Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — H1 2008 Earnings Presentation

34 slides from Vienna Insurance's earnings presentation, Aug 21, 2008

  1. Slide 1: VIG well on track to reach full year targets

    VIG well on track to reach full year targets 6M 2008 results - 21 August 2008

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics 2 Presenting Team Topics § Peter Hagen, Member of the § Strategic Update p.3 Managing Board § Highlights p.5 § Roland Gröll, Head of Group § P&L and Balance Sheet p.9 Accounting § Appendix p.19 § Thomas Schmee, Head of Investor Relations

  3. Slide 3: Strategic Update (I)

    Strategic Update (I) Already first in CEE core markets before integration of s Versicherung 3 Footprint Total Market Share in CEE1 13.0% 11.4% 11.0% 6.1% 4.5% 3.9% 3.8% 2.4% 2.3% 1.6% KBC s Versicherung VIG ING AIG Aviva Uniqa Aegon Allianz Generali Core Markets Source: National insurance associatio

  4. Slide 4: Strategic Update (II)

    Strategic Update (II) Acquisition of Erste Bank insurance operations 4 Long-Term Preferred Bancassurance Agreement Transaction Acquisition of Erste Bank’s Insurance Operations § EU Commission already approved acquisition of Erste Bank insurance Recent Steps operations; only two local approvals still

  5. Slide 5: Financial Highlights

    Vienna Insurance Group- 6M 2008 results Financial Highlights

  6. Slide 6: Highlights (I)

    6M 2008 Highlights (I) Guidance for 2008 unchanged 6 § Excellent top-line growth, in particular in CEE (also net of acquisitions) § For the first time ever, in Q2 share of CEE business more than 50 % of total premiums § Combined ratio (net) stable at 95.9% § Profit before tax growing at faster pace

  7. Slide 7: Highlights (II)

    6M 2008 Highlights (II) VIG defying market trends 7 GWP Profit before Tax 6,912 5,882 20.7% 437 5,008 33.9% 4,215 321 288 3,493 240 3,029 215 143 2005 2006 2007 6M 06 6M 07 6M 08 2005 2006 2007 6M 06 6M 07 6M 08 IFRS IFRS Net Profit after Tax and Minorities Combined Ratio (net) 313 29.3% 97.9 261 96

  8. Slide 8: Highlights (III)

    6M 2008 Highlights (III) 8 EPS* ROE before Tax (%)* 3.72 2.98 3.06 21.9 2.48 18.0 2.27 2.17 16.9 17.0 14.8 13.2 2005 2006 2007 6M 06 6M 07 6M 08 2005 2006 2007 6M 06 6M 07 6M 08 * diluted, annualised IFRS * diluted, annualised IFRS

  9. Slide 9: P&L and Balance Sheet Details

    Vienna Insurance Group- 6M 2008 results P&L and Balance Sheet Details

  10. Slide 10: Income Statement

    6M 2008 Income Statement IFRS (€mn) 10 6M 2008 6M 2007 +/-% 1. Gross written premiums 4,215.1 3,493.1 20.7 2. Net earned premiums 3,471.3 2,829.1 22.7 3. Net investment income 618.7 553.2 11.8 4. Other income 30.7 20.7 48.5 Total income 4,120.7 3,403.0 21.1 6. Expenses for claims incurred -2,912.4 -

  11. Slide 11: Balance Sheet

    6M 2008 Balance Sheet IFRS (€mn) 11 6M 2008 YE 2007 +/- % Intangible assets 848 525 61.7 Total investments 18,625 20,171 -7.7 Unit- and index-linked investments 2,214 3,066 -27.8 Reinsurers’ share in technical provisions 1,088 1,187 -8.3 Receivables 1,976 1,200 64.6 Deferred tax assets 83 34 144.4 O

  12. Slide 12: P&L Major Items – Gross Written Premiums

    6M 2008 P&L Major Items – Gross Written Premiums Premium growth stronger than in Q1 (€mn) 12 § Group GWP gained 20.7% to € 4,215mn (+ 15.4% net of acquisitions) § Austria: total GWP up 8.3% to reach € 2,120mn. Life up 13.3% at 112.7 € 1,014mn (strong single premiums); P&C up 4.5% at 126.8 € 947.7mn

  13. Slide 13: Geographical Diversification Enhanced

    Geographical Diversification Enhanced GWP split by region 13 GWP by Geography 6M 06 GWP by Geography 6M 07 GWP by Geography 6M 08 Other CEE Other Other CEE Other 3.9% Other Romania 3.1% 4.2% 3.6% Other CEE 2.6% Romania 5.7% 3.5% 5.5% Poland Romania 4.2% Poland 8.6% Austria Austria Austria Slovakia 7

  14. Slide 14: P&L Major Items – Expenses for Claims Incurred

    6M 2008 P&L Major Items – Expenses for Claims Incurred Loss ratio improving despite one-off effects in RO, SK 14 § Group loss ratio (net) at 63.4% (down from § Poland improving by 8.6% pts to 54.2% due to 64.7% in 6M 2007 ) effective claims and risk management and benign motor pricing § Austrian los

  15. Slide 15: P&L Major Items – Operating Expenses

    6M 2008 P&L Major Items – Operating Expenses Cost ratio slightly up due to acquisition expenses 15 § Group cost ratio (net) increasing by 1.2% to § Poland showing higher cost ratio at 42.1% reach 32.5% influenced by acquisition costs resulting from fast business growth and Religa tax issue § Impact

  16. Slide 16: P&L Major Items – Net Investment Income

    6M 2008 P&L Major Items – Net Investment Income One-off gains balanced by market downturn (€mn) 16 Net Investment Income § Increase in Group Net Investment Income by 8.1 11.8% to € 618.7mn influenced mainly by 11.1 122.5 63.3 - widening of credit spreads, share prices and by Other one-off gains from

  17. Slide 17: Investment Split

    6M 2008 Investment Split Prudent investment policy paying off 17 Investment policy Portfolio Overview Alternative Inv. Affiliated § VIG follows a conservative Companies ~ 1% Loans ~ 5% investment policy throughout ~ 6% market cycles § VIG has no US-subprime investments Real Estate Bonds ~ 16% ~ 65%

  18. Slide 18: Financial Targets

    Financial Targets Targets remain in place 18 VIG’s Financial Targets Comments Premium Target for 2011: > EUR 12bn § Majority of GWP to come from CEE region by 2011 Profit before tax targets in € mn § Acquisition of s Versicherung expected to be CAGR: ~25% ~1,050 earnings accretive within the budgeti

  19. Slide 19: Appendix

    Vienna Insurance Group- 6M 2008 results Appendix

  20. Slide 20: P&L – Business Segments: Property & Casualty

    6M 2008 P&L – Business Segments Property & Casualty, IFRS (€mn) 20 6M 2008 6M 2007 +/-% 1. Gross written premiums 2,403.8 1,976.2 21.6 2. Net earned premiums 1,690.1 1,331.9 26.9 3. Net investment income 154.2 93.3 65.3 4. Other income 19.2 11.9 60.9 Total income 1,863.5 1,437.2 29.7 6. Expenses for

  21. Slide 21: P&L – Business Segments: Life

    6M 2008 P&L – Business Segments Life, IFRS (€mn) 21 6M 2008 6M 2007 +/-% 1. Gross written premiums 1,653.1 1,362.0 21.4 2. Net earned premiums 1,625.5 1,344.3 20.9 3. Net investment income 458.3 445.8 2.8 4. Other income 11.5 8.7 31.5 Total income 2,095.2 1,798.8 16.5 6. Life benefits -1,701.0 -1,42

  22. Slide 22: P&L – Business Segments: Health

    6M 2008 P&L – Business Segments Health, IFRS (€mn) 22 6M 2008 6M 2007 +/-% 1. Gross written premiums 158.2 155.0 2.1 2. Net earned premiums 155.7 152.9 1.8 3. Net investment income 6.2 14.1 -56.0 4. Other income 0.0 0.0 0.0 Total income 161.9 166.9 -3.0 6. Expenses for claims incurred -139.1 -135.3

  23. Slide 23: P&L - Split by Regions (I)

    6M 2008 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 23 Austria Czech Republic 6M 2008 6M 2007 +/-% 6M 2008 6M 2007 +/-% 1. Gross written premiums 2,120.4 1,957.7 8.3 691.0 577.1 19.7 2. Net earned premiums 1,757.8 1,611.2 9.1 542.0 445.8 21.6 3. Net investment income 488.1 478.7 2.0 23.

  24. Slide 24: P&L - Split by Regions (II)

    6M 2008 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 24 Slovakia Poland Romania 6M 2008 6M 2007 +/-% 6M 2008 6M 2007 +/-% 6M 2008 6M 2007 +/-% 1. Gross written premiums 297.5 243.8 22.1 393.9 247.6 59.1 360.5 192.3 87.5 2. Net earned premiums 245.7 189.9 29.4 361.4 216.3 67.1 289.6 139.

  25. Slide 25: P&L - Split by Regions (III)

    6M 2008 P&L - Split by Regions (III) Regional segments, IFRS (€mn) 25 Other CEE Other TOTAL 6M 2008 6M 2007 +/-% 6M 2008 6M 2007 +/-% 6M 2008 6M 2007 +/-% 1. Gross written premiums 239.2 147.8 61.8 112.7 126.8 -11.1 4,215.1 3,493.1 20.7 2. Net earned premiums 178.5 114.3 56.2 96.4 112.0 -13.9 3,471.

  26. Slide 26: Results by Country

    6M 2008 Results by Country IFRS (€mn) 26 Non-Life Life Total Profit before Tax Combined Ratio 6M 2008 6M 2007 6M 2008 6M 2007 6M 2008 6M 2007 6M 2008 6M 2007 6M 2008 6M 2007 Austria 1,105.9 1,062.0 1,014.4 895.7 2,120.4 1,957.7 154.5 138.5 92.4% 94.3% Czech Rep. 520.5 442.3 170.5 134.8 691.0 577.1 4

  27. Slide 27: Change in Group Shareholders' Equity

    Change in Group Shareholders‘ Equity IFRS 27 1.1. - 30.06.2008 1.1. - 30.06.2007 Equity as of 1 January 2,615,563 2,283,208 Currency Changes 55,336 -1,957 Changes to consolidation 39,270 39,396 Capital Increase 1,343,078 - Unrealised Gains and Losses on financial -76,857 -69,667 instruments availabl

  28. Slide 28: Life Insurance Premium Split

    Life Insurance Premium Split IFRS (€mn) 28 Premiums written - direct business 6M 2008 6M 2007 +/- % Regular premiums 926.9 880.5 5.3% Single premiums 723.7 480.3 50.7% Total premiums written - direct business 1,650.6 1,360.8 21.3% thereof: Policies with profit participation 936.9 783.4 19.6% Policie

  29. Slide 29: Q2 2008 Income Statement

    Q2 2008 Income Statement IFRS (€mn) 29 Q2 2008 Q2 2007 +/-% 1. Gross written premiums 1,903.9 1,474.8 29.1 2. Net earned premiums 1,734.5 1,364.8 27.1 3. Net investment income 443.1 347.9 27.4 4. Other income 13.2 11.8 12.1 Total income 2,190.8 1,724.4 27.0 6. Expenses for claims incurred -1,553.2 -

  30. Slide 30: Exchange Rates

    6M 2008 Exchange Rates National currency unit per EUR 30 6M 2008 6M 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 7.2365 7.2556 7.3035 7.3576 Liechtenstein EUR/CHF 1.6056 1.6114 1.6553 1.6318 Poland EUR/PLN 3.3

  31. Slide 31: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 128,000,000 31 Shareholder Structure ~ 29 % Free Float ~71 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  32. Slide 32: Shareholder Structure (II)

    Shareholder Structure (II) Total number of shares 128,000,000 32 Free Float Geographical Split ~11% ~28 % Others Austria ~21% Continental Europe ~22% North America ~18% UK & Ireland

  33. Slide 33: Contact Details

    Contact Details Investor Relations 33 Wiener Städtische Versicherung AG 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

  34. Slide 34: Disclaimer

    Disclaimer 34 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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