Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — 9M 2007 Earnings Presentation

36 slides from Vienna Insurance's earnings presentation, Nov 14, 2007

  1. Slide 1: Vienna Insurance Group - gaining momentum

    Vienna Insurance Group - gaining momentum 9M 2007 results – 14 November 2007

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics 2 Presenting Team Topics § Martin Simhandl, CFO § Strategic Update p.4 § Peter Hagen, Member of the § Highlights p.9 Managing Board § P&L and Balance Sheet p.13 § Kurt Ebner, Group Actuary in Chief § Group Targets p.20 § Roland Gröll, Head of Group § Appendix p.21 Accounti

  3. Slide 3: VIG Outperforming Promises

    VIG Outperforming Promises Progress in VIG´s strategic and operative position 3 Undertaking two years ago Position today § Strengthening § Increased market share in of leading position in Austria Austria by more than 2% pts – § Expansion of CEE business VIG clearly no. 1 through acquisitions and org

  4. Slide 4: Strategic Update

    Vienna Insurance Group- 9M 2007 results Strategic Update

  5. Slide 5: Acquisition of Asirom in 3 Steps

    Acquisition of Asirom in 3 Steps Strengthening VIG´s no.1 position in dynamic Romanian market 5 Acquisition of Asirom Romanian Insurance Market Population (mn) 21.6 GDP/Capita 5,463 USD 50.2 % Penetration 1.7% Density 94.5 USD Asirom Market Growth (01-06, CAGR) 42.8% § listed Non-life and Life insur

  6. Slide 6: VIG – Top Player in its CEE markets

    VIG – Top Player in its CEE markets Number 2 among international insurance groups 6 Market Share in CEE2 Market Share in CEE2 Non-life ~ 17.1% ~ 15.7% ~ 13.2% ~ 12.3% ~ 13.4%1 ~ 11.1%1 ~ 5.9% ~ 4.9% ~ 4.8% ~4.5% ~ 3.3% ~0.0% G qa G z i BC al an VI G IN G a C nz li er ni iq K VI IN lli ra KB U en lia

  7. Slide 7: Geographical Diversification Enhanced

    Geographical Diversification Enhanced GWP split by region 7 GWP by Geography 9M 05 GWP by Geography 9M 06 GWP by Geography 9M 07 Other Other Other Other CEE 5.3% Other CEE 3.7% Other CEE 3.5% 5.9% PL: 1.3% 12.7% 18.2% RO: 2.3% PL: 5.4% PL: 7.8% RO: 3.9% RO: 6.0% Slovakia Austria Austria Austria 6.7%

  8. Slide 8: Investments

    Investments Conservative investment policy paying off 8 Investment policy Rough Portfolio Outline Affiliated Alternative Inv. § VIG keeps conservative Companies ~ 1% ~ 4% investment policy throughout Loans market cycles ~ 8% § VIG has no US-subprime Bonds investments and does not Real Estate ~ 65% ~

  9. Slide 9: Highlights

    Vienna Insurance Group- 9M 2007 results Highlights

  10. Slide 10: 9M 2007 Highlights (I)

    9M 2007 Highlights (I) CEE business expanding at fast pace 10 § Continued organic growth in all major markets – increase of market shares § CEE premium share in non-life at 55% § Total CEE business already at 42% of Group premiums § Poland and Romania new business segments due to dynamic growth § PB

  11. Slide 11: 9M 2007 Highlights (II)

    9M 2007 Highlights (II) GWP growing faster than in first half year; C/R below 96% 11 GWP Profit before Tax 16.5% 40.5% 321 324 5,882 5,008 5,032 240 4,321 231 4,101 3,778 188 156 2004 2005 2006 9M 05 9M 06 9M 07 2004 2005 2006 9M 05 9M 06 9M 07 IFRS IFRS Net Profit after Tax and Minorities Combined

  12. Slide 12: 9M 2007 Highlights (III)

    9M 2007 Highlights (III) Record EPS; ROE climbing fast towards 18% 12 EPS (annualised) ROE before Tax 3.18 23.9 21.9 2.48 19.5 2.27 2.32 17.6 14.8 14.8 1.64 1.41 2004 2005 2006 9M 05 9M 06 9M 07 2004 2005 2006 9M 05 9M 06 9M 07 IFRS IFRS

  13. Slide 13: P&L and Balance Sheet

    Vienna Insurance Group- 9M 2007 results P&L and Balance Sheet

  14. Slide 14: 9M 2007 Income Statement

    9M 2007 Income Statement IFRS (€mn) 14 9M 2007 9M 2006 +/-% 1. Gross written premiums 5,031.8 4,320.6 16.5 2. Net earned premiums 4,220.3 3,586.8 17.7 3. Net investment income1 743.1 538.6 38.0 4. Other income 31.8 38.7 -17.9 Total income 4,995.2 4,164.2 20.0 6. Expenses for claims incurred -3,567.4

  15. Slide 15: 9M 2007 Balance Sheet

    9M 2007 Balance Sheet IFRS (€mn) 15 9M 2007 2006 +/- % Intangible assets 503 461 8.9 Total investments 19,212 17,260 11.3 Unit- and index-linked investments 2,887 2,341 23.3 Reinsurers’ share in technical provisions 1,149 963 19.3 Receivables 1,161 984 18.0 Deferred tax assets 32 24 35.3 Other asset

  16. Slide 16: P&L Major Items – Gross Written Premiums

    9M 2007 P&L Major Items – Gross Written Premiums Again growing above market in Austria and CEE (€ mn) 16 § Group GWP gained 16.5% to € 5,032mn § Austria: total GWP up 7.3% to reach € 2,737mn. Life up 12.5% at 175.3 € 1,292mn with sound growth in subsidised pensions; includes 159.0 ~€140mn premium ef

  17. Slide 17: P&L Major Items – Expenses for Claims Incurred

    9M 2007 P&L Major Items – Expenses for Claims Incurred Loss ratio improving vs. last year 17 § Group loss ratio (net) with marked improvement § Poland improving by 1.4% pts to 60.1% due to by 1.6% pts to 65.4% despite €10mn net effect effective claims and risk management from Kyrill storm in Q1 2007

  18. Slide 18: P&L Major Items – Operating Expenses

    9M 2007 P&L Major Items – Operating Expenses Cost ratio stable despite dynamic business growth 18 § Group cost ratio (net) gaining just 0.5% to reach § Costs in the Czech Republic slightly higher at 30.5% despite tremendous growth in CEE with 27.1% due to acquisition costs acquisition cost effect: V

  19. Slide 19: P&L Major Items – Net Investment Income

    9M 2007 P&L Major Items – Net Investment Income Sound growth in line with business expansion (€mn) 19 § Increase in Group Net Investment Income by 38.0% to Net Investment Income € 743.1mn 15.3 96.1 § Austria grew by 37.2% influenced by trading gains, full 13.7 Other consolidation of Austrian life su

  20. Slide 20: Financial Targets

    Financial Targets Ambitious Group targets for the period of 2007 - 2010 20 VIG’s financial targets Comments § 9M results allow to expect YE 2007 PBT of about Profit before Tax Targets in € mn € 435mn ~770 § PBT target for 2008 set at € ~530mn CAGR: ~21% § For the first time VIG sets PBT target for 2

  21. Slide 21: Appendix

    Vienna Insurance Group- 9M 2007 results Appendix

  22. Slide 22: P&L – Business Segments (Property & Casualty)

    9M 2007 P&L – Business Segments Property & Casualty, IFRS (€mn) 22 9M 2007 9M 2006 +/-% 1. Gross written premiums 2,793.1 2,413.8 15.7 2. Net earned premiums 1,997.5 1,690.5 18.2 3. Net investment income 132.7 94.6 40.3 4. Other income 19.2 26.2 -26.9 Total income 2,149.4 1,811.3 18.7 6. Expenses fo

  23. Slide 23: P&L – Business Segments (Life)

    9M 2007 P&L – Business Segments Life, IFRS (€mn) 23 9M 2007 9M 2006 +/-% 1. Gross written premiums 2,007.6 1,681.8 19.4 2. Net earned premiums 1,993.9 1,673.5 19.1 3. Net investment income 598.8 436.2 37.3 4. Other income 12.6 12.5 0.9 Total income 2,605.4 2,122.2 22.8 6. Life benefits -2,064.9 -1,6

  24. Slide 24: P&L – Business Segments (Health)

    9M 2007 P&L – Business Segments Health, IFRS (€mn) 24 9M 2007 9M 2006 +/-% 1. Gross written premiums 231.1 225.0 2.7 2. Net earned premiums 228.9 222.8 2.7 3. Net investment income 11.5 7.9 46.7 4. Other income 0.0 0.0 -100.0 Total income 240.5 230.7 4.2 6. Expenses for claims incurred -195.9 -189.8

  25. Slide 25: P&L - Split by Regions (I)

    9M 2007 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 25 Austria Czech Republic 9M 2007 9M 2006 +/-% 9M 2007 9M 2006 +/-% 1. Gross written premiums 2,736.7 2,550.2 7.3 842.3 775.3 8.6 2. Net earned premiums 2,375.0 2,216.2 7.2 665.4 595.0 11.8 3. Net investment income 631.7 460.6 37.2 35.

  26. Slide 26: P&L - Split by Regions (II)

    9M 2007 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 26 Slovakia Poland Romania 9M 2007 9M 2006 +/-% 9M 2007 9M 2006 +/-% 9M 2007 9M 2006 +/-% 1. Gross written premiums 362.8 287.1 26.4 390.7 232.6 68.0 301.7 167.2 80.4 2. Net earned premiums 288.6 203.5 41.9 337.3 176.3 91.3 221.1 138.

  27. Slide 27: P&L - Split by Regions (III)

    9M 2007 P&L - Split by Regions (III) Regional segments, IFRS (€mn) 27 Other CEE Other TOTAL 9M 2007 9M 2006 +/-% 9M 2007 9M 2006 +/-% 9M 2007 9M 2006 +/-% 1. Gross written premiums 222.3 149.3 48.9 175.3 159.0 10.2 5,031.8 4,320.6 16.5 2. Net earned premiums 178.9 118.7 50.7 154.1 139.0 10.9 4,220.3

  28. Slide 28: 9M 2007 Results by Country

    9M 2007 Results by Country IFRS (€mn) 28 Non-Life Life Total Profit before Tax Combined Ratio 9M 2007 9M 2006 9M 2007 9M 2006 9M 2007 9M 2006 9M 2007 9M 2006 9M 2007 9M 2006 Austria 1,444.5 1,401.5 1,292.3 1,148.6 2,736.7 2,550.2 206.8 151.8 94.5% 95.8% Czech Rep. 637.1 597.9 205.2 177.4 842.3 775.3

  29. Slide 29: Change in Group Shareholders' Equity / APE

    Change in Group Shareholders‘ Equity / APE IFRS 29 1.1. - 30.09.2007 1.1. - 30.09.2006 Equity as of 1 January 2,283,208 2,059,332 Currency Changes 1,302 2,066 Changes to consolidation 55,719 2,113 Capital Increase - - Unrealised Gains and Losses on financial -90,081 -56,687 instruments available for

  30. Slide 30: Life Insurance Premium Split

    Life Insurance Premium Split IFRS (€mn) 30 Premiums written - direct business 9M 2007 9M 2006 +/- % Regular premiums 1.343,8 1.075,5 24,9% Single premiums 662,3 594,9 11,3% Total premiums written - direct business 2.006,1 1.670,3 20,1% thereof: Policies with profit participation 1.134,7 1.096,5 3,5%

  31. Slide 31: Q3 2007 Income Statement

    Q3 2007 Income Statement IFRS (€mn) 31 Q3 2007 Q3 2006 +/-% 1. Gross written premiums 1,538.7 1,291.3 19.2 2. Net earned premiums 1,391.2 1,175.5 18.4 3. Net investment income1 189.9 177.5 6.9 4. Other income 11.1 9.7 14.8 Total income 1,592.2 1,362.7 16.8 6. Expenses for claims incurred -1,146.8 -9

  32. Slide 32: 9M 2007 Exchange Rates

    9M 2007 Exchange Rates 32 9M 2007 9M 2006 Balance Sheet P&L Balance Sheet P&L Country Curr. EUR EUR EUR EUR Bulgaria BGN 0. 511300 0. 511300 0.511300 0.511300 Croatia HRK 0.137414 0. 136226 1.475579 1.460814 Liechtenstein CHF 0.602373 0. 610855 0.629683 0.638430 Poland PLN 0.265041 0. 261391 0.25180

  33. Slide 33: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 105,000,000 33 Shareholder Structure 28.7 % Free Float 71.3 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  34. Slide 34: Shareholder Structure (II)

    Shareholder Structure (II) 34 Free Float Geographical Split 0.3% Others 32.0 % Austria 20.9% Continental Europe 25.5% 21.3% North America UK & Ireland

  35. Slide 35: Contact Details

    Contact Details Investor Relations 35 Wiener Städtische Versicherung AG Vienna Insurance Group Schottenring 30, 1010 Vienna, Austria www.wienerstaedtische.com Vienna Stock Exchange: WST Reuters: WISV.VI Bloomberg: WST AV Datastream: O:WNST § Thomas Schmee Tel. +43 (0)50 350 – 21900 t.schmee@staedtis

  36. Slide 36: Disclaimer

    Disclaimer 36 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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