Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — Non-Deal Roadshow (June 2007)

37 slides from Vienna Insurance's roadshow presentation, Jun 19, 2007

  1. Slide 1: Vienna Insurance Group - Extending the CEE insurance play

    Vienna Insurance Group - Extending the CEE insurance play Roadshow London – June 19, 2007

  2. Slide 2: VIG is the Leading Austrian Insurance Group operating in 18 Countries

    VIG is the Leading Austrian Insurance Group operating in 18 Countries Market entry of Albania and Macedonia currently under way 2 Excellent market position in Austria and CEE No. 2 or No. 3 in the Czech Leading Position Republic, Slovakia, Romania in Austria and Bulgaria § #1 in Property & Casualty

  3. Slide 3: VIG Enters two New Promising Markets

    VIG Enters two New Promising Markets… …with high growth potential 3 GDP Growth Penetration Density 2005 2004-2006e2 2005 (USD) EU 15 1.7% 8.6% 2,878 Austria 2.0% 6.2% 2,342 CEE1 4.1% 3.2% 176 Turkey 7.5% 1.6% 79 Albania 5.5% 0.4% 13 Turkish market data Albanian market data Population (mn) 72.6 Popul

  4. Slide 4: Acquisition Details

    Acquisition Details Ray Sigorta and Sigma 4 Acquisition of Ray Sigorta Acquisition of Sigma1 TBIH TBIH (60% owned by VIG) (60%owned by VIG) 58.2% ≥ 60% Ray Sigorta Sigma Sh.a § listed non-life insurance company with € 136mn § founded in 1998, non-life insurance company with premium volume (+30% YoY)

  5. Slide 5: Use of SPO Funds

    Use of SPO Funds ~75% of SPO funds already used 5 SPO 2005 In Dec. 2005 VIG raised € 900mn (net) for the following purposes: § ~ 50% for CEE acquisitions § ~ 30% to support the strong organic growth of the CEE subsidiaries § cushion (Solvency II) Reported by 9M 06 § € 417mn for acquisitions € 515mn

  6. Slide 6: CEE Region Offers Double Leverage

    CEE Region Offers „Double Leverage“ Sustainable growth through GDP and insurance penetration 6 6.000 GDP Growth Insurance Insurance Premium per Capita (USD) 2004-2006F Penetration 20051 Switzerland CEE2 4.1% 3.3% Netherlands GB Austria 2.0% 6.2% Belgium 4.000 Denmark EU 15 1.7% 8.6% Austria Fra nce

  7. Slide 7: Significant Growth Potential in CEE for Insurance

    donau\Analyst Presentation\16 Analyst Presentation 17-Nov-2005.ppt Significant Growth Potential in CEE for Insurance Insurance Density, 2005 (Premiums per Capita) 7 $3.500 $3.000 2.878 $2.500 2.342 $2.000 $1.500 978 $1.000 478 $500 334 315 275 245 88 176 70 53 49 $0 EU-15 1 AUT SLO CZ H SK HR PL BG

  8. Slide 8: Largest CEE Insurance Pure Play

    Largest CEE Insurance Pure Play Only Vienna Insurance Group widely captures CEE potential 8 CEE Premiums as % of Total Group Premiums 37.5% VIG 31.1% 28.7% 2006 2005 12.6% UNIQA 10.2% 2004 10.1% 3.6% Allianz 3.3% 3.0% VIG‘s unique share of CEE business growing fastest 2.6% (YE 2006: already 37.5% of

  9. Slide 9: VIG Has Been a Pioneer in the CEE Region

    VIG Has Been a Pioneer in the CEE Region Following a Very Targeted Expansion Strategy 9 § Focus – Retail § Investment philosophy – Step-by-step market entry – Tight operational management – 2-4 years to reach break-even, accelerated growth thereafter – Czech and Slovak businesses have reached >20% R

  10. Slide 10: VIG: Attractive Franchise (I)

    VIG: Attractive Franchise (I) Distribution is key: Multi-brand strategy 10 Austria CEE § VIG is umbrella brand § local companies keep well established brands to support distribution

  11. Slide 11: VIG: Attractive Franchise (II)

    VIG: Attractive Franchise (II) Distribution is key: Multi-channel strategy 11 Strong Multi-Channel Distribution § Austria: Roughly 30/30/30% split between tied agents/ bank distribution/ brokers etc. in Tied new business agents Financial advisors § CEE: Bank distribution Different from country to co

  12. Slide 12: VIG in Austria

    VIG in Austria Attractive franchise plus growth potential in life insurance 12 Life Premium per Capita (USD) § Leading market position in all business lines 1,793 - #1 in property & casualty with 22% market share 1,130 1,095 2005 2000 - #1 in life with 25% market share 607 - #2 in health with 21% ma

  13. Slide 13: Financials 3M 2007 Highlights and Targets

    Vienna Insurance Group- Financials 3M 2007 Highlights and Targets

  14. Slide 14: 3M 2007 Highlights (I)

    3M 2007 Highlights (I) GWP up by 15.2%; Combined ratio improved significantly vs. 3M 2006 14 GWP Profit before Tax 321 5,882 5,008 240 4,101 15.2% 38.2% 156 1,752 2,018 101 1,554 73 55 2004 2005 2006 3M 05 3M 06 3M 07 2004 2005 2006 3M 05 3M 06 3M 07 IFRS IFRS Net Profit after Tax and Minorities Com

  15. Slide 15: 3M 2007 Highlights (II)

    3M 2007 Highlights (II) EPS stepping up swiftly 15 EPS1 ROE before Tax 23.3 2.89 21.9 2.48 19.5 2.27 2.22 17.1 1.84 14.8 14.0 1.41 2004 2005 2006 3M 05 3M 06 3M 07 2004 2005 2006 3M 05 3M 06 3M 07 IFRS IFRS 1 quarterly figures annualised

  16. Slide 16: Financial Targets

    Financial Targets New targets set for 2007 - 2009 16 § Rising contribution from CEE companies Profit before Tax Targets in € mn and full consolidation of Union life CAGR: ~ 18% subsidiary provides the basis for 520 - 530 470 - 480 management to set new financial targets 410 § New PBT target for 2007

  17. Slide 17: 3M 2007 results P&L and Balance Sheet

    Vienna Insurance Group- 3M 2007 results P&L and Balance Sheet

  18. Slide 18: 3M 2007 Income Statement

    3M 2007 Income Statement IFRS (€mn) 18 3M 2007 3M 2006 +/-% 1. Gross written premiums 2,018.4 1,752.2 15.2 2. Net earned premiums 1,464.3 1,247.4 17.4 1 3. Net investment income 205.3 162.0 26.7 4. Other income 8.9 15.8 -43.9 Total income 1,678.5 1,425.2 17.8 6. Expenses for claims incurred -1,184.7

  19. Slide 19: 3M 2007 Balance Sheet

    3M 2007 Balance Sheet IFRS (€mn) 19 3M 2007 2006 +/- % Intangible assets 455 461 -1.5 Total investments 18,939 17,260 9.7 Unit- and index-linked investments 2,657 2,341 13.5 Reinsurers’ share in technical provisions 1,212 963 25.8 Receivables 1,292 984 31.3 Deferred tax assets 24 24 1.5 Other assets

  20. Slide 20: P&L Major Items - Gross Written Premiums

    3M 2007 P&L Major Items – Gross Written Premiums Largely growing above market in Austria and CEE (€ mn) 20 § Group GWP increased by 15.2% to € 2,018mn § Austria: total GWP up 5.2% to reach € 1,196mn. Life up 8.3% at 70.6 € 520.7mn with sound growth in current premiums vs. weaker 67.6 Other 751.5 dem

  21. Slide 21: GWP Split by Region

    GWP Split by Region Other CEE share increasing at fast pace 21 GWP by Geography 3M 06 GWP by Geography 3M 07 Other Other 3.9% 3.5% Other CEE Other CEE 8.5% 14.7% Austria Slovakia Austria 59.3% 6.7% 64.9% Slovakia 7.0% Czech Republic 16.0% Czech Republic 15.5% 3M 2006 Total: € 1.8bn 3M 2007 Total: €

  22. Slide 22: P&L Major Items - Expenses for Claims Incurred

    3M 2007 P&L Major Items – Expenses for Claims Incurred Loss ratio reduced substantially 22 § Group loss ratio (net) with marked improvement to 63.3% despite € 10mn net effect from Kyrill storm § Austrian loss ratio lower by 1.8% pts at 66.1% thus reaching regular level § Czech Republic which was sev

  23. Slide 23: P&L Major Items - Operating Expenses

    3M 2007 P&L Major Items – Operating Expenses Cost ratio impacted by strong business growth 23 § Group cost ratio (net) up at 33.0%, driven by acquisition costs: VIG does not account for DACs which affects cost ratio roughly by 2% pts (premium income is high at start of the year and leads to higher d

  24. Slide 24: P&L Major Items - Net Investment Income

    3M 2007 P&L Major Items – Net Investment Income Sound growth in line with business expansion (€mn) 24 § Increase in Group Net Investment Income by 26.7% to Net Investment Income € 205.3mn 4.2 34.0 § Austria grew by 20.5% influenced by trading gains, 4.5 Other 18.7 CEE inclusion of Housing Societies

  25. Slide 25: 3M 2007 results Appendix

    Vienna Insurance Group- 3M 2007 results Appendix

  26. Slide 26: P&L - Business Segments: Property & Casualty

    3M 2007 P&L – Business Segments Property & Casualty, IFRS (€mn) 26 3M 2007 3M 2006 +/-% 1. Gross written premiums 1,185.3 1,026.4 15.5 2. Net earned premiums 667.3 548.6 21.7 3. Net investment income 33.1 23.7 39.8 4. Other income 4.5 6.3 -29.0 Total income 704.9 578.5 21.8 6. Expenses for claims in

  27. Slide 27: P&L - Business Segments: Life

    3M 2007 P&L – Business Segments Life, IFRS (€mn) 27 3M 2007 3M 2006 +/-% 1. Gross written premiums 753.2 648.1 16.2 2. Net earned premiums 720.6 624.5 15.4 3. Net investment income 168.1 133.9 25.5 4. Other income 4.4 9.5 -53.7 Total income 893.1 768.0 16.3 6. Expenses for claims incurred -699.0 -62

  28. Slide 28: P&L - Business Segments: Health

    3M 2007 P&L – Business Segments Health, IFRS (€mn) 28 3M 2007 3M 2006 +/-% 1. Gross written premiums 79.9 77.7 2.9 2. Net earned premiums 76.4 74.2 2.9 3. Net investment income 4.2 4.5 -6.6 4. Other income 0.0 0.0 0.0 Total income 80.6 78.7 2.4 6. Expenses for claims incurred -63.1 -59.7 5.6 7. Oper

  29. Slide 29: P&L - Split by Regions (I)

    3M 2007 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 29 Austria Czech Republic Slovakia 3M 2007 3M 2006 +/-% 3M 2007 3M 2006 +/-% 3M 2007 3M 2006 +/-% 1. Gross written premiums 1,196.3 1,137.4 5.2 312.6 281.0 11.2 141.4 116.8 21.0 2. Net earned premiums 869.7 827.6 5.1 219.7 189.6 15.9 9

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

    3M 2007 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 30 Other CEE Other TOTAL 3M 2007 3M 2006 +/-% 3M 2007 3M 2006 +/-% 3M 2007 3M 2006 +/-% 1. Gross written premiums 297.6 149.3 99.3 70.6 67.6 4.4 2,018.4 1,752.2 15.2 2. Net earned premiums 219.1 102.9 113.1 62.0 59.5 4.2 1,464.3 1,247

  31. Slide 31: 3M 2007 results by country

    3M 2007 results by country IFRS (€mn) 31 Non-Life Life Total Profit before Tax Combined Ratio 3M 2007 3M 2006 3M 2007 3M 2006 3M 2007 3M 2006 3M 2007 3M 2006 3M 2007 3M 2006 Austria 675.6 656.7 520.7 480.7 1,196.3 1,137.4 62.5 54.8 95.7% 96.8% Czech Rep. 245.0 225.9 67.6 55.1 312.6 281.0 18.3 6.6 95

  32. Slide 32: Change in Group Shareholders' Equity / APE

    Change in Group Shareholders‘ Equity / APE IFRS 32 (€'000) 1.1. - 31.03.2007 1.1. - 31.03.2006 Equity as of 1 January 2,283,208 2,059,332 Currency Changes -4,004 705 Changes to shares 37,987 96 Capital Increase - - Unrealised Gains and Losses on financial 28,168 -7,059 instruments available for sale

  33. Slide 33: Exchange Rates

    3M 2007 Exchange Rates 33 3M 2007 3M 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 0.135044 0.135766 0.136203 0.136192 Liechtenstein CHF 0.615498 0.618738 0.632871 0.641437 Poland PLN 0.258612 0.257311 0.253646 0.2

  34. Slide 34: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 105,000,000 34 Shareholder Structure Split Free Float 29.2% Retail Investors 1.6% 28.7 % Employees Free Float 69.2% Institutional 71.3 % Investors Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  35. Slide 35: Shareholder Structure (II)

    Shareholder Structure (II) 35 Free Float Geographical Split 1.3% Others 39.9 % Austria 13.2% UK & Ireland 27.0% 18.6% Continental Europe North America

  36. Slide 36: Contact Details

    Contact Details Investor Relations 36 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

  37. Slide 37: Disclaimer

    Disclaimer 37 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

Vienna Insurance Group — Non-Deal Roadshow (June 2007) on 6ix