 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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