Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Investor Presentation (March 2010)
20 slides from Vienna Insurance's investor presentation, Mar 31, 2010
Slide 1: Group Embedded Value Results 2009
Group Embedded Value Results 2009 March 31, 2010
Slide 2: Introduction
Introduction Scope of GEV-Reporting 2 Group Embedded Value (GEV) calculated as Life & Health (L&H) EEV or TEV plus Adjusted Net Asset Value (ANAV) for Property & Casualty (P&C) PCS in Czech Republic and PSLSP in Slovakia: Change from TEV to EEV Methodology, assumptions and calculations reviewe
Slide 3: Methodology: EEV and TEV
Methodology EEV and TEV 3 All results based on local GAAP GEV reflects the present value of amounts deemed to be distributable to shareholders EEV based on stochastic cashflow projections using market consistent capital market scenarios and an allowance for liquidity premiums. The EEV allows f
Slide 4: Methodology: EEV and TEV for L&H
Methodology EEV and TEV 4 EEV and TEV for L&H: Adjusted Net Asset Value (ANAV) plus Value of In-Force (VIF) determined as Present Value of Future Profits (PVFP) minus Time Value of Financial Options and Guarantees (TVFOG) – EEV only minus Cost of Capital (CoC) – TEV only / Frictional Cost of Requi
Slide 5: Group Embedded Value Results
Group Embedded Value Results 5 in € mn L&H P&C Total 2009 2008(*) 2009 2008(*) 2009 2008(*) Austria / Germany Free Surplus 227.6 351.0 Required Capital 356.7 320.5 ANAV 584.2 671.4 73.3 164.4 657.6 835.8 PVFP 1,440.3 1,304.8 1,440.3 1,304.8 - TVFOG - 180.2 - 199.8 - 180.2 - 199.8 - CoC/FCRC - 55.4 -
Slide 6: Group Embedded Value Results
Group Embedded Value Results 6 2009 2008 (*) 37% 37% 36% 39% A/G L&H A/G P&C CEE L&H CEE P&C 2% 4% 24% 21% GEV = € 4,585.3 mn GEV = € 4,263.9 mn (*) restated
Slide 7: Comments on GEV Results
Group Embedded Value Comments on GEV Results 7 The reference interest rates used for the EEV calculations are based on the corresponding swap rates at December 31, 2009 and include a liquidity spread of 25 bp for all terms Volatilities used to calibrate the economic scenario generator are based
Slide 8: Return on Adjusted Embedded Value
Return on Adjusted Embedded Value Results 8 in € mn L&H P&C Total Austria / Germany EV Dec 31, 2009 1,684.2 73.3 1,757.5 EV Dec 31, 2008 Reported 1,670.3 151.4 1,821.7 EV Dec 31, 2008 Restated 1,658.9 164.4 1,823.3 EV Dec 31, 2008 Restated and Adjusted 1,516.8 - 16.1 1,500.7 Dividends - 58.9 - 186.7
Slide 9: New Business Values
New Business Values Results 9 in € mn 2009 2008(*) +/-% Austria / Germany NBV 51.0 62.8 - 18.8% APE 203.8 259.1 APE-Ratio 25.0% 24.2% + 3.2% PVNBP 1,991.1 2,529.8 PVNBP-Ratio 2.6% 2.5% + 3.1% CEE NBV 77.1 84.4 - 8.7% APE 184.9 211.1 APE-Ratio 41.7% 40.0% + 4.2% PVNBP 1,186.8 1,250.7 PVNBP-Ratio 6.5%
Slide 10: Comments on NBV Results
New Business Values Comments on NBV Results 10 The NBV represents the value generated by new business sold during the reporting period. The NBV has decreased due to slowing down life insurance sales. Despite decreased NBV, the key indicators for profitability show a slight increase (APE-Ratio
Slide 11: Sensitivities: EEV - A/G - Life & Health
Sensitivities EEV - A/G - Life & Health 11 in € mn As % Value of Base Base value 1,684.2 100.0% +1% 1,820.3 108.1% Change in Yield Curve -1% 1,403.9 83.4% -0,25% 1,561.7 92.7% Liquidity Premium +0,25% 1,793.2 106.5% Equity and Property Values -10% 1,615.6 95.9% Equity and Property Implied Volatiliti
Slide 12: Sensitivities: EEV - CEE - Life
Sensitivities EEV - CEE - Life 12 in € mn As % Value of Base Base value 1,093.3 100.0% +1% 1,086.7 99.4% Change in Yield Curve -1% 1,078.3 98.6% -0,25% 1,077.4 98.5% Liquidity Premium +0,25% 1,109.3 101.5% Equity and Property Values -10% 1,092.8 99.9% Equity and Property Implied Volatilities +25% 1,
Slide 13: Sensitivities: NBV - A/G - Life & Health
Sensitivities NBV - A/G - Life & Health 13 in € mn As % Value of Base Base value 51.0 100.0% +1% 57.9 113.5% Change in Yield Curve -1% 27.0 52.9% -0,25% 44.5 87.3% Liquidity Premium +0,25% 52.3 102.5% Equity and Property Values -10% 51.0 100.0% Equity and Property Implied Volatilities +25% 49.8 97.6
Slide 14: Sensitivities: NBV - CEE - Life
Sensitivities NBV - CEE - Life 14 in € mn As % Value of Base Base value 77.1 100.0% +1% 71.2 92.4% Change in Yield Curve -1% 83.5 108.3% -0,25% 77.8 100.9% Liquidity Premium +0,25% 76.5 99.2% Equity and Property Values -10% 77.1 100.0% Equity and Property Implied Volatilities +25% 77.0 99.9% Swaptio
Slide 15: Economic Operating Analysis of Change: A/G Life & Health
EE Va sa tD ec 31 ,2 1,400 1,500 1,600 1,700 1,800 00 8r ep Re ort sta ed EE tem 1,670 Va en sa tc tD ha ec ng 31 es -11 ,2 00 8r A/G – Life & Health es t at ed 1,659 Fo Div rei g nE i de nd xc s Analysis of Change ha -59 Ac ng qu eV ire ari d/ D an ce ive s 0 EE ste Va d Bu sa sin tD ec e sse 31 s
Slide 16: Economic Operating Analysis of Change: CEE Life
EE Va sa tD ec 31 ,2 800 900 1,000 1,100 1,200 00 8r CEE - Life ep Re ort sta ed 969 EE tem Va en sa tc tD ha ec ng 31 es -70 ,2 00 8r es t at ed 899 Fo Div rei g nE i de nd xc s -3 Analysis of Change ha Ac ng qu eV ire ari d/ D an ce ive s 6 EE ste Va d Bu sa sin tD ec e sse 31 s -1 ,2 00 Ne 8a wB
Slide 17: Development of Total GEV
GE V as at D ec 2,500 3,000 3,500 4,000 4,500 31 ,2 5,000 Total GEV 00 8a sr ep ort ed GE 4,162 V Re sta Development te me nt ch GE a ng V as es 102 at D ec 31 ,2 00 8a sr es t at ed Div 4,264 i de nd sa nd Ot he rT ran GE sfe V as rs -290 at D ec 31 ,2 00 8 ad jus t ed 3,974 Re t ur ni nL &H 357 Re
Slide 18: Reconciliation: IFRS Equity to ANAV
Reconciliation IFRS Equity ⇒ ANAV 18 in € mn 2009 2008 Consolidated IFRS equity 4,628.6 4,138.8 Minorities - 289.3 - 266.9 Hybridcapital - 495.6 - 245.6 Intangible assets -1,975.4 -1,648.9 Sub Total 1,868.3 1,977.3 Add back goodwill for businesses included on the basis of IFRS book value 14.0 317.5
Slide 19: Summary
Summary Highlights 19 GEV of € 4,585.3 mn as at December 31, 2009 (an increase of 10.3% from 2008 reported figures) Positive return on GEV amounting to € 611.1 mn (+ 15.4%) for 2009 Sustainable new business profitability shown in APE-Ratio and PVNBP-Ratio Stable surpluses in claims reserves
Slide 20: Disclaimer
Disclaimer 20 Cautionary statement regarding forward-looking information This presentation contains forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and it might not be possible to achieve the predictions, forecasts, projections and other outcomes
Vienna Insurance Group — Investor Presentation (March 2010) on 6ix