Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — H1 2022 Earnings Presentation
39 slides from Vienna Insurance's earnings presentation, Aug 18, 2022
Slide 1: 6M 2022 Results Presentation
6M 2022 RESULTS PRESENTATION Hartwig Löger, Deputy CEO Liane Hirner, CFRO Peter Höfinger, Member of the Managing Board Vienna, 18 August 2022
Slide 2: Executive Summary Half-Year 2022
EXECUTIVE SUMMARY HALF-YEAR 2022 Strong half-year results underpin resilience of VIG Group ▪ Proven business model with its specific management principles give flexibility to local management and ensure customer proximity ▪ In challenging economic environment decentralised approach of VIG beneficial
Slide 3: Market & Strategy Update; Financials & Investments; Appendices
MARKET & STRATEGY UPDATE FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 3 VIG VIENNA INSURANCE GROUP
Slide 4: VIG 25 Strategy Programme Confirmed
VIG 25 STRATEGY PROGRAMME CONFIRMED Focus on financial stability and profitability, customer proximity, growth and sustainability unchanged 2021 VIG 25 Group targets 2022 Expansion of the Group’s leading position in CEE VIG 25 Creation of sustainable value Strategy programme for VIG Group jointly de
Slide 5: VIG 25 Identified Trends Still Valid Despite Changed Economic Environment
UNDER VIG 25 IDENTIFIED TRENDS DESPITE CHANGED ECONOMIC ENVIRONMENT STILL VALID ▪ Nominal interest rate hike may impact life insurance demand positively Evolution ▪ Latent demand to be even more Latent instead of ▪ Real interest rate to remain persistent demand revolution rather low long-term ▪ Pres
Slide 6: Inflation Impacts Vary by Line of Business
INFLATION IMPACTS VARY BY LINE OF BUSINESS Risk assessment show various opportunities to effectively manage inflation risk Motor and Property ▪ Direct impact through claims inflation ▪ Potential levers: e.g., premium increase, product modification, improve claims handling processes (contracting stru
Slide 7: Initiatives Proof to Be Successful in New Economic Environment
INITIATIVES PROOF TO BE SUCCESSFUL AND ESSENTIAL ALSO IN NEW ECONOMIC ENVIRONMENT Strategic focus areas to optimise, enhance and expand the group’s business model OPTIMISE ENHANCE EXPAND Operational excellence by Create additional customer value Expansion of the value chain and access including part
Slide 8: Portfolio Groups under VIG 25
PORTFOLIO GROUPS UNDER VIG 25 Assessment for each market done under VIG 25 also holds true in times of tougher economic conditions ▪ Country portfolio of 20 CEE core markets1 (including Austria) and special markets2 ▪ CEE core market includes Top 5 CEE and Other CEE markets ▪ Top 5 CEE markets ▪ Mai
Slide 9: Overview Aegon CEE Transaction First Half 2022
OVERVIEW AEGON CEE TRANSACTION FIRST HALF 2022 Aegon CEE transaction comprises businesses in Hungary, Türkiye, Poland and Romania Closing Aegon Hungary and Aegon Türkiye ▪ VIG successfully completed the biggest part of the Aegon transaction with closing on 23 March 2022 of Aegon Hungary ▪ VIG become
Slide 10: VIG Successfully Places €500mn Bond
VIG SUCCESSFULLY PLACES €500MN BOND DESPITE CHALLENGING CAPITAL MARKETS ENVIRONMENT ISIN: AT0000A2XST0 ▪ Issuance of Tier 2 bond in June 2022 KEY FACTS ▪ Order book 2.7 times oversubscribed NEW ISSUANCE ▪ More than 110 European investors mainly from DACH, France, UK and BeNeLux ▪ Placement was accom
Slide 11: Market & Strategy Update; Financials & Investments; Appendices
MARKET & STRATEGY UPDATE FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 11 VIG VIENNA INSURANCE GROUP
Slide 12: Results Highlights
RESULTS HIGHLIGHTS Strong premium and profit growth and very good combined ratio Gross written premiums Profit before taxes Combined Ratio Solvency Ratio € 6,443.1mn (+11.6%) € 277.3mn (+10.3%) 94.3% (-0.9%p) 285% ▪ GWP growth in all segments and ▪ Double-digit growth rate driven ▪ Claims ratio impr
Slide 13: Strong Performance in the First Half of 2022
STRONG PERFORMANCE IN THE FIRST HALF OF 2022 6M 2022 Income statement €mn 6M 2022 6M 2021 +/- % Gross premiums written 6,443.1 5,772.9 11.6 ▪ Strong premium growth in all segments and lines of Net earned premiums 5,268.6 4,822.6 9.2 business Financial result excl. result from shares in at equity 315
Slide 14: Top-Line Growth (+11.6%) from All Segments
TOP-LINE GROWTH (+11.6%) FROM ALL SEGMENTS Gross written premiums (€mn; y-o-y change) 2,280 Austria +4.2% 2,375 ▪ Overall GWP increased by €670.2mn 946 ▪ Strongest contribution to double-digit growth rate in Czech Czech Republic +17.0% 1,106 Republic (+€160.9mn) coming from other property (+€79.8mn)
Slide 15: 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 +11.6% 6M 2021 810 709 2,886 6,443 412 +20.3% +11.1% +15.2% 5,773 485 Health 368 Life single 446 1,418 6M 2022 975 787 3,324 Life reg
Slide 16: Group Result Before Taxes of €277.3mn Up by 10.3%
GROUP RESULT BEFORE TAXES OF €277.3MN UP BY 10.3% Result before taxes (€mn; y-o-y change) 105.8 ▪ AT: result before taxes down (-€28.7mn) due to declined financial Austria -27.1% result impacted by measures related to Russian investment 77.1 exposure 96.9 Czech Republic -3.1% ▪ CZ: slightly lower re
Slide 17: Combined Ratio (P&C) Improved to 94.3%
COMBINED RATIO (P&C) IMPROVED TO 94.3% Overview Group and segments (y-o-y development net, %) ▪ NatCat impact of ~€35mn (net) in 6M 2022 compared to ~€42mn (net) in 6M 2021 ▪ Strong combined ratio improvement in the segment Austria primarily due to better cost ratio ▪ Increased combined ratio in the
Slide 18: Financial Result
FINANCIAL RESULT Positive development in current income in EUR ‘000 6M 2022 6M 2021 +/- % Current income 470,840 463,786 1.5 ▪ Current income slightly up (€7.1mn) Income from appreciations 2,320 7,669 -69.8 Income from disposal of investments 131,363 59,149 >100 ▪ Higher income from disposal of inve
Slide 19: Investment Split and Bond Portfolio Overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Stable portfolio mix Investment split Bond portfolio by rating1 4.0% 6M 2022 9.3% 29.6% 33.0% 22.1% 6.0% 3.1% 11.1% 12M 2021 9.1% 29.6% 33.8% 22.0% 5.5% 6.0% €34.4bn AAA AA A BBB Other in 6M 2022 8.8% 67.0% Bond portfolio by issuer 6M 2022 52.0% 6.2% 18.6
Slide 20: Appendix 1: Segments
MARKET & STRATEGY UPDATE FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 20 VIG VIENNA INSURANCE GROUP
Slide 21: Austria
AUSTRIA Very good combined ratio; impairment and precautionary measure impact profit GWP development (€mn) P&L Comments €mn 6M 2022 6M 2021 +/- % +4.2% Gross premiums written 2,374.6 2,279.7 4.2 ▪ Strong premium growth in other property 2,375 2,280 Net earned premiums 1,711.1 1,651.4 3.6 (+€58.0mn)
Slide 22: Czech Republic
CZECH REPUBLIC Strong premium growth in all lines of business except life single premium GWP development (€mn) P&L Comments +17.0% €mn 6M 2022 6M 2021 +/- % Gross premiums written 1,106.4 945.6 17.0 ▪ Strong premium growth of €160.9mn mainly 1,106 coming from other property (+€79.8mn) and 13 12 Net
Slide 23: Poland
POLAND Improved combined ratio; decreased result before taxes due to lower financial result GWP development (€mn) P&L Comments +2.9% €mn 6M 2022 6M 2021 +/- % Gross premiums written 659.0 640.7 2.9 ▪ Premium growth of €18.3mn coming mainly 659 641 9 Net earned premiums 494.1 480.7 2.8 from other pro
Slide 24: Extended CEE
EXTENDED CEE Double-digit premium growth rate and solid result before taxes GWP development (€mn) P&L Comments +20.3% €mn 6M 2022 6M 2021 +/- % Gross premiums written 1,722.1 1,431.5 20.3 ▪ Extended CEE include Albania incl. Kosovo, 1,722 Net earned premiums 1,224.4 1,072.0 14.2 Baltic states, Bosni
Slide 25: Special Markets
SPECIAL MARKETS Premium growth in all lines of business GWP development (€mn) P&L Comments +10.4% €mn 6M 2022 6M 2021 +/- % Gross premiums written 297.2 269.1 10.4 ▪ Special Markets include Germany, Georgia, 297 Net earned premiums 167.1 173.7 -3.8 Liechtenstein, Türkiye 269 25 Financial result excl
Slide 26: Group Functions
GROUP FUNCTIONS Double-digit premium growth and positive development in result before taxes GWP development (€mn) P&L Comments +22.4% €mn 6M 2022 6M 2021 +/- % Gross premiums written 1,242.3 1,014.8 22.4 ▪ Group Functions include VIG Holding, VIG 1,242 Net earned premiums 888.3 750.7 18.3 Re, Wiener
Slide 27: Appendix 2: Financials
MARKET & STRATEGY UPDATE FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur. 27 VIG VIENNA INSURANCE GROUP
Slide 28: 6M 2022 Key Financials
6M 2022 KEY FINANCIALS Overview of KPIs Net result for the period after taxes Operating RoE (%)1 and non-controlling interest (€mn) 202 186 11.0 10.9 6M 2021 6M 2022 6M 2021 6M 2022 Earnings per share (€)1 Book value per share2 (€) 34.4 37.2 2.91 3.05 6M 2021 6M 2022 6M 2021 6M 2022 1 Annualised fig
Slide 29: Q2 2022 Income Statement
Q2 2022 INCOME STATEMENT IFRS (€mn) €mn Q2 2022 Q2 2021 +/- % Gross premiums written 2,988.4 2,666.1 12.1 ▪ Premium up by €322.3mn due to growth in all lines of Net earned premiums 2,646.6 2,406.3 10.0 business, especially in other property Financial result excl. result from shares in at equity 167.
Slide 30: 6M 2022 Balance Sheet
6M 2022 BALANCE SHEET IFRS (€mn) €mn 30.06.2022 31.12.2021 +/- % Intangible assets 1,749 1,744 0.3 Right-of-Use assets 196 173 13.2 Investments 31,566 34,810 -9.3 Investments of unit- and index-linked life insurance 7,396 8,525 -13.2 Reinsurers’ share in underwriting provisions 1,883 1,565 20.4 Rece
Slide 31: Equity Development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) -19.7% 208 -1 -1,260 5,598 4,494 -179 129 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M 2021 the period changes gains and losses payment of 6M 2022 31 APPENDIX 2: FINANCIALS VIG VIENNA INSURANCE GROUP
Slide 32: 6M 2022 Premiums by Business Lines and Country (I)
6M 2022 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- % Austria 196.9 191.5 2.8 189.8 179.2 5.9 983.4 925.4 6.3 Czech Republic 197.3 175.5 12.4 162.6 136.9 18.8 356.0 276.2 28.9 Poland 152.8 157.5 -3.0
Slide 33: 6M 2022 Premiums by Business Lines and Country (II)
6M 2022 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- % Austria 635.5 632.0 0.6 130.4 119.7 9.0 238.5 232.0 2.8 Czech Republic 365.2 330.8 10.4 13.3 16.2 -18.2 12.0 9.9 21.2 Poland 82.7 83.0 -0.4
Slide 34: 6M 2022 Country Overview GWP / PBT / Combined Ratio
6M 2022 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before tax Combined Ratio net (in %) 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- %p Austria 2,374.6 2,279.7 4.2 77.1 105.8 -27.1 92.7 93.7 -1.0 Czech Republic 1,106.4 945.6 17.0 93.9 96.9 -3.1 93.4 91
Slide 35: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (16/8/2022) 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 36: 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) 36 APPENDIX VIG VIENNA
Slide 37: Appendix
37 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 38: 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 39: 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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