Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — Q1 2022 Earnings Presentation
37 slides from Vienna Insurance's earnings presentation, May 17, 2022
Slide 1: 3M 2022 Results Presentation
3M 2022 RESULTS PRESENTATION Liane Hirner, CFRO Peter Höfinger, Member of the Managing Board Vienna, 17 May 2022
Slide 2: Highlights
HIGHLIGHTS FINANCIALS & INVESTMENTS SOLVENCY DATA YE 2021 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 2 VIG VIENNA INSURANCE GROUP
Slide 3: Results Highlights
RESULTS HIGHLIGHTS Double-digit premium growth rate in the first quarter Gross written premiums Profit before taxes Combined Ratio € 3,454.7mn (+11.2%) € 123.8mn (-3.3%) 94.6% (95.2%) ▪ Strongest contribution by segment coming ▪ Profit before taxes impacted by ▪ Claims ratio improved to 62.2% (62.4%
Slide 4: Financials & Investments
HIGHLIGHTS FINANCIALS & INVESTMENTS SOLVENCY DATA YE 2021 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 4 VIG VIENNA INSURANCE GROUP
Slide 5: Strong Premium and Combined Ratio Development
STRONG PREMIUM AND COMBINED RATIO DEVELOPMENT 3M 2022 Income statement €mn 3M 2022 3M 2021 +/- % Gross premiums written 3,454.7 3,106.8 11.2 ▪ Strong premium growth in all segments and lines of Net earned premiums 2,622.0 2,416.3 8.5 business Financial result excl. result from shares in at equity 14
Slide 6: Top-line up by 11.2% based on growth in all segments
TOP-LINE UP BY 11.2% BASED ON GROWTH IN ALL SEGMENTS Gross written premiums (€mn; y-o-y change) 1,334 Austria +2.8% 1,371 ▪ Excellent start into the year leads to GWP increase of €347.9mn 480 ▪ Strongest contribution to double-digit growth rate in Czech Czech Republic +21.4% Republic (+€102.8mn) com
Slide 7: Strong growth in all lines of business
STRONG GROWTH IN ALL LINES OF BUSINESS Gross written premiums by lines of business (€mn; y-o-y change); incl. Group Functions MTPL Casco Other property Total premiums +11.2% 3M 2021 417 360 1,663 3,455 218 +18.8% +8.9% +15.2% 3,107 234 Health 196 Life single 221 736 3M 2022 496 392 1,916 Life regula
Slide 8: Group result before taxes of €123.8mn slightly down by 3.3%
GROUP RESULT BEFORE TAXES OF €123.8MN SLIGHTLY DOWN BY 3.3% Result before taxes (€mn; y-o-y change) 54.4 ▪ AT: result before taxes down (-€31.4mn) due to declined financial Austria -57.8% result impacted by precautionary measures related to Russian 23.0 investment exposure 47.4 Czech Republic +5.9%
Slide 9: Combined ratio P&C at 94.6%
COMBINED RATIO P&C AT 94.6% Overview Group and segments (y-o-y development net, %) ▪ One NatCat event (storm) in 3M 2022 with ~€30mn net impact ▪ Strong combined ratio improvement in the segment Austria due to better claims and cost ratio ▪ Slightly improved combined ratio in the Czech Republic and
Slide 10: Financial Result
FINANCIAL RESULT Stable current income in EUR ‘000 3M 2022 3M 2021 +/- % Current income 226,737 226,231 0.2 ▪ Higher income from appreciations and income from disposal of Income from appreciations 13,468 4,826 >100 investments (+€22.4mn) offset increased depreciation of Income from disposal of inves
Slide 11: Investment Split and Bond Portfolio Overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Stable portfolio mix Investment split Bond portfolio by rating1 4.5% 3M 2022 8.8% 30.9% 32.0% 22.4% 5.9% 2.5% 10.2% 12M 2021 9.1% 29.6% 33.8% 22.0% 5.5% 5.8% €36.1bn AAA AA A BBB Other 8.3% in 3M 2022 68.7% Bond portfolio by issuer 3M 2022 53.5% 5.3% 17.8
Slide 12: Executive Summary Q1 2022
EXECUTIVE SUMMARY Q1 2022 Update on Russia and Ukraine ▪ Russian investment exposure of ~€190mn excluding cash deposits with Sberbank ▪ Business exposure Ukraine: Net Asset Value ~€57mn Good start into 2022 ▪ Positive top-line performance in all lines of business and segments ▪ Double-digit premium
Slide 13: Solvency Data YE 2021
HIGHLIGHTS FINANCIALS & INVESTMENTS SOLVENCY DATA YE 2021 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 13 VIG VIENNA INSURANCE GROUP
Slide 14: Solvency ratio of VIG Group as of YE 2021 improved to 250%
SOLVENCY RATIO OF VIG GROUP AS OF YE 2021 IMPROVED TO 250% Solvency Position YE 2021 compared to YE 2020 VIG AG in EUR million 31.12.2020 31.12.2021 in EUR million Solvency capital requirement 3 688 4 120 Market risk 3 133 3 556 250% Counterparty default risk 330 382 YE 2021 Life underwriting risk 1
Slide 15: Solvency Capital Requirement
SOLVENCY CAPITAL REQUIREMENT Allocation of Solvency Capital Requirement calculated with the Partial Internal Model ▪ Market risk accounts for 62% of total ▪ Life underwriting risk contributes to the ▪ Operational risk ranks third with 7% of solvency capital requirement total solvency capital require
Slide 16: Own Funds (I)
OWN FUNDS (I) Composition of Own Funds as of 31.12.2021 and uptake capacities for capital measures in EUR million €10 281mn 3 000 1% 1 655 547 547 14% 2 500 4% 2 070 1 974 2 000 Tier 3 1 500 Tier 2 81% Tier 1 - restricted 1 000 Tier 1 - unrestricted 1 427 610 500 415 64 0 Tier 1 - restricted Tier 2
Slide 17: Own Funds (II)
OWN FUNDS (II) Own Funds 2020 compared to Own Funds 2021 in EUR million 11 000 10 500 -372 10 281 10 000 1 631 9 500 -165 9 000 408 8 780 8 500 8 000 7 500 Solvency II Own IFRS surplus Planned dividends Revaluation differences Deferred taxes Solvency II Own Funds 2020 Funds 2021 17 SOLVENCY II OVERV
Slide 18: Sensitivity Analysis
SENSITIVITY ANALYSIS Market Sensitivities as of 31.12.2021 12.5% 12.8% -6.7% -8.1% -13.8% Interest rate curves Interest rate curves Standard equity Spread on government bonds Spread on corporate bonds +50bps -50bps -25% +50bps +50bps ∆ Solvency ratio Interest rate 50 basis points shift of the liquid
Slide 19: Appendix 1: Segments
HIGHLIGHTS FINANCIALS & INVESTMENTS SOLVENCY DATA YE 2021 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 19 VIG VIENNA INSURANCE GROUP
Slide 20: Austria
AUSTRIA Precautionary measures impact profit GWP development (€mn) P&L Comments €mn 3M 2022 3M 2021 +/- % +2.8% Gross premiums written 1,371.0 1,334.1 2.8 ▪ Strong premium growth in other property 1,371 1,334 Net earned premiums 868.2 848.9 2.3 (+€28.3mn) and motor (+€8.0mn) 122 Health 118 Financial
Slide 21: Czech Republic
CZECH REPUBLIC Favourable development in P&C supported by improved claims ratio GWP development (€mn) P&L Comments +21.4% €mn 3M 2022 3M 2021 +/- % Gross premiums written 582.5 479.6 21.4 ▪ Strong premium growth of €102.8mn mainly 582 Net earned premiums 390.7 342.4 14.1 coming from other property (
Slide 22: Poland
POLAND Decreased result before taxes due to lower financial result GWP development (€mn) P&L Comments +3.5% €mn 3M 2022 3M 2021 +/- % Gross premiums written 336.6 325.3 3.5 ▪ Premium growth of €11.2mn coming mainly 337 325 5 Net earned premiums 248.9 237.7 4.7 from other property (+€13.6mn) offsetti
Slide 23: Extended CEE
EXTENDED CEE Double-digit premium growth and solid result before taxes GWP development (€mn) P&L Comments +19.9% €mn 3M 2022 3M 2021 +/- % Gross premiums written 890.9 743.0 19.9 ▪ Extended CEE include Albania incl. Kosovo, 891 Net earned premiums 597.1 526.3 13.4 Baltic states, Bosnia & Herzegovina
Slide 24: Special Markets
SPECIAL MARKETS Lower result before taxes based on increased combined ratio GWP development (€mn) P&L Comments +4.5% €mn 3M 2022 3M 2021 +/- % Gross premiums written 152.1 145.5 4.5 ▪ Special Markets include Germany, Georgia, 152 146 Net earned premiums 82.0 89.9 -8.8 Liechtenstein, Turkey 15 Financ
Slide 25: Group Functions
GROUP FUNCTIONS Double-digit premium growth and positive development in result before taxes GWP development (€mn) P&L Comments +25.2% €mn 3M 2022 3M 2021 +/- % 660 Gross premiums written 659.6 526.8 25.2 ▪ Group Functions include VIG Holding, VIG Net earned premiums 438.1 371.0 18.1 Re, Wiener Re, V
Slide 26: Appendix 2: Financials
HIGHLIGHTS FINANCIALS & INVESTMENTS SOLVENCY DATA YE 2021 APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 26 VIG VIENNA INSURANCE GROUP
Slide 27: 3M 2022 Key Financials
3M 2022 KEY FINANCIALS Overview of KPIs Net result for the period after taxes Operating RoE (%) Earnings per share (€)* and non-controlling interest (€mn) 11.6 3.09 2.85 99 91 9.6 3M 2021 3M 2022 3M 2021 3M 2022 3M 2021 3M 2022 * Annualised figures 27 APPENDIX 2: FINANCIALS VIG VIENNA INSURANCE GROU
Slide 28: 3M 2022 Balance Sheet
3M 2022 BALANCE SHEET IFRS (€mn) €mn 31.03.2022 31.12.2021 +/- % Intangible assets 1,751 1,744 0.4 Right-of-Use assets 173 173 -0.3 Investments 33,589 34,810 -3.5 Investments of unit- and index-linked life insurance 8,027 8,525 -5.9 Reinsurers’ share in underwriting provisions 1,878 1,565 20.0 Recei
Slide 29: Equity Development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) -6.8% 94 20 -582 5,598 5,218 -3 91 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M 2021 the period changes gains and losses payment of 3M 2022 29 APPENDIX 2: FINANCIALS VIG VIENNA INSURANCE GROUP
Slide 30: 3M 2022 Premiums by Business Lines and Country (I)
3M 2022 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- % Austria 113.6 110.9 2.4 109.2 103.9 5.1 632.3 604.0 4.7 Czech Republic 95.8 84.6 13.3 77.5 64.2 20.8 208.2 152.7 36.4 Poland 73.4 76.9 -4.5 44.8 4
Slide 31: 3M 2022 Premiums by Business Lines and Country (II)
3M 2022 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- % Austria 337.0 339.2 -0.7 57.4 57.8 -0.6 121.5 118.3 2.7 Czech Republic 187.6 165.5 13.4 7.5 7.9 -4.9 5.9 4.9 21.0 Poland 42.0 41.2 2.0 33.0
Slide 32: 3M 2022 Country Overview GWP / PBT / Combined Ratio
3M 2022 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before tax Combined Ratio net (in %) 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- %p Austria 1,371.0 1,334.1 2.8 23.0 54.4 -57.8 92.9 94.2 -1.3 Czech Republic 582.5 479.6 21.4 50.2 47.4 5.9 94.1 94.4 -
Slide 33: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (13/5/2022) 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 AT
Slide 34: 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) 34 APPENDIX VIG VIENNA
Slide 35: Appendix
35 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 36: 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 37: 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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