Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — FY2011 Earnings Presentation
17 slides from Vienna Insurance's earnings presentation, Mar 29, 2012
Slide 1: Group Embedded Value Results 2011
Group Embedded Value Results 2011 March 29, 2012
Slide 2: Introduction
Introduction Scope of GEV-Reporting Group Embedded Value (GEV) calculated as Life & Health (L&H) MCEV plus Adjusted Net Asset Value (ANAV) for Property & Casualty (P&C) Change to Market Consistent Embedded Value©1 Principles Calculation of P&C ANAV for the first time: s-Versicherung in Austria
Slide 3: Methodology
Methodology MCEV All results are based on local GAAP. GEV reflects the present value of amounts deemed to be distributable to shareholders. MCEV is based on stochastic cash flow projections using market consistent capital market scenarios and an allowance for liquidity premiums. The MCEV allow
Slide 4: Methodology
Methodology MCEV MCEV for L&H: Adjusted Net Asset Value (ANAV) plus Value of In-Force (VIF) determined as Present Value of Future Profits (PVFP) minus Time Value of Financial Options and Guarantees (TVFOG) minus Frictional Cost of Required Capital (FCRC) minus Cost for Residual Non-Hedgeable Risks
Slide 5: Group Embedded Value
Group Embedded Value Results in € mn L&H P&C Total 2011 2010 (*) 2011 2010 (*) 2011 2010 (*) Austria / Germany Free Surplus - 120.6 444.9 Required Capital 384.6 383.6 ANAV 264.1 828.5 679.7 65.2 943.8 893.7 PVFP 1,478.8 1,510.9 1,478.8 1,510.9 - TVFOG - 247.5 - 247.5 - 247.5 - 247.5 - FCRC - 54.0 -
Slide 6: Group Embedded Value: Comments on GEV Results
Group Embedded Value Comments on GEV Results The reference rates used for the MCEV calculations are based on the corresponding swap rates at December 31, 2011 and include a liquidity spread of 100 bp (EUR) and 80 bp (other currencies) for all terms. Volatilities used to calibrate the economic sc
Slide 7: Return on Embedded Value
Return on Embedded Value Results in € mn L&H P&C Total Austria / Germany GEV 2010 Reported 1,851.6 - 197.4 1,654.2 GEV 2010 Restated 1,945.1 65.2 2,010.4 Opening Adjustments - 575.1 520.7 - 54.4 thereof Dividends - 20.6 68.4 47.8 GEV 2010 Restated and Adjusted 1,370.0 585.9 1,955.9 Return on GEV - 2
Slide 8: Value of New Business
Value of New Business Results in € mn Austria / Germany 2011 2010 (*) +/-% VNB 33.5 42.8 - 21.7% APE 173.3 209.8 - 17.4% PVNBP 1,692.4 2,055.6 - 17.7% APE-Ratio 19.3% 20.4% - 5.3% PVNBP-Ratio 2.0% 2.1% - 4.9% CEE 2011 2010 (*) +/-% VNB 161.8 151.0 + 7.1% APE 266.9 225.1 + 18.6% PVNBP 1,849.0 1,608.8
Slide 9: Value of New Business: Comments on VNB Results
Value of New Business Comments on VNB Results The VNB represents the value generated by new business sold during the reporting period Increase of life insurance business in CEE Stable profit margins in A/G Profitability in CEE remains at a high level More than 80% of VNB is generated in CE
Slide 10: Sensitivities: MCEV – Life & Health
Sensitivities MCEV – Life & Health 16.0% Change in Yield Curve +1% -0.7% -32.3% Change in Yield Curve -1% -0.6% -7.3% Equity and Property Values -10% -0.4% -2.2% Equity and Property Implied Volatilities +25% -0.4% -3.5% Swaption Implied Volatilities +25% -1.1% -5.3% Maintenance Expenses +10% -2.7% A
Slide 11: Sensitivities: VNB – Life & Health
Sensitivities VNB – Life & Health 29.1% Change in Yield Curve +1% -8.1% -53.7% Change in Yield Curve -1% 10.3% Equity and Property Values -10% -5.2% Equity and Property Implied Volatilities +25% -0.7% -11.6% Swaption Implied Volatilities +25% -1.1% -11.7% Maintenance Expenses +10% -3.2% A/G 9.3% CEE
Slide 12: Development
Development Return on GEV in € mn 195 5,284 124 5,187 -128 5,063 -86 116 4,973 GEV 2010 Restatement GEV 2010 Dividends FX Effects and GEV 2010 Return in Return in GEV 2011 reported changes restated others adjusted L&H P&C 12
Slide 13: Analysis of Change: A/G – Life & Health
Analysis of Change A/G – Life & Health in € mn Operating Economic 155 -278 61 3 34 1,370 1,346 MCEV 2010 Value of New Roll forward Assumption Operating Investment income MCEV 2011 adjusted Business 2011 changes variance and others 13
Slide 14: Analysis of Change: CEE – Life & Health
Analysis of Change CEE – Life & Health in € mn Operating Economic 32 -25 162 -11 -17 1,546 1,406 MCEV 2010 Value of New Roll forward Assumption Operating Investment income MCEV 2011 adjusted Business 2011 changes variance and others 14
Slide 15: Reconciliation: IFRS Equity to ANAV
Reconciliation IFRS Equity to ANAV in € mn 2011 2010 Consolidated IFRS equity 5,049.6 5,029.6 Minorities - 419.0 - 396.2 Hybrid capital - 495.6 - 495.6 Intangible assets - 2,382.4 - 2,104.2 Sub Total 1,752.6 2,033.7 Goodwill, other intangible assets and capital consolidation adjustments 877.7 526.5
Slide 16: Summary
Summary Highlights GEV of € 5,284.2 mn as at 31 December 2011 Positive Return on GEV amounting to € 311.0 mn (+ 6.3%) Strong Value of New Business performance at € 195.3 mn Increased new business profitability due to increased CEE proportion of new business as shown in PVNBP-Ratio Growth i
Slide 17: Disclaimer
Disclaimer Cautionary statement regarding forward-looking information This presentation contains forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and it might not be possible to achieve the predictions, forecasts, projections and other outcomes des
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