Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Q1 2021 Earnings Presentation
46 slides from Vienna Insurance's earnings presentation, May 26, 2021
Slide 1: Investor Presentation: Results for the first quarter 2021
VIENNA INSURANCE GROUP Investor Presentation Results for the first quarter 2021
Slide 2: VIG – The leading insurance group in Central and Eastern Europe
VIG – THE LEADING INSURANCE GROUP IN CENTRAL AND EASTERN EUROPE Represented in More than 50 group companies 30 25,000 markets employees Solvency Ratio 2020 More than S&P Rating 22 million A+ 238% including transitionals (AT) and customers with stable outlook based on Partial Internal Model Since Mar
Slide 3: Strong business profile and successful strategy
STRONG BUSINESS PROFILE AND SUCCESSFUL STRATEGY Well diversified M&A - based on Five-pillar Strong balance Numerous portfolio over Proven strong footprint, sustainability sheet and initiatives to drive countries and business VIG follows strategy: prudent profitability and Core business lines of mode
Slide 4: Successful track-record of M&A activities
SUCCESSFUL TRACK-RECORD OF M&A ACTIVITIES From a local player to the market in leader in CEE PL HU RO TR CEE entry Expansion Expansion Strengthening positions AEGON-Deal 1990-1995 1996-1999 1999-2008 and group profile Signed in November 2020 2009 onwards ▪ Early mover in CEE ▪ Entries into the Hunga
Slide 5: Aegon CEE transaction
AEGON CEE TRANSACTION Delivering on ▪ Announced transaction is in line with VIG’s strategy of building further scale in CEE 1 strategy ▪ Confirms VIG’s #1 position in CEE ▪ Acquisition of Aegon’s non-life and life insurance companies as well as pension funds, and asset management in Hungary, Poland,
Slide 6: Excellent market positions in Central- and Eastern Europe
EXCELLENT MARKET POSITIONS IN CENTRAL- AND EASTERN EUROPE VIG top player in CEE Close to our overall more than 22mn customers Country Market position Market share Austria 1 1 1 23% Czech Rep. 1 2 1 31% 1 Slovakia 1 2 1 29% Poland 4 4 5 8% 10 Romania 1 2 2 21% 4 Baltics 1 1 2 25% 1 3 1 Hungary* 6 6 4
Slide 7: Long-term growth potential
LONG-TERM GROWTH POTENTIAL Annual insurance spending shows growth potential in Central and Eastern Europe Insurance density 2019, in EUR (premiums per capita) 1,967 Ø EU-15: ~€3,009 Ø CEE-VIG: ~€247 1,211 576 417 374 373 365 344 343 292 213 151 120 117 104 83 78 63 50 50 50 43 20 North Macedonia Tur
Slide 8: CSR: Key initiatives and accomplishments 2020
CSR: KEY INITIATIVES AND ACCOMPLISHMENTS 2020 ▪ Signatory of UN Global Compact ▪ VIG is listed in international sustainability index FTSE4Good and the Austrian VÖNIX ▪ Annual CSR meetings to promote best practise sharing and the exchange of individual Group initiatives Core business Customers Employ
Slide 9: Results 3M 2021 & Outlook
STRATEGY RESULTS 3M 2021 & OUTLOOK SEGMENTS APPENDIX Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards (IFRS). Rounding differences may occur when rounded amounts or percenta
Slide 10: Highlights 3M 2021
HIGHLIGHTS 3M 2021 Strong profit growth in the first quarter Gross written premium Profit before taxes Combined Ratio € 3,106.8mn € 128.0mn 95.2% GWP down by 0.4% (-€11.4mn) PBT up by 5.0% (+€6.1mn) Rather stable development (+0.1ppt) ▪ Strongest GWP growth by segment in ▪ PBT development mainly dri
Slide 11: Main market developments
Baltic MAIN MARKET DEVELOPMENTS states No. of companies: 3 Overview 3M 2021 Employees: 1,905 Market share: ~25% GWP: €130.6mn (-0.3%) Czech Republic PBT: €4.1mn (+31.8%) CoR: 97.0% (+4.9%p) No. of companies: 2* EE Employees: 4,925 Market share: ~31% Poland LV GWP: €479.6mn (+3.0%) PBT: €47.4mn (+4.3
Slide 12: Strong profit performance
STRONG PROFIT PERFORMANCE 3M 2021 Income statement €mn 3M 2021 3M 2020 +/- % Gross premiums written 3,106.8 3,118.2 -0.4 ▪ Premium decline mainly driven by single premium life insurance (-€75.0mn) and regular premium life insurance (-€5.4mn); adjusted Net earned premiums 2,416.3 2,488.3 -2.9 for FX
Slide 13: 3M 2021 Balance sheet
3M 2021 BALANCE SHEET IFRS (€mn) €mn 31.03.2021 31.12.2020 +/- % Intangible assets (incl. Right-of-Use Assets) 1,906 1,918 -0.6 Investments 34,597 34,901 -0.9 Unit- and index-linked investments 8,364 7,968 5.0 Reinsurers’ share in underwriting provisions 1,456 1,396 4.2 Receivables 1,912 1,699 12.5
Slide 14: Equity development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) -0.5% 100 -10 -112 5,286 5,262 -1 0 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M 2020 the period changes gains and losses payment of 3M 2021 14 RESULTS 3M 2021 & OUTLOOK VIG VIENNA INSURANCE GROUP
Slide 15: Gross written premiums slightly down by 0.4%
GROSS WRITTEN PREMIUMS SLIGHTLY DOWN BY 0.4% Overview by segments Gross written premiums (€mn; y-o-y change) ▪ Solid gross written premiums of €3.1bn despite reduced life business; further intentional decrease of life single premium business (-€75mn) ▪ Adjusted for FX effects, premium growth of 1.6%
Slide 16: Increased other property, motor and health business
INCREASED OTHER PROPERTY, MOTOR AND HEALTH BUSINESS Gross written premiums by lines of business (€mn; y-o-y change); incl. Central Functions MTPL Casco Other property Total premiums -0.4% 3M 2020 416 350 1,588 3,118 3,107 +0.3% +3.1% +5.0% MTPL 416 417 3M 2021 417 360 1,666 Casco 350 360 Other Prope
Slide 17: Group profit before taxes of €128.0mn up by 5.0%
GROUP PROFIT BEFORE TAXES OF €128.0MN UP BY 5.0% Increased profit contribution from nearly all segments Result before taxes (€mn; y-o-y change) ▪ AT: profit increase of €13.0mn driven by higher financial result and less expenses for insurance claims and benefits ▪ CZ and SK: PBT growth supported by
Slide 18: Combined ratio (P&C) at 95.2%
COMBINED RATIO (P&C) AT 95.2% Overall stable development P&C Combined Ratio development Overview by segments (y-o-y development net, %) ▪ Overall CoR development in Q1 fully in line with targeted +0.5%p +4.9%p -1.3%p -0.1%p 0.0%p -7.9%p CoR of ~95% for 2021 100.1 100.5 ▪ Strong CoR improvements in S
Slide 19: Investment split and bond portfolio overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW No substantial changes to investment strategy 3M 2021: Total €37.1bn Bond portfolio by rating1 in % 4.4% 1.5% 9.6% AAA AA A BBB Other 3M 2021 8.8 30.3 34.7 21.6 4,6 6.9% 12M 2020 9.0 30.0 35.4 21.6 4.0 70.5% 7.1% Bond portfolio by issuer in % 3M 2021 52.5
Slide 20: Financial result up by 29.3%
FINANCIAL RESULT UP BY 29.3% Less depreciation of investments and losses from disposal of investments compared to 3M 2020 in EUR ‘000 3M 2021 3M 2020 +/- % Current income 226,231 240,118 -5.8 ▪ Decrease in current income (-€13.9mn) not fully off-set by Income from appreciations 4,826 3,892 24.0 incr
Slide 21: Executive summary & outlook 2021
EXECUTIVE SUMMARY & OUTLOOK 2021 End of pandemic not yet foreseeable – global macroeconomic uncertainty remains high ▪ Excellent Q1 2021 result for the current environment ▪ Solid premium development despite COVID-19 ▪ Double-digit net profit growth with annualised earnings per share of €3.09 (+15.3
Slide 22: Segments
STRATEGY & OUTLOOK RESULTS 3M 2021 & OUTLOOK SEGMENTS APPENDIX Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards (IFRS). Rounding differences may occur when rounded amounts o
Slide 23: Austria
AUSTRIA Increased PBT and improved CoR GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -2.2% Gross premiums written 1,334.1 1,364.8 -2.2 ▪ Premium income down by €30.7mn Net earned premiums 848.9 896.7 -5.3 mainly due to the decreased single 1,365 1,334 Financial result* 150.6 133.4 12.9 premium lif
Slide 24: Czech Republic
CZECH REPUBLIC Positive premium and profit development GWP development (€mn) €mn 3M 2021 3M 2020 +/- % +3.0% Gross premiums written 479.6 465.8 3.0 ▪ Premium growth (+€13.9mn) driven by 480 Net earned premiums 342.4 342.8 -0.1 MTPL, casco and other property 466 Financial result* 21.4 21.3 0.3 85 Oth
Slide 25: Slovakia
SLOVAKIA Improved CoR supports profit growth GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -12.7% Gross premiums written 191.8 219.7 -12.7 ▪ Premiums down by €27.9mn mainly 220 Net earned premiums 136.5 167.3 -18.4 driven by declining life business Financial result 9.7 9.5 1.4 MTPL 42 192 Other in
Slide 26: Poland
POLAND Favourable premium and profit development GWP development (€mn) €mn 3M 2021 3M 2020 +/- % +3.8% Gross premiums written 325.3 313.5 3.8 ▪ Premium growth of €11.8mn driven 325 Net earned premiums 237.7 235.7 0.8 mainly by other property (+€7.8mn) and 313 Financial result 10.9 9.0 20.2 life sing
Slide 27: Romania
ROMANIA Roughly 51% premium increase in health insurance GWP development (€mn) €mn 3M 2021 3M 2020 +/- % +16.1% Gross premiums written 146.2 125.9 16.1 ▪ Sound premium growth of €20.3mn 146 Net earned premiums 110.0 90.5 21.5 coming from life insurance single Financial result 5.8 4.2 40.7 premium (+
Slide 28: Baltic states
BALTIC STATES Double-digit profit growth GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -0.3% Gross premiums written 130.6 131.0 -0.3 ▪ Premium income stable compared to the 131 Net earned premiums 99.4 96.7 2.8 same period of last year 131 Financial result 2.3 0.2 >100 Other income 1.5 1.1 32.0 ▪
Slide 29: Hungary
HUNGARY FX adjusted premium growth of +4.6% GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -1.8% Gross premiums written 96.9 98.7 -1.8 ▪ Currency-related decline in premiums 99 Net earned premiums 56.8 62.7 -9.3 97 ▪ PBT stable (+€0.5mn) Financial result 0.7 1.7 -61.6 MTPL 13 Other income 3.5 3.7 -
Slide 30: Bulgaria
BULGARIA Improved CoR and financial result support profit growth GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -7.5% Gross premiums written 57.6 62.2 -7.5 ▪ Decrease in premium income by 62 Net earned premiums 40.1 40.0 0.1 €4.6mn mainly coming from other Financial result 3.6 3.2 14.1 property (-€
Slide 31: Turkey/Georgia
TURKEY/GEORGIA FX adjusted premium growth of 24.1% GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -4.8% Gross premiums written 68.3 71.7 -4.8 ▪ Premiums down by €3.4mn; 72 Net earned premiums 27.7 32.0 -13.6 FX adjusted premium growth of 24.1% 68 Financial result 3.3 2.3 42.6 MTPL 11 Other income 7
Slide 32: Remaining CEE
REMAINING CEE Development mainly impacted by Ukraine and Serbia GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -2.4% Gross premiums written 123.8 126.8 -2.4 ▪ Remaining CEE: Albania (incl. Kosovo), 127 Net earned premiums 83.8 92.2 -9.1 Bosnia-Herzegovina, Croatia, Moldova, 124 North Macedonia, Ser
Slide 33: Other Markets
OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -0.1% Gross premiums written 77.3 77.4 -0.1 ▪ Premium income stable compared to 77 Net earned premiums 62.2 63.0 -1.2 the same period last year 77 Financial result 4.2 3.6 19.4 Other income 15.8 15.8 0.0 ▪ Result
Slide 34: Central Functions
CENTRAL FUNCTIONS Stable development in 3M 2021 GWP development (€mn) €mn 3M 2021 3M 2020 +/- % +8.9% Gross premiums written 526.8 483.9 8.9 ▪ Central Functions include VIG Holding, 527 Net earned premiums 371.0 361.1 2.7 VIG Re, Wiener Re, VIG Fund, corporate Financial result* -49.0 -69.2 -29.2 IT
Slide 35: Appendix
STRATEGY & OUTLOOK RESULTS 3M 2021 & OUTLOOK SEGMENTS APPENDIX Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards (IFRS). Rounding differences may occur when rounded amounts o
Slide 36: Managing Board of Vienna Insurance Group
MANAGING BOARD OF VIENNA INSURANCE GROUP As of 1 January 2021 Elisabeth Stadler, CEO Liane Hirner, CFO Peter Höfinger Gerhard Lahner Gabor Lehel Hartwig Löger Harald Riener Peter Thirring Credit: Ian Ehm 36 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 37: S&P rating affirmed on announced acquisition of Aegon CEE
S&P RATING AFFIRMED ON ANNOUNCED ACQUISITION OF AEGON CEE VIG remains best-rated company in the ATX Financial Risk Profile: Business Risk Profile: Very Strong Strong ▪ “VIG's prudent underwriting standards and ▪ “Market leading position in Austria and the Central and Eastern Europe (CEE) region“” ea
Slide 38: 3M 2021 Premiums by business lines and country (I)
3M 2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % Austria 110.9 112.1 -1.0 103.9 100.8 3.0 604.0 583.3 3.5 Czech Republic 84.6 79.2 6.8 64.2 60.9 5.4 152.7 144.3 5.8 Slovakia 40.8 41.6 -1.9 27.1 2
Slide 39: 3M 2021 Premiums by business lines and country (II)
3M 2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % Austria 339.2 342.0 -0.8 57.8 111.5 -48.2 118.3 115.1 2.8 Czech Republic 165.5 167.4 -1.1 7.9 9.5 -16.8 4.9 4.6 6.5 Slovakia 41.8 44.3 -5.8
Slide 40: 3M 2021 Country overview GWP / PBT / Combined Ratio
3M 2021 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net (in %) 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- %p Austria 1,334.1 1,364.8 -2.2 54.4 41.4 31.4 94.2 95.5 -1.3 Czech Republic 479.6 465.8 3.0 47.4 45.5 4.3 94.4 94.6
Slide 41: 3M 2021 Key financials
3M 2021 KEY FINANCIALS Overview of KPIs Net result for the period after taxes ROE before taxes and Earnings per share (€) and non-controlling interest (€mn) non-controlling interest (%) 99 11.1 11.6 3.09 83 86 9.3 2.61 2.68 3M 2019 3M 2020 3M 2021 3M 2019 3M 2020 3M 2021 3M 2019 3M 2020 3M 2021 41 A
Slide 42: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (20 May 2021) Current listings Ticker Rating Major Indices SELL Vienna ▪ Vienna Stock Exchange: VIG Standard & Poor’s: ATX 1 BUY Prague ▪ Bloomberg: VIG AV / VIG CP A+, stable outlook
Slide 43: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region* North America 35% Continental Europe 25% ~72% ~28% Austria 24% UK & Ireland 13% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) * Split of identified shares, May 2020 (Source: Investor Update) 43 APPENDIX VIG VIENNA
Slide 44: Appendix
44 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 45: Contact details / Financial calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2021* Phone: +43 (0)50 390 – 21920 Phone: +43 (0) 50 390 – 21151 Date Event nina.higatzberger@vig.com sylvia.machherndl@vig.com 09 Mar. 20
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
Vienna Insurance Group — Q1 2021 Earnings Presentation on 6ix