Vienna Insurance Group Ag · VIE:VIG

Vienna Insurance — 9M 2019 Earnings Presentation

40 slides from Vienna Insurance's earnings presentation, Nov 27, 2019

  1. Slide 1: 9M 2019 Results Presentation

    9M 2019 RESULTS PRESENTATION Vienna, 27 November 2019

  2. Slide 2: Presenting team and topics

    9M 2019 RESULTS CONFERENCE CALL Presenting team and topics Participants Topics  Liane Hirner, CFO  Highlights p. 3  Peter Höfinger, Member of the Board  Financials & Investments p. 5  Appendix 1: Segments p. 14  Appendix 2: Financials p. 27 2 VIG VIENNA INSURANCE GROUP

  3. Slide 3: Highlights

    HIGHLIGHTS FINANCIALS & INVESTMENTS 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

  4. Slide 4: Highlights 9M 2019

    HIGHLIGHTS 9M 2019 On track to meet 2019 targets despite deconsolidation of non-profit housing societies Gross written premiums Profit before taxes Combined Ratio € 7,851.2mn € 376.2mn 96.4% GWP up by 6.7% (+€494mn) PBT increased by 6.8% (+€24mn) CoR stable (9M 2018: 96.3%)  Strongest contribution

  5. Slide 5: Financials & Investments

    HIGHLIGHTS FINANCIALS & INVESTMENTS 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 (IFRS). 5 VIG VIENNA INSURANCE GROUP

  6. Slide 6: Result up by 6.8% despite lower financial result

    RESULT UP BY 6.8% DESPITE LOWER FINANCIAL RESULT 9M 2019 Income statement €mn 9M 2019 9M 2018 +/- % Gross premiums written 7 851.2 7 357.5 6.7 Net earned premiums 6 925.9 6 518.1 6.3 Financial result1 627.0 795.9 -21.2  Financial result (incl. at equity consolidated companies) down Other income 134

  7. Slide 7: Strong top-line growth: gross written premiums of €7.9bn up by 6.7%

    STRONG TOP-LINE GROWTH GROSS WRITTEN PREMIUMS OF €7.9BN UP BY 6.7% Overview by segments Gross written premiums (€mn; y-o-y chg.)  CEE growth of 9.3%; excl. consolidation effects 5.1%  Premium growth drivers are Austria (+€110mn), Poland (+€165mn) and the Baltics (+€91mn) - incl. first-time consoli

  8. Slide 8: Consistent growth in all lines of business

    CONSISTENT GROWTH IN ALL LINES OF BUSINESS; DOUBLE-DIGIT GROWTH IN OTHER PROPERTY & HEALTH Gross written premiums by lines of business (€mn; y-o-y chg.); incl. Central Functions MTPL Casco Other property Total premiums +6.7% 9M 2018 1,099 880 3,290 7,851 +3.9% +9.9% +10.1% 7,357 1,142 9M 2019 1,142

  9. Slide 9: Group profit before taxes of €376.2mn up by 6.8%

    GROUP PROFIT BEFORE TAXES OF €376.2MN UP BY 6.8% Solid profit growth in all market segments with Czech Republic remaining stable Result before taxes (€mn; y-o-y change)  AT: €12mn profit growth; positive developments in P&C, life and health  CZ: €1.6mn decrease driven by lower financial result and

  10. Slide 10: Combined ratio (P&C) at 96.4% after 96.3% in 9M 2018

    COMBINED RATIO (P&C) AT 96.4% AFTER 96.3% IN 9M 2018 Several NatCat events in 9M 2019 P&C Combined Ratio development Overview by segments (9M y-o-y development net, %)  AT: Improvement supported by Donau Versicherung -3.1%p -0.8%p +1.1%p +0.5%p +1.8%p -2.4%p  CZ: CoR up due to higher claims ratio

  11. Slide 11: Investment split and bond portfolio overview

    INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Change in investment split due to deconsolidation of non-profit housing societies 9M 2019: Total €35.8bn Bond portfolio by rating1 in % 4.6% 1.6% 7.0% AAA AA A BBB Other 9M 2019 9.2 31.2 36.7 18.5 4.4 6.7% 12M 2018 9.9 32.1 35.3 17.1 5.6 6.3% 73.8% Bond p

  12. Slide 12: Financial result decreased by 19.8%

    FINANCIAL RESULT DECREASED BY 19.8% Current income slightly down by 2.8% due to deconsolidation of non-profit societies Total TEUR 9M 2019 9M 2018 +/- % Current income 967 004 994 507 -2.8  Financial result down by €149.6mn excl. at equity Income from appreciations 24 899 7 137 >100 consolidated co

  13. Slide 13: VIG well on track to reach its targets

    VIG WELL ON TRACK TO REACH ITS TARGETS Executive summary Highlights 2019 VIG climate change strategy 2019  Binding regulations for all Group companies regarding investing and underwriting in the coal power energy sector  Direct investments will be reduced to less than 50% by 2025 and to zero by 20

  14. Slide 14: Appendix 1: Segments

    HIGHLIGHTS FINANCIALS & INVESTMENTS 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 (IFRS). 14 VIG VIENNA INSURANCE GROUP

  15. Slide 15: Austria

    AUSTRIA CoR improved to solid 94.1% GWP development (€mn) €mn 9M 2019 9M 2018 +/- % +3.7% Gross premiums written 3 106.2 2 996.4 3.7  Financial result decreased by €96.2mn 3,106 Net earned premiums 2 441.6 2 364.5 3.3 impacted mainly by non-recurring one-offs 2,996 Financial result1 480.7 576.9 -16

  16. Slide 16: Czech Republic

    CZECH REPUBLIC Despite a substantially lower financial result, profit development stable GWP development (€mn) €mn 9M 2019 9M 2018 +/- % +2.7% Gross premiums written 1 308.5 1 274.4 2.7  Premiums up by €34.1mn driven by life 1,309 Net earned premiums 992.6 955.7 3.9 regular business and motor lines

  17. Slide 17: Slovakia

    SLOVAKIA Life growth fully compensates for declining P&C development GWP development (€mn) €mn 9M 2019 9M 2018 +/- % +1.3% Gross premiums written 599.3 591.7 1.3  Premium increase of €7.6mn due to 599 Net earned premiums 498.5 490.0 1.7 growth in life 592 Financial result 37.2 38.3 -2.8 Other incom

  18. Slide 18: Poland

    POLAND Ongoing strong performance GWP development (€mn) €mn 9M 2019 9M 2018 +/- % +24.7% Gross premiums written 834.1 668.7 24.7  Premium growth of €165.4mn driven by 834 Net earned premiums 652.3 508.6 28.2 other property (+€96.4mn) and motor Financial result 27.6 19.2 44.2 (+€70.8mn); start of co

  19. Slide 19: Romania

    ROMANIA Challenging environment GWP development (€mn) €mn 9M 2019 9M 2018 +/- % -12.9% Gross premiums written 342.1 392.9 -12.9  Premiums down by €50.8mn driven by Net earned premiums 260.2 294.2 -11.5 further intentional decrease of the MTPL 393 Financial result business (-€65.8mn) 12.5 9.7 29.0 3

  20. Slide 20: Baltic States

    BALTIC STATES First-time consolidation of Seesam Insurance GWP development (€mn) €mn 9M 2019 9M 2018 +/- % +32.7% Gross premiums written 370.6 279.2 32.7  Double-digit premium growth in all lines of 371 Net earned premiums 286.4 202.1 41.7 business Financial result 7.6 4.1 87.5 Other income 2.6 0.9

  21. Slide 21: Hungary

    HUNGARY Continued growth of top- and bottom-line GWP development (€mn) €mn 9M 2019 9M 2018 +/- % +7.0% Gross premiums written 204.5 191.1 7.0  Premium growth mainly driven by MTPL 205 Net earned premiums 147.2 143.5 2.6 (+€13.4mn) and other property (+€7.5mn) 191 Financial result 4.1 4.8 -14.9 35 O

  22. Slide 22: Bulgaria

    BULGARIA Double-digit premium and profit growth GWP development (€mn) €mn 9M 2019 9M 2018 +/- % +33.2% Gross premiums written 172.6 129.6 33.2  Premium growth in all lines of business; 173 Net earned premiums 104.6 93.8 11.5 strongest development in health with Financial result 9.2 7.6 21.9 +€18.0m

  23. Slide 23: Turkey/Georgia

    TURKEY/GEORGIA Profit growth driven by improved financial result GWP development (€mn) €mn 9M 2019 9M 2018 +/- % +8.4% Gross premiums written 161.7 149.1 8.4  Premium growth driven by motor 162 Net earned premiums 82.5 70.2 17.6 (+€12.3mn) 149 Financial result 9.0 5.1 74.9 Other income 4.8 15.0 -68

  24. Slide 24: Remaining CEE

    REMAINING CEE Organic premium growth of 16.7% GWP development (€mn) €mn 9M 2019 9M 2018 +/- % +18.1% Gross premiums written 336.1 284.6 18.1  Remaining CEE includes Albania (incl. 336 Net earned premiums 244.8 213.3 14.8 Kosovo), Bosnia-Herzegovina, Croatia, Financial result 26.3 26.1 0.9 Moldova,

  25. Slide 25: Other Markets

    OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 9M 2019 9M 2018 +/- % -1.9% Gross premiums written 228.2 232.7 -1.9  Premium decrease due to weaker life 233 Net earned premiums 193.8 198.3 -2.3 single premium business mainly in 228 Liechtenstein Financial result 14.3 14.6 -1.5 Oth

  26. Slide 26: Central Functions

    CENTRAL FUNCTIONS Deterioration due to lower financial result GWP development (€mn) €mn 9M 2019 9M 2018 +/- % +6.8% Gross premiums written 1 247.2 1 168.1 6.8  Central Functions include VIG Holding, 1,247 Net earned premiums 1 018.6 979.7 4.0 VIG Re, VIG Fund, the non-profit societies 1,168 Financi

  27. Slide 27: Appendix 2: Financials

    HIGHLIGHTS FINANCIALS & INVESTMENTS 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 (IFRS). 27 VIG VIENNA INSURANCE GROUP

  28. Slide 28: 9M 2019 Key Financials

    9M 2019 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and non-controlling interest (€mn) ROE after taxes and non-controlling interests1 (%) 215 226 7,0 7,2 207 6,6 9M 17 9M 18 9M 19 9M 17 9M 18 9M 19 EPS net of hybrid interest1 (€) 2,36 2,15 2,07 Series 9M 17 9M 18 9M 19 1: A

  29. Slide 29: Consolidation change of non-profit housing societies

    CONSOLIDATION CHANGE OF NON-PROFIT HOUSING SOCIETIES No impact on profit after taxes and non-controlling interests, earnings per share and dividend policy  Amendment of the Austrian Non-Profit Housing Act further significantly restricted the exercise of ownership and control Net profit Financial th

  30. Slide 30: 9M 2019 Balance Sheet

    9M 2019 BALANCE SHEET IFRS (€mn) €mn 30.09.2019 31.12.2018 +/- % Intangible assets 2 160 1 961 10.2 Investments 34 393 36 288 -5.2 Unit- and index-linked investments 8 510 8 049 5.7 Reinsurers’ share in underwriting provisions 1 306 1 136 15.0 Receivables 1 694 1 563 8.4 Tax receivables and advance

  31. Slide 31: Equity development

    EQUITY DEVELOPMENT Decrease explained by deconsolidation of non-profit housing societies Change in Group Shareholders’ Equity (€mn) -11% 487 -143 295 -18 5,836 5,203 -1,254 Equity as Profit for Currency AFS unrealised Dividend Other1) Equity as of 12M 2018 the period changes gains and losses payment

  32. Slide 32: 9M 2019 Premiums by business lines and country (I)

    9M 2019 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 9M 2019 9M 2018 +/- % 9M 2019 9M 2018 +/- % 9M 2019 9M 2018 +/- % Austria 259.0 258.8 0.1 235.1 227.1 3.5 1 150.1 1 080.0 6.5 Czech Republic 229.8 219.4 4.7 185.0 182.3 1.5 369.9 365.2 1.3 Slovakia 114.0 114.2 -0

  33. Slide 33: 9M 2019 Premiums by business lines and country (II)

    9M 2019 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 9M 2019 9M 2018 +/- % 9M 2019 9M 2018 +/- % 9M 2019 9M 2018 +/- % Austria 930.5 937.1 -0.7 209.4 179.8 16.5 322.1 313.5 2.7 Czech Republic 476.8 457.7 4.2 34.7 39.4 -11.8 12.3 10.4 18.1 Slovakia 137.9 128.

  34. Slide 34: 9M 2019 Country overview GWP / PBT / combined ratio

    9M 2019 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net (in %) 9M 2019 9M 2018 +/- % 9M 2019 9M 2018 +/- % 9M 2019 9M 2018 +/- %p Austria 3 106.2 2 996.4 3.7 141.8 130.2 8.9 94.1 94.9 -0.8 Czech Republic 1 308.5 1 274.4 2.7 122.3 123.8 -1.3 94.

  35. Slide 35: 9M 2019 Exchange rates

    9M 2019 EXCHANGE RATES Balance Sheet: period-end exchange rate / P&L: average exchange rate 2019 2018 Country Currency Balance Sheet P&L Balance Sheet P&L EUR EUR EUR EUR Albania EUR/ALL 122.1100 123.0938 123.4200 128.5953 Belarus EUR/BYN 2.2651 2.3582 2.4734 2.3977 Bosnia & Herzegovina EUR/BAM 1.95

  36. Slide 36: Q3 2019 Income Statement

    Q3 2019 INCOME STATEMENT IFRS (€mn) €mn Q3 2019 Q3 2018 +/- % Gross premiums written 2 404.5 2 207.2 8.9  Premiums up by 8.9% due to growth in all lines of business, Net earned premiums 2 304.2 2 163.2 6.5 especially in other property Financial result1 203.8 284.6 -28.4 Other income 58.0 17.0 >100

  37. Slide 37: VIG Share (I)

    VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (30 Sep. 2019) Current listings Ticker Rating Major Indices SELL Vienna  Vienna Stock Exchange: VIG Standard & Poor´s: ATX 1 BUY Prague  Bloomberg: VIG AV / VIG CP A+, stable outlook

  38. Slide 38: VIG Share (II)

    VIG SHARE (II) Shareholder structure Free float split by region1 North America 34% Continental Europe 27% ~70% ~30% Austria 25% UK & Ireland 12% Other 2% Wiener Städtische Versicherungsverein Free Float (Mutual) 1 Split of identified shares, April 2019 (Source: CMi2i) 38 APPENDIX 2: FINANCIALS VIG V

  39. Slide 39: Contact details / Financial calendar

    CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2020* Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 Date Event nina.higatzberger@vig.com sylvia.machherndl@vig.com 19 Mar. 2020 P

  40. Slide 40: 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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