Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — 9M 2006 Earnings Presentation

27 slides from Vienna Insurance's earnings presentation, Nov 22, 2006

  1. Slide 1: Vienna Insurance Group – Focused on Growth in CEE and Austria

    Vienna Insurance Group – Focused on Growth in CEE and Austria 9M 2006 results

  2. Slide 2: Recent Developments

    Recent Developments Strengthening of market position in Poland 2 Increase of stake in CIGNA Acquisition of TU PZM Initial Position § VIG has hold a 63% majority stake in § Acquisition of 75% +1 share of TU PZM CIGNA STU S.A. since March 2006 insurance company § Consolidation as of Q2 06 § 25% stake

  3. Slide 3: Use of SPO Funds

    Use of SPO Funds Nearly 60% of SPO funds already used 3 SPO 2005 In Dec. 2005 VIG raised € 900mn (net) for the following purposes: § ~ 50% for CEE acquisitions § ~ 30% to support the strong organic growth of the CEE subsidiaries § cushion (Solvency II) Reported by 6M 06 § € 381mn for acquisitions €

  4. Slide 4: 9M 2006 Highlights (I)

    9M 2006 Highlights (I) Results gaining momentum in Q3 4 Major Developments P&C Premium Split § Double-digit growth in premium income – CEE is growth driver § Share of CEE subsidiaries in total Group premiums has reached a new high with 37.3% CEE of total premiums and 49.3% in P&C (after 35.0 Austria

  5. Slide 5: 9M 2006 Highlights (II)

    9M 2006 Highlights (II) Improving Combined Ratio 5 GWP Net Combined Ratio 22,1% 108.3 5008 14.4% 15,5% 4321 4101 100.7 99.8 3608 3778 97.0 96.2 97.0 3124 94.3 2002 2003 2004 2005 9M 05 9M 06 2001 2002 2003 2004 2005 9M 05 9M 06 Austrian HGB IFRS Austrian HGB IFRS

  6. Slide 6: 9M 2006 Highlights (III)

    9M 2006 Highlights (III) EPS already exceeding 2005 level despite SPO 6 Profit before Tax RoE before Tax 54.2% 240 22.9% 231 23.9 21.9 188 19.5 156 14.8 <100.0% 9.0 51 3.8 23 2002 2003 2004 2005 9M 05 9M 06 2002 2003 2004 2005 9M 05 9M 06 Austrian HGB IFRS Austrian HGB IFRS Net Profit after Tax and

  7. Slide 7: P&L and Balance Sheet

    Vienna Insurance Group- 9M 2006 results P&L and Balance Sheet

  8. Slide 8: 9M 2006 Income Statement

    9M 2006 Income Statement IFRS (€mn) 8 9M 2006 9M 2005 +/-% 1. Gross written premiums 4,320.6 3,778.1 14.4 2. Net earned premiums 3,586.8 3,094.0 15.9 3. Net investment income 538.6 451.0 19.4 4. Other income 38.7 25.2 53.7 Total income 4,164.2 3,570.3 16.6 6. Expenses for claims incurred -2,999.9 -2

  9. Slide 9: 9M 2006 Balance Sheet

    9M 2006 Balance Sheet IFRS (€mn) 9 30-Sep-06 31-Dec-05 +/- % Intangible assets 440 317 38.9 Total investments 16,737 15,163 10.4 Unit- and index-linked investments 2,095 1,762 18.9 Reinsurers’ share in technical provisions 972 840 15.8 Receivables 1,002 857 16.9 Deferred tax assets 21 12 75.4 Other

  10. Slide 10: P&L Major Items – Gross Written Premiums

    9M 2006 P&L Major Items – Gross Written Premiums Substantial growth in CEE 10 § Group GWP increased by 14.4% to € 4,321mn § Austria: total GWP up 4.2% to reach €2,550mn. Life up 159.0 199.5 Other 2.4% at €1,149mn affected by volatility in single premiums 1,611.4 CEE while current premiums show sound

  11. Slide 11: VIG's GWP Split by Region

    VIG’s GWP Split by Region Other CEE gaining weight 11 GWP by Geography Other Other Other CEE 5.3% 3.7% 5.9% Other CEE 12.7% Slovakia Austria Austria 6.7% 64.8% 59.0% Slovakia 6.6% Czech Republic 17.3% Czech Republic 17.9% 9M 2005 Total: € 3.78bn 9M 2006 Total: € 4.32bn

  12. Slide 12: P&L Major Items – Expenses for Claims Incurred

    9M 2006 P&L Major Items – Expenses for Claims Incurred Loss ratio normalising in Q3 after extraordinary 1st HY damage 12 § After seasonal effects in HY Group 9M loss ratio reducing to 67.0%. § Austrian loss ratio slightly improving compared to 1st HY06 (snow pressure) and y/y as a consequence of dec

  13. Slide 13: P&L Major Items – Operating Expenses

    9M 2006 P&L Major Items – Operating Expenses Costs impacted by new acquisitions (€mn) 13 § Marked decline of Group cost ratio by 1% pt. to 30.0% despite inclusion of new CEE companies § Austria with improving cost development reflecting ongoing minor cost initiatives § Sharp reduction by 6% pts of c

  14. Slide 14: P&L Major Items – Net Investment Income

    9M 2006 P&L Major Items – Net Investment Income Supported by trading gains during all 3 quarters (€mn) 14 § Increase in Net Investment Income by 19.4% Net Investment Income to €538.6mn as a result mainly of trading 13.7 15.7 64.3 gains in Austria; this also includes EUR 47.7 Other 14.2mn from inclus

  15. Slide 15: Financial Targets

    Financial Targets Forecast raised for 2006 and 2007 and new medium term target 15 § Improving Q3 gives confidence to reach PBT of about €310mn in FY 2006 § Based on overall Group development management is confident to reach PBT of about €370mn in 2007 § VIG expects to achieve PBT of about €470mn in

  16. Slide 16: Appendix

    Vienna Insurance Group- 9M 2006 results Appendix

  17. Slide 17: 9M 2006 P&L – Business Segments (Property & Casualty)

    9M 2006 P&L – Business Segments Property & Casualty, IFRS (€mn) 17 9M 2006 9M 2005 +/-% 1. Gross written premiums 2,413.8 1,998.9 20.8 2. Net earned premiums 1,690.5 1,330.0 27.1 3. Net investment income 94.6 58.8 60.9 4. Other income 26.2 17.5 49.7 Total income 1,811.3 1,406.3 28.8 6. Expenses for

  18. Slide 18: 9M 2006 P&L – Business Segments (Life)

    9M 2006 P&L – Business Segments Life, IFRS (€mn) 18 9M 2006 9M 2005 +/-% 1. Gross written premiums 1,681.8 1,560.7 7.8 2. Net earned premiums 1,673.5 1,548.1 8.1 3. Net investment income 436.2 377.3 15.6 4. Other income 12.5 7.7 62.7 Total income 2,122.2 1,933.1 9.8 6. Expenses for claims incurred -

  19. Slide 19: 9M 2006 P&L – Business Segments (Health)

    9M 2006 P&L – Business Segments Health, IFRS (€mn) 19 9M 2006 9M 2005 +/-% 1. Gross written premiums 225.0 218.5 3.0 2. Net earned premiums 222.8 215.9 3.2 3. Net investment income 7.9 15.0 -47.3 4. Other income 0.0 0.0 n/a Total income 230.7 230.9 -0.1 6. Expenses for claims incurred -189.8 -189.4

  20. Slide 20: 9M 2006 P&L - Split by Regions (I)

    9M 2006 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 20 Austria Czech Republic Slovakia 9M 2006 9M 2005 +/-% 9M 2006 9M 2005 +/-% 9M 2006 9M 2005 +/-% 1. Gross written premiums 2,550.2 2,447.5 4.2 775.3 654.5 18.5 287.1 252.7 13.6 2. Net earned premiums 2,216.2 2,116.1 4.7 595.0 487.9 22

  21. Slide 21: 9M 2006 P&L - Split by Regions (II)

    9M 2006 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 21 Other CEE Other TOTAL 9M 2006 9M 2005 +/-% 9M 2006 9M 2005 +/-% 9M 2006 9M 2005 +/-% 1. Gross written premiums 549.0 223.9 >100 159.0 199.5 -20.3 4,320.6 3,778.1 14.4 2. Net earned premiums 433.2 145.4 >100 139.0 180.8 -23.1 3,586.

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

    Change in Goup Shareholders‘ Equity / APE IFRS (€mn) 22 1.1. - 30.9.2006 1.1. - 30.9.2005 Equity as of 1 January 2,059,332 913,778 Currency changes 2,066 5,659 Changes to shares 2,113 -4,672 Unrealised gains and losses on financial -56,687 90,682 instruments available for sale Profit for the quarter

  23. Slide 23: 9M 2006 Exchange Rates

    9M 2006 Exchange Rates 23 9M 2006 9M 2005 Balance Sheet P&L Balance Sheet P&L Country Curr. EUR EUR EUR EUR Bulgaria BGN 0.511300 0.511300 0.511274 0.511300 Croatia HRK 1.475579 1.460814 0.134535 0.135894 Liechtenstein CHF 0.629683 0.638430 0.642632 0.645745 Poland PLN 0.251807 0.255649 0.255200 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 Geographical Split 0.2% Others 3.8% UK & Ireland 5.3% North America 82.9 % Austria 7.8% Continental Europe

  26. Slide 26: Contact Details

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

  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

Vienna Insurance Group — 9M 2006 Earnings Presentation on 6ix