Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — H1 2023 Earnings Presentation
30 slides from Vienna Insurance's earnings presentation, Aug 30, 2023
Slide 1: 6M 2023 Results Presentation
6M 2023 RESULTS PRESENTATION Liane Hirner, CFRO Roland Goldsteiner, Head of Group Finance & Regulatory Reporting Werner Matula, Chief Actuary & Head of Actuarial Services Vienna, 30 August 2023
Slide 2: Results Overview 6M 2023
RESULTS OVERVIEW 6M 2023 Strong performance in challenging environment Insurance service revenue Profit before taxes Net Combined Ratio (P&C) € 5,380.4mn € 462.9mn 94.0% ▪ 6M 2022: € 4,732.9mn ▪ 6M 2022: € 212.0mn ▪ 6M 2022: 90.6% Annualised earnings per share Operating Return on Equity Solvency Rat
Slide 3: Financials, Outlook, Segments, Appendix
FINANCIALS OUTLOOK SEGMENTS APPENDIX Please note: rounding differences may occur 3 VIG VIENNA INSURANCE GROUP
Slide 4: Group Income Statement
GROUP INCOME STATEMENT 6M 2023 (€ mn) 6M 2023 6M 2022 +/- % Insurance service result 550.8 521.3 5.7 Insurance service revenue - issued business 5,380.4 4,732.9 13.7 ▪ Positive development of the insurance service revenue in Insurance service revenue (PAA) 4,160.5 3,662.0 13.6 all segments; the incr
Slide 5: Insurance Service Revenue of 5.4 Billion Euro Up by 13.7%
INSURANCE SERVICE REVENUE OF 5.4 BILLION EURO UP BY 13.7% Insurance service revenue by segments (€ mn) 1,543.4 ▪ AT: Insurance service revenue up by € 98.7mn driven by Austria +6.4% 1,642.1 increased gross written premiums in the non-life lines of business 902.8 ▪ CZ: Double-digit growth due to posi
Slide 6: Substantially Improved Result Before Taxes of 462.9 Million Euro
SUBSTANTIALLY IMPROVED RESULT BEFORE TAXES OF 462.9 MILLION EURO Result before taxes (€ mn) 75.6 ▪ AT: strong improvement of the result before taxes to Austria +154.3% 192.2 € 192.2mn; 6M 2022 mostly impacted by the measures taken in relation to the Russian investment exposure 85.0 ▪ CZ: result befo
Slide 7: Net Combined Ratio P&C of 94.0%
NET COMBINED RATIO P&C OF 94.0% Overview plus market segments (CoR net, %) ▪ Net insurance service expenses of € 3,325.1mn (€ 2,826.8mn) / Net insurance service revenue of € 3,539.1mn (€ 3,121.0mn) ▪ Increased combined ratio primarily due to the consideration of higher claims volatilities in the lia
Slide 8: Contractual Service Margin & L/H New Business
CONTRACTUAL SERVICE MARGIN & L/H NEW BUSINESS 6M 2023 Total Net CSM roll-forward (€ mn) L/H New Business (€ mn) +1.7% 23 63 € 136mn € 1,906mn 175 -337 New Business PV NB 9 5,935 CSM premiums 164 5,838 7.2% CSM Net New CSM interest Changes in Other FX Effect CSM release CSM Net New Business 01/01/202
Slide 9: Investment Split
INVESTMENT SPLIT The presented split refers to the investments held at VIG’s own risk Investment split1 Bond portfolio by rating3 4.5% 0.5% 12M 20222 10.1% 27.2% 31.6% 23.6% 7.5% 8.4% 0.1% 2.3% 6M 20231 11.0% 26.9% 33.1% 21.7% 7.4% 9.6% €34.7bn AAA AA A BBB Other in 6M 2023 Bond portfolio by issuer
Slide 10: Financials, Outlook, Segments, Appendix
FINANCIALS OUTLOOK SEGMENTS APPENDIX Please note: rounding differences may occur 10 VIG VIENNA INSURANCE GROUP
Slide 11: Outlook 2023
OUTLOOK 2023 Group profit before taxes in a range of € 700 – 750 million for full-year 2023 expected ▪ Subject to substantial interest rate changes and market volatilities ▪ Persisting extreme weather events expected to impact second half of 2023 ▪ War in Ukraine with its far-reaching consequences o
Slide 12: Financials, Outlook, Segments, Appendix
FINANCIALS OUTLOOK SEGMENTS APPENDIX Please note: rounding differences may occur 12 VIG VIENNA INSURANCE GROUP
Slide 13: Austria
AUSTRIA Operating performance well on track P&L (€ mn) Comments 6M 2023 6M 2022 +/- % Insurance service result 186.4 211.5 -11.9 ▪ Insurance service revenue up by € 98.7mn based on the Insurance service revenue - issued business 1,642.1 1,543.4 6.4 premiums in the PAA in the non-life lines of busine
Slide 14: Czech Republic
CZECH REPUBLIC Strong development in the first half of 2023 P&L (€ mn) Comments 6M 2023 6M 2022 +/- % Insurance service result 97.4 131.8 -26.1 ▪ Insurance service revenue increase by € 96.9mn due to Insurance service revenue - issued business 999.7 902.8 10.7 positive premium development in the mot
Slide 15: Poland
POLAND Positive developments in L/H could not outweigh increased CoR impact in P&C P&L (€ mn) Comments 6M 2023 6M 2022 +/- % Insurance service result 33.7 60.0 -43.8 ▪ Double-digit growth in insurance service revenue mainly Insurance service revenue - issued business 585.6 528.6 10.8 coming from cas
Slide 16: Extended CEE
EXTENDED CEE Excellent business development in 6M 2023 P&L (€ mn) Comments 6M 2023 6M 2022 +/- % Insurance service result 75.8 81.6 -7.1 ▪ Extended CEE comprises Albania (incl. Kosovo), Baltic Insurance service revenue - issued business 1,511.7 1,241.5 21.8 states, Bosnia & Herzegovina, Bulgaria, Cr
Slide 17: Special Markets
SPECIAL MARKETS First-time consolidation of Viennalife in Türkiye in 2022 P&L (€ mn) Comments 6M 2023 6M 2022 +/- % Insurance service result 5.1 12.6 -59.4 ▪ Special markets include Germany, Georgia, Liechtenstein Insurance service revenue - issued business 356.1 203.3 75.1 and Türkiye Insurance ser
Slide 18: Group Functions
GROUP FUNCTIONS Positive development in 6M 2023 P&L (€ mn) Comments 6M 2023 6M 2022 +/- % Insurance service result 62.1 67.7 -8.2 ▪ The Group Functions include VIG Holding (incl. the Insurance service revenue - issued business 798.3 744.4 7.2 branches in Northern Europe), VIG Re (incl. the branches
Slide 19: Financials, Outlook, Segments, Appendix
FINANCIALS OUTLOOK SEGMENTS APPENDIX Please note: rounding differences may occur 19 VIG VIENNA INSURANCE GROUP
Slide 20: Group Balance Sheet
GROUP BALANCE SHEET 30/06/2023 (€ mn) 30/06/2023 31/12/2022 +/- % Cash and cash equivalents 1,774.0 2,315.2 -23.4 Financial assets 37,038.2 35,814.0 3.4 Receivables 527.9 490.7 7.6 Current tax assets 193.7 175.9 10.2 Investments in associates and joint ventures 187.4 288.0 -34.9 Insurance contracts
Slide 21: Operating Return on Equity of 15.8%
OPERATING RETURN ON EQUITY OF 15.8% ▪ Group operating profit annualised based on half-year result in relation to average equity adjusted for unrealised gains and losses 30/06/2023 31/12/2022 31/12/2021 Shareholdersʾ equity 5,961.7 5,713.9 5,308.3 Unrealised gains and losses recognised in equity1 -5.
Slide 22: Equity Development
EQUITY DEVELOPMENT 6M 2023 Change in consolidated Shareholders’ Equity (€ mn) +4.3% 26 64 -185 5,962 -9 353 5,714 Equity Result for the period Currency reserve Unrealised gains Dividend payment Other Equity as of 01/01/2023 and losses as of 30/06/2023 22 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 23: Segment Overview
SEGMENT OVERVIEW 6M 2023 (€ mn) Insurance service revenue Result before taxes Combined ratio (net, %) 6M 2023 6M 2022 +/- % 6M 2023 6M 2022 +/- % 6M 2023 6M 2022 +/- pp Austria 1,642.1 1,543.4 6.4 192.2 75.6 >100 90.4 88.5 1.9 Czech Republic 999.7 902.8 10.7 114.3 85.0 34.5 93.3 89.6 3.7 Poland 585.
Slide 24: Glossary
GLOSSARY IFRS 17/9 Abbreviation CSM Contractual service margin FVA Fair value approach FVtOCI Fair value through other comprehensive income FVtPL Fair value through profit and loss GMM General measurement model L/H Life/Health LIC Liability for incurred claims P&C Property and casualty PAA Premium a
Slide 25: Gross Written Premiums Up by 10.8% Based on Growth in All Segments
GROSS WRITTEN PREMIUMS UP BY 10.8% BASED ON GROWTH IN ALL SEGMENTS Gross written premiums1 (€ mn) ▪ Overall, strong premium growth in the first six months resulting in total GWP of € 7,306.7mn 2,375 Austria +1.8% 2,418 ▪ Premium growth in Austria and the Czech Republic coming from non-life and healt
Slide 26: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (30/06/2023) Listings Ticker Rating Major Indices SELL 1 BUY Vienna ▪ Stock Exchanges: VIG Standard & Poor’s: ATX 3 Prague ▪ Bloomberg: VIG AV / VIG CP / VIG XH A+, stable outlook ATX
Slide 27: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region1 Austria 31% North America 29% ~72% ~28% Continental Europe 28% UK & Ireland 8% Other 4% Wiener Städtische Versicherungsverein Free Float (Mutual) 1 Split of identified shares, May 2023 (Source: S&P Global) 27 APPENDIX VIG VIENNA INSURA
Slide 28: Appendix
28 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 29: Contact Details / Financial Calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.group.vig Nina Higatzberger-Schwarz Sylvia Hollerer Financial calendar 2023 Tel. +43 (0)50 390 – 21920 Tel. +43 (0)50 390 – 21919 Date Event nina.higatzberger@vig.com sylvia.hollerer@vig.com 15 Mar. 2023 Preli
Slide 30: 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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