Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Baader Bank Conference 2021
47 slides from Vienna Insurance's conference presentation, Sep 23, 2021
Slide 1: Investor Presentation Half-year results 2021
VIENNA INSURANCE GROUP Investor Presentation Half-year results 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 6M 2021 More than S&P Rating 22 million A+ 267% including transitionals (AT) and customers with stable outlook based on Partial Internal Model Since
Slide 3: 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 4: Strong business profile and successful strategy
STRONG BUSINESS PROFILE AND SUCCESSFUL STRATEGY Five-pillar sustainability Well diversified VIG 25: strategy: Proven Strong balance M&A - based on portfolio over new strategy Core business business sheet and strong footprint, countries and programme Customers model prudent VIG follows lines of 2021-
Slide 5: VIG 25: Building on the foundations of previous years
VIG 25: BUILDING ON THE FOUNDATIONS OF PREVIOUS YEARS 2011 2016 2021 STRATEGY 2011 Specifying the strategy for sustainable growth in primary AGENDA 2020 insurance Management programme Initiatives implemented as a VIG 25 continuation of Strategy 2011 Strategy programme for VIG Group jointly developed
Slide 6: Trends and development analysis reveals five main tasks
TRENDS AND DEVELOPMENT ANALYSIS REVEALS FIVE MAIN TASKS Latent Evolution demand continues Main tasks to address market and customer demands instead of to be a defining revolution feature 1 Continue and intensify work on digital transformation Creation of (digital) Low interest Achieve operational ex
Slide 7: VIG 25 initiatives to optimise, enhance and enlarge the business model
VIG 25 INITIATIVES TO OPTIMISE, ENHANCE AND ENLARGE THE GROUP’S SUCCESSFUL BUSINESS MODEL New ways of customer 1 Digital transformation 2 Operative excellence 3 4 Risk provision 5 Sustainability acquisition and retention OPTIMISE ENHANCE ENLARGE Productivity and efficiency Extension of customer Expa
Slide 8: VIG 25 Group targets
VIG 25 GROUP TARGETS Focus on financial stability and profitability, customer proximity, growth and sustainability 1 Expansion of the Group’s Achieving at least a top-three position in each CEE market (except Slovenia) taking into account the corresponding country portfolio leading position in CEE ▪
Slide 9: Strategy / Results 6M 2021 & Outlook / Segments / Appendix
STRATEGY RESULTS 6M 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 6M 2021
HIGHLIGHTS 6M 2021 VIG well on track to reach full-year targets 2021 despite substantial weather related claims Gross written premium Profit before taxes Combined Ratio € 5,772.9mn € 251.4mn 95.2% GWP up by 3.5% (+€195.6mn) PBT up by 25.0% (+€50.2mn) Improved by 0.3%p due to decreased claims ratio ▪
Slide 11: Main market developments
Baltic MAIN MARKET DEVELOPMENTS states No. of companies: 3 Overview 6M 2021 Employees: 1,905 Market share: ~25% GWP: €259mn (+3.1%) Czech Republic PBT: €10mn (+17.6%) CoR: 96.4% (+1.6%p) No. of companies: 2* EE Employees: 4,925 Market share: ~31% Poland LV GWP: €946mn (+7.5%) PBT: €97mn (-10.3%) LT
Slide 12: Favourable premium and combined ratio development
FAVOURABLE PREMIUM AND COMBINED RATIO DEVELOPMENT 6M 2021 Income statement €mn 6M 2021 6M 2020 +/- % Gross premiums written 5,772.9 5,577.4 3.5 ▪ Premium growth in all lines of business except life single premium; main drivers are other property (+€156.4mn) and motor business Net earned premiums 4,8
Slide 13: 6M 2021 Balance sheet
6M 2021 BALANCE SHEET IFRS (€mn) €mn 30.06.2021 31.12.2020 +/- % Intangible assets (incl. Right-of-Use Assets) 1,909 1,918 -0.5 Investments 34,562 34,901 -1.0 Unit- and index-linked investments 8,367 7,968 5.0 Reinsurers’ share in underwriting provisions 1,548 1,396 10.9 Receivables 1,807 1,699 6.3
Slide 14: Equity development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) +5.9% 39 -105 300 5,599 -111 0 191 5,286 Equity as Profit for Issuance of Currency AFS unrealised Dividend Other Equity as of 12M 2020 the period hybrid capital* changes gains and losses payment of 6M 2021 * RT1 instrument 14 RESUL
Slide 15: Top-line growth supported by strong second quarter
TOP-LINE GROWTH SUPPORTED BY STRONG SECOND QUARTER Overview by segments Gross written premiums (€mn; y-o-y change) ▪ Positive premium developments in almost all segments lead to growth of 3.5% to €5.8bn ▪ Strong growth in Czech Republic (+€66mn) and Poland (+€50mn) mainly driven by motor and other p
Slide 16: Growth in all lines of business except life single premium
GROWTH IN ALL LINES OF BUSINESS EXCEPT LIFE SINGLE PREMIUM Gross written premiums by lines of business (€mn; y-o-y change); incl. Central Functions MTPL Casco Other property Total premiums +3.5% 6M 2020 781 661 2,734 5,773 5,577 +3.7% +7.3% +5.7% 810 MTPL 781 6M 2021 810 709 2,890 709 Casco 661 Othe
Slide 17: Group profit before taxes of €251.4mn up by 25.0%
GROUP PROFIT BEFORE TAXES OF €251.4MN UP BY 25.0% Profit growth in nearly all segments Result before taxes (€mn; y-o-y change) ▪ CZ: Declining profit before taxes (-€11.1mn) driven by acquisition costs due to increased new business in life ▪ Baltic states: double-digit growth rate supported by bette
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 6M 2021 in line with +3.5%p +1.6%p -0.7%p -2.6%p -0.2%p +0.3%p targeted CoR of ~95% for 2021 ▪ Claims ratio improved; higher weather re
Slide 19: Investment split and bond portfolio overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Stable portfolio mix 6M 2021: Total €37.5bn Bond portfolio by rating1 in % 4.7% 1.5% 11.1% AAA AA A BBB Other 6M 2021 8.9 30.0 34.1 22.0 5.0 6.6% 12M 2020 9.0 30.0 35.4 21.6 4.0 69.0% 7.1% Bond portfolio by issuer in % 6M 2021 52.7 5.9 16.7 24.7 Bonds Equ
Slide 20: Financial result
FINANCIAL RESULT Reduced total expenses cannot offset lower total income in EUR ‘000 6M 2021 6M 2020 +/- % Current income 463,786 476,104 -2.6 ▪ Decline in income from the disposal of investments (-€81.6mn) Income from appreciations 7,669 12,384 -38.1 due to higher realised gains on bonds and loans
Slide 21: Solvency ratio of VIG as of 6M 2021 at 267%
SOLVENCY RATIO OF VIG AS OF 6M 2021 AT 267% Solvency ratio excluding transitionals at 235% (YE 2020: 195%) in €mn 267% 6M 2021 238% YE 2020 10,137 8,780 3,688 3,803 YE 2020 6M 2021 Solvency II Own Funds SCR 21 RESULTS 6M 2021 & OUTLOOK VIG VIENNA INSURANCE GROUP
Slide 22: VIG in line to achieve announced targets for 2021
VIG IN LINE TO ACHIEVE ANNOUNCED TARGETS FOR 2021 End of pandemic not yet foreseeable – global uncertainty remains ▪ Solid 6M 2021 results for the current environment ▪ Premiums and profit before taxes back at pre-crisis levels ▪ VIG confident to achieve announced targets Gross written Profit before
Slide 23: Strategy / Results 6M 2021 & Outlook / Segments / Appendix
STRATEGY RESULTS 6M 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 24: Austria
AUSTRIA Increased PBT and improved CoR GWP development (€mn) €mn 6M 2021 6M 2020 +/- % -1.6% Gross premiums written 2,279.7 2,316.2 -1.6 ▪ Premium income down by €36.4mn Net earned premiums 1,651.4 1,712.1 -3.5 mainly due to the decreased single 2,316 2,280 Financial result* 299.7 301.9 -0.7 premium
Slide 25: Czech Republic
CZECH REPUBLIC Positive premium and strong CoR development GWP development (€mn) €mn 6M 2021 6M 2020 +/- % +7.5% Gross premiums written 945.6 879.5 7.5 ▪ Premium growth (+€66mn) coming 946 Net earned premiums 694.4 656.6 5.8 from all lines of business except life Financial result* 40.5 36.0 12.5 sin
Slide 26: Slovakia
SLOVAKIA Improved CoR supports profit growth GWP development (€mn) €mn 6M 2021 6M 2020 +/- % -4.1% Gross premiums written 367.5 383.2 -4.1 ▪ Premiums down by €15.8mn mainly 383 Net earned premiums 285.2 300.4 -5.0 driven by decreasing life single 367 Financial result 21.1 20.5 2.9 premium business M
Slide 27: Poland
POLAND Favourable premium development GWP development (€mn) €mn 6M 2021 6M 2020 +/- % +8.5% Gross premiums written 640.7 590.5 8.5 ▪ Premium growth of €50.2mn driven 641 Net earned premiums 480.7 453.5 6.0 mainly by other property (+€21.3mn) Financial result 16.7 22.0 -24.2 and life single premium (
Slide 28: Romania
ROMANIA Sound premium growth and stable PBT development GWP development (€mn) €mn 6M 2021 6M 2020 +/- % +16.3% Gross premiums written 266.4 229.1 16.3 ▪ Premium growth of €37.3mn coming 266 Net earned premiums 206.3 173.5 18.9 from all lines of business except life Financial result 11.2 8.0 40.3 reg
Slide 29: Baltic states
BALTIC STATES Premium and profit growth GWP development (€mn) €mn 6M 2021 6M 2020 +/- % +3.1% Gross premiums written 258.7 251.0 3.1 ▪ Increased premium income of €7.7mn 259 Net earned premiums 199.2 190.9 4.4 based on growth in all lines of business 251 Financial result except MTPL 5.7 2.8 >100 52
Slide 30: Hungary
HUNGARY Solid premium and profit development GWP development (€mn) €mn 6M 2021 6M 2020 +/- % +14.5% Gross premiums written 175.9 153.7 14.5 ▪ Premium growth in all lines of business 176 Net earned premiums 125.3 109.1 14.9 Financial result 1.5 4.3 -64.6 ▪ PBT stable (+€0.3mn) 154 25 Other income 5.4
Slide 31: Bulgaria
BULGARIA Premium growth and excellent CoR GWP development (€mn) €mn 6M 2021 6M 2020 +/- % +2.3% Gross premiums written 114.2 111.7 2.3 ▪ Increase in premium income by €2.6mn 114 Net earned premiums 80.1 76.2 5.1 mainly coming from motor (+€4.8mn) 112 Financial result 6.9 6.5 6.0 MTPL 16 18 Other inc
Slide 32: Turkey/Georgia
TURKEY/GEORGIA FX adjusted premium growth of 29.2% GWP development (€mn) €mn 6M 2021 6M 2020 +/- % -0.9% Gross premiums written 126.2 127.4 -0.9 ▪ Slight decrease of premium income 127 Net earned premiums 56.2 60.0 -6.3 by €1.1mn; FX adjusted premium 126 Financial result 6.0 4.3 39.1 growth of 29.2%
Slide 33: Remaining CEE
REMAINING CEE Solid contribution to premium and profit development GWP development (€mn) €mn 6M 2021 6M 2020 +/- % +9.3% Gross premiums written 252.9 231.3 9.3 ▪ Remaining CEE: Albania (incl. Kosovo), 253 Net earned premiums 176.0 165.3 6.5 Bosnia-Herzegovina, Croatia, Moldova, Financial result 16.5
Slide 34: Other markets
OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 6M 2021 6M 2020 +/- % +0.7% Gross premiums written 142.9 142.0 0.7 ▪ Premium income stable compared to 143 Net earned premiums 117.5 117.1 0.3 the same period last year 142 Financial result 10.0 8.4 18.8 Other income 16.7 17.7 -5.5 ▪
Slide 35: Central Functions
CENTRAL FUNCTIONS Development driven by provisions and lower financial result GWP development (€mn) €mn 6M 2021 6M 2020 +/- % +9.1% Gross premiums written 1,014.8 930.6 9.1 ▪ Central Functions include VIG Holding, 1,015 Net earned premiums 750.7 715.0 5.0 VIG Re, Wiener Re, VIG Fund, corporate Finan
Slide 36: Strategy / Results 6M 2021 & Outlook / Segments / Appendix
STRATEGY RESULTS 6M 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 37: Managing Board of Vienna Insurance Group
MANAGING BOARD OF VIENNA INSURANCE GROUP As of 1 January 2021 Elisabeth Stadler, CEO Liane Hirner, CFRO Peter Höfinger Gerhard Lahner, COO Gabor Lehel, CIO Hartwig Löger, Harald Riener Peter Thirring, CTO Deputy CEO Credit: Ian Ehm 37 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 38: Combination of C-levels and country responsibilities
THE COMBINATION OF C-LEVELS AND COUNTRY RESPONSIBILITIES ENSURES THE EFFECTIVE MANAGEMENT OF THE GROUP STADLER HIRNER THIRRING LAHNER LEHEL Chief Executive Officer Chief Finance & Risk Officer Chief Technical Officer Chief Operations Officer Chief Innovation Officer Estonia Region North Poland Ukrai
Slide 39: 6M 2021 Premiums by business lines and country (I)
6M 2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 6M 2021 6M 2020 +/- % 6M 2021 6M 2020 +/- % 6M 2021 6M 2020 +/- % Austria 191.5 191.8 -0.1 179.2 172.4 3.9 925.4 901.1 2.7 Czech Republic 175.5 157.6 11.4 136.9 122.5 11.8 276.2 255.3 8.2 Slovakia 78.0 77.2 1.0 5
Slide 40: 6M 2021 Premiums by business lines and country (II)
6M 2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 6M 2021 6M 2020 +/- % 6M 2021 6M 2020 +/- % 6M 2021 6M 2020 +/- % Austria 632.0 638.1 -1.0 119.7 187.8 -36.3 232.0 225.0 3.1 Czech Republic 330.8 318.6 3.8 16.2 16.8 -3.6 9.9 8.7 14.4 Slovakia 98.1 85.5 14
Slide 41: 6M 2021 Country overview GWP / PBT / Combined ratio
6M 2021 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net (in %) 6M 2021 6M 2020 +/- % 6M 2021 6M 2020 +/- % 6M 2021 6M 2020 +/- %p Austria 2 279.7 2 316.2 -1.6 105.8 104.0 1.8 93.7 94.4 -0.7 Czech Republic 945.6 879.5 7.5 96.9 108.0 -10.3 91.5 9
Slide 42: 6M 2021 Key financials
6M 2021 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and ROE before taxes and non-controlling interest (€mn) non-controlling interest (%) 186 11.0 151 9.4 9.1 126 6M 2019 6M 2020 6M 2021 6M 2019 6M 2020 6M 2021 Earnings per share (€) Book value per share* (€) 2.91 32.89 33.7
Slide 43: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (7/9/2021) 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 ATX
Slide 44: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region* North America 34% Austria 27% ~72% ~28% Continental Europe 24% UK & Ireland 12% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) *: Split of identified shares, May 2021 (Source: Investor Update) 44 APPENDIX VIG VIENNA
Slide 45: Appendix
45 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 46: 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 47: 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