Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Q1 2017 Earnings Presentation
57 slides from Vienna Insurance's earnings presentation, Jun 15, 2017
Slide 1: Vienna Insurance Group Investor Presentation
Vienna Insurance Group Investor Presentation Results for the first quarter 2017 3M 2017 Agenda 2020 Segments Appendix
Slide 2: Development
Development 3M 2017 Agenda 2020 Segments Appendix Note: Rounding differences may occur when rounded amounts or percentages are added up. 3M 2017 Agenda 2020 Segments Appendix
Slide 3: Overview of the 3M 2017 results
Overview of the 3M 2017 results Solid start into 2017 €2,720mn Growth of 0.5% despite reduced life single premium business GWP excl. life single premium business up 4.2% GWP Strong premium growth in casco (+10.7%), other property (+6.8%) and health (+12.5%) €109.6mn PBT increased by 22.4% Total fina
Slide 4: Premium developments in line with expectations
Premium developments in line with expectations Overview of premiums by segments (I) Gross written premiums (€mn; y-o-y chg.) 3M16 3M17 -4.2% 1,347.8 1,290.7 +5.1% +10.0% +3.1% 406.8 427.5 -7.5% 190.8 209.9 207.0 213.3 142.3 131.6 Austria Czech Republic Slovakia Poland Romania Austria: stable premium
Slide 5: Positive CEE premium development
Positive CEE premium development Overview of premiums by segments (II) Gross written premiums (€mn; y-o-y chg.) 3M16 3M17 -36.2% +12.4% +122.8% +46.5% 106.5 +17.7% 89.3 76.5 79.5 73.7 +2.9% 67.7 68.0 57.5 50.3 42.3 43.5 34.3 The Baltic Hungary Bulgaria Turkey/ Remaining CEE Other markets Georgia The
Slide 6: Strong growth in Casco, Health and Other Property
Strong growth in Casco, Health and Other Property; Life single premium reduced as planned Gross written premiums (€mn; y-o-y chg.) MTPL Casco Other property Total premiums -0.6% +10.7% +6.8% +0.5% 371 369 284 1,318 2,706 2,720 257 1,235 371 369 MTPL Casco 257 284 3M16 3M17 3M16 3M17 3M16 3M17 Other
Slide 7: Group PBT of €109.6mn up 22.4%
Group PBT of €109.6mn up 22.4% Overview of profits by segments (I) Profit before taxes (€mn; y-o-y change) 3M16 3M17 -2.1% +12.0% 42.9 42.0 37.9 33.8 +5.3% -25.0% +115.9% 10.8 11.4 7.8 5.9 1.5 3.2 Austria Czech Republic Slovakia Poland Romania Austria: better technical result in P&C more than offset
Slide 8: Encouraging CEE profit development
Encouraging CEE profit development Overview of profits by segments (II) Profit before taxes (€mn; y-o-y change) +1.9% 3M16 3M17 +35.1% 6.6 6.7 5.9 +22.5% -3.6% 4.4 +16.2% 2.0 2.4 2.0 1.9 n.a. 1.1 0.9 -2.4 -3.5 The Baltic* Hungary* Bulgaria* Turkey/ Remaining CEE Other markets Georgia The Baltic: sta
Slide 9: Combined ratio (P&C) improved to 96.9%
Combined ratio (P&C) improved to 96.9% Favourable developments in nearly all markets P&C Combined ratio development P&C CoR 3M y-o-y regional development (net, %) 99.5 AT -3.7%p 95.8 97.8 97.9 97.9 97.3 96.9 88.7 CZ +6.2%p 33.3 31.4 30.5 30.4 31.9 94.9 95.7 SK -2.1%p 93.6 64.5 66.5 67.4 66.9 64.9 99
Slide 10: Slight equity increase largely driven by profits
Slight equity increase largely driven by profits Change in Group Shareholders’ Equity (€mn) +1% 14 -31 88 5,784 3 -1 5,711 Equity as of 12M16 Profit for the period Currency changes AFS unrealised Dividend payment Other Equity as of 3M17 gains and losses Since September 2016 full consolidation of Aus
Slide 11: Solvency ratio of 206% at 3M 2017
Solvency ratio of 206% at 3M 2017 Published SFCR includes VIG only as well as consolidated Group data 206% 195% 3M 2017 YE 2016 In EUR mn 6,636 6,866 3,411 3,335 Solvency II SCR Solvency II SCR Own funds Own funds Calculation based on Partial Internal Model (PIM) Results include volatility adjustmen
Slide 12: Outlook 2019 confirmed
Outlook 2019 confirmed Stable development and continuous improvement Gross written premium 2019 VIG plans to steadily increase the premium volume to €9.5bn by 2019 Outlook Profit before taxes Despite the low interest rate environment and its continued negative effect on the financial result, VIG aim
Slide 13: Agenda 2020
Development 3M 2017 Agenda 2020 Segments Appendix Note: Rounding differences may occur when rounded amounts or percentages are added up. 3M 2017 Agenda 2020 Segments Appendix
Slide 14: Today VIG best positioned in its region due to successful business model
Today VIG best positioned in its region due to successful business model Main pillars of the VIG business model Focus on Conservative Austria and Local investments and CEE entrepreneurship reinsurance Multi-brand Multi-channel strategy distribution Austria Albania Bosnia & Baltics Bulgaria Herzegovi
Slide 15: Agenda 2020: Key strategic areas
Agenda 2020: Key strategic areas Directions of impact Optimisation of business model Ensuring future viability • Shared Services • Use of growth potentials Creating cost benefits by merging back-office Intensify selected business areas e.g. health functions and companies insurance, reinsurance, coop
Slide 16: Positive economic environment and strong growth potential going forward
Positive economic environment and strong growth potential going forward Annual insurance spending shows significant growth potential in the CEE region Real GDP growth p.a. 2016-2019 Insurance density 2015, in EUR (premiums per capita) AT 1.2 AT 2,034.1 HR 2.2 HR 271.4 HU 2.3 HU 285.2 CZ 2.4 CZ 516.3
Slide 17: Growth initiatives
Growth initiatives Leveraging selected business areas Health Reinsurance Potential in the area of private health insurance business. VIG RE in 2016 • Founded in 2008 and by now well established VIG companies with health ins. • 52 employees Focus on health insurance • Active in 31 countries • S&P rat
Slide 18: Successful partnership with Erste Group
Successful partnership with Erste Group 2016: ~EUR 1.3bn of premiums generated Promotion of bank insurance with Erste Group Common project together with Erste Group Target: optimisation of products, distribution and profits for both with focus on health and CZ other non-life business in all the mark
Slide 19: Digitisation: Decentralised approach with local companies acting as innovation labs
Digitisation: Decentralised approach with local companies acting as ‘innovation labs’ Customer behaviour and online preferences differ between generations and across countries Local companies develop appropriate digital solutions according to customer needs in terms of products, services and distrib
Slide 20: Assistance
Assistance Roll Out in CEE (2014 - 2017) • Assistance as an integrated part of the insurance products • Stronger customer loyalty through high-quality service • More than 350,000 assistance cases in the last 3 years • Adaptation to changing customer needs through digitisation (Health app, GPS tracki
Slide 21: Segments
Development 3M 2017 Agenda 2020 Segments Appendix Note: Rounding differences may occur when rounded amounts or percentages are added up. 3M 2017 Agenda 2020 Segments Appendix
Slide 22: Austria: Overall PBT up 12.0% to €37.9mn
Austria: Overall PBT up 12.0% to €37.9mn CoR strongly improved to 95.8% compared to 99.5% a year ago GWP development (€mn) P&L: P&C business (€mn) -4.2% 3M17 Y-o-Y 1,348 Underwriting and financial result 28.6 96.8% 1,291 MTPL 107 Other non-technical result 0.3 >100% 107 Casco 89 92 Result (pre tax)
Slide 23: Czech Republic: PBT down 2.1% to €42.0mn
Czech Republic: PBT down 2.1% to €42.0mn CoR driven by higher claims expenses increased to 94.9% GWP development (€mn) P&L: P&C business (€mn) +5.1% 3M17 Y-o-Y 428 Underwriting and financial result 17.7 -12.3% 407 Other non-technical result -0.9 >100% 70 MTPL 68 Result (pre tax) 16.9 -15.3% 58 Claim
Slide 24: Slovakia: PBT of €11.4mn up 5.3%
Slovakia: PBT of €11.4mn up 5.3% Substantially improved cost ratio makes up for higher claims ratio GWP development (€mn) P&L: P&C business (€mn) +10.0% 3M17 Y-o-Y 210 Underwriting and financial result 5.7 38.0% 191 Other non-technical result -0.3 -16.1% 42 Result (pre tax) 5.4 43.8% MTPL 41 Claims
Slide 25: Poland: PBT of €5.9mn down 25% due to lower financial result
Poland: PBT of €5.9mn down 25% due to lower financial result Claims and cost ratio improved GWP development (€mn) P&L: P&C business (€mn) +3.1% 3M17 Y-o-Y Underwriting and financial result 5.1 -11.8% 213 207 Other non-technical result 0.3 -n.a. MTPL 31 39 Result (pre tax) 5.5 5.2% Claims ratio 66.4%
Slide 26: Romania: PBT more than doubled to €3.2mn
Romania: PBT more than doubled to €3.2mn CoR strongly decreased to 98.1% GWP development (€mn) P&L: P&C business (€mn) -7.5% 3M17 Y-o-Y 142 132 Underwriting and financial result 2.6 n.a. Other non-technical result -0.1 n.a. 41 Result (pre tax) 2.4 >100% MTPL 75 Claims ratio 65.2% 1.2%p Cost ratio 32
Slide 27: Premium development of new segments (I)
Premium development of new segments (I) The Baltic GWP development (€mn) Hungary GWP development (€mn) +122.6% +46.4% 77 74 MTPL MTPL 8 22 5 Casco Casco 50 13 Other Property Other Property 5 28 34 5 16 Health Health 11 7 2 2 3 3 12 Life regular Life regular 19 22 7 10 12 Life single Life single 4 3
Slide 28: Premium development of new segments (II)
Premium development of new segments (II) Remaining CEE GWP development (€mn) Other markets GWP development (€mn) +12.4% -36.2% 89 107 80 MTPL 19 30 Other Property 18 Casco 10 68 9 Life regular 18 Other Property 29 32 Health 22 2 3 Life regular Life single 59 18 15 15 Life single 13 14 18 3M16 3M17 3
Slide 29: Appendix
Development 3M 2017 Agenda 2020 Segments Appendix Note: Rounding differences may occur when rounded amounts or percentages are added up. 3M 2017 Agenda 2020 Segments Appendix
Slide 30: 3M 2017 Key financials
3M 2017 Key financials Overview of KPIs Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 67 69 97.8 96.9 3M16* 3M17 3M16 3M17 EPS1 (€) ROE after tax and minorities (%) 6.8 6.5 1.98 2.07 3M16* 3M17 3M16* 3M17 1: EPS net of hybrid interest (annualised figures for 3M16 and 3M17) * 3M16
Slide 31: 3M 2017 Income statement
3M 2017 Income statement IFRS (€mn) / 3M 2016 restated €mn 3M 2017 3M 2016 +/-% Gross premiums written 2,719.6 2,705.8 0.5 Net earned premiums 2,152.9 2,137.8 0.7 Financial result1 247.7 224.1 10.6 Other income 29.5 36.9 -20.1 Total income 2,430.1 2,398.8 1.3 Expenses for claims and insurance benefi
Slide 32: 3M 2017 Balance sheet
3M 2017 Balance sheet IFRS (€mn) / 3M 2016 restated €mn 31.03.2017 31.12.2016 +/-% Intangible assets 2,051 2,055 -0.2 Investments 34,669 34,646 0.1 Unit- and index-linked investments 8,780 8,550 2.7 Reinsurers’ share in underwriting provisions 1,122 985 13.9 Receivables 1,587 1,460 8.7 Tax receivabl
Slide 33: Overview on the investment split and bond portfolio
Overview on the investment split and bond portfolio No material changes in the first quarter 3M 2017: Total €36.2bn Bond portfolio by rating1 Other 5% 5% 6.3% 19% 17% 1.2% BBB 7.5% 0.0% Real Estate total 15.7% A 41% 44% 5.9% AA 24% 24% AAA 10% 10% 9.8% 12M16 3M17 4.1% 65.2% Bond portfolio by issuer
Slide 34: Financial result impacted by fully consolidated housing societies
Financial result impacted by fully consolidated housing societies Adjusted for the housing societies, stable development Income Total in € '000 3M 2017 3M 2016 +/-% Current income 325,337 264,373 23.1 Income from appreciations 7,181 7,686 -6.6 Overall financial result up by Income from the disposal
Slide 35: P&L by segment (I)
3M 2017 P&L by segment (I) IFRS (€mn) / 3M 2016 restated Austria Czech Republic Slovakia €mn 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% Gross premiums written 1,290.7 1,347.8 -4.2 427.5 406.8 5.1 209.9 190.8 10.0 Net earned premiums 858.6 911.2 -5.8 295.8 286.1 3.4 158.9 138.8 14
Slide 36: P&L by segment (II)
3M 2017 P&L by segment (II) IFRS (€mn) / 3M 2016 restated Poland Romania The Baltic €mn 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% Gross premiums written 213.3 207.0 3.1 131.6 142.3 -7.5 76.5 34.3 >100 Net earned premiums 174.5 174.5 0.0 99.0 84.1 17.7 57.0 26.8 >100 Financial re
Slide 37: P&L by segment (III)
3M 2017 P&L by segment (III) IFRS (€mn) / 3M 2016 restated Hungary Bulgaria Turkey/Georgia €mn 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% Gross premiums written 73.7 50.3 46.5 43.5 42.3 2.9 67.7 57.5 17.7 Net earned premiums 38.1 35.3 8.0 29.6 25.9 14.3 24.5 23.6 4.0 Financial re
Slide 38: P&L by segment (IV)
3M 2017 P&L by segment (IV) IFRS (€mn) / 3M 2016 restated Remaining CEE Other markets €mn 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% Gross premiums written 89.3 79.5 12.4 68.0 106.5 -36.2 Net earned premiums 61.2 55.5 10.2 54.6 94.1 -42.0 Financial result1 7.5 9.4 -20.1 5.3 4.3 21.9 Other income 1.4
Slide 39: P&L by segment (V)
3M 2017 P&L by segment (V) IFRS (€mn) / 3M 2016 restated Central Functions Consolidation TOTAL €mn 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% Gross premiums written 393.7 369.0 6.7 -365.8 -328.5 - 2,719.6 2,705.8 0.5 Net earned premiums 299.3 278.9 7.3 2.0 3.1 - 2,152.9 2,137.8 0
Slide 40: Financial result by segment (I)
3M 2017 Financial result by segment (I) IFRS (€ '000) / 3M 2016 restated Income Austria Czech Republic Slovakia Poland in € '000 3M 2017 3M 2016 3M 2017 3M 2016 3M 2017 3M 2016 3M 2017 3M 2016 Current income 191,774 191,212 26,363 31,638 10,957 11,163 8,013 7,321 Income from appreciations 1,623 2,17
Slide 41: Financial result by segment (II)
3M 2017 Financial result by segment (II) IFRS (€ '000) / 3M 2016 restated Income Romania The Baltic Hungary Bulgaria in € '000 3M 2017 3M 2016 3M 2017 3M 2016 3M 2017 3M 2016 3M 2017 3M 2016 Current income 3,959 3,435 1,507 1,325 1,984 2,294 5,748 5,494 Income from appreciations 64 224 435 387 0 0 2
Slide 42: Financial result by segment (III)
3M 2017 Financial result by segment (III) IFRS (€ '000) / 3M 2016 restated Income Turkey/Georgia Remaining CEE Other markets in € '000 3M 2017 3M 2016 3M 2017 3M 2016 3M 2017 3M 2016 Current income 3,110 2,106 9,578 9,796 4,939 4,976 Income from appreciations 121 904 655 62 2 0 of which reduction in
Slide 43: Financial result by segment (IV)
3M 2017 Financial result by segment (IV) IFRS (€ '000) / 3M 2016 restated Income Central Functions Consolidation Total in € '000 3M 2017 3M 2016 3M 2017 3M 2016 3M 2017 3M 2016 Current income 84,764 21,316 -13,430 -14,592 339,266 277,484 Income from appreciations 90 0 0 0 7,180 7,684 of which reduct
Slide 44: Development for P&C business according to VAG
3M 2017 development for P&C business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) / 3M 2016 restated 3M 2017 3M 2016 +/-% Overall result for direct business Gross direct premiums written 1,581.58 1,518.59 4.1 Gross direct 149.12 51.06 >100 Underwriting result 116.44 42.39 >100
Slide 45: Development for life business according to VAG
3M 2017 development for life business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 3M 2017 3M 2016 +/-% Overall result for direct business Gross direct premiums written 965.46 1,039.53 -7.1 Gross direct 136.47 64.31 112.2 Underwriting result - - - Financial result - - - Direct
Slide 46: Development for health business according to VAG
3M 2017 development for health business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 3M 2017 3M 2016 +/-% Overall result for direct business Gross direct premiums written 119.85 105.58 13.5 Gross direct 10.95 10.32 6.1 Underwriting result - - - Financial result - - - Direct re
Slide 47: Premiums by business lines and country (I)
3M 2017 Premiums by business lines and country (I) IFRS (€mn) GWP MTPL GWP Casco GWP Other property 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% Austria 106.9 107.4 -0.4% 92.4 89.3 3.5% 530.2 526.9 0.6% Czech Republic 70.0 68.4 2.2% 57.6 52.2 10.4% 140.0 126.9 10.3% Slovakia 41.9 4
Slide 48: Premiums by business lines and country (II)
3M 2017 Premiums by business lines and country (II) IFRS (€mn) GWP Life regular GWP Life single GWP Health 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% Austria 347.6 349.3 -0.5% 110.2 174.1 -36.7% 103.4 100.8 2.5% Czech Republic 137.4 130.5 5.2% 19.3 25.3 -23.7% 3.3 3.4 -4.4% Slova
Slide 49: Country overview GWP / PBT / CoR
3M 2017 Country overview GWP / PBT / CoR IFRS (€mn) GWP Total Profit before taxes Combined Ratio net 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-% 3M 2017 3M 2016 +/-pp Austria 1,290.7 1,347.8 -4.2% 37.9 33.8 12.0% 95.8% 99.5% -3.7 Czech Republic 427.5 406.8 5.1% 42.0 42.9 -2.1% 94.9% 88.7% 6.2 Slovakia
Slide 50: P&C claims and cost ratio details
3M 2017 P&C claims and cost ratio details Claims ratio 3M y-o-y (net, %) Remarks for claims incurred 3M16 3M17 Czech Republic: increased claims ratio due to several large losses -2.4 +6.2 -2.0 +1.2 +4.9 Slovakia: increased claims expenses in MTPL and 68.3 66.4 Casco 65.9 63.5 63.3 64.1 65.2 57.1 54.
Slide 51: Exchange rates
3M 2017 – Exchange rates Balance Sheet: period-end exchange rate / P&L: average exchange rate 2017 2016 Balance Sheet Balance Sheet Country Currency P&L EUR P&L EUR EUR EUR Albania EUR/ALL 136.1300 135.8393 135.2300 138.3013 Belarus EUR/BYN 2.0111 2.0382 2.0450 2.2001 Bosnia EUR/BAM 1.9558 1.9558 1.
Slide 52: S&P rating confirmed in July 2016: A+/stable
S&P rating confirmed in July 2016: A+/stable/-- VIG remains the best rated company in the ATX Anchor: Business Risk Profile: Strong a+ „Strong competitive position, based on leading market positions in Austria and CEE“ „Sound diversification by business line and a well-established multichannel distr
Slide 53: VIG share (I)
VIG share (I) Current analyst recommendation split Share price development 3M 2017 Sell High EUR 23.640 Buy Low EUR 21.590 Price as of 31 Mar. EUR 22.680 Market cap. EUR 2.90bn Development YTD % +6.5 Hold VIG compared to ATX and Stoxx Europe 600 Ins. 115 105 95 85 Jan-17 Feb-17 Mar-17 VIG ATX SXIP I
Slide 54: VIG share (II)
VIG share (II) General information Shareholder structure Number of common shares: 128mn ISIN: AT0000908504 ~30% Wiener Städtische Free Float Listings: Wechselseitiger Versicherungsverein - Vienna – since 17 Oct. 1994 Vermögensverwaltung – Vienna Insurance Group ~70% Prague – since 5 Feb. 2008 Ticker
Slide 55: Contact details
Contact details Investor Relations Financial calendar 2017 Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna 12 May 2017 Annual General Meeting E-Mail: investor.relations@vig.com www.vig.com/ir 17 May 2017 Ex-dividend-day 18 May 2017 Record date dividend Nina Hig
Slide 56: 3M 2017 Agenda 2020 Segments
3M 2017 Agenda 2020 Segments Appendix
Slide 57: 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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