Vienna Insurance Group Ag · VIE:VIG

Vienna Insurance — H1 2018 Earnings Presentation

51 slides from Vienna Insurance's earnings presentation, Aug 28, 2018

  1. Slide 1: 6M 2018 Results Presentation

    6M 2018 RESULTS PRESENTATION Vienna, 28 August 2018

  2. Slide 2: 6M 2018 Results Conference Call: Presenting team and topics

    6M 2018 RESULTS CONFERENCE CALL Presenting team and topics Attending Topics Members of the Board  Elisabeth Stadler, CEO  Key developments p. 3  Liane Hirner, CFO  Financials & Investments p. 9  Judit Havasi  Outlook p. 18  Peter Höfinger  Appendix 1: Segments p. 20  Appendix 2: Financials

  3. Slide 3: Key Developments

    KEY DEVELOPMENTS FINANCIALS & INVESTMENTS OUTLOOK APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 3 VIG VIENNA INSURANCE GROUP

  4. Slide 4: Highlights

    HIGHLIGHTS Strong operating performance in the first half-year of 2018 despite impairment of goodwill in Romania Gross written premium Profit before taxes € 5,150.3mn € 232.7mn GWP up 3.6% compared to 6M 2017 PBT increased by 5.5%  Current premium business: +5.7%  CEE profit growth impacted by €50

  5. Slide 5: Key Developments in the First Half-Year of 2018

    KEY DEVELOPMENTS IN THE FIRST HALF-YEAR OF 2018 Overview VIG well on track in implementing Agenda 2020 initiatives Erste  Mutual distribution agreement with Erste Group Acquisitions  Poland Group extended until 2033 Acquisition of Gothaer cooperation  Bosnia and Herzegovina Acquisition of Merkur

  6. Slide 6: VIG Purchases Gothaer Insurance Company in Poland

    VIG PURCHASES GOTHAER INSURANCE COMPANY IN POLAND Another decisive step towards achieving the goal of a market share of at least 10% in Poland Key facts Portfolio split 2017*  More than 632,000 customers Other 14%  Around 2 million insurance policies Personal Motor  530 employees 9% 59%  Strong

  7. Slide 7: VIG Is Included in Two Sustainability Indices

    VIG IS INCLUDED IN TWO SUSTAINABILITY INDICES Sustainability forms an integral part of the Group’s corporate DNA Austria’s first sustainability index. It is comprised of listed Austrian companies that are leaders in terms of social and environmental performance. VIG shares have been included in this

  8. Slide 8: Managing Board as of July 2018

    MANAGING BOARD AS OF 1 JULY 2018 Fotos: Ian Ehm, Thomas Pitterle Elisabeth Stadler, CEO Franz Fuchs Judit Havasi Liane Hirner, CFO Peter Höfinger Peter Thirring Mgmt. of the VIG Group, Performance Planning & Controlling Finance & Accounting Corporate and Large Group external income General Secretari

  9. Slide 9: Financials & Investments

    KEY DEVELOPMENTS FINANCIALS & INVESTMENTS OUTLOOK APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 9 VIG VIENNA INSURANCE GROUP

  10. Slide 10: Strong Operating Performance Despite Impairment in Romania

    STRONG OPERATING PERFORMANCE DESPITE IMPAIRMENT IN ROMANIA 6M 2018 Income statement GWP development (€mn) €mn 6M 2018 6M 2017 +/- % Gross premiums written 5,150.3 4,972.4 3.6  Premiums increased by 3.6%; +3.6% adjusted for life single premium Net earned premiums 4,354.9 4,219.0 3.2 5,150 Financial

  11. Slide 11: Q2 2018 Income Statement

    Q2 2018 INCOME STATEMENT IFRS (€mn) €mn Q2 2018 Q2 2017 +/- % Gross premiums written 2,324.2 2,252.9 3.2  Premiums up by 3.2% due to positive development of other Net earned premiums 2,151.8 2,066.2 4.1 property and motor Financial result1 272.9 240.6 13.4 Other income 33.1 30.3 9.2  Financial res

  12. Slide 12: Gross Written Premiums of €5.2bn Up 3.6%

    GROSS WRITTEN PREMIUMS OF €5.2bn UP 3.6% Overview by segments Gross written premiums (€mn; y-o-y chg.)  Premium growth in all segments  Adjusted for life single-premium business, overall premium growth of 5.7% +0.1%  CZ: Premium growth driven by life regular premium business (+€27mn) and other +7

  13. Slide 13: Excellent Premium Development, Apart from Planned Reduction of Life Single Premium

    EXCELLENT PREMIUM DEVELOPMENT, APART FROM ONGOING PLANNED REDUCTION OF LIFE SINGLE PREMIUM BUSINESS Gross written premiums by lines of business (€mn; y-o-y chg.); incl. Central Functions MTPL Casco Other property Total premiums +3.6% 6M 2017 717 555 2,246 5,150 +7.9% +9.0% +6.3% 4,972 773 MTPL 717 6

  14. Slide 14: Group Profit Before Taxes of €232.7mn Up 5.5%

    GROUP PROFIT BEFORE TAXES OF €232.7mn UP 5.5% Overview by segments Result before taxes (€mn; y-o-y change)  CZ: Profit growth driven by CoR improvement and better financial result  RO: impairment test during the period triggered by changing market environment; review of planning data and conservat

  15. Slide 15: Combined Ratio (P&C) Improved to 96.3%

    COMBINED RATIO (P&C) IMPROVED TO 96.3% Positive development driven by improved claims ratio in AT, CZ and PL P&C Combined Ratio development Overview by segments (6M y-o-y development net, %)  CZ: improved cost and claims ratio -0.5%p +3.4%p -0.6%p -3.3%p -1.8%p -0.7%p  SK: CoR increase driven by c

  16. Slide 16: Investment Split and Bond Portfolio Overview

    INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Bond portfolio split by rating expected to change in Q3 due to rating upgrade of CZ 6M 2018: Total €37.4bn Bond portfolio by rating1 4.3% 1.1% 6.2% AAA AA A BBB Other 6M 2018 10% 23% 46% 16% 5% 6.7% 12M 2017 10% 22% 45% 17% 5% 5.8% 66.1% Bond portfolio by

  17. Slide 17: Financial Result Increased by 4.7%

    FINANCIAL RESULT INCREASED BY 4.7% Current income and income from disposal of investments incl. at equity consolidated companies Total 6M 6M Income +/- % 2018 2017 Current income 668,209 667,002 0.2  Financial result up by €22.9mn incl. at equity consolidated companies Income from appreciations 7,0

  18. Slide 18: Outlook

    KEY DEVELOPMENTS FINANCIALS & INVESTMENTS OUTLOOK APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 18 VIG VIENNA INSURANCE GROUP

  19. Slide 19: Outlook 2020 and Targets for 2018 Unchanged

    OUTLOOK 2020 AND TARGETS FOR 2018 UNCHANGED Despite a more cautious stance towards Romania, VIG maintains its guidance Gross written premium Profit before taxes Combined Ratio > € 10bn € 500mn - € 520mn 95% Based on the positive macroeconomic In line with continuous premium growth, VIG VIG will furt

  20. Slide 20: Appendix 1: Segments

    KEY DEVELOPMENTS FINANCIALS & INVESTMENTS OUTLOOK APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 20 VIG VIENNA INSURANCE GROUP

  21. Slide 21: Austria

    AUSTRIA Merger of Wiener Städtische and S-Versicherung progressing according to plan GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +0.1% Gross premiums written 2,170.0 2,167.0 0.1  Except for life, premium growth in all lines 2,167 2,170 Net earned premiums 1,611.5 1,609.6 0.1 of business; adjust

  22. Slide 22: Czech Republic

    CZECH REPUBLIC Strong premium and profit growth GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +7.2% Gross premiums written 881.7 822.2 7.2  Premium growth driven by life regular 882 Net earned premiums 641.1 593.3 8.0 premium business (+€27mn) and other Financial result1 56.5 48.2 17.3 property (

  23. Slide 23: Slovakia

    SLOVAKIA Premiums up 4.3% adjusted for life single premium business GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +0.7% Gross premiums written 401.8 399.2 0.7  Premium increase in all lines of business, 399 402 Net earned premiums 323.6 322.9 0.2 except for life single premium business Financial

  24. Slide 24: Poland

    POLAND Double-digit premium growth in non-life and health GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +2.3% Gross premiums written 455.2 445.0 2.3  Premium growth driven by motor lines of 455 Net earned premiums 338.1 358.1 -5.6 business (+€37mn) and other property 445 (+€22mn) more than offset

  25. Slide 25: Romania

    ROMANIA Goodwill impairment of €50.1mn in Q2 2018 GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +5.5% Gross premiums written 272.7 258.5 5.5  Impairment test during the period triggered 273 Net earned premiums 194.0 188.9 2.7 by changing market environment; review 258 Financial result 6.3 6.6 -4.

  26. Slide 26: Baltic States

    BALTIC STATES Break-even reached in the first half-year 2018 GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +18.8% Gross premiums written 193.2 162.7 18.8  Strong premium growth in all lines of 193 Net earned premiums 132.1 120.9 9.3 business Financial result 2.7 3.0 -10.9 Other income 0.5 0.5 0.9

  27. Slide 27: Hungary

    HUNGARY Positive top- and bottom-line development GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +2.0% Gross premiums written 125.6 123.1 2.0  Premium growth driven by MTPL and 126 Net earned premiums 85.8 78.6 9.1 health business 123 Financial result 3.3 3.2 3.9 MTPL 13 15 Other income 3.5 0.9 >1

  28. Slide 28: Bulgaria

    BULGARIA Strong top-line growth GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +5.8% Gross premiums written 87.3 82.5 5.8  Premium increase driven by Casco 87 Net earned premiums 64.4 56.0 14.9 83 Financial result 5.1 5.5 -6.6  Result before taxes nearly at same level 11 as last year 11 Other inc

  29. Slide 29: Turkey/Georgia

    TURKEY/GEORGIA Developments driven by FX situation in Turkey GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +2.1% Gross premiums written 116.5 114.1 2.1  Premiums as well as the result mainly 117 Net earned premiums 47.5 50.9 -6.7 impacted by TRY FX effects 114 Financial result 3.3 4.4 -23.6 23 Ot

  30. Slide 30: Remaining CEE

    REMAINING CEE Strong performance in the first half-year 2018 GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +2.3% Gross premiums written 185.1 181.0 2.3  Remaining CEE includes Albania (incl. 185 Net earned premiums 133.4 121.8 9.5 Kosovo), Bosnia & Herzegovina, Croatia, 181 Macedonia, Moldova, Se

  31. Slide 31: Other Markets

    OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +8.6% Gross premiums written 149.7 137.9 8.6  Premium increase driven by other property 150 Net earned premiums 126.5 115.3 9.7 in Germany and life single premium Financial result 10.1 10.9 -7.1 business in Liec

  32. Slide 32: Central Functions

    CENTRAL FUNCTIONS Substantial improvement driven by financial result and other expenses GWP development (€mn) €mn 6M 2018 6M 2017 +/- % +11.0% Gross premiums written 819.7 738.2 11.0  Central Functions include VIG Holding, 820 Net earned premiums 653.2 600.1 8.9 VIG Re, VIG Fund, the non-profit Fin

  33. Slide 33: Appendix 2: Financials

    KEY DEVELOPMENTS FINANCIALS & INVESTMENTS OUTLOOK APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 33 VIG VIENNA INSURANCE GROUP

  34. Slide 34: 6M 2018 Key Financials

    6M 2018 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and non-controlling interest (€mn) ROE after tax and minorities (%) 288 298 7.3 7.2 7.2 6.4 147 137 2016 2017 6M 17 6M 18 2016 2017 6M 17 6M 18 EPS1 (€) Book value per share (€) 2.23 2.20 35.66 37.75 36.04 36.59 2.16 2.04

  35. Slide 35: Equity Development in 6M 2018

    EQUITY DEVELOPMENT IN 6M 2018 Change in Group Shareholders’ Equity (€mn) -2% 174 -37 -108 6,044 5,923 -11 -140 Equity as of 12M17 Profit for the period Currency changes AFS unrealised Dividend payment Other Equity as of 6M18 gains and losses 35 APPENDIX 2: FINANCIALS VIG VIENNA INSURANCE GROUP

  36. Slide 36: 6M 2018 Balance Sheet

    6M 2018 BALANCE SHEET IFRS (€mn) €mn 30.06.2018 31.12.2017 +/- % Intangible assets 1,895 1,971 -3.8 Investments 36,193 35,933 0.7 Unit- and index-linked investments 8,742 9,061 -3.5 Reinsurers’ share in underwriting provisions 1,134 1,066 6.3 Receivables 1,666 1,476 12.9 Tax receivables and advance

  37. Slide 37: 6M 2018 Financial Result by Segment (I)

    6M 2018 FINANCIAL RESULT BY SEGMENT (I) IFRS (€'000) Austria Czech Republic Slovakia Poland 6M 6M 6M 6M 6M 6M 6M 6M Income +/- % +/- % +/- % +/- % 2018 2017 2018 2017 2018 2017 2018 2017 Current income 355,306 365,902 -2.9 50,239 49,796 0.9 21,722 21,648 0.3 10,759 11,873 -9.4 Income from appreciati

  38. Slide 38: 6M 2018 Financial Result by Segment (II)

    6M 2018 FINANCIAL RESULT BY SEGMENT (II) IFRS (€'000) Romania Baltic states Hungary Bulgaria 6M 6M 6M 6M 6M 6M 6M 6M Income +/- % +/- % +/- % +/- % 2018 2017 2018 2017 2018 2017 2018 2017 Current income 9,223 7,558 22.0 3,508 3,447 1.8 2,713 2,767 -2.0 2,133 1,964 8.6 Income from appreciations 2 102

  39. Slide 39: 6M 2018 Financial Result by Segment (III)

    6M 2018 FINANCIAL RESULT BY SEGMENT (III) IFRS (€'000) Turkey / Georgia Remaining CEE Other Markets 6M 6M 6M 6M 6M 6M Income +/- % +/- % +/- % 2018 2017 2018 2017 2018 2017 Current income 4,951 4,753 4.2 17,674 17,305 2.1 10,290 10,331 -0.4 Income from appreciations 197 843 -76.6 33 670 -95.1 12 16

  40. Slide 40: 6M 2018 Financial Result by Segment (IV)

    6M 2018 FINANCIAL RESULT BY SEGMENT (IV) IFRS (€'000) Central Functions Consolidation Total 6M 6M 6M 6M 6M 6M Income +/- % +/- % +/- % 2018 2017 2018 2017 2018 2017 Current income 190,017 174,902 8.6 -31,409 -27,981 12.3 647,126 644,265 0.4 Income from appreciations 114 132 -13.6 0 0 7,060 16,341 -5

  41. Slide 41: 6M 2018 Development for P&C Business According to VAG

    6M 2018 DEVELOPMENT FOR P&C BUSINESS ACCORDING TO VAG (AUSTRIAN INSURANCE SUPERVISION ACT) IFRS (€mn) €mn 6M 2018 6M 2017 +/- % Gross direct premiums written 2,995.35 2,811.79 6.5 Gross direct1 292.86 235.44 24.4 Underwriting result 226.78 169.37 33.9 Financial result 66.08 66.07 0.0 Direct reinsura

  42. Slide 42: 6M 2018 Development for Life Business According to VAG

    6M 2018 DEVELOPMENT FOR LIFE BUSINESS ACCORDING TO VAG (AUSTRIAN INSURANCE SUPERVISION ACT) IFRS (€mn) €mn 6M 2018 6M 2017 +/- % Gross direct premiums written 1,777.87 1,823.89 -2.5 Gross direct 224.96 172.00 30.8 Underwriting result 0.00 0.00 Financial result 0.00 0.00 Direct reinsurance cessions -

  43. Slide 43: 6M 2018 Development for Health Business According to VAG

    6M 2018 DEVELOPMENT FOR HEALTH BUSINESS ACCORDING TO VAG (AUSTRIAN INSURANCE SUPERVISION ACT) IFRS (€mn) €mn 6M 2018 6M 2017 +/- % Gross direct premiums written1 252.06 236.36 6.6 Gross direct 19.87 21.81 -8.9 Underwriting result 0.00 0.00 Financial result 0.00 0.00 Direct reinsurance cessions -0.01

  44. Slide 44: 6M 2018 Premiums by Business Lines and Country (I)

    6M 2018 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- % Austria 188.1 183.0 2.8 162.5 157.9 2.9 822.1 809.9 1.5 Czech Republic 149.4 141.8 5.3 123.5 116.3 6.2 264.4 242.7 8.9 Slovakia 79.5 75.7 5.0 55.0

  45. Slide 45: 6M 2018 Premiums by Business Lines and Country (II)

    6M 2018 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- % Austria 643.5 647.8 -0.7 144.3 166.6 -13.4 209.6 201.7 3.9 Czech Republic 305.8 279.0 9.6 31.6 35.9 -11.9 6.9 6.5 5.8 Slovakia 85.5 83.4 2.

  46. Slide 46: 6M 2018 Country Overview GWP / PBT / Combined Ratio

    6M 2018 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- % 6M 2018 6M 2017 +/- %p Austria 2,170.0 2,167.0 0.1 76.7 77.5 -1.1 95.3% 95.8% -0.5 Czech Republic 881.7 822.2 7.2 84.9 76.6 10.8 94.6% 96.5% -1.

  47. Slide 47: 6M 2018 Exchange Rates

    6M 2018 EXCHANGE RATES Balance Sheet: period-end exchange rate / P&L: average exchange rate 2018 2017 Country Currency Balance Sheet P&L Balance Sheet P&L EUR EUR EUR EUR Albania EUR/ALL 125.9300 129.9487 132.5900 135.1016 Belarus EUR/BYN 2.3142 2.4076 2.2088 2.0517 Bosnia & Herzegovina EUR/BAM 1.95

  48. Slide 48: VIG Share (I)

    VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Current analyst recommendation split Current listings Ticker Rating Major Indices SELL Vienna  Vienna Stock Exchange: VIG Standard & Poor´s: ATX 3 BUY Prague  Bloomberg: VIG AV / VIG CP A+, stable outlook A

  49. Slide 49: VIG Share (II)

    VIG SHARE (II) Shareholder structure Free float split by region1 Continental Europe 30% Austria 28% ~70% ~30% North America 28% UK & Ireland 11% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) 1 Split of identified shares, May 2018 (Source: CMi2i) 49 APPENDIX 2: FINANCIALS VIG VIE

  50. Slide 50: Contact Details / Financial Calendar

    CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2018* Head of Investor Relations Investor Relations Manager Date Event Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 22 Mar. 2018

  51. Slide 51: 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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