Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Q1 2015 Earnings Presentation
36 slides from Vienna Insurance's earnings presentation, May 20, 2015
Slide 1: Vienna Insurance Group 3M 2015 Results Presentation
Vienna Insurance Group 3M 2015 Results Presentation Vienna, 20 May 2015 Financials Main regions Investments Appendix
Slide 2: 3M 2015 Results conference call overview
3M 2015 Results conference call overview Presenting team and topics Presenting team: Martin Simhandl, CFO Peter Höfinger, Member of the Managing Board Roland Gröll, Head of Group Finance and Accounting Nina Higatzberger, Head of Investor Relations Topics: Financial highlights p. 3 Investments and eq
Slide 3: A solid first quarter
A solid first quarter All business segments and countries with positive profit contribution €2.8bn Premiums up 0.9% Sound development despite substantial decreases in life single premium business Remaining markets continued to grow strongly by 15.9% €131mn Profit before taxes of €131mn down 15.2% Ne
Slide 4: Sound premium development
Sound premium development Remaining markets premiums up by 15.9% Gross written premiums (€mn; y-o-y chg.) GWP regional split y-o-y chg. +1% Austria 1,341 -3% 2,731 21 4 2,756 Czech Republic 458 -2% Health 103 102 -1 Slovakia 215 1% Life 1,154 1,159 Poland 238 -8% Romania 100 22% Remaining markets 35
Slide 5: Profit before taxes of €130.9mn down 15.2%
Profit before taxes of €130.9mn down 15.2% All business segments and countries with positive profit contribution Profit before taxes (€mn; y-o-y change) PBT regional split y-o-y chg. -15% Austria 40 -31% 154 Health 12 Czech Republic 46 -10% 0 131 -15 12 Slovakia 10 3% Life 48 -9 Poland 17 4% 40 Roma
Slide 6: Group combined ratio further decreased to 96.3%
Group combined ratio further decreased to 96.3% P&C Combined ratio development P&C CoR 3M y-o-y regional development (net, %) -0.1%p AT 99.8 -1.8%p 96.4 96.3 98.1 CZ 85.4 +4.3%p 89.7 63.5 SK 95.1 -0.6%p 3M14 Claims ratio 65.3 94.5 97.8 3M15 PL +0.4%p 98.1 RO 105.8 -1.0%p Cost ratio 31.1 32.8 104.8 R
Slide 7: Main regions
Financial Main regions highlights Investments and Appendix equity Financials Main regions Investments Appendix
Slide 8: Austria – effects out of low interest rate environment
Austria – effects out of low interest rate environment and increased weather related claims CoR improved but still burdened by Italian business of Donau GWP development (€mn) P&C GWP direct business split1 -2.5% MTPL 1,375 1,341 15% (17%) P&C 722 723 12% Casco (12%) Health 94 97 73% Life 559 521 (70
Slide 9: Czech Republic – contributing most to Group profits
Czech Republic – contributing most to Group profits Higher weather related claims; CoR maintained at excellent 89.7% GWP development (€mn) P&C GWP direct business split1 -1.8% 466 458 MTPL 29% (28%) P&C 236 235 51% Non-motor (54%) Life 231 223 20% (18%) Casco 3M 14 3M 15 P&L: P&C business (€mn) P&L:
Slide 10: Slovakia – solid performance in the first quarter
Slovakia – solid performance in the first quarter CoR further improved y-o-y GWP development (€mn) P&C GWP direct business split1 +0.7% 213 215 Non-motor 37% P&C 107 104 41% MTPL (36%) (42%) Life 106 111 23% (22%) 3M 14 3M 15 Casco P&L: P&C business (€mn) P&L: Life business (€mn) 3M15 Y-o-Y 3M15 Y-o
Slide 11: Poland – challenging market environment
Poland – challenging market environment Increased price competition in P&C reflected in decreased premium volume GWP development (€mn) P&C GWP direct business split1 -7.6% 258 MTPL 238 28% (29%) P&C 148 123 48% Non-motor (47%) Life 109 115 25% (23%) Casco 3M 14 3M 15 P&L: P&C business (€mn) P&L: Lif
Slide 12: Romania – substantial premium increase
Romania – substantial premium increase Positive profit contribution from P&C and life GWP development (€mn) P&C GWP direct business split1 +21.7% 100 Non-motor 82 29% (33%) 46% MTPL 84 (40%) P&C 69 24% Life 17 14 (27%) 3M 14 3M 15 Casco P&L: P&C business (€mn) P&L: Life business (€mn) 3M15 Y-o-Y 3M1
Slide 13: Remaining markets – ongoing top and bottom line growth
Remaining markets – ongoing top and bottom line growth Remaining CEE markets increased overall PBT by 1.5% GWP development (€mn) P&C GWP direct business split1 +15.9% MTPL 357 20% 308 (19%) 183 P&C 169 4 16% Health 8 63% (17%) Casco 170 (65%) Life 131 Non-motor 3M 14 3M 15 P&L: P&C business (€mn) P&
Slide 14: Investments and equity
Financial Main regions highlights Investments and Appendix equity Financials Main regions Investments Appendix
Slide 15: Conservative investments with a well diversified bond portfolio
Conservative investments with a well diversified bond portfolio Biggest part invested in fixed income assets 3M 2015: Total €32.4bn Bond portfolio by rating1 Other 6% 5% 6.2% 12% 13% BBB 3.1% 0.0% A 38% 36% 9.4% AA 29% 34% 6.1% AAA 15% 11% 4.2% 12M 2014 3M 2015 Bond portfolio by issuer 71.2% Corpora
Slide 16: Financial result development
Financial result development Slight decrease y-o-y Financial result y-o-y changes (€mn) -1% 275.8 2.2 273.4 3.9 -8.5 Financial result 3M14 Chg. P&C Chg. Life Chg. Health Financial result 3M15 Remarks Financial result of € 273.4mn includes P&L neutral positive FX effects from currency hedging of tech
Slide 17: 3M 2015 – Financial result
3M 2015 – Financial result Net realised gains at level of last year Income P&C Life Health Total in € '000 3M 2015 3M 2014 3M 2015 3M 2014 3M 2015 3M 2014 3M 2015 3M 2014 Current income 66,410 70,784 194,076 202,822 11,169 10,423 271,655 284,029 Income from appreciations 3,755 17,891 4,641 4,771 95
Slide 18: Strong equity and solvency position
3M 2015 – Strong equity and solvency position Shareholders’ equity increased Change in Group Shareholders’ Equity (€mn) +4% 132 -3 5,480 -52 -7 26 100 5,283 Equity restated Profit for Currency AFS unrealised Dividend Repurchase Other Equity as as of 12M14 the period changes gains and losses payment
Slide 19: Appendix
Financial Main regions highlights Investments and Appendix equity Please note: The figures for 2014 have been restated due to changes in the scope of consolidation. Financials Main regions Investments Appendix
Slide 20: Key financials
3M 2015 – Key financials Overview of KPIs Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 367 100.6 96.7 96.4 96.3 234 121 99 2013 2014 3M14 3M15 2013 2014 3M14 3M15 EPS1 (€) ROE before Taxes (%) 3.62 12.2 2.94 10.1 9.7 2.75 6.7 1.57 2013 2014 3M14 3M15 2013 2014 3M14 3M15 1: EPS n
Slide 21: Income statement
3M 2015 – Income statement IFRS (€mn) €mn 3M 2015 3M 2014 +/-% Gross premiums written 2,755.9 2,731.1 0.9 Net earned premiums 2,210.6 2,212.6 -0.1 Financial result1 273.4 275.8 -0.9 Other income 28.3 27.6 2.6 Total income 2,512.3 2,515.9 -0.1 Expenses for claims and insurance benefits -1,729.8 -1,83
Slide 22: Balance sheet
3M 2015 – Balance sheet IFRS (€mn) €mn 31.03.2015 31.12.2014 +/-% Intangible assets 2,364 2,370 -0.3 Investments 31,413 30,360 3.5 Unit- and index-linked investments 8,337 7,742 7.7 Reinsurers’ share in underwriting provisions 1,237 1,106 11.9 Receivables 1,694 1,502 12.8 Tax receivables and advance
Slide 23: P&L Property & Casualty
3M 2015 – P&L Property & Casualty IFRS (€mn) €mn 3M 2015 3M 2014 +/-% Gross premiums written 1,495.7 1,474.4 1.4 Net earned premiums 977.6 979.1 -0.2 Financial result 55.1 63.6 -13.4 Other income 14.9 17.1 -12.6 Total income 1,047.6 1,059.8 -1.2 Expenses for claims and insurance benefits -621.0 -639
Slide 24: P&L Life
3M 2015 – P&L Life IFRS (€mn) €mn 3M 2015 3M 2014 +/-% Gross premiums written 1,158.5 1,154.1 0.4 Net earned premiums 1,135.4 1,132.4 0.3 Financial result 208.9 205.0 1.9 Other income 13.0 10.5 24.2 Total income 1,357.3 1,347.9 0.7 Expenses for claims and insurance benefits -1,026.9 -1,111.3 -7.6 Ac
Slide 25: P&L Health
3M 2015 – P&L Health IFRS (€mn) €mn 3M 2015 3M 2014 +/-% Gross premiums written 101.7 102.6 -0.8 Net earned premiums 97.6 101.0 -3.3 Financial result 9.3 7.1 30.9 Other income 0.3 0.0 >100 Total income 107.3 108.1 -0.7 Expenses for claims and insurance benefits -81.9 -83.1 -1.5 Acquisition and admin
Slide 26: P&L regions (I)
3M 2015 – P&L regions (I) IFRS (€mn) Austria Czech Republic Slovakia €mn 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% Gross premiums written 1,341.0 1,375.4 -2.5 457.8 466.4 -1.8 214.7 213.2 0.7 Net earned premiums 902.1 938.1 -3.8 349.8 361.7 -3.3 166.6 162.7 2.4 Financial result
Slide 27: P&L regions (II)
3M 2015 – P&L regions (II) IFRS (€mn) Poland Romania Remaining €mn 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% Gross premiums written 238.1 257.7 -7.6 100.3 82.4 21.7 357.2 308.2 15.9 Net earned premiums 205.6 203.7 0.9 61.7 46.4 32.8 254.7 219.4 16.1 Financial result 14.6 13.3 9.
Slide 28: P&L regions (III)
3M 2015 – P&L regions (III) IFRS (€mn) Central Functions Consolidation TOTAL €mn 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-% Gross premiums written 371.0 359.2 3.3 -324.3 -331.4 n.a. 2,755.9 2,731.1 0.9 Net earned premiums 269.6 282.2 -4.5 0.5 -1.7 n.a. 2,210.6 2,212.6 -0.1 Financ
Slide 29: Results by country (I)
3M 2015 – Results by country (I) IFRS (€mn) GWP P&C GWP Life GWP Health GWP Total 3M 3M 3M 3M 3M 3M 3M 3M +/-% +/-% +/-% +/-% 2015 2014 2015 2014 2015 2014 2015 2014 Austria 722.9 721.6 0.2% 520.7 559.4 -6.9% 97.4 94.3 3.2% 1,341.0 1,375.4 -2.5% Czech Rep. 234.5 235.8 -0.5% 223.2 230.6 -3.2% - - - 4
Slide 30: Results by country (II)
3M 2015 – Results by country (II) IFRS (€mn) Profit before Taxes Net Combined Ratio 3M 2015 3M 2014 +/-% 3M 2015 3M 2014 +/-%p Austria 39.6 57.7 -31.4% 98.1% 99.8% -1.8 Czech Rep. 45.8 51.0 -10.2% 89.7% 85.4% 4.3 Slovakia 9.7 9.4 2.6% 94.5% 95.1% -0.6 Poland 16.6 15.9 4.3% 98.1% 97.8% 0.4 Romania 1.
Slide 31: P&C Claims and cost ratio details
3M 2015 – P&C Claims and cost ratio details Claims ratio 3M y-o-y regional development (net, %) Remarks for claims incurred Austria: claims ratio down 3.6%p driven by development of Donau 3M14 3M15 Versicherung (less business volume in Italy) -3.6 +5.5 +6.0 +6.5 Czech Republic: slight increase due t
Slide 32: Exchange rates
3M 2015 – Exchange rates 3M 2015 3M 2014 Balance Sheet Balance Sheet Country Currency P & L EUR P & L EUR EUR EUR Albania EUR/ALL 140.3400 140.2321 140.2700 140.3884 Belarus EUR/BYR 15,970.0000 16,574.8889 13,570.0000 13,280.6667 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.9558 1.9
Slide 33: VIG share (I)
VIG share (I) Current analyst recommendation split Share price development 3M 2015 Buy Sell High EUR 42.550 Low EUR 35.825 Price as of 31 Mar. EUR 41.200 Average daily volume EUR 4.2 mn Market cap. EUR 5.3 bn Development YTD % 11.1 Hold VIG compared to ATX and Stoxx Europe 600 Ins. 125 120 115 110 1
Slide 34: 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 35: Contact details
Contact details Investor Relations Financial calendar 2015 Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna Publication: Preliminary E-Mail: investor.relations@vig.com 27 Jan. 2015 unconsolidated premiums 2014 www.vig.com/ir Nina Higatzberger (Head of IR) 14 Apr
Slide 36: 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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