Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — Non-Deal Roadshow (September 2007)

40 slides from Vienna Insurance's roadshow presentation, Sep 20, 2007

  1. Slide 1: Vienna Insurance Group - Extending the CEE insurance play

    Vienna Insurance Group - Extending the CEE insurance play Roadshow Edinburgh, 20 September 2007

  2. Slide 2: Purest CEE Insurance Play

    Purest CEE Insurance Play Only Vienna Insurance Group widely captures CEE potential 2 Footprint CEE Premiums as % of Total Group Premiums 37.5% VIG 31.1% 28.7% 2006 2005 12.6% UNIQA 10.2% 2004 10.1% 3.6% Allianz 3.3% 3.0% 2.6% VIG‘s unique share of CEE ING 2.3% business growing fastest 2.0% (6M 2007

  3. Slide 3: VIG has excellent CEE market position

    VIG has excellent CEE market position VIG is early mover in CEE 3 Overview of Core Markets Details Czech Rep. Slovakia Hungary Poland § leading market position in 1990 1990 1996 1998 nearly all core markets Pop.: 10.2 mn Pop.: 5.4 mn Pop.: 10.1 mn Pop.: 38.5 mn § strong market positions GDP/Cap.: $

  4. Slide 4: VIG is well diversified

    VIG is well diversified Broad portfolio of insurance markets with different dynamics 4 Market Number of Position Countries A BG GEO RO CZ SK TOP 3 6 SER TOP 5 2 HR PL TOP 10 2 H TR BE RUS >10 5 UA SLO 6% 12% 18% 24% 30% 36% 42% core markets Average Insurance Market Growth (2001-2006) new markets Sou

  5. Slide 5: CEE Region Offers Double Leverage

    CEE Region Offers Double Leverage Sustainable growth through GDP and insurance penetration 5 6,000 GDP Growth Insurance Insurance Premium per Capita (USD) 2004-2006F Penetration 20061 Switzerland CEE2 4.1% 3.3% Netherlands GB Austria 2.0% 6.1% Belgium 4,000 Denmark EU 15 1.7% 9.3% Austria France Ukr

  6. Slide 6: CEE – Underpenetrated in Insurance

    donau\Analyst Presentation\16 Analyst Presentation 17-Nov-2005.ppt CEE – Underpenetrated in Insurance Insurance Density, 2006 (Premiums per Capita) 6 $3,500 3.305 Life $3,000 Non-Life $2,500 2.397 $2,000 $1,500 1.101 $1,000 520 $500 376 337 310 308 173 101 94 89 77 60 $0 1 EU-15 A SLO CZ H SK PL HR

  7. Slide 7: CEE – a Long-term Growth Perspective

    CEE – a Long-term Growth Perspective Markets need at least 20 years to catch up with the Austrian level of 2000 7 Austrian Insurance market CEE insurance market in 2006 Premium Insurance Density GDP/Capita Density GDP/Capita Year Income penetration Penetration (EUR) (EUR (EUR) (EUR) (EUR bn) (%) 196

  8. Slide 8: Acquisition Approach: A Success Story

    Acquisition Approach: A Success Story Excellent track record in integrating CEE subsidiaries into the VIG 8 Acquisition Process Track Record § Disclosure level of target company § 2-4 years to reach break-even, accelerated growth of profitability thereafter § What does the company add to help us Bas

  9. Slide 9: Acquisition of Asirom

    Acquisition of Asirom Strengthening VIG´s no.1 position in dynamic Romanian market 9 Acquisition of Asirom1 Romanian Insurance Market Population (mn) 21.6 GDP/Capita 5,463 USD Penetration 1.7% 30 % Density 94.5 USD Market Growth (01-06, CAGR) 42.8% Asirom § listed Non-life and Life insurance company

  10. Slide 10: VIG Enters two New Promising Markets

    VIG Enters two New Promising Markets Turkey and Albania offer high growth potential 10 GDP Growth Penetration Density 2006 2004-2006F2 2006 (USD) EU 15 1.7% 9.3% 3,305 Austria 2.0% 6.1% 2,397 CEE1 4.2% 3.3% 173 Turkey 7.5% 1.6% 89 Albania 5.5% 0.5% 14 Turkish market data Albanian market data3 Popula

  11. Slide 11: Turkey/Albania Acquisition Details

    Turkey/Albania Acquisition Details Ray Sigorta and Sigma 11 Acquisition of Ray Sigorta Acquisition of Sigma1 TBIH TBIH (60% owned by VIG) (60%owned by VIG) ~75% ≥ 60% Ray Sigorta Sigma Sh.a § listed non-life insurance company with € 136mn § founded in 1998, non-life insurance company with premium vo

  12. Slide 12: VIG – Distribution Is Key (I)

    VIG – Distribution Is Key (I) Multi-brand policy to retain loyalty 12 Multi-brand Features § VIG is umbrella brand § Local companies retain individual brands § Strong brand awareness in local markets § Retain loyalty of employees and management, customers and local agents with well established brand

  13. Slide 13: VIG – Distribution is Key (II)

    VIG – Distribution is Key (II) Multi-channel strategy to get access to customers 13 Distribution Split Strong Multi-Channel Distribution § Austria Tied Roughly 30/30/30% split between tied agents agents/ bank distribution/ brokers etc. in Financial new business advisors Bank distribution § CEE Broke

  14. Slide 14: VIG in Austria

    VIG in Austria Attractive franchise plus catch up potential in life insurance 14 Situation in Austria Details Life Premium per Capita (USD) § Leading market position in all business lines Source: SwissRe, Sigma 2198 - #1 in property & casualty with 21% market 2006 share 2000 - #1 in life with 23% ma

  15. Slide 15: Vienna Insurance Group - 6M 2007 results Highlights

    Vienna Insurance Group- 6M 2007 results Highlights

  16. Slide 16: 6M 2007 Highlights (I)

    6M 2007 Highlights (I) GWP up by 15.3%; profitability rising significantly 16 GWP Profit before Tax 321 5,882 15.3% 50.3% 5,008 240 4,101 215 3,493 3,029 156 143 2,636 125 2004 2005 2006 6M 05 6M 06 6M 07 2004 2005 2006 6M 05 6M 06 6M 07 IFRS IFRS Net Profit after Tax and Minorities Net Combined Rat

  17. Slide 17: 6M 2007 Highlights (II)

    6M 2007 Highlights (II) Sound increase in EPS 17 EPS (annualised) ROE before Tax 26.2 3.06 21.9 2.48 19.5 2.27 2.17 16.9 2.07 14.8 13.2 1.41 2004 2005 2006 6M 05 6M 06 6M 07 2004 2005 2006 6M 05 6M 06 6M 07 IFRS IFRS

  18. Slide 18: Financial Targets

    Financial Targets Target for 2007 to be exceeded; dividend increase of 25% 18 VIG’s financial targets Comments Profit before Tax Targets in € mn § Based on the 1st HY results the 2007 target of CAGR: ~ 18% 520 - 530 € 410mn will be exceeded 470 - 480 § For the business year 2007 management will 410+

  19. Slide 19: 6M 2007 results P&L and Balance Sheet

    Vienna Insurance Group- 6M 2007 results P&L and Balance Sheet

  20. Slide 20: 6M 2007 Income Statement

    6M 2007 Income Statement IFRS (€mn) 20 6M 2007 6M 2006 +/-% 1. Gross written premiums 3.493,1 3.029,3 15,3 2. Net earned premiums 2.829,1 2.411,3 17,3 1 3. Net investment income 553,2 361,1 53,2 4. Other income 20,7 29,0 -28,9 Total income 3.403,0 2.801,4 21,5 6. Expenses for claims incurred -2.420,

  21. Slide 21: 6M 2007 Balance Sheet

    6M 2007 Balance Sheet IFRS (€mn) 21 6M 2007 2006 +/- % Intangible assets 496 461 7.4 Total investments 18,912 17,260 9.6 Unit- and index-linked investments 2,825 2,341 20.7 Reinsurers’ share in technical provisions 1,188 963 23.3 Receivables 1,220 984 24.0 Deferred tax assets 38 24 63.1 Other assets

  22. Slide 22: P&L Major Items – Gross Written Premiums

    6M 2007 P&L Major Items – Gross Written Premiums Largely growing above market in Austria and CEE (€ mn) 22 § Group GWP increased by 15.3% to € 3,493mn 126.8 § Austria: total GWP up 5.8% to reach € 1,958mn. Life up 9.6% at 118.0 € 895.7mn with sound growth in subsidised pensions vs. weaker 1,408.6 Ot

  23. Slide 23: GWP Split by Region

    GWP Split by Region Share of Other CEE markets going up significantly 23 GWP by Geography 6M 05 GWP by Geography 6M 06 GWP by Geography 6M 07 Other CEE Other Other Other 5.6% 5.4% 3.9% 3.6% Other CEE Other CEE Slovakia 10.9% 16.8% Austria 6.9% Austria Slovakia 56.1% Austria 65.5% 6.6% 61.0% Slovakia

  24. Slide 24: P&L Major Items – Expenses for Claims Incurred

    6M 2007 P&L Major Items – Expenses for Claims Incurred Loss ratio reduced substantially 24 § Group loss ratio (net) with marked improvement by 2.9% to 64.7% despite €10mn net effect from Kyrill storm in Q1 2007 § Austrian loss ratio lower by 1.9% pts at 66.9% thus reaching regular level § Czech Repu

  25. Slide 25: P&L Major Items – Operating Expenses

    6M 2007 P&L Major Items – Operating Expenses Cost ratio impacted by strong business growth 25 § Group cost ratio (net) up at 31.3%, driven by acquisition costs: VIG does not account for DACs which affects cost ratio roughly by 2% pts (premium income is high at start of the year and leads to higher d

  26. Slide 26: P&L Major Items – Net Investment Income

    6M 2007 P&L Major Items – Net Investment Income Sound growth in line with business expansion (€mn) 26 § Increase in Group Net Investment Income by 53.2% to Net Investment Income € 553.2mn 11.1 63.3 § Austria grew by 53.0% influenced by trading gains, full 9.3 Other consolidation of Austrian life sub

  27. Slide 27: 6M 2007 results Appendix

    Vienna Insurance Group- 6M 2007 results Appendix

  28. Slide 28: P&L – Business Segments (Property & Casualty)

    6M 2007 P&L – Business Segments Property & Casualty, IFRS (€mn) 28 6M 2007 6M 2006 +/-% 1. Gross written premiums 1,976.2 1,721.5 14.8 2. Net earned premiums 1,331.9 1,118.3 19.1 3. Net investment income 93.3 56.8 64.2 4. Other income 11.9 14.4 -17.4 Total income 1,437.2 1,189.6 20.8 6. Expenses for

  29. Slide 29: P&L – Business Segments (Life)

    6M 2007 P&L – Business Segments Life, IFRS (€mn) 29 6M 2007 6M 2006 +/-% 1. Gross written premiums 1,362.0 1,157.1 17.7 2. Net earned premiums 1,344.3 1,144.6 17.4 3. Net investment income 445.8 292.2 52.6 4. Other income 8.7 14.6 -40.2 Total income 1,798.8 1,451.4 23.9 6. Life benefits -1,423.9 -1,

  30. Slide 30: P&L – Business Segments (Health)

    6M 2007 P&L – Business Segments Health, IFRS (€mn) 30 6M 2007 6M 2006 +/-% 1. Gross written premiums 155.0 150.8 2.8 2. Net earned premiums 152.9 148.4 3.0 3. Net investment income 14.1 12.1 16.5 4. Other income 0.0 0.0 -100.0 Total income 166.9 160.5 4.0 6. Expenses for claims incurred -135.3 -131.

  31. Slide 31: P&L - Split by Regions (I)

    6M 2007 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 31 Austria Czech Republic Slovakia 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 1. Gross written premiums 1,957.7 1,850.4 5.8 577.1 532.7 8.3 243.8 199.6 22.1 2. Net earned premiums 1,611.2 1,524.1 5.7 445.8 392.4 13.

  32. Slide 32: P&L - Split by Regions (II)

    6M 2007 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 32 Other CEE Other TOTAL 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 1. Gross written premiums 587.7 328.7 78.8 126.8 118.0 7.5 3,493.1 3,029.3 15.3 2. Net earned premiums 470.2 251.3 87.1 112.0 103.9 7.8 2,829.1 2,

  33. Slide 33: Results by Country

    6M 2007 Results by Country IFRS (€mn) 33 Non-Life Life Total Profit before Tax Combined Ratio 6M 2007 6M 2006 6M 2007 6M 2006 6M 2007 6M 2006 6M 2007 6M 2006 6M 2007 6M 2006 Austria 1,062.0 1,032.9 895.7 817.5 1,957.7 1,850.4 138.5 101.9 94.3% 95.8% Czech Rep. 442.3 417.7 134.8 115.0 577.1 532.7 35.

  34. Slide 34: Change in Group Shareholders' Equity / APE

    Change in Group Shareholders‘ Equity / APE IFRS 34 1.1. - 30.06.2007 1.1. - 30.06.2006 Equity as of 1 January 2.283.208 2.059.332 Currency Changes -1.957 -2.999 Changes in consolidation 39.396 15.995 Capital Increase - - Unrealised Gains and Losses on financial -69.667 -61.274 instruments available

  35. Slide 35: Q2 2007 Income Statement

    Q2 2007 Income Statement IFRS (€mn) 35 Q2 2007 Q2 2006 +/-% 1. Gross written premiums 1,474.8 1,277.1 15.5 2. Net earned premiums 1,364.8 1,164.0 17.2 3. Net investment income1 347.9 199.1 74.8 4. Other income 11.8 13.2 -10.9 Total income 1,724.4 1,376.3 25.3 6. Expenses for claims incurred -1,235.8

  36. Slide 36: 6M 2007 Exchange Rates

    6M 2007 Exchange Rates 36 6M 2007 6M 2006 Balance Sheet P&L Balance Sheet P&L Country Curr. EUR EUR EUR EUR Bulgaria BGN 0.511300 0.511300 0.511300 0.511300 Croatia HRK 0.136921 0.135913 0.138036 0.136773 Liechtenstein CHF 0.604120 0.612838 0.638081 0.640615 Poland PLN 0.265414 0.260139 0.246633 0.2

  37. Slide 37: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 105,000,000 37 Shareholder Structure 28.7 % Free Float 71.3 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  38. Slide 38: Shareholder Structure (II)

    Shareholder Structure (II) 38 Free Float Geographical Split 0.3% Others 32.0 % Austria 20.9% Continental Europe 25.5% 21.3% North America UK & Ireland

  39. Slide 39: Contact Details

    Contact Details Investor Relations 39 Wiener Städtische Versicherung AG Vienna Insurance Group Schottenring 30, 1010 Vienna, Austria www.wienerstaedtische.com Vienna Stock Exchange: WST Reuters: WISV.VI Bloomberg: WST AV Datastream: O:WNST § Thomas Schmee Tel. +43 (0)50 350 – 21900 t.schmee@staedtis

  40. Slide 40: Disclaimer

    Disclaimer 40 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

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