Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — FY2021 Earnings Presentation
44 slides from Vienna Insurance's earnings presentation, Mar 8, 2022
Slide 1: 2021 Preliminary Results Presentation
2021 PRELIMINARY RESULTS PRESENTATION Hartwig Löger, Deputy CEO Liane Hirner, CFRO Werner Matula, Chief Actuary Vienna, 8 March 2022
Slide 2: Agenda
HIGHLIGHTS FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2021 AND OUTLOOK 2022 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: All information for the financial year 2021 is based on preliminary data; Rounding differences may occur. 2 VIG VIENNA INSURANCE GROUP
Slide 3: Results Highlights
RESULTS HIGHLIGHTS Key figures exceeded initial expectations for 2021 Gross written premiums Profit before taxes Combined Ratio € 11.0bn (+5.5%) € 511.3mn (+47.8%) 94.2% (-0.9%p) ▪ Strongest contribution by segment coming ▪ PBT 2020 included goodwill impairments ▪ Claims ratio improved to 61.5% (62.
Slide 4: Dividend Proposal of €1.25 per Share
DIVIDEND PROPOSAL OF €1.25 PER SHARE In line with dividend policy 2021 2020 2019 2018 Earnings per €1.81 €2.59 €2.04 share €2.94 DIVIDEND POLICY Dividend per €0.75 €1.25* €1.15 €1.00 share Payout Ratio in a range of 30 – 50% of Group profits after taxes and non-controlling interests Pay out ratio 42
Slide 5: Positive Outcome of Constructive Talks with Hungary
POSITIVE OUTCOME OF CONSTRUCTIVE TALKS WITH HUNGARY Agreement signed on 21 February 2022 ▪ VIG retains a controlling majority interest of 55% for full Targeted structure after completion of planned mergers consolidation and keeps the operational management of the Hungarian business ▪ Hungarian VIG h
Slide 6: Agenda
HIGHLIGHTS FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2021 AND OUTLOOK 2022 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: All information for the financial year 2021 is based on preliminary data; Rounding differences may occur. 6 VIG VIENNA INSURANCE GROUP
Slide 7: New Segmentation as of Year-End 2021
NEW SEGMENTATION AS OF YEAR-END 2021 Group Steering unchanged according to countries ▪ VIG divides its region into 20 CEE markets and 10 special markets, of which 4 countries are also shown in the reportable segment Special Markets ▪ Changed consideration of consolidation effects impact combined rat
Slide 8: Favourable Premium and Double-Digit Profit Growth
FAVOURABLE PREMIUM AND DOUBLE-DIGIT PROFIT GROWTH 2021 Income statement €mn 2021 2020 +/- % ▪ Solid premium growth in all segments and lines of business Gross premiums written 11,002.6 10,428.5 5.5 except life single premium Net earned premiums 9,705.6 9,336.6 4.0 Financial result excl. result from
Slide 9: Stronger than Expected Top-Line Growth Leads to GWP of €11bn
STRONGER THAN EXPECTED TOP-LINE GROWTH LEADS TO GWP OF €11BN Gross written premiums (€mn; y-o-y change) ▪ Top line up by €574.1mn (+5.5%) to €11.0bn supported by growth 4,031 Austria +0.4% in all segments 4,048 ▪ Stable development in Austria (+€17.7mn) and Special Markets 1,732 (+€0.04mn) Czech Rep
Slide 10: Increases in All Lines of Business Except Life Single Premium
INCREASES IN ALL LINES OF BUSINESS EXCEPT LIFE SINGLE PREMIUM Gross written premiums by lines of business (€mn; y-o-y change); incl. Group Functions MTPL Casco Other property Total premiums +5.5% 12M 2020 1,507 1,289 4,876 11,003 +7.0% +8.7% +8.0% 10,428 743 Health 703 869 12M 2021 1,612 1,402 5,267
Slide 11: Group Result Before Taxes of €511.3mn Up by 47.8%
GROUP RESULT BEFORE TAXES OF €511.3MN UP BY 47.8% Result before taxes (€mn; y-o-y change) ▪ AT: result before taxes up (+€56.0mn) due to increased financial 178.7 result and driven by growth in P&C and life business Austria +31.3% 234.7 ▪ CZ: result before taxes impacted by acquisition costs due to
Slide 12: Combined Ratio P&C at 94.2%
COMBINED RATIO P&C AT 94.2% Overview Group and segments (y-o-y development net, %) ▪ Strong combined ratio improvement despite exceptional gross weather related claims of ~€620mn in 2021 ▪ Comprehensive reinsurance program limits NatCat (net) impact to ~€90mn in 2021 (2020: ~€20mn) ▪ Better claims e
Slide 13: Financial Result
FINANCIAL RESULT Strong result from shares in at equity consolidated companies in EUR ‘000 2021 2020 +/- % Current income 914,966 953,928 -4.1 ▪ Decline in income from the disposal of investments (-€63.5mn) Income from appreciations 16,174 20,706 -21.9 due to higher realised gains on bonds and loans
Slide 14: Investment Split and Bond Portfolio Overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Stable portfolio mix Investment split Bond portfolio by rating1 5.1% 12M 2021 9.1% 29.6% 33.8% 22.0% 5.5% 1.5% 9.3% 12M 2020 9.0% 30.0% 35.4% 21.6% 4.0% 5.8% 8.0% €37.3bn AAA AA A BBB Other in 2021 Bond portfolio by issuer 70.3% 12M 2021 53.0% 5.8% 17.0%
Slide 15: Bond Portfolio Rating Distribution 2021
BOND PORTFOLIO RATING DISTRIBUTION 2021 Government bonds Covered bonds Financials Corporates 55.4% 48.2% 40.3% 41.8% 41.3% 29.8% 37.9% 30.8% 15.1% 12.8% 10.4% 10.6% 9.2% 6.4% 4.0% 1.9% 1.8% 0.6% 0.6% 1.0% AAA AA A BBB Other AAA AA A BBB Other AAA AA A BBB Other AAA AA A BBB Other 15 FINANCIALS & INV
Slide 16: Ukraine & Russia Exposure
UKRAINE & RUSSIA EXPOSURE Unpredictable financial result due to expected high volatility on capital markets Russia ▪ No operations Ukraine ▪ 3 insurance companies: non-life companies (Kniazha, UIG) and life insurance company (Kniazha Life) ▪ Employees: 1400 ▪ Premiums: ~€100mn ▪ Average profit in la
Slide 17: Agenda
HIGHLIGHTS FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2021 AND OUTLOOK 2022 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: All information for the financial year 2021 is based on preliminary data; Rounding differences may occur. 17 VIG VIENNA INSURANCE GROUP
Slide 18: Life & Health Embedded Value Austria / Germany
LIFE & HEALTH EMBEDDED VALUE AUSTRIA / GERMANY in €mn 68.7% 732.6 2,004.4 ▪ New Business Margin (PVNBP-Ratio) increased to 1.75% in 2021 (2020: 1.00%) 26.4 36.9 ▪ Significant positive impact of 1,187.9 32.3 the economic environment -11.6 1,996.6 ▪ Includes profitable long-term- health business 1,840
Slide 19: Life & Health Embedded Value CEE
LIFE & HEALTH EMBEDDED VALUE CEE in €mn 6.9% 108.3 ▪ New Business Margin 1,843.3 -11.4 (PVNBP-Ratio) at 3.8% in 14.6 2021 (2020: 4.4%) 41.3 1,725.1 ▪ Important contribution of new -34.6 business written in 2021 1,103.4 1,097.6 ▪ Positive experience variance 48.5 includes renewals (due to 41.3 Solven
Slide 20: Life & Health Embedded Value Total
LIFE & HEALTH EMBEDDED VALUE TOTAL in €mn ▪ New Business Margin (PVNBP-Ratio) increased to 2.5% in 2021 (2020: 2.2%) ▪ CEE contributes with 48% to the Life & Health Embedded Value 32.1% 721.1 3,847.8 3,228.4 145.2 63.8 2,913.1 73.6 41.0 -379.1 -46.2 3,100.0 2,938.5 68.8 73.6 2020 2021 2020 Dividends
Slide 21: Agenda
HIGHLIGHTS FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2021 AND OUTLOOK 2022 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: All information for the financial year 2021 is based on preliminary data; Rounding differences may occur. 21 VIG VIENNA INSURANCE GROUP
Slide 22: Executive Summary for 2021
EXECUTIVE SUMMARY FOR 2021 Strong operational development allows for increased dividend of €1.25 Excellent operational business performance ▪ Local entrepreneurship and broad diversification in products and markets support resilient business model and lead to improved key figures ▪ GWP volume exceed
Slide 23: Outlook 2022
OUTLOOK 2022 ▪ Further development in financial year 2022 affected by geopolitical and economic uncertainties ▪ Impact of war in Ukraine and consequences unclear ▪ Risks due to ongoing pandemic, inflation, high raw material prices, supply chain issues and shortages of resources ▪ Increased volatilit
Slide 24: Agenda
HIGHLIGHTS FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2021 AND OUTLOOK 2022 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: All information for the financial year 2021 is based on preliminary data; Rounding differences may occur. 24 VIG VIENNA INSURANCE GROUP
Slide 25: Austria
AUSTRIA Positive developments in P&C and life with double-digit profit growth rates GWP development (€mn) P&L Comments €mn 2021 2020 +/- % +0.4% Gross premiums written 4,048.4 4,030.7 0.4 ▪ Strong premium growth in other property 4,031 4,048 Net earned premiums 3,242.5 3,275.6 -1.0 (+€57.4mn) and he
Slide 26: Czech Republic
CZECH REPUBLIC Favourable development in P&C supported by improved claims ratio GWP development (€mn) P&L Comments €mn 2021 2020 +/- % +7.7% Gross premiums written 1,864.9 1,732.4 7.7 ▪ Strong premium growth of €132.5mn coming 1,865 from all lines of business except life single 30 21 Net earned prem
Slide 27: Poland
POLAND Very strong results in P&C and life lead to increase of €32.3mn in business operating result GWP development (€mn) P&L Comments +7.0% €mn 2021 2020 +/- % Gross premiums written 1,279.8 1,196.2 7.0 ▪ Premium growth of €83.6mn coming from all 1,280 29 Net earned premiums 983.0 926.6 6.1 lines o
Slide 28: Extended CEE
EXTENDED CEE Strong development in P&C supported by improved claims ratio GWP development (€mn) P&L Comments €mn 2021 2020 +/- % 9.3% Gross premiums written 2,886.7 2,640.4 9.3 ▪ Extended CEE include Albania incl. Kosovo, 2,887 Net earned premiums 2,200.7 2,054.1 7.1 Baltic states, Bosnia & Herzegov
Slide 29: Special Markets
SPECIAL MARKETS Stable developments in P&C and life business GWP development (€mn) P&L Comments 0.0% €mn 2021 2020 +/- % Gross premiums written 531.7 531.6 0.0 ▪ Special Markets include Germany, Georgia, 532 532 Net earned premiums 325.9 343.9 -5.2 Liechtenstein, Turkey Health 32 34 Financial result
Slide 30: Group Functions
GROUP FUNCTIONS Strengthening of technical reserves and built provisions weigh on profit GWP development (€mn) P&L Comments 13.2% €mn 2021 2020 +/- % Gross premiums written 1,965.0 1,736.5 13.2 ▪ Group Functions include VIG Holding, VIG 1,965 Net earned premiums 1,554.1 1,425.7 9.0 Re, Wiener Re, VI
Slide 31: Agenda
HIGHLIGHTS FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2021 AND OUTLOOK 2022 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: All information for the financial year 2021 is based on preliminary data; Rounding differences may occur. 31 VIG VIENNA INSURANCE GROUP
Slide 32: 2021 Key Financials
2021 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and Operating RoE (%) non-controlling interest (€mn) 376 11.4 11.1 10.9 331 232 2019 2020 2021 2019 2020 2021 Earnings per share (€) Book value per share* (€) 2.94 36.1 2.59 33.7 33.4 1.81 2019 2020 2021 2019 2020 2021 * Base
Slide 33: Operating Return on Equity
OPERATING RETURN ON EQUITY New key figure under VIG 25 for operational performance and value creation Operating RoE is a gross RoE based on the Business operating result €mn 2021 2020 2019 Business operating result 512.0 487.3 564.8 The positions between the Result of fully consolidated non-profit s
Slide 34: Q4 2021 Income Statement
Q4 2021 INCOME STATEMENT IFRS (€mn) €mn Q4 2021 Q4 2020 +/- % Gross premiums written 2,611.7 2,442.1 6.9 ▪ Premium up €169.6mn due to growth in all lines of Net earned premiums 2,442.6 2,312.1 5.6 business, especially in other property Financial result excl. result from shares in at equity consolida
Slide 35: 2021 Balance Sheet
2021 BALANCE SHEET IFRS (€mn) €mn 31.12.2021 31.12.2020 +/- % Intangible assets 1,744 1,733 0.6 Right-of-Use assets 173 185 -6.5 Investments 34,810 34,901 -0.3 Investments of unit- and index-linked life insurance 8,525 7,968 7.0 Reinsurers’ share in underwriting provisions 1,565 1,396 12.0 Receivabl
Slide 36: Equity Development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) +5.9% 46 -339 300 388 5,598 -112 28 5,286 Equity as Profit for Issuance of Currency AFS unrealised Dividend Other Equity as of 2020 the period RT1 instrument changes gains and losses payment of 2021 36 APPENDIX 2: FINANCIALS VIG VI
Slide 37: 2021 Premiums by Business Lines and Country (I)
2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 2021 2020 +/- % 2021 2020 +/- % 2021 2020 +/- % Austria 327.7 324.1 1.1 316.9 302.8 4.7 1,499.8 1,442.4 4.0 Czech Republic 349.3 311.9 12.0 279.2 244.3 14.3 526.1 492.4 6.8 Poland 310.7 297.2 4.6 192.2 191.0 0.7 445
Slide 38: 2021 Premiums by Business Lines and Country (II)
2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 2021 2020 +/- % 2021 2020 +/- % 2021 2020 +/- % Austria 1,208.2 1,215.8 -0.6 228.0 293.7 -22.4 467.9 451.9 3.5 Czech Republic 659.1 630.9 4.5 30.2 34.7 -12.9 21.0 18.3 14.8 Poland 166.8 168.1 -0.8 135.7 106.4
Slide 39: 2021 Country Overview GWP / PBT / Combined Ratio
2021 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before tax Combined Ratio net (in %) 2021 2020 +/- % 2021 2020 +/- % 2021 2020 +/- %p Austria 4,048.4 4,030.7 0.4 234.7 178.7 31.3 92.8 92.7 0.0 Czech Republic 1,864.9 1,732.4 7.7 186.9 192.1 -2.7 90.1 90.7 -0.6 Poland 1,27
Slide 40: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (8/3/2022) Current listings Ticker Rating Major Indices SELL Vienna ▪ Vienna Stock Exchange: VIG Standard & Poor’s: ATX 1 BUY Prague ▪ Bloomberg: VIG AV / VIG CP A+, stable outlook ATX
Slide 41: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region* North America 34% Austria 27% ~72% ~28% Continental Europe 24% UK & Ireland 12% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) * Split of identified shares, May 2021 (Source: Investor Update) 41 APPENDIX VIG VIENNA
Slide 42: Appendix
42 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 43: Contact Details / Financial Calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2022* Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 Date Event nina.higatzberger@vig.com sylvia.machherndl@vig.com 08 Mar. 2022 P
Slide 44: 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 — FY2021 Earnings Presentation on 6ix