Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Non-Deal Roadshow (April 2009)
40 slides from Vienna Insurance's roadshow presentation, Apr 2, 2009
Slide 1: V.I.G. – A Solid Ship in a Stormy Market
V.I.G. – A Solid Ship in a Stormy Market Roadshow Milan, 2 April 2009
Slide 2: Disclaimer
Disclaimer 2 This information does not represent an offer or invitation to purchase securities of WIENER STÄDTISCHE Versicherung AG Vienna Insurance Group (“VIG”). Any subscription orders received prior to the public offering will be refused. Any public offer will only be made pursuant to and on the
Slide 3: YE 2008 results: Financial Highlights
Vienna Insurance Group - YE 2008 results Financial Highlights
Slide 4: Financial Highlights (I)
YE 2008 Financial Highlights (I) VIG keeps promises of financial strength 4 § EUR 541mn YE 2008 PBT in line with outlook § Combined ratio (net) on § Bonus dividend for stable level at 96.4% despite shareholders´ loyalty strengthening of reserves § Embedded value 2008: Fairly strong value & § Strong
Slide 5: Financial Highlights (II)
YE 2008 Financial Highlights (II) Excellent top and bottom line performance 5 GWP Profit before Tax 14.3% 23.7% 541 7,899 6,912 437 5,882 5,008 321 240 2005 2006 2007 2008 2005 2006 2007 2008 IFRS IFRS Net Profit after Tax and Minorities Combined Ratio (net) 30.7% 96.9 96.4 409 95.5 313 261 94.3 197
Slide 6: Financial Highlights (III)
YE 2008 Financial Highlights (III) 6 EPS ROE before Tax (%) 3.41 2.98 21.9 2.48 18.0 2.27 14.8 14.3 2005 2006 2007 2008* 2005 2006 2007 2008* * Diluted for SPO IFRS * Diluted for SPO IFRS
Slide 7: YE 2008 results: P&L and Balance Sheet Details
Vienna Insurance Group - YE 2008 results P&L and Balance Sheet Details
Slide 8: Income Statement
YE 2008 Income Statement IFRS (€mn) 8 YE 2008 YE 2007 +/-% 1. Gross written premiums 7,898.9 6,911.9 14.3 2. Net earned premiums 6,961.6 5,941.7 17.2 3. Net investment income 918.1 1,002.6 -8.4 4. Other income 127.5 52.0 >100 Total income 8,007.2 6,996.3 14.4 6. Expenses for claims incurred -5,607.4
Slide 9: Balance Sheet
YE 2008 Balance Sheet IFRS (€mn) 9 YE 2008 YE 2007 +/- % Intangible assets 1,649 525 >100 Total investments 24,548 20,171 21.7 Unit- and index-linked investments 3,602 3,066 17.5 Reinsurers’ share in technical provisions 1,222 1,187 3.0 Receivables 1,500 1,200 25.0 Deferred tax assets 131 34 >100 Ot
Slide 10: P&L Major Items – Gross Written Premiums
YE 2008 P&L Major Items – Gross Written Premiums Sustained strong premium growth in CEE (€mn) 10 Non-Life Life Total 218.1 YE 2008 YE 2007 YE 2008 YE 2007 YE 2008 YE 2007 251.2 2,965.4 3,925.0 Other Austria 1,883.4 1,793.7 1,872.4 1,901.6 3,755.7 3,695.4 CEE Czech Rep. 982.8 838.1 437.0 292.3 1,419.
Slide 11: P&L Major Items – Expenses for Claims Incurred
YE 2008 P&L Major Items – Expenses for Claims Incurred Loss ratio stable despite one-off effects in RO, SK 11 § Group loss ratio (net) at 64.5% (from 64.2% in § Poland improving by 2.3% pts to 57.6% due to YE 2007 ) effective claims and risk management and benign motor pricing § Austrian loss ratio
Slide 12: P&L Major Items – Operating Expenses
YE 2008 P&L Major Items – Operating Expenses Cost ratio slightly up due to higher share of CEE business 12 § Group cost ratio (net) increasing by 0.7% pts § Cost ratio in Slovakia down by 2.1% pts at to reach 31.9% impacted by higher share of 37.5% due to strict cost management and CEE business in t
Slide 13: P&L Major Items – Net Investment Income
YE 2008 P&L Major Items – Net Investment Income One-off gains balanced by market downturn (€mn) 13 Detail - Income P&C Life Health Total in € '000 YE 2008 YE 2007 YE 2008 YE 2007 YE 2008 YE 2007 YE 2008 YE 2007 Current income 210,601 146,290 1,025,645 828,298 39,271 30,249 1,275,517 1,004,837 Income
Slide 14: European Embedded Value 2008 (overview)
Vienna Insurance Group - YE 2008 final results European Embedded Value 2008 (overview)
Slide 15: Group Embedded Value 2008
Group Embedded Value 2008 Results (€mn) 15 L&H P&C Total Austria/Germany 2008 2007 2008 2007 2008 2007 Comments Free Surplus 403.6 525.3 Required Capital 320.5 325.9 § Group Embedded Value (GEV) ANAV 724.1 851.2 151.4 426.6 875.5 1,277.8 calculated as Value of In-Force Business PVFP 1,233.9 1,568.5
Slide 16: Group Embedded Value 2008: Return on Adjusted EV
Group Embedded Value 2008 Return on Adjusted Embedded Value (€mn) 16 L&H P&C Total Change in Methodology Austria / Germany and Assumptions EV Dec 31, 2008 1,670.3 151.4 1,821.7 EV Dec 31, 2007 Reported 2,012.7 617.5 2,630.2 § Allowance for Cost for Residual EV Dec 31, 2007 Restated 2,037.4 570.7 2,6
Slide 17: Group Embedded Value 2008: New Business Values
Group Embedded Value 2008 New Business Values (€mn) 17 L&H 2008 2007 +/-% Comments Austria / Germany NBV 61.6 76.2 - 19.2% APE 259.1 262.2 § The NBV represents the value generated APE-Ratio 23.8% 29.1% by new business sold during the PVNBP 2,479.2 2,398.6 reporting period. PVNBP-Ratio 2.5% 3.2% § Th
Slide 18: Diversification
Vienna Insurance Group - YE 2008 final results Diversification
Slide 19: Diversification (I)
Diversification (I) Basis of business origination substantially widened 19 GWP by Geography YE 05 GWP by Geography YE 08 Other CEE Other 5.5% Other Romania 2.5% Other CEE 2.7% 2.7% 6.3% Poland Romania 1.5% 7.7% Austria Austria Slovakia 63.3% 47.5% 6.6% Poland 10.1% Czech Slovakia Republic 7.7% 17.9%
Slide 20: Diversification (II)
Diversification (II) YE 2008 investment split – V.I.G. follows a prudent risk policy 20 Investment policy Portfolio Overview Other Cash & Deposits BBB AAA Alternative Inv. ~2% § More than 50% of real estate with ~ 2% ~ 7% ~7% ~21% regulated Austrian housing Affiliated societies; remainder also large
Slide 21: Reinforced Financial Performance
Reinforced Financial Performance Efficiency programme and capitalisation 21 Action Programme Capital Position External and internal benchmarking § Capital kept stable since SPO 2008 analysis shows cost savings potential of at least € 100mn § S&P rating of A+ recently confirmed § V.I.G. intends to is
Slide 22: Dividend
Dividend Attractive bonus dividend almost doubles original plan 22 Development of Dividend Comments § Basis dividend for 2008 kept EPS stable at € 1.1 per share Dividend/share Bonus dividend/share 3.41 § Bonus dividend of 90 Cents per 2.98 share as a reward for loyal shareholders and those joining 2
Slide 23: 2M 2009 Business Trend
2M 2009 Business Trend Preliminary GWP for 2M 2009 (local FX, mn, unconsolidated, unaudited) 23 Non-life Life Total 2M 2009 2M 2008 +/-% 2M 2009 2M 2008 +/-% 2M 2009 2M 2008 +/-% Austria 536.8 523.9 2.5% 340.7 262.0 30.0% 877.5 786.0 11.7% Czech Rep. 6,397.1 6,010.0 6.4% 2,507.2 1,513.2 65.7% 8,904.
Slide 24: Outlook
Outlook Current market volatility constrains forecasts 24 V.I.G.'s Path of Profitability Outlook § Persistently shaky situation of 9,000 600 capital markets does not allow for 8,000 GWP firm establishment of targets for PBT 500 2009 and medium term 7,000 PBT in €mn GWP in €mn 6,000 400 § V.I.G. stil
Slide 25: Appendix
Vienna Insurance Group - YE 2008 results Appendix
Slide 26: P&L – Business Segments: Property & Casualty
YE 2008 P&L – Business Segments Property & Casualty, IFRS (€mn) 26 YE 2008 YE 2007 +/-% 1. Gross written premiums 4,278.9 3,671.2 16.6 2. Net earned premiums 3,375.4 2,746.8 22.9 3. Net investment income 307.0 148.5 >100 4. Other income 77.9 35.3 >100 Total income 3,760.3 2,930.5 28.3 6. Expenses fo
Slide 27: P&L – Business Segments: Life
YE 2008 P&L – Business Segments Life, IFRS (€mn) 27 YE 2008 YE 2007 +/-% 1. Gross written premiums 3,305.7 2,934.2 12.7 2. Net earned premiums 3,272.9 2,889.4 13.3 3. Net investment income 598.5 838.0 -28.6 4. Other income 49.6 16.7 >100 Total income 3,920.9 3,744.1 4.7 6. Life benefits -3,171.9 -3,
Slide 28: P&L – Business Segments: Health
YE 2008 P&L – Business Segments Health, IFRS (€mn) 28 YE 2008 YE 2007 +/-% 1. Gross written premiums 314.3 306.6 2.5 2. Net earned premiums 313.3 305.5 2.6 3. Net investment income 12.7 16.1 -21.5 4. Other income 0.0 0.0 0.0 Total income 326.0 321.7 1.4 6. Expenses for claims incurred -259.7 -266.9
Slide 29: P&L - Split by Regions (I)
YE 2008 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 29 Austria Czech Republic YE 2008 YE 2007 +/-% YE 2008 YE 2007 +/-% 1. Gross written premiums 3,755.7 3,695.4 1.6 1,419.7 1,130.5 25.6 2. Net earned premiums 3,409.3 3,304.5 3.2 1,189.5 919.0 29.4 3. Net investment income 732.7 848.4 -
Slide 30: P&L - Split by Regions (II)
YE 2008 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 30 Slovakia Poland Romania YE 2008 YE 2007 +/-% YE 2008 YE 2007 +/-% YE 2008 YE 2007 +/-% 1. Gross written premiums 605.6 494.5 22.5 795.1 543.1 46.4 608.2 413.5 47.1 2. Net earned premiums 523.2 398.8 31.2 747.5 483.9 54.5 528.2 314.
Slide 31: P&L - Split by Regions (III)
YE 2008 P&L - Split by Regions (III) Regional segments, IFRS (€mn) 31 Other CEE Other TOTAL YE 2008 YE 2007 +/-% YE 2008 YE 2007 +/-% YE 2008 YE 2007 +/-% 1. Gross written premiums 496.4 383.8 29.3 218.1 251.2 -13.2 7,898.9 6,911.9 14.3 2. Net earned premiums 378.8 300.3 26.1 185.0 220.3 -16.0 6,961
Slide 32: Results by Country
YE 2008 Results by Country IFRS (€mn) 32 Non-Life Life Total Profit before Tax Combined Ratio YE 2008 YE 2007 YE 2008 YE 2007 YE 2008 YE 2007 YE 2008 YE 2007 YE 2008 YE 2007 Austria 1,883.4 1,793.7 1,872.4 1,901.6 3,755.7 3,695.4 344.3 286.8 94.6% 93.8% Czech Rep. 982.8 838.1 437.0 292.3 1,419.7 1,1
Slide 33: Change in Group Shareholders' Equity
Change in Group Shareholders‘ Equity IFRS 33 1.1. - 31.12.2008 1.1. - 31.12.2007 Equity as of 1 January 2,615,563 2,283,208 Currency changes -40,833 8,726 Changes to consolidation 31,628 259,295 Capital Increase 1,343,454 - Unrealised gains and losses on financial -134,328 -182,682 instruments avail
Slide 34: Life Insurance Premium Split
Life Insurance Premium Split IFRS (€mn) 34 Premiums written - direct business YE 2008 YE 2007 +/- % Regular premiums 1,931.6 1,795.9 7.6% Single premiums 1,363.1 1,135.1 20.1% Total premiums written - direct business 3,294.7 2,931.0 12.4% thereof: Policies with profit participation 1,851.7 1,724.7 7
Slide 35: Q4 2008 Income Statement
Q4 2008 Income Statement IFRS (€mn) 35 Q4 2008 Q4 2007 +/-% 1. Gross written premiums 1,881.1 1,880.1 0.1 2. Net earned premiums 1,792.5 1,721.4 4.1 3. Net investment income 111.9 259.6 -56.9 4. Other income 84.8 20.2 >100 Total income 1,989.2 2,001.1 -0.6 6. Expenses for claims incurred -1,356.0 -1
Slide 36: Exchange Rates
YE 2008 Exchange Rates National currency unit per EUR 36 YE 2008 YE 2007 Balance Sheet Balance Sheet Country Curr. P & L EUR P & L EUR EUR EUR Bulgaria EUR/BGN 1.9558 1.9558 1.9558 1.9558 Croatia EUR/HRK 7.3555 7.2239 7.3308 7.3376 Liechtenstein EUR/CHF 1.4850 1.5874 1.6547 1.6427 Poland EUR/PLN 4.1
Slide 37: Shareholder Structure (I)
Shareholder Structure (I) Total number of shares 128,000,000 37 Shareholder Structure ~70 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung ~ 30 % Free Float
Slide 38: Shareholder Structure (II)
Shareholder Structure (II) Total number of shares 128,000,000 38 Free Float Geographical Split ~21 % Austria ~20% ~14% North America Others ~32% ~13% Continental Europe UK & Ireland
Slide 39: Contact Details
Contact Details Investor Relations 39 Vienna Insurance Group Schottenring 30, 1010 Vienna, Austria www.viennainsurancegroup.com Stock exchange listing: VIENNA / PRAGUE Ticker symbol: VIG / VIG Reuters: VIGR.VI / VIGR.PR Bloomberg: VIG AV / VIG CP § Thomas Schmee Tel. +43 (0)50 350 – 21900 thomas.sch
Slide 40: Disclaimer
Disclaimer 40 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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