Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — FY2023 Earnings Presentation
40 slides from Vienna Insurance's earnings presentation, Mar 12, 2024
Slide 1: 2023 Preliminary Results Presentation
2023 Preliminary Results Presentation Vienna, 12 March 2024
Slide 2: Agenda and Presenters
HIGHLIGHTS PRESENTERS FINANCIALS Hartwig LÖGER, CEO Peter HÖFINGER, Deputy CEO OUTLOOK Liane HIRNER, CFRO SEGMENTS APPENDIX Please note that rounding differences may occur Comparative figures for 12M 2022 restated due to IFRS 17/9 2 VIG VIENNA INSURANCE GROUP
Slide 3: Strong Key Performance Indicators of VIG
STRONG KEY PERFORMANCE INDICATORS OF VIG Solid results and proof of resilience again in 2023 Insurance service revenue Profit before taxes Net Combined Ratio (P&C) € 10,921.8mn € 772.7mn 92.6% ▪ Revenue up by 12.2% ▪ Significant PBT increase by 31.9% ▪ Net COR improved by 0.2pp ▪ 12M 2022: € 9,737.6
Slide 4: Dividend Proposal of € 1.40 per Share
DIVIDEND PROPOSAL OF € 1.40 PER SHARE Attractive dividend yield in line with the industry 2023 2022 2021 2020 Earnings per New dividend policy € 4.31 € 3.632 € 2.94 € 1.81 share ▪ Minimum dividend set at the previous year’s level Dividend per based on capital strength of the Group and to € 1.401 € 1
Slide 5: Achievements in 2023
ACHIEVEMENTS IN 2023 Sustained development in the VIG 25 Strategic Programme VIG 25 ▪ Customer Experience (CX) Competence Centre for VIG established and CX measurement approach for annual measurement defined ▪ VIG launched cashback system for responsible driving in the Czech Republic as part of its
Slide 6: Successful Partnership with Erste Group
SUCCESSFUL PARTNERSHIP WITH ERSTE GROUP Strong double-digit new business growth Non-life ▪ Total gross written premium 2023 stable at € 1.35bn 21.2% ▪ Growth in non-life and life regular premium business fully offsets decrease in life single premium business Total ▪ Positive development of gross wri
Slide 7: CO3: Communication | Collaboration | Cooperation
CO3: COMMUNICATION | COLLABORATION | COOPERATION New strategic focus driven by a dedicated Group function ▪ Collaboration fosters the exchange of know-how and expertise on all levels across all entities and countries ▪ Cooperation focuses on identifying synergies between VIG companies being active i
Slide 8: Financials
HIGHLIGHTS FINANCIALS OUTLOOK SEGMENTS APPENDIX Please note that rounding differences may occur Comparative figures for 12M 2022 restated due to IFRS 17/9 8 VIG VIENNA INSURANCE GROUP
Slide 9: Group Income Statement
GROUP INCOME STATEMENT 12M 2023 (€ mn) 12M 2023 12M 2022 +/- % Insurance service result 1,208.1 1,138.8 6.1 Insurance service revenue - issued business 10,921.8 9,737.6 12.2 ▪ Insurance service revenue up by €1.2bn primarily Insurance service revenue (PAA) 8,531.5 7,516.8 13.5 due to strong growth i
Slide 10: Net Investment Result
NET INVESTMENT RESULT 12M 2023 (€ mn) 12M 2023 12M 2022 +/- % Net investment result 284.3 -12,2 - ▪ Very positive development of the net investment Investment result 1,893.1 -809.7 - result totalling to € 284.3mn Interest revenue using the effective interest method 895.8 714.9 25.3 ▪ Main drivers ar
Slide 11: Investment Split
INVESTMENT SPLIT Split refers to the investments held at VIG’s own risk (excl. investments for unit- and index linked life insurance) Investment split1 Bond portfolio by rating3 3.3% 7.8% 1.6% 12M 20222 10.1% 27.2% 31.6% 23.6% 7.5% 0.1% 2.1% 12M 20231 12.2% 26.3% 32.5% 22.1% 7.0% 9.8% €35.3bn AAA AA
Slide 12: Bond Portfolio Rating Distribution 2023
BOND PORTFOLIO RATING DISTRIBUTION 2023 Government bonds Covered bonds Financials Corporates 69.8% 53.6% 42.3% 36.4% 37.0% 29.7% 27.2% 27.2% 15.3% 12.0% 12.3% 11.0% 9.1% 8.6% 1.0% 1.9% 0.1% 1.7% 2.7% 1.2% AAA AA A BBB Other AAA AA A BBB Other AAA AA A BBB Other AAA AA A BBB Other 12 FINANCIALS VIG V
Slide 13: L/H Contractual Service Margin & L/H New Business
L/H CONTRACTUAL SERVICE MARGIN & L/H NEW BUSINESS 12M 2023 L/H CSM roll-forward (€ mn) L/H New Business (€ mn) -0.8% 184 -30 -13 € 326mn € 3,665mn 18 -534 New Business PV NB 326 CSM premiums 5,837 5,789 8.9% CSM Net New CSM interest Changes in Other FX Effect CSM release CSM Net New Business 01/01/2
Slide 14: Result Before Taxes Increased by 31.9% to 772.7 Million Euro
RESULT BEFORE TAXES INCREASED BY 31.9% TO 772.7 MILLION EURO Result before taxes (€ mn) ▪ AT: significant increase of the result before taxes by € 112.9mn 273.0 due to substantially improved net investment result; 2022 Austria +41.3% impacted by impairment (€ 73.6mn) on Russian investment 385.9 expo
Slide 15: Insurance Service Revenue of 10.9 Billion Euro Up by 12.2%
INSURANCE SERVICE REVENUE OF 10.9 BILLION EURO UP BY 12.2% Insurance service revenue by segments (€ mn) ▪ AT: Insurance service revenue up by € 144.0mn coming from 3,163.4 non-life business in PAA Austria +4.6% 3,307.4 ▪ CZ: Solid revenue growth based on positive development of the motor business 1,
Slide 16: Insurance Service Revenue Growth in All Lines of Business Except Life
INSURANCE SERVICE REVENUE GROWTH IN ALL LINES OF BUSINESS EXCEPT LIFE WITH PROFIT PARTICIPATION Insurance service revenue by lines of business (€ mn); incl. Group Functions MTPL Casco Other property Insurance service revenue +12.2% 10,921.8 12M 2022 1,887.4 1,515.8 4,937.6 652.5 9,737.6 934.4 +10.8%
Slide 17: Net Combined Ratio P&C of 92.6%
NET COMBINED RATIO P&C OF 92.6% Discounting impact on loss ratio in 2023 of 3.3% (2022: 3.2%) ▪ Net insurance service expenses of € 7,018.0mn (2022: € 6,078.5mn) / Net insurance service revenue of € 7,582.2mn (2022: € 6,551.2mn) ▪ Stable combined ratio compared to the previous year with discounting
Slide 18: Outlook
HIGHLIGHTS FINANCIALS OUTLOOK SEGMENTS APPENDIX Please note that rounding differences may occur 18 VIG VIENNA INSURANCE GROUP
Slide 19: Positive Macroeconomic Environment in CEE for 2024
POSITIVE MACROECONOMIC ENVIRONMENT IN CEE FOR 2024 CEE GDP growth expectations to outpace euro area in 2024 VIG Top 3 ▪ In 2024, almost all countries are projected to show positive GDP growth, with NO outlooks significantly better than in 2023 SE VIG ▪ GDP growth in VIG markets is notably stronger t
Slide 20: Outlook 2024
OUTLOOK 2024 Positive performance also expected for 2024 despite volatile environment VIG has so far managed the impacts of challenging geopolitical and economic conditions very well and continues to focus on its success factors of continuity, stability and diversity The aim of management is to achi
Slide 21: Segments
HIGHLIGHTS FINANCIALS OUTLOOK SEGMENTS APPENDIX Please note that rounding differences may occur Segment overview contains data before consolidation Comparative figures for 12M 2022 restated due to IFRS 17/9 21 VIG VIENNA INSURANCE GROUP
Slide 22: Austria
AUSTRIA Strong developments in P&C as well as in L/H leading to overall profit growth of 41.3% Insurance Service P&L (€ mn) Comments Revenue (€ mn) 12M 2023 12M 2022 +/- % +4.6% Insurance service result 419.6 485.1 -13.5 ▪ Insurance service revenue up by € 144.0mn 3,307.4 Insurance service revenue -
Slide 23: Czech Republic
CZECH REPUBLIC Sound insurance service revenue growth, result before taxes impacted by one-off effect Insurance Service P&L (€ mn) Comments Revenue (€ mn) 12M 2023 12M 2022 +/- % +9.6% Insurance service result 246.1 297.6 -17.3 ▪ Solid revenue growth of € 179.3mn based on 2,040.1 Insurance service r
Slide 24: Poland
POLAND Result before taxes development impacted by restructuring measures Insurance Service P&L (€ mn) Comments Revenue (€ mn) 12M 2023 12M 2022 +/- % +14.3% Insurance service result 49.3 82.1 -39.9 ▪ Double-digit revenue growth of 14.3% 1,224.5 Insurance service revenue - issued business 1,224.5 1,
Slide 25: Extended CEE
EXTENDED CEE Strong business development in 2023 Insurance Service P&L (€ mn) Comments Revenue (€ mn) 12M 2023 12M 2022 +/- % +17.7% Insurance service result 215.9 117.5 83.8 ▪ Extended CEE: Albania (incl. Kosovo), Baltic 3,148.1 Insurance service revenue - issued business 3,148.1 2,673.6 17.7 state
Slide 26: Special Markets
SPECIAL MARKETS Solid performance of all lines of business in Türkiye and Georgia Insurance Service P&L (€ mn) Comments Revenue (€ mn) 12M 2023 12M 2022 +/- % +27.8% Insurance service result 65.7 36.9 78.0 ▪ Special markets include Germany, Georgia, 617.6 Insurance service revenue - issued business
Slide 27: Group Functions
GROUP FUNCTIONS Positive developments 2023 Insurance Service P&L (€ mn) Comments Revenue (€ mn) 12M 2023 12M 2022 +/- % +18.0% Insurance service result 198.9 128.5 54.8 ▪ The Group Functions include VIG Holding (incl. 1,652.2 Insurance service revenue - issued business 1,652.2 1,399.7 18.0 40.7 the
Slide 28: Appendix
HIGHLIGHTS FINANCIALS OUTLOOK SEGMENTS APPENDIX Please note that rounding differences may occur Comparative figures for 12M 2022 restated due to IFRS 17/9 28 VIG VIENNA INSURANCE GROUP
Slide 29: Smooth Transition from IFRS 4 to IFRS 17/9
SMOOTH TRANSITION FROM IFRS 4 TO IFRS 17/9 Result before taxes (€ mn) IFRS 4 IFRS 17/91 773 ▪ VIG achieved a smooth transition from IFRS 4 to IFRS 17/9 562 586 ▪ Restated result before taxes of € 586mn for 522 511 the year 2022 due to IFRS 17/9 on a similar level as the under IFRS 4 reported 2022 fi
Slide 30: Group Balance Sheet
GROUP BALANCE SHEET 31/12/2023 (€ mn) 31/12/2023 31/12/2022 +/- % Cash and cash equivalents 1,558.1 2,315.2 -32.7 Financial assets 37,990.2 35,814.0 6.1 Receivables 495.7 490.7 1.0 Current tax assets 235.7 175.9 34.0 Investments in associates and joint ventures 185.6 288.0 -35.5 Insurance contracts
Slide 31: Operating Return on Equity of 15.1%
OPERATING RETURN ON EQUITY OF 15.1% 31/12/2023 31/12/2022 31/12/2021 Shareholders’ equity 6,029.7 5,713.9 5,308.3 Unrealised gains and losses recognised in equity1 -159.3 52.3 -139.4 Adjusted shareholders’ equity 5,870.4 5,766.2 5,168.9 Average adjusted shareholders’ equity 5,818.3 5,467.6 Business
Slide 32: Equity Development
EQUITY DEVELOPMENT 12M 2023 (€ mn) Change in consolidated Shareholders’ Equity (€ mn) +5.5% 212 -184 44 14 -347 6,030 576 5,714 Equity Result for the period Hyperinflation Currency reserve Unrealised gains Dividend payment Other Equity as of 01/01/2023 effects and losses as of 31/12/2023 32 APPENDIX
Slide 33: Segment Overview
SEGMENT OVERVIEW 12M 2023 Insurance service revenue Result before taxes Net combined ratio (€ mn) (€ mn) (%) 12M 2023 12M 2022 +/- % 12M 2023 12M 2022 +/- % 12M 2023 12M 2022 +/- pp Austria 3,307.4 3,163.4 4.6 385.9 273.0 41.3 91.6 90.1 1.6 Czech Republic 2,040.1 1,860.8 9.6 218.0 240.7 -9.4 91.3 90
Slide 34: Gross Written Premiums
GROSS WRITTEN PREMIUMS 12M 2023 (€ mn) 12M 2023 12M 2022 +/- % ▪ Gross written premiums of € 13.8bn up by 9.8% based on Austria 4,271.9 4,138.4 3.2 growth in all segments Czech Republic 2,316.7 2,122.1 9.2 ▪ Strong double-digit growth reported in the segments Poland, Extended CEE, Special Markets an
Slide 35: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (31/12/2023) Listings Ticker Rating Major Indices SELL BUY Vienna ▪ Stock Exchanges: VIG Standard & Poor’s: ATX 1 3 Prague ▪ Bloomberg: VIG AV / VIG CP / VIG XH A+, stable outlook ATX
Slide 36: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region1 Austria 31% North America 29% ~72% Wiener Städtische ~28% Continental Europe 28% Versicherungsverein Free float (Mutual) UK & Ireland 8% Other 4% 1 Split of identified shares, May 2023 (Source: S&P Global) 36 APPENDIX VIG VIENNA INSURA
Slide 37: Appendix
37 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 38: Contact Details / Financial Calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.group.vig Nina Higatzberger-Schwarz Sylvia Hollerer Financial calendar 2024* Tel. +43 50 390-21920 Tel. +43 50 390-21919 Date Event nina.higatzberger@vig.com sylvia.hollerer@vig.com 12 Mar. 2024 Preliminary re
Slide 39: 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
Slide 40: VIG Vienna Insurance Group
VIG* VIENNA INSURANCE GROUP Protecting what matters.
Vienna Insurance Group — FY2023 Earnings Presentation on 6ix