Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — Q1 2008 Earnings Presentation

33 slides from Vienna Insurance's earnings presentation, May 20, 2008

  1. Slide 1: VIG – sound performance despite market turmoil

    VIG – sound performance despite market turmoil 3M 2008 results - 20 May 2008

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics 2 Presenting Team Topics ƒ Martin Simhandl, CFO ƒ Strategic Update p.3 ƒ Peter Hagen, Member of the ƒ Highlights p.5 Managing Board ƒ P&L and Balance Sheet p.9 ƒ Kurt Ebner, Group Actuary in Chief ƒ Appendix p.18 ƒ Roland Gröll, Head of Group Accounting ƒ Thomas Schmee, He

  3. Slide 3: Strategic Update (I)

    Strategic Update (I) 3 ƒ VIG – Right time for life - Acquisition of Erste Bank insurance operations / Long term distribution agreement Acquisition - Creating No. 1 Insurance Group in CEE - Erste Bank’s distribution system is a perfect fit for VIG - Total consideration of € 1.45bn - Acquisition expec

  4. Slide 4: Strategic Update (II)

    Strategic Update (II) Hybrid offering 4 Issuer ƒ WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group Amount ƒ EUR 250 mn (with option to increase); to be placed primarily in Austria (plus European investors) Coupon ƒ deeply subordinated, fixed to floating Maturity / Optional ƒ Perpetual bonds (

  5. Slide 5: Financial Highlights

    Vienna Insurance Group- 3M 2008 results Financial Highlights

  6. Slide 6: 3M 2008 Highlights (I)

    3M 2008 Highlights (I) An excellent start into 2008 6 ƒ Persistent strong premium growth, in particular in CEE ƒ CEE premium share in life already at more than 30% ƒ Combined ratio down to 95.5% (from 96.4% in Q1 07) ƒ Profit before tax again growing faster than premiums ƒ More than 35% of PBT gener

  7. Slide 7: 3M 2008 Highlights (II)

    3M 2008 Highlights (II) CEE supporting growth in Q1; marked reduction of C/R 7 GWP Profit before Tax 6,912 5,882 437 5,008 321 14.5% 240 23.9% 2,018 2,311 1,752 125 101 73 2005 2006 2007 3M 06 3M 07 3M 08 2005 2006 2007 3M 06 3M 07 3M 08 IFRS IFRS Net Profit after Tax and Minorities Combined Ratio 3

  8. Slide 8: 3M 2008 Highlights (III)

    3M 2008 Highlights (III) EPS with another record high; ROE reaching 19% level 8 EPS* ROE before Tax (%)* 3.48 2.98 2.89 21.9 2.48 18.0 18.9 2.27 2.22 17.1 14.8 14.0 2005 2006 2007 3M 06 3M 07 3M 08 2005 2006 2007 3M 06 3M 07 3M 08 * annualised, pre SPO 2008 IFRS * pre SPO 2008 IFRS

  9. Slide 9: P&L and Balance Sheet Details

    Vienna Insurance Group- 3M 2008 results P&L and Balance Sheet Details

  10. Slide 10: 3M 2008 Income Statement

    3M 2008 Income Statement IFRS (€mn) 10 3M 2008 3M 2007 +/-% 1. Gross written premiums 2,311.2 2,018.4 14.5 2. Net earned premiums 1,736.8 1,464.3 18.6 1 3. Net investment income 175.6 205.3 -14.5 4. Other income 17.5 8.9 96.8 Total income 1,929.8 1,678.5 15.0 6. Expenses for claims incurred -1,359.1

  11. Slide 11: 3M 2008 Balance Sheet

    3M 2008 Balance Sheet IFRS (€mn) 11 3M 2008 YE 2007 +/- % Intangible assets 865 525 64.9 Total investments 20,099 20,171 -0.4 Unit- and index-linked investments 2,943 3,066 -4.0 Reinsurers’ share in technical provisions 1,364 1,187 15.0 Receivables 1,605 1,200 33.7 Deferred tax assets 48 34 42.5 Oth

  12. Slide 12: P&L Major Items – Gross Written Premiums

    3M 2008 P&L Major Items – Gross Written Premiums Continuing double digit premium growth (€ mn) 12 ƒ Group GWP gained 14.5% to € 2,311mn ƒ Austria: total GWP up 1.6% to reach € 1,216mn. Life up 2.2% at € 532.0mn in line with market development; P&C up 1.1% at € 75.3 602.1mn influenced by flat motor m

  13. Slide 13: Geographical Diversification Enhanced

    Geographical Diversification Enhanced GWP split by region 13 GWP by Geography 3M 06 GWP by Geography 3M 07 GWP by Geography 3M 08 Other Other Other CEE Other 3.9% 3.5% 8.5% Other CEE Other CEE 3.2% PL: 2.8% 14.7% 21.6% RO: 3.5% PL: 6.0% PL: 7.5% RO: 5.3% RO: 8.7% Slovakia Austria Austria Austria 6.7

  14. Slide 14: P&L Major Items – Expenses for Claims Incurred

    3M 2008 P&L Major Items – Expenses for Claims Incurred Loss ratio on stable level 14 ƒ Group loss ratio (net) at 63.9% (YE 2007 64.2%) ƒ Poland improving by 9.4% pts to 54.7% due to effective claims and risk management and ƒ Austrian loss ratio higher by 2.3% pts at 68.3%, benign motor pricing affec

  15. Slide 15: P&L Major Items – Operating Expenses

    3M 2008 P&L Major Items – Operating Expenses Cost ratio decreasing by 1.5% pts 15 ƒ Group cost ratio (net) decreasing by 1.5% to ƒ Cost ratio in Slovakia down by 2.9% pts in line reach 31.6% - sensible economies of scale in with YE 2007 CEE ƒ Poland showing higher cost ratio at 40.3% ƒ Austrian cost

  16. Slide 16: P&L Major Items – Net Investment Income

    3M 2008 P&L Major Items – Net Investment Income Moderate decrease due to weak financial markets (€mn) 16 Net Investment Income ƒ Decrease in Group Net Investment Income by 4.2 34.0 3.5 Other 14.5% to € 175.6mn influenced mainly by 24.1 CEE widening of credit spreads and share prices AUT 167.2 148.1

  17. Slide 17: Financial Targets

    Financial Targets Targets remain unchanged 17 VIG’s Financial Targets Comments Premium Target for 2011: > EUR 12bn ƒ Majority of GWP to come from CEE region by 2011 Profit before tax targets in € mn ƒ Acquisition expected to be earnings accretive CAGR: ~25% ~1,050 within the budgeting period ~850 ~6

  18. Slide 18: Appendix

    Vienna Insurance Group- 3M 2008 results Appendix

  19. Slide 19: P&L – Business Segments (Property & Casualty)

    3M 2008 P&L – Business Segments Property & Casualty, IFRS (€mn) 19 3M 2008 3M 2007 +/-% 1. Gross written premiums 1,382.6 1,185.3 16.6 2. Net earned premiums 841.9 667.3 26.2 3. Net investment income 23.8 33.1 -28.1 4. Other income 7.7 4.5 72.5 Total income 873.4 704.9 23.9 6. Expenses for claims in

  20. Slide 20: P&L – Business Segments (Life)

    3M 2008 P&L – Business Segments Life, IFRS (€mn) 20 3M 2008 3M 2007 +/-% 1. Gross written premiums 847.0 753.2 12.5 2. Net earned premiums 816.8 720.6 13.4 3. Net investment income 154.8 168.1 -7.9 4. Other income 9.8 4.4 121.3 Total income 981.4 893.1 9.9 6. Life benefits -758.4 -699.0 8.5 7. Opera

  21. Slide 21: P&L – Business Segments (Health)

    3M 2008 P&L – Business Segments Health, IFRS (€mn) 21 3M 2008 3M 2007 +/-% 1. Gross written premiums 81.7 79.9 2.2 2. Net earned premiums 78.0 76.4 2.1 3. Net investment income -3.0 4.2 -172.6 4. Other income 0.0 0.0 0.0 Total income 75.0 80.6 -6.9 6. Expenses for claims incurred -62.4 -63.1 -1.1 7.

  22. Slide 22: P&L - Split by Regions (I)

    3M 2008 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 22 Austria Czech Republic 3M 2008 3M 2007 +/-% 3M 2008 3M 2007 +/-% 1. Gross written premiums 1,215.8 1,196.3 1.6 359.7 312.6 15.1 2. Net earned premiums 895.7 869.7 3.0 268.3 219.7 22.2 3. Net investment income 148.1 167.2 -11.4 6.4 1

  23. Slide 23: P&L - Split by Regions (II)

    3M 2008 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 23 Slovakia Poland Romania 3M 2008 3M 2007 +/-% 3M 2008 3M 2007 +/-% 3M 2008 3M 2007 +/-% 1. Gross written premiums 161.3 141.4 14.1 174.0 121.4 43.3 200.9 106.2 89.1 2. Net earned premiums 122.6 93.9 30.6 157.4 104.3 51.0 136.4 62.8

  24. Slide 24: P&L - Split by Regions (III)

    3M 2008 P&L - Split by Regions (III) Regional segments, IFRS (€mn) 24 Other CEE Other TOTAL 3M 2008 3M 2007 +/-% 3M 2008 3M 2007 +/-% 3M 2008 3M 2007 +/-% 1. Gross written premiums 124.3 69.9 77.7 75.3 70.6 6.6 2,311.2 2,018.4 14.5 2. Net earned premiums 90.5 52.1 73.7 65.8 62.0 6.1 1,736.8 1,464.3

  25. Slide 25: 3M 2008 Results by Country

    3M 2008 Results by Country IFRS (€mn) 25 Non-Life Life Total Profit before Tax Combined Ratio 3M 2008 3M 2007 3M 2008 3M 2007 3M 2008 3M 2007 3M 2008 3M 2007 3M 2008 3M 2007 Austria 683.8 675.6 532.0 520.7 1,215.8 1,196.3 76.1 62.5 95.7% 95.7% Czech Rep. 275.8 245.0 83.9 67.6 359.7 312.6 20.6 18.3 9

  26. Slide 26: Change in Group Shareholders' Equity

    Change in Group Shareholders‘ Equity IFRS 26 1.1. - 31.03.2008 1.1. - 31.03.2007 Equity as of 1 January 2,615,563 2,283,208 Currency Changes 16,465 -4,004 Changes to consolidation 6,607 37,987 Capital Increase - - Unrealised Gains and Losses on financial -58,179 28,168 instruments available for sale

  27. Slide 27: Life Insurance Premium Split

    Life Insurance Premium Split IFRS (€mn) 27 Premiums written - direct business 3M 2008 3M 2007 +/- % Regular premiums 473.9 466.8 1.5% Single premiums 371.7 278.4 33.5% Total premiums written - direct business 845.6 745.2 13.5% thereof: Policies with profit participation 482.5 448.7 7.5% Policies wit

  28. Slide 28: YE 2007 Investment Split

    YE 2007 Investment Split Conservative investment policy paying off 28 Investment policy Rough Portfolio Outline ƒ VIG follows a conservative Affiliated Alternative Inv. Companies ~ 1% investment policy throughout ~ 5% market cycles Loans ~ 6% ƒ VIG has no US-subprime Bonds investments ~ 65% Real Est

  29. Slide 29: 3M 2008 Exchange Rates

    3M 2008 Exchange Rates National currency unit per EUR 29 3M 2008 3M 2007 Balance P&L Balance Sheet P&L Country Curr. Sheet EUR EUR EUR EUR Bulgaria EUR/BGN 1.9558 1.9558 1.9558 1.9558 Croatia EUR/HRK 7.2690 7.2852 7.4050 7.3656 Liechtenstein EUR/CHF 1.5738 1.6014 1.6247 1.6162 Poland EUR/PLN 3.5220

  30. Slide 30: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 128,000,000 30 Shareholder Structure ~ 29 % Free Float ~71 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  31. Slide 31: Shareholder Structure (II)

    Shareholder Structure (II) Total number of shares 128,000,000 31 Free Float Geographical Split ~11% ~28 % Others Austria ~21% Continental Europe ~22% North America ~18% UK & Ireland

  32. Slide 32: Contact Details

    Contact Details Investor Relations 32 Wiener Städtische Versicherung AG Vienna Insurance Group Schottenring 30, 1010 Vienna, Austria www.viennainsurancegroup.com Vienna Stock Exchange: VIG Reuters: VIGR.VI Bloomberg: VIG AV ƒ Thomas Schmee Tel. +43 (0)50 350 – 21900 thomas.schmee@vig.com ƒ Nina Higa

  33. Slide 33: Disclaimer

    Disclaimer 33 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

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