Vienna Insurance Group Ag · VIE:VIG

Vienna Insurance — H1 2019 Earnings Presentation

40 slides from Vienna Insurance's earnings presentation, Aug 27, 2019

  1. Slide 1: 6M 2019 Results Presentation

    6M 2019 RESULTS PRESENTATION Vienna, 27 August 2019

  2. Slide 2: 6M 2019 Results Conference Call: Presenting team and topics

    6M 2019 RESULTS CONFERENCE CALL Presenting team and topics Participants Topics  Liane Hirner, CFO  Highlights p. 3  Judit Havasi, Member of the Board  Financials & Investments p. 6  Appendix 1: Segments p. 15  Appendix 2: Financials p. 28 2 VIG VIENNA INSURANCE GROUP

  3. Slide 3: Highlights

    HIGHLIGHTS FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur when rounded amounts or percentages are added up. 3 VIG VIENNA INSURANCE GROUP

  4. Slide 4: Highlights 6M 2019

    HIGHLIGHTS 6M 2019 VIG well on track to reach targets for 2019 and 2020 Gross written premiums Profit before taxes Combined Ratio Solvency Ratio € 5,446.7mn € 257.1mn 96.4% 238% GWP up by 5.8% (+€296mn) PBT increased by 10.5% Weather-related claims impact Stable compared to YE 2018 (+€24mn)  Strong

  5. Slide 5: Bancassurance

    BANCASSURANCE Pilot projects contribute to growth especially in non-life business  Integral part of Agenda 2020  Focus on increasing sale of P&C and health business via banks  Successful cooperation in 11 countries CZ SK  Total premium volume as of 6M 2019: €675mn (+8%) AT HU  Life: +7%, Non-Li

  6. Slide 6: Financials & Investments

    HIGHLIGHTS FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 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). 6 VIG VIENNA INSURANCE GROUP

  7. Slide 7: Half-year result up by 10.5% despite lower financial result

    HALF-YEAR RESULT UP BY 10.5% DESPITE LOWER FINANCIAL RESULT 6M 2019 Income statement €mn 6M 2019 6M 2018 +/- % Gross premiums written 5,446.7 5,150.3 5.8 Net earned premiums 4,621.8 4,354.9 6.1 Financial result1 423.2 511.3 -17.2  Financial result (incl. at equity consolidated companies) down Other

  8. Slide 8: Gross written premiums of €5.4bn up by 5.8%

    GROSS WRITTEN PREMIUMS OF €5.4bn UP BY 5.8% Overview by segments Gross written premiums (€mn; y-o-y chg.)  CEE growth of 7.9%; excl. consolidation effects 4.1%  Premium growth drivers are Poland (+€89mn) and the Baltics (+€64mn) - incl. first-time consolidation of Wiener (former Gothaer) and Seesa

  9. Slide 9: Growth in all lines of business; double-digit growth in health

    GROWTH IN ALL LINES OF BUSINESS; DOUBLE-DIGIT GROWTH IN HEALTH BY +12% Gross written premiums by lines of business (€mn; y-o-y chg.); incl. Central Functions MTPL Casco Other property Total premiums +5.8% 6M 2018 773 605 2,388 5,447 +1.0% +9.5% +7.0% 5,150 781 MTPL 773 6M 2019 781 663 2,554 663 Casc

  10. Slide 10: Group profit before taxes of €257.1mn up by 10.5%

    GROUP PROFIT BEFORE TAXES OF €257.1mn UP BY 10.5% Solid profit growth in all market segments except for the Czech Republic Result before taxes (€mn; y-o-y change)  AT: €11mn profit growth; positive developments in life and health fully offset decline in P&C  CZ: €7mn decrease driven by lower finan

  11. Slide 11: Combined ratio (P&C) at 96.4% up by 0.1ppt

    COMBINED RATIO (P&C) AT 96.4% UP BY 0.1PPT Increased weather related claims in 6M 2019 P&C Combined Ratio development Overview by segments (12M y-o-y development net, %)  Despite snow pressure in AT and storm Eberhard in CZ, +1.0%p +4.0%p 0.0%p +0.3%p +1.1%p -3.8%p both segments with almost stable

  12. Slide 12: Investment split and bond portfolio overview

    INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Resilient and stable portfolio mix 6M 2019: Total €39.3bn Bond portfolio by rating1 4.1% 1.1% 6.2% AAA AA A BBB Other 6M 2019 9% 32% 37% 18% 4% 6.3% 12M 2018 10% 32% 35% 17% 6% 5.7% 66.6% Bond portfolio by issuer 10.0% 6M 2019 52% 7% 18% 23% Bonds Deposit

  13. Slide 13: Financial result decreased by 14.1%

    FINANCIAL RESULT DECREASED BY 14.1% Stable current income supported by contribution from housing societies Total TEUR 6M 2019 6M 2018 +/- % Current income 658,410 647,126 1.7  Financial result down by €67mn excl. at equity Income from appreciations 14,682 7,060 >100 consolidated companies  Overall

  14. Slide 14: VIG well on track to reach targets

    VIG WELL ON TRACK TO REACH TARGETS Despite increased global macroeconomic uncertainty, VIG confirms its outlook Outlook unchanged Gross written Profit before Combined premium taxes Ratio VIG targets continuous VIG continuously strives 2019 €9.9bn €500mn - €520mn to improve both, the improvement base

  15. Slide 15: Appendix 1: Segments

    HIGHLIGHTS FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 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). 15 VIG VIENNA INSURANCE GROUP

  16. Slide 16: Austria

    AUSTRIA CoR despite increased weather-related claims stable at 95.3% GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +2.1% Gross premiums written 2,216.2 2,170.0 2.1  Financial result decreased by €64.4mn 2,216 Net earned premiums 1,644.5 1,611.5 2.0 driven by lower income from disposal of 2,170 in

  17. Slide 17: Czech Republic

    CZECH REPUBLIC Profit decrease driven by lower financial result GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +1.3% Gross premiums written 893.1 881.7 1.3  Premiums up by €11.4mn driven by life 893 Net earned premiums 666.0 641.1 3.9 regular business and motor lines 882 Financial result1 33.8 56.

  18. Slide 18: Slovakia

    SLOVAKIA Life growth fully compensates for declining P&C development GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +1.4% Gross premiums written 407.3 401.8 1.4  Premium increase of €5.5mn due to 407 Net earned premiums 333.4 323.6 3.0 growth in life 402 Financial result 26.0 27.0 -3.9 Other incom

  19. Slide 19: Poland

    POLAND Ongoing favourable premium and profit development GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +19.5% Gross premiums written 544.1 455.2 19.5  Premium growth of €88.9mn driven by 544 Net earned premiums 419.1 338.1 24.0 other property (+€59.0mn); start of Financial result 18.9 13.9 35.7 c

  20. Slide 20: Romania

    ROMANIA Further intentional decrease of MTPL business with negative impact on CoR GWP development (€mn) €mn 6M 2019 6M 2018 +/- % -13.9% Gross premiums written 234.9 272.7 -13.9  Premiums down by €37.9mn driven by Net earned premiums 174.4 194.0 -10.1 MTPL business (-€50.5mn) 273 Financial result 7

  21. Slide 21: Baltic States

    BALTIC STATES First time consolidation of Seesam Insurance GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +33.0% Gross premiums written 257.1 193.2 33.0  Double-digit premium growth in all lines of 257 Net earned premiums 189.3 132.1 43.3 business Financial result 5.1 2.7 87.8 Other income 1.9 0.5

  22. Slide 22: Hungary

    HUNGARY Continued growth of top- and bottom-line GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +14.0% Gross premiums written 143.2 125.6 14.0  Premium growth mainly driven by MTPL 143 Net earned premiums 95.9 85.8 11.8 (+€9.5mn) and other property (+€7.6mn) Financial result 2.9 3.3 -12.7 126 25 O

  23. Slide 23: Bulgaria

    BULGARIA Excellent premium and profit development GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +42.9% Gross premiums written 124.8 87.3 42.9  Premium growth in all lines of business; 125 Net earned premiums 71.4 64.4 10.8 largest contribution from health of Financial result 6.1 5.1 19.9 +€17.3mn

  24. Slide 24: Turkey/Georgia

    TURKEY/GEORGIA Profit growth driven by improved financial result GWP development (€mn) €mn 6M 2019 6M 2018 +/- % -4.3% Gross premiums written 111.5 116.5 -4.3  Adjusted for FX effects, double digit 117 Net earned premiums 53.0 47.5 11.5 premium growth 112 Financial result 5.9 3.3 77.9 Other income

  25. Slide 25: Remaining CEE

    REMAINING CEE Ongoing double-digit premium and profit growth GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +18.2% Gross premiums written 218.8 185.1 18.2  Remaining CEE includes Albania (incl. 219 Net earned premiums 157.5 133.4 18.1 Kosovo), Bosnia-Herzegovina, Croatia, Financial result 18.3 12.

  26. Slide 26: Other Markets

    OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +9.6% Gross premiums written 164.1 149.7 9.6  Premium increase driven by growth of the 164 Net earned premiums 140.4 126.5 11.0 life single premium business in Financial result 9.4 10.1 -6.8 Liechtenstein 150 Ot

  27. Slide 27: Central Functions

    CENTRAL FUNCTIONS Deterioration due to lower financial result and other income GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +3.7% Gross premiums written 850.1 819.7 3.7  Central Functions include VIG Holding, 850 Net earned premiums 674.6 653.2 3.3 VIG Re, VIG Fund, the non-profit Financial resu

  28. Slide 28: Appendix 2: Financials

    HIGHLIGHTS FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 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). 28 VIG VIENNA INSURANCE GROUP

  29. Slide 29: 6M 2019 Key Financials

    6M 2019 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and non-controlling interest (€mn) ROE after taxes and non-controlling interests1 (%) 147 151 7.2 7.2 137 6.4 6M 17 6M 18 6M 19 6M 17 6M 18 6M 19 EPS net of hybrid interest1 (€) Book value per share2 (€) 2.36 30.63 31.60 3

  30. Slide 30: Equity development in 6M 2019

    EQUITY DEVELOPMENT IN 6M 2019 Change in yield curve impacts valuation of fixed-yield investments Change in Group Shareholders’ Equity (€mn) +7% 377 6,268 -142 -2 188 11 5,836 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M 2018 the period changes gains and losses payment

  31. Slide 31: 6M 2019 Balance Sheet

    6M 2019 BALANCE SHEET IFRS (€mn) €mn 30.06.2019 31.12.2018 +/- % Intangible assets 2,200 1,961 12.2 Investments 37,852 36,288 4.3 Unit- and index-linked investments 8,437 8,049 4.8 Reinsurers’ share in underwriting provisions 1,329 1,136 17.0 Receivables 1,830 1,563 17.1 Tax receivables and advance

  32. Slide 32: 6M 2019 Premiums by business lines and country (I)

    6M 2019 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % Austria 188.7 188.1 0.3 169.8 162.5 4.4 859.0 822.1 4.5 Czech Republic 156.8 149.4 4.9 125.8 123.5 1.9 258.3 264.4 -2.3 Slovakia 78.2 79.5 -1.6 53

  33. Slide 33: 6M 2019 Premiums by business lines and country (II)

    6M 2019 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % Austria 646.5 643.5 0.5 136.8 144.3 -5.2 215.4 209.6 2.7 Czech Republic 319.7 305.8 4.5 24.6 31.6 -22.2 7.9 6.9 14.6 Slovakia 90.5 85.5 5.8

  34. Slide 34: 6M 2019 Country overview GWP / PBT / Combined ratio

    6M 2019 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net (in %) 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- %p Austria 2,216.2 2,170.0 2.1 87.9 76.7 14.6 95.3 95.3 0.0 Czech Republic 893.1 881.7 1.3 77.5 84.9 -8.8 94.9 94.6 0

  35. Slide 35: 6M 2019 Exchange rates

    6M 2019 EXCHANGE RATES Balance Sheet: period-end exchange rate / P&L: average exchange rate 2019 2018 Country Currency Balance Sheet P&L Balance Sheet P&L EUR EUR EUR EUR Albania EUR/ALL 122,6500 123,8747 125,9300 129,9487 Belarus EUR/BYN 2,3251 2,3948 2,3142 2,4076 Bosnia & Herzegovina EUR/BAM 1,95

  36. Slide 36: Q2 2019 Income Statement

    Q2 2019 INCOME STATEMENT IFRS (€mn) €mn 2Q 2019 2Q 2018 +/- % Gross premiums written 2,538.5 2,324.2 9.2  Premiums up by 9.2% due to growth in all lines of business, Net earned premiums 2,318.7 2,151.8 7.8 especially in other property Financial result1 236.6 272.9 -13.3 Other income 11.0 33.1 -66.7

  37. Slide 37: VIG Share (I)

    VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Current analyst recommendation split 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 A

  38. Slide 38: VIG Share (II)

    VIG SHARE (II) Shareholder structure Free float split by region1 North America 34% Continental Europe 27% ~70% ~30% Austria 25% UK & Ireland 12% Other 2% Wiener Städtische Versicherungsverein Free Float (Mutual) 1 Split of identified shares, April 2019 (Source: CMi2i) 38 APPENDIX 2: FINANCIALS VIG V

  39. Slide 39: Contact Details / Financial Calendar

    CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2019* Head of Investor Relations Team Leader Corporate Reporting Date Event Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 17 Apr.

  40. Slide 40: 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

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