Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — FY2022 Earnings Presentation
38 slides from Vienna Insurance's earnings presentation, Mar 15, 2023
Slide 1: 2022 Preliminary Results Presentation
2022 PRELIMINARY RESULTS PRESENTATION Liane Hirner, CFRO Peter Höfinger, Member of the Managing Board Werner Matula, Chief Actuary Vienna, 15 March 2023
Slide 2: Results Highlights
RESULTS HIGHLIGHTS Excellent set of results based on resilient business model Gross written premiums Profit before taxes Combined Ratio € 12.6bn (+14.1%) € 562.4mn (+10.0%) 94.9% (+0.8%p) ▪ Increased premium volume in all segments ▪ Profit development supported by solid growth ▪ Claims ratio stable
Slide 3: Dividend Proposal of €1.30 per Share
DIVIDEND PROPOSAL OF €1.30 PER SHARE Proposal takes positive operative performance and still volatile environment into account 2022 2021 2020 2019 Earnings per €3.581 €2.94 €1.81 €2.59 share Dividend per €1.302 €1.25 €0.75 €1.15 share Pay out ratio 35.7% 42.6% 41.5% 44.4% Dividend 5.8%2 5.0% 3.6% 4.
Slide 4: Financials & Investments
FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2022 & OUTLOOK APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 4 VIG VIENNA INSURANCE GROUP
Slide 5: Strong Top and Bottom Line Growth
STRONG TOP AND BOTTOM LINE GROWTH 2022 Income statement €mn 2022 2021 +/- % Gross premiums written 12,559.2 11,002.6 14.1 ▪ Double-digit premium growth of 14.1% includes first- Net earned premiums 10,910.9 9,705.6 12.4 time consolidation of Aegon Hungary retrospectively with Financial result excl. r
Slide 6: Top-Line Up by 14.1% Based on Growth in All Segments
TOP-LINE UP BY 14.1% BASED ON GROWTH IN ALL SEGMENTS Gross written premiums (€mn; y-o-y change) ▪ Overall, very strong premium growth throughout the year, resulting 4,048 in GWP of €12,559.2mn Austria +2.2% 4,138 ▪ Double-digit premium growth in Czech Republic (+€257.2mn) 1,865 based mainly on other
Slide 7: Double-Digit Premium Growth in All Lines of Business Except Life Single Premium
DOUBLE-DIGIT PREMIUM GROWTH 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 +14.1% 12M 2021 1,612 1,402 5,267 12,559 +20.1% +16.1% +16.0% 835 11,003 860 12M 2022 1,936
Slide 8: Group Result Before Taxes of €562.4mn Up by 10.0%
GROUP RESULT BEFORE TAXES OF €562.4MN UP BY 10.0% Result before taxes (€mn; y-o-y change) 234.7 ▪ AT: solid result before taxes despite impairment taken in relation Austria +6.3% to the Russian investment exposure 249.4 ▪ CZ: profit growth (+€15.0mn) coming from favourable 186.9 Czech Republic +8.0%
Slide 9: Combined Ratio (P&C) at 94.9%
COMBINED RATIO (P&C) AT 94.9% Overview Group and segments (y-o-y development net, %) ▪ Austria: improved cost ratio offset higher claims ratio ▪ Czech Republic: higher combined ratio mainly due to motor claims development ▪ Poland: cost ratio up due to competitive motor environment ▪ Extended CEE: c
Slide 10: Financial Result
FINANCIAL RESULT Strong development in current income in EUR ‘000 2022 2021 +/- % Current income 1,033,657 914,966 13.0 ▪ Double-digit growth rate in current income leads to increase Income from appreciations 11,445 16,174 -29.2 by €118.7mn resulting from the first-time consolidation of Turkish Inco
Slide 11: Investment Split and Bond Portfolio Overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Stable portfolio mix Investment split Bond portfolio by rating1 3.5% 1.6% 12M 2022 10.1% 27.2% 31.6% 23.6% 7.5% 9.9% 12M 2021 9.1% 29.6% 33.8% 22.0% 5.5% 6.1% €34.4bn AAA AA A BBB Other 9.6% in 2022 Bond portfolio by issuer 69.3% 12M 2022 53.6% 6.0% 18.5%
Slide 12: Bond Portfolio Rating Distribution 2022
BOND PORTFOLIO RATING DISTRIBUTION 2022 Government bonds Covered bonds Financials Corporates 60.6% 48.2% 42.3% 37.7% 30.6% 36.5% 34.2% 27.4% 14.5% 15.6% 11.3% 10.6% 9.6% 8.1% 5.7% 4.5% 0.6% 0.2% 1.1% 1.0% AAA AA A BBB Other AAA AA A BBB Other AAA AA A BBB Other AAA AA A BBB Other 12 FINANCIALS & INV
Slide 13: Life & Health Embedded Value
FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2022 & OUTLOOK APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 13 VIG VIENNA INSURANCE GROUP
Slide 14: Life & Health Embedded Value Austria / Germany
LIFE & HEALTH EMBEDDED VALUE AUSTRIA / GERMANY in €mn 43.0% 911.4 2,860.4 ▪ New Business Margin (PVNBP-Ratio) increased to 2.6% in 2022 (2021: 1.8%) 2,000.7 33.7 16.9 ▪ Significant positive impact of -31.3 -71.0 the economic environment 1,840.9 ▪ Includes profitable long-term- health business 1,305.
Slide 15: Life & Health Embedded Value CEE
LIFE & HEALTH EMBEDDED VALUE CEE in €mn 9.7% 80.8 13.1 1,918.1 ▪ New Business Margin (PVNBP-Ratio) at 4.8% in 26.5 2022 (2021: 3.8%) 56.9 -7.0 1,747.8 ▪ Important contribution of new business written in 2022 1,191.3 ▪ Positive experience variance includes renewals (due to 1,097.6 56.9 Solvency II co
Slide 16: Life & Health Embedded Value Total
LIFE & HEALTH EMBEDDED VALUE TOTAL in €mn ▪ New Business Margin (PVNBP-Ratio) increased to 3.6% in 2022 (2021: 2.5%) ▪ CEE contributes with 40% to the Life & Health Embedded Value 27.5% 924.5 4,778.5 3,847.8 90.6 43.4 9.8 23.4 3,748.5 -122.6 -38.3 2,938.5 2,497.1 73.6 90.6 2021 2022 2021 Dividends F
Slide 17: Summary 2022 & Outlook
FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2022 & OUTLOOK APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 17 VIG VIENNA INSURANCE GROUP
Slide 18: Summary 2022 and Outlook
SUMMARY 2022 AND OUTLOOK Resilient business model once again proved to be successful Summary 2022: excellent set of results despite challenging macroeconomic environment ▪ Broad diversification and local entrepreneurship are basis and drivers for solid performance and resilience of VIG ▪ Interest ra
Slide 19: Appendix 1: Segments
FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2022 & OUTLOOK APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 19 VIG VIENNA INSURANCE GROUP
Slide 20: Austria
AUSTRIA Solid premium and profit growth and excellent combined ratio of 92.4% GWP development (€mn) P&L Comments €mn 2022 2021 +/- % +2.2% Gross premiums written 4,138.4 4,048.4 2.2 ▪ Premium growth based on other property 4,138 4,048 Net earned premiums 3,314.8 3,242.5 2.2 (+€92.3mn) and motor (+€3
Slide 21: Czech Republic
CZECH REPUBLIC Strong premium growth in all lines of business except life single premium GWP development (€mn) P&L Comments +13.8% €mn 2022 2021 +/- % Gross premiums written 2,122.1 1,864.9 13.8 ▪ Double-digit GWP growth based mainly 2,122 on other property (+€106.1mn), motor 28 25 Net earned premiu
Slide 22: Poland
POLAND Challenging environment in the polish market in 2022 GWP development (€mn) P&L Comments €mn 2022 2021 +/- % +5.7% Gross premiums written 1,352.9 1,279.8 5.7 ▪ Solid premium growth of €73.1mn coming 1,353 1,280 39 Net earned premiums 1,018.4 983.0 3.6 mainly from other property (+€53.7mn) and
Slide 23: Extended CEE
EXTENDED CEE Result before taxes impacted by impairments GWP development (€mn) P&L Comments +24.5% €mn 2022 2021 +/- % ▪ Extended CEE include Albania incl. Kosovo, Gross premiums written 3,593.2 2,886.7 24.5 Baltic states, Bosnia & Herzegovina, Bulgaria, 3,593 Croatia, Moldova, North Macedonia, Roma
Slide 24: Special Markets
SPECIAL MARKETS Double-digit premium and profit growth in all lines of business GWP development (€mn) P&L Comments +59.2% €mn 2022 2021 +/- % ▪ Special Markets include Germany, Georgia, Gross premiums written 846.2 531.7 59.2 Liechtenstein, Türkiye 846 49 Net earned premiums 501.3 325.9 53.8 Financi
Slide 25: Group Functions
GROUP FUNCTIONS Double-digit premium growth and favourable result development GWP development (€mn) P&L Comments +16.9% €mn 2022 2021 +/- % Gross premiums written 2,297.8 1,965.0 16.9 ▪ Group Functions include VIG Holding, 2,298 Net earned premiums 1,756.1 1,554.1 13.0 VIG Re, Wiener Re, VIG Fund, c
Slide 26: Appendix 2: Financials
FINANCIALS & INVESTMENTS LIFE & HEALTH EMBEDDED VALUE SUMMARY 2022 & OUTLOOK APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 26 VIG VIENNA INSURANCE GROUP
Slide 27: 2022 Key Financials
2022 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and Operating RoE (%) non-controlling interest (€mn) 466 11.1 11.9 10.9 376 232 2020 2021 2022 2020 2021 2022 Earnings per share (€)1 Book value per share2 (€) 3.6 2.9 39.6 33.4 36.1 1.8 2020 2021 2022 2020 2021 2022 1 The ca
Slide 28: Q4 2022 Income Statement
Q4 2022 INCOME STATEMENT IFRS (€mn) €mn Q4 2022 Q4 2021 +/- % Gross premiums written 3,029.3 2,611.7 16.0 ▪ Double-digit premium growth coming from all lines Net earned premiums 2,789.9 2,442.6 14.2 of business except life single premium Financial result excl. result from shares in at equity 299.8 8
Slide 29: 2022 Balance Sheet
2022 BALANCE SHEET IFRS (€mn) €mn 31.12.2022 31.12.2021 +/- % Intangible assets 2,085 1,744 19.5 Right-of-Use assets 179 173 3.1 Investments 32,340 34,810 -7.1 Investments of unit- and index-linked life insurance 7,164 8,525 -16.0 Reinsurers’ share in underwriting provisions 1,963 1,565 25.4 Receiva
Slide 30: Equity Development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) -20.8% 464 -30 -1,736 5,598 4,434 -192 330 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M 2021 the period changes gains and losses payment of 12M 2022 30 APPENDIX 2: FINANCIALS VIG VIENNA INSURANCE GRO
Slide 31: 2022 Premiums by Business Lines and Country (I)
2022 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 2022 2021 +/- % 2022 2021 +/- % 2022 2021 +/- % Austria 340.2 327.7 3.8 337.1 316.9 6.4 1,592.1 1,499.8 6.2 Czech Republic 389.0 349.3 11.4 327.3 279.2 17.2 632.1 526.1 20.2 Poland 307.0 310.7 -1.2 200.6 192.2 4.4 4
Slide 32: 2022 Premiums by Business Lines and Country (II)
2022 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 2022 2021 +/- % 2022 2021 +/- % 2022 2021 +/- % Austria 1,206.9 1,208.2 -0.1 182.1 228.0 -20.1 480.0 467.9 2.6 Czech Republic 721.0 659.1 9.4 28.0 30.2 -7.2 24.6 21.0 17.4 Poland 165.0 166.8 -1.1 143.0 135.7
Slide 33: 2022 Country Overview GWP / PBT / Combined Ratio
2022 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before tax Combined Ratio net (in %) 2022 2021 +/- % 2022 2021 +/- % 2022 2021 +/- %p Austria 4,138.4 4,048.4 2.2 249.4 234.7 6.3 92.4 92.8 -0.4 Czech Republic 2,122.1 1,864.9 13.8 201.9 186.9 8.0 91.5 90.1 1.4 Poland 1,352
Slide 34: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (1/2/2023) Listings Ticker Rating Major Indices SELL Vienna ▪ Stock Exchanges: VIG Standard & Poor’s: ATX 1 BUY Prague ▪ Bloomberg: VIG AV / VIG CP / VIG XH A+, stable outlook ATX Prim
Slide 35: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region* North America 38% Austria 26% ~72% ~28% Continental Europe 22% UK & Ireland 11% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) * Split of identified shares, May 2022 (Source: Investor Update) 35 APPENDIX VIG VIENNA
Slide 36: Appendix
36 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 37: Contact Details / Financial Calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2023* Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 Date Event nina.higatzberger@vig.com sylvia.machherndl@vig.com 15 Mar. 2023 P
Slide 38: 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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