Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — H1 2017 Earnings Presentation
54 slides from Vienna Insurance's earnings presentation, Aug 22, 2017
Slide 1: Vienna Insurance Group 6M 2017 Results Presentation
Vienna Insurance Group 6M 2017 Results Presentation Vienna, 22 August 2017 Overview & Agenda 2020 Developments HY 2017 Main Regions & Appendix
Slide 2: 6M 2017 Results conference call: presenting team and topics
6M 2017 Results conference call Presenting team and topics Presenting team: Elisabeth Stadler, CEO Martin Simhandl, CFO Judit Havasi, Member of the Managing Board Peter Höfinger, Member of the Managing Board Martin Simhandl, Judit Havasi and Peter Höfinger will be available for Q&A Topics: Overview
Slide 3: Overview of the 6M 2017 results
Overview of the 6M 2017 results VIG on track to meet mid-term targets €4,972mn Growth of 0.9% y-o-y GWP excl. life single premium business up 5.2% GWP Double-digit premium growth in casco (+11.9%) and health (+12.1%) €220.5mn PBT increased by 9.6% y-o-y Total financial result up by €38.9mn (+8.7%) i
Slide 4: CEE: robust economic growth attracts strong FDI
CEE: robust economic growth attracts strong FDI FDI inflows to EU–CEE up 23% compared to 2015 Foreign Direct Investments (FDI) to EU-CEE Number of greenfield investment projects to in EUR mn Central, East and Southeast Europe (CESEE) 29,020 23,278 +18% above average Total 2016 EU-CEE from 2010 - 201
Slide 5: Agenda 2020: Key strategic areas
Agenda 2020: Key strategic areas Directions of impact Optimisation of business model Ensuring future viability • Shared Services • Use of growth potentials Creating cost benefits by merging back-office Intensify selected business areas e.g. health functions and companies insurance, reinsurance, co
Slide 6: New product development to target SME growth potential
New product development to target SME growth potential Agenda 2020 GWP generated from SMEs Cyber Protect – new product in AT (in €mn) Ensuring future • Data security, the protection of IT viability systems and cyber crime are important CAGR topics today Use of growth +5.1% • Wiener Städtische develo
Slide 7: Poland started "Genesis" digitisation project
Poland started “Genesis” digitisation project Agenda 2020 Ensuring future Compensa & VIG invest up to EUR 25mn in innovative technologies viability • Goals: - Test new ideas and innovations - Use the results of the project for other Group companies Use of growth - Enhance cost effectiveness and incr
Slide 8: Successful implementation of own assistance companies provides cost advantages
Successful implementation of own assistance companies provides cost advantages Extension of assistance services to third party clients in CZ and BG Agenda 2020 Update HY 2017 Development of new business areas (IT assistance) as well as revision of Ensuring future CZ existing assistance products (e.g
Slide 9: Outlook 2019 confirmed
Outlook 2019 confirmed Stable development and continuous improvement Gross written premium 2019 VIG plans to steadily increase the premium volume to €9.5bn by 2019 Outlook Profit before taxes Despite the low interest rate environment and its continued negative effect on the financial result, VIG aim
Slide 10: Developments HY 2017
Overview & Developments Agenda 2020 HY 2017 Main Regions & Appendix Note: Rounding differences may occur when rounded amounts or percentages are added up. Overview & Agenda 2020 Developments HY 2017 Main Regions & Appendix
Slide 11: Overall premium growth of 0.9%
Overall premium growth of 0.9% Overview of premiums by segments (I) Gross written premiums (€mn; y-o-y chg.) 6M16 6M17 -4.3% 2,264.9 2,167.0 +3.8% +6.7% +7.3% 791.9 822.2 -3.1% 374.1 399.2 414.5 445.0 266.7 258.5 Austria Czech Republic Slovakia Poland Romania Austria: premiums increased by 1.2% adju
Slide 12: Positive CEE premium development
Positive CEE premium development Overview of premiums by segments (II) 6M16 6M17 Gross written premiums (€mn; y-o-y chg.) -31.8% +9.2% +131.8% 202.3 +5.4% 181.0 162.7 +1.0% 165.8 +10.0% 137.9 116.8 123.1 113.0 114.1 75.0 82.5 70.2 The Baltic Hungary Bulgaria Turkey/ Remaining CEE Other markets Georg
Slide 13: Double-digit growth in Casco and Health; Life single premium reduction ongoing
Double-digit growth in Casco and Health; Life single premium reduction ongoing Gross written premiums (€mn; y-o-y chg.) MTPL Casco Other property Total premiums +2.9% +11.9% +5.5% +0.9% 697 717 555 2,128 2,246 4,928 4,972 496 MTPL 697 717 Casco 496 555 6M16 6M17 6M16 6M17 6M16 6M17 Other Property 2,
Slide 14: Group PBT of €220.5mn up by 9.6% y-o-y
Group PBT of €220.5mn up by 9.6% y-o-y Overview of profits by segments (I) Profit before taxes (€mn; y-o-y change) 6M16 6M17 +3.1% -1.3% 75.2 77.5 77.6 76.6 0.0% +58.4% 25.9 25.9 +62.9% 22.0 13.9 3.6 5.8 Austria Czech Republic Slovakia Poland Romania Austria: better technical result in P&C and growt
Slide 15: Encouraging CEE profit development
Encouraging CEE profit development Overview of profits by segments (II) Profit before taxes (€mn; y-o-y change) 6M16 6M17 +12.8% -3.4% 11.8 10.5 +13.8% +8.2% 8.7 8.4 +40.7% 3.8 4.3 3.9 4.3 1.7 2.4 n.a. -4.6 -6.3 The Baltic* Hungary* Bulgaria* Turkey/Georgia Remaining CEE Other markets The Baltic: st
Slide 16: Combined ratio (P&C) improved to 96.9%
Combined ratio (P&C) improved to 96.9% Favourable developments in nearly all markets P&C Combined ratio development P&C CoR 6M y-o-y regional development (net, %) 99.3 AT -3.6%p 97.9 97.9 97.3 96.9 96.9 95.8 30.5 92.8 31.4 30.4 31.9 31.3 CZ +3.7%p 96.5 96.5 SK -1.4%p 95.2 66.5 67.4 66.9 64.9 65.6 99
Slide 17: Overview on the investment split and bond portfolio
Overview on the investment split and bond portfolio No material changes in the first half-year 2017 6M 2017: Total €36.8bn Bond portfolio by rating1 Other 5% 5% 6.7% 16% 1.4% BBB 19% 0.0% 7.4% Real Estate total 15.5% A 41% 45% 5.7% AA 24% 23% AAA 10% 11% 9.7% 12M16 6M17 64.8% Bond portfolio by issue
Slide 18: Financial result impacted by fully consolidated housing societies
Financial result* impacted by fully consolidated housing societies Adjusted for housing societies, current income decreased by ~3% Income Total in € '000 6M 2017 6M 2016 +/-% Current income 667,002 549,655 21.3 Income from appreciations 16,339 8,807 85.5 Overall financial result up by €38.9mn, inclu
Slide 19: Equity increase largely driven by profits
Equity increase largely driven by profits Change in Group Shareholders’ Equity (€mn) +1% 48 -34 172 5,776 4 -125 5,711 Equity as of 12M16 Profit for the period Currency changes AFS unrealised Dividend payment Other Equity as of 6M17 gains and losses Since September 2016 full consolidation of Austria
Slide 20: Solvency ratio of 224.5% at 6M 2017
Solvency ratio of 224.5% at 6M 2017 Solvency ratio calculated at the level of stock-listed VIG 225% 195% 6M 2017 YE 2016 In EUR mn 6,636 7,684 3,411 3,423 Solvency II SCR Solvency II SCR Own funds Own funds Calculation based on Partial Internal Model (PIM) Results include volatility adjustment Overv
Slide 21: A+ with stable outlook
S&P rating confirmed in August 2017: A+/stable outlook VIG remains best-rated company in the ATX Business Risk Profile: Financial Risk Profile: Other Assessments Strong Very Strong • „Leading market position in Austria • „Capital adequacy, based on our • Enterprise risk management: and Central and E
Slide 22: Main Regions & Appendix
Overview & Developments Agenda 2020 HY 2017 Main Regions & Appendix Note: Rounding differences may occur when rounded amounts or percentages are added up. Overview & Agenda 2020 Developments HY 2017 Main Regions & Appendix
Slide 23: Austria: Overall PBT up 3.1% to €77.5mn
Austria: Overall PBT up 3.1% to €77.5mn CoR at same level as Q1 (95.8%); cost ratio further improved q-o-q GWP development (€mn) P&L: P&C business (€mn) -4.3% 6M17 Y-o-Y 2,265 Underwriting and financial result 57.9 >100% 2,167 MTPL 185 Other non-technical result -6.0 n.a. 183 Casco 152 Result (pre t
Slide 24: Czech Republic: PBT down 1.3% to €76.6mn
Czech Republic: PBT down 1.3% to €76.6mn CoR driven by higher claims expenses increased to 96.5% GWP development (€mn) P&L: P&C business (€mn) +3.8% 6M17 Y-o-Y 822 Underwriting and financial result 28.3 -7.7% 792 Other non-technical result -1.8 54.7% 142 MTPL 136 Result (pre tax) 26.5 -10.1% 116 Cla
Slide 25: Slovakia: premiums up 6.7%, PBT overall stable
Slovakia: premiums up 6.7%, PBT overall stable Improved technical result in P&C offsets negative life development GWP development (€mn) P&L: P&C business (€mn) +6.7% 6M17 Y-o-Y 399 Underwriting and financial result 12.3 8.3% 374 Other non-technical result -0.5 -45.0% 76 MTPL 72 Result (pre tax) 11.7
Slide 26: Poland: better technical result in P&C and positive life development
Poland: better technical result in P&C and positive life development drive overall PBT increase of 58.4% CoR further improved to 94.8% GWP development (€mn) P&L: P&C business (€mn) +7.3% 6M17 Y-o-Y Underwriting and financial result 16.2 49.3% 445 415 Other non-technical result 0.2 n.a. 88 Result (pr
Slide 27: Romania: PBT increased to €5.8mn up 62.9%
Romania: PBT increased to €5.8mn up 62.9% CoR again below 100% GWP development (€mn) P&L: P&C business (€mn) -3.1% 6M17 Y-o-Y 267 258 Underwriting and financial result 4.1 >100% Other non-technical result -0.5 -47.3% Result (pre tax) 3.6 >100% 88 MTPL 132 Claims ratio 63.9% -1.0%p Cost ratio 35.4% -
Slide 28: Premium development of new segments (I)
Premium development of new segments (I) The Baltic GWP development (€mn) Hungary GWP development (€mn) +131.8% +5.4% 163 117 123 MTPL MTPL 8 13 49 8 9 Casco Casco 33 37 29 Other Property Other Property 70 3 4 34 Health Health 16 39 7 7 Life regular Life regular 43 9 20 21 24 Life single Life single
Slide 29: Premium development of new segments (II)
Premium development of new segments (II) Remaining CEE GWP development (€mn) Other markets GWP development (€mn) +9.2% -31.8% 181 202 166 MTPL 42 Other Property 55 40 Casco 21 138 19 Life regular 37 Other Property 59 51 58 Health Life regular 4 6 Life single 111 37 30 30 Life single 42 21 24 6M16 6M
Slide 30: Key financials: overview of KPIs
6M 2017 Key financials Overview of KPIs Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 153 146 97.9 96.9 6M16 6M17 6M16 6M17 EPS1 (€) ROE after tax and minorities (%) 7.7 7.2 2.26 2.20 6M16 6M17 6M16 6M17 1: EPS net of hybrid interest (annualised figures) Overview & Agenda 2020 De
Slide 31: Income statement
6M 2017 Income statement IFRS (€mn) €mn 6M 2017 6M 2016 +/-% Gross premiums written 4,972.4 4,928.1 0.9 Net earned premiums 4,219.0 4,191.6 0.7 Financial result1 488.4 449.5 8.7 Other income 59.8 103.9 -42.4 Total income 4,767.2 4,744.9 0.5 Expenses for claims and insurance benefits -3,394.7 -3,467.
Slide 32: Balance sheet
6M 2017 Balance sheet IFRS (€mn) €mn 30.06.2017 31.12.2016 +/-% Intangible assets 2,056 2,054 0.1 Investments 35,081 34,646 1.3 Unit- and index-linked investments 8,825 8,550 3.2 Reinsurers’ share in underwriting provisions 1,149 985 16.6 Receivables 1,618 1,460 10.8 Tax receivables and advance paym
Slide 33: P&L by segment (I)
6M 2017 P&L by segment (I) IFRS (€mn) Austria Czech Republic Slovakia €mn 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% Gross premiums written 2,167.0 2,264.9 -4.3 822.2 791.9 3.8 399.2 374.1 6.7 Net earned premiums 1,609.6 1,710.9 -5.9 593.3 573.9 3.4 322.9 294.7 9.5 Financial resu
Slide 34: P&L by segment (II)
6M 2017 P&L by segment (II) IFRS (€mn) Poland Romania The Baltic €mn 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% Gross premiums written 445.0 414.5 7.3 258.5 266.7 -3.1 162.7 70.2 >100 Net earned premiums 358.1 344.7 3.9 188.9 166.4 13.5 120.9 54.3 >100 Financial result1 16.0 17.2
Slide 35: P&L by segment (III)
6M 2017 P&L by segment (III) IFRS (€mn) Hungary Bulgaria Turkey/Georgia €mn 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% Gross premiums written 123.1 116.8 5.4 82.5 75.0 10.0 114.1 113.0 1.0 Net earned premiums 78.6 79.7 -1.4 56.0 49.8 12.6 50.9 49.1 3.7 Financial result1 3.2 4.1 -
Slide 36: P&L by segment (IV)
6M 2017 P&L by segment (IV) IFRS (€mn) Remaining CEE Other markets €mn 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% Gross premiums written 181.0 165.8 9.2 137.9 202.3 -31.8 Net earned premiums 121.8 112.2 8.6 115.3 180.8 -36.3 Financial result1 10.0 17.7 -43.8 10.9 9.3 16.4 Other income 6.6 2.7 >100 1.
Slide 37: P&L by segment (V)
6M 2017 P&L by segment (V) IFRS (€mn) Central Functions Consolidation TOTAL €mn 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% Gross premiums written 738.2 699.6 5.5 -659.0 -626.7 n.a. 4,972.4 4,928.1 0.9 Net earned premiums 600.1 569.6 5.4 2.6 5.4 n.a. 4,219.0 4,191.6 0.7 Financial
Slide 38: Financial result by segment (I)
6M 2017 Financial result by segment (I) IFRS (€ '000) Income Austria Czech Republic Slovakia Poland in € '000 6M 2017 6M 2016 6M 2017 6M 2016 6M 2017 6M 2016 6M 2017 6M 2016 Current income 390,689 403,560 55,544 52,873 22,268 22,037 17,284 15,497 Income from appreciations 3,973 2,881 4,213 1,375 1,2
Slide 39: Financial result by segment (II)
6M 2017 Financial result by segment (II) IFRS (€ '000) Income Romania The Baltic Hungary Bulgaria in € '000 6M 2017 6M 2016 6M 2017 6M 2016 6M 2017 6M 2016 6M 2017 6M 2016 Current income 7,982 6,971 3,464 2,489 3,736 4,445 11,749 10,956 Income from appreciations 102 185 763 388 0 0 477 500 of which
Slide 40: Financial result by segment (III)
6M 2017 Financial result by segment (III) IFRS (€ '000) Income Turkey/Georgia Remaining CEE Other markets in € '000 6M 2017 6M 2016 6M 2017 6M 2016 6M 2017 6M 2016 Current income 5,482 4,159 17,832 19,042 10,526 10,469 Income from appreciations 843 1,375 670 101 16 0 of which reduction in impairment
Slide 41: Financial result by segment (IV)
6M 2017 Financial result by segment (IV) IFRS (€ '000) Income Central Functions Consolidation Total in € '000 6M 2017 6M 2016 6M 2017 6M 2016 6M 2017 6M 2016 Current income 176,923 44,880 -28,433 -28,820 695,046 568,558 Income from appreciations 132 0 0 0 16,341 8,806 of which reduction in impairmen
Slide 42: Development for P&C business according to VAG
6M 2017 development for P&C business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 6M 2017 6M 2016 +/-% Overall result for direct business Gross direct premiums written 2,811.79 2,662.65 5.6 Gross direct 235.44 170.75 37.9 Underwriting result 169.37 160.58 5.5 Financial result
Slide 43: Development for life business according to VAG
6M 2017 development for life business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 6M 2017 6M 2016 +/-% Overall result for direct business Gross direct premiums written 1,823.89 1,977.44 -7.8 Gross direct 172.00 136.91 25.6 Underwriting result 0.00 0.00 - Financial result 0.00
Slide 44: Development for health business according to VAG
6M 2017 development for health business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 6M 2017 6M 2016 +/-% Overall result for direct business Gross direct premiums written 236.36 206.85 14.3 Gross direct 21.81 17.19 26.9 Underwriting result 0.00 0.00 - Financial result 0.00 0.0
Slide 45: Premiums by business lines and country (I)
6M 2017 Premiums by business lines and country (I) IFRS (€mn) GWP MTPL GWP Casco GWP Other property 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% Austria 183.0 184.7 -0.9% 157.9 151.5 4.2% 809.9 792.7 2.2% Czech Republic 141.8 136.5 3.9% 116.3 106.6 9.0% 242.7 228.0 6.5% Slovakia 75
Slide 46: Premiums by business lines and country (II)
6M 2017 Premiums by business lines and country (II) IFRS (€mn) GWP Life regular GWP Life single GWP Health 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% Austria 647.8 650.7 -0.5% 166.6 288.3 -42.2% 201.7 196.9 2.4% Czech Republic 279.0 263.0 6.1% 35.9 51.1 -29.8% 6.5 6.7 -3.0% Slova
Slide 47: Country overview GWP / PBT / CoR
6M 2017 Country overview GWP / PBT / CoR IFRS (€mn) GWP Total Profit before taxes Combined Ratio net 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-% 6M 2017 6M 2016 +/-pp Austria 2,167.0 2,264.9 -4.3% 77.5 75.2 3.1% 95.8% 99.3% -3.5 Czech Republic 822.2 791.9 3.8% 76.6 77.6 -1.3% 96.5% 92.8% 3.7 Slovakia
Slide 48: Q2 2017 – Income statement
Q2 2017 – Income statement IFRS (€mn) €mn Q2 2017 Q2 2016 +/-% Gross premiums written 2,252.9 2,222.3 1.4 Net earned premiums 2,066.2 2,053.8 0.6 Financial result1 240.6 225.4 6.8 Other income 30.3 67.0 -54.7 Total income 2,337.2 2,346.1 -0.4 Expenses for claims and insurance benefits -1,653.3 -1,71
Slide 49: P&C claims and cost ratio details
6M 2017 P&C claims and cost ratio details Claims ratio 6M y-o-y (net, %) Remarks 6M16 6M17 Austria: claims ratio improvement in Wiener Städtische and Donau Versicherung -3.1 +2.7 +3.2 -2.1 -0.9 Czech Republic: disproportionately high claims 68.5 65.4 67.5 65.3 expenses 62.0 64.7 60.4 63.6 64.8 63.9
Slide 50: Exchange rates
6M 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 132.5900 135.1016 135.2300 138.2728 Belarus EUR/BYN 2.2088 2.0517 2.0450 2.2001 Bosnia EUR/BAM 1.9558 1.9558 1.
Slide 51: VIG share (I)
VIG share (I) Current analyst recommendation split Share price development 6M 2017 Sell High EUR 25.560 Buy Low EUR 21.590 Price as of 30 June EUR 24.695 Market cap. EUR 3.20bn Development YTD % +15.94 Hold VIG compared to ATX and Stoxx Europe 600 Ins. 125 115 105 95 85 75 65 55 Jan-16 Mar-16 May-16
Slide 52: 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 53: Contact details
Contact details Investor Relations Financial calendar 2017 Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna 12 May 2017 Annual General Meeting E-Mail: investor.relations@vig.com www.vig.com/ir 17 May 2017 Ex-dividend-day 18 May 2017 Record date dividend Nina Hig
Slide 54: 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
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