Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — Q1 2020 Earnings Presentation
45 slides from Vienna Insurance's earnings presentation, May 20, 2020
Slide 1: 3M 2020 Results Presentation
3M 2020 RESULTS PRESENTATION Vienna, 20 May 2020
Slide 2: 3M 2020 Results Conference Call: Presenting team and topics
3M 2020 RESULTS CONFERENCE CALL Presenting team and topics Speaker Topics Liane Hirner, CFO Highlights p. 3 Peter Höfinger Financials & Investments p. 5 Executive Summary p. 13 Solvency Overview YE 2019 p. 16 Appendix 1: Segments p. 22 Appendix 2: Financials p. 35 2 VIG VIENNA INSURA
Slide 3: Highlights
HIGHLIGHTS FINANCIALS & INVESTMENTS EXECUTIVE SUMMARY SOLVENCY OVERVIEW YE 2019 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur when rounded amounts or percentages are added up. 3 VIG VIENNA INSURANCE GROUP
Slide 4: Highlights 3M 2020
HIGHLIGHTS 3M 2020 Sound performances in January and February allowed for a solid first quarter Gross written premium Profit before taxes Combined Ratio € 3,118.2mn € 121.9mn 95.1% GWP up by 7.2% (+€210mn) PBT down by 4.4% (-€5.6mn) -1.7ppt driven by improved claims ratio Strongest contribution by
Slide 5: Financials & Investments
HIGHLIGHTS FINANCIALS & INVESTMENTS EXECUTIVE SUMMARY SOLVENCY OVERVIEW YE 2019 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards
Slide 6: Growth in premiums (+7%) and net profit (+3%)
GROWTH IN PREMIUMS (+7%) AND NET PROFIT (+3%) 3M 2020 Income statement €mn 3M 2020 3M 2019 +/- % Gross premiums written Premium growth driven by other property (+€131mn), life single 3,118.2 2,908.2 7.2 premium business (+€68mn; increased coverage to existing Net earned premiums 2,488.3 2,303.0 8.
Slide 7: Top-line growth based on excellent start into 2020
TOP-LINE GROWTH BASED ON EXCELLENT START INTO 2020 Overview by segments Gross written premiums (€mn; y-o-y chg.) Overall GWP of €3.1bn (+7.2%); organic growth of +5.3% CEE growth of 9.4% Premium growth drivers are Austria (+€86mn), Poland (+€63mn; incl. first-time consolidation of Wiener TU),
Slide 8: Growth in all lines of business; COVID-19 impact expected from Q2
GROWTH IN ALL LINES OF BUSINESS; COVID-19 IMPACT EXPECTED FORM Q2 2020 ONWARDS Gross written premiums by lines of business (€mn; y-o-y chg.); incl. Central Functions MTPL Casco Other property Total premiums +7.2% 3M 2019 393 338 1,456 3,118 +5.9% +3.5% +9.0% 2,908 416 3M 2020 416 350 1,588 MTPL 393
Slide 9: Group profit before taxes of €121.9mn down by 4.4%
GROUP PROFIT BEFORE TAXES OF €121.9MN DOWN BY 4.4% Net profit after taxes and non-controlling interests of €85.8mn up by 2.8% (+€2.3mn) Result before taxes (€mn; y-o-y change) AT: €4.0mn profit decrease driven by less financial result based on negative capital markets developments CZ/SK: profit
Slide 10: Combined ratio (P&C) down to 95.1%
COMBINED RATIO (P&C) DOWN TO 95.1% Claims ratio improvement drives positive development P&C Combined Ratio development Overview by segments (y-o-y development net, %) Improved CoR in all market segments, despite Remaining CEE -1.1%p -1.0%p -1.5%p -7.8%p -5.1%p -1.4%p Claims ratio decrease in Q1
Slide 11: Investment split and bond portfolio overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW No material change in bond portfolio 3M 2020: Total €34.7bn Bond portfolio by rating1 in % 3.7% 1.5% 7.8% AAA AA A BBB Other 3M 2020 9.4 30.8 36.8 19.3 3.7 7.0% 12M 2019 9.0 31.0 36.8 19.1 4.1 7.4% 72.6% Bond portfolio by issuer in % 3M 2020 53.3 7.1 17.4
Slide 12: Financial result
FINANCIAL RESULT Current income down by 25.4% due to consolidation change of non-profit societies €mn 3M 2020 3M 2019 +/- % Current income 240,118 322,053 -25.4 Change of consolidation method of non-profit societies affects Income from appreciations 3,892 5,858 -33.6 current income, depreciation o
Slide 13: Executive Summary
HIGHLIGHTS FINANCIALS & INVESTMENTS EXECUTIVE SUMMARY SOLVENCY OVERVIEW YE 2019 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 13 VIG VIENNA INSURANCE GROUP
Slide 14: Current situation: COVID-19 update
CURRENT SITUATION COVID-19 update Priorities overall Internal Home office for vast majority of employees measures Extended country reporting and intensive exchange between VIG Holding Board - Safety of staff and customers and management of local Group companies Regular reporting of development
Slide 15: Executive summary
EXECUTIVE SUMMARY Market environment characterised by high uncertainty Q1 2020 results nearly unaffected by COVID-19 pandemic; impacts in following quarters are not assessable at the moment Strong balance sheet provides a resilient foundation Agenda 2020 with its focus on increasing efficiency
Slide 16: Solvency Overview YE 2019
HIGHLIGHTS FINANCIALS & INVESTMENTS EXECUTIVE SUMMARY SOLVENCY OVERVIEW YE 2019 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 16 VIG VIENNA INSURANCE GROUP
Slide 17: Solvency ratio of VIG as of YE 2019 at 210%
SOLVENCY RATIO OF VIG AS OF YE 2019 AT 210% Solvency Position YE 2019 compared to YE 2018 VIG AG in EUR million 31.12.2018 31.12.2019 in EUR million Solvency capital requirement 3,241 3 652 Market risk 3,072 3,294 Counterparty default risk 326 353 Life underwriting risk 2,082 1,497 Health underwriti
Slide 18: Solvency capital requirement
SOLVENCY CAPITAL REQUIREMENT Allocation of Solvency Capital Requirement calculated with the Partial Internal Model Market risk accounts for 58% of total Life underwriting risk contributes to the Operational risk ranks third with 8% of solvency capital requirement total solvency capital require
Slide 19: Own funds (I)
OWN FUNDS (I) Composition of Own Funds as of 31.12.2019 in EUR million EUR 7 657mn 1% 2,500 19% 2% 2,000 1,724 1,488 Tier 3 1,500 Tier 2 Tier 1 - restricted 79% 1,000 Tier 1 - unrestricted 1,457 500 317 120 49 0 VIG capital structure Tier 1 - restricted Tier 2 Tier 3 19 SOLVENCY OVERVIEW YE 2019 VIG
Slide 20: Own funds (II)
OWN FUNDS (II) Own Funds 2018 compared to Own Funds 2019 in EUR million 9 000 8 500 663 758 8 000 171 147 5 7 500 7 000 7,734 7,657 6 500 6 000 Solvency II Own Funds IFRS surplus Differences in Deferred taxes Planned dividends Other Solvency II Own Funds 2018 valuation 2019 20 SOLVENCY OVERVIEW YE 2
Slide 21: Sensitivity analysis
SENSITIVITY ANALYSIS Market Sensitivities as of 31.12.2019 Interest rate curve +100bps 25.8% 236% Interest rate curve -100bps -40.9% 169% Equity -20pps -2.9% 207% Spread +100bps -16.9% 193% Rating downshift -1 notch -8.0% 202% Without volatility adjustment -4.6% 205% Absolute change in Impact of abs
Slide 22: Appendix 1: Segments
HIGHLIGHTS FINANCIALS & INVESTMENTS EXECUTIVE SUMMARY SOLVENCY OVERVIEW YE 2019 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 22 VIG VIENNA INSURANCE GROUP
Slide 23: Austria
AUSTRIA Result impacted by decreased financial result GWP development (€mn) €mn 3M 2020 3M 2019 +/- % +6.7% Gross premiums written 1,364.8 1,278.8 6.7 Premium growth of €86.0mn driven 1,365 Net earned premiums 896.7 835.7 7.3 mainly by life single premium business 1,279 Financial result* 133.4 140
Slide 24: Czech Republic
CZECH REPUBLIC Strong non-life development due to improved CoR GWP development (€mn) €mn 3M 2020 3M 2019 +/- % +2.4% Gross premiums written 465.8 454.9 2.4 Premiums up by €10.9mn driven by 466 Net earned premiums 342.8 339.0 1.1 other property and MTPL 455 Financial result* 21.3 18.3 16.3 79 Other
Slide 25: Slovakia
SLOVAKIA Positive non-life and life performance GWP development (€mn) €mn 3M 2020 3M 2019 +/- % +4.8% Gross premiums written 219.7 209.6 4.8 Premium growth of €10.1mn based on 220 Net earned premiums 167.3 167.2 0.0 increased other property, life and health 210 Financial result 9.5 10.5 -9.7 busin
Slide 26: Poland
POLAND Favourable premium and profit development GWP development (€mn) €mn 3M 2020 3M 2019 +/- % +25.2% Gross premiums written 313.5 250.4 25.2 Premium growth of €63.1mn driven 313 Net earned premiums 235.7 188.6 25.0 mainly by other property (+€28.5mn) Financial result 9.0 10.2 -11.0 and motor (+
Slide 27: Romania
ROMANIA Ongoing focus on profitable business GWP development (€mn) €mn 3M 2020 3M 2019 +/- % +8.6% Gross premiums written 125.9 115.9 8.6 Premiums up by €10.0mn driven by 126 Net earned premiums 90.5 95.1 -4.8 other property business and casco 116 Financial result 4.2 4.5 -7.1 23 Other income 3.8
Slide 28: Baltic States
BALTIC STATES Change in accounting methodology at Seesam Insurance GWP development (€mn) €mn 3M 2020 3M 2019 +/- % -1.7% Gross premiums written 131.0 133.3 -1.7 Small premium decrease driven by 133 Net earned premiums 96.7 93.6 3.3 motor (-€7.8mn); positive premium 131 development in health (+€2.6
Slide 29: Hungary
HUNGARY Solid development despite negative FX impact GWP development (€mn) €mn 3M 2020 3M 2019 +/- % +21.6% Gross premiums written 98.7 81.2 21.6 Premium growth of €17.5mn driven by 99 Net earned premiums 62.7 45.5 37.7 life single premium business Financial result 1.7 1.3 34.3 (+€16.3mn) and life
Slide 30: Bulgaria
BULGARIA Improved CoR supports profit growth GWP development (€mn) €mn 3M 2020 3M 2019 +/- % -6.5% Gross premiums written 62.2 66.5 -6.5 Premium decrease of €4.3mn due to 67 Net earned premiums 40.0 37.6 6.5 decreased health (-€6.6mn) and life 62 Financial result 3.2 2.9 8.1 business (-€2.2mn) tha
Slide 31: Turkey/Georgia
TURKEY/GEORGIA Strong premium growth in Turkey and Georgia GWP development (€mn) €mn 3M 2020 3M 2019 +/- % +26.3% Gross premiums written 71.7 56.8 26.3 Premiums up by €14.9mn with other 72 Net earned premiums 32.0 25.7 24.4 property growing by +€6.2mn and Financial result 2.3 2.8 -18.6 health by +
Slide 32: Remaining CEE
REMAINING CEE Overall positive performance despite CoR being above 100% GWP development (€mn) €mn 3M 2020 3M 2019 +/- % +17.9% Gross premiums written 126.8 107.6 17.9 Remaining CEE: Albania (incl. Kosovo), 127 Net earned premiums 92.2 70.6 30.6 Bosnia-Herzegovina, Croatia, Moldova, Financial resul
Slide 33: Other Markets
OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 3M 2020 3M 2019 +/- % -2.2% Gross premiums written 77.4 79.1 -2.2 Premiums slightly down by €1.7mn due to 79 Net earned premiums 63.0 65.0 -3.1 seasonal effects in the life single premium 77 business in Liechtenstein Financial resul
Slide 34: Central Functions
CENTRAL FUNCTIONS Deterioration due to lower financial result following the consolidation change of the Austrian housing societies GWP development (€mn) €mn 3M 2020 3M 2019 +/- % +6.8% Gross premiums written 483.9 453.1 6.8 Central Functions include VIG Holding, 484 Net earned premiums 361.1 338.8
Slide 35: Appendix 2: Financials
HIGHLIGHTS FINANCIALS & INVESTMENTS EXECUTIVE SUMMARY SOLVENCY OVERVIEW YE 2019 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 35 VIG VIENNA INSURANCE GROUP
Slide 36: 3M 2020 Key Financials
3M 2020 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and ROE before taxes and non-controlling interest (€mn) non-controlling interest (%) EPS net of hybrid interest* (€) 83 86 11.1 2.61 2.68 76 9.3 8.5 2.27 3M 18 3M 19 3M 20 3M 18 3M 19 3M 20 3M 18 3M 19 3M 20 * Based on Sha
Slide 37: 2020 Balance Sheet
2020 BALANCE SHEET IFRS (€mn) €mn 31.03.2020 31.12.2019 +/- % Intangible assets (incl. Right-of-Use Assets) 2,068 2,137 -3.2 Investments 33,264 34,456 -3.5 Unit- and index-linked investments 7,479 8,620 -13.2 Reinsurers’ share in underwriting provisions 1,348 1,283 5.0 Receivables 1,803 1,717 5.0 Ta
Slide 38: Equity Development
EQUITY DEVELOPMENT Decline due to negative market developments for investments and currencies Change in consolidated Shareholders’ Equity (€mn) -9% 89 -143 5,191 -432 4,701 -2 -2 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M19 the period changes gains and losses paymen
Slide 39: 3M 2020 Premiums by Business Lines and Country (I)
3M 2020 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 3M 2020 3M 2019 +/- % 3M 2020 3M 2019 +/- % 3M 2020 3M 2019 +/- % Austria 112.1 110.7 1.3 100.8 99.5 1.3 583.3 555.3 5.1 Czech Republic 79.2 77.3 2.4 60.9 60.3 1.0 144.3 136.0 6.1 Slovakia 41.6 43.2 -3.6 27.3 27.
Slide 40: 3M 2020 Premiums by Business Lines and Country (II)
3M 2020 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 3M 2020 3M 2019 +/- % 3M 2020 3M 2019 +/- % 3M 2020 3M 2019 +/- % Austria 342.0 341.8 0.1 111.5 61.6 81.0 115.1 110.0 4.6 Czech Republic 167.4 163.4 2.4 9.5 14.2 -33.6 4.6 3.8 20.4 Slovakia 44.3 43.3 2.4 5
Slide 41: 3M 2020 Country Overview GWP / PBT / Combined Ratio
3M 2020 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before Taxes Combined Ratio net (in %) 3M 2020 3M 2019 +/- % 3M 2020 3M 2019 +/- % 3M 2020 3M 2019 +/- % Austria 1,364.8 1,278.8 6.7 41.4 45.4 -8.9 95.5% 96.6% -1.1 Czech Republic 465.8 454.9 2.4 45.5 41.5 9.6 94.6% 95.6
Slide 42: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (31 Mar. 2020) Current listings Ticker Rating Major Indices Vienna Vienna Stock Exchange: VIG Standard & Poor´s: ATX BUY Prague Bloomberg: VIG AV / VIG CP A+, stable outlook ATX Pr
Slide 43: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region* North America 34% Continental Europe 27% ~70% ~30% Austria 25% UK & Ireland 12% Other 2% Wiener Städtische Versicherungsverein Free Float (Mutual) * Split of identified shares, April 2019 (Source: CMi2i) 43 APPENDIX 2: FINANCIALS VIG V
Slide 44: Contact Details / Financial Calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Financial calendar 20201 Nina Higatzberger-Schwarz Sylvia Machherndl Date Event Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 17 Mar. 2020 Preliminary results for the financial year 2019 nina.
Slide 45: 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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