Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — H1 2006 Earnings Presentation
26 slides from Vienna Insurance's earnings presentation, Aug 22, 2006
Slide 1: Vienna Insurance Group Half Year 2006 results
Vienna Insurance Group Half Year 2006 results
Slide 2: Recent developments
Recent developments VIG expanding rapidly its unique CEE business position 2 Share of CEE subsidiaries in total Group premiums has already reached an outstanding 35% after 31% at YE 05. CEE P&C premiums account for 47% of Group P&C premiums (45% at YE05) Russian joint venture with MSK insurance
Slide 3: Restructuring of TBIH – VIG Takes Majority
Restructuring of TBIH – VIG Takes Majority Focus on insurance 3 New Ownership Structure Illustration of the Transaction Kardan VIG holds a 40% minority stake in Kardan Financial Services (KFS) Initial Position Financial Services KFS was the major shareholder of TBIH, a holding company which was
Slide 4: Use of SPO Funds
Use of SPO Funds More than 50% of raised funds already used 4 SPO 2005 In Dec. 2005 VIG raised € 900 mn (net) for the following purposes: ~ 50% for CEE acquisitions ~ 30% to support the strong organic growth of the CEE subsidiaries cushion (Solvency II) Used by May 2006 € 290 mn for acquisit
Slide 5: HY 2006 Highlights (I)
HY 2006 Highlights (I) Continued earnings growth 5 GWP Profit before Tax 22.1% 5,008 14.9% 240 15.5% 54.2% 4,101 3,608 14,4% 3,124 3,029 156 2,636 143 116.3% 125 51 23 2002 2003 2004 2005 6M 05 6M 06 2002 2003 2004 2005 6M 05 6M 06 IFRS Austrian HGB IFRS Austrian HGB RoE before Tax Net Profit after
Slide 6: HY 2006 Highlights (II)
HY 2006 Highlights (II) 6 Net Combined Ratio EPS* 2.27 2.17 108.28 2.07 100.65 99.8 97.9 97.04 94.3 97.0 1.41 0.2 0.28 2001 2002 2003 2004 2005 6M 05 6M 06 2002 2003 2004 2005 6M 05 6M 06 Austrian HGB IFRS Austrian HGB IFRS * 6M figures annualised
Slide 7: HY 2006 results P&L and Balance Sheet
Vienna Insurance Group – HY 2006 results P&L and Balance Sheet
Slide 8: HY 2006 Income Statement
HY 2006 Income Statement IFRS (€m) 8 6M 2006 6M 2005 +/- % 1. Gross written premiums 3,029.3 2,635.5 14.9 2. Net earned premiums 2,411.3 2,079.9 15.9 3. Net investment income1 361.1 305.5 18.2 4. Other income 29.0 8.4 >100.0 Total income 2,801.4 2,393.8 17.0 6. Expenses for claims incurred -2,045.4
Slide 9: HY 2006 Balance Sheet
HY 2006 Balance Sheet IFRS (€m) 9 30-Jun-06 31-Dec-05 +/- % Intangible assets 444 317 40.0 Total investments 16,180 15,163 6.7 Unit- and index-linked investments 1,936 1,762 9.9 Reinsurers’ share in technical provisions 987 840 17.4 Receivables 1,008 857 17.7 Deferred tax assets 19 12 62.8 Other ass
Slide 10: P&L Major Items – Gross Written Premiums
HY 2006 P&L Major Items – Gross Written Premiums Austria sound growth; Czech Republic and Slovakia improved vs. Q1 (€m) 10 118.0 Group GWP increased by 14.9% to € 3,029mn. 142.2 1,060.9 Other Austria: total GWP up 7.2% to reach €1.85bn. Life up 766.5 6.3% at €817.5mn and non-life up 8.8% at 882.
Slide 11: VIG's GWP Split by Region
VIG’s GWP Split by Region Shift from Austria to CEE 11 GWP by Geography Other Other Other CEE 5.4% Other CEE 3.9% 5.6% 10.9% Slovakia Austria Slovakia Austria 6.9% 65.5% 6.6% 61.1% Czech Czech Republic Republic 16.6% 17.6% 6M 2005 Total: € 2.64bn 6M 2006 Total: € 3.03bn
Slide 12: P&L Major Items – Expenses for Claims Incurred
HY 2006 P&L Major Items – Expenses for Claims Incurred Loss ratio affected by snow pressure and regional floodings (€m) 12 Overall loss ratio in P&C increased by 2.5% as a result of seasonal effects. Group Combined Ratio (97.9%) still well below 100% in line with Group targets Austria saw extrao
Slide 13: P&L Major Items – Operating Expenses
HY 2006 P&L Major Items – Operating Expenses Costs impacted by new acquisitions (€m) 13 Austria stable despite Group holding function of parent and hiring of additional field staff for sales expansion Benign development in the Czech Republic following cost cutting measures Slovakia with tempor
Slide 14: P&L Major Items – Net Investment Income
HY 2006 P&L Major Items – Net Investment Income Continued trading gains (€m) 14 9.3 8.9 38.7 Increase in Net Investment Income by 18.2% 29.8 to €361.1mn as a result of trading gains in Other Austria which also includes EUR 9.8mn from CEE first time inclusion of Housing Societies. Austria HY 05 inc
Slide 15: Financial Targets for WSV Group
Financial Targets for WSV Group Targets for 2006 and 2007 confirmed 15 2006T 2007T Profit before tax ~ €290million ~ €350 million Net combined ratio <100% <100% RoE before tax1 ~16% 17%-18% Payout ratio (as % of net income) >30% >30% 1 incl. Dec. 2005 capital increase
Slide 16: HY 2006 results Appendix
Vienna Insurance Group – HY 2006 results Appendix
Slide 17: 6M 2006 P&L – Business Segments: Property & Casualty
6M 2006 P&L – Business Segments Property & Casualty, IFRS (€m) 17 6M 2006 6M 2005 +/- % 1. Gross written premiums 1,721.5 1,419.1 21.3 2. Net earned premiums 1,118.3 883.1 26.6 3. Net investment income 56.8 68.5 -17.0 4. Other income 14.4 6.2 >100.0 Total income 1,189.5 957.7 24.2 6. Expenses for cl
Slide 18: 6M 2006 P&L – Business Segments: Life
6M 2006 P&L – Business Segments Life, IFRS (€m) 18 6M 2006 6M 2005 +/- % 1. Gross written premiums 1,157.1 1,069.9 8.2 2. Net earned premiums 1,144.6 1,053.0 8.7 3. Net investment income 292.2 227.9 28.2 4. Other income 14.6 2.2 >100.0 Total income 1,451.4 1,283.2 13.1 6. Expenses for claims incurre
Slide 19: 6M 2006 P&L – Business Segments: Health
6M 2006 P&L – Business Segments Health, IFRS (€m) 19 6M 2006 6M 2005 +/- % 1. Gross written premiums 150.8 146.5 2.9 2. Net earned premiums 148.4 143.8 3.2 3. Net investment income 12.1 9.1 33.1 4. Other income 0.0 0.0 0.0 Total income 160.5 152.9 5.0 6. Expenses for claims incurred -131.6 -124.8 5.
Slide 20: P&L - Split by Regions (I)
HY 2006 P&L - Split by Regions (I) Regional segments, IFRS (€m) 20 Austria Czech Republic Slovakia 6M 2006 6M 2005 6M 2006 6M 2005 6M 2006 6M 2005 1. Gross written premiums 1,850.4 1,726.9 532.7 436.5 199.6 183.1 2. Net earned premiums 1,524.1 1,417.2 392.4 304.0 139.6 134.9 3. Net investment income
Slide 21: P&L - Split by Regions (II)
HY 2006 P&L - Split by Regions (II) Regional segments, IFRS (€m) 21 Other CEE Other TOTAL 6M 2006 6M 2005 6M 2006 6M 2005 6M 2006 6M 2005 1. Gross written premiums 328.7 146.9 118.0 142.2 3,029.3 2,635.5 2. Net earned premiums 251.3 93.9 103.9 130.0 2,411.3 2,079.9 3. Net investment income 13.4 6.2
Slide 22: 6M 2006 Exchange Rates
6M 2006 Exchange Rates 22 HY 2006 HY 2005 Country Curr. Balance Sheet P&L Balance Sheet P&L EUR EUR EUR EUR Bulgaria BGN 0,511300 0,511300 0,511247 0,511247 Croatia HRK 0,138036 0,136773 0,136986 0,136986 Liechtenstein CHF 0,638081 0,640615 0,639591 0,639591 Poland PLN 0,246633 0,257064 0,243043 0,2
Slide 23: Shareholder Structure (I)
Shareholder Structure (I) Total number of shares 105,000,000 23 Shareholder Structure Split Free Float 29.2% Retail Investors 1.6% 28.7 % Employees Free Float 69.2% Institutional 71.3 % Investors Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung
Slide 24: Shareholder Structure (II)
Shareholder Structure (II) 24 Geographical Split 0.2% Others 3.8% UK & Ireland 5.3% North America 82.9 % Austria 7.8% Continental Europe
Slide 25: Contact Details
Contact Details Investor Relations 25 Wiener Städtische Allgemeine Versicherung AG Schottenring 30, 1010 Vienna, Austria www.wienerstaedtische.at Vienna Stock Exchange: WST Reuters: WISV.VI Bloomberg: WST AV Thomas Schmee Tel. +43 (0)50 350 – 21900 t.schmee@staedtische.co.at Nina Higatzberger Te
Slide 26: Disclaimer
Disclaimer 26 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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