Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Baader Investment Conference 2016
22 slides from Vienna Insurance's conference presentation, Sep 22, 2016
Slide 1: Vienna Insurance Group - Top player in Austria and CEE
Vienna Insurance Group - Top player in Austria and CEE Baader Investment Conference 22 September 2016
Slide 2: Dynamic expansion into CEE out of Austria
Dynamic expansion into CEE out of Austria VIG with the most diversified network throughout the region 1990: 3 Markets Today: 25 Markets Client/talent base: 24mn people Client/talent base: 180mn people 1990 1996 1999 2001/2002 2004 2006 2007 2008 2010 2011 2014 CZ, SK HU, PL, IT, LI, HR RO, BY SI GE
Slide 3: Excellent market positions of VIG
Excellent market positions of VIG VIG is the clear No 1 in its major CEE markets Market positions Country Total market share Total N-life Life Austria 1 1 1 26.2% Czech Republic 1 1 1 34.1% Slovakia 1 2 1 32.7% Poland 4 5 4 6.8% Romania 1 1 2 26.5% Bulgaria 1 1 2 16.3% Croatia 5 7 3 6.7% Serbia 4 4
Slide 4: Well-proven strategy
Well-proven strategy Strategic cornerstones Focus on Conservative Strategy refinement for the future Austria and Local investments and CEE entrepreneurship reinsurance Gain market shares with growth in selected markets: Croatia, Hungary, Poland and Serbia Digitalisation emphasis in the area of produ
Slide 5: VIG strengthening its growth platform in CEE
VIG strengthening its growth platform in CEE Refinement of strategy (I) VIG is aiming to grow its market share in Croatia, Hungary, Poland and Serbia to at least 10% in the mid-term Croatia: With total GWP up 6.2% in HY 2016, VIG Croatia is growing above market; driven by double-digit growth rates i
Slide 6: Focus on health insurance and digitalisation
Focus on health insurance and digitalisation Refinement of strategy (II) Stronger focus on health insurance Digitalisation under way In many countries: discussions about affordability Use of digital products and services has of public health care systems become more popular Life expectancy up longer
Slide 7: Striking under-penetration shows potential
Striking under-penetration shows potential Annual premiums per capita (insurance density), in EUR 2,939 12x Long-term growth potential 2,034 in CEE still lies ahead Life Non-life 516 408 345 285 271 171 140 99 94 27 Ø EU-15 AT øCEE CZ SK PL HU HR BG RO RS UA VIG Source: Local insurance authorities;
Slide 8: CEE grows faster than the EU-15
CEE grows faster than the EU-15 Forecast of economic growth in CEE vs. EU-15 GDP growth in 2016: 12% CEE: 4.0% and 10% EU-15: 2.6% 8% 6% 4% 2% 0% -2% -4% -6% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 EU-15 CEE Source: IMF; April 2016; CE
Slide 9: Solvency II ratio of 196% as of 31 Dec. 2015
Solvency II ratio of 196% as of 31 Dec. 2015 Calculation based on Partial Internal Model (PIM) in EURmn Solvency II ratio of 196% on level of stock-listed VIG Application of Partial Internal Model improves Solvency II ratio by 40pp PIM reduces SCR by EUR 800mn Results include volatility adjustment N
Slide 10: Sensitivity analysis for market risk categories
Sensitivity analysis for market risk categories 10
Slide 11: Investment split and bond portfolio overview
Investment split and bond portfolio overview Investment strategy focused on stable returns 6M 2016: Total €32.3bn Bond portfolio by rating1 Other 6% 6% 17% 19% 1.5% 6.0% BBB 0.0% 8.9% A 31% 31% 6.2% AA 34% 34% AAA 4.1% 11% 11% 12M15 6M16 Bond portfolio by issuer 73.2% Corporates 16% 18% Financials 2
Slide 12: Overview of the 6M 2016 results
Overview of the 6M 2016 results Business development in line with expectations €4.9bn Total premium volume increased by 0.4% Solid development in all lines of business – motor, other property, life GWP regular premium and health business growing y-o-y Ongoing targeted reduction of life single premiu
Slide 13: Solid premium development in all lines of business except life single premium
Solid premium development in all lines of business except for life single premium business Gross written premiums (€mn; y-o-y chg.) MTPL Casco Other property Total premiums +13.2% +7.7% +3.8% +0.4% 697 496 2,050 2,128 4,908 4,928 616 461 MTPL 616 697 Casco 461 496 6M15 6M16 6M15 6M16 6M15 6M16 Other
Slide 14: Outlook
Outlook Short-term / medium-term / general Profit before taxes 2016 Despite that it is expected that the current low interest rate environment will lead to another decline in the ordinary financial result VIG aims to: Outlook At least double the profit before taxes 2015 up to €400mn Mid-term Profita
Slide 15: Appendix
Appendix VIG* VIENNA INSURANCE GROUP
Slide 16: 6M 2016 Key financials
6M 2016 Key financials Overview of KPIs Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 367 97.9 97.3 96.7 95.9 188 153 98 2014 2015 6M15 6M16 2014 2015 6M15 6M16 EPS1 (€) ROE after tax and minorities (%) 2.75 2.80 9.1 7.9 7.7 2.26 0.66 1.7 2014 2015 6M15 6M16 2014 2015 6M15 6M16 1
Slide 17: S&P rating confirmed in July 2016: A+/stable/--
S&P rating confirmed in July 2016: A+/stable/-- VIG remains the best rated company in the ATX Anchor: Business Risk Profile: Strong a+ „Strong competitive position, based on leading market positions in Austria and CEE“ „Sound diversification by business line and a well-established multichannel distr
Slide 18: VIG share (I)
VIG share (I) Current analyst recommendation split Share price development 6M 2016 Buy High EUR 24.790 Low EUR 16.275 Sell Price as of 30 June EUR 17.005 Market cap. EUR 2.2 bn Development YTD % -32.76 Hold VIG compared to ATX and Stoxx Europe 600 Ins. 105 95 85 75 65 55 Jan-16 Feb-16 Mar-16 Apr-16
Slide 19: VIG share (II)
VIG share (II) General information Shareholder structure Number of common shares: 128mn ISIN: AT0000908504 ~30% Wiener Städtische Free Float Listings: Wechselseitiger Versicherungsverein - Vienna – since 17 Oct. 1994 Vermögensverwaltung – Vienna Insurance Group ~70% Prague – since 5 Feb. 2008 Ticker
Slide 20: Contact details
Contact details Investor Relations Financial calendar 2016 Investor Relations Team Date Event Publication: Preliminary Vienna Insurance Group 26 Jan. 2016 Schottenring 30, 1010 Vienna unconsolidated premiums 2015 E-Mail: investor.relations@vig.com 07 Apr. 2016 Results and Embedded Value 2015 www.vig
Slide 21: The leading insurance specialist in Austria and CEE
THE LEADING INSURANCE SPECIALIST IN AUSTRIA AND CEE. VIG® VIENNA INSURANCE GROUP Wiener Versicherung Gruppe WIENER STADTISCHE VIENNA INSURANCE GROUP @llonauv VIENNA INSURANCE GROUP VIENNA INSURANCE GROUP KOMU! LNA POISTOVNA WA SURANCE GROUP SLOVENSKE) SPORITELNE VIENNA INSURANCE GROUP WIENER STADTIS
Slide 22: 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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