Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — FY2014 Earnings Presentation
15 slides from Vienna Insurance's earnings presentation, Apr 14, 2015
Slide 1: Group Embedded Value Results 2014
Vienna Insurance Group Group Embedded Value Results 2014 Vienna, 14 April 2015
Slide 2: Introduction
Introduction Group Embedded Value Reporting Market Consistent Embedded Value©1 (MCEV) Principles applied Group Embedded Value (GEV) calculated as Life & Health (L&H) MCEV plus Adjusted Net Asset Value (ANAV) for Property & Casualty (P&C) All results are based on local GAAP. All results are shown aft
Slide 3: Methodology
Methodology GEV GEV reflects the present value of amounts deemed to be distributable to shareholders. MCEV for L&H: Adjusted Net Asset Value (ANAV) plus Value of In-Force (VIF) determined as Present Value of Future Profits (PVFP) minus Time Value of Financial Options and Guarantees (TVFOG) minus Fri
Slide 4: Methodology
Methodology GEV MCEV is based on stochastic cash flow projections using market consistent economic scenarios. Liquidity premium and extrapolation methodology follows recent market practice. The MCEV allows for management actions and policyholder behaviour. Assumed policyholder profit participation a
Slide 5: Group Embedded Value
Group Embedded Value Results L&H P&C Total €mn 2014 2013 2014 2013 2014 2013 Austria / Germany Free Surplus -14.9 578.7 Required Capital 1,042.5 476.6 ANAV 1,027.7 1,055.3 394.8 311.2 1,422.5 1,366.5 PVFP 1,577.0 1,742.4 1,577.0 1,742.4 - TVFOG -264.3 -146.9 -264.3 -146.9 - FCRC -121.9 -69.1 -121.9
Slide 6: Return on Embedded Value
Return on Embedded Value Results €mn L&H P&C Total Austria / Germany GEV 2013 Reported 2,476.8 311.2 2,788.0 Opening Adjustments -120.0 25.8 -94.2 thereof dividends -120.8 183.4 62.6 GEV 2013 Adjusted 2,356.9 337.0 2,693.8 Return on GEV -324.7 -13.8% 57.8 17.2% -266.8 -9.9% GEV 2014 2,032.2 394.8 2,
Slide 7: Value of New Business
Value of New Business Results €mn 2014 2013 Austria / Germany Value of New Business 22.8 35.7 APE 206.7 163.9 APE-Ratio 11.0% 21.8% PVNBP 2,395.1 1,800.0 PVNBP-Ratio 1.0% 2.0% CEE Value of New Business 126.7 123.1 APE 262.3 270.1 APE-Ratio 48.3% 45.6% PVNBP 1,950.1 2,042.4 PVNBP-Ratio 6.5% 6.0% Tota
Slide 8: Sensitivities
Sensitivities in % of the Life & Health MCEV Change in Yield Curve +1% 15.6% -2.7% Change in Yield Curve -1% -28.1% 1.4% Equity and Property Values -10% -3.8% -0.8% Equity and Property Implied Volatilities +25% -0.2% -0.2% Swaption Implied Volatilities +25% -3.1% -0.2% Maintenance Expenses +10% -3.4
Slide 9: Sensitivities
Sensitivities in % of the Life & Health Value of New Business Change in Yield Curve +1% 64.2% -7.0% Change in Yield Curve -1% -75.2% 5.4% Equity and Property Values -10% Equity and Property Implied Volatilities +25% -3.2% -0.2% Swaption Implied Volatilities +25% -12.7% 0.2% Maintenance Expenses +10%
Slide 10: Development
Development Return on Group Embedded Value (€mn) 6,152.7 2.0% (+118.5) 203.6 6,111.7 6.9 5,993.2 -166.4 -85.1 2013 reported Dividends Foreign exchange 2013 adjusted Return in L&H Return in P&C 2014 effects and others 10
Slide 11: Analysis of Change Life & Health MCEV – Austria / Germany
Analysis of Change Life & Health MCEV – Austria / Germany (€mn) -13.8% (-324.7) 112.4 31.3 22.8 2,356.9 -24.0 2,032.2 -467.2 2013 adjusted Value of New Roll forward Assumptions Experience and Economic and 2014 Business other operating other non-operating 11
Slide 12: Analysis of Change Life & Health MCEV – CEE
Analysis of Change Life & Health MCEV – CEE (€mn) +14.7% (+239.6) 48.5 1,865.6 51.7 20.9 126.7 -8.3 1,625.9 2013 adjusted Value of New Roll forward Assumptions Experience and Economic and 2014 Business other operating other non-operating 12
Slide 13: Reconciliation
Reconciliation IFRS Equity to ANAV €mn 2014 2013* Consolidated IFRS equity 5,283.4 4,966.6 Minorities -173.0 -170.8 Hybrid capital -245.6 -245.6 Intangible assets -2,369.8 -2,317.5 Subtotal 2,495.0 2,232.6 Goodwill, other intangible assets and capital consolidation adjustments 757.7 641.2 Difference
Slide 14: Summary
Summary Highlights GEV of € 6,111.7 mn (-0.7%) Positive Return on GEV of 2.0% amounting to € 118.5 mn High P&C growth with return of 10.1% Excellent CEE profit margin of 6.5% Stable Surplus in Claims and Unearned Premium Reserves of € 534.6 mn 14
Slide 15: Disclaimer
Disclaimer Cautionary statement regarding forward-looking information This presentation contains forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and it might not be possible to achieve the predictions, forecasts, projections and other outcomes describ
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