Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Investor Presentation (March 2017)
22 slides from Vienna Insurance's investor presentation, Mar 29, 2017
Slide 1: Vienna Insurance Group Investor Presentation
Vienna Insurance Group Investor Presentation Zürs, 29 March 2017
Slide 2: Agenda 2020 – 12M 2016 Preliminary results
12M 2016 Agenda 2020 Preliminary results Please note: All information for the financial year 2016 is based on preliminary unaudited data. Financial results for 2015 have been restated.
Slide 3: VIG reached its targets for 2016
VIG reached its targets for 2016 Solid preliminary results Profit before taxes Market share Target: “At least double the profit before Target: taxes 2015 up to €400mn” “Market share of at least 10% over the mid-term 2016 EUR 407mn in selected markets” Health insurance Target: “Strengthening health i
Slide 4: Today VIG best positioned in its region due to successful business model
Today VIG best positioned in its region due to successful business model Main pillars of the VIG business model Focus on Conservative Austria and Local investments and CEE entrepreneurship reinsurance Multi-brand Multi-channel strategy distribution Austria Croatia Bosnia & Albania Baltics Poland Her
Slide 5: Positive economic environment and strong growth potential going forward
Positive economic environment and strong growth potential going forward Annual insurance spending shows significant growth potential in the CEE region Real GDP growth p.a. 2016-2019 Insurance density 2015, in EUR (premiums per capita) AT 1.2 AT 2,034.1 HR 2.2 HR 271.4 HU 2.3 HU 285.2 CZ 2.4 CZ 516.3
Slide 6: Agenda 2020: Key strategic areas
Agenda 2020: Key strategic areas Directions of impact Optimisation of business model Safeguard future viability • Shared Services • Use of growth potentials Creating cost benefits by merging back-office Intensify selected business areas e.g. health functions and companies insurance, reinsurance, coo
Slide 7: Growth initiatives
Growth initiatives Leveraging selected business areas Health Reinsurance Potential in the area of private health insurance business. VIG RE in 2016 • Founded in 2008 and by now well established VIG companies with health ins. • 52 employees Focus on health insurance • Active in 31 countries • S&P rat
Slide 8: Successful partnership with Erste Group
Successful partnership with Erste Group 2016: ~EUR 1.3bn of premiums generated as a result of bankassurance cooperation Promotion of bank insurance with Erste Group Common project together with Erste Group Target: optimisation of products, distribution and profits for both with focus on health and C
Slide 9: Digitisation: Decentralised approach with local companies acting as 'innovation labs'
Digitisation: Decentralised approach with local companies acting as ‘innovation labs’ Customer behaviour and online preferences differ between generations and across countries Local companies develop appropriate digital solutions according to customer needs in terms of products, services and distrib
Slide 10: Assistance
Assistance Roll Out in CEE (2014 - 2017) • Assistance as an integrated part of insurance products • Stronger customer loyalty through high-quality service • More than 350,000 assistance cases in the last 3 years • Adaptation to changing customer needs through digitisation (Health app, GPS tracking,
Slide 11: Agenda 2020 – 12M 2016 Preliminary results
12M 2016 Agenda 2020 Preliminary results Please note: All information for the financial year 2016 is based on preliminary unaudited data. Financial results for 2015 have been restated.
Slide 12: Preliminary results for the financial year 2016
Preliminary results for the financial year 2016 Sound development of top and bottom line €9,051mn Growth of 0.3% despite reduced life single premium business Solid premium increases in all lines of business except for life single GWP premium business (-19.2%) GWP excl. life single premium business u
Slide 13: Overall premium growth mainly influenced by life single premium reduction
Overall premium growth mainly influenced by life single premium reduction Overview of premiums by segments (I) Gross written premiums (€mn; y-o-y chg.) 12M15 12M16 -2.8% 4,055.5 3,941.3 -1.7% +2.2% -2.3% 1,554.8 1,529.1 +24.4% 716.5 732.3 838.9 819.2 428.6 533.4 Austria Czech Republic Slovakia Polan
Slide 14: Solid premium growth in CEE region
Solid premium growth in CEE region Overview of premiums by segments (II) Gross written premiums (€mn; y-o-y chg.) 12M15 12M16 -13.9% +7.9% 410.0 353.0 +9.8% +14.5% 331.4 307.2 +136.4% +4.3% 224.2 208.7 204.3 182.3 140.2 131.1 136.7 59.3 The Baltic Hungary Bulgaria Turkey/ Remaining CEE Other markets
Slide 15: Reduction in life single premium business compensated by growth in all other lines
Reduction in life single premium business compensated by growth in all other lines of business Gross written premiums (€mn; y-o-y chg.) MTPL Casco Other property Total premiums +10.8% +8.2% +4.8% +0.3% 1,300 959 3,752 9,020 9,051 1,173 886 3,580 MTPL 1,173 1,300 Casco 886 959 12M15 12M16 12M15 12M16
Slide 16: Group PBT of €406.7mn
Group PBT of €406.7mn Overview of profits by segments (I) Profit before taxes (€mn; y-o-y change) 12M15 12M16 -7.9% 213.0 -6.3% 196.1 163.0 152.8 -5.8% -91.0% 51.9 48.9 20.8 1.9 3.5 -46.4 Austria Czech Republic Slovakia Poland Romania Due to new segmentation in line with amended Cash Generating Unit
Slide 17: Overview of profits by segments (II)
Overview of profits by segments (II) Profit before taxes (€mn; y-o-y change) +9.5% 12M15 12M16 22.2 20.2 +180.4% +13.3% 9.0 6.6 7.4 5.4 3.8 3.2 -2.6 -2.4 -4.7 -11.2 The Baltic Hungary Bulgaria Turkey/ Remaining CEE Other markets Georgia The Baltic: Start-up costs and non-life portfolio transfer impa
Slide 18: Combined ratio (P&C) stable at 97.3%
Combined ratio (P&C) stable at 97.3% P&C Combined ratio development P&C CoR 12M y-o-y regional development (net, %) 97.5 AT +0.1%p 97.6 97.3 97.8 97.9 97.9 97.3 90.7 CZ -0.2%p 30.6 33.3 31.4 30.5 30.4 90.5 96.2 SK -1.3%p 94.9 66.7 64.5 66.5 67.4 66.9 99.3 PL +0.1%p 99.4 102.4 RO -2.4%p 12M15 3M16 6M
Slide 19: Outlook for 2019
Outlook for 2019 Stable development and continuous improvement Gross written premium 2019 VIG plans to steadily increase the premium volume to €9.5bn by 2019 Outlook Profit before taxes Despite the low interest rate environment and the continued negative effect this is expected to have on the financ
Slide 20: Contact details
Contact details Investor Relations Financial calendar 2017 Investor Relations Team Date Event 23 Mar. 2017 Preliminary results for the financial Vienna Insurance Group year 2016 Schottenring 30, 1010 Vienna E-Mail: investor.relations@vig.com 19 Apr. 2017 Annual Report and Embedded www.vig.com/ir Val
Slide 21: The leading insurance specialist in Austria and CEE
THE LEADING WIENER — KooperstioA = uusrran §=© KHADKAW «= Donaris@ «= grea INSURANCE suOriscHe ek Le LL SPECIALIST «lonav Sesto euerZZ RHMKAW sree «= Winner EEWNANSURANCE GROUP VENI BES UUNCE GROUE IN AUSTRIA S-vERsicneRING poistovia rosy ® =| TANAMA inh AND CEE. >*::!, ee TX vex | @ ACC Cc ‘WENA IS
Slide 22: 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
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