Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — 9M 2020 Earnings Presentation
41 slides from Vienna Insurance's earnings presentation, Nov 26, 2020
Slide 1: 9M 2020 Results Presentation
9M 2020 RESULTS PRESENTATION Vienna, 26 November 2020
Slide 2: 9M 2020 Results Conference Call: Presenting team and topics
9M 2020 RESULTS CONFERENCE CALL Presenting team and topics Speaker Topics ▪ Liane Hirner, CFO – Presentation & Q&A ▪ Highlights p. 3 ▪ Peter Höfinger, Member of the Board – Q&A ▪ Financials & Investments p. 6 ▪ Appendix 1: Segments p. 16 ▪ Appendix 2: Financials p. 29 2 VIG VIENNA INSURANCE GROUP
Slide 3: Highlights
HIGHLIGHTS FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: Rounding differences may occur when rounded amounts or percentages are added up. 3 VIG VIENNA INSURANCE GROUP
Slide 4: Highlights 9M 2020
HIGHLIGHTS 9M 2020 Solid business performance in unprecedented times Gross written premiums Profit before taxes Combined Ratio € 7,986.4mn € 266.3mn 96.1% GWP up by 1.7% (+€135.2mn) PBT down by 29.2% (-€109.9mn) Improved by 0.3%p due to decreased claims ratio ▪ Strongest contribution by segments ▪ A
Slide 5: S&P rating confirmed in November 2020
S&P RATING CONFIRMED IN NOVEMBER 2020 VIG remains best-rated company in the ATX Financial Risk Profile: Business BusinessRisk Financial RiskProfile: Profile: Very Strong Strong Strong Very Strong ▪ Excellent capitalization in 2019 ▪ “Market leading position in Austria and the Central and Eastern Eur
Slide 6: Financials & Investments
HIGHLIGHTS FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards (IFRS). 6 VIG VIENNA INSURANCE GROUP
Slide 7: Profit development impacted by financial result decrease
PROFIT DEVELOPMENT IMPACTED BY FINANCIAL RESULT DECREASE 9M 2020 Income statement €mn 9M 2020 9M 2019 +/- % Gross premiums written 7,986.4 7,851.2 1.7 ▪ Premium growth driven by other property (+€192.3mn) and health (+€9.3mn) Net earned premiums 7,024.5 6,925.9 1.4 Financial result* 512.8 627.0 -18.
Slide 8: Main market developments
Baltic MAIN MARKET DEVELOPMENTS states No. of companies: 3 Overview 9M 2020 Employees: 1.944 Market share: ~24% GWP: €368mn (-0.8%) Czech Republic PBT: €10mn (+66.2%) CoR: 96.7% (-0.7%p) No. of companies: 3 EE Employees: 4.889 Market share: ~31% Poland LV GWP: €1.297mn (-0.9%) PBT: €153mn (+24.9%) L
Slide 9: Overall premium growth of 1.7%
OVERALL PREMIUM GROWTH OF 1.7% Overview by segments Gross written premiums (€mn; y-o-y change) ▪ Top line up by €135.2mn to €8.0bn despite declining life business ▪ Premium increases driven by growth in Central Functions (+€96mn), Austria (+€88mn) and Poland (+€55mn) ▪ Strong development in Other Pr
Slide 10: Premium growth in 9M 2020 supported by strong Q1
PREMIUM GROWTH IN 9M 2020 SUPPORTED BY STRONG Q1 Gross written premiums by lines of business (€mn; y-o-y change); incl. Central Functions MTPL Casco Other property Total premiums +1.7% 9M 2019 1,142 967 3,622 7,851 7,986 +0.5% +0.5% +5.3% MTPL 1,142 1,148 9M 2020 1,148 972 3,814 972 Casco 967 Other
Slide 11: Group profit before taxes of €266.3mn down by 29.2%
GROUP PROFIT BEFORE TAXES OF €266.3MN DOWN BY 29.2% Positive PBT development (+2.1%) excluding ~€118mn goodwill impairments in Q2 2020 Result before taxes (€mn; y-o-y change) ▪ Adjusted for goodwill impairments, double-digit growth rates in Bulgaria, Turkey/Georgia and Remaining CEE ▪ AT: profit dec
Slide 12: Combined ratio (P&C) at 96.1%
COMBINED RATIO (P&C) AT 96.1% Improved CoR in all market segments, except for Austria and Poland P&C Combined Ratio development Overview by segments (y-o-y development net, %) ▪ Claims ratio decrease compared to 9M 2019 impacted by +0.9%p -1.8%p -7.4%p +0.2%p -4.2%p -0.7%p better claims activity 103
Slide 13: Investment split and bond portfolio overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Overall investment strategy unchanged, certain industries to be reevaluated 9M 2020: Total €36.1bn Bond portfolio by rating1 in % 3.7% 1.5% 7.8% AAA AA A BBB Other 9M 2020 9.4 30.2 35.6 20.7 4.1 7.2% 12M 2019 9.0 31.0 36.8 19.1 4.1 7.0% 72.8% Bond portfol
Slide 14: Financial result
FINANCIAL RESULT Increased investment impairments in Q3 in accordance with longstanding impairment rules at VIG €mn 9M 2020 9M 2019 +/- % Current income 721,135 967,004 -25.4 ▪ Change of consolidation method of non-profit housing societies Income from appreciations 13,306 24,899 -46.6 affects curren
Slide 15: Key messages and outlook FY 2020
KEY MESSAGES AND OUTLOOK FY 2020 Economic uncertainties persist ▪ New business picked up again after lock-down measures got eased during summer ▪ Business model and digitalisation efforts proofed to be successful ▪ Macroeconomic developments and long-term consequences for the insurance business diff
Slide 16: Appendix 1: Segments
HIGHLIGHTS FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 16 VIG VIENNA INSURANCE GROUP
Slide 17: Austria
AUSTRIA PBT decrease driven by lower financial result GWP development (€mn) €mn 9M 2020 9M 2019 +/- % +2.8% Gross premiums written 3,193.8 3,106.2 2.8 ▪ Premium growth of €87.6mn driven by 3,194 Net earned premiums 2,486.4 2,441.6 1.8 other property (+€47.4mn), life single 3,106 Financial result* 41
Slide 18: Czech Republic
CZECH REPUBLIC Profit growth driven by improved CoR and better technical result in life GWP development (€mn) €mn 9M 2020 9M 2019 +/- % -0.9% Gross premiums written 1,297.0 1,308.5 -0.9 ▪ Slightly weaker premium development 1,309 Net earned premiums 973.2 992.6 -2.0 (-€11.5mn) due to FX-effects (+1.
Slide 19: Slovakia
SLOVAKIA Strong P&C development GWP development (€mn) €mn 9M 2020 9M 2019 +/- % -7.0% Gross premiums written 557.6 599.3 -7.0 ▪ Premium declines (-€41.7mn) mainly 599 Net earned premiums 451.2 498.5 -9.5 resulting from life business 558 Financial result 29.9 37.2 -19.8 114 Other income 3.1 19.8 -84.
Slide 20: Poland
POLAND Solid insurance business performance GWP development (€mn) €mn 9M 2020 9M 2019 +/- % +6.6% Gross premiums written 889.1 834.1 6.6 ▪ Premium growth of €55.0mn driven 889 Net earned premiums 689.7 652.3 5.7 mainly by other property (+€33.5mn) 834 Financial result 29.0 27.6 5.0 and MTPL (+€17.7m
Slide 21: Romania
ROMANIA Improved motor business drives premium and profit growth GWP development (€mn) €mn 9M 2020 9M 2019 +/- % +3.7% Gross premiums written 354.8 342.1 3.7 ▪ Premium growth of +€12.7mn coming 355 Net earned premiums 274.3 260.2 5.4 from casco (+€12.6mn), other property 342 Financial result 16.1 12
Slide 22: Baltic States
BALTIC STATES PBT growth based on CoR improvement and strong health business GWP development (€mn) €mn 9M 2020 9M 2019 +/- % -0.8% Gross premiums written 367.7 370.6 -0.8 ▪ Slight premium decrease of €2.9mn; 371 Net earned premiums 292.1 286.4 2.0 double-digit growth rates in life and 368 Financial
Slide 23: Hungary
HUNGARY FX adjusted PBT growth of ~5% GWP development (€mn) €mn 9M 2020 9M 2019 +/- % +4.1% Gross premiums written 212.9 204.5 4.1 ▪ Premium growth of €8.4mn with 213 Net earned premiums 160.3 147.2 8.9 strongest contribution of life single 205 Financial result 2.6 4.1 -36.4 premium business (+€13.2
Slide 24: Bulgaria
BULGARIA Goodwill impairment in Q2 2020 weighs on profits GWP development (€mn) €mn 9M 2020 9M 2019 +/- % -10.2% Gross premiums written 155.0 172.6 -10.2 ▪ Premium decrease of €17.6mn mainly 173 Net earned premiums 111.1 104.6 6.2 due to decreased health (-€17.9mn) Financial result 9.9 9.2 6.8 and M
Slide 25: Turkey/Georgia
TURKEY/GEORGIA Goodwill impairment in Georgia in Q2 in the size of ~€13mn GWP development (€mn) €mn 9M 2020 9M 2019 +/- % +10.4% Gross premiums written 178.4 161.7 10.4 ▪ Premiums up by €16.7mn with other 178 Net earned premiums 87.8 82.5 6.4 property growing by +€13.8mn and Financial result 6.6 9.0
Slide 26: Remaining CEE
REMAINING CEE Profit development impacted by goodwill impairment in Croatia in Q2 2020 GWP development (€mn) €mn 9M 2020 9M 2019 +/- % -0.8% Gross premiums written 333.4 336.1 -0.8 ▪ Remaining CEE: Albania (incl. Kosovo), 336 Net earned premiums 239.4 244.8 -2.2 Bosnia-Herzegovina, Croatia, Moldova,
Slide 27: Other Markets
OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 9M 2020 9M 2019 +/- % -8.7% Gross premiums written 208.5 228.2 -8.7 ▪ Premiums down by €19.7mn due to 228 Net earned premiums 173.2 193.8 -10.6 negative development in the life single Financial result 12.4 14.3 -13.6 premium business
Slide 28: Central Functions
CENTRAL FUNCTIONS Lower financial result related to the consolidation change of the Austrian housing societies GWP development (€mn) €mn 9M 2020 9M 2019 +/- % +7.7% Gross premiums written 1,343.0 1,247.2 7.7 ▪ Central Functions include VIG Holding, 1,343 Net earned premiums 1,073.7 1,018.6 5.4 VIG R
Slide 29: Appendix 2: Financials
HIGHLIGHTS FINANCIALS & INVESTMENTS APPENDIX 1: SEGMENTS APPENDIX 2: FINANCIALS 29 VIG VIENNA INSURANCE GROUP
Slide 30: 9M 2020 Key Financials
9M 2020 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and ROE before taxes and non-controlling interest (€mn) non-controlling interest (%) EPS net of hybrid interest* (€) 227 10.3 2.36 207 175 8.5 8.1 2.04 1.82 9M 18 9M 19 9M 20 9M 18 9M 19 9M 20 9M 18 9M 19 9M 20 * Based on
Slide 31: 9M 2020 Balance Sheet
9M 2020 BALANCE SHEET IFRS (€mn) €mn 30.09.2020 31.12.2019 +/- % Intangible assets (incl. Right-of-Use Assets) 1,952 2,137 -8.7 Investments 34,566 34,456 0.3 Unit- and index-linked investments 7,604 8,620 -11.8 Reinsurers’ share in underwriting provisions 1,280 1,283 -0.3 Receivables 1,624 1,717 -5.
Slide 32: Equity Development
EQUITY DEVELOPMENT Dividend payout in Q3 2020 Change in consolidated Shareholders’ Equity (€mn) -3% 183 -152 -21 5,191 5,058 -153 10 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M19 the period changes gains and losses payment of 9M20 32 APPENDIX 2: FINANCIALS VIG VIENNA
Slide 33: 9M 2020 Premiums by Business Lines and Country (I)
9M 2020 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 9M 2020 9M 2019 +/- % 9M 2020 9M 2019 +/- % 9M 2020 9M 2019 +/- % Austria 262.1 259.0 1.2 240.2 235.1 2.2 1,197.5 1,150.1 4.1 Czech Republic 234.7 229.8 2.2 182.9 185.0 -1.2 365.7 369.9 -1.1 Slovakia 112.7 114.0
Slide 34: 9M 2020 Premiums by Business Lines and Country (II)
9M 2020 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 9M 2020 9M 2019 +/- % 9M 2020 9M 2019 +/- % 9M 2020 9M 2019 +/- % Austria 915.2 930.5 -1.7 242.8 209.4 15.9 336.1 322.1 4.4 Czech Republic 474.1 476.8 -0.6 25.9 34.7 -25.4 13.6 12.3 10.8 Slovakia 126.7 137
Slide 35: 9M 2020 Country Overview GWP / PBT / Combined Ratio
9M 2020 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before Taxes Combined Ratio net (in %) 9M 2020 9M 2019 +/- % 9M 2020 9M 2019 +/- % 9M 2020 9M 2019 +/- % Austria 3,193.8 3,106.2 2.8 122.6 141.8 -13.5 95.0% 94.1% 0.9 Czech Republic 1,297.0 1,308.5 -0.9 152.7 122.3 24.9
Slide 36: 3Q 2020 Income Statement
3Q 2020 INCOME STATEMENT IFRS (€mn) €mn 3Q 2020 3Q 2019 +/- % Gross premiums written 2,409.0 2,404.5 0.2 ▪ Stable premium development despite COVID-19 on the level of Net earned premiums 2,285.9 2,304.2 -0.8 Q3 2019 Financial result* 124.8 203.8 -38.7 Other income 38.1 58.0 -34.3 ▪ Financial result
Slide 37: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (30 Sep 2020) Current listings Ticker Rating Major Indices Vienna ▪ Vienna Stock Exchange: VIG Standard & Poor´s: ATX BUY Prague ▪ Bloomberg: VIG AV / VIG CP A+, stable outlook ATX Pri
Slide 38: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region1 North America 35% Continental Europe 25% ~72% ~28% Austria 24% UK & Ireland 13% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) 1: Split of identified shares, May 2020 (Source: Investor Update) 38 APPENDIX 2: FINANCI
Slide 39: Appendix 2: Financials
39 APPENDIX 2: FINANCIALS VIG VIENNA INSURANCE GROUP
Slide 40: Contact Details / Financial Calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2021* Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 Date Event nina.higatzberger@vig.com sylvia.machherndl@vig.com 09 Mar. 2021 P
Slide 41: 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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