Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — German Corporate Conference 2018
33 slides from Vienna Insurance's conference presentation, January 2018
Slide 1: Vienna Insurance Group Investor Presentation
Vienna Insurance Group Investor Presentation German Corporate Conference 2018 Results for the first three quarters 2017
Slide 2: VIG is the leading insurer in Austria and CEE
VIG is the leading insurer in Austria and CEE… Operates A+ Present about with stable outlook in25 50 VIG best rated countries insurance company in the companies ATX Premiums (GWP) Profit (PBT) Current market Continuous payout Non-CEE capitalization of dividends since Non-CEE 36% 46% CEE Split CEE Sp
Slide 3: Dynamic expansion into CEE out of Austria
Dynamic expansion into CEE out of Austria VIG with the most diversified network throughout the region 1990: 3 markets Today: 25 markets Client/talent base: 24mn people Client/talent base: 180mn people 1990 1996 1999 2001/2002 2004 2006 2007 2008 2010 2011 2014 CZ, SK HU, PL, IT, LI, HR RO, BY SI GE
Slide 4: Management principles
Management principles Local entrepreneurship • Knowledge of local needs and markets • Decentralised structures and efficient decision-making procedures Multi-brand strategy • Around 50 brands in 25 countries • Usage of established local brands Multi-channel distribution • Various distribution channe
Slide 5: 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 6: Overview of the 9M 2017 results
Overview of the 9M 2017 results Another quarter with solid developments €7,153mn GWP up 2.7% y-o-y Growth in overall current premium business: +5.6% GWP CEE premium growth: +8.7%; more than 50% of premiums deriving from CEE PBT increased by 9.9% y-o-y €331.2mn PBT in CEE up 12.4% y-o-y; more than 60
Slide 7: CEE region with excellent macroeconomic development
CEE region with excellent macroeconomic development
Slide 8: CEE region growing stronger than EU15
CEE region growing stronger than EU15 Promising GDP per capita growth 2017 - 2021 Gap in GDP growth in purchasing parities CEE vs. EU15 CAGR 2017-2021 real GDP 8% 3.2% (CEE) vs. 1.7% (EU15) GAP 1.5%p. 6% 4% 2% 0% -2% real GDP growth PPP (USD) CEE -4% real GDP growth PPP (USD) EU15 -6% Change in GDP
Slide 9: Key economic indicators in major VIG markets
Key economic indicators in major VIG markets showing strong growth potential, 2017-19 Austria Czech Republic Slovakia Poland Romania Positive AT CZ SK PL RO Negative 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 GDP growth in % 2.3 1.9 1.5 3.5 2.6 2.3 3.3 3.7 3.9 3.8 3.3
Slide 10: 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. 2017-2020 Insurance density 2016, in EUR (premiums per capita) AT 1.6 AT 1,955.0 CZ 2.4 CZ 504.4 HR 2.5 HR 278.9 BG 2.9 BG 147.4
Slide 11: VIG is best positioned to leverage positive market development in CEE
VIG is best positioned to leverage on the positive market development in CEE Excellent market shares throughout the region Market positions 2 Country Total Market Share Total Non-life Life Austria 1 1 1 23.4% Czech 1 2 1 32.3% 4 Republic Slovakia 1 2 1 32.9% Poland 4 4 4 6.1% Romania 1 1 2 23.4% 3 T
Slide 12: Strategic approach and initiatives to capture growth potential
Strategic approach and initiatives to capture growth potential
Slide 13: Unique market approach with long-term focus
Unique market approach with long-term focus Multi-brand and multi-channel provide best access to customers Multi-brand Multi-channel Local brands with good customer recognition Austria are retained Different brands target different client groups Czech Rep. Multi-brand allows for internal benchmarkin
Slide 14: Successful partnership with Erste Group
Successful partnership with Erste Group Further enhancing cooperation Strengthening bank insurance with Erste Group • Common project with Erste Group Target: optimisation of products, distribution and profits for both with focus on health and other non- life business in all the markets where Erste a
Slide 15: Growth initiatives
Growth initiatives Leveraging selected business areas Health SME – New products to target SMEs Potential in the area of private health insurance business. GWP generated from SMEs (in €mn) VIG companies with health ins. CAGR Focus on health insurance +5.1% 308 287 294 265 PL HU RO BG TR 2013 2014 201
Slide 16: Assistance
Assistance Successful rollout in CEE since 2013 • Assistance as an integrated part of 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 tra
Slide 17: Digitisation: Decentralised approach with local companies 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 18: Creating added value by increasing operating performance
Creating added value by increasing operating performance Medium-term combined ratio target of 95% Optimisation of business model Activities 2017 Mergers in AT, CZ, SK, HU and HR • Shared Services VIG will merge the former savings bank insurers Creating cost benefits by merging back-office acquired i
Slide 19: Outlook 2019
Outlook 2019 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 aims to incre
Slide 20: Appendix
Appendix VIG? VIENNA INSURANCE GROUP 20
Slide 21: 9M 2017 Income statement
9M 2017 Income statement IFRS (€mn) €mn 9M 2017 9M 2016 +/-% Gross premiums written 7,152.6 6,961.8 2.7 Net earned premiums 6,325.8 6,158.9 2.7 Financial result1 732.1 703.2 4.1 Other income 131.7 122.8 7.3 Total income 7,189.6 6,984.9 2.9 Expenses for claims and insurance benefits -5,167.8 -5,091.5
Slide 22: Overall premium growth of 2.7%
Overall premium growth of 2.7% Overview of premiums by segments (I) Gross written premiums (€mn; y-o-y change) 9M16 9M17 -3.1% 3,107.4 3,009.6 +4.3% +7.5% +9.5% 1,156.7 1,206.5 -4.7% 547.9 589.2 616.5 675.2 391.8 373.4 Austria Czech Republic Slovakia Poland Romania Austria: premium decrease driven b
Slide 23: Positive CEE premium development
Positive CEE premium development Overview of premiums by segments (II) 9M16 9M17 Gross written premiums (€mn; y-o-y change) +9.4% -15.2% +129.4% 263.1 269.4 239.7 +6.1% 240.4 -3.7% 228.5 +10.9% 162.0 171.8 160.7 154.7 119.6 104.5 107.8 The Baltic Hungary Bulgaria Turkey/ Remaining CEE Other Georgia
Slide 24: Solid premium development with ongoing life single premium reduction
Solid premium development with ongoing life single premium reduction Gross written premiums (€mn; y-o-y change) MTPL Casco Other property Total premiums +3.7% +12.5% +5.5% +2.7% 1,002 1,039 811 3,119 7,153 721 2,957 6,962 1,039 MTPL 1,002 721 811 Casco 9M16 9M17 9M16 9M17 9M16 9M17 Other Property 2,
Slide 25: Group PBT of €331.2mn up by 9.9% y-o-y
Group PBT of € 331.2mn up by 9.9% y-o-y Overview of profits by segments (I) Profit before taxes (€mn; y-o-y change) 9M16 9M17 -0.4% +2.2% 114.1 113.7 103.4 105.7 +0.7% +79.0% 39.6 39.9 +39.0% 31.0 17.3 6.4 8.9 Austria Czech Republic Slovakia Poland Romania Austria: better technical result in P&C mor
Slide 26: Double-digit profit growth in CEE
Double-digit profit growth in CEE Overview of profits by segments (II) Profit before taxes (€mn; y-o-y change) 9M16 9M17 +21.8% +6.2% 20.3 16.7 +7.5% +0.3% 11.6 12.4 +24.9% 5.7 6.9 6.9 5.3 2.8 3.5 n.a. -1.2 -7.8 The Baltic* Hungary Bulgaria Turkey/ Remaining CEE Other Georgia markets The Baltic: sig
Slide 27: Combined ratio (P&C) at 97.3%
Combined ratio (P&C) at 97.3% Mixed picture for CoR developments P&C Combined ratio development P&C CoR 9M y-o-y regional development (net, %) 99.3 AT -2.3%p 97.9 97.3 96.9 96.9 97.3 97.0 92.9 30.5 30.4 31.9 31.3 30.5 CZ +3.9%p 96.8 95.3 SK +0.6%p 95.8 67.4 66.9 64.9 65.6 66.8 100.7 PL -6.0%p 94.7 1
Slide 28: Overview of investments and bond portfolio
Overview of investments and bond portfolio No material changes in 9M 2017 9M 2017: Total €37.2bn Bond portfolio by rating1 Other 5% 5% 6.7% 19% 17% 1.3% BBB 7.1% 0.0% Real Estate total 15.5% A 41% 44% 5.8% AA 24% 23% AAA 10% 10% 9.7% 12M16 9M17 4.3% 65.2% Bond portfolio by issuer Corporates 18% 19%
Slide 29: VIG share (I)
VIG share (I) Current analyst recommendation split Share price development 12M 2017 Sell High EUR 26.520 Low EUR 21.590 Buy Price as of 29 Dec. EUR 25.765 Market cap. EUR 3.60bn Development YTD % +20.96 Hold VIG compared to ATX and Stoxx Europe 600 Ins. 130 120 110 100 90 Jan-17 Feb-17 Mar-17 Apr-17
Slide 30: 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 31: Contact details
Contact details Investor Relations Financial calendar 2018* Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna 22 Mar. 2018 Preliminary results for the E-Mail: investor.relations@vig.com financial year 2017 www.vig.com/ir 18 Apr. 2018 Results and Annual Report Nin
Slide 32: The leading insurance specialist in Austria and CEE
THE LEADING INSURANCE SPECIALIST IN AUSTRIA AND CEE. VIG? VIENNA INSURANCE GROUP WIENER STADTISCHE ‘VIENNA INSURANCE GROUP @llonav VIENNA INSURANCE GROUP ‘S-VERSICHERUNG VIENNA INSURANCE GROUP KOMUNALNA POISTOVNA VIENNA INSURANCE GROUP SLOVENSKES SPORITECNE ‘VIENNA INSURANCE GROUP WIENER Was STADTIS
Slide 33: 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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