Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — H1 2009 Earnings Presentation

35 slides from Vienna Insurance's earnings presentation, Aug 20, 2009

  1. Slide 1: V.I.G. – continuing with steady results

    V.I.G. – continuing with steady results 6M 2009 results telephone conference 20 August 2009

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics 2 Presenting Team Topics § Peter Hagen, Member of the § Financial Highlights p.3 Managing Board § P&L and Balance Sheet p.7 § Peter Höfinger, Member of the Managing Board § Appendix p.18 § Roland Gröll, Head of Group Accounting § Thomas Schmee, Head of Investor Relations

  3. Slide 3: Financial Highlights

    Vienna Insurance Group – 6M 2009 results Financial Highlights

  4. Slide 4: Highlights

    6M 2009 Highlights V.I.G. – showing a solid business performance 4 § EUR 230mn PBT – stable performance § Ongoing synergy projects § In a difficult economic period plus recently launched action V.I.G. focuses on profitable programme bear fruit growth - € ~ 40mn cost savings - 3% premium growth exclu

  5. Slide 5: Financial Highlights (I)

    6M 2009 Financial Highlights (I) HY results shaped by good operations and weaker capital markets 5 GWP Profit before Tax 541 7,899 6,912 437 5,882 0.9% -20.1% 321 288 4,215 4,251 3,493 215 230 2006 2007 2008 6M 07 6M 08 6M 09 2006 2007 2008 6M 07 6M 08 6M 09 IFRS IFRS Net Profit after Tax and Minori

  6. Slide 6: Financial Highlights (II)

    6M 2009 Financial Highlights (II) 6 EPS ROE before Tax (%) 3.72 * 18.0 3.41* 16.9 17.0* 2.98 3.06 2.81* 14.8 14.3* 2.48 10.6* 2006 2007 2008 6M 07 6M 08 6M 09 2006 2007 2008 6M 07 6M 08 6M 09 * Diluted for SPO 2008 IFRS * Diluted for SPO 2008 IFRS

  7. Slide 7: P&L and Balance Sheet Details

    Vienna Insurance Group – 6M 2009 results P&L and Balance Sheet Details

  8. Slide 8: Income Statement

    6M 2009 Income Statement IFRS (€mn) 8 6M 2009 6M 2008 +/-% 1. Gross premiums written 4,251.1 4,215.1 0.9 2. Net earned premiums 3,612.8 3,471.3 4.1 3. Financial result 471.6 618.7 -23.8 4. Other income 62.0 30.7 >100 Total income 4,146.4 4,120.7 0.6 6. Expenses for claims and insurance benefits -2,9

  9. Slide 9: Balance Sheet

    6M 2009 Balance Sheet IFRS (€mn) 9 6M 2009 YE 2008 +/- % Intangible assets 2,011 1,649 22.0 Investments 25,078 24,548 2.2 Unit- and index-linked investments 4,022 3,602 11.6 Reinsurers’ share in underwriting provisions 1,081 1,222 -11.6 Receivables 1,762 1,500 17.5 Deferred tax assets 137 131 4.3 Ot

  10. Slide 10: P&L Major Items – Gross Written Premiums (I)

    6M 2009 P&L Major Items – Gross Written Premiums (I) Premium development affected by weak CEE currencies (€mn) 10 GWP Non-life GWP Life Total FX development 6M 09 vs 6M 08 (vs. €; average exchange rates) 6M 2009 6M 2008 +/-% 6M 2009 6M 2008 +/-% 6M 2009 6M 2008 +/-% Austria 1,125.5 1,105.9 1.8% 1,05

  11. Slide 11: P&L Major Items – Gross Written Premiums (II)

    6M 2009 P&L Major Items – Gross Written Premiums (II) Stable premiums, supported by new consolidations1(€mn) 11 § Group GWP stable, reaching € 4,251mn § Austria: total GWP up 3.1% to reach € 2,185mn. Life up 4.5% at € 1,060mn, inclusion of s Versicherung offsets ongoing weak single 112.7 88.4 premiu

  12. Slide 12: P&L Major Items – Expenses for Claims Incurred

    6M 2009 P&L Major Items – Expenses for Claims Incurred Loss ratio up due to higher claims in CEE and floods in A, CZ 12 § Group loss ratio (net) at 65.1% (63.4% in 6M § Poland increasing by 9.7% pts to 63.9% due to 2008 ) increase of reserves as a consequence of legal changes § Austrian loss ratio h

  13. Slide 13: P&L Major Items – Operating Expenses

    6M 2009 P&L Major Items – Operating Expenses Cost ratio down as a result of savings programmes 13 § Group cost ratio (net) decreasing by 2.1% pts § Poland showing lower cost ratio at 35.4% to reach 30.4% (6M 08: 42.1%) thanks to lower administration costs and sales commissions § Cost ratio in Austri

  14. Slide 14: P&L Major Items – Financial Result

    6M 2009 P&L Major Items – Financial Result Sound financial result (€mn) 14 Income P&C Life Health Total in € '000 6M 2009 6M 2008 6M 2009 6M 2008 6M 2009 6M 2008 6M 2009 6M 2008 Current income 80,353 84,498 553,814 426,371 17,746 15,940 651,913 526,809 Income from appreciations 4,864 2,168 31,818 9,

  15. Slide 15: Investment Split

    6M 2009 Investment Split V.I.G. follows a prudent investment approach 15 Portfolio Overview Current Investment Strategy +2.2% € 25.0bn Cash & Deposits € 24.6bn ~ 4% Alternatives ~ 7% ~ 1% Further investments into high quality Affiliated Companies ~ 1% ~ 5% ~ 4% 1 sovereign bonds ~ 16% Loans ~ 19% ~

  16. Slide 16: Shareholders' Equity

    6M 2009 Shareholders’ Equity Shareholders’ equity supports strong capitalisation 16 Change in Group Shareholders’ Equity (€mn) 190.0 -141.8 4,488.8 250.0 51.7 4,138.8 -1.8 1.9 Increase of 8.5% in 6M 2009 Equity as of YE Currency Changes to Capital increase AFS unrealised Profit for the Dividend Equi

  17. Slide 17: Performance/Outlook

    Performance/Outlook Economic uncertainty and market volatility constrain forecasts 17 Development of HY profits vs. YE Outlook Profit before Taxes (€mn) 541 § Current economic forecasts do not show a sufficiently stable 437 picture. Thus management is not in a position to provide financial targets f

  18. Slide 18: Appendix

    Vienna Insurance Group – 6M 2009 results Appendix

  19. Slide 19: P&L – Business Segments (Property & Casualty)

    6M 2009 P&L – Business Segments Property & Casualty, IFRS (€mn) 19 6M 2009 6M 2008 +/-% 1. Gross premiums written 2,349.6 2,403.8 -2.3 2. Net earned premiums 1,734.2 1,690.1 2.6 3. Financial result 86.9 154.2 -43.7 4. Other income 38.6 19.2 >100 Total income 1,859.7 1,863.5 -0.2 6. Expenses for clai

  20. Slide 20: P&L – Business Segments (Life)

    6M 2009 P&L – Business Segments Life, IFRS (€mn) 20 6M 2009 6M 2008 +/-% 1. Gross premiums written 1,738.6 1,653.1 5.2 2. Net earned premiums 1,718.2 1,625.5 5.7 3. Financial result 379.5 458.3 -17.2 4. Other income 23.3 11.5 >100 Total income 2,121.1 2,095.2 1.2 6. Expenses for claims and insurance

  21. Slide 21: P&L – Business Segments (Health)

    6M 2009 P&L – Business Segments Health, IFRS (€mn) 21 6M 2009 6M 2008 +/-% 1. Gross premiums written 162.8 158.2 2.9 2. Net earned premiums 160.4 155.7 3.0 3. Financial result 5.2 6.2 -16.4 4. Other income 0.1 0.0 >100 Total income 165.7 161.9 2.3 6. Expenses for claims and insurance benefits -137.1

  22. Slide 22: P&L - Split by Regions (I)

    6M 2009 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 22 Austria Czech Republic 6M 2009 6M 2008 +/-% 6M 2009 6M 2008 +/-% 1. Gross premiums written 2,185.2 2,120.4 3.1 776.6 691.0 12.4 2. Net earned premiums 1,847.2 1,757.8 5.1 663.0 542.0 22.3 3. Financial result 358.5 488.1 -26.5 26.3 2

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

    6M 2009 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 23 Slovakia Poland Romania 6M 2009 6M 2008 +/-% 6M 2009 6M 2008 +/-% 6M 2009 6M 2008 +/-% 1. Gross premiums written 324.4 297.5 9.0 262.9 393.9 -33.3 313.0 360.5 -13.2 2. Net earned premiums 270.8 245.7 10.2 241.0 361.4 -33.3 272.3 28

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

    6M 2009 P&L - Split by Regions (III) Regional segments, IFRS (€mn) 24 Other CEE 1 Other TOTAL 6M 2009 6M 2008 +/-% 6M 2009 6M 2008 +/-% 6M 2009 6M 2008 +/-% 1. Gross premiums written 300.7 239.2 25.7 88.4 112.7 -21.6 4,251.1 4,215.1 0.9 2. Net earned premiums 233.9 178.5 31.0 84.6 96.4 -12.2 3,612.8

  25. Slide 25: Results by Country

    6M 2009 Results by Country IFRS (€mn) 25 GWP Non-Life Life GWP GWP Total Profit before Taxes Net Combined Ratio 6M 2009 6M 2008 6M 2009 6M 2008 6M 2009 6M 2008 6M 2009 6M 2008 6M 2009 6M 2008 Austria 1,125.5 1,105.9 1,059.7 1,014.4 2,185.2 2,120.4 132.3 154.5 94.7% 92.4% Czech Rep. 507.6 520.5 268.9

  26. Slide 26: Change in Group Shareholders' Equity

    Change in Group Shareholders‘ Equity IFRS (€‘000) 26 1.1. - 30.06.2009 1.1. - 30.06.2008 Equity as of 1 January 4,138,790 2,615,563 Exchange rate changes -1,788 55,336 Changes in scope of consolidation 1,920 39,270 Capital increase 250,000 1,343,078 Unrealised gains and losses from financial 51,731

  27. Slide 27: Development of Bond Portfolio

    Development of Bond Portfolio 27 By Issuer By Rating 5% 2% 1% 1% 6% 7% 8% 7% 9% 45% 46% 43% 49% 51% 50% 16% 15% 14% 21% 20% 20% 33% 34% 35% 21% 20% 20% YE 2008 3M 2009 6M 2009 YE 2008 3M 2009 6M 2009 Government 1 Pfandbriefe/Covered Bonds AAA AA A BBB Other Financials Corporates 1: Government and go

  28. Slide 28: Premium Portfolio

    Premium Portfolio Basis of business origination substantially widened 28 GWP by Geography 6M 06 GWP by Geography 6M 09 Other CEE Other 3.9% Other Other CEE Romania 3.1% 2.1% 7.1% 3.5% Poland Romania 4.2% 7.4% Austria Austria Slovakia 61.1% Poland 51.4% 6.6% 6.2% Czech Slovakia Republic 7.6% 17.6% Cz

  29. Slide 29: Life Insurance Premium Split

    Life Insurance Premium Split IFRS (€mn) 29 Premiums written - direct business 6M 2009 6M 2008 +/- % Regular premiums 1,080.2 926.9 16.5% Single premiums 649.4 723.7 -10.3% Total premiums written - direct business 1,729.6 1,650.6 4.8% thereof: Policies with profit participation 953.0 936.9 1.7% Polic

  30. Slide 30: Q2 2009 Income Statement

    Q2 2009 Income Statement IFRS (€mn) 30 Q2 2009 Q2 2008 +/-% 1. Gross premiums written 1,905.7 1,903.9 0.1 2. Net earned premiums 1,814.6 1,734.5 4.6 3. Financial result 233.4 443.1 -47.3 4. Other income 20.8 13.2 57.4 Total income 2,068.8 2,190.8 -5.6 6. Expenses for claims and insurance benefits -1

  31. Slide 31: Exchange Rates

    6M 2009 Exchange Rates National currency unit per EUR 31 6M 2009 6M 2008 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 7.2730 7.3824 7.2365 7.2556 Estonia EUR/EEK 15.6466 15.6466 - - Liechtenstein EUR/CHF 1.5265 1.5

  32. Slide 32: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 128,000,000 32 Shareholder Structure ~ 30 % Free Float ~70 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  33. Slide 33: Shareholder Structure (II)

    Shareholder Structure (II) Total number of shares 128,000,000 33 Free Float Geographical Split ~35 % ~15% Austria Others ~12% North America ~30% Continental Europe ~8% UK & Ireland

  34. Slide 34: V.I.G. Share & Contact Details

    V.I.G. Share & Contact Details Investor Relations 34 V.I.G. Share Investor Relations Vienna Insurance Group § Number of common shares Schottenring 30, 1010 Vienna E-Mail: investor.relations@vig.com 128mn www.vig.com/ir § ISIN AT0000908504 § Thomas Schmee § Stock exchange listing Tel. +43 (0)50 350 -

  35. Slide 35: Disclaimer

    Disclaimer 35 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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