Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — 6M 2024 Earnings Presentation
33 slides from Vienna Insurance's earnings presentation, Aug 28, 2024
Slide 1: 6M 2024 Results Presentation
6M 2024 RESULTS PRESENTATION Liane Hirner, CFRO Peter Höfinger, Deputy CEO Vienna, 28 August 2024
Slide 2: Highlights, Financials, Segments, Appendix
HIGHLIGHTS FINANCIALS SEGMENTS APPENDIX Please note that rounding differences may occur 2 VIG VIENNA INSURANCE GROUP
Slide 3: Excellent half-year performance of VIG
EXCELLENT HALF-YEAR PERFORMANCE OF VIG Top and bottom-line growth with improved combined ratio Insurance service revenue Profit before taxes P&C net combined ratio € 5,919.0mn € 481.0mn 93.3% ▪ Revenue up by 10.0% ▪ PBT increased by 3.9% ▪ Net COR improved by 0.7pp ▪ 6M 2023: € 5,380.4mn ▪ 6M 2023:
Slide 4: S&P confirms A+ rating with stable outlook
S&P CONFIRMES A+ RATING WITH STABLE OUTLOOK Revised S&P Capital Model Criteria S&P published updated research for VIG under revised model and affirmed A+ rating with stable outlook ▪ Solid capital buffers at the highest confidence level (99.99%), as per S&Ps updated risk-based capital model, support
Slide 5: Highlights, Financials, Segments, Appendix
HIGHLIGHTS FINANCIALS SEGMENTS APPENDIX Please note that rounding differences may occur 5 VIG VIENNA INSURANCE GROUP
Slide 6: Group income statement
GROUP INCOME STATEMENT 6M 2024 (€ mn) 6M 2024 6M 2023 +/- % ▪ Insurance service revenue up by € 538.6mn Insurance service result 585.0 550.8 6.2 primarily due to strong growth in P&C business Insurance service revenue - issued business 5,919.0 5,380.4 10.0 (Premium Allocation Approach) Insurance ser
Slide 7: Insurance service revenue of € 5.9 billion up by 10.0%
INSURANCE SERVICE REVENUE OF € 5.9 BILLION EURO UP BY 10.0% Insurance service revenue by segments; 6M 2024 (€ mn) ▪ AT: Solid insurance service revenue up by € 107.5mn coming 1,642.1 from non-life business (PAA) Austria +6.5% 1,749.6 ▪ CZ: Stable revenue growth based on positive development in the m
Slide 8: Insurance service revenue growth by lines of business
INSURANCE SERVICE REVENUE GROWTH IN NON-LIFE, HEALTH AND LIFE INSURANCE WITHOUT PROFIT PARTICIPATION Insurance service revenue by lines of business, incl. Group Functions; 6M 2024 (€ mn) MTPL Casco Other property Insurance service revenue +10.0% 5,919.0 6M 2023 1,023.5 859.6 2,728.1 372.1 5,380.4 45
Slide 9: Result before taxes grew by 3.9% to 481.0 million euro
RESULT BEFORE TAXES GREW BY 3.9% TO 481.0 MILLION EURO Result before taxes; 6M 2024 (€ mn) ▪ AT: Result before taxes up by € 7.0mn mainly due to volume 192.2 growth Austria +3.6% 199.1 ▪ CZ: Result before taxes decline by € 17.1mn due to the decrease in the life insurance result and an increased 114
Slide 10: P&C net combined ratio of 93.3%
P&C NET COMBINED RATIO OF 93.3% Discounting impact on claims ratio in 6M 2024 of 3.1% (12M 2023: 3.3%) ▪ Net insurance service expenses of € 3,794.6mn (6M23: € 3,325.1mn) / Net insurance service revenue of € 4,067.8mn (6M23: € 3,539.1mn) ▪ Slightly improved combined ratio compared to the previous ye
Slide 11: L/H contractual service margin & L/H new business
L/H CONTRACTUAL SERVICE MARGIN & L/H NEW BUSINESS 6M 2024 L/H CSM roll-forward (€ mn) L/H New Business (€ mn) -2.8% 13 -132 216 11 -19 € 216mn € 2,199mn 5,789 28 New Business PV NB -279 CSM premiums 5,627 9.8% CSM Net Change in New CSM Changes Other FX Effect CSM CSM Net New Business 01/01/2024 the
Slide 12: Total capital investment result
TOTAL CAPITAL INVESTMENT RESULT 6M 2024 (€ mn) 6M 2024 6M 2023 +/- % ▪ Total capital investment result slightly Total capital investment result 223.1 233.4 -4.4 decreased by 4.4% (down by € 10.2mn) Investment result 1,154.1 1,098.4 5.1 Interest revenue using the effective interest method 482.3 449.7
Slide 13: Investment split
INVESTMENT SPLIT Investments held at VIG’s own risk (excl. investments for unit- and index linked life insurance) Investment split Bond portfolio by rating1 3.3% 1.6% 12M 2023 12.2% 26.3% 32.5% 22.1% 7.0% 9.2% 0.1% 2.0% 6M 2024 12.2% 25.2% 32.5% 22.9% 7.3% 9.9% €35.4bn AAA AA A BBB Other in 6M 2024
Slide 14: Executive summary
EXECUTIVE SUMMARY Strong first half-year results give confidence in guidance Profit before taxes expected on the upper end of announced target range of EUR 825 to EUR 875 million in 2024 ▪ Strong business performance underpinned by top-line growth in both insurance service revenue (+10.0%) and gross
Slide 15: Highlights, Financials, Segments, Appendix
HIGHLIGHTS FINANCIALS SEGMENTS APPENDIX Please note that rounding differences may occur Segment overview contains data before consolidation 15 VIG VIENNA INSURANCE GROUP
Slide 16: Austria
AUSTRIA Positive developments in P&C business and overall profit growth Insurance Service P&L (€ mn) Comments Revenue (€ mn) 6M 2024 6M 2023 +/- % +6.5% Insurance service result 210.5 186.4 13.0 ▪ Insurance service revenue up by € 107.5mn 1,749.6 Insurance service revenue - issued business 1,749.6 1
Slide 17: Czech Republic
CZECH REPUBLIC Result before taxes impacted by increased combined ratio Insurance Service P&L (€ mn) Comments Revenue (€ mn) 6M 2024 6M 2023 +/- % +3.0% Insurance service result 109.1 97.4 12.0 ▪ Stable revenue growth of € 29.9mn based on 1,029.6 Insurance service revenue - issued business 1,029.6 9
Slide 18: Poland
POLAND Positive developments and sound result improvement Insurance Service P&L (€ mn) Comments Revenue (€ mn) 6M 2024 6M 2023 +/- % +14.0% Insurance service result 42.5 33.7 25.9 ▪ Double-digit revenue growth of 14.0% 667.3 Insurance service revenue - issued business 667.3 585.6 14.0 (+ € 81.7mn) m
Slide 19: Extended CEE
EXTENDED CEE Continuous strong business development in the first half-year 2024 Insurance Service P&L (€ mn) Comments Revenue (€ mn) 6M 2024 6M 2023 +/- % +14.5% Insurance service result 96.6 75.8 27.5 ▪ Extended CEE: Albania (incl. Kosovo), Baltic 1,731.5 Insurance service revenue - issued business
Slide 20: Special Markets
SPECIAL MARKETS Excellent top-line growth; results development impacted by hyperinflation in Türkiye Insurance Service P&L (€ mn) Comments Revenue (€ mn) 6M 2024 6M 2023 +/- % +21.5% Insurance service result 44.0 5.1 >100 ▪ Special markets include Germany, Georgia, 432.8 Insurance service revenue -
Slide 21: Group Functions
GROUP FUNCTIONS Positive developments in the first half-year 2024 Insurance Service P&L (€ mn) Comments Revenue (€ mn) 6M 2024 6M 2023 +/- % +12.2% Insurance service result 75.5 62.1 21.7 ▪ The Group Functions include VIG Holding 895.6 Insurance service revenue - issued business 895.6 798.3 12.2 (in
Slide 22: Highlights, Financials, Segments, Appendix
HIGHLIGHTS FINANCIALS SEGMENTS APPENDIX Please note that rounding differences may occur 22 VIG VIENNA INSURANCE GROUP
Slide 23: Segment overview
SEGMENT OVERVIEW Insurance service revenue, result before taxes & combined ratio Insurance service revenue Result before taxes P&C net combined ratio (€ mn) (€ mn) (%) 6M 2024 6M 2023 +/- % 6M 2024 6M 2023 +/- % 6M 2024 6M 2023 +/- pp Austria 1,749.6 1,642.1 6.5 199.1 192.2 3.6 92.1 90.4 1.7 Czech R
Slide 24: Operating return on equity of 16.2%
OPERATING RETURN ON EQUITY OF 16.2% Annualised operating return on equity ▪ Group operating profit annualised based on half-year result in relation to average equity adjusted for unrealised gains and losses 30/06/2024 31/12/2023 31/12/20222 Shareholders’ equity 6,152.6 6,029.7 5,713.9 Unrealised gai
Slide 25: Group balance sheet
GROUP BALANCE SHEET € mn 30/06/2024 31/12/2023 +/- % Cash and cash equivalents 1,940.4 1,558.1 24.5 Financial assets 38,035.0 37,990.2 0.1 Receivables 553.4 495.7 11.7 Current tax assets 269.2 235.7 14.2 Investments in associates and joint ventures 198.9 185.6 7.2 Insurance contracts assets issued 2
Slide 26: Equity development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€ mn) +2.0% 29 -35 -34 -198 363 6,153 -2 6,030 Equity Result for Hyperinflation Currency reserve Unrealised gains Dividend payment Other Equity as of 01/01/2024 the period effects and losses as of 30/06/2024 26 APPENDIX VIG VIENNA INSUR
Slide 27: Solid premium development in first half 2024
SOLID PREMIUM DEVELOPMENT IN FIRST HALF 2024 OF € 7,886.8 MILLION Gross written premiums (€ mn) 2,417.8 Austria +6.5% 2,574.8 1,197.7 Czech Republic +1.3% 1,213.0 765.7 Poland +3.8% 795.2 2,012.0 Extended CEE +11.5% 2,243.4 520.0 Special Markets +32.0% 6M 2023 686.5 6M 2024 Group Functions: € 1,575m
Slide 28: VIG share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (as of Aug 2024) Listings Ticker Rating Major Indices SELL BUY Vienna ▪ Stock Exchanges: VIG Standard & Poor’s: ATX 1 5 Prague ▪ Bloomberg: VIG AV / VIG CP / VIG XH A+, stable outlook
Slide 29: VIG share (II)
VIG SHARE (II) Shareholder structure Free float split by region1 North America 32% Austria 29% ~72% Wiener Städtische ~28% Continental Europe 28% Versicherungsverein Free float (Mutual) UK & Ireland 7% Other 4% 1 Split of identified shares, May 2024 (Source: S&P Global) 29 APPENDIX VIG VIENNA INSURA
Slide 30: Appendix
30 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 31: Contact details / financial calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.group.vig Nina Higatzberger-Schwarz Sylvia Hollerer Financial calendar 2024* Tel. +43 50 390-21920 Tel. +43 50 390-21919 Date Event nina.higatzberger@vig.com sylvia.hollerer@vig.com 12 Mar. 2024 Preliminary re
Slide 32: Disclaimer
DISCLAIMER IMPORTANT NOTICE These materials are for information purposes only. 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 solicita
Slide 33: VIG Vienna Insurance Group
VIG* VIENNA INSURANCE GROUP Protecting what matters.
Vienna Insurance Group — 6M 2024 Earnings Presentation on 6ix