Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Erste Group Investor Conference 2012
25 slides from Vienna Insurance's conference presentation, Oct 3, 2012
Slide 1: VIG – A Unique Growth Story in CEE
VIG – A Unique Growth Story in CEE Erste Group Investor Conference Stegersbach, 3 October 2012
Slide 2: Contents
Contents Introduction Strategy Performance Potential Financials 2
Slide 3: VIG an Investment Proposition
VIG an Investment Proposition Facts & Figures Introduction Early mover in CEE No 1 in CEE core markets > 20 years of experience >17% market share S&P Focus on insurance Rating Strong capitalisation EUR 8.9bn premiums Solvency I >200% A+ stable outlook Improving technical Prudent financial results an
Slide 4: Contents
Contents Introduction Strategy Performance Potential Financials 4
Slide 5: Well-proven Business Model of VIG to Continue
Well-proven Business Model of VIG to Continue Strategic cornerstones of VIG Strategy Focus on insurance Concentration on business Austria and CEE Multi-brand policy as distribution catalyst Local Strategic partnership entrepreneurship with Erste Group Bank 5
Slide 6: Dynamic Expansion into CEE
Dynamic Expansion into CEE Focus on Austria and CEE Strategy VIG in CEE 1990: 3 markets VIG today: 24 markets Successful Track Record Client/talent base: 24mn people Client/talent base: >175mn people = VIG core markets (Austria, Czech Republic, Slovakia, Poland, Romania, Croatia, Serbia, Bulgaria, H
Slide 7: Excellent Market Positions of VIG
Excellent Market Positions of VIG VIG No 1 in its core markets - market share of more than 17% Introduction Market Share in % AT 26.7% CZ 30.2% SK 34.1% RO 25.1% BG 15.5% PL 8.3% HR 6.9% RS 8.5% UA 3.0% HU 5.6% VIG is 1.5x bigger than peers in its core markets Source: Macroeconomic data: IWF, World
Slide 8: Unique Market Approach with Long-Term Focus
Unique Market Approach with Long-Term Focus Management remains committed to proven fundamentals Strategy Multi-brand Multi-channel Erste Group Cooperation Best approach for <10% Strong partner Tied agents 11% - 20% broad client access in 11 common markets Brokers 21% - 30% Other 1 Banks 31% - 40% Lo
Slide 9: Contents
Contents Introduction Strategy Performance Potential Financials 9
Slide 10: Extraordinary Development in previous 10 Years
Extraordinary Development in previous 10 Years Premium AND profit growth over the last decade Performance GWP (in EUR bn) PBT (in EUR mn) Markets ~ 559 ~ 8.9 24 x 2.2 x 3.1 x 21.4 11 x 21.4 ~ 2.9 2001 Today ~ 26 Unique presence in CEE 2001 2011 2001 2011 compared to peers Premiums more than tripled
Slide 11: VIG’s Business Model Pays Off
VIG’s Business Model Pays Off Strategy stood the test of deepest economic crisis since World War II Performance Gross premiums written Profit before taxes 128 VIG Start of most severe CAGR 6.3% crisis since 1945 100 135 VIG 130 129 CAGR 6.5% Peer 3 125 CAGR -19.5% 50 42 120 Peer 1 118 38 CAGR 4.3% P
Slide 12: VIG Outperforming Market
VIG Outperforming Market VIG to grow continuously above market also in coming years Performance VIG vs. Market CAGR 2005-2011 60% +47.1 50% +42.8 40% +33.9 30% +17.3 Markt VIG 20% +12.2 +17.2 +7.5 +3.9 +5.6 10% +3.0 0% AT CZ SK PL RO BG HR UA HU VIG -10% VIG’s overall organic growth on average outpe
Slide 13: Contents
Contents Introduction Strategy Performance Potential Financials 13
Slide 14: VIG – The Basic Concept
VIG – The Basic Concept Model of insurance demand development still valid Potential 2001 2011 1,000 Insurance Density CZ (USD) Growth Markets SK PL 500 HU Emerging Markets CZ SK PL RO HU RO 0 1,000 10,000 GDP per Capita (USD) 100,000 GDP growth and catch-up process are insurance drivers Source: Swis
Slide 15: CEE to Grow Faster than the EU in Coming Years
CEE to Grow Faster than the EU in Coming Years GDP per capita (real, purchasing power parity) Potential 10,5% 9,9% 9,7% 9,1% 7,5% CAGR 10y 6.1% 6,2% 6,2% 6,0% 5,7% 5,5% 5,6% 5,1% 5,2% 5,3% 5,0% 4,7% 4,1% 3,6% 3,6% 3,1% 3,4% 3,4% 3,1% 3,0% 2,4% 2,6% 2,6% 2,4% CAGR 10y 3.0% 1,4% 0,5% 2002 2003 2004 20
Slide 16: Fundamental Indicators for Motor Business in CEE
Fundamental Indicators for Motor Business in CEE Number of registered cars in CEE show motor under-penetration Potential Age of registered cars Number of registered cars Registered cars per 1,000 inhabitants 250 300 350 400 450 500 550 7 31% AT 40% 42% 48% 8 60% 64% 72% Average age 9 30% 22% d te 26
Slide 17: Health Insurance to become a Topic in CEE
Health Insurance to become a Topic in CEE Reforms of health insurance systems in discussion Potential Private prepaid plans as Government expenditure on health % of total expenditures on health 2000 2008 100 Government expenditure as % of total 5.1% 95 CZ D ec 4.5% re expenditure on health 90 as SK
Slide 18: CEE is the Best Place to be for VIG
CEE is the Best Place to be for VIG VIG to exploit full potential of the region Potential Population GWP PBT Austria ~ 5% ~ 47% ~ 51% Czech Republic, Slovakia & Hungary ~ 15% ~ 31% ~ 44% Albania, Croatia, Georgia, Macedonia, Montenegro & Serbia ~ 12% ~ 3% < 1% The Baltic, Bulgaria, Poland, Romania &
Slide 19: Contents
Contents Introduction Strategy Performance Potential Financials 19
Slide 20: 6M 2012 – Financial Highlights (I)
6M 2012 – Financial Highlights (I) Financials Gross written premiums (€mn) Profit before Tax (€mn) 8.593 8.884 559 8.019 508 +11.7% 441 +6.9% 5.283 4.589 4.729 282 302 256 2009 2010 2011 6M 10 6M 11 6M 12 2009 2010 2011 6M 10 6M 11 6M 12 Net Profit after Tax and Minorities (€mn) Combined Ratio (net,
Slide 21: 6M 2012 – Financial Highlights (II)
6M 2012 – Financial Highlights (II) Financials EPS (€)1 ROE before Tax (%)1 3.30 3.05 2.87 2.76 2.65 2.40 11.8 10.5 11.1 10.8 11.2 10.0 2009 2010 2011 6M 10 6M 11 6M 12 2009 2010 2011 6M 10 6M 11 6M 12 1: annualised figures; EPS net of hybrid interest 21
Slide 22: Strong Contribution from CEE
Strong Contribution from CEE CEE is growth driver for VIG also going forward Financials More than 50% of premiums from CEE About 50% of profit before taxes from CEE AT & AT & Others Others GWP PBT CEE CEE Dividend increase by CAGR of 9% since SPO Overall premium split by line of business 1.10 Health
Slide 23: Strategic Priorities of Managing Board
Strategic Priorities of Managing Board Promising story still ahead Priorities of VIG Vienna Insurance Group committed to 1. Insurance business and 2. Austria and CEE and set itself the following goals: to outperform market growth also in the next years to keep volatilities as low as possible to cont
Slide 24: VIENNA INSURANCE GROUP
VIENNA INSURANCE GROUP No 1 insurer Sustainable in its profit CEE core development markets Long-term Sound growth capitalisation potential 24
Slide 25: 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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