Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Q1 2021 Earnings Presentation
38 slides from Vienna Insurance's earnings presentation, Jun 15, 2021
Slide 1: Investor Presentation: Results for the first quarter 2021
VIENNA INSURANCE GROUP Investor Presentation Results for the first quarter 2021
Slide 2: VIG – The Leading Insurance Group in Central and Eastern Europe
VIG – THE LEADING INSURANCE GROUP IN CENTRAL AND EASTERN EUROPE Represented in More than 50 group companies 30 25,000 markets employees Solvency Ratio 2020 More than S&P Rating 22 million A+ 238% including transitionals (AT) and customers with stable outlook based on Partial Internal Model Since Mar
Slide 3: Strong Business Profile and Successful Strategy
STRONG BUSINESS PROFILE AND SUCCESSFUL STRATEGY Five-pillar sustainability Well diversified VIG 25: strategy: Proven Strong balance M&A - based on portfolio over new strategy Core business business sheet and strong footprint, countries and programme Customers model prudent VIG follows lines of 2021-
Slide 4: CSR: Key Initiatives and Accomplishments 2020
CSR: KEY INITIATIVES AND ACCOMPLISHMENTS 2020 ▪ Signatory of UN Global Compact ▪ VIG is listed in international sustainability index FTSE4Good and the Austrian VÖNIX ▪ Annual CSR meetings to promote best practise sharing and the exchange of individual Group initiatives Core business Customers Employ
Slide 5: VIG 25: Building on the Foundations of Previous Years
VIG 25: BUILDING ON THE FOUNDATIONS OF PREVIOUS YEARS 2011 2016 2021 STRATEGY 2011 Specifying the strategy for sustainable growth in primary AGENDA 2020 insurance Management programme Initiatives implemented as a VIG 25 continuation of Strategy 2011 Strategy programme for VIG Group jointly developed
Slide 6: Strategic Framework Considers These Trends and Developments
THE GROUP'S STRATEGIC FRAMEWORK MAINLY CONSIDERS THESE TRENDS AND DEVELOPMENTS 7 1 Latent Evolution demand continues instead of to be a defining revolution feature Creation of (digital) Low interest 6 KEY 2 platforms / rate environ- TRENDS AND ment continues ecosystems DEVELOPMENTS Partial erosion o
Slide 7: Group Will Focus on Market Leadership and Value Creation
THE GROUP WILL FOCUS ON MARKET LEADERSHIP AND VALUE CREATION New ESG-related targets in respect of the society, customers and employees MAIN TARGETS OF THE GROUP MARKET-RELATED & FINANCIAL TARGETS ESG-RELATED TARGETS2 Society Market-related targets Expansion of the leading We contribute to a better
Slide 8: VIG Defines ESG Goals for Society, Customers and Employees
VIG DEFINES ESG GOALS RELATING TO SOCIETY, CUSTOMERS AND EMPLOYEES FOR THE FIRST TIME ▪ Equal opportunities in connection with education, social equality1 and arts and culture Society ▪ Contribution to environmental protection within our organisation as well as in connection with our We contribute t
Slide 9: VIG Wants to Be at Least Top 3 in Each CEE Market
VIG WANTS TO BE AT LEAST TOP 3 IN EACH OF THE 20 CEE MARKETS Sharpened country portfolios: 20 CEE markets (including Austria) and 10 special markets PORTFOLIO GROUPS1 COUNTRIES 1 … with an above-average VIG market share AT, CZ, SK Top 5 CEE- markets … 2 … with a below-average VIG market share PL, HU
Slide 10: Successful Track-Record of M&A Activities
SUCCESSFUL TRACK-RECORD OF M&A ACTIVITIES From a local player to the market in leader in CEE PL HU RO TR CEE entry Expansion Expansion Strengthening positions AEGON-Deal 1990-1995 1996-1999 1999-2008 and group profile Signed in November 2020 2009 onwards ▪ Early mover in CEE ▪ Entries into the Hunga
Slide 11: Aegon CEE Transaction
AEGON CEE TRANSACTION Delivering on ▪ Announced transaction is in line with VIG’s strategy of building further scale in CEE 1 strategy ▪ Confirms VIG’s #1 position in CEE ▪ Acquisition of Aegon’s non-life and life insurance companies as well as pension funds, and asset management in Hungary, Poland,
Slide 12: Excellent Market Positions in Central and Eastern Europe
EXCELLENT MARKET POSITIONS IN CENTRAL- AND EASTERN EUROPE VIG top player in CEE Close to our overall more than 22mn customers Country Market position Market share Austria 1 1 1 23% Czech Rep. 1 2 1 31% 1 Slovakia 1 2 1 29% Poland 4 4 5 8% 10 Romania 1 2 2 21% 4 Baltics 1 1 2 25% 1 3 1 Hungary* 6 6 4
Slide 13: Results 3M 2021 & Outlook
STRATEGY RESULTS 3M 2021 & OUTLOOK APPENDIX 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). Rounding differences may occur when rounded amounts or percentages are a
Slide 14: Highlights 3M 2021
HIGHLIGHTS 3M 2021 Strong profit growth in the first quarter Gross written premium Profit before taxes Combined Ratio € 3,106.8mn € 128.0mn 95.2% GWP down by 0.4% (-€11.4mn) PBT up by 5.0% (+€6.1mn) Rather stable development (+0.1ppt) ▪ Strongest GWP growth by segment in ▪ PBT development mainly dri
Slide 15: Main Market Developments
Baltic MAIN MARKET DEVELOPMENTS states No. of companies: 3 Overview 3M 2021 Employees: 1,905 Market share: ~25% GWP: €130.6mn (-0.3%) Czech Republic PBT: €4.1mn (+31.8%) CoR: 97.0% (+4.9%p) No. of companies: 2* EE Employees: 4,925 Market share: ~31% Poland LV GWP: €479.6mn (+3.0%) PBT: €47.4mn (+4.3
Slide 16: Strong Profit Performance
STRONG PROFIT PERFORMANCE 3M 2021 Income statement €mn 3M 2021 3M 2020 +/- % Gross premiums written 3,106.8 3,118.2 -0.4 ▪ Premium decline mainly driven by single premium life insurance (-€75.0mn) and regular premium life insurance (-€5.4mn); adjusted Net earned premiums 2,416.3 2,488.3 -2.9 for FX
Slide 17: 3M 2021 Balance Sheet
3M 2021 BALANCE SHEET IFRS (€mn) €mn 31.03.2021 31.12.2020 +/- % Intangible assets (incl. Right-of-Use Assets) 1,906 1,918 -0.6 Investments 34,597 34,901 -0.9 Unit- and index-linked investments 8,364 7,968 5.0 Reinsurers’ share in underwriting provisions 1,456 1,396 4.2 Receivables 1,912 1,699 12.5
Slide 18: Equity Development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) -0.5% 100 -10 -112 5,286 5,262 -1 0 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M 2020 the period changes gains and losses payment of 3M 2021 18 RESULTS 3M 2021 & OUTLOOK VIG VIENNA INSURANCE GROUP
Slide 19: Gross Written Premiums Slightly Down by 0.4%
GROSS WRITTEN PREMIUMS SLIGHTLY DOWN BY 0.4% Overview by segments Gross written premiums (€mn; y-o-y change) ▪ Solid gross written premiums of €3.1bn despite reduced life business; further intentional decrease of life single premium business (-€75mn) ▪ Adjusted for FX effects, premium growth of 1.6%
Slide 20: Increased Other Property, Motor and Health Business
INCREASED OTHER PROPERTY, MOTOR AND HEALTH BUSINESS Gross written premiums by lines of business (€mn; y-o-y change); incl. Central Functions MTPL Casco Other property Total premiums -0.4% 3M 2020 416 350 1,588 3,118 3,107 +0.3% +3.1% +5.0% MTPL 416 417 3M 2021 417 360 1,666 Casco 350 360 Other Prope
Slide 21: Group Profit Before Taxes of €128.0mn Up by 5.0%
GROUP PROFIT BEFORE TAXES OF €128.0MN UP BY 5.0% Increased profit contribution from nearly all segments Result before taxes (€mn; y-o-y change) ▪ AT: profit increase of €13.0mn driven by higher financial result and less expenses for insurance claims and benefits ▪ CZ and SK: PBT growth supported by
Slide 22: Combined Ratio (P&C) at 95.2%
COMBINED RATIO (P&C) AT 95.2% Overall stable development P&C Combined Ratio development Overview by segments (y-o-y development net, %) ▪ Overall CoR development in Q1 fully in line with targeted +0.5%p +4.9%p -1.3%p -0.1%p 0.0%p -7.9%p CoR of ~95% for 2021 100.1 100.5 ▪ Strong CoR improvements in S
Slide 23: Investment Split and Bond Portfolio Overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW No substantial changes to investment strategy 3M 2021: Total €37.1bn Bond portfolio by rating1 in % 4.4% 1.5% 9.6% AAA AA A BBB Other 3M 2021 8.8 30.3 34.7 21.6 4,6 6.9% 12M 2020 9.0 30.0 35.4 21.6 4.0 70.5% 7.1% Bond portfolio by issuer in % 3M 2021 52.5
Slide 24: Financial Result Up by 29.3%
FINANCIAL RESULT UP BY 29.3% Less depreciation of investments and losses from disposal of investments compared to 3M 2020 in EUR ‘000 3M 2021 3M 2020 +/- % Current income 226,231 240,118 -5.8 ▪ Decrease in current income (-€13.9mn) not fully off-set by Income from appreciations 4,826 3,892 24.0 incr
Slide 25: Executive Summary & Outlook 2021
EXECUTIVE SUMMARY & OUTLOOK 2021 End of pandemic not yet foreseeable – global macroeconomic uncertainty remains high ▪ Excellent Q1 2021 result for the current environment ▪ Solid premium development despite COVID-19 ▪ Double-digit net profit growth with annualised earnings per share of €3.09 (+15.3
Slide 26: Strategy & Outlook / Appendix
STRATEGY & OUTLOOK RESULTS 3M 2021 & OUTLOOK APPENDIX 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). Rounding differences may occur when rounded amounts or percent
Slide 27: Managing Board of Vienna Insurance Group
MANAGING BOARD OF VIENNA INSURANCE GROUP As of 1 January 2021 Elisabeth Stadler, CEO Liane Hirner, CFRO Peter Höfinger Gerhard Lahner, COO Gabor Lehel, CIO Hartwig Löger Harald Riener Peter Thirring, CTO Credit: Ian Ehm 27 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 28: Country Responsibilities
THE COMBINATION OF C-LEVELS AND COUNTRY RESPONSIBILITIES ENSURES THE EFFECTIVE MANAGEMENT OF THE GROUP STADLER HIRNER THIRRING LAHNER LEHEL Chief Executive Officer Chief Finance & Risk Officer Chief Technical Officer Chief Operations Officer Chief Innovation Officer Estonia Region North Poland Ukrai
Slide 29: S&P Rating Affirmed on Announced Acquisition of Aegon CEE
S&P RATING AFFIRMED ON ANNOUNCED ACQUISITION OF AEGON CEE VIG remains best-rated company in the ATX Financial Risk Profile: Business Risk Profile: Very Strong Strong ▪ “VIG's prudent underwriting standards and ▪ “Market leading position in Austria and the Central and Eastern Europe (CEE) region“” ea
Slide 30: 3M 2021 Premiums by Business Lines and Country (I)
3M 2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % Austria 110.9 112.1 -1.0 103.9 100.8 3.0 604.0 583.3 3.5 Czech Republic 84.6 79.2 6.8 64.2 60.9 5.4 152.7 144.3 5.8 Slovakia 40.8 41.6 -1.9 27.1 2
Slide 31: 3M 2021 Premiums by Business Lines and Country (II)
3M 2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % Austria 339.2 342.0 -0.8 57.8 111.5 -48.2 118.3 115.1 2.8 Czech Republic 165.5 167.4 -1.1 7.9 9.5 -16.8 4.9 4.6 6.5 Slovakia 41.8 44.3 -5.8
Slide 32: 3M 2021 Country Overview GWP / PBT / Combined Ratio
3M 2021 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net (in %) 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- %p Austria 1,334.1 1,364.8 -2.2 54.4 41.4 31.4 94.2 95.5 -1.3 Czech Republic 479.6 465.8 3.0 47.4 45.5 4.3 94.4 94.6
Slide 33: 3M 2021 Key Financials
3M 2021 KEY FINANCIALS Overview of KPIs Net result for the period after taxes ROE before taxes and Earnings per share (€) and non-controlling interest (€mn) non-controlling interest (%) 99 11.1 11.6 3.09 83 86 9.3 2.61 2.68 3M 2019 3M 2020 3M 2021 3M 2019 3M 2020 3M 2021 3M 2019 3M 2020 3M 2021 33 A
Slide 34: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (7 June 2021) 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
Slide 35: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region* North America 35% Continental Europe 25% ~72% ~28% Austria 24% UK & Ireland 13% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) * Split of identified shares, May 2020 (Source: Investor Update) 35 APPENDIX VIG VIENNA
Slide 36: Appendix
36 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 37: Contact Details / Financial Calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2021* Phone: +43 (0)50 390 – 21920 Phone: +43 (0) 50 390 – 21151 Date Event nina.higatzberger@vig.com sylvia.machherndl@vig.com 09 Mar. 20
Slide 38: 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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