Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — 9M 2017 Earnings Presentation
49 slides from Vienna Insurance's earnings presentation, Nov 29, 2017
Slide 1: Vienna Insurance Group 9M 2017 Results Presentation
Vienna Insurance Group 9M 2017 Results Presentation Vienna, 29 November 2017 Overview Developments 9M 2017 Appendix & Main Regions
Slide 2: 9M 2017 Results conference call
9M 2017 Results conference call Presenting team and topics Presenting team: Martin Simhandl, CFO Judit Havasi, Member of the Managing Board Peter Höfinger, Member of the Managing Board Topics: Overview p. 3 Appendix & Main Regions p. 17 Developments 9M 2017 p. 4 Note: Rounding differences may occur
Slide 3: Overview of the 9M 2017 results
Overview of the 9M 2017 results Another quarter with solid developments €7,153mn GWP up 2.7% y-o-y Growth in overall current premium business: +5.6% GWP CEE premium growth: +8.7%; more than 50% of premiums deriving from CEE PBT increased by 9.9% y-o-y €331.2mn PBT in CEE up 12.4% y-o-y; more than 60
Slide 4: Developments 9M 2017
Overview Developments 9M 2017 Appendix (incl. Main Regions) Note: Rounding differences may occur when rounded amounts or percentages are added up. Overview Developments 9M 2017 Appendix & Main Regions
Slide 5: Overall premium growth of 2.7%
Overall premium growth of 2.7% Overview of premiums by segments (I) Gross written premiums (€mn; y-o-y change) 9M16 9M17 -3.1% 3,107.4 3,009.6 +4.3% +7.5% +9.5% 1,156.7 1,206.5 -4.7% 547.9 589.2 616.5 675.2 391.8 373.4 Austria Czech Republic Slovakia Poland Romania Austria: premium decrease driven b
Slide 6: Positive CEE premium development
Positive CEE premium development Overview of premiums by segments (II) 9M16 9M17 Gross written premiums (€mn; y-o-y change) +9.4% -15.2% +129.4% 263.1 269.4 239.7 +6.1% 240.4 -3.7% 228.5 +10.9% 162.0 171.8 160.7 154.7 119.6 104.5 107.8 The Baltic Hungary Bulgaria Turkey/ Remaining CEE Other Georgia
Slide 7: Solid premium development with ongoing life single premium reduction
Solid premium development with ongoing life single premium reduction Gross written premiums (€mn; y-o-y change) MTPL Casco Other property Total premiums +3.7% +12.5% +5.5% +2.7% 1,002 1,039 811 2,957 3,119 7,153 721 6,962 1,039 MTPL 1,002 Casco 721 811 9M16 9M17 9M16 9M17 9M16 9M17 Other Property 2,
Slide 8: Group PBT of € 331.2mn up by 9.9% y-o-y
Group PBT of € 331.2mn up by 9.9% y-o-y Overview of profits by segments (I) Profit before taxes (€mn; y-o-y change) 9M16 9M17 -0.4% +2.2% 114.1 113.7 103.4 105.7 +0.7% +79.0% 39.6 39.9 +39.0% 31.0 17.3 6.4 8.9 Austria Czech Republic Slovakia Poland Romania Austria: better technical result in P&C mor
Slide 9: Double-digit profit growth in CEE
Double-digit profit growth in CEE Overview of profits by segments (II) Profit before taxes (€mn; y-o-y change) 9M16 9M17 +21.8% +6.2% 20.3 16.7 +7.5% +0.3% 11.6 12.4 +24.9% 5.7 6.9 6.9 5.3 2.8 3.5 n.a. -1.2 -7.8 The Baltic* Hungary Bulgaria Turkey/ Remaining CEE Other Georgia markets The Baltic: sig
Slide 10: Combined ratio (P&C) at 97.3%
Combined ratio (P&C) at 97.3% Mixed picture for CoR developments P&C Combined ratio development P&C CoR 9M y-o-y regional development (net, %) 99.3 AT -2.3%p 97.9 97.3 96.9 96.9 97.3 97.0 92.9 30.5 30.4 31.9 31.3 30.5 CZ +3.9%p 96.8 95.3 SK +0.6%p 95.8 67.4 66.9 64.9 65.6 66.8 100.7 PL -6.0%p 94.7 1
Slide 11: Overview of investments and bond portfolio
Overview of investments and bond portfolio No material changes in 9M 2017 9M 2017: Total €37.2bn Bond portfolio by rating1 Other 5% 5% 6.7% 17% 1.3% BBB 19% 7.1% 0.0% Real Estate total 15.5% A 41% 44% 5.8% AA 24% 23% AAA 10% 10% 9.7% 12M16 9M17 4.3% 65.2% Bond portfolio by issuer Corporates 18% 19%
Slide 12: Financial result impacted by fully consolidated housing societies
Financial result* impacted by fully consolidated housing societies Adjusted for housing societies, current income decreased by ~4% Income Total in € '000 9M 2017 9M 2016 +/-% Current income 1,020,810 848,225 20.3 Overall financial result up by €28.9mn, including impact Income from appreciations 16,4
Slide 13: Equity increase largely driven by profits
Equity increase largely driven by profits Change in Group Shareholders’ Equity (€mn) +3% 38 -9 5,882 2 266 -126 5,711 Equity as of 12M16 Profit for the period Currency changes AFS unrealised Dividend payment Other Equity as of 9M17 gains and losses Since September 2016 full consolidation of Austrian
Slide 14: Solvency ratio of 225% at 9M 2017
Solvency ratio of 225% at 9M 2017 Solvency ratio calculated at the level of stock-listed VIG 225% 195% 9M 2017 YE 2016 in EUR mn 6,636 7,821 3,411 3,479 Solvency II SCR Solvency II SCR Own funds Own funds Calculation based on Partial Internal Model (PIM), including volatility adjustment Overview Dev
Slide 15: Solvency ratio target range for stock-listed VIG
Solvency ratio target range for stock-listed VIG Management targets a range between 170% and 230% Solvency ratio • Increase growth efforts, higher investments, >230% >230% re-risking, etc. 230% Target range • Comfort zone 170% Solvency ratio • Active mid- and long-term risk management <170% measures
Slide 16: Profitable growth remains key focus of VIG
Profitable growth remains key focus of VIG Executive summary Implementation and roll-out of Agenda 2020 projects Focus on optimisation of business model, digitisation and growth in health and SME business Project with bank insurance partner Erste Group ongoing; decision on mergers in Austria, Hungar
Slide 17: Appendix (incl. Main Regions)
Overview Developments 9M 2017 Appendix (incl. Main Regions) Note: Rounding differences may occur when rounded amounts or percentages are added up. Overview Developments 9M 2017 Appendix & Main Regions
Slide 18: Austria: Overall PBT up 2.2% to €105.7mn
Austria: Overall PBT up 2.2% to €105.7mn CoR improved y-o-y to 97.0% GWP development (€mn) P&L: P&C business (€mn) -3.1% 9M17 Y-o-Y 3,107 Underwriting and financial result 68.9 77.6% 3,010 MTPL 254 Other non-technical result -7.1 n.a. 253 Casco 211 221 Result (pre tax) 61.8 58.5% Claims ratio 68.6%
Slide 19: Czech Republic: overall PBT slightly decreased
Czech Republic: overall PBT slightly decreased (-0.4%) despite strong development in life CoR increased to 96.8% driven by higher claims expenses GWP development (€mn) P&L: P&C business (€mn) +4.3% 9M17 Y-o-Y 1,206 Underwriting and financial result 38.4 -21.7% 1,157 Other non-technical result -2.8 2
Slide 20: Slovakia: premiums up 7.5%, PBT overall stable
Slovakia: premiums up 7.5%, PBT overall stable Positive life development offset decreased P&C result GWP development (€mn) P&L: P&C business (€mn) +7.5% 9M17 Y-o-Y 589 Underwriting and financial result 17.1 -8.2% 548 Other non-technical result -0.6 -42.3% 109 MTPL 101 Result (pre tax) 16.4 -6.1% Cla
Slide 21: Poland: excellent top and bottom-line development
Poland: excellent top and bottom-line development CoR further improved to 94.7% GWP development (€mn) P&L: P&C business (€mn) +9.5% 9M17 Y-o-Y 675 Underwriting and financial result 24.7 74.6% 617 Other non-technical result -1.9 >100% 134 Result (pre tax) 22.8 63.9% MTPL 108 Claims ratio 65.1% -5.0%p
Slide 22: Romania: MTPL-driven premium decrease
Romania: MTPL-driven premium decrease; CoR improvement supported operating result Overall PBT up 39%; CoR again below 100% GWP development (€mn) P&L: P&C business (€mn) 9M17 Y-o-Y -4.7% 392 Underwriting and financial result 7.9 >100% 373 Other non-technical result -10.7 >100% Result (pre tax) -2.8 n
Slide 23: Premium development in new segments (I)
Premium development in new segments (I) The Baltic GWP development (€mn) Hungary GWP development (€mn) +129.4% +6.1% 240 162 172 MTPL MTPL 11 17 74 12 13 Casco Casco 42 44 42 Other Property Other Property 105 4 6 49 Health Health 24 59 65 11 Life regular Life regular 13 12 27 31 36 Life single Life
Slide 24: Premium development in new segments (II)
Premium development in new segments (II) Remaining CEE GWP development (€mn) Other markets GWP development (€mn) +9.4% -15.2% 263 269 240 MTPL 66 229 Other Property 81 63 Casco 32 87 Other Property 29 Life regular 55 79 Health 70 56 Life regular 6 9 45 Life single 134 45 86 Life single 28 31 9M16 9M
Slide 25: Key financials
9M 2017 Key financials Overview of KPIs Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 288 97.9 220 215 97.3 97.3 97.3 n.a. 2015 2016 9M16 9M17 2015* 2016 9M16 9M17 EPS1 (€) ROE after tax and minorities (%) 7.3 7.3 7.0 2.16 2.17 2.15 n.a. n.a. 2015* 2016 9M16 9M17 2015* 2016 9M16
Slide 26: Income statement
9M 2017 Income statement IFRS (€mn) €mn 9M 2017 9M 2016 +/-% Gross premiums written 7,152.6 6,961.8 2.7 Net earned premiums 6,325.8 6,158.9 2.7 Financial result1 732.1 703.2 4.1 Other income 131.7 122.8 7.3 Total income 7,189.6 6,984.9 2.9 Expenses for claims and insurance benefits -5,167.8 -5,091.5
Slide 27: Balance sheet
9M 2017 Balance sheet IFRS (€mn) €mn 30.09.2017 31.12.2016 +/-% Intangible assets 2,047 2,055 -0.3 Investments 35,645 34,646 2.9 Unit- and index-linked investments 8,919 8,550 4.3 Reinsurers’ share in underwriting provisions 1,147 985 16.5 Receivables 1,571 1,460 7.7 Tax receivables and advance paym
Slide 28: P&L by segment (I)
9M 2017 P&L by segment (I) IFRS (€mn) Austria Czech Republic Slovakia €mn 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% Gross premiums written 3,009.6 3,107.4 -3.1 1,206.5 1,156.7 4.3 589.2 547.9 7.5 Net earned premiums 2,380.3 2,481.3 -4.1 896.6 861.5 4.1 486.3 444.5 9.4 Financial
Slide 29: P&L by segment (II)
9M 2017 P&L by segment (II) IFRS (€mn) Poland Romania The Baltic €mn 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% Gross premiums written 675.2 616.5 9.5 373.4 391.8 -4.7 239.7 104.5 >100 Net earned premiums 541.4 502.7 7.7 278.2 253.4 9.8 179.0 80.8 >100 Financial result1 24.2 26.8
Slide 30: P&L by segment (III)
9M 2017 P&L by segment (III) IFRS (€mn) Hungary Bulgaria Turkey/Georgia €mn 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% Gross premiums written 171.8 162.0 6.1 119.6 107.8 10.9 154.7 160.7 -3.7 Net earned premiums 121.8 117.3 3.8 83.1 73.8 12.6 76.9 75.8 1.4 Financial result1 4.9 5
Slide 31: P&L by segment (IV)
9M 2017 P&L by segment (IV) IFRS (€mn) Remaining CEE Other markets €mn 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% Gross premiums written 263.1 240.4 9.4 228.5 269.4 -15.2 Net earned premiums 183.8 166.3 10.5 196.0 239.0 -18.0 Financial result1 20.1 26.2 -23.4 15.4 13.6 12.7 Other income 10.6 3.6 >100
Slide 32: P&L by segment (V)
9M 2017 P&L by segment (V) IFRS (€mn) Central Functions Consolidation TOTAL €mn 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% Gross premiums written 1,068.1 1,019.0 4.8 -946.8 -922.5 n.a. 7,152.6 6,961.8 2.7 Net earned premiums 901.2 855.3 5.4 1.3 7.3 n.a. 6,325.8 6,158.9 2.7 Financ
Slide 33: Financial result by segment (I)
9M 2017 Financial result by segment (I) IFRS (€ '000) Income Austria Czech Republic Slovakia Poland in € '000 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 Current income 601,244 610,886 79,484 76,992 33,143 32,879 26,357 23,455 Income from appreciations 3,812 3,859 3,059 2,038 1,9
Slide 34: Financial result by segment (II)
9M 2017 Financial result by segment (II) IFRS (€ '000) Income Romania The Baltic Hungary Bulgaria in € '000 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 Current income 12,452 10,777 5,515 3,831 5,653 6,413 17,902 16,790 Income from appreciations 114 1,309 630 478 0 0 803 1,148 of
Slide 35: Financial result by segment (III)
9M 2017 Financial result by segment (III) IFRS (€ '000) Income Turkey/Georgia Remaining CEE Other markets in € '000 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 Current income 8,432 6,556 27,026 28,246 15,855 15,390 Income from appreciations 1,263 1,642 727 149 34 3 of which reduction in impairme
Slide 36: Financial result by segment (IV)
9M 2017 Financial result by segment (IV) IFRS (€ '000) Income Central Functions Consolidation Total in € '000 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 Current income 271,051 91,906 -43,358 -43,659 1,060,756 880,462 Income from appreciations 159 32 0 0 16,461 14,625 of which reduction in impai
Slide 37: Development of P&C business according to VAG
9M 2017 development of P&C business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 9M 2017 9M 2016 +/-% Overall result for direct business Gross direct premiums written 3,954.94 3,716.36 6.4 Gross direct 306.68 345.08 -11.1 Underwriting result 219.72 301.77 -27.2 Financial resul
Slide 38: Development of life business according to VAG
9M 2017 development of life business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 9M 2017 9M 2016 +/-% Overall result for direct business Gross direct premiums written 2,704.88 2,818.47 -4.0 Gross direct 257.33 222.37 15.7 Underwriting result 0.00 0.00 0.00 Financial result 0.
Slide 39: Development of health business according to VAG
9M 2017 development of health business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 9M 2017 9M 2016 +/-% Overall result for direct business Gross direct premiums written 345.36 309.29 11.7 Gross direct 33.37 35.30 -5.4 Underwriting result 0.00 0.00 0.00 Financial result 0.00 0
Slide 40: Premiums by business lines and country (I)
9M 2017 Premiums by business lines and country (I) IFRS (€mn) GWP MTPL GWP Casco GWP Other property 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% Austria 253.2 253.6 -0.2% 221.4 210.9 5.0% 1,056.5 1,035.8 2.0% Czech Republic 208.8 199.7 4.5% 172.3 156.6 10.0% 343.6 317.5 8.2% Slovak
Slide 41: Premiums by business lines and country (II)
9M 2017 Premiums by business lines and country (II) IFRS (€mn) GWP Life regular GWP Life single GWP Health 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% Austria 932.4 936.7 -0.5% 244.5 376.4 -35.0% 301.7 294.0 2.6% Czech Republic 422.7 395.5 6.9% 49.1 77.3 -36.4% 9.9 10.1 -2.2% Slov
Slide 42: Country overview GWP / PBT / CoR
9M 2017 Country overview GWP / PBT / CoR IFRS (€mn) GWP Total Profit before taxes Combined Ratio net 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-% 9M 2017 9M 2016 +/-pp Austria 3,009.6 3,107.4 -3.1% 105.7 103.4 2.2% 97.0% 99.3% -2.3 Czech Republic 1,206.5 1,156.7 4.3% 113.7 114.1 -0.4% 96.8% 92.9% 3.9 S
Slide 43: Q3 2017 – Income statement
Q3 2017 – Income statement IFRS (€mn) €mn Q3 2017 Q3 2016 +/-% Gross premiums written 2,180.2 2,033.7 7.2 Net earned premiums 2,106.7 1,967.3 7.1 Financial result1 243.7 253.8 -4.0 Other income 71.9 18.9 >100 Total income 2,422.3 2,239.9 8.1 Expenses for claims and insurance benefits -1,773.1 -1,624
Slide 44: P&C claims and cost ratio details
9M 2017 P&C claims and cost ratio details Claims ratio 9M y-o-y (net, %) Remarks 9M16 9M17 Austria: claims ratio down in Wiener Städtische and Donau Versicherung -2.0 +4.2 -5.0 -1.2 +0.7 Czech Republic: disproportionately high claims 70.6 68.6 70.1 65.1 expenses in other property and MTPL 61.6 65.8
Slide 45: Exchange rates
9M 2017 – Exchange rates Balance Sheet: period-end exchange rate / P&L: average exchange rate 2017 2016 Balance Sheet Balance Sheet Country Currency P&L EUR P&L EUR EUR EUR Albania EUR/ALL 133.7000 134.3349 135.2300 137.7784 Belarus EUR/BYN 2.3141 2.1293 2.0450 2.2360 Bosnia EUR/BAM 1.9558 1.9558 1.
Slide 46: VIG share (I)
VIG share (I) Current analyst recommendation split Share price development 9M 2017 Sell High EUR 26.200 Low EUR 21.590 Buy Price as of 29 Sept. EUR 25.010 Market cap. EUR 3.20bn Development YTD % +17.42 Hold VIG compared to ATX and Stoxx Europe 600 Ins. 120 110 100 90 Jan-17 Feb-17 Mar-17 Apr-17 May
Slide 47: 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 48: Contact details
Contact details Investor Relations Financial calendar 2018* Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna 22 Mar. 2018 Preliminary results for the E-Mail: investor.relations@vig.com financial year 2017 www.vig.com/ir 18 Apr. 2018 Results and Annual Report Nin
Slide 49: 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
Vienna Insurance Group — 9M 2017 Earnings Presentation on 6ix