Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — FY2009 Earnings Presentation

42 slides from Vienna Insurance's earnings presentation, Mar 31, 2010

  1. Slide 1: V.I.G. – solid performance on pre-crisis level of 2007

    V.I.G. – solid performance on pre-crisis level of 2007 YE 2009 final results telephone conference 31 March 2010

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics 2 Presenting Team Topics ƒ Martin Simhandl, CFO ƒ Highlights p.3 ƒ Peter Hagen, Member of the ƒ P&L and Balance Sheet p.8 Managing Board ƒ EEV p.20 ƒ Peter Höfinger, Member of the ƒ Appendix p.26 Managing Board ƒ Roland Gröll, Head of Group Finance and Accounting ƒ Kurt Eb

  3. Slide 3: Highlights

    Vienna Insurance Group – YE 2009 results Highlights

  4. Slide 4: Expansion of Insurance Business

    Expansion of Insurance Business 4 Montenegro Lithuania ƒ Planning to set up a life insurance company ƒ Opening of branch office of Compensa Non- in Montenegro in 2010 life (Poland) ƒ Distribution of products via Erste Group ƒ Launch of Non-life insurance business as of subsidiary April 2010 ƒ Furthe

  5. Slide 5: YE 2009 Highlights

    YE 2009 Highlights V.I.G. with continuing solid performance 5 ƒ EUR 441mn PBT - solid performance ƒ Combined ratio (net) stable at ƒ Group Embedded Value: 96.3% - cost reduction Value added Increase to € 4.59bn programme balancing higher - RoEV of 15.4% claims ƒ Increase of profitability in Life ins

  6. Slide 6: Financial Highlights (I)

    YE 2009 Financial Highlights (I) V.I.G. caught up with year 2007 PBT level 6 GWP 1.5% Profit before Tax 541 -18.4% 7,899 8,019 6,912 437 441 5,882 321 2006 2007 2008 2009 IFRS 2006 2007 IFRS 2008 2009 Net Profit after Tax and Minorities Combined Ratio (net) 96.9 -16.7% 96.4 96.3 409 340 313 95.5 261

  7. Slide 7: Financial Highlights (II)

    YE 2009 Financial Highlights (II) 7 EPS ROE before Tax (%) 18.0 3.41 2.98 14.8 14.3 2.66 2.48 10.0 2006 2007 2008 2009 2006 2007 2008 2009 IFRS IFRS

  8. Slide 8: P&L and Balance Sheet Details

    Vienna Insurance Group – YE 2009 results P&L and Balance Sheet Details

  9. Slide 9: Income Statement

    YE 2009 Income Statement IFRS (€mn) 9 YE 2009 YE 2008 +/-% 1. Gross premiums written 8,019.3 7,898.9 1.5 2. Net earned premiums 7,242.3 6,961.6 4.0 3. Financial result 929.1 918.1 1.2 4. Other income 125.0 127.5 -1.9 Total income 8,296.4 8,007.2 3.6 6. Expenses for claims and insurance benefits -5,8

  10. Slide 10: Balance Sheet

    YE 2009 Balance Sheet IFRS (€mn) 10 YE 2009 YE 2008 +/- % Intangible assets 1,975 1,649 19.8 Investments 25,894 24,548 5.5 Unit- and index-linked investments 4,628 3,602 28.5 Reinsurers’ share in underwriting provisions 1,117 1,222 -8.6 Receivables 1,563 1,475 6.0 Tax receivables and advance payment

  11. Slide 11: P&L Major Items – Gross Written Premiums (I)

    YE 2009 P&L Major Items – Gross Written Premiums (I) Premium development affected by weak CEE currencies (€mn) 11 GWP Non-life GWP Life Total Development of s YE 2009 YE 2008 +/-% YE 2009 YE 2008 +/-% YE 2009 YE 2008 +/-% Versicherung Group in CEE Austria 1,888.7 1,883.4 0.3% 1,985.4 1,872.4 6.0% 3,

  12. Slide 12: P&L Major Items – Gross Written Premiums (II)

    YE 2009 P&L Major Items – Gross Written Premiums (II) 12 Premium adjusted for currency effects (€mn) FX development YE 09 vs YE 08 (vs. €; average exchange rates) GWP Non-life GWP Life Total CZK YE 2009 YE 2008 +/-% YE 2009 YE 2008 +/-% YE 2009 YE 2008 +/-% SKK Austria 1,888.7 1,883.4 0.3% 1,985.4 1

  13. Slide 13: P&L Major Items – Expenses for Claims Incurred

    YE 2009 P&L Major Items – Expenses for Claims Incurred Loss ratio up due to higher claims in CEE and floods in A, CZ 13 ƒ Group loss ratio (net) at 65.3% (64.5% in YE ƒ Poland increasing by 5.5% pts to 63.1% due to 2008, 65.1% in HY09) increase of reserves as a consequence of legal ƒ Austrian loss r

  14. Slide 14: P&L Major Items – Operating Expenses

    YE 2009 P&L Major Items – Operating Expenses Cost ratio down as a result of savings programmes 14 ƒ Group cost ratio (net) decreasing by 0.9% pts ƒ Poland showing lower cost ratio at 37.5% to reach 31.0% (YE 08: 41.1%) thanks to lower administration costs as well as abolition of Religa tax ƒ Cost ra

  15. Slide 15: P&L Major Items – Financial Result

    YE 2009 P&L Major Items – Financial Result Sound financial result 15 Income P&C Life Health Total in € '000 YE 2009 YE 2008 YE 2009 YE 2008 YE 2009 YE 2008 YE 2009 YE 2008 Current income 176,724 207,956 1,095,810 1,007,718 39,729 39,201 1,312,263 1,254,875 Income from appreciations 11,505 12,112 55,

  16. Slide 16: Investment Split

    YE 2009 Investment Split V.I.G. follows a consistent investment approach 16 Portfolio Overview +5.5% ~ € 25.9bn € 24.5bn ~ Cash & Deposits ~ 4% 1% Alternatives ~ 7% ~ 3% Affiliated Companies ~ 2% Loans ~ 5% ~ 15% ~ 19% ~ 13% Real Estate ~ 3% Equities ~ 12% ~ 3% ~ 52% ~ 62% Bonds YE 2008 YE 2009

  17. Slide 17: Development of Bond Portfolio

    Development of Bond Portfolio 17 By Issuer By Rating 6% 2% 3% 7% 7% 9% 36% 45% 49% 48% 13% 16% 21% 21% 44% 33% 21% 19% YE 2008 YE 2009 YE 2008 YE 2009 Government 1 Pfandbriefe/Covered Bonds AAA AA A BBB Other Financials Corporates 1: Government and government guaranteed

  18. Slide 18: Composition of Real Estate

    Composition of Real Estate 18 Real Estate (€mn) ~7% ~9% ~6% ~31% ~30% ƒ More than 60% of real estate with ~32% regulated Austrian housing societies ƒ Entities are governed by a specific legal framework ~62% 3,301.2 ƒ Rents are subsidised by government => 3,090.4 ~61% ~62% low vacancies ƒ Residents a

  19. Slide 19: Shareholders’ Equity

    YE 2009 Shareholders’ Equity Shareholders’ equity supports strong capitalisation 19 Change in Group Shareholders’ Equity (€mn) 363.7 -293.4 4,628.6 174.0 250.0 4,138.8 -7.3 2.7 Increase of 11.8% in YE 2009 Equity as of YE Currency Changes in Capital increase AFS unrealised Profit for the Dividend Eq

  20. Slide 20: European Embedded Value 2009 (overview)

    Vienna Insurance Group - YE 2009 results European Embedded Value 2009 (overview)

  21. Slide 21: Group Embedded Value 2009

    Group Embedded Value 2009 Results (€mn) 21 L&H P&C Total Austria / Germany 2009 2008(*) 2009 2008(*) 2009 2008(*) Comments Free Surplus 227.6 351.0 Required Capital 356.7 320.5 ƒ All results based on local GAAP ANAV 584.2 671.4 73.3 164.4 657.6 835.8 ƒ GEV reflects amounts deemed to be PVFP 1,440.3

  22. Slide 22: Group Embedded Value 2009 – Return on Adjusted EV

    Group Embedded Value 2009 Return on Adjusted Embedded Value (€mn) 22 L&H P&C Total Change in Methodology and Assumptions 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 ƒ The reference interest rates EV Dec 31, 2008 Restated 1,658.9 164.4 1,823.3

  23. Slide 23: Group Embedded Value 2009 – New Business Values

    Group Embedded Value 2009 New Business Values (€mn) 23 L&H 2009 2008(*) Comments Austria / Germany NBV 51.0 62.8 -18.8% ƒ The NBV represents the value generated APE 203.8 259.1 by new business sold during the reporting APE-Ratio 25.0% 24.2% 3.2% period. PVNBP 1,991.1 2,529.8 ƒ The NBV has decreased

  24. Slide 24: Outlook

    Vienna Insurance Group - YE 2009 results Outlook

  25. Slide 25: Outlook for 2010

    Outlook for 2010 Confidence about rising PBT despite economic uncertainty 25 V.I.G.'s Path of Profitability 2010 CAGR: ƒ Subdued GDP growth outlook for Austria, +16.4% higher unemployment rates expected ƒ CEE core countries slowly regaining GDP €540 growth €437 €441 €321 €240 - Single-digit premium

  26. Slide 26: Appendix

    Vienna Insurance Group – YE 2009 results Appendix

  27. Slide 27: P&L – Business Segments: Property & Casualty

    YE 2009 P&L – Business Segments Property & Casualty, IFRS (€mn) 27 YE 2009 YE 2008 +/-% 1. Gross premiums written 4,206.7 4,278.9 -1.7 2. Net earned premiums 3,457.7 3,375.4 2.4 3. Financial result 164.9 307.0 -46.3 4. Other income 77.3 77.9 -0.7 Total income 3,699.9 3,760.3 -1.6 6. Expenses for cla

  28. Slide 28: P&L – Business Segments: Life

    YE 2009 P&L – Business Segments Life, IFRS (€mn) 28 YE 2009 YE 2008 +/-% 1. Gross premiums written 3,491.2 3,305.7 5.6 2. Net earned premiums 3,464.0 3,272.9 5.8 3. Financial result 748.4 598.5 25.0 4. Other income 47.6 49.6 -4.0 Total income 4,259.9 3,920.9 8.6 6. Expenses for claims and insurance

  29. Slide 29: P&L – Business Segments: Health

    YE 2009 P&L – Business Segments Health, IFRS (€mn) 29 YE 2009 YE 2008 +/-% 1. Gross premiums written 321.4 314.3 2.3 2. Net earned premiums 320.7 313.3 2.3 3. Financial result 15.8 12.7 25.0 4. Other income 0.1 0.0 69.2 Total income 336.6 326.0 3.2 6. Expenses for claims and insurance benefits -272.

  30. Slide 30: P&L - Split by Regions (I)

    YE 2009 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 30 Austria Czech Republic YE 2009 YE 2008 +/-% YE 2009 YE 2008 +/-% 1. Gross premiums written 3,874.2 3,755.7 3.2 1,603.3 1,419.7 12.9 2. Net earned premiums 3,529.6 3,409.3 3.5 1,441.0 1,189.5 21.1 3. Financial result 682.3 732.7 -6.9

  31. Slide 31: P&L - Split by Regions (II)

    YE 2009 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 31 Slovakia Poland Romania YE 2009 YE 2008 +/-% YE 2009 YE 2008 +/-% YE 2009 YE 2008 +/-% 1. Gross premiums written 628.4 605.6 3.8 548.3 795.1 -31.0 606.7 608.2 -0.3 2. Net earned premiums 552.8 523.2 5.6 496.2 747.5 -33.6 550.6 528.

  32. Slide 32: P&L - Split by Regions (III)

    YE 2009 P&L - Split by Regions (III) Regional segments, IFRS (€mn) 32 1 Other CEE Other TOTAL YE 2009 YE 2008 +/-% YE 2009 YE 2008 +/-% YE 2009 YE 2008 +/-% 1. Gross premiums written 546.5 496.4 10.1 212.0 218.1 -2.8 8,019.3 7,898.9 1.5 2. Net earned premiums 464.6 378.8 22.6 207.6 185.0 12.2 7,242.

  33. Slide 33: Results by Country

    YE 2009 Results by Country IFRS (€mn) 33 GWP Non-Life Life GWP GWP Total Profit before Taxes Net Combined Ratio YE 2009 YE 2008 YE 2009 YE 2008 YE 2009 YE 2008 YE 2009 YE 2008 YE 2009 YE 2008 Austria 1,888.7 1,883.4 1,985.4 1,872.4 3,874.2 3,755.7 247.5 344.3 96.0% 94.6% Czech Rep. 975.5 982.8 627.8

  34. Slide 34: Change in Group Shareholders‘ Equity

    Change in Group Shareholders‘ Equity IFRS (€‘000) 34 1.1. - 31.12.2009 1.1. - 31.12.2008 Equity as of 1 January 4,138,790 2,615,563 Exchange rate changes -7,276 -40,833 Changes in scope of consolidation 2,659 31,628 Capital increase 250,000 1,343,454 Unrealised gains and losses from financial 174,04

  35. Slide 35: Premium Portfolio

    Premium Portfolio Basis of business origination substantially widened 35 GWP by Geography YE 06 GWP by Geography YE 09 Other CEE Other 4.1% Other Romania 3.4% Other CEE 2.6% 4.0% 6.9% Poland Romania 5.7% 7.6% Austria Austria Slovakia 56.7% Poland 48.3% 6.6% 6.8% Czech Slovakia Republic 7.8% 17.8% Cz

  36. Slide 36: Life Insurance Premium Split

    Life Insurance Premium Split IFRS (€mn) 36 Premiums written - direct business YE 2009 YE 2008 +/- % Regular premiums 2,144.1 1,931.6 11.0% Single premiums 1,332.5 1,363.1 -2.2% Total premiums written - direct business 3,476.6 3,294.7 5.5% thereof: Policies with profit participation 1,953.3 1,851.7 5

  37. Slide 37: Q4 2009 Income Statement

    Q4 2009 Income Statement IFRS (€mn) 37 Q4 2009 Q4 2008 +/-% 1. Gross premiums written 1,913.3 1,881.1 1.7 2. Net earned premiums 1,868.0 1,792.5 4.2 3. Financial result 201.9 111.9 80.4 4. Other income 39.4 84.8 -53.5 Total income 2,109.3 1,989.2 6.0 6. Expenses for claims and insurance benefits -1,

  38. Slide 38: YE 2009 Exchange Rates

    YE 2009 Exchange Rates National currency unit per EUR 38 YE 2009 YE 2008 Balance Sheet Balance Sheet Country Curr. P & L EUR P & L EUR EUR EUR Bulgaria EUR/BGN 1.9558 1.9558 1.9558 1.9558 Croatia EUR/HRK 7.3000 7.3400 7.3555 7.2239 Estonia EUR/EEK 15.6466 15.6466 - - Liechtenstein EUR/CHF 1.4836 1.5

  39. Slide 39: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 128,000,000 39 Shareholder Structure ~ 30 % Free Float ~70 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  40. Slide 40: Shareholder Structure (II)

    Shareholder Structure (II) Total number of shares 128,000,000 40 Free Float Geographical Split ~26 % Austria ~3% Others ~14% North America ~24% UK & Ireland ~33% Continental Europe

  41. Slide 41: V.I.G. Share & Contact Details

    V.I.G. Share & Contact Details Investor Relations 41 V.I.G. Share Investor Relations Vienna Insurance Group ƒ Number of common shares Schottenring 30, 1010 Vienna E-Mail: investor.relations@vig.com 128mn www.vig.com/ir ƒ ISIN AT0000908504 ƒ Thomas Schmee (Head of IR) ƒ Listing Tel. +43 (0)50 350 - 2

  42. Slide 42: Disclaimer

    Disclaimer 42 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

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