Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Investor Presentation (April 2014)
16 slides from Vienna Insurance's investor presentation, Apr 10, 2014
Slide 1: Group Embedded Value Results 2013
Group Embedded Value Results 2013 April 10, 2014
Slide 2: Introduction: GEV Reporting
Introduction GEV Reporting Market Consistent Embedded Value©1 (MCEV) Principles applied Group Embedded Value (GEV) calculated as Life & Health (L&H) MCEV plus Adjusted Net Asset Value (ANAV) for Property & Casualty (P&C) All results are based on local GAAP. All results are shown after minori
Slide 3: Methodology
Methodology GEV GEV reflects the present value of amounts deemed to be distributable to shareholders. MCEV 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) minus
Slide 4: Methodology
Methodology GEV MCEV is based on stochastic cash flow projections using market consistent economic scenarios. Liquidity premium and extrapolation methodology follows recent market practice. The MCEV allows for management actions and policyholder behaviour. Assumed policyholder profit participa
Slide 5: Group Embedded Value Results
Group Embedded Value Results in € mn L&H P&C Total 2013 2012 (*) 2013 2012 (*) 2013 2012 (*) Austria / Germany Free Surplus 578.7 85.8 Required Capital 476.6 830.0 ANAV 1,055.3 915.8 311.2 271.1 1,366.5 1,186.9 PVFP 1,742.4 1,550.4 1,742.4 1,550.4 - TVFOG - 146.9 - 279.2 - 146.9 - 279.2 - FCRC - 69.
Slide 6: Return on Embedded Value
Return on Embedded Value Results in € mn L&H P&C Total Austria / Germany GEV 2012 Reported 1,942.3 254.5 2,196.9 GEV 2012 Restated 1,940.3 271.1 2,211.4 Opening Adjustments 40.6 3.1 43.8 thereof Dividends -81.0 147.6 66.7 GEV 2012 Restated and Adjusted 1,980.9 274.3 2,255.2 Return on GEV 495.9 25.0%
Slide 7: Value of New Business
Value of New Business Results in € mn Austria / Germany 2013 2012 +/-% VNB 35.7 36.6 -2.5% APE 163.9 166.3 -1.4% PVNBP 1,800.0 1,815.2 -0.8% APE-Ratio 21.8% 22.0% -1.1% PVNBP-Ratio 2.0% 2.0% -1.7% CEE 2013 2012 +/-% VNB 123.1 167.0 -26.3% APE 270.1 373.1 -27.6% PVNBP 2,042.4 2,874.8 -29.0% APE-Ratio
Slide 8: Value of New Business: Comments on VNB Results
Value of New Business Comments on VNB Results Value generated by new business sold during the reporting period Almost 80% of VNB is generated in CEE Profitability in CEE at an excellent level of 6.0% Stable profit margins of 2.0% in Austria / Germany 8
Slide 9: Sensitivities: MCEV Life & Health
Sensitivities MCEV – Life & Health 4.0% Change in Yield Curve +1% -3.3% -8.8% Change in Yield Curve -1% 2.8% -2.2% Equity and Property Values -10% -0.6% 0.1% Equity and Property Implied Volatilities +25% -0.1% -1.0% Swaption Implied Volatilities +25% -0.2% -4.0% Maintenance Expenses +10% -2.3% 4.0%
Slide 10: Sensitivities: VNB Life & Health
Sensitivities VNB – Life & Health 17.8% Change in Yield Curve +1% -5.9% -28.8% Change in Yield Curve -1% 6.1% Equity and Property Values -10% 3.0% Equity and Property Implied Volatilities +25% -0.3% -7.3% Swaption Implied Volatilities +25% 0.2% -13.6% Maintenance Expenses +10% -4.4% 11.6% Austria /
Slide 11: Development of GEV
Development Return on GEV in € mn 48 6,153 562 5,868 -16 5,852 -154 -155 5,543 GEV 2012 Restatement GEV 2012 Dividends FX Effects and GEV 2012 Return in Return in GEV 2013 reported changes restated others adjusted L&H P&C 11
Slide 12: Analysis of Change: Life & Health
Analysis of Change Austria / Germany – Life & Health in € mn Operating Economic 269 2,477 214 54 -77 36 1,981 MCEV 2012 Value of New Roll forward Assumption Operating Investment income MCEV 2013 adjusted Business 2013 changes variance and others 12
Slide 13: Analysis of Change: CEE Life & Health
Analysis of Change CEE – Life & Health in € mn Operating Economic 21 -50 123 -27 0 1,566 1,500 MCEV 2012 Value of New Roll forward Assumption Operating Investment income MCEV 2013 adjusted Business 2013 changes variance and others 13
Slide 14: Reconciliation: IFRS Equity to ANAV
Reconciliation IFRS Equity to ANAV in € mn 2013 2012 (*) Consolidated IFRS equity 5,020.1 5,688.6 Minorities -170.4 -344.0 Hybrid capital -245.6 -495.6 Intangible assets -2,265.7 -2,410.0 Subtotal 2,338.3 2,439.0 Goodwill, other intangible assets and capital consolidation adjustments 552.8 856.1 Dif
Slide 15: Summary: Highlights
Summary Highlights GEV of € 6,152.7 mn (+5.1%) High Return on GEV of 11.0% amounting to € 609.9 mn Outstanding MCEV return of 25.0% in Austria / Germany L&H Excellent CEE profit margin of 6.0% Stable Surplus in Claims and Unearned Premium Reserves of € 534.0 mn 15
Slide 16: Disclaimer
Disclaimer 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 des
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