Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Shareholder Meeting (May 2016)
63 slides from Vienna Insurance's shareholder meeting presentation, May 13, 2016
Slide 1: 25th Annual General Meeting
25th Annual General Meeting VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe Vienna, 13 May 2016
Slide 2: Agenda
Agenda 1. Presentation of the consolidated financial statements for the year 2015 and the management report on these accounts, presentation of the audited and approved financial statements of the Company for the year 2015, the management report on these accounts, the report of the Supervisory Board
Slide 3: 25 successful years in the CEE Region
TwothouCEEndandfifteen – 25 successful years in the CEE Region 1989 1990 1996 1998 1999 2001 2002 2003 2004 2005 2007 2008 2010 2011 2014 2015 Czech Republic, Slovakia (former Czechoslovakia), Romania Georgia Estonia, Latvia, Bosnia- Germany Lithuania Herzegovina Liechtenstein, Slovenia, Croatia, It
Slide 4: Regional focus on Austria and the CEE Region
Regional focus on Austria and the CEE Region Continuation of a proven strategy Local entrepreneurship Multi-brand strategy Multi-channel distribution Core business Conservative investments / insurance Conservative reinsurance 4
Slide 5: Local entrepreneurship as basis for success
Local entrepreneurship as basis for success Continuation of a proven strategy decentralised valuating regional different cultures organisational characteristics and conditions structures accordingly best practice Group guidelines quick decision for risk exchange/ taking management Local networking e
Slide 6: Many brands with a common goal – customer loyalty
Many brands with a common goal – customer loyalty Continuation of a proven strategy Advantages • VIG companies individually shape their market presence and target different client groups • Local brands with good customer recognition are retained • Strengthening of regional identity and engagement of
Slide 7: Diversified distribution network
Diversified distribution network Continuation of a proven strategy Strategic cooperation with ERSTE GROUP Multi-channel distribution 7
Slide 8: Investing with great responsibility
Investing with great responsibility Continuation of a proven strategy No speculative investments VIG is highly risk-conscious As of 31.12.2015 VIG total EUR 31.8bn* Conservative investments * Without investments for unit- and index-linked life insurance; incl. cash and cash equivalents 8
Slide 9: Performance of share since capital increase in 2005
Performance of share since capital increase in 2005 VIG compared to ATX until April 2016 Indexed 140,00 120,00 100,00 April 2016 80,00 60,00 40,00 20,00 Dez.05 DEC. 05 Dez.06 DEC. 06 Dez.07 DEC. 07 Dez.08 DEC. 08 Dez.09 DEC. 09 Dez.10 DEC. 10 Dez.11 DEC. 11 Dez.12 DEC. 12 Dez.13 DEC. 13 Dez.14 DEC.
Slide 10: Group Results 2015
VIENNA INSURANCE GROUP GROUP RESULTS 2015
Slide 11: Vienna Insurance Group 2015 at a glance
Vienna Insurance Group 2015 at a glance Premium volume Property/casualty insurance +0.8% EUR 9bn (-1.4%) Health insurance +3.0% Life insurance regular premiums +4.9% Restraint in life single premium business -15.7% Combined Ratio with 97.3% significantly below the 100% mark Profit before taxes aroun
Slide 12: Premium Income
VIENNA INSURANCE GROUP PREMIUM INCOME
Slide 13: Premiums stable at EUR 9.0bn
Premiums Gross written premiums by regions, IFRS, in EUR mn 2014 2015 STABLE AT Pleasant development in the ”Remaining markets“ EUR 9.0bn -1.4% -0.5% CEE-share 9,146 9,020 4,077 4,056 50% -7.6% +12.0% -1.4% -18.9% 1,683 1,555 +26.2% 1,034 839 1,156 1,294 727 716 340 429 Austria Czech Slovakia Poland
Slide 14: Growth driver Remaining markets
Growth driver „Remaining markets“ Gross written premiums, %-change compared to last year Baltics Bulgaria Hungary Serbia +15% +15% +14% +14% CAGR 2010-15 Turkey Albania Bosnia/ Macedonia >8% Hercegovina +12% +11% +8% +2% Remaining markets: AL, BA, BG, DE, EE, FL, GE, HR, HU, LT, LV, MD, MK, RS, TR,
Slide 15: Premiums by lines of business
Premiums Gross written premiums by lines of business, IFRS, in EUR mn Solid premium development in a challenging environment 2014 2015 -1.4% Life insurance business in detail: +0.8% 9,146 9,020 +4.9% -4.2% -15.7% 4,560 4,599 2,341 2,455 4,199 4,023 1,845 1,555 +3.0% 386 398 Life single Regular premi
Slide 16: Growth in preferred lines of business
Growth in preferred lines of business Share of premiums by business units Property and casualty insurance Life insurance CAGR Focus on property and CAGR casualty insurance • Increase of regular • Raise potential in non-motor 39% 51% 45% business 43% premiums • Sustainable implementation of • Reducti
Slide 17: Life insurance
Life insurance Number of policies - portfolio development Year 2011 Year 2015 +10% Risk insurance, Unit- Annuity ins., Endowment Risk insurance, Unit- Annuity ins., Endowment and index-linked ins. and Government and index-linked ins. and Government insurance sponsored pension plans insurance sponsor
Slide 18: Successful cooperation with Erste Group
Successful cooperation with Erste Group Premium development of „Sparkassen Versicherung“ in life insurance with regular premium payments in EUR mn (unconsolidated) Austria +2% CZ CEE SK 469 481 +58% AT HU RO 318 HR 202 2009 2015 2009 2015 18
Slide 19: Profit Before Taxes
VIENNA INSURANCE GROUP PROFIT BEFORE TAXES
Slide 20: Profit before taxes
Profit before taxes By lines of business, IFRS, in EUR mn 2014 2015 -66.8% Influencing drivers 518 Impairments of intangible assets due to ● Low interest rate environment -113.3% ● IT 310 +0.8% ● changes of the Cash Generating Units +7.1% 172 ● changes in taxation for banks and 162 163 insurances in
Slide 21: Low level of interest rates continues
Low level of interest rates continues Development of interest rates and government bond yields since 2000 7% 6% 5% Eurozone 0.0% 4% since 2016 3% 2% 1% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 EZBkey ECB - Leitzins interest rate Europäische Staatsanleih
Slide 22: Low interest rate environment
Low interest rate environment Influence on product design and focus on life Decline in the insurance sales ordinary financial result life insurance with guaranteed interest rate Very strong Concentration on intervention of ECB Decreasing fonds- and index-linked through financial result life insura
Slide 23: IT-systems
IT-systems Sustainability check of IT Current focus on With a high probability certain IT systems are not • Fast changing market fulfilling the future needs (on an • Modernisation requirements economical and technological level). • Expansion of customer • Accelerated technological portals and front-
Slide 24: Profit before taxes by regions
Profit before taxes by regions, IFRS, in EUR mn CEE-share 2014 2015 +25.5% 55% 213 -8.4% 170 178 163 -12.8% -21.3% -17.2% 59 52 55 -7.1% 52 43 43 6 6 Austria Czech Slovakia Poland Romania Remaining Republic Markets* * Remaining markets: AL, BA, BG, DE, EE, FL, GE, HR, HU, LT, LV, MD, MK, RS, TR, UA
Slide 25: Combined Ratio
VIENNA INSURANCE GROUP COMBINED RATIO
Slide 26: Combined Ratio 2015
Combined Ratio 2015 net, in % Significantly below the 100% mark 30.6 66.7 97.3 Cost ratio Loss ratio Combined Ratio 26
Slide 27: Group Embedded Value
VIENNA INSURANCE GROUP GROUP EMBEDDED VALUE
Slide 28: Group Embedded Value 2015
Group Embedded Value 2015 in EUR mn EUR 485mn Return on Group Embedded Value (+8.1%) 6.455 5.971 …generating value in low interest rate environment 2014* 2015 *Adjusted Group Embedded Value 28
Slide 29: Group Embedded Value 2015 – New business margin
Group Embedded Value 2015 New business margin in % excellent level compared to CEE new business margin international benchmarks 7.5 6.5 Austria/Germany CEE Total 4.0 3.4 1.3 1.0 2014 2015 29
Slide 30: Highlights 2015
VIENNA INSURANCE GROUP HIGHLIGHTS 2015
Slide 31: VIG takes expansion steps towards the Baltic States
VIG takes expansion steps towards the Baltic States Strengthen and expand the market position through multi-brand strategy Estonia Acquisition Lettland Latvia Finsaltas • Largest life insurance sales company • Around 300 insurance brokers Lithuania Formation of Compensa Non-Life • received licence f
Slide 32: VIG takes expansion steps towards the Baltic States
VIG takes expansion steps towards the Baltic States Strengthen and expand the market position through multi-brand strategy Acquisition of BTA Baltic Insurance Company AAS (BTA Baltic) Estonia • Headquarters in Latvia, branches in Lithuania and Estonia • Market share: Lithuania 14% (2nd in non-life)
Slide 33: Merger
Merger Property and casualty insurance Poland To strengthen the market position and take advantage of synergies in Poland 33
Slide 34: VIG increases distribution opportunities in Bulgaria
VIG increases distribution opportunities in Bulgaria Strengthen its sales potential through multi-channel distribution strategy Bulgaria Acquisition UBB-AIG • Renamed in Insurance Company Nova Ins Ead (Nova) Cooperation agreement • was formed in 2006 as a bank- with United Bulgarian Bank assurance c
Slide 35: Green light for Solvency II
Green light for Solvency II Partial internal model (PIM) Approved partial PIM Solvency Pioneer internal model VIG ratio of VIG in the order of around 200% VIG being the only Partial internal model Austrian insurance for non-life and Excellent group with an approved real estate capitalisation interna
Slide 36: Green light for Solvency II – scope of partial internal model
Green light for Solvency II Scope of partial internal model The partial internal model of VIG was approved as of 1.1.2016 and covers • non-life business • real estate The non-life scope comprises five markets of VIG on Group level (Austria, Czech Republic, Slovakia, Poland and Romania) The real esta
Slide 37: Best credit rating in the ATX
VIG Rating Best credit rating in the ATX ● “Capital adequacy is excellent, exceeding our benchmark for the 'AAA' level in 2014” ● “The group has sound diversification by business line and a well-established multichannel distribution strategy” ● “Group's competitive position is very strong, based on
Slide 38: Awards
VIENNA INSURANCE GROUP AWARDS
Slide 39: Awards
Awards Exemplary list Czech Republic Germany Awarded 1st place twice for: Achieving third place at the awards „Best Insurance 2015“ „Czech 100 Best“. It was also the most in „property/casualty insurance“ and successful financial institution in the „Lifeinsurance“ by Czech Republic FOCUS-MONEY Romani
Slide 40: Awards
Awards Exemplary list Austria Czech Republic 1st place winner in the category Scored at the awards Golden Crown “bancassurance” for the 4th time at the especially with its life insurance prestigious Recommender Award 2015 products "Flexi Life Insurance" and "Flexi Life Insurance Junior" Slovakia Suc
Slide 41: Social Commitment
VIENNA INSURANCE GROUP SOCIAL COMMITMENT
Slide 42: Social Active Day 2015
Social Active Day 2015 37 20 33,000 >4,000 Participating Supporting Working Employees companies countries hours participated 42
Slide 43: VIG Kids
Took place for the 6th time – VIG Kids Camp Social responsibility by promoting better VIG Camp understanding between generations Kids 2 weeks of fun for 500 children Children sang and danced for from 22 nations in 3 camps Austrian senior citizens These activities are supported to a large extent by t
Slide 44: Outlook
VIENNA INSURANCE GROUP OUTLOOK
Slide 45: 25 successful years in the CEE Region
TwothouCEEndandfifteen – 25 successful years in the CEE Region 1989 1990 1996 1998 1999 2001 2002 2003 2004 2005 2007 2008 2010 2011 2014 2015 Czech Republic, Slovakia (former Czechoslovakia), Romania Georgia Estonia, Latvia, Bosnia- Germany Lithuania Herzegovina Liechtenstein, Slovenia, Croatia, It
Slide 46: Leading insurer – market shares
Leading insurer Market shares Market shares in % AT 23.7 4 Poland CZ 32.7 SK 33.7 2 Ukraine PL 6.4 1 Czech Republic 1 Slovakia RO 22.6 No 1 BG 13.2 1 Austria 6 Hungary 18% HR 8.2 1 Romania Market share* RS 9.3 4 Croatia UA 4.4 4 Serbia HU 7.4 2 Bulgaria Total market position * Markets: data as of Q4
Slide 47: Ongoing considerable potential in CEE
Ongoing considerable potential in CEE In 2015 GDP growth in CEE 2004-2014 per capita in CEE of all CEE companies Growth of are small and medium- insurance sized enterprises expenditure In CEE Region potential registered customers in the vehicles CEE Region 47
Slide 48: Economic growth CEE vs. EU-15
Economic growth CEE vs. EU-15 12% Ongoing considerable 10% potential in CEE 8% 6% 4% 2% 0% -2% -4% -6% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 EU-15 CEE Source: IMF WEO Database, 4/2016 48
Slide 49: Growth in selected markets
Growth in selected markets Mid-term goals Minimum 10% market share Poland Gain Hungary market shares Croatia Serbia 49
Slide 50: Innovation for the future
Innovation for the future Mid-term goals Innovation Digitisation Digitisation emphasis in the area of products and services 50
Slide 51: Further diversification – strengthening health insurance
Further diversification – strengthening health insurance Mid-term goals 2000 2012 5,206 4,996 Health expenditures per capita have minimum doubled in Austria and CEE since 2000 Strengthening 2,387 2,406 health insurance 1,411 1,377 950 994 999 103 522 820 939 859 211 472 468 556 208 569 220 446 371 3
Slide 52: Outlook 2016
Outlook 2016 Aimed development in a challenging environment Profit before taxes Despite the continued results depressing low-interest environment the management aims to at least double the profit before taxes up to EUR 400mn in 2016. Combined Ratio Mid-term improvement of combined ratio towards 95%
Slide 53: Agenda
Agenda 2. Adoption of a resolution on the distribution of profits for 2015. 53
Slide 54: Agenda
Agenda 3. Adoption of a resolution to grant discharge to the members of the Managing Board for the financial year 2015. 54
Slide 55: Agenda
Agenda 4. Adoption of a resolution to grant discharge to the members of the Supervisory Board for the financial year 2015. 55
Slide 56: Agenda
Agenda 5. Adoption of a resolution on the changes in the Articles of Association of the Company in Sections 8, 10, 12, 13, 20. 56
Slide 57: Resolution
Resolution Article 8 of the Articles of Association OLD NEW ... … 1. The Management Board shall, under its own responsibility, manage the 1. The Management Board shall, under its own responsibility, manage the Company in accordance with the statutory provisions, the Articles of Association Company i
Slide 58: Resolution
Resolution Article 10 Clause 1 of the Articles of Association OLD NEW ... … 1. The Supervisory Board shall supervise the management of the 1. The Supervisory Board shall supervise the management of the Company Company. The regulations on the duty to exercise due diligence and on .… responsibility of
Slide 59: Resolution
Resolution Article 12 Clause 1 and 3 of the Articles of Association OLD NEW ... … 1. Following the General Meeting at which all members of the Supervisory Following the General Meeting at which all members of the Supervisory Board to be elected by such General Meeting have been newly elected, Board
Slide 60: Resolution
Resolution Article 13 Clause 1, 2, 5 and 7 of the Articles of Association OLD NEW ... … 1. Meetings of the Supervisory Board shall be called by the chairman or the deputy 1. Meetings of the Supervisory Board shall be called by the chairman or the one of chairman in writing, by telephone, by telecopy
Slide 61: Resolution
Resolution Article 20 Clause 1 of the Articles of Association OLD NEW ... … 1. General Meetings shall be presided by the chairman or deputy chairman of the 1. General Meetings shall be presided by the chairman or one of his deputy Supervisory Board. If none of them has come to, or is willing to pres
Slide 62: Agenda
Agenda 6. Election of the auditor of the financial statements of the Company and the auditor of the consolidated financial statements for the financial year 2017. 62
Slide 63: Thank you for your attention
VIENNA INSURANCE GROUP Thank you for your attention
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