Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — Q1 2006 Earnings Presentation

25 slides from Vienna Insurance's earnings presentation, May 22, 2006

  1. Slide 1: Vienna Insurance Group Q1 2006 results

    Vienna Insurance Group Q1 2006 results

  2. Slide 2: Recent developments

    Recent developments 2 ƒ All CEE markets continue to feature positive results after reaching break-even for the first time in 2005 ƒ Acquisition of 40% stake in Kardan Financial Services closed in April – Kardan insurance companies will be 40% proportionally consolidated as of Q2 2006 ƒ Acquisition o

  3. Slide 3: Largest CEE Insurance Play - Update

    Largest CEE Insurance Play - Update Only Vienna Insurance Group widely captures CEE potential 3 CEE Premiums (2004/2005) as % of Total Group Premiums 28,7% VIG 2005: 31,1% 10,1% UNIQA 2005: 10,2% VIG´s unique share of CEE 3,0% business growing fastest – in Allianz P&C CEE share already at 2005: 3,3%

  4. Slide 4: Q1 2006 Highlights (I)

    Q1 2006 Highlights (I) Continued earnings growth 4 GWP Profit before Tax 22.1% 5,008 240 15.5% 54.2% 4,101 3,608 3,124 11,6% 156 116.3% 31.5% 1,570 1,752 73 51 55 23 2002 2003 2004 2005 3M-05 3M-06 2002 2003 2004 2005 3M-05 3M-06 IFRS Austrian HGB IFRS Austrian HGB RoE before Tax Net Profit after Ta

  5. Slide 5: Q1 2006 Highlights (II)

    Q1 2006 Highlights (II) 5 Net Combined Ratio EPS 2.27 2.22 108.28 100.65 99.8 97.9 98.3 1.84 97.04 94.3 1.41 0.2 0.28 2001 2002 2003 2004 2005 3M-05 3M-06 2002 2003 2004 2005 3M-05 3M-06 Austrian HGB IFRS Austrian HGB IFRS * Subject to approval by AGM

  6. Slide 6: Q1 2006 results: P&L and Balance Sheet

    Vienna Insurance Group – Q1 2006 results P&L and Balance Sheet

  7. Slide 7: Q1 2006 Income Statement

    Q1 2006 Income Statement IFRS (€m) 7 3M 2006 3M 2005 +/- % 1. Gross written premiums 1,752.2 1,570.0 11.6 2. Net earned premiums 1,247.4 1,111.6 12.2 3. Net investment income1 162.0 132.3 22.5 4. Other income 15.8 9.5 66.5 Total income 1,425.2 1,253.4 13.7 6. Expenses for claims incurred -1,049.0 -9

  8. Slide 8: Q1 2006 Balance Sheet

    Q1 2006 Balance Sheet IFRS (€m) 8 31-Mar-06 31-Dec-05 +/- % Intangible assets 315 317 -0.6 Total investments 15,555 15,163 2.6 Unit- and index-linked investments 1,945 1,762 10.4 Reinsurers’ share in technical provisions 949 840 13.0 Receivables 1,010 857 17.8 Deferred tax assets 15 12 22.6 Other as

  9. Slide 9: Major Items – Gross Written Premiums

    Q1 2006 P&L Major Items – Gross Written Premiums Double digit growth (€m) 9 67.6 108.1 ƒ Group GWP increased by 11.6% to € 1,752mn. 547.2 ƒ Austria: total GWP up 10.4% to reach €1.1bn. Life up 431.6 Other 13.8% at 480.8mn and non-life up 8.9% at 579.0mn CEE Austria ƒ In the Czech Republic GWP increa

  10. Slide 10: VIG's GWP Split by Region

    VIG’s GWP Split by Region Shift from Austria to CEE 10 GWP by Geography Other Other Other CEE 6.9% Other CEE 3.9% 5.0% 8.5% Slovakia Austria Slovakia Austria 7.1% 65.6% 6.7% 64.9% Czech Czech Republic Republic 15.4% 16.0% 3M 2005 Total: € 1.57bn 3M 2006 Total: € 1.75bn

  11. Slide 11: Major Items – Expenses for Claims Incurred

    Q1 2006 P&L Major Items – Expenses for Claims Incurred Seasonal effects on loss ratio (€m) 11 ƒ Overall loss ratio in P&C increased by 3.2% as a result of seasonal effects, combined ratio still well below 100% ƒ Austria saw extraordinary damage from snow pressure ƒ In the Czech Republic the claims i

  12. Slide 12: Major Items – Operating Expenses

    Q1 2006 P&L Major Items – Operating Expenses Favourable impact of cost management (€m) 12 ƒ Favourable trend in overall costs ƒ Austria (despite group holding function of Wiener Städtische AG) and the Czech Republic featured a benign expense development based on recent cost cutting measures ƒ Slovak

  13. Slide 13: Major Items – Net Investment Income

    Q1 2006 P&L Major Items – Net Investment Income Realisation of gains (€m) 13 4.5 3.9 18.7 13.7 Other ƒ Increase in Net Investment Income by 22.4% CEE mainly as a result of realisation of gains in Austria shares in Austria 114.7 138.7 ƒ Stable trend in the Czech Republic and Slovakia 3M-05 3M-06 ƒ In

  14. Slide 14: Financial Targets for WSV Group

    Financial Targets for WSV Group Refocused targets for 2006 and 2007 14 2006T 2007T Profit before tax ~ €290million ~ €350 million Net combined ratio <100% <100% RoE before tax1 ~16% 17%-18% Payout ratio (as % of net income) >30% >30% 1 incl. Dec. 2005 capital increase

  15. Slide 15: Q1 2006 results: Appendix

    Vienna Insurance Group – Q1 2006 results Appendix

  16. Slide 16: Q1 2006 P&L – Business Segments (Property & Casualty)

    Q1 2006 P&L – Business Segments Property & Casualty, IFRS (€m) 16 3M 2006 3M 2005 +/- % 1. Gross written premiums 1,026.4 898.2 14.3 2. Net earned premiums 548.6 452.1 21.3 3. Net investment income 23.7 16.3 45.6 4. Other income 6.3 5.3 17.9 Total income 578.5 473.7 22.1 6. Expenses for claims incur

  17. Slide 17: Q1 2006 P&L – Business Segments (Life)

    Q1 2006 P&L – Business Segments Life, IFRS (€m) 17 3M 2006 3M 2005 +/- % 1. Gross written premiums 648.1 596.2 8.7 2. Net earned premiums 624.5 587.4 6.3 3. Net investment income 133.9 111.2 20.4 4. Other income 9.5 4.2 >100.0 Total income 768.0 702.8 9.3 6. Expenses for claims incurred -620.7 -573.

  18. Slide 18: Q1 2006 P&L – Business Segments (Health)

    Q1 2006 P&L – Business Segments Health, IFRS (€m) 18 3M 2006 3M 2005 +/- % 1. Gross written premiums 77.7 75.6 2.8 2. Net earned premiums 74.2 72.1 3.0 3. Net investment income 4.5 4.8 -8.0 4. Other income 0.0 0.0 0.0 Total income 78.7 77.0 2.3 6. Expenses for claims incurred -59.7 -59.5 0.4 7. Oper

  19. Slide 19: Q1 2006 P&L - Split by Regions (I)

    Q1 2006 P&L - Split by Regions (I) Regional segments, IFRS (€m) 19 Austria Czech Republic Slovakia 3M 2006 3M 2005 3M 2006 3M 2005 3M 2006 3M 2005 1. Gross written premiums 1,137.4 1,030.4 281.0 241.0 116.8 111.6 2. Net earned premiums 827.6 763.9 189.6 144.3 67.8 57.3 3. Net investment income 138.7

  20. Slide 20: Q1 2006 P&L - Split by Regions (II)

    Q1 2006 P&L - Split by Regions (II) Regional segments, IFRS (€m) 20 Other CEE Other TOTAL 3M 2006 3M 2005 3M 2006 3M 2005 3M 2006 3M 2005 1. Gross written premiums 149.3 79.0 67.6 108.1 1,752.2 1,570.0 2. Net earned premiums 102.9 50.0 59.5 96.2 1,247.4 1,111.6 3. Net investment income 6.1 1.6 4.5 3

  21. Slide 21: Q1 2006 Exchange Rates

    Q1 2006 Exchange Rates 21 3M 2006 3M 2005 Country Curr. Balance Sheet P&L Balance Sheet P&L Bulgaria BGN 0,511300 0,511300 0,511274 0,511274 Croatia HRK 0,136203 0,136192 0,135245 0,135245 Liechtenstein CHF 0,632871 0,641437 0,647626 0,647626 Poland PLN 0,253646 0,260783 0,237908 0,237908 Romania RO

  22. Slide 22: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 105,000,000 22 Shareholder Structure Split Free Float 39.6% Retail Investors 1.6% 28.7 % Employees Free Float 58.8% Institutional 71.3 % Investors Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  23. Slide 23: Shareholder Structure (II)

    Shareholder Structure (II) 23 Geographical Split 0.8% 3.9% Others North America 5.8% UK & Ireland 83.1 % Austria 6.4% Continental Europe

  24. Slide 24: Contact Details

    Contact Details Investor Relations 24 Wiener Städtische Allgemeine Versicherung AG Schottenring 30, 1010 Vienna, Austria www.wienerstaedtische.at Vienna Stock Exchange: WST Reuters: WISV.VI Bloomberg: WST AV ƒ Thomas Schmee Tel. +43 (0)50 350 - 21900 t.schmee@staedtische.co.at ƒ Nina Higatzberger Te

  25. Slide 25: Disclaimer

    Disclaimer 25 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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