Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — Q1 2007 Earnings Presentation

27 slides from Vienna Insurance's earnings presentation, May 14, 2007

  1. Slide 1: Vienna Insurance Group - Extending the CEE insurance play

    Vienna Insurance Group - Extending the CEE insurance play 3M 2007 results - 14 May 2007

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics 2 Presenting Team Topics § Martin Simhandl, CFO, Member of the § Highlights p. 03 Managing Board § P&L and Balance Sheet p. 06 § Peter Hagen, Member of the Managing Board § Appendix p. 15 § Kurt Ebner, Group Actuary-in-Chief § Roland Gröll, Head of Group Accounting § Thoma

  3. Slide 3: Major Developments

    3M 2007 Major Developments Strong increase in profits 3 § € 2bn premium mark passed already after 3 months § CEE business stepping up 37% yoy § First time full consolidation of Austrian life subsidiary Union § Profit before tax increased by 38% to € 101mn § Share of CEE in profits raised to 35% Mark

  4. Slide 4: Highlights (I)

    3M 2007 Highlights (I) GWP up by 15.2%; Combined ratio improved significantly vs. 3M 2006 4 GWP Profit before Tax 321 5,882 5,008 240 4,101 15.2% 38.2% 156 1,752 2,018 101 1,554 73 55 2004 2005 2006 3M 05 3M 06 3M 07 2004 2005 2006 3M 05 3M 06 3M 07 IFRS IFRS Net Profit after Tax and Minorities Comb

  5. Slide 5: Highlights (II)

    3M 2007 Highlights (II) EPS stepping up swiftly 5 EPS ROE before Tax 23.3 2.89 21.9 2.48 19.5 2.27 2.22 17.1 1.84 14.8 14.0 1.41 2004 2005 2006 3M 05 3M 06 3M 07 2004 2005 2006 3M 05 3M 06 3M 07 IFRS IFRS

  6. Slide 6: P&L and Balance Sheet

    Vienna Insurance Group- 3M 2007 results P&L and Balance Sheet

  7. Slide 7: Income Statement

    3M 2007 Income Statement IFRS (€mn) 7 3M 2007 3M 2006 +/-% 1. Gross written premiums 2,018.4 1,752.2 15.2 2. Net earned premiums 1,464.3 1,247.4 17.4 1 3. Net investment income 205.3 162.0 26.7 4. Other income 8.9 15.8 -43.9 Total income 1,678.5 1,425.2 17.8 6. Expenses for claims incurred -1,184.7

  8. Slide 8: Balance Sheet

    3M 2007 Balance Sheet IFRS (€mn) 8 3M 2007 2006 +/- % Intangible assets 455 461 -1.5 Total investments 18,939 17,260 9.7 Unit- and index-linked investments 2,657 2,341 13.5 Reinsurers’ share in technical provisions 1,212 963 25.8 Receivables 1,292 984 31.3 Deferred tax assets 24 24 1.5 Other assets

  9. Slide 9: P&L Major Items – Gross Written Premiums

    3M 2007 P&L Major Items – Gross Written Premiums Largely growing above market in Austria and CEE (€ mn] 9 § Group GWP increased by 15.2% to € 2,018mn § Austria: total GWP up 5.2% to reach € 1,196mn. Life up 8.3% at 70.6 € 520.7mn with sound growth in current premiums vs. weaker 67.6 Other 751.5 CEE

  10. Slide 10: GWP Split by Region

    GWP Split by Region Other CEE share increasing at fast pace 10 GWP by Geography 3M 06 GWP by Geography 3M 07 Other Other 3.9% 3.5% Other CEE Other CEE 8.5% 14.7% Austria Slovakia Austria 59.3% 6.7% 64.9% Slovakia 7.0% Czech Republic 16.0% Czech Republic 15.5% 3M 2006 Total: € 1.8bn 3M 2007 Total: €

  11. Slide 11: P&L Major Items – Expenses for Claims Incurred

    3M 2007 P&L Major Items – Expenses for Claims Incurred Loss ratio reduced substantially 11 § Group loss ratio (net) with marked improvement to 63.3% despite € 10mn net effect from Kyrill storm § Austrian loss ratio lower by 1.8% pts at 66.1% thus reaching regular level § Czech Republic which was sev

  12. Slide 12: P&L Major Items – Operating Expenses

    3M 2007 P&L Major Items – Operating Expenses Cost ratio impacted by strong business growth 12 § Group cost ratio (net) up at 33.0%, driven by acquisition costs: VIG does not account for DACs which affects cost ratio roughly by 2% pts (premium income is high at start of the year and leads to higher d

  13. Slide 13: P&L Major Items – Net Investment Income

    3M 2007 P&L Major Items – Net Investment Income Sound growth in line with business expansion (€mn) 13 § Increase in Group Net Investment Income by 26.7% to Net Investment Income € 205.3mn 4.2 34.0 § Austria grew by 20.5% influenced by trading gains, 4.5 Other 18.7 CEE inclusion of Housing Societies

  14. Slide 14: Financial Targets

    Financial Targets New targets set for 2007 - 2009 14 § Rising contribution from CEE companies Profit before Tax Targets in € mn and full consolidation of Union life CAGR: ~ 18% subsidiary provides the basis for 520 - 530 470 - 480 management to set new financial targets 410 § New PBT target for 2007

  15. Slide 15: Appendix

    Vienna Insurance Group- 3M 2007 results Appendix

  16. Slide 16: P&L – Business Segments (Property & Casualty)

    3M 2007 P&L – Business Segments Property & Casualty, IFRS (€mn) 16 3M 2007 3M 2006 +/-% 1. Gross written premiums 1,185.3 1,026.4 15.5 2. Net earned premiums 667.3 548.6 21.7 3. Net investment income 33.1 23.7 39.8 4. Other income 4.5 6.3 -29.0 Total income 704.9 578.5 21.8 6. Expenses for claims in

  17. Slide 17: P&L – Business Segments (Life)

    3M 2007 P&L – Business Segments Life, IFRS (€mn) 17 3M 2007 3M 2006 +/-% 1. Gross written premiums 753.2 648.1 16.2 2. Net earned premiums 720.6 624.5 15.4 3. Net investment income 168.1 133.9 25.5 4. Other income 4.4 9.5 -53.7 Total income 893.1 768.0 16.3 6. Expenses for claims incurred -699.0 -62

  18. Slide 18: P&L – Business Segments (Health)

    3M 2007 P&L – Business Segments Health, IFRS (€mn) 18 3M 2007 3M 2006 +/-% 1. Gross written premiums 79.9 77.7 2.9 2. Net earned premiums 76.4 74.2 2.9 3. Net investment income 4.2 4.5 -6.6 4. Other income 0.0 0.0 0.0 Total income 80.6 78.7 2.4 6. Expenses for claims incurred -63.1 -59.7 5.6 7. Oper

  19. Slide 19: P&L - Split by Regions (I)

    3M 2007 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 19 Austria Czech Republic Slovakia 3M 2007 3M 2006 +/-% 3M 2007 3M 2006 +/-% 3M 2007 3M 2006 +/-% 1. Gross written premiums 1,196.3 1,137.4 5.2 312.6 281.0 11.2 141.4 116.8 21.0 2. Net earned premiums 869.7 827.6 5.1 219.7 189.6 15.9 9

  20. Slide 20: P&L - Split by Regions (II)

    3M 2007 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 20 Other CEE Other TOTAL 3M 2007 3M 2006 +/-% 3M 2007 3M 2006 +/-% 3M 2007 3M 2006 +/-% 1. Gross written premiums 297.6 149.3 99.3 70.6 67.6 4.4 2,018.4 1,752.2 15.2 2. Net earned premiums 219.1 102.9 113.1 62.0 59.5 4.2 1,464.3 1,247

  21. Slide 21: Results by country

    3M 2007 results by country IFRS (€mn) 21 Non-Life Life Total Profit before Tax Combined Ratio 3M 2007 3M 2006 3M 2007 3M 2006 3M 2007 3M 2006 3M 2007 3M 2006 3M 2007 3M 2006 Austria 675.6 656.7 520.7 480.7 1,196.3 1,137.4 62.5 54.8 95.7% 96.8% Czech Rep. 245.0 225.9 67.6 55.1 312.6 281.0 18.3 6.6 95

  22. Slide 22: Change in Group Shareholders' Equity / APE

    Change in Group Shareholders‘ Equity / APE IFRS 22 (€'000) 1.1. - 31.03.2007 1.1. - 31.03.2006 Equity as of 1 January 2,283,208 2,059,332 Currency Changes -4,004 705 Changes to shares 37,987 96 Capital Increase - - Unrealised Gains and Losses on financial 28,168 -7,059 instruments available for sale

  23. Slide 23: Exchange Rates

    3M 2007 Exchange Rates 23 3M 2007 3M 2006 Balance Sheet P&L Balance Sheet P&L Country Curr. EUR EUR EUR EUR Bulgaria BGN 0.511300 0.511300 0.511300 0.511300 Croatia HRK 0.135044 0.135766 0.136203 0.136192 Liechtenstein CHF 0.615498 0.618738 0.632871 0.641437 Poland PLN 0.258612 0.257311 0.253646 0.2

  24. Slide 24: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 105,000,000 24 Shareholder Structure Split Free Float 29.2% Retail Investors 1.6% 28.7 % Employees Free Float 69.2% Institutional 71.3 % Investors Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  25. Slide 25: Shareholder Structure (II)

    Shareholder Structure (II) 25 Free Float Geographical Split 1.3% Others 39.9 % Austria 13.2% UK & Ireland 27.0% 18.6% Continental Europe North America

  26. Slide 26: Contact Details

    Contact Details Investor Relations 26 Wiener Städtische Versicherung AG Vienna Insurance Group Schottenring 30, 1010 Vienna, Austria www.wienerstaedtische.com Vienna Stock Exchange: WST Reuters: WISV.VI Bloomberg: WST AV Datastream: O:WNST § Thomas Schmee Tel. +43 (0)50 350 – 21900 t.schmee@staedtis

  27. Slide 27: Disclaimer

    Disclaimer 27 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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