Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — Q1 2014 Earnings Presentation

41 slides from Vienna Insurance's earnings presentation, May 27, 2014

  1. Slide 1: 3M 2014 Results Presentation

    3M 2014 Results Presentation Conference call for the results of the first quarter 2014 Vienna, 27 May 2014

  2. Slide 2: Presenting team and topics

    Presenting team and topics  Presenting team  Topics  Martin Simhandl, CFO  3M 2014 Summary p. 3  Peter Höfinger, Member of the Managing  Financial Highlights p. 4 Board  P&L and Balance Sheet p. 9  Roland Gröll, Head of Group Finance and Accounting  Business Lines Segments p.12  Nina Higat

  3. Slide 3: A solid set of results in the first quarter

    A solid set of results in the first quarter All segments and markets with positive results SUMMARY Premiums of €2.7bn, up by 1.0% • Premiums excl. FX up by 2.9% • Remaining markets CEE premiums excl. FX up by 15.1% Like-for-like1 profit before taxes up 2.8% • PBT of €151.8mn, down by 4.7% • PBT in C

  4. Slide 4: Gross written premiums increased by 1.0%

    Gross written premiums increased by 1.0% FINANCIAL CEE Remaining markets premiums excl. FX bounced up by 15.1% HIGHLIGHTS  Gross written premiums (€mn; y-o-y chg.)  GWP regional split +1% y-o-y chg. 2,731 Austria 1,375 -1% 2,705 52 2 Health 101 103 Czech Republic 466 -2% -27 Slovakia 213 4% Life 1

  5. Slide 5: Profit before taxes in CEE up by 13.4%

    Profit before taxes in CEE up by 13.4% FINANCIAL For the first time since the financial crisis all markets with profits HIGHLIGHTS  Profit before taxes (€mn; y-o-y change)  PBT regional split y-o-y chg. -5% 11 Austria 56 -12% 159 152 Czech Republic 51 8% Health 17 -13 12 -5 Slovakia 9 2% Life 61 4

  6. Slide 6: Remaining markets further growing

    Remaining markets further growing FINANCIAL Overall strong development in 3M 2014 HIGHLIGHTS  GWP Remaining markets (€mn)  CoR Remaining markets (net, %) +18% -0.6%p 308 95.3 94.7 260 3M13 3M14 3M13 3M14  PBT Remaining markets (€mn)  Remarks +33%  Remaining markets premium up by 18.4% 14  PBT

  7. Slide 7: Restructuring efforts in Italy and Romania continue

    Restructuring efforts in Italy and Romania continue FINANCIAL Positive profit contribution from Romania in 3M 2014 HIGHLIGHTS  Reduction in Italian premiums (€mn)  Remarks -55% -63%  Restructuring as indicated in 4Q13 ongoing 52 38  Continuous reduction of Italian motor business  Overall Italia

  8. Slide 8: P&C: Romania and Italy still burden combined ratio

    P&C: Romania and Italy still burden combined ratio FINANCIAL Improving cost and claims ratio y-o-y HIGHLIGHTS  CoR development (net, %)  CoR 3M y-o-y countries development (net, %) -0.5pp AT 96.9 +3.0pp 99.8 96.9 96.4 90.9 CZ -5.5pp 85.4 SK 95.5 -0.4pp 3M13 95.1 Claims ratio 65.7 65.3 3M14 PL 96.1

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

    P&L and Balance Sheet Overview Vienna Insurance Group – 3M 2014 Results Please note: As of 1st January 2014 all Austrian housing societies that used to be fully consolidated are now considered at-equity.

  10. Slide 10: 3M 2014 – Income statement

    3M 2014 – Income statement P&L AND BALANCE IFRS (€mn) SHEET OVERVIEW €mn 3M 2014 3M 2013 +/-% Gross premiums written 2,731.1 2,705.2 1.0 Net earned premiums 2,212.6 2,198.9 0.6 1 Financial result 271.6 270.2 0.5 Other income 27.6 42.2 -34.8 Total income 2,511.7 2,511.3 0.0 Expenses for claims and in

  11. Slide 11: 3M 2014 – Balance sheet

    3M 2014 – Balance sheet P&L AND BALANCE IFRS (€mn) SHEET OVERVIEW €mn 31.03.2014 31.12.2013 +/-% Intangible assets 2,268 2,266 0.1 Investments 29,182 29,201 -0.1 Unit- and index-linked investments 6,819 6,707 1.7 Reinsurers’ share in underwriting provisions 1,104 1,028 7.4 Receivables 1,764 1,561 13

  12. Slide 12: Business Line Segments

    Business Line Segments Vienna Insurance Group – 3M 2014 Results

  13. Slide 13: 3M 2014 P&L – Property & Casualty

    3M 2014 P&L – Property & Casualty IFRS (€mn) MAIN SEGMENTS €mn 3M 2014 3M 2013 +/-% Gross premiums written 1,474.4 1,501.9 -1.8 Net earned premiums 979.1 1,020.5 -4.1 Financial result 60.2 47.7 26.3 Other income 17.1 23.2 -26.4 Total income 1,056.4 1,091.4 -3.2 Expenses for claims and insurance bene

  14. Slide 14: 3M 2014 P&L – Life

    3M 2014 P&L – Life IFRS (€mn) MAIN SEGMENTS €mn 3M 2014 3M 2013 +/-% Gross premiums written 1,154.1 1,102.6 4.7 Net earned premiums 1,132.4 1,079.8 4.9 Financial result 204.3 214.6 -4.8 Other income 10.5 19.0 -44.9 Total income 1,347.2 1,313.4 2.6 Expenses for claims and insurance benefits -1,111.3

  15. Slide 15: 3M 2014 P&L – Health

    3M 2014 P&L – Health IFRS (€mn) MAIN SEGMENTS €mn 3M 2014 3M 2013 +/-% Gross premiums written 102.6 100.7 1.9 Net earned premiums 101.0 98.6 2.4 Financial result 7.1 7.9 -9.4 Other income 0.0 0.1 -88.7 Total income 108.1 106.5 1.5 Expenses for claims and insurance benefits -83.1 -77.6 7.2 Acquisitio

  16. Slide 16: Regional Split

    Regional Split Vienna Insurance Group – 3M 2014 Results

  17. Slide 17: Austria – stable premium development

    Austria – stable premium development Italian branch office business of Donau still impacting CoR REGIONAL SPLIT  GWP for 3M 2014 (€mn)  P&C GWP direct business split 1 -0.7% MTPL 1,385 1,375 17% (21%) P&C 728 722 12% Casco (12%) Health 92 94 70% (67%) Life 565 559 Remaining 3M13 3M14  P&L: P&C bu

  18. Slide 18: Czech Republic – overall solid PBT of €51mn

    Czech Republic – overall solid PBT of €51mn GWPs adjusted for FX effects up by 5.2% REGIONAL SPLIT  GWP for 3M 2014 (€mn)  P&C GWP direct business split1 -2.0% 476 466 MTPL 28% P&C 264 236 (27%) 54% Remaining (55%) 18% Life 212 231 (18%) Casco 3M13 3M14  P&L: P&C business (€mn)  P&L: Life busine

  19. Slide 19: Slovakia – further profitable growth

    Slovakia – further profitable growth Sound premium development with 4.5% growth y-o-y REGIONAL SPLIT  GWP for 3M 2014 (€mn)  P&C GWP direct business split 1 +4.5% 204 213 Remaining 107 36% P&C 105 (35%) 42% MTPL (43%) Life 99 106 22% (21%) 3M13 3M14 Casco  P&L: P&C business (€mn)  P&L: Life busi

  20. Slide 20: Poland – highly competitive motor market

    Poland – highly competitive motor market Strong profit development in life REGIONAL SPLIT  GWP for 3M 2014 (€mn)  P&C GWP direct business split 1 -4.1% 269 258 MTPL 29% P&C 153 (29%) 148 47% Remaining (46%) 23% Life 115 109 (24%) Casco 3M13 3M14  P&L: P&C business (€mn)  P&L: Life business (€mn)

  21. Slide 21: Romania – discipline is key

    Romania – discipline is key Extensive restructuring showing first signs of improvement REGIONAL SPLIT  GWP for 3M 2014 (€mn)  P&C GWP direct business split 1 -18.6% 101 82 Remaining 33% (36%) 40% MTPL P&C 78 (31%) 69 27% Life 23 14 (33%) Casco 3M13 3M14  P&L: P&C business (€mn)  P&L: Life busine

  22. Slide 22: Remaining markets – very strong development

    Remaining markets – very strong development PBT from remaining CEE countries up by 35% in 3M 2014 REGIONAL SPLIT  GWP for 3M 2014 (€mn)  P&C GWP direct business split 1 +18.4% MTPL 308 19% 260 (20%) 169 P&C 165 17% 8 65% (18%) Casco (63%) Health 9 Remaining 131 Life 86 3M13 3M14  P&L: P&C busines

  23. Slide 23: Investments and Equity

    Investments and Equity Vienna Insurance Group – 3M 2014 Results

  24. Slide 24: 3M 2014 – Stable financial result

    3M 2014 – Stable financial result Additional interest expenses of ~€7mn for new subordinated bond INVESTMENTS Income P&C Life Health Total in € '000 3M 2014 3M 2013 3M 2014 3M 2013 3M 2014 3M 2013 3M 2014 3M 2013 Current income 65,436 74,110 202,091 206,103 10,423 10,501 277,950 290,714 Income from

  25. Slide 25: 3M 2014 – Investment split

    3M 2014 – Investment split Well diversified bond portfolio INVESTMENTS  3M 2014: Total € 29.9bn  Bond portfolio by rating1 Other 6% 5% 12% 13% BBB 7.5% 3.6% A 38% 37% 0.1% 11.0% AA 28% 29% AAA 16% 16% 6.0% YE 2013 3M 2014 3.8%  Bond portfolio by issuer 68.0% Corporates 13% 13% Financials 23% 22%

  26. Slide 26: 3M 2014 – Strong equity and solvency position

    3M 2014 – Strong equity and solvency position Shareholders’ equity increase driven by profit and unrealised gains EQUITY  Change in Group Shareholders’ Equity (€mn) +4% 5,020 120 87 2 2 5,207 -18 -2 -3 Equity as Profit for Currency AFS unrealised Changes in Dividend IAS19 At equity Equity as of YE

  27. Slide 27: Appendix

    Appendix Vienna Insurance Group – 3M 2014 Results

  28. Slide 28: 3M 2014 Key financials

    3M 2014 Key financials Overview APPENDIX  Net Profit after tax and minorities (€mn)  Combined Ratio (net, %) 407 426 96.8 96.7 100.6 96.4 96.9 96.4 235 118 124 118 2011 2012 2013 3M12 3M13 3M14 2011 2012 2013 3M12 3M13 3M14  EPS1 (€)  ROE before Taxes (%) 3.56 3.55 11.7 11.9 3.37 11.1 11.3 3.01

  29. Slide 29: 3M 2014 – Gross written premiums by region

    3M 2014 – Gross written premiums by region Overall premium increase of 1.0% y-o-y APPENDIX €mn GWP P&C GWP Life GWP Health GWP Total 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% Austria 721.6 728.2 -0.9% 559.4 564.8 -0.9% 94.3 91.6 3.0% 1,375.4 1,384.6 -0.7% Cz

  30. Slide 30: 3M 2014 P&L – Split by regions (I)

    3M 2014 P&L – Split by regions (I) Regional markets overview, IFRS (€mn) APPENDIX €mn Austria Czech Republic Slovakia 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% Gross premiums written 1,375.4 1,384.6 -0.7 466.4 475.9 -2.0 213.2 204.0 4.5 Net earned premiums 938.1 950.6 -1.3 361.7

  31. Slide 31: 3M 2014 P&L – Split by regions (II)

    3M 2014 P&L – Split by regions (II) Regional markets overview, IFRS (€mn) APPENDIX €mn Poland Romania Remaining 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% Gross premiums written 257.7 268.8 -4.1 82.4 101.2 -18.6 308.2 260.2 18.4 Net earned premiums 203.7 206.7 -1.5 46.4 82.1 -43.

  32. Slide 32: 3M 2014 P&L – Split by regions (III)

    3M 2014 P&L – Split by regions (III) Regional markets overview, IFRS (€mn) APPENDIX €mn Central Functions Consolidation TOTAL 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% Gross premiums written 359.2 354.8 1.3 -331.4 -344.2 n.a. 2,731.1 2,705.2 1.0 Net earned premiums 282.2 277.4 1

  33. Slide 33: 3M 2014 – Results by country (I)

    3M 2014 – Results by country (I) IFRS (€mn) APPENDIX €mn GWP P&C GWP Life GWP Health GWP Total 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-% Austria 721.6 728.2 -0.9% 559.4 564.8 -0.9% 94.3 91.6 3.0% 1,375.4 1,384.6 -0.7% Czech Rep. 235.8 264.1 -10.7% 230.6 211.

  34. Slide 34: 3M 2014 – Results by country (II)

    3M 2014 – Results by country (II) IFRS (€mn) APPENDIX €mn Profit before Taxes Net Combined Ratio 3M 2014 3M 2013 +/-% 3M 2014 3M 2013 +/-pp Austria 56.3 64.2 -12.2% 99.8% 96.9% 3.0 Czech Rep. 51.0 47.2 8.1% 85.4% 90.9% -5.5 Slovakia 9.4 9.3 1.5% 95.1% 95.5% -0.4 Poland 15.9 15.3 4.4% 97.8% 96.1% 1.7

  35. Slide 35: 3M 2014 – P&C Claims and cost ratio details

    3M 2014 – P&C Claims and cost ratio details APPENDIX  Claims ratio 3M y-o-y regional development (net, %)  Remarks for claims incurred 3M13 3M14  Austria: claims ratio up 4.5pp driven by Donau Versicherung -21.9 (Italian branch office business) +4.5 -4.1 -2.9  Czech Republic: decrease of 4.1pp d

  36. Slide 36: 3M 2014 – Life insurance premium split

    3M 2014 – Life insurance premium split IFRS (€mn) APPENDIX Premiums written - direct business 3M 2014 3M 2013 +/- % Regular premiums 605 619 -2.2% Single premiums 544 480 13.4% Total premiums written - direct business 1,149 1,099 4.6% thereof: Policies with profit participation 487 547 -10.8% Polici

  37. Slide 37: 3M 2014 – Exchange rates

    3M 2014 – Exchange rates APPENDIX 3M 2014 3M 2013 Balance Balance Country Curr. P & L EUR P & L EUR Sheet EUR Sheet EUR Albania EUR/ALL 140.2700 140.3884 139.9100 139.6668 Belarus EUR/BYR 13,570.0000 13,280.6667 11,110.0000 11,386.2222 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.95

  38. Slide 38: VIG Share (I)

    VIG Share (I) APPENDIX  Current analyst recommendation split  Share price development 1Q 2014 Sell Buy High EUR 38.670 Low EUR 33.800 Price as of 31 Mar EUR 35.790 Average daily volume EUR 3.1 mn Market cap. EUR 4.6 bn Development YTD % -1.2 Hold  VIG compared to ATX and MSCI Europe Insurance Ind

  39. Slide 39: VIG Share (II)

    VIG Share (II) APPENDIX  General information  Shareholder structure Number of common shares: 128mn Wiener Städtische Wechselseitiger ISIN: AT0000908504 Versicherungsverein - Listings: Vermögensverwaltung – Vienna Insurance Group Free Float Vienna – since 17 Oct. 1994 ~70 % ~30 % Prague – since 5

  40. Slide 40: Contact details

    Contact details Investor Relations APPENDIX  Financial calendar 2014  Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna Preliminary unconsolidated E-Mail: investor.relations@vig.com 29 Jan. 2014 premiums 2013 www.vig.com/ir 10 April 2014 Results and EV for the

  41. Slide 41: Disclaimer

    Disclaimer APPENDIX 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

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