Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — 9M 2016 Earnings Presentation
48 slides from Vienna Insurance's earnings presentation, Nov 22, 2016
Slide 1: Vienna Insurance Group 9M 2016 Results Presentation
Vienna Insurance Group 9M 2016 Results Presentation Vienna, 22 November 2016 Financial highlights Segments Investments and equity Appendix
Slide 2: 9M 2016 Results conference call: presenting team and topics
9M 2016 Results conference call Presenting team and topics Presenting team: Martin Simhandl, CFO Roland Gröll, Member of the Managing Board Judit Havasi, Member of the Managing Board Peter Höfinger, Member of the Managing Board Topics: Financial highlights p. 3 Segments p. 10 Investments and equity
Slide 3: Overview of solid 9M 2016 results
Overview of solid 9M 2016 results VIG on track to achieve target for 2016 €7.0bn Total premium volume increased by 0.7% Premium increases in all lines of business y-o-y except for life single GWP premium business Low interest rate environment results in further targeted reduction of life single prem
Slide 4: Stable premium development despite life single premium reduction
Stable premium development despite life single premium reduction Overview of premiums by segments (I) Gross written premiums (€mn; y-o-y chg.) 9M15 9M16 -1.5% 3,154.2 3,107.4 -3.1% 1,193.2 1,156.7 -0.7% -3.0% +30.3% 551.8 547.9 635.3 616.5 300.6 391.8 Austria Czech Republic Slovakia Poland Romania A
Slide 5: Strong GWP growth in CEE region
Strong GWP growth in CEE region Overview of premiums by segments (II) Gross written premiums (€mn; y-o-y chg.) 9M15 9M16 -10.0% +4.6% 299.3 269.4 +14.2% +15.6% 229.9 240.4 +140.8% +6.1% 162.0 160.7 141.9 139.1 104.5 101.7 107.8 43.4 The Baltic Hungary Bulgaria Turkey/ Remaining CEE Other markets Geo
Slide 6: Favourable premium development in all lines of business
Favourable premium development in all lines of business Gross written premiums (€mn; y-o-y chg.) MTPL Casco Other property Total premiums +13.9% +7.4% +4.4% +0.7% 1,002 721 2,834 2,957 6,912 6,962 671 880 MTPL 880 1,002 Casco 671 721 9M15 9M16 9M15 9M16 9M15 9M16 Other Property 2,834 2,957 Life regu
Slide 7: Group PBT of €301.3mn up by 88.4%; PBT 2015 impacted by IT impairment
Group PBT of €301.3mn up by 88.4%; PBT 2015 impacted by IT impairment Overview of profits by segments (I) Profit before taxes (€mn; y-o-y change) -9.3% 9M15 9M16 -11.5% 125.9 116.9 114.1 103.4 -1.9% -50.3% 40.4 39.6 34.8 +16.6% 17.3 5.5 6.4 Austria Czech Republic Slovakia Poland Romania In Austria a
Slide 8: Overview of profits by segments (II)
Overview of profits by segments (II) Profit before taxes (€mn; y-o-y change) +10.3% 9M15 9M16 -23.2% 16.7 15.1 15.1 +80.4% +4.4% 11.6 +41.6% n.a. 6.9 5.1 5.3 2.8 3.8 1.7 2.0 -7.8 The Baltic Hungary Bulgaria Turkey/ Remaining CEE Other markets Georgia Start-up costs and non-life portfolio transfer im
Slide 9: Combined ratio (P&C) at 97.9% due to increased claims ratio
Combined ratio (P&C) at 97.9% due to increased claims ratio P&C Combined ratio development P&C CoR 9M y-o-y regional development (net, %) +1%p 98.6 AT +0.7%p 97.9 99.3 96.9 89.4 30.5 CZ +3.5%p Cost ratio 30.5 92.9 96.6 SK -1.4%p 95.3 Claims ratio 66.4 67.4 97.2 PL +3.4%p 100.7 102.2 RO -0.6%p 9M15 9
Slide 10: Segments
Financial Segments highlights Investments and Appendix equity Financial highlights Segments Investments and equity Appendix
Slide 11: Austria: Premium development driven by single life business; PBT impacted by lower financial result
Austria: Premium development driven by single life business; PBT impacted by lower financial result CoR impact due to changed personnel provisions at half-year GWP development (€mn) P&L: P&C business (€mn) -1.5% 9M16 Y-o-Y 3,154 3,107 Underwriting and financial result 38.8 -42.5% MTPL 260 254 Other
Slide 12: Czech Republic: lower financial result main driver for decreased PBT
Czech Republic: lower financial result main driver for decreased PBT Despite cost ratio increase still excellent CoR of 92.9% GWP development (€mn) P&L: P&C business (€mn) -3.1% 9M16 Y-o-Y 1,193 Underwriting and financial result 49.0 -29.3% 1,157 Other non-technical result -2.3 -73.3% MTPL 193 200 R
Slide 13: Slovakia: Premium decrease driven by reduced life single premium
Slovakia: Premium decrease driven by reduced life single premium Stable development in all other lines of business GWP development (€mn) P&L: P&C business (€mn) -0.7% 9M16 Y-o-Y 552 548 Underwriting and financial result 18.6 4.1% Other non-technical result -1.1 n.a. MTPL 97 101 Result (pre tax) 17.5
Slide 14: Poland: lower financial result and claims development in motor are main drivers for PBT decrease
Poland: lower financial result and claims development in motor are main drivers for PBT decrease Premium decrease impacted by foreign exchange effects GWP development (€mn) P&L: P&C business (€mn) -3.0% 9M16 Y-o-Y 635 617 Underwriting and financial result 14.1 -54.4% MTPL 115 108 Other non-technical
Slide 15: Romania: strong premium increase and overall PBT up 16.6%
Romania: strong premium increase and overall PBT up 16.6% GWP development (€mn) P&L: P&C business (€mn) +30.3% 9M16 Y-o-Y 392 Underwriting and financial result 1.9 62.1% Other non-technical result 0.0 -98.6% 301 Result (pre tax) 1.9 >100% 190 Claims ratio 65.9% 0.5%p MTPL 103 Cost ratio 35.7% -1.1%p
Slide 16: Premium development of new segments (I)
Premium development of new segments (I) The Baltic GWP development (€mn) Hungary GWP development (€mn) +140.8% +14.2% 105 162 MTPL MTPL 142 11 24 9 12 Casco Casco 11 11 42 12 Other Property Other Property 39 4 43 13 3 Health Health 6 59 31 Life regular Life regular 57 27 Life single Life single 34 1
Slide 17: Premium development of new segments (II)
Premium development of new segments (II) Remaining CEE GWP development (€mn) Other markets GWP development (€mn) +4.6% -10.0% 230 240 299 269 MTPL 63 Other Property 75 63 Casco 81 30 29 Life regular 53 Other Property 55 Health 64 70 Life regular 6 6 Life single 171 46 45 134 Life single 22 28 9M15 9
Slide 18: Investments and equity
Financial Segments highlights Investments and Appendix equity Financial highlights Segments Investments and equity Appendix
Slide 19: Investment split and bond portfolio overview
Investment split and bond portfolio overview Full consolidation of non-profit housing societies and rating change of CZ 9M 2016: Total €36.5bn Bond portfolio by rating1 Other 6% 6% 6.1% 17% 18% 1.5% BBB 0.0% 7.5% A 31% 41% 5.8% Real Estate total AA 34% 15.4% 25% AAA 11% 11% 9.6% 12M15 9M16 3.9% 65.5
Slide 20: Financial result decreased by 10%
Financial result decreased by 10% Financial result incl. at equity consolidated companies Income in € '000 9M 2016 9M 2015 +/-% Current income 848,225 842,195 0.7 Income from appreciations 14,626 13,184 10.9 Overall financial result down by Income from the disposal of investments 94,561 153,099 -38.
Slide 21: Equity as of 9M 2016 includes non-controlling interests of fully consolidated housing societies
Equity as of 9M 2016 includes non-controlling interests of fully consolidated housing societies 12M 2015 restated for changed valuation of non-profit housing societies Change in Group Shareholders’ Equity (€mn) +31% 1,012 5,884 249 231 -2 4,490 -95 Equity restated Profit for the period Currency chan
Slide 22: Outlook unchanged
Outlook unchanged Short-term / medium-term Profit before taxes 2016 VIG aims to at least double the 2015 PBT up to €400mn Outlook Profitable growth – either organic or via acquisitions Mid-term Retaining market leadership positions in AT, CZ and SK goals Market share of at least 10% in HR, HU, PL, R
Slide 23: Appendix
Financial Segments highlights Investments and Appendix equity Note: Rounding differences may occur when rounded amounts or percentages are added up. Financial highlights Segments Investments and equity Appendix
Slide 24: Key financials: Overview of KPIs
9M 2016 Key financials Overview of KPIs Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 367 97.9 97.3 96.7 96.9 220 131 98 2014 2015 9M15 9M16 2014 2015 9M15 9M16 EPS1 (€) ROE after tax and minorities (%) 2.75 7.9 7.3 2.17 4.3 1.23 0.66 1.7 2014 2015 9M15 9M16 2014 2015 9M15 9M16 1
Slide 25: Income statement
9M 2016 Income statement IFRS (€mn) / 9M 2015 restated €mn 9M 2016 9M 2015 +/-% Gross premiums written 6,961.8 6,912.4 0.7 Net earned premiums 6,158.9 6,147.3 0.2 Financial result1 703.2 781.7 -10.0 Other income 122.8 78.3 56.8 Total income 6,984.9 7,007.3 -0.3 Expenses for claims and insurance bene
Slide 26: Balance sheet
9M 2016 Balance sheet IFRS (€mn) / YE 2015 restated €mn 30.09.2016 31.12.2015 +/-% Intangible assets 2,051 2,080 -1.4 Investments 34,992 30,142 16.1 Unit- and index-linked investments 8,483 8,144 4.2 Reinsurers’ share in underwriting provisions 1,063 1,031 3.1 Receivables 1,472 1,392 5.7 Tax receiva
Slide 27: P&L by segment (I)
9M 2016 P&L by segment (I) IFRS (€mn) / 9M 2015 restated Austria Czech Republic Slovakia €mn 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% Gross premiums written 3,107.4 3,154.2 -1.5 1,156.7 1,193.2 -3.1 547.9 551.8 -0.7 Net earned premiums 2,481.3 2,520.0 -1.5 861.5 927.1 -7.1 444.
Slide 28: P&L by segment (II)
9M 2016 P&L by segment (II) IFRS (€mn) / 9M 2015 restated Poland Romania The Baltic €mn 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% Gross premiums written 616.5 635.3 -3.0 391.8 300.6 30.3 104.5 43.4 >100 Net earned premiums 502.7 545.4 -7.8 253.4 192.3 31.8 80.8 42.3 91.2 Financi
Slide 29: P&L by segment (III)
9M 2016 P&L by segment (III) IFRS (€mn) / 9M 2015 restated Hungary Bulgaria Turkey/Georgia €mn 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% Gross premiums written 162.0 141.9 14.2 107.8 101.7 6.1 160.7 139.1 15.6 Net earned premiums 117.3 102.7 14.2 73.8 67.5 9.2 75.8 67.9 11.7 Fin
Slide 30: P&L by segment (IV)
9M 2016 P&L by segment (IV) IFRS (€mn) / 9M 2015 restated Remaining CEE Other markets €mn 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% Gross premiums written 240.4 229.9 4.6 269.4 299.3 -10.0 Net earned premiums 166.3 156.9 6.0 239.0 269.9 -11.5 Financial result1 26.2 26.9 -2.5 13.6 13.5 0.8 Other inco
Slide 31: P&L by segment (V)
9M 2016 P&L by segment (V) IFRS (€mn) / 9M 2015 restated Central Functions Consolidation TOTAL €mn 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% Gross premiums written 1,019.0 968.6 5.2 -922.5 -846.4 n.a. 6,961.8 6,912.4 0.7 Net earned premiums 855.3 805.8 6.2 7.3 -0.3 n.a. 6,158.9
Slide 32: Financial result by segment (I)
9M 2016 Financial result by segment (I) IFRS (€ '000) / 9M 2015 restated Income Austria Czech Republic Slovakia Poland in € '000 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 Current income 610,886 615,118 76,992 84,161 32,879 33,804 23,455 28,790 Income from appreciations 3,859 4,
Slide 33: Financial result by segment (II)
9M 2016 Financial result by segment (II) IFRS (€ '000) / 9M 2015 restated Income Romania The Baltic Hungary Bulgaria in € '000 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 Current income 10,777 9,624 3,831 2,589 6,413 7,014 16,790 16,329 Income from appreciations 1,309 147 478 487
Slide 34: Financial result by segment (III)
9M 2016 Financial result by segment (III) IFRS (€ '000) / 9M 2015 restated Income Turkey/Georgia Remaining CEE Other markets in € '000 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 Current income 6,556 5,735 28,246 27,775 15,390 15,030 Income from appreciations 1,642 1,737 149 307 3 31 of which re
Slide 35: Financial result by segment (IV)
9M 2016 Financial result by segment (IV) IFRS (€ '000) / 9M 2015 restated Income Central Functions Consolidation Total in € '000 9M 2016 9M 2015 9M 2016 9M 2015 9M 2016 9M 2015 Current income 91,906 73,177 -43,659 -46,645 880,462 872,501 Income from appreciations 32 0 0 0 14,625 13,184 of which redu
Slide 36: Development for P&C business according to VAG
9M 2016 development for P&C business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) / 9M 2015 restated 9M 2016 9M 2015 +/-% Overall result for direct business Gross direct premiums written 3,716.36 3,482.93 6.7 Gross direct 345.08 422.81 -18.4 Underwriting result 301.77 312.55 -
Slide 37: Development for life business according to VAG
9M 2016 development for life business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) / 9M 2015 restated 9M 2016 9M 2015 +/-% Overall result for direct business Gross direct premiums written 2,818.47 3,007.34 -6.3 Gross direct 222.37 226.45 -1.8 Underwriting result 0.00 0.00 0.00
Slide 38: Development for health business according to VAG
9M 2016 development for health business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) / 9M 2015 restated 9M 2016 9M 2015 +/-% Overall result for direct business Gross direct premiums written 309.29 299.35 3.3 Gross direct 35.30 41.79 -15.5 Underwriting result 0.00 0.00 0.00 Fin
Slide 39: Premiums by business lines and country (I)
9M 2016 Premiums by business lines and country (I) IFRS (€mn) GWP MTPL GWP Casco GWP Other property 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% Austria 253.6 259.8 -2.4% 210.9 205.5 2.7% 1,035.8 1,028.2 0.7% Czech Republic 199.7 192.5 3.7% 156.6 141.4 10.8% 317.5 293.6 8.1% Slovak
Slide 40: Premiums by business lines and country (II)
9M 2016 Premiums by business lines and country (II) IFRS (€mn) GWP Life regular GWP Life single GWP Health 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% Austria 936.7 938.0 -0.1% 376.4 438.9 -14.2% 294.0 283.8 3.6% Czech Republic 395.5 374.4 5.6% 77.3 181.1 -57.3% 10.1 10.2 -0.6% Sl
Slide 41: Country overview GWP / PBT / CoR
9M 2016 Country overview GWP / PBT / CoR IFRS (€mn) GWP Total Profit before taxes Combined Ratio net 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-% 9M 2016 9M 2015 +/-pp Austria 3,107.4 3,154.2 -1.5% 103.4 116.9 -11.5% 99.3% 98.6% 0.7 Czech Republic 1,156.7 1,193.2 -3.1% 114.1 125.9 -9.3% 92.9% 89.4% 3.5
Slide 42: Q3 2016 – Income statement
Q3 2016 – Income statement IFRS (€mn) / Q3 2015 restated €mn Q3 2016 Q3 2015 +/-% Gross premiums written 2,033.7 2,004.4 1.5 Net earned premiums 1,967.3 1,938.4 1.5 Financial result1 253.8 263.8 -3.8 Other income 18.9 28.1 -32.8 Total income 2,239.9 2,230.3 0.4 Expenses for claims and insurance bene
Slide 43: P&C claims and cost ratio details
9M 2016 P&C claims and cost ratio details Claims ratio 9M y-o-y regional development (net, %pts) Remarks for claims incurred 9M15 9M16 Slovakia: claims ratio development distorted by non- recurring positive effect last year 0.0 +7.4 +0.5 -0.1 +4.6 Poland: substantial increase due to challenging moto
Slide 44: Exchange rates
9M 2016 – Exchange rates 9M 2016 9M 2015 Balance Sheet Balance Sheet Country Currency P & L EUR P & L EUR EUR EUR Albania EUR/ALL 137.3300 137.7784 139.3900 140.2398 Belarus EUR/BYR 2.1610 2.2360 19,908.0000 17,027.4249 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.9558 1.9558 1.9558
Slide 45: VIG share (I)
VIG share (I) Current analyst recommendation split Share price development 9M 2016 Buy High EUR 24.790 Sell Low EUR 16.095 Price as of 30 Sept. EUR 18.070 Market cap. EUR 2.3bn Development YTD % -28.55 Hold VIG compared to ATX and Stoxx Europe 600 Ins. 115 105 95 85 75 65 55 Jan-16 Feb-16 Mar-16 Apr
Slide 46: 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 47: Contact details
Contact details Investor Relations Financial calendar 2017 Investor Relations Team Date Event 19 Apr. 2017 Results and Embedded Value 2016 Vienna Insurance Group Schottenring 30, 1010 Vienna 02 May 2017 Record date Annual General E-Mail: investor.relations@vig.com Meeting www.vig.com/ir 12 May 2017
Slide 48: 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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