Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — FY2020 Earnings Presentation
47 slides from Vienna Insurance's earnings presentation, Apr 7, 2021
Slide 1: Investor Presentation: Preliminary full year results 2020
VIENNA INSURANCE GROUP Investor Presentation Preliminary full year results 2020
Slide 2: We are the leading insurance group in Austria & CEE
WE ARE THE LEADING INSURANCE GROUP IN AUSTRIA & CEE Represented in More than 50 group companies 30 25,000 markets employees Solvency Ratio 2020 More than S&P Rating 22 million A+ 238% including transitionals (AT) and customers with stable outlook based on Partial Internal Model Since Market capitali
Slide 3: Strong business profile and successful strategy
STRONG BUSINESS PROFILE AND SUCCESSFUL STRATEGY Well diversified M&A - based on Five-pillar Strong balance Numerous portfolio over Proven strong footprint, sustainability sheet and initiatives to drive countries and business VIG follows strategy: prudent profitability and Core business lines of mode
Slide 4: Successful track-record of M&A activities
SUCCESSFUL TRACK-RECORD OF M&A ACTIVITIES From a local player to the market in leader in CEE PL HU RO TR CEE entry Expansion Expansion Strengthening positions AEGON-Deal 1990-1995 1996-1999 1999-2008 and group profile Signed in November 2020 2009 onwards ▪ Early mover in CEE ▪ Entries into the Hunga
Slide 5: Aegon CEE transaction
AEGON CEE TRANSACTION Delivering on ▪ Announced transaction is in line with VIG’s strategy of building further scale in CEE 1 strategy ▪ Confirms VIG’s #1 position in CEE ▪ Acquisition of Aegon’s non-life and life insurance companies as well as pension funds, and asset management in Hungary, Poland,
Slide 6: Excellent market positions in Central- and Eastern Europe
EXCELLENT MARKET POSITIONS IN CENTRAL- AND EASTERN EUROPE VIG top player in CEE Close to our overall more than 22mn customers Country Market position with Aegon Market share* 1 Austria 1 1 1 24% Czech Rep. 1 2 1 31% Slovakia 1 2 1 30% 4 Poland 4 4 5 4 9% Romania 1 2 2 1 20% 1 1 Baltics 1 1 3 25% 1 1
Slide 7: Long-term growth potential
LONG-TERM GROWTH POTENTIAL Annual insurance spending shows growth potential in Central and Eastern Europe Insurance density 2019, in EUR (premiums per capita) 1,967 Ø EU-15: ~€3,009 Ø CEE-VIG: ~€247 1,211 576 417 374 373 365 344 343 292 213 151 120 117 104 83 78 63 50 50 50 43 20 North Macedonia Tur
Slide 8: CSR: key initiatives and accomplishments 2020
CSR: KEY INITIATIVES AND ACCOMPLISHMENTS 2020 ▪ Signatory of UN Global Compact ▪ VIG is listed in international sustainability index FTSE4Good and the Austrian VÖNIX ▪ Annual CSR meetings to promote best practise sharing and the exchange of individual Group initiatives Core business Customers Employ
Slide 9: Outlook 2021
OUTLOOK 2021 End of pandemic not yet foreseeable – global macroeconomic uncertainty remains high Targets (excluding Aegon CEE) Gross written Profit before Combined premium taxes Ratio at level of 2020 €450mn – €500mn sustainable at ~95% Outlook is subject to overall economic environment and to furth
Slide 10: Strategy & Outlook / Results 2020 / Segments / Appendix
STRATEGY & OUTLOOK RESULTS 2020 SEGMENTS APPENDIX Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards (IFRS). Rounding differences may occur when rounded amounts or percentages
Slide 11: Results highlights
RESULTS HIGHLIGHTS Solid operative business performance Gross written premiums Profit before taxes Combined Ratio € 10.4bn € 345.9mn 95.0% GWP up by 0.3% compared to 2019 PBT decreased by 33.7% Down from 95.4% in 2019 ▪ Austria, Poland, Romania and VIG Re ▪ Main driver is declining financial result
Slide 12: Main market developments
Baltic MAIN MARKET DEVELOPMENTS states No. of companies: 3 Overview 2020 Employees: 1,905 Market share: ~25% GWP: €493mn (-1.5%) Czech Republic PBT: €9.5mn (+24.1%) CoR: 97.2% (-0.4%p) No. of companies: 2* EE Employees: 4,925 Market share: ~31% Poland LV GWP: €1,732mn (-0.8%) PBT: €192.1mn (+11.4%)
Slide 13: Agenda 2020 accomplishments 2016-2020
AGENDA 2020 Accomplishments 2016-2020 Ensuring future growth Optimisation of business model Use of growth potentials Digitalisation Anti-Fraud-Management Health insurance ▪ ~180 ongoing digitalisation projects ▪ Savings in claims payments of >3% 122% premium increase in the 5 key countries BG, PL, ▪
Slide 14: Profit development impacted by financial result decrease
PROFIT DEVELOPMENT IMPACTED BY FINANCIAL RESULT DECREASE 2020 Income statement €mn 2020 2019 +/- % Gross premiums written 10,428.5 10,399.4 0.3 ▪ Premium growth driven by other property (+€219.9mn) and health (+€9.7mn) Net earned premiums 9,336.6 9,317.9 0.2 Financial result* 596.3 1,010.8 -41.0 ▪ F
Slide 15: 2020 balance sheet
2020 BALANCE SHEET IFRS (€mn) €mn 31.12.2020 31.12.2019 +/- % Intangible assets (incl. Right-of-Use Assets) 1,918 2,137 -10.2 Investments 34,901 34,456 1.3 Unit- and index-linked investments 7,968 8,620 -7.6 Reinsurers’ share in underwriting provisions 1,396 1,283 8.8 Receivables 1,699 1,717 -1.1 Ta
Slide 16: Equity development
EQUITY DEVELOPMENT Increase in shareholders’ equity by ~2% despite adverse currency effects Change in consolidated Shareholders’ Equity (€mn) +2% 129 243 -110 5,286 -155 -12 5,191 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 2019 the period changes gains and losses paymen
Slide 17: Overall premium growth of 0.3%
OVERALL PREMIUM GROWTH OF 0.3% Overview by segments Gross written premiums (€mn; y-o-y change) ▪ Top line up by €29.1mn to €10.4bn supported by strong start into the year 2020 ▪ Negative currency effects in CZ and HU: adjusted for FX, premium growth of 2.2% in CZ and 7.1% in HU ▪ Premium decreases i
Slide 18: Increased other property, health and casco business
INCREASED OTHER PROPERTY, HEALTH AND CASCO BUSINESS Gross written premiums by lines of business (€mn; y-o-y change); incl. Central Functions MTPL Casco Other property Total premiums +0.3% 2019 1,507 1,279 4,659 10,399 10,428 -0.1% +0.8% +4.7% MTPL 1,507 1,507 2020 1,507 1,289 4,879 1,289 Casco 1,279
Slide 19: Group profit before taxes of €345.9mn down by 33.7%
GROUP PROFIT BEFORE TAXES OF €345.9MN DOWN BY 33.7% Declining financial result and consolidation change of non-profit housing societies in 2019 Result before taxes (€mn; y-o-y change) ▪ Goodwill impairments 2020 in Bulgaria (€59.8mn), Georgia (€12.5mn) and Croatia (Segment: Remaining CEE - €45.0mn);
Slide 20: Combined ratio (P&C) at 95.0%
COMBINED RATIO (P&C) AT 95.0% CoR improvements in all market segments, except Poland P&C Combined Ratio development Overview by segments (y-o-y development net, %) ▪ Constant decrease of claims ratio supported by Agenda 2020 +1.9%p -1.9%p -0.4%p -0.7%p -1.2%p -8.2%p initiatives and better claims act
Slide 21: Investment split and bond portfolio overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW No substantial changes to investment strategy 2020: Total €36.6bn Bond portfolio by rating1 in % 4.2% 1.5% 7.5% AAA AA A BBB Other 2020 9.0 30.0 35.4 21.6 4.0 7.0% 2019 9.0 31.0 36.8 19.1 4.1 7.1% 72.7% Bond portfolio by issuer in % 2020 52.4 6.5 17.3 23.
Slide 22: Financial result
FINANCIAL RESULT Consolidation change of housing societies and COVID-19 related impacts in EUR ‘000 2020 2019 +/- % Current income 953,928 1,216,582 -21.6 ▪ Change of consolidation method of non-profit housing societies in Income from appreciations 20,706 34,892 -40.7 2019 affects current income, de
Slide 23: 2020 key financials
2020 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and ROE before taxes and non-controlling interest (€mn) non-controlling interest (%) 331 10.6 269 8.9 232 7.9 2018 2019 2020 2018 2019 2020 Earnings per share (€) Book value per share2 (€) 2.59 32.64 33.67 33.36 2.04 1.81 201
Slide 24: Segments
STRATEGY & OUTLOOK RESULTS 2020 SEGMENTS APPENDIX Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards (IFRS). Rounding differences may occur when rounded amounts or percentages
Slide 25: Austria
AUSTRIA PBT decrease driven by lower financial result GWP development (€mn) €mn 2020 2019 +/- % +2.2% Gross premiums written 4,030.7 3,943.3 2.2 ▪ Premium growth of €87.4mn driven by Net earned premiums 3,275.6 3,226.2 1.5 other property (+€57.9mn); life regular 3,943 4,031 Financial result* 505.4 7
Slide 26: Czech Republic
CZECH REPUBLIC Positive developments in non-life and life with double-digit profit growth GWP development (€mn) €mn 2020 2019 +/- % -0.8% Gross premiums written 1,732.4 1,745.8 -0.8 ▪ Currency-related decline in premiums; 1,746 Net earned premiums 1,295.5 1,312.8 -1.3 +2.2% FX adjusted 1,732 Financi
Slide 27: Slovakia
SLOVAKIA Favourable development in non-life GWP development (€mn) €mn 2020 2019 +/- % -8.7% Gross premiums written 729.5 798.9 -8.7 ▪ Premium declines (-€69.4mn) mainly 799 Net earned premiums 597.3 671.6 -11.1 driven by life Financial result 36.4 49.6 -26.5 730 ▪ Result before taxes up by €2.5mn MT
Slide 28: Poland
POLAND One-off effects impacting results GWP development (€mn) €mn 2020 2019 +/- % +5.7% Gross premiums written 1,196.2 1,132.0 5.7 ▪ Premium growth of €64.2mn driven 1,196 Net earned premiums 926.6 886.5 4.5 mainly by other property (+€35.4mn) 1,132 Financial result 36.1 30.8 17.5 and MTPL (+€18.7m
Slide 29: Romania
ROMANIA Solid business performance in 2020; last year impacted by entire goodwill impairment of €108.8mn GWP development (€mn) €mn 2020 2019 +/- % +5.5% Gross premiums written 493.8 468.2 5.5 ▪ Sound premium growth of €25.6mn 494 Net earned premiums 375.9 346.9 8.4 coming from casco (+€18.6mn), othe
Slide 30: Baltic states
BALTIC STATES Stable development in difficult market environment GWP development (€mn) €mn 2020 2019 +/- % -1.5% Gross premiums written 492.9 500.3 -1.5 ▪ Slight premium decline of €7.4mn; 500 Net earned premiums 393.3 385.2 2.1 double-digit growth rates in life and 493 Financial result 9.4 11.4 -17
Slide 31: Hungary
HUNGARY Apart from adverse currency effects, strong business development in 2020 GWP development (€mn) €mn 2020 2019 +/- % -0.6% Gross premiums written 287.7 289.5 -0.6 ▪ Currency-related decline in premiums; 290 Net earned premiums 223.6 219.6 1.8 +7.1% FX adjusted 288 Financial result 3.3 4.9 -31.
Slide 32: Bulgaria
BULGARIA Goodwill impairment in Q2 2020 GWP development (€mn) €mn 2020 2019 +/- % -10.8% Gross premiums written 199.6 223.9 -10.8 ▪ Premium decrease of €24.3mn mainly 224 Net earned premiums 145.3 137.7 5.6 driven by health (-€24.8mn) Financial result 12.3 11.7 5.0 MTPL 34 200 Other income 5.0 1.1 >
Slide 33: Turkey/Georgia
TURKEY/GEORGIA Solid performance adjusted for goodwill impairment in Georgia in Q2 2020 GWP development (€mn) €mn 2020 2019 +/- % +7.1% Gross premiums written 251.7 234.9 7.1 ▪ Premiums up by €16.8mn with double- 252 Net earned premiums 113.0 112.4 0.6 digit growth rates in other property and 235 Fi
Slide 34: Remaining CEE
REMAINING CEE Profit development impacted by full goodwill impairment in Croatia in Q2 2020 GWP development (€mn) €mn 2020 2019 +/- % -1.6% Gross premiums written 439.6 446.9 -1.6 ▪ Remaining CEE: Albania (incl. Kosovo), 447 Net earned premiums 318.6 328.8 -3.1 Bosnia-Herzegovina, Croatia, Moldova,
Slide 35: Other markets
OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 2020 2019 +/- % -26.4% Gross premiums written 280.0 380.4 -26.4 ▪ Premiums down by €100.4mn due to 380 Net earned premiums 230.9 332.3 -30.5 negative development in the life single Financial result 17.2 16.6 3.6 premium business in Li
Slide 36: Central functions
CENTRAL FUNCTIONS Lower financial result related to the consolidation change of the Austrian housing societies GWP development (€mn) €mn 2020 2019 +/- % +7.0% Gross premiums written 1,736.5 1,623.5 7.0 ▪ Central Functions include VIG Holding, 1,737 Net earned premiums 1,425.7 1,351.5 5.5 VIG Re, Wie
Slide 37: Appendix
STRATEGY & OUTLOOK RESULTS 2020 SEGMENTS APPENDIX Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards (IFRS). Rounding differences may occur when rounded amounts or percentages
Slide 38: Managing Board of Vienna Insurance Group
MANAGING BOARD OF VIENNA INSURANCE GROUP As of 1 January 2021 Elisabeth Stadler, CEO Liane Hirner, CFO Peter Höfinger Gerhard Lahner Gabor Lehel Hartwig Löger Harald Riener Peter Thirring Credit: Ian Ehm 38 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 39: S&P rating affirmed on announced acquisition of Aegon CEE
S&P RATING AFFIRMED ON ANNOUNCED ACQUISITION OF AEGON CEE VIG remains best-rated company in the ATX Financial Risk Profile: Business Risk Profile: Very Strong Strong ▪ “VIG's prudent underwriting standards and ▪ “Market leading position in Austria and the Central and Eastern Europe (CEE) region“” ea
Slide 40: 2020 premiums by business lines and country (I)
2020 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 2020 2019 +/- % 2020 2019 +/- % 2020 2019 +/- % Austria 324,1 319,4 1,5 302,8 295,3 2,6 1 442,4 1 384,5 4,2 Czech Republic 311,9 305,6 2,0 244,3 246,6 -1,0 492,4 498,5 -1,2 Slovakia 150,3 152,9 -1,7 105,6 106,3 -0,6
Slide 41: 2020 premiums by business lines and country (II)
2020 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 2020 2019 +/- % 2020 2019 +/- % 2020 2019 +/- % Austria 1 215,8 1 238,8 -1,9 293,7 271,9 8,0 451,9 433,4 4,3 Czech Republic 630,9 633,7 -0,4 34,7 44,5 -22,1 18,3 16,8 9,2 Slovakia 169,0 188,4 -10,3 177,2 226,
Slide 42: 2020 country overview GWP / PBT / combined ratio
2020 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net (in %) 2020 2019 +/- % 2020 2019 +/- % 2020 2019 +/- %p Austria 4 030,7 3 943,3 2,2 178.7 207.3 -13.8 92.7% 93.5% -0.7 Czech Republic 1 732,4 1 745,8 -0,8 192.1 172.4 11.4 90.7% 92.0% -1.2 Sl
Slide 43: VIG share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (9 March 2021) Current listings Ticker Rating Major Indices SELL Vienna ▪ Vienna Stock Exchange: VIG Standard & Poor’s: ATX 1 BUY Prague ▪ Bloomberg: VIG AV / VIG CP A+, stable outlook
Slide 44: VIG share (II)
VIG SHARE (II) Shareholder structure Free float split by region* North America 35% Continental Europe 25% ~72% ~28% Austria 24% UK & Ireland 13% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) * Split of identified shares, May 2020 (Source: Investor Update) 44 APPENDIX VIG VIENNA
Slide 45: Appendix
45 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 46: Contact details / financial calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2021* Phone: +43 (0)50 390 – 21920 Phone: +43 (0) 50 390 – 21151 Date Event nina.higatzberger@vig.com sylvia.machherndl@vig.com 09 Mar. 20
Slide 47: 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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