Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — FY2011 Earnings Presentation
40 slides from Vienna Insurance's earnings presentation, Mar 29, 2012
Slide 1: Record Result despite Challenging Markets
Record Result despite Challenging Markets YE 2011 Results and Embedded Value Telephone Conference Vienna, 29 March 2012
Slide 2: Presenting Team and Topics
Presenting Team and Topics Presenting Team Topics Martin Simhandl, CFO Highlights p. 3 Peter Hagen, Member of the Managing P&L and Balance Sheet p. 8 Board Embedded Value p. 21 Peter Höfinger, Member of the Managing Board Appendix p. 25 Roland Gröll, Head of Group Finance and Accounting Werner Matul
Slide 3: Highlights
Highlights Vienna Insurance Group – YE 2011 Results
Slide 4: YE 2011 Overview
YE 2011 Overview Diversification pays off HIGHLIGHTS Excellent A+ Rating of VIG with stable Outlook confirmed by Standard & Poor’s Sound capitalisation with Solvency I ratio of ~190% Double-digit growth rates in profit before taxes in major markets – Slovakia and Poland increased profits by more tha
Slide 5: YE 2011 Performance Indicators
YE 2011 Performance Indicators HIGHLIGHTS PBT up by 10.1% to € 559.0 mn; best result in Group’s history Premiums overall up 3.4%; premium growth in CEE +7.7% Group Embedded Value Combined ratio (net) in 2011 VIG – YE 11 increased to € 5.3 bn decreased considerably to Positive return on Group 96.8% a
Slide 6: YE 2011 Financial Highlights (I)
YE 2011 Financial Highlights (I) PBT increase driven by Slovakia and Poland HIGHLIGHTS GWP (€mn) Profit before Tax (€mn) +3.4% 8,884 +10.1% 559 8,593 541 7,899 8,019 508 441 2008 2009 2010 2011 2008 2009 2010 2011 Net Profit after Tax and Minorities (€mn) Combined Ratio (net, %) 409 +7.1% 407 380 34
Slide 7: YE 2011 Financial Highlights (II)
YE 2011 Financial Highlights (II) HIGHLIGHTS EPS (€)1 ROE before Tax (%) 3.32 2.87 2.65 14.3 2.40 10.5 11.1 10.0 2008 2009 2010 2011 2008 2009 2010 2011 1: net of hybrid interest 7
Slide 8: P&L and Balance Sheet Details
P&L and Balance Sheet Details Vienna Insurance Group – YE 2011 Results
Slide 9: Income Statement
YE 2011 Income Statement P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn YE 2011 YE 2010 +/-% 1. Gross premiums written 8,883.7 8,593.0 3.4 2. Net earned premiums 8,122.8 7,860.4 3.3 1 3. Financial result 931.6 1,116.4 -16.6 4. Other income 115.4 93.8 22.9 Total income 9,169.8 9,070.6 1.1 6. Expenses f
Slide 10: Balance Sheet
YE 2011 Balance Sheet P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn YE 2011 YE 2010 +/-% Intangible assets 2,382 2,104 13.2 Investments 28,085 28,160 -0.3 Unit- and index-linked investments 5,503 5,479 0.4 Reinsurers’ share in underwriting provisions 1,117 1,118 -0.1 Receivables 1,582 1,681 -5.9 Tax
Slide 11: P&L – Gross Written Premiums
YE 2011 P&L – Gross Written Premiums P&L AND BALANCE Growth with different dynamics by lines and markets (€mn) SHEET DETAILS €mn GWP Non-life GWP Life Total Austria: sound non-life growth; declining life business due to YE 2011 YE 2010 +/-% YE 2011 YE 2010 +/-% YE 2011 YE 2010 +/-% increased minimum
Slide 12: Expenses for Claims Incurred
YE 2011 – Expenses for Claims Incurred P&L AND BALANCE Claims ratio improving due to absence of NatCat events SHEET DETAILS Group claims ratio (net) down by 1.1% pts % Claims Ratio Austria and Czech Republic recorded loss ratio YE 2011 YE 2010 +/- %-pts down by 1.8% pts and 3.7% pts as a Austria 67.
Slide 13: Acquisition and Administrative Expenses
YE 2011 – Acquisition and Administrative Expenses P&L AND BALANCE Decreasing cost ratio SHEET DETAILS Group cost ratio (net) decreased by 0.5% pts % Cost Ratio Reduction of cost ratio in Austria: administration YE 2011 YE 2010 +/- %-pts expenses remained stable; increased premium Austria 26.2 28.3 -
Slide 14: P&L Major Items – Financial Result
YE 2011 P&L Major Items – Financial Result P&L AND BALANCE Increased impairments and lower income from disposals SHEET DETAILS Income P&C Life Health Total in € '000 YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 Current income 499,291 448,196 906,342 908,367 45,944 38,014 1,451,577
Slide 15: Investment Split
YE 2011 Investment Split P&L AND BALANCE Investments incl. cash and cash equivalents grow by €95mn SHEET DETAILS Investment portfolio including cash and cash equivalents € 28.6bn +0.3% € 28.7bn ~ 5% Deposits and cash ~ 6% ~ 1% Alternatives ~ 1% ~ 3% Affiliated Comp. ~ 2% ~ 12% Loans ~ 12% ~ 14% Real
Slide 16: Development of Bond Portfolio
YE 2011 Development of Bond Portfolio P&L AND BALANCE Rating upgrades in CEE improve structure SHEET DETAILS By Issuer By Rating 3% 4% 8% 9% 10% 10% 30% 26% 33% 49% 11% 11% 31% 17% 51% 54% 21% 22% YE 2010 YE 2011 YE 2010 YE 2011 1 Government Pfandbriefe/Covered Bonds AAA AA A BBB Other Financials Co
Slide 17: PIIGS – Government Bonds
PIIGS – Government Bonds P&L AND BALANCE SHEET DETAILS €mn Portugal - 1 Ireland 52 Italy 14 1 Greece 9 Spain 8 Total 83 ~70% ~70% Approximately 0.3% of total investments 1: Including impairments of about € 45 mn for Ireland and Greece 17
Slide 18: Shareholders’ Equity
YE 2011 Shareholders’ Equity P&L AND BALANCE Shareholders’ equity supports strong capitalisation SHEET DETAILS Change in Group Shareholders’ Equity (€mn) 441.9 -177.7 5,049.6 5,029.6 -56.2 -0.5 -187.6 Increase of 0.4% Equity as of YE 2010 Currency changes Changes in AFS unrealised gains Profit for t
Slide 19: Solvency I
YE 2011 Solvency I P&L AND BALANCE Sound capitalisation SHEET DETAILS Fundamentals of Solvency I Strong level of Solvency I ratio due to prudent business model of the company YE 2011 Due to rising importance of SAP software Solvency I Ratio ~190% VIG acquired majority share in Central Point - the co
Slide 20: Development of PBT and Dividends
Development of PBT and Dividends Dividend Development of Dividend € 256.0mn € 140.8mn € 128.0mn € 115.5mn € 115.2mn VIG‘s Path of Profitability (€mn) € 559 € 0.90 € 1.10 € 540 € 1.10 € 1.00 € 508 € 0.90 € 437 € 441 € 1.10 YE 2007 YE 2008 YE 2009 * YE 2010 YE 2011e * One-off bonus dividend paid out i
Slide 21: Embedded Value
EMBEDDED VALUE Embedded Value Vienna Insurance Group – YE 2011 results
Slide 22: Group Embedded Value 2011
Group Embedded Value 2011 Development (€mn) EMBEDDED VALUE 195 5,284 124 5,187 -128 5,063 -86 116 4,973 GEV 2010 Restatement GEV 2010 Dividends FX Effects GEV 2010 L&H Return P&C Return GEV 2011 reported changes restated and others adjusted Highlights GEV of € 5,284 mn as at December 31, 2011 Positi
Slide 23: Group Embedded Value 2011 – Life & Health Austria/Germany
Group Embedded Value 2011 MCEV of Life & Health Business in Austria / Germany (€mn) EMBEDDED VALUE 155 -278 61 3 34 1,370 1,346 Operating Economic MCEV 2010 Value of New Roll forward Assumption Operating Investment MCEV 2011 adjusted Business 2011 changes variance income and others Highlights Operat
Slide 24: Group Embedded Value 2011 – Life & Health CEE
Group Embedded Value 2011 MCEV of Life & Health Business in CEE (€mn) EMBEDDED VALUE 32 -25 162 -11 -17 1,546 1,406 Operating Economic MCEV 2010 Value of New Roll forward Assumption Operating Investment MCEV 2011 adjusted Business 2011 changes variance income and others Highlights Operating return o
Slide 25: Appendix
Appendix Vienna Insurance Group – YE 2011 Results
Slide 26: P&L – Business Segments: Property & Casualty
YE 2011 P&L – Business Segments Property & Casualty, IFRS (€mn) APPENDIX €mn YE 2011 YE 2010 +/-% 1. Gross premiums written 4,579.3 4,350.0 5.3 2. Net earned premiums 3,844.7 3,644.3 5.5 3. Financial result 202.0 178.2 13.4 4. Other income 72.1 61.7 16.9 Total income 4,118.9 3,884.2 6.0 6. Expenses
Slide 27: P&L – Business Segments: Life
YE 2011 P&L – Business Segments Life, IFRS (€mn) APPENDIX €mn YE 2011 YE 2010 +/-% 1. Gross premiums written 3,944.2 3,904.8 1.0 2. Net earned premiums 3,916.1 3,875.8 1.0 3. Financial result 690.3 919.5 -24.9 4. Other income 43.2 31.4 37.5 Total income 4,649.7 4,826.7 -3.7 6. Expenses for claims an
Slide 28: P&L – Business Segments: Health
YE 2011 P&L – Business Segments Health, IFRS (€mn) APPENDIX €mn YE 2011 YE 2010 +/-% 1. Gross premiums written 360.2 338.2 6.5 2. Net earned premiums 362.0 340.3 6.4 3. Financial result 39.2 18.7 >100 4. Other income 0.0 0.7 -96.4 Total income 401.2 359.7 11.5 6. Expenses for claims and insurance be
Slide 29: P&L – Split by Regions (I)
YE 2011 P&L – Split by Regions (I) Regional segments, IFRS (€mn) APPENDIX €mn Austria Czech Republic YE 2011 YE 2010 +/-% YE 2011 YE 2010 +/-% 1. Gross premiums written 4,042.2 4,041.1 0.0 1,848.9 1,756.5 5.3 2. Net earned premiums 3,634.6 3,701.9 -1.8 1,722.3 1,615.6 6.6 3. Financial result 621.4 7
Slide 30: P&L – Split by Regions (II)
YE 2011 P&L – Split by Regions (II) Regional segments, IFRS (€mn) APPENDIX €mn Slovakia Poland Romania YE 2011 YE 2010 +/-% YE 2011 YE 2010 +/-% YE 2011 YE 2010 +/-% 1. Gross premiums written 678.8 647.9 4.8 954.1 747.7 27.6 502.9 528.1 -4.8 2. Net earned premiums 617.4 594.4 3.9 889.1 682.9 30.2 49
Slide 31: P&L – Split by Regions (III)
YE 2011 P&L – Split by Regions (III) Regional segments, IFRS (€mn) APPENDIX €mn Remaining TOTAL YE 2011 YE 2010 +/-% YE 2011 YE 2010 +/-% 1. Gross premiums written 856.8 871.7 -1.7 8,883.7 8,593.0 3.4 2. Net earned premiums 768.4 785.0 -2.1 8,122.8 7,860.4 3.3 3. Financial result 70.6 65.4 7.9 931.6
Slide 32: Results by Country
YE 2011 Results by Country IFRS (€mn) APPENDIX €mn GWP Non-Life Life GWP GWP Total Profit before Taxes Net Combined Ratio YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 Austria 2,101.5 1,894.4 1,940.8 2,146.7 4,042.2 4,041.1 291.6 250.9 93.2% 97.2% Czech Rep. 999.4 1
Slide 33: Change in Group Shareholders’ Equity
Change in Group Shareholders’ Equity IFRS (€ ‘000) APPENDIX 1.1. - 31.12.2011 1.1. - 31.12.2010 Equity as of 1 January 5,029,647 4,628,573 Exchange rate changes -56,184 13,721 Changes in scope of consolidation -517 103,341 Capital increase - - Unrealised gains and losses from -187,547 31,344 financi
Slide 34: Life Insurance Premium Split
Life Insurance Premium Split IFRS (€mn) APPENDIX Premiums written - direct business YE 2011 YE 2010 +/- % Regular premiums 2,290.0 2,217.3 3.3% Single premiums 1,641.5 1,673.4 -1.9% Total premiums written - direct business 3,931.5 3,890.6 1.1% thereof: Policies with profit participation 2,000.1 1,76
Slide 35: Q4 2011 Income Statement
Q4 2011 Income Statement IFRS (€mn) APPENDIX €mn Q4 2011 Q4 2010 +/-% 1. Gross premiums written 2,081.5 2,054.7 1.3 2. Net earned premiums 2,045.8 1,941.0 5.4 3. Financial result 133.0 220.7 -39.7 4. Other income 41.8 -15.1 n/a Total income 2,220.7 2,146.6 3.5 6. Expenses for claims and insurance be
Slide 36: Exchange Rates
YE 2011 Exchange Rates APPENDIX YE 2011 YE 2010 Balance Balance Country Curr. P & L EUR P & L EUR Sheet EUR Sheet EUR Bulgaria EUR/BGN 1.9558 1.9558 1.9558 1.9558 Croatia EUR/HRK 7.4390 7.5370 7.3830 7.2891 Estonia EUR/EEK 1.0000 1.0000 15.6466 15.6466 Liechtenstein EUR/CHF 1.2326 1.2156 1.2504 1.38
Slide 37: Shareholder Structure (I)
Shareholder Structure (I) Total number of shares 128,000,000 APPENDIX Wiener Städtische Wechselseitiger Versicherungsverein - Vermögensverwaltung – Vienna Insurance Group ~70 % Free Float ~ 30 % 37
Slide 38: Shareholder Structure (II)
Shareholder Structure (II) Free float split APPENDIX Austria ~22 % Others ~4% North America ~25% Continental Europe ~26% UK & Ireland ~23% 38
Slide 39: VIG Share & Contact Details
VIG Share & Contact Details Investor Relations APPENDIX VIG Share Investor Relations Number of common shares Vienna Insurance Group 128mn Schottenring 30, 1010 Vienna E-Mail: investor.relations@vig.com ISIN AT0000908504 www.vig.com/ir Listing Nina Higatzberger (Head of IR) Tel. +43 (0)50 350 - 21920
Slide 40: Disclaimer
Disclaimer APPENDIX 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
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