Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — Q1 2021 Earnings Presentation
43 slides from Vienna Insurance's earnings presentation, May 19, 2021
Slide 1: 3M 2021 Results Presentation
3M 2021 RESULTS PRESENTATION Vienna, 19 May 2021
Slide 2: Presenting team and topics
3M 2021 RESULTS CONFERENCE CALL Presenting team and topics Participants Topics ▪ Liane Hirner, CFRO ▪ Highlights p. 3 ▪ Peter Höfinger ▪ Financials & Investments p. 4 ▪ Solvency data YE 2020 p. 13 ▪ Appendix 1: Segments p. 19 ▪ Appendix 2: Financials p. 32 Please note: Rounding differences may occur
Slide 3: Highlights 3M 2021: Strong profit growth in the first quarter
HIGHLIGHTS 3M 2021 Strong profit growth in the first quarter Gross written premium Profit before taxes Combined Ratio € 3,106.8mn € 128.0mn 95.2% GWP down by 0.4% (-€11.4mn) PBT up by 5.0% (+€6.1mn) Rather stable development (+0.1ppt) ▪ Strongest GWP growth by segment in ▪ PBT development mainly dri
Slide 4: Financials & Investments
HIGHLIGHTS FINANCIALS & INVESTMENTS SOLVENCY DATA YE 2020 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 4 VIG VIENNA INSURANCE GROUP
Slide 5: Strong profit performance
STRONG PROFIT PERFORMANCE 3M 2021 Income statement €mn 3M 2021 3M 2020 +/- % Gross premiums written 3,106.8 3,118.2 -0.4 ▪ Premium decline mainly driven by single premium life insurance (-€75.0mn) and regular premium life insurance (-€5.4mn); adjusted Net earned premiums 2,416.3 2,488.3 -2.9 for FX
Slide 6: Gross written premiums slightly down by 0.4%
GROSS WRITTEN PREMIUMS SLIGHTLY DOWN BY 0.4% Overview by segments Gross written premiums (€mn; y-o-y change) ▪ Solid gross written premiums of €3.1bn despite reduced life business; further intentional decrease of life single premium business (-€75mn) ▪ Adjusted for FX effects, premium growth of 1.6%
Slide 7: Increased other property, motor and health business
INCREASED OTHER PROPERTY, MOTOR AND HEALTH BUSINESS Gross written premiums by lines of business (€mn; y-o-y change); incl. Central Functions MTPL Casco Other property Total premiums -0.4% 3M 2020 416 350 1,588 3,118 3,107 +0.3% +3.1% +5.0% MTPL 416 417 3M 2021 417 360 1,666 Casco 350 360 Other Prope
Slide 8: Group profit before taxes of €128.0mn up by 5.0%
GROUP PROFIT BEFORE TAXES OF €128.0MN UP BY 5.0% Increased profit contribution from nearly all segments Result before taxes (€mn; y-o-y change) ▪ AT: profit increase of €13.0mn driven by higher financial result and less expenses for insurance claims and benefits ▪ CZ and SK: PBT growth supported by
Slide 9: Combined ratio (P&C) at 95.2%
COMBINED RATIO (P&C) AT 95.2% Overall stable development P&C Combined Ratio development Overview by segments (y-o-y development net, %) ▪ Overall CoR development in Q1 fully in line with targeted +0.5%p +4.9%p -1.3%p -0.1%p 0.0%p -7.9%p CoR of ~95% for 2021 100.1 100.5 ▪ Strong CoR improvements in S
Slide 10: Investment split and bond portfolio overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW No substantial changes to investment strategy 3M 2021: Total €37.1bn Bond portfolio by rating1 in % 4.4% 1.5% 9.6% AAA AA A BBB Other 3M 2021 8.8 30.3 34.7 21.6 4,6 6.9% 12M 2020 9.0 30.0 35.4 21.6 4.0 70.5% 7.1% Bond portfolio by issuer in % 3M 2021 52.5
Slide 11: Financial result up by 29.3%
FINANCIAL RESULT UP BY 29.3% Less depreciation of investments and losses from disposal of investments compared to 3M 2020 in EUR ‘000 3M 2021 3M 2020 +/- % Current income 226,231 240,118 -5.8 ▪ Decrease in current income (-€13.9mn) not fully off-set by Income from appreciations 4,826 3,892 24.0 incr
Slide 12: Executive summary & outlook 2021
EXECUTIVE SUMMARY & OUTLOOK 2021 End of pandemic not yet foreseeable – global macroeconomic uncertainty remains high ▪ Excellent Q1 2021 result for the current environment ▪ Solid premium development despite COVID-19 ▪ Double-digit net profit growth with annualised earnings per share of €3.09 (+15.3
Slide 13: Solvency data YE 2020
HIGHLIGHTS FINANCIALS & INVESTMENTS SOLVENCY DATA YE 2020 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 13 VIG VIENNA INSURANCE GROUP
Slide 14: Solvency ratio of VIG Group as of YE 2020 at 238%
SOLVENCY RATIO OF VIG GROUP AS OF YE 2020 AT 238% Solvency Position YE 2020 compared to YE 2019 VIG AG in €mn 31.12.2019 31.12.2020 in €mn Solvency capital requirement 3 652 3 688 Market risk 3 294 3 133 238% Counterparty default risk 353 330 YE 2020 Life underwriting risk 1 497 1 410 210% Health un
Slide 15: Solvency capital requirement
SOLVENCY CAPITAL REQUIREMENT Allocation of Solvency Capital Requirement calculated with the Partial Internal Model ▪ Market risk accounts for 60% of total ▪ Life underwriting risk contributes to the ▪ Operational risk ranks third with 8% of solvency capital requirement total solvency capital require
Slide 16: Own funds (I)
OWN FUNDS (I) Composition of Own Funds as of 31.12.2020 and uptake capacities for capital measures * in €mn €8 780 mn 2 500 0% 296 296 1 652 17% 2 000 1% 1 770 1 759 1 500 Tier 3 Tier 2 1 000 82% Tier 1 - restricted Tier 1 - unrestricted 1 464 500 325 118 29 0 Tier 1 - restricted Tier 2 Tier 3 VIG c
Slide 17: Own funds (II)
OWN FUNDS (II) Own Funds 2019 compared to Own Funds 2020 in €mn 9 500 9 000 -294 8 500 1 270 8 000 -96 242 7 500 8 780 7 000 7 657 6 500 6 000 Solvency II Own Funds IFRS surplus Planned dividends Revaluation differences Deferred taxes Solvency II Own Funds 2019 2020 17 SOLVENCY OVERVIEW 2020 VIG VIE
Slide 18: Sensitivity analysis
SENSITIVITY ANALYSIS Market Sensitivities as of 31.12.2020 23.8% -2.3% -11.5% -15.3% -50.0% Interest rate curve Interest rate curve Standard equity +100bps on corporate Rating downshift +100bps -100bps -20% bonds spreads -1 notch ∆ Solvency ratio Interest rate 100 basis points shift of the liquid pa
Slide 19: Appendix 1: Segments
HIGHLIGHTS FINANCIALS & INVESTMENTS SOLVENCY DATA YE 2020 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 19 VIG VIENNA INSURANCE GROUP
Slide 20: Austria
AUSTRIA Increased PBT and improved CoR GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -2.2% Gross premiums written 1,334.1 1,364.8 -2.2 ▪ Premium income down by €30.7mn Net earned premiums 848.9 896.7 -5.3 mainly due to the decreased single 1,365 1,334 Financial result* 150.6 133.4 12.9 premium lif
Slide 21: Czech Republic
CZECH REPUBLIC Positive premium and profit development GWP development (€mn) €mn 3M 2021 3M 2020 +/- % +3.0% Gross premiums written 479.6 465.8 3.0 ▪ Premium growth (+€13.9mn) driven by 480 Net earned premiums 342.4 342.8 -0.1 MTPL, casco and other property 466 Financial result* 21.4 21.3 0.3 85 Oth
Slide 22: Slovakia
SLOVAKIA Improved CoR supports profit growth GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -12.7% Gross premiums written 191.8 219.7 -12.7 ▪ Premiums down by €27.9mn mainly 220 Net earned premiums 136.5 167.3 -18.4 driven by declining life business Financial result 9.7 9.5 1.4 42 192 Other income
Slide 23: Poland
POLAND Favourable premium and profit development GWP development (€mn) €mn 3M 2021 3M 2020 +/- % +3.8% Gross premiums written 325.3 313.5 3.8 ▪ Premium growth of €11.8mn driven 325 Net earned premiums 237.7 235.7 0.8 mainly by other property (+€7.8mn) and 313 Financial result 10.9 9.0 20.2 life sing
Slide 24: Romania
ROMANIA Roughly 51% premium increase in health insurance GWP development (€mn) €mn 3M 2021 3M 2020 +/- % +16.1% Gross premiums written 146.2 125.9 16.1 ▪ Sound premium growth of €20.3mn 146 Net earned premiums 110.0 90.5 21.5 coming from life insurance single Financial result 5.8 4.2 40.7 premium (+
Slide 25: Baltic states
BALTIC STATES Double-digit profit growth GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -0.3% Gross premiums written 130.6 131.0 -0.3 ▪ Premium income stable compared to the 131 Net earned premiums 99.4 96.7 2.8 same period of last year 131 Financial result 2.3 0.2 >100 Other income 1.5 1.1 32.0 ▪
Slide 26: Hungary
HUNGARY FX adjusted premium growth of +4.6% GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -1.8% Gross premiums written 96.9 98.7 -1.8 ▪ Currency-related decline in premiums 99 Net earned premiums 56.8 62.7 -9.3 97 ▪ PBT stable (+€0.5mn) Financial result 0.7 1.7 -61.6 MTPL 13 Other income 3.5 3.7 -
Slide 27: Bulgaria
BULGARIA Improved CoR and financial result support profit growth GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -7.5% Gross premiums written 57.6 62.2 -7.5 ▪ Decrease in premium income by 62 Net earned premiums 40.1 40.0 0.1 €4.6mn mainly coming from other Financial result 3.6 3.2 14.1 property (-€
Slide 28: Turkey/Georgia
TURKEY/GEORGIA FX adjusted premium growth of 24.1% GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -4.8% Gross premiums written 68.3 71.7 -4.8 ▪ Premiums down by €3.4mn; 72 Net earned premiums 27.7 32.0 -13.6 FX adjusted premium growth of 24.1% 68 Financial result 3.3 2.3 42.6 MTPL 11 Other income 7
Slide 29: Remaining CEE
REMAINING CEE Development mainly impacted by Ukraine and Serbia GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -2.4% Gross premiums written 123.8 126.8 -2.4 ▪ Remaining CEE: Albania (incl. Kosovo), 127 Net earned premiums 83.8 92.2 -9.1 Bosnia-Herzegovina, Croatia, Moldova, 124 North Macedonia, Ser
Slide 30: Other Markets
OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 3M 2021 3M 2020 +/- % -0.1% Gross premiums written 77.3 77.4 -0.1 ▪ Premium income stable compared to 77 Net earned premiums 62.2 63.0 -1.2 the same period last year 77 Financial result 4.2 3.6 19.4 Other income 15.8 15.8 0.0 ▪ Result
Slide 31: Central Functions
CENTRAL FUNCTIONS Stable development in 3M 2021 GWP development (€mn) €mn 3M 2021 3M 2020 +/- % +8.9% Gross premiums written 526.8 483.9 8.9 ▪ Central Functions include VIG Holding, 527 Net earned premiums 371.0 361.1 2.7 VIG Re, Wiener Re, VIG Fund, corporate Financial result* -49.0 -69.2 -29.2 IT
Slide 32: Appendix 2: Financials
HIGHLIGHTS FINANCIALS & INVESTMENTS SOLVENCY DATA YE 2020 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 32 VIG VIENNA INSURANCE GROUP
Slide 33: 3M 2021 Key Financials
3M 2021 KEY FINANCIALS Overview of KPIs Net result for the period after taxes ROE before taxes and Earnings per share (€) and non-controlling interest (€mn) non-controlling interest (%) 99 11.1 11.6 3.09 83 86 9.3 2.61 2.68 3M 2019 3M 2020 3M 2021 3M 2019 3M 2020 3M 2021 3M 2019 3M 2020 3M 2021 33 A
Slide 34: 3M 2021 Balance Sheet
3M 2021 BALANCE SHEET IFRS (€mn) €mn 31.03.2021 31.12.2020 +/- % Intangible assets (incl. Right-of-Use Assets) 1,906 1,918 -0.6 Investments 34,597 34,901 -0.9 Unit- and index-linked investments 8,364 7,968 5.0 Reinsurers’ share in underwriting provisions 1,456 1,396 4.2 Receivables 1,912 1,699 12.5
Slide 35: Equity development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) -0.5% 100 -10 -112 5,286 5,262 -1 0 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M 2020 the period changes gains and losses payment of 3M 2021 35 APPENDIX 2: FINANCIALS VIG VIENNA INSURANCE GROUP
Slide 36: 3M 2021 Premiums by business lines and country (I)
3M 2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % Austria 110.9 112.1 -1.0 103.9 100.8 3.0 604.0 583.3 3.5 Czech Republic 84.6 79.2 6.8 64.2 60.9 5.4 152.7 144.3 5.8 Slovakia 40.8 41.6 -1.9 27.1 2
Slide 37: 3M 2021 Premiums by business lines and country (II)
3M 2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % Austria 339.2 342.0 -0.8 57.8 111.5 -48.2 118.3 115.1 2.8 Czech Republic 165.5 167.4 -1.1 7.9 9.5 -16.8 4.9 4.6 6.5 Slovakia 41.8 44.3 -5.8
Slide 38: 3M 2021 Country overview GWP / PBT / Combined Ratio
3M 2021 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net (in %) 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- % 3M 2021 3M 2020 +/- %p Austria 1,334.1 1,364.8 -2.2 54.4 41.4 31.4 94.2 95.5 -1.3 Czech Republic 479.6 465.8 3.0 47.4 45.5 4.3 94.4 94.6
Slide 39: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (31 Mar. 2021) 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
Slide 40: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region* North America 35% Continental Europe 25% ~72% ~28% Austria 24% UK & Ireland 13% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) * Split of identified shares, May 2020 (Source: Investor Update) 40 APPENDIX 2: FINANCIA
Slide 41: Appendix 2: Financials
41 APPENDIX 2: FINANCIALS VIG VIENNA INSURANCE GROUP
Slide 42: Contact details / Financial calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2021* Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 Date Event nina.higatzberger@vig.com sylvia.machherndl@vig.com 09 Mar. 2021 P
Slide 43: 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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