Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Non-Deal Roadshow (June 2015)
46 slides from Vienna Insurance's roadshow presentation, June 2015
Slide 1: Vienna Insurance Group Investor Presentation
Vienna Insurance Group Investor Presentation Roadshow North America, June 2015
Slide 2: Strategy and Potential
Strategy and Potential Financials and Appendix
Slide 3: Clear strategy focusing on Austria and the CEE region
Clear strategy focusing on Austria and the CEE region Strategic cornerstones of VIG Local entrepreneurship Multi-brand strategy Multi-channel distribution Conservative investments 3
Slide 4: Excellent market positions of VIG
Excellent market positions of VIG VIG is the clear No 1 in its core markets with overall ~19% market share Market positions Country Total market share Total N-life Life Austria 1 1 1 23.8% Czech Republic 1 2 1 33.7% Slovakia 1 2 1 33.6% Poland 4 4 4 8.3% Romania 1 1 2 19.5% Bulgaria 2 3 2 12.7% Croa
Slide 5: Adaptive growth policy (I)
Adaptive growth policy (I) CEE growth potentials develop in a step function Market growth Consolidation period VIG Strategy Growth period Elevate potential in changing market phases through adaptive growth policy Time Accelerated Differentiated growth growth - Accelerate growth in all - Consolidatio
Slide 6: Adaptive growth policy (II)
Adaptive growth policy (II) Elevate growth potentials correspondingly VIG Strategy Elevate potential also during Market growth Consolidation period consolidation period through differentiated growth policies Consolidation of high margin business Growth period Push non-motor business SME Unit-linked
Slide 7: Steady growth in non-motor business
Steady growth in non-motor business More profitable non-motor business with strong CAGRs CZ premium split (CZK mn) SK premium split (€ mn) CAGR 08-14 CAGR 08-14 13,457 8% 157 1% 10,552 12,316 156 Life regular 8,343 Life regular 170 165 10,175 6% 12% Life single 7,035 8,170 8,797 223 239 Life single
Slide 8: CEE Remaining markets growing strongly
CEE Remaining markets growing strongly Strong development in non-motor and life CEE Remaining premium split (€ mn) CAGR 08-14 204 10% Life regular 118 138 152 99 8% Life single 63 63 65 Non-Motor 183 260 6% 172 176 Motor 310 265 259 3% 254 2008 2010 2012 2014 Remarks on CEE Remaining markets Life re
Slide 9: Examples – CEE Remaining markets
Examples – CEE Remaining markets Strong CAGRs based on local currencies Bulgaria (BGN mn) Hungary (HUF mn) CAGR 08-14 CAGR 08-14 Life regular 21 6 Life single 75 23 22,978 18% 4 11% Non-Motor 39 58 33 5 16 17% 11,094 65 69 1% Life regular 9,602 16,993 4% 8,645 Motor 192 Life single 13,325 164 13,436
Slide 10: Continued growth in life regular premiums
Continued growth in life regular premiums Single premiums affected by Polish STEP Development life premiums CEE (€mn) CAGR 7.2% 2,531 2,167 2,063 904 1,851 1,561 955 20% 24% 1,021 913 1,021 1,055 Regular 852 852 1,627 1,212 937 1,042 Regular Single 709 12M10 12M11 12M12 12M13 12M14 12M10 12M14 12M14
Slide 11: Life insurance
Life insurance No. of policies, development Traditional Annuity insurance & Risk insurance Endowment insurance 2,889,527 1,432,641 -2.9% +28.3% 2,806,178 1,838,340 Unit- and index-linked insurance 1,598,967 +16.0% 1,854,370 As of 31.12.2013 As of 31.12.2014 Note: rounding differences may occur 11
Slide 12: Continued growth in CEE
Continued growth in CEE Home-field advantage for VIG Development in CEE markets impacted by negative FX effects PBT CEE PBT Remaining GWP Remaining (€mn) markets CEE markets CEE 42% (€mn) 16% (€mn) 26% 36% 331 33 872 799 810 28 740 268 271 233 641 23 3 12M11 12M12 12M13 12M14 12M11 12M12 12M13 12M14
Slide 13: Net combined ratio in CEE of 93.4%
Net combined ratio in CEE of 93.4% CoR in CEE reaches new low Combined ratio development in CEE (net, %) Combined ratio in CEE excl. Romania (net, %) 102,00 -6.7%p 99.1 92.4 98,00 94,00 90,00 12M10 12M11 12M12 12M13 12M14 12M10 12M14 CoR CEE excl. RO Combined Ratio CEE Combined ratio in CEE Average
Slide 14: VIG outperformed during financial crisis
VIG outperformed during financial crisis VIGs business model stood the test Gross written premiums Profit before taxes 150 150 VIG Italian peer 119 Austrian peer 100 111 German peer 132 84 130 65 50 123 116 0 110 106 -50 Indexed 2007 (Basis = 100) Indexed 2007 (Basis = 100) 90 -100 2007 2008 2009 20
Slide 15: 25 years in Central and Eastern Europe (CEE)
25 years in Central and Eastern Europe (CEE) VIG - Value Inspired Growth Geographical distribution VIG – established confidence for the future GWP CEE First-mover advantage in the region with GWP 51% subsequent outperformance of the market 51% CEE From <5 to ~50 insurance companies 100% Footprint co
Slide 16: Striking under-penetration shows potential
Striking under-penetration shows potential Annual premiums per capita (insurance density), in EUR 2,713 9x Long-term growth potential 1,954 Life in CEE still lies ahead 548 Non-life 399 351 272 275 212 123 88 75 59 Ø EU-15 AT Ø CEE CZ SK PL HR HU BG RO SR UA Source: Local insurance authorities; IMF;
Slide 17: Macroeconomic upswing in VIG markets
Macroeconomic upswing in VIG markets Promising macro data for the years to come Improving macro data of regions where VIG operates in Change to previous year: Positive AT CZ SK PL RO Remains constant Negative 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 GDP Inflation Un
Slide 18: Financials and Appendix
Strategy and Potential Financials and Appendix
Slide 19: 3M 2015 – Key financials
3M 2015 – Key financials Overview of KPIs Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 367 100.6 96.7 96.4 96.3 234 121 99 2013 2014 3M14 3M15 2013 2014 3M14 3M15 EPS1 (€) ROE before Taxes (%) 3.62 12.2 2.94 10.1 9.7 2.75 6.7 1.57 2013 2014 3M14 3M15 2013 2014 3M14 3M15 1: EPS n
Slide 20: Conservative investments with a well diversified bond portfolio
3M 2015 – Conservative investments with a well diversified bond portfolio Biggest part invested in fixed income assets 3M 2015: Total €32.4bn Bond portfolio by rating1 Other 6% 5% 6.2% 12% 13% BBB 3.1% 0.0% A 38% 36% 9.4% AA 29% 34% 6.1% AAA 15% 11% 4.2% 12M 2014 3M 2015 Bond portfolio by issuer 71.
Slide 21: Solvency 2 under way – VIG well prepared
Solvency 2 under way – VIG well prepared VIG working on partial internal model for non-life and real estate EIOPA Stress Test 2014 under standard formula Status quo of preparation for Solvency 2 VIG being part of the exercise VIG steering process out of Austria Excluding internal model VIG is in the
Slide 22: Maintaining steady dividends – DPS of €1.40
Maintaining steady dividends – DPS of €1.40 Dividend yield amounting to 3.8%1 for 2014 Dividend per share (€) Dividend pay-out (€mn) 8% CAGR 9% 1.40 179.2 1.30 166.4 1.20 153.6 1.10 140.8 1.00 128.0 2010 2011 2012 2013 2014p 2010 2011 2012 2013 2014p Dividend policy Unchanged dividend policy with a
Slide 23: A solid first quarter
A solid first quarter All business segments and countries with positive profit contribution €2.8bn Premiums up 0.9% Sound development despite substantial decreases in life single premium business Remaining markets continued to grow strongly by 15.9% €131mn Profit before taxes of €131mn down 15.2% Ne
Slide 24: Sound premium development
Sound premium development Remaining markets premiums up by 15.9% Gross written premiums (€mn; y-o-y chg.) GWP regional split y-o-y chg. +1% Austria 1,341 -3% 2,731 21 4 2,756 Czech Republic 458 -2% Health 103 102 -1 Slovakia 215 1% Life 1,154 1,159 Poland 238 -8% Romania 100 22% Remaining markets 35
Slide 25: Profit before taxes of €130.9mn down 15.2%
Profit before taxes of €130.9mn down 15.2% All business segments and countries with positive profit contribution Profit before taxes (€mn; y-o-y change) PBT regional split y-o-y chg. -15% Austria 40 -31% 154 Health 12 Czech Republic 46 -10% 0 131 -15 12 Slovakia 10 3% Life 48 -9 Poland 17 4% 40 Roma
Slide 26: Group combined ratio further decreased to 96.3%
Group combined ratio further decreased to 96.3% P&C Combined ratio development P&C CoR 3M y-o-y regional development (net, %) -0.1%p AT 99.8 -1.8%p 96.4 96.3 98.1 CZ 85.4 +4.3%p 89.7 63.5 SK 95.1 -0.6%p 3M14 Claims ratio 65.3 94.5 97.8 3M15 PL +0.4%p 98.1 RO 105.8 -1.0%p Cost ratio 31.1 32.8 104.8 R
Slide 27: 3M 2015 – Income statement
3M 2015 – Income statement IFRS (€mn) €mn 3M 2015 3M 2014 +/-% Gross premiums written 2,755.9 2,731.1 0.9 Net earned premiums 2,210.6 2,212.6 -0.1 Financial result1 273.4 275.8 -0.9 Other income 28.3 27.6 2.6 Total income 2,512.3 2,515.9 -0.1 Expenses for claims and insurance benefits -1,729.8 -1,83
Slide 28: 3M 2015 – Balance sheet
3M 2015 – Balance sheet IFRS (€mn) €mn 31.03.2015 31.12.2014 +/-% Intangible assets 2,364 2,370 -0.3 Investments 31,413 30,360 3.5 Unit- and index-linked investments 8,337 7,742 7.7 Reinsurers’ share in underwriting provisions 1,237 1,106 11.9 Receivables 1,694 1,502 12.8 Tax receivables and advance
Slide 29: Strong equity and solvency position
3M 2015 – Strong equity and solvency position Shareholders’ equity increased Change in Group Shareholders’ Equity (€mn) +4% 132 -3 5,480 -52 -7 26 100 5,283 Equity restated Profit for Currency AFS unrealised Dividend Repurchase Other Equity as as of 12M14 the period changes gains and losses payment
Slide 30: Financial result development
3M 2015 – Financial result development Slight decrease y-o-y Financial result y-o-y changes (€mn) -1% 275.8 2.2 273.4 3.9 -8.5 Financial result 3M14 Chg. P&C Chg. Life Chg. Health Financial result 3M15 Remarks Financial result of € 273.4mn includes P&L neutral positive FX effects from currency hedgi
Slide 31: 3M 2015 – Financial result
3M 2015 – Financial result Net realised gains at level of last year Income P&C Life Health Total in € '000 3M 2015 3M 2014 3M 2015 3M 2014 3M 2015 3M 2014 3M 2015 3M 2014 Current income 66,410 70,784 194,076 202,822 11,169 10,423 271,655 284,029 Income from appreciations 3,755 17,891 4,641 4,771 95
Slide 32: 3M 2015 – P&L Property & Casualty
3M 2015 – P&L Property & Casualty IFRS (€mn) €mn 3M 2015 3M 2014 +/-% Gross premiums written 1,495.7 1,474.4 1.4 Net earned premiums 977.6 979.1 -0.2 Financial result 55.1 63.6 -13.4 Other income 14.9 17.1 -12.6 Total income 1,047.6 1,059.8 -1.2 Expenses for claims and insurance benefits -621.0 -639
Slide 33: 3M 2015 – P&L Life
3M 2015 – P&L Life IFRS (€mn) €mn 3M 2015 3M 2014 +/-% Gross premiums written 1,158.5 1,154.1 0.4 Net earned premiums 1,135.4 1,132.4 0.3 Financial result 208.9 205.0 1.9 Other income 13.0 10.5 24.2 Total income 1,357.3 1,347.9 0.7 Expenses for claims and insurance benefits -1,026.9 -1,111.3 -7.6 Ac
Slide 34: 3M 2015 – P&L Health
3M 2015 – P&L Health IFRS (€mn) €mn 3M 2015 3M 2014 +/-% Gross premiums written 101.7 102.6 -0.8 Net earned premiums 97.6 101.0 -3.3 Financial result 9.3 7.1 30.9 Other income 0.3 0.0 >100 Total income 107.3 108.1 -0.7 Expenses for claims and insurance benefits -81.9 -83.1 -1.5 Acquisition and admin
Slide 35: 3M 2015 – P&L regions (I)
3M 2015 – P&L regions (I) IFRS (€mn) Austria Czech Republic Slovakia €mn 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% Gross premiums written 1,341.0 1,375.4 -2.5 457.8 466.4 -1.8 214.7 213.2 0.7 Net earned premiums 902.1 938.1 -3.8 349.8 361.7 -3.3 166.6 162.7 2.4 Financial result
Slide 36: 3M 2015 – P&L regions (II)
3M 2015 – P&L regions (II) IFRS (€mn) Poland Romania Remaining €mn 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% Gross premiums written 238.1 257.7 -7.6 100.3 82.4 21.7 357.2 308.2 15.9 Net earned premiums 205.6 203.7 0.9 61.7 46.4 32.8 254.7 219.4 16.1 Financial result 14.6 13.3 9.
Slide 37: 3M 2015 – P&L regions (III)
3M 2015 – P&L regions (III) IFRS (€mn) Central Functions Consolidation TOTAL €mn 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% Gross premiums written 371.0 359.2 3.3 -324.3 -331.4 n.a. 2,755.9 2,731.1 0.9 Net earned premiums 269.6 282.2 -4.5 0.5 -1.7 n.a. 2,210.6 2,212.6 -0.1 Financ
Slide 38: 3M 2015 – Results by country (I)
3M 2015 – Results by country (I) IFRS (€mn) GWP P&C GWP Life GWP Health GWP Total 3M 3M 3M 3M 3M 3M 3M 3M +/-% +/-% +/-% +/-% 2015 2014 2015 2014 2015 2014 2015 2014 Austria 722.9 721.6 0.2% 520.7 559.4 -6.9% 97.4 94.3 3.2% 1,341.0 1,375.4 -2.5% Czech Rep. 234.5 235.8 -0.5% 223.2 230.6 -3.2% - - - 4
Slide 39: 3M 2015 – Results by country (II)
3M 2015 – Results by country (II) IFRS (€mn) Profit before Taxes Net Combined Ratio 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-%p Austria 39.6 57.7 -31.4% 98.1% 99.8% -1.8 Czech Rep. 45.8 51.0 -10.2% 89.7% 85.4% 4.3 Slovakia 9.7 9.4 2.6% 94.5% 95.1% -0.6 Poland 16.6 15.9 4.3% 98.1% 97.8% 0.4 Romania 1.
Slide 40: P&C Claims and cost ratio details
3M 2015 – P&C Claims and cost ratio details Claims ratio 3M y-o-y regional development (net, %) Remarks for claims incurred Austria: claims ratio down 3.6%p driven by development of Donau 3M14 3M15 Versicherung (less business volume in Italy) -3.6 +5.5 +6.0 +6.5 Czech Republic: slight increase due t
Slide 41: 3M 2015 – Exchange rates
3M 2015 – Exchange rates 3M 2015 3M 2014 Balance Sheet Balance Sheet Country Currency P & L EUR P & L EUR EUR EUR Albania EUR/ALL 140.3400 140.2321 140.2700 140.3884 Belarus EUR/BYR 15,970.0000 16,574.8889 13,570.0000 13,280.6667 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.9558 1.9
Slide 42: VIG share (I)
VIG share (I) Current analyst recommendation split Share price development 3M 2015 Sell Buy High EUR 42.550 Low EUR 35.825 Price as of 31 Mar. EUR 41.200 Average daily volume EUR 4.2 mn Market cap. EUR 5.3 bn Development YTD % 11.1 Hold VIG compared to ATX and Stoxx Europe 600 Ins. 125 120 115 110 1
Slide 43: VIG share (II)
VIG share (II) General information Shareholder structure Number of common shares: 128mn ISIN: AT0000908504 ~30% Wiener Städtische Free Float Listings: Wechselseitiger Versicherungsverein - Vienna – since 17 Oct. 1994 Vermögensverwaltung – Vienna Insurance Group ~70% Prague – since 5 Feb. 2008 Ticker
Slide 44: Contact details
Contact details Investor Relations Financial calendar 2015 Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna Publication: Preliminary E-Mail: investor.relations@vig.com 27 Jan. 2015 unconsolidated premiums 2014 www.vig.com/ir Nina Higatzberger (Head of IR) 14 Apr
Slide 45: The leading insurance specialist in Austria and CEE
THE LEADING INSURANCE SPECIALIST IN AUSTRIA AND CEE. VIG? VIENNA INSURANCE GROUP Wiener Versicherung Gruppe wiewerSa — Scopeatwof pusrean = KHAMAW = comanadle gem M oN Lye mosyc &) WINNER Gad comee: | ee ronrerS | GPA with VIENNA INSURANCE GROUP VIENNA INSURANCE GROUP \VIEIIUA INSURANCE GROUP cnr OO
Slide 46: 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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