Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — Non-Deal Roadshow (August 2007)

40 slides from Vienna Insurance's roadshow presentation, Aug 22, 2007

  1. Slide 1: Vienna Insurance Group - Extending the CEE insurance play

    Vienna Insurance Group - Extending the CEE insurance play Roadshow Paris – 22 August 2007

  2. Slide 2: VIG is the Leading Austrian Insurance Group operating in 18 Countries

    VIG is the Leading Austrian Insurance Group operating in 18 Countries Market entry of Albania and Macedonia currently under way 2 Excellent market position in Austria and CEE No. 2 or No. 3 in the Czech Leading Position Republic, Slovakia, Romania in Austria and Bulgaria § #1 in Property & Casualty

  3. Slide 3: VIG – Top Player in CEE

    VIG – Top Player in CEE Number 2 among international insurance groups 3 Market Share in CEE Details ~ 15.0% § CEE is defined as: Bulgaria, Czech Republic, Hungary, Croatia, Poland, ~ 11.9% Romania, Serbia and Slovakia ~ 11.0%1 § Market shares are based on data from local insurance associations as of

  4. Slide 4: Largest CEE Insurance Pure Play

    Largest CEE Insurance Pure Play Only Vienna Insurance Group widely captures CEE potential 4 CEE Premiums as % of Total Group Premiums 37.5% VIG 31.1% 28.7% 2006 2005 12.6% UNIQA 10.2% 2004 10.1% 3.6% Allianz 3.3% 3.0% VIG‘s unique share of CEE business growing fastest 2.6% (HY 2007: already 40% of t

  5. Slide 5: Acquisition of Asirom

    Acquisition of Asirom Strengthening VIG´s no.1 position in dynamic Romanian market 5 Acquisition of Asirom* Romanian Insurance Market Population (mn) 21.6 GDP/Capita 5,463 USD Penetration 1.7% 30 % Density 94.5 USD Market Growth (01-06, CAGR) 42.8% Asirom § market growth in Non-life was 40.7% YoY vs

  6. Slide 6: VIG Enters two New Promising Markets…

    VIG Enters two New Promising Markets… …with high growth potential 6 GDP Growth Penetration Density 2005 2004-2006e2 2005 (USD) EU 15 1.7% 8.6% 2,878 Austria 2.0% 6.2% 2,342 CEE1 4.1% 3.2% 176 Turkey 7.5% 1.6% 79 Albania 5.5% 0.4% 13 Turkish market data Albanian market data Population (mn) 72.6 Popul

  7. Slide 7: Acquisition Details: Ray Sigorta and Sigma

    Acquisition Details Ray Sigorta and Sigma 7 Acquisition of Ray Sigorta Acquisition of Sigma1 TBIH TBIH (60% owned by VIG) (60%owned by VIG) ~75% ≥ 60% Ray Sigorta Sigma Sh.a § listed non-life insurance company with € 136mn § founded in 1998, non-life insurance company with premium volume (+30% YoY),

  8. Slide 8: CEE Region Offers "Double Leverage"

    CEE Region Offers „Double Leverage“ Sustainable growth through GDP and insurance penetration 8 6,000 GDP Growth Insurance Insurance Premium per Capita (USD) 2004-2006F Penetration 20051 Switzerland CEE2 4.1% 3.3% Netherlands GB Austria 2.0% 6.2% Belgium 4,000 Denmark EU 15 1.7% 8.6% Austria France U

  9. Slide 9: Significant Growth Potential in CEE for Insurance

    donau\Analyst Presentation\16 Analyst Presentation 17-Nov-2005.ppt Significant Growth Potential in CEE for Insurance Insurance Density, 2006 (Premiums per Capita) A 9 $3.500 3.305 Life Non-Life $3.000 $2.500 2.397 $2.000 $1.500 1.101 $1.000 520 $500 376 337 310 308 172 101 94 89 77 60 $0 1 EU-15 A S

  10. Slide 10: VIG Has Been a Pioneer in the CEE Region

    VIG Has Been a Pioneer in the CEE Region Following a Very Targeted Expansion Strategy 10 § Focus – Retail § Investment philosophy – Step-by-step market entry – Tight operational management – 2-4 years to reach break-even, accelerated growth thereafter – Czech and Slovak businesses have reached >20%

  11. Slide 11: VIG: Attractive Franchise (I)

    VIG: Attractive Franchise (I) Distribution is key: Multi-brand strategy 11 Austria CEE § VIG is umbrella brand § local companies keep well established brands to support distribution

  12. Slide 12: VIG: Attractive Franchise (II)

    VIG: Attractive Franchise (II) Distribution is key: Multi-channel strategy 12 Comments Strong Multi-Channel Distribution § Austria: Tied Roughly 30/30/30% split between tied agents agents/ bank distribution/ brokers etc. in Financial new business advisors Bank distribution § CEE: Brokers Direct Diff

  13. Slide 13: VIG in Austria

    VIG in Austria Attractive franchise plus growth potential in life insurance 13 Life Premium per Capita (USD) § Leading market position in all business lines 2,198 - #1 in property & casualty with 21% market share 2006 1,130 1,105 2000 - #1 in life with 25% market share 607 - #2 in health with 21% ma

  14. Slide 14: Vienna Insurance Group - 6M 2007 results Highlights

    Vienna Insurance Group- 6M 2007 results Highlights

  15. Slide 15: Recent Developments

    Recent Developments VIG expanding by organic growth and acquisitions 15 6M 2007 Highlights Strategic Update § Above market organic growth in all major § Asirom: purchase of 30% stake markets – increase of market shares § Ray Sigorta: after public tender § CEE premium share above 40% TBIH will hold ~

  16. Slide 16: 6M 2007 Highlights (I)

    6M 2007 Highlights (I) GWP up by 15.3%; profitability rising significantly 16 GWP Profit before Tax 321 5,882 15.3% 50.3% 5,008 240 4,101 215 3,493 3,029 156 143 2,636 125 2004 2005 2006 6M 05 6M 06 6M 07 2004 2005 2006 6M 05 6M 06 6M 07 IFRS IFRS Net Profit after Tax and Minorities Combined Ratio 2

  17. Slide 17: 6M 2007 Highlights (II)

    6M 2007 Highlights (II) Sound increase in EPS 17 EPS (annualised) ROE before Tax 26.2 3.06 21.9 2.48 19.5 2.27 2.17 16.9 2.07 14.8 13.2 1.41 2004 2005 2006 6M 05 6M 06 6M 07 2004 2005 2006 6M 05 6M 06 6M 07 IFRS IFRS

  18. Slide 18: 6M 2007 results P&L and Balance Sheet

    Vienna Insurance Group- 6M 2007 results P&L and Balance Sheet

  19. Slide 19: 6M 2007 Income Statement

    6M 2007 Income Statement IFRS (€mn) 19 6M 2007 6M 2006 +/-% 1. Gross written premiums 3.493,1 3.029,3 15,3 2. Net earned premiums 2.829,1 2.411,3 17,3 1 3. Net investment income 553,2 361,1 53,2 4. Other income 20,7 29,0 -28,9 Total income 3.403,0 2.801,4 21,5 6. Expenses for claims incurred -2.420,

  20. Slide 20: 6M 2007 Balance Sheet

    6M 2007 Balance Sheet IFRS (€mn) 20 6M 2007 2006 +/- % Intangible assets 496 461 7.4 Total investments 18,912 17,260 9.6 Unit- and index-linked investments 2,825 2,341 20.7 Reinsurers’ share in technical provisions 1,188 963 23.3 Receivables 1,220 984 24.0 Deferred tax assets 38 24 63.1 Other assets

  21. Slide 21: P&L Major Items – Gross Written Premiums

    6M 2007 P&L Major Items – Gross Written Premiums Largely growing above market in Austria and CEE (€ mn) 21 § Group GWP increased by 15.3% to € 3,493mn 126.8 § Austria: total GWP up 5.8% to reach € 1,958mn. Life up 9.6% at 118.0 € 895.7mn with sound growth in subsidised pensions vs. weaker 1,408.6 Ot

  22. Slide 22: GWP Split by Region

    GWP Split by Region Share of Other CEE markets going up significantly 22 GWP by Geography 6M 05 GWP by Geography 6M 06 GWP by Geography 6M 07 Other CEE Other Other Other 5.6% 5.4% 3.9% 3.6% Other CEE Other CEE Slovakia 10.9% 16.8% Austria 6.9% Austria Slovakia 56.1% Austria 65.5% 6.6% 61.0% Slovakia

  23. Slide 23: P&L Major Items – Expenses for Claims Incurred

    6M 2007 P&L Major Items – Expenses for Claims Incurred Loss ratio reduced substantially 23 § Group loss ratio (net) with marked improvement by 2.9% to 64.7% despite €10mn net effect from Kyrill storm in Q1 2007 § Austrian loss ratio lower by 1.9% pts at 66.9% thus reaching regular level § Czech Repu

  24. Slide 24: P&L Major Items – Operating Expenses

    6M 2007 P&L Major Items – Operating Expenses Cost ratio impacted by strong business growth 24 § Group cost ratio (net) up at 31.3%, driven by acquisition costs: VIG does not account for DACs which affects cost ratio roughly by 2% pts (premium income is high at start of the year and leads to higher d

  25. Slide 25: P&L Major Items – Net Investment Income

    6M 2007 P&L Major Items – Net Investment Income Sound growth in line with business expansion (€mn) 25 § Increase in Group Net Investment Income by 53.2% to Net Investment Income € 553.2mn 11.1 63.3 § Austria grew by 53.0% influenced by trading gains, full 9.3 Other consolidation of Austrian life sub

  26. Slide 26: Financial Targets

    Financial Targets Target for 2007 to be exceeded; dividend increase of 25% 26 VIG’s financial targets Comments Profit before Tax Targets in € mn § Based on the 1st HY results the 2007 target of CAGR: ~ 18% 520 - 530 € 410mn will be exceeded 470 - 480 § For the business year 2007 management will 410+

  27. Slide 27: 6M 2007 results Appendix

    Vienna Insurance Group- 6M 2007 results Appendix

  28. Slide 28: P&L – Business Segments: Property & Casualty

    6M 2007 P&L – Business Segments Property & Casualty, IFRS (€mn) 28 6M 2007 6M 2006 +/-% 1. Gross written premiums 1,976.2 1,721.5 14.8 2. Net earned premiums 1,331.9 1,118.3 19.1 3. Net investment income 93.3 56.8 64.2 4. Other income 11.9 14.4 -17.4 Total income 1,437.2 1,189.6 20.8 6. Expenses for

  29. Slide 29: P&L – Business Segments: Life

    6M 2007 P&L – Business Segments Life, IFRS (€mn) 29 6M 2007 6M 2006 +/-% 1. Gross written premiums 1,362.0 1,157.1 17.7 2. Net earned premiums 1,344.3 1,144.6 17.4 3. Net investment income 445.8 292.2 52.6 4. Other income 8.7 14.6 -40.2 Total income 1,798.8 1,451.4 23.9 6. Life benefits -1,423.9 -1,

  30. Slide 30: P&L – Business Segments: Health

    6M 2007 P&L – Business Segments Health, IFRS (€mn) 30 6M 2007 6M 2006 +/-% 1. Gross written premiums 155.0 150.8 2.8 2. Net earned premiums 152.9 148.4 3.0 3. Net investment income 14.1 12.1 16.5 4. Other income 0.0 0.0 -100.0 Total income 166.9 160.5 4.0 6. Expenses for claims incurred -135.3 -131.

  31. Slide 31: P&L - Split by Regions (I)

    6M 2007 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 31 Austria Czech Republic Slovakia 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 1. Gross written premiums 1,957.7 1,850.4 5.8 577.1 532.7 8.3 243.8 199.6 22.1 2. Net earned premiums 1,611.2 1,524.1 5.7 445.8 392.4 13.

  32. Slide 32: P&L - Split by Regions (II)

    6M 2007 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 32 Other CEE Other TOTAL 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 1. Gross written premiums 587.7 328.7 78.8 126.8 118.0 7.5 3,493.1 3,029.3 15.3 2. Net earned premiums 470.2 251.3 87.1 112.0 103.9 7.8 2,829.1 2,

  33. Slide 33: 6M 2007 Results by Country

    6M 2007 Results by Country IFRS (€mn) 33 Non-Life Life Total Profit before Tax Combined Ratio 6M 2007 6M 2006 6M 2007 6M 2006 6M 2007 6M 2006 6M 2007 6M 2006 6M 2007 6M 2006 Austria 1,062.0 1,032.9 895.7 817.5 1,957.7 1,850.4 138.5 101.9 94.3% 95.8% Czech Rep. 442.3 417.7 134.8 115.0 577.1 532.7 35.

  34. Slide 34: Change in Group Shareholders' Equity / APE

    Change in Group Shareholders‘ Equity / APE IFRS 34 1.1. - 30.06.2007 1.1. - 30.06.2006 Equity as of 1 January 2.283.208 2.059.332 Currency Changes -1.957 -2.999 Changes in consolidation 39.396 15.995 Capital Increase - - Unrealised Gains and Losses on financial -69.667 -61.274 instruments available

  35. Slide 35: Q2 2007 Income Statement

    Q2 2007 Income Statement IFRS (€mn) 35 Q2 2007 Q2 2006 +/-% 1. Gross written premiums 1,474.8 1,277.1 15.5 2. Net earned premiums 1,364.8 1,164.0 17.2 3. Net investment income1 347.9 199.1 74.8 4. Other income 11.8 13.2 -10.9 Total income 1,724.4 1,376.3 25.3 6. Expenses for claims incurred -1,235.8

  36. Slide 36: 6M 2007 Exchange Rates

    6M 2007 Exchange Rates 36 6M 2007 6M 2006 Balance Sheet P&L Balance Sheet P&L Country Curr. EUR EUR EUR EUR Bulgaria BGN 0.511300 0.511300 0.511300 0.511300 Croatia HRK 0.136921 0.135913 0.138036 0.136773 Liechtenstein CHF 0.604120 0.612838 0.638081 0.640615 Poland PLN 0.265414 0.260139 0.246633 0.2

  37. Slide 37: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 105,000,000 37 Shareholder Structure 28.7 % Free Float 71.3 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  38. Slide 38: Shareholder Structure (II)

    Shareholder Structure (II) 38 Free Float Geographical Split 0.3% Others 32.0 % Austria 20.9% Continental Europe 25.5% 21.3% North America UK & Ireland

  39. Slide 39: Contact Details

    Contact Details Investor Relations 39 Wiener Städtische Versicherung AG Vienna Insurance Group Schottenring 30, 1010 Vienna, Austria www.wienerstaedtische.com Vienna Stock Exchange: WST Reuters: WISV.VI Bloomberg: WST AV Datastream: O:WNST § Thomas Schmee Tel. +43 (0)50 350 – 21900 t.schmee@staedtis

  40. Slide 40: Disclaimer

    Disclaimer 40 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

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