Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Q1 2022 Earnings Presentation
41 slides from Vienna Insurance's earnings presentation, Jun 14, 2022
Slide 1: Investor Presentation: Results for the first quarter 2022
VIENNA INSURANCE GROUP Investor Presentation Results for the first quarter 2022
Slide 2: We are the leading insurance group in Central & Eastern Europe
WE ARE THE LEADING INSURANCE GROUP IN CENTRAL & EASTERN EUROPE VIG Group characterised by diversified and resilient business profile Represented in Over 30 markets with ~50 group companies 22mn customers Life - single premium Health 6.7% 13.2% Motor own damage 8.2% More than S&P Rating MTPL 15.2% 25
Slide 3: Continuous payout of dividends since 1994
CONTINIOUS PAYOUT OF DIVIDENDS SINCE 1994 Strong operational development allows for a dividend per share of €1.25 for 2021 2021 2020 2019 2018 Earnings per €1.81 €2.04 share €2.94 €2.59 DIVIDEND POLICY Dividend per €1.25 €0.75 €1.15 €1.00 share Payout Ratio in a range of 30 – 50% of Group profits af
Slide 4: Taking advantage of the long-term growth potential in CEE
TAKING ADVANTAGE OF THE LONG-TERM GROWTH POTENTIAL IN CEE Annual insurance spending as indicator for growth potential Insurance density 2020, in EUR (premiums per capita) 2,016 1,226 586 461 376 353 351 344 342 289 213 150 135 123 118 79 56 47 32 28 Hungary Romania Lithuania Albania Poland Serbia La
Slide 5: VIG 25 strategy secures further dynamic development of successful business model
VIG 25 STRATEGY SECURES FURTHER DYNAMIC DEVELOPMENT OF SUCCESSFUL BUSINESS MODEL 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 partn
Slide 6: Group objectives VIG 25
GROUP OBJECTIVES VIG 25 Focus on financial stability and profitability, customer proximity, growth and sustainability Top 3 Austria Albania Baltic states Bulgaria Czech Republic Expansion of the Group’s leading position in CEE Hungary North Macedonia ▪ Achieving at least a top-three position in each
Slide 7: VIG closes acquisition of Aegon Hungary
VIG CLOSES ACQUISITION OF AEGON HUNGARY VIG Group rises to number 1 in Hungary Closing Aegon Hungary ▪ Approvals for the acquisition from local Hungarian authorities received on 17 and 18 March 2022 KEY FACTS ▪ Closing of the acquisition of the two holding companies Aegon Hungary Holding B.V. and Ae
Slide 8: ESG commitment throughout the group
ESG COMMITMENT THROUGHOUT THE GROUP VIG signatory of UN Global Compact Affordable housing IT risk management & information security ▪ VIG supports affordable housing through its ▪ IT Security Group Guideline binding for all investments in non-profit housing societies Group companies ▪ More than 100,
Slide 9: Solvency ratio of VIG Group as of YE 2021 improved to 250%
SOLVENCY RATIO OF VIG GROUP AS OF YE 2021 IMPROVED TO 250% Solvency Position YE 2021 compared to YE 2020 including transitional measures on technical provisions in EUR million 250% YE 2021 The solvency ratio of VIG Group is expected 238% YE 2020 to be in a range between 150% and 200%. This range ref
Slide 10: Results highlights 3M 2022
RESULTS HIGHLIGHTS 3M 2022 Double-digit premium growth rate in the first quarter Gross written premiums Profit before taxes Combined Ratio € 3,454.7mn (+11.2%) € 123.8mn (-3.3%) 94.6% (95.2%) ▪ Strongest contribution by segment coming ▪ Profit before taxes impacted by ▪ Claims ratio improved to 62.2
Slide 11: 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 +11.2% 3M 2021 417 360 1,663 3,455 218 +18.8% +8.9% +15.2% 3,107 234 Health 196 Life single 221 736 3M 2022 496 392 1,916 Life regula
Slide 12: Ukraine & Russia exposure
UKRAINE & RUSSIA EXPOSURE Unpredictable financial result due to expected high volatility on capital markets Russia ▪ No operations Ukraine ▪ 3 insurance companies: non-life companies (Kniazha, USG) and life insurance company (Kniazha Life) ▪ Employees: 1400 ▪ Premiums: ~€100mn ▪ Average profit in la
Slide 13: Executive summary 3M 2022
EXECUTIVE SUMMARY 3M 2022 Good start into 2022 ▪ Positive top-line performance in all lines of business and segments ▪ Double-digit premium growth rate in Q1 driven by seasonal effects; growth expected to normalise over the year ▪ Precautionary measures taken related to Russian investment exposure ▪
Slide 14: 3M 2022 Results Segments Appendix
3M 2022 RESULTS SEGMENTS APPENDIX Please note: Rounding differences may occur. 14 VIG VIENNA INSURANCE GROUP
Slide 15: Strong premium and combined ratio development
STRONG PREMIUM AND COMBINED RATIO DEVELOPMENT 3M 2022 Income statement €mn 3M 2022 3M 2021 +/- % Gross premiums written 3,454.7 3,106.8 11.2 ▪ Strong premium growth in all segments and lines of Net earned premiums 2,622.0 2,416.3 8.5 business Financial result excl. result from shares in at equity 14
Slide 16: Top-line up by 11.2% based on growth in all segments
TOP-LINE UP BY 11.2% BASED ON GROWTH IN ALL SEGMENTS Gross written premiums (€mn; y-o-y change) 1,334 Austria +2.8% 1,371 ▪ Excellent start into the year leads to GWP increase of €347.9mn 480 ▪ Strongest contribution to double-digit growth rate in Czech Czech Republic +21.4% Republic (+€102.8mn) com
Slide 17: Group result before taxes of €123.8mn slightly down by 3.3%
GROUP RESULT BEFORE TAXES OF €123.8MN SLIGHTLY DOWN BY 3.3% Result before taxes (€mn; y-o-y change) 54.4 ▪ AT: result before taxes down (-€31.4mn) due to declined financial Austria -57.8% result impacted by precautionary measures related to Russian 23.0 investment exposure 47.4 Czech Republic +5.9%
Slide 18: Combined ratio P&C at 94.6%
COMBINED RATIO P&C AT 94.6% Overview Group and segments (y-o-y development net, %) ▪ One NatCat event (storm) in 3M 2022 with ~€30mn net impact ▪ Strong combined ratio improvement in the segment Austria due to better claims and cost ratio ▪ Slightly improved combined ratio in the Czech Republic and
Slide 19: Financial result
FINANCIAL RESULT Stable current income in EUR ‘000 3M 2022 3M 2021 +/- % Current income 226,737 226,231 0.2 ▪ Higher income from appreciations and income from disposal of Income from appreciations 13,468 4,826 >100 investments (+€22.4mn) offset increased depreciation of Income from disposal of inves
Slide 20: Investment split and bond portfolio overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Stable portfolio mix Investment split Bond portfolio by rating1 4.5% 3M 2022 8.8% 30.9% 32.0% 22.4% 5.9% 2.5% 10.2% 12M 2021 9.1% 29.6% 33.8% 22.0% 5.5% 5.8% €36.1bn AAA AA A BBB Other 8.3% in 3M 2022 68.7% Bond portfolio by issuer 3M 2022 53.5% 5.3% 17.8
Slide 21: 3M 2022 balance sheet
3M 2022 BALANCE SHEET IFRS (€mn) €mn 31.03.2022 31.12.2021 +/- % Intangible assets 1,751 1,744 0.4 Right-of-Use assets 173 173 -0.3 Investments 33,589 34,810 -3.5 Investments of unit- and index-linked life insurance 8,027 8,525 -5.9 Reinsurers’ share in underwriting provisions 1,878 1,565 20.0 Recei
Slide 22: Equity development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) -6.8% 94 20 -582 5,598 5,218 -3 91 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M 2021 the period changes gains and losses payment of 3M 2022 22 3M 2022 RESULTS VIG VIENNA INSURANCE GROUP
Slide 23: 3M 2022 Results Segments Appendix
3M 2022 RESULTS SEGMENTS APPENDIX Please note: Rounding differences may occur. 23 VIG VIENNA INSURANCE GROUP
Slide 24: Austria
AUSTRIA Precautionary measures impact profit GWP development (€mn) P&L Comments €mn 3M 2022 3M 2021 +/- % +2.8% Gross premiums written 1,371.0 1,334.1 2.8 ▪ Strong premium growth in other property 1,371 1,334 Net earned premiums 868.2 848.9 2.3 (+€28.3mn) and motor (+€8.0mn) 122 Health 118 Financial
Slide 25: Czech Republic
CZECH REPUBLIC Favourable development in P&C supported by improved claims ratio GWP development (€mn) P&L Comments +21.4% €mn 3M 2022 3M 2021 +/- % Gross premiums written 582.5 479.6 21.4 ▪ Strong premium growth of €102.8mn mainly 582 Net earned premiums 390.7 342.4 14.1 coming from other property (
Slide 26: Poland
POLAND Decreased result before taxes due to lower financial result GWP development (€mn) P&L Comments +3.5% €mn 3M 2022 3M 2021 +/- % Gross premiums written 336.6 325.3 3.5 ▪ Premium growth of €11.2mn coming mainly 337 325 5 Net earned premiums 248.9 237.7 4.7 from other property (+€13.6mn) offsetti
Slide 27: Extended CEE
EXTENDED CEE Double-digit premium growth and solid result before taxes GWP development (€mn) P&L Comments +19.9% €mn 3M 2022 3M 2021 +/- % Gross premiums written 890.9 743.0 19.9 ▪ Extended CEE include Albania incl. Kosovo, 891 Net earned premiums 597.1 526.3 13.4 Baltic states, Bosnia & Herzegovina
Slide 28: Special Markets
SPECIAL MARKETS Lower result before taxes based on increased combined ratio GWP development (€mn) P&L Comments +4.5% €mn 3M 2022 3M 2021 +/- % Gross premiums written 152.1 145.5 4.5 ▪ Special Markets include Germany, Georgia, 152 146 Net earned premiums 82.0 89.9 -8.8 Liechtenstein, Turkey 15 Financ
Slide 29: Group Functions
GROUP FUNCTIONS Double-digit premium growth and positive development in result before taxes GWP development (€mn) P&L Comments +25.2% €mn 3M 2022 3M 2021 +/- % 660 Gross premiums written 659.6 526.8 25.2 ▪ Group Functions include VIG Holding, VIG Net earned premiums 438.1 371.0 18.1 Re, Wiener Re, V
Slide 30: 3M 2022 Results Segments Appendix
3M 2022 RESULTS SEGMENTS APPENDIX Please note: Rounding differences may occur. 30 VIG VIENNA INSURANCE GROUP
Slide 31: Managing Board of Vienna Insurance Group
MANAGING BOARD OF VIENNA INSURANCE GROUP As of 1 January 2021 Elisabeth Stadler, CEO Hartwig Löger, Deputy CEO Liane Hirner, CFRO Peter Höfinger Gerhard Lahner, COO Gabor Lehel, CIO Harald Riener Peter Thirring, CTO Credit: Ian Ehm 31 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 32: Country responsibilities
THE COMBINATION OF C-LEVELS AND COUNTRY RESPONSIBILITIES ENSURES THE EFFECTIVE MANAGEMENT OF THE GROUP STADLER HIRNER THIRRING LAHNER LEHEL Chief Executive Officer Chief Finance & Risk Officer Chief Technical Officer Chief Operations Officer Chief Innovation Officer Estonia Region North Poland Ukrai
Slide 33: 3M 2022 premiums by business lines and country (I)
3M 2022 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- % Austria 113.6 110.9 2.4 109.2 103.9 5.1 632.3 604.0 4.7 Czech Republic 95.8 84.6 13.3 77.5 64.2 20.8 208.2 152.7 36.4 Poland 73.4 76.9 -4.5 44.8 4
Slide 34: 3M 2022 premiums by business lines and country (II)
3M 2022 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- % Austria 337.0 339.2 -0.7 57.4 57.8 -0.6 121.5 118.3 2.7 Czech Republic 187.6 165.5 13.4 7.5 7.9 -4.9 5.9 4.9 21.0 Poland 42.0 41.2 2.0 33.0
Slide 35: 3M 2022 country overview GWP / PBT / combined ratio
3M 2022 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before tax Combined Ratio net (in %) 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- % 3M 2022 3M 2021 +/- %p Austria 1,371.0 1,334.1 2.8 23.0 54.4 -57.8 92.9 94.2 -1.3 Czech Republic 582.5 479.6 21.4 50.2 47.4 5.9 94.1 94.4 -
Slide 36: 3M 2022 key financials
3M 2022 KEY FINANCIALS Overview of KPIs Net result for the period after taxes Operating RoE (%) Earnings per share (€)* and non-controlling interest (€mn) 11.6 3.09 2.85 99 91 9.6 3M 2021 3M 2022 3M 2021 3M 2022 3M 2021 3M 2022 * Annualised figures 36 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 37: VIG share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (13/5/2022) 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 38: 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) 38 APPENDIX VIG VIENNA
Slide 39: Appendix
39 APPENDIX 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 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 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
Vienna Insurance Group — Q1 2022 Earnings Presentation on 6ix