Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — 08 Bank Conference 2019

45 slides from Vienna Insurance's conference presentation, Oct 7, 2019

  1. Slide 1: Vienna Insurance Group Investor Presentation Half-year results 2019

    VIENNA INSURANCE GROUP Investor Presentation Half-year results 2019

  2. Slide 2: VIG – The leading insurance group in Austria & CEE

    VIG – THE LEADING INSURANCE GROUP IN AUSTRIA & CEE Close to Around Represented in 200 years of experience 50 Group companies 25 markets More than More than Solvency Ratio 50% of premiums and profits coming 25,000 employees 238% based on Partial Internal Model from CEE Since Current market capitaliza

  3. Slide 3: Management principles

    MANAGEMENT PRINCIPLES 1 Local entrepreneurship  Knowledge of local needs and markets  Decentralised structures and efficient decision-making procedures 2 Multi-brand strategy  Around 50 brands in 25 countries  Utilisation of established local brands 3 Multi-channel distribution  Various distrib

  4. Slide 4: VIG is best positioned to leverage on the positive market development in CEE

    VIG IS BEST POSITIONED TO LEVERAGE ON THE POSITIVE MARKET DEVELOPMENT IN CEE Excellent market shares throughout the region 1 2018: 25 markets Client/talent base: Country Market position Market share total 180mn people Austria 1 1 1 24.7% 10 Czech Rep. 1 2 1 31.9% 4 Slovakia 1 2 1 32.8% Poland 4 4 5

  5. Slide 5: CEE region growing stronger than EU-15

    CEE REGION GROWING STRONGER THAN EU-15 Promising GDP per capita growth 2019 - 2023 Gap in GDP growth in purchasing parities CEE vs. EU-15 Forecast CAGR 8% 2019-2023 real GDP 6% 2.7% (CEE) vs. 4% 1.5% (EU-15) 2% 0% 2000 2003 2006 2009 2012 2015 2018 2021 -2% -4% real GDP growth PPP (USD) CEE real GDP

  6. Slide 6: 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. 2019-2023 Insurance density 2017, in EUR (premiums per capita) Austria 1.5 Austria 1,948.5 Croatia 2.3 Croatia 289.7 Hungary 2.3

  7. Slide 7: Agenda 2020 creating added value and contribution to future success

    AGENDA 2020 CREATING ADDED VALUE AND CONTRIBUTION TO FUTURE SUCCESS Optimisation of business model Ensuring future growth  Shared Services  Use of growth potentials Creating cost benefits by merging back-office functions Intensify selected business areas  e.g. health and companies insurance, rein

  8. Slide 8: Agenda 2020 review after half time

    AGENDA 2020 Review after half time Ensuring future growth Optimisation of business model Use of growth potentials Digitalisation Anti-Fraud-Management Health insurance  >150 ongoing digitalisation projects  Roll-out in 13 companies in 10 countries 58% premium increase in the 5 key countries of BG,

  9. Slide 9: Attractive dividend policy with newly defined payout range

    ATTRACTIVE DIVIDEND POLICY WITH NEWLY DEFINED PAYOUT RANGE Payout ratio increased consistently to 47.6% by 2018 2016 2017 2018 Earnings per share 2.16 2.23 2.04 NEW DIVIDEND POLICY (€) Dividend per share Payout Ratio in a range of 0.80 0.90 1.00 (€) 30 – 50% of Group profits after taxes and non-cont

  10. Slide 10: Bancassurance

    BANCASSURANCE Pilot projects contribute to growth especially in non-life business  Integral part of Agenda 2020  Focus on increasing sale of P&C and health business via banks  Successful cooperation in 11 countries CZ SK  Total premium volume as of 6M 2019: €675mn (+8%) AT HU  Life: +7%, Non-Li

  11. Slide 11: VIG well on track to reach targets

    VIG WELL ON TRACK TO REACH TARGETS Despite increased global macroeconomic uncertainty, VIG confirms its outlook Outlook unchanged Gross written Profit before Combined premium taxes Ratio VIG targets continuous VIG continuously strives 2019 €9.9bn €500mn - €520mn to improve both, the improvement base

  12. Slide 12: Results 6M 2019

    STRATEGY & OUTLOOK RESULTS 6M 2019 SEGMENTS APPENDIX Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards (IFRS). Rounding differences may occur when rounded amounts or percenta

  13. Slide 13: Highlights 6M 2019

    HIGHLIGHTS 6M 2019 VIG well on track to reach targets for 2019 and 2020 Gross written premiums Profit before taxes Combined Ratio Solvency Ratio € 5,446.7mn € 257.1mn 96.4% 238% GWP up by 5.8% (+€296mn) PBT increased by 10.5% Weather-related claims impact Stable compared to YE 2018 (+€24mn)  Strong

  14. Slide 14: Half-year result up by 10.5% despite lower financial result

    HALF-YEAR RESULT UP BY 10.5% DESPITE LOWER FINANCIAL RESULT 6M 2019 Income statement €mn 6M 2019 6M 2018 +/- % Gross premiums written 5,446.7 5,150.3 5.8 Net earned premiums 4,621.8 4,354.9 6.1 Financial result1 423.2 511.3 -17.2  Financial result (incl. at equity consolidated companies) down Other

  15. Slide 15: Gross written premiums of €5.4bn up by 5.8%

    GROSS WRITTEN PREMIUMS OF €5.4bn UP BY 5.8% Overview by segments Gross written premiums (€mn; y-o-y chg.)  CEE growth of 7.9%; excl. consolidation effects 4.1%  Premium growth drivers are Poland (+€89mn) and the Baltics (+€64mn) - incl. first-time consolidation of Wiener (former Gothaer) and Seesa

  16. Slide 16: Growth in all lines of business; double-digit growth in health

    GROWTH IN ALL LINES OF BUSINESS; DOUBLE-DIGIT GROWTH IN HEALTH BY +12% Gross written premiums by lines of business (€mn; y-o-y chg.); incl. Central Functions MTPL Casco Other property Total premiums +5.8% 6M 2018 773 605 2,388 5,447 +1.0% +9.5% +7.0% 5,150 781 MTPL 773 6M 2019 781 663 2,554 663 Casc

  17. Slide 17: Group profit before taxes of €257.1mn up by 10.5%

    GROUP PROFIT BEFORE TAXES OF €257.1mn UP BY 10.5% Solid profit growth in all market segments except for the Czech Republic Result before taxes (€mn; y-o-y change)  AT: €11mn profit growth; positive developments in life and health fully offset decline in P&C  CZ: €7mn decrease driven by lower finan

  18. Slide 18: Combined ratio (P&C) at 96.4% up by 0.1ppt

    COMBINED RATIO (P&C) AT 96.4% UP BY 0.1PPT Increased weather related claims in 6M 2019 P&C Combined Ratio development Overview by segments (12M y-o-y development net, %)  Despite snow pressure in AT and storm Eberhard in CZ, +1.0%p +4.0%p 0.0%p +0.3%p +1.1%p -3.8%p both segments with almost stable

  19. Slide 19: Financial result decreased by 14.1%

    FINANCIAL RESULT DECREASED BY 14.1% Stable current income supported by contribution from housing societies Total TEUR 6M 2019 6M 2018 +/- % Current income 658,410 647,126 1.7  Financial result down by €67mn excl. at equity Income from appreciations 14,682 7,060 >100 consolidated companies  Overall

  20. Slide 20: Investment split and bond portfolio overview

    INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Resilient and stable portfolio mix 6M 2019: Total €39.3bn Bond portfolio by rating1 4.1% 1.1% 6.2% AAA AA A BBB Other 6M 2019 9% 32% 37% 18% 4% 6.3% 12M 2018 10% 32% 35% 17% 6% 5.7% 66.6% Bond portfolio by issuer 10.0% 6M 2019 52% 7% 18% 23% Bonds Deposit

  21. Slide 21: Segments

    STRATEGY & OUTLOOK RESULTS 6M 2019 SEGMENTS APPENDIX Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards (IFRS). Rounding differences may occur when rounded amounts or percenta

  22. Slide 22: Austria

    AUSTRIA CoR despite increased weather-related claims stable at 95.3% GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +2.1% Gross premiums written 2,216.2 2,170.0 2.1  Financial result decreased by €64.4mn 2,216 Net earned premiums 1,644.5 1,611.5 2.0 driven by lower income from disposal of 2,170 in

  23. Slide 23: Czech Republic

    CZECH REPUBLIC Profit decrease driven by lower financial result GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +1.3% Gross premiums written 893.1 881.7 1.3  Premiums up by €11.4mn driven by life 893 Net earned premiums 666.0 641.1 3.9 regular business and motor lines 882 Financial result1 33.8 56.

  24. Slide 24: Slovakia

    SLOVAKIA Life growth fully compensates for declining P&C development GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +1.4% Gross premiums written 407.3 401.8 1.4  Premium increase of €5.5mn due to 407 Net earned premiums 333.4 323.6 3.0 growth in life 402 Financial result 26.0 27.0 -3.9 Other incom

  25. Slide 25: Poland

    POLAND Ongoing favourable premium and profit development GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +19.5% Gross premiums written 544.1 455.2 19.5  Premium growth of €88.9mn driven by 544 Net earned premiums 419.1 338.1 24.0 other property (+€59.0mn); start of Financial result 18.9 13.9 35.7 c

  26. Slide 26: Romania

    ROMANIA Further intentional decrease of MTPL business with negative impact on CoR GWP development (€mn) €mn 6M 2019 6M 2018 +/- % -13.9% Gross premiums written 234.9 272.7 -13.9  Premiums down by €37.9mn driven by Net earned premiums 174.4 194.0 -10.1 MTPL business (-€50.5mn) 273 Financial result 7

  27. Slide 27: Baltic states

    BALTIC STATES First time consolidation of Seesam Insurance GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +33.0% Gross premiums written 257.1 193.2 33.0  Double-digit premium growth in all lines of 257 Net earned premiums 189.3 132.1 43.3 business Financial result 5.1 2.7 87.8 Other income 1.9 0.5

  28. Slide 28: Hungary

    HUNGARY Continued growth of top- and bottom-line GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +14.0% Gross premiums written 143.2 125.6 14.0  Premium growth mainly driven by MTPL 143 Net earned premiums 95.9 85.8 11.8 (+€9.5mn) and other property (+€7.6mn) Financial result 2.9 3.3 -12.7 126 25 O

  29. Slide 29: Bulgaria

    BULGARIA Excellent premium and profit development GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +42.9% Gross premiums written 124.8 87.3 42.9  Premium growth in all lines of business; 125 Net earned premiums 71.4 64.4 10.8 largest contribution from health of Financial result 6.1 5.1 19.9 +€17.3mn

  30. Slide 30: Turkey/Georgia

    TURKEY/GEORGIA Profit growth driven by improved financial result GWP development (€mn) €mn 6M 2019 6M 2018 +/- % -4.3% Gross premiums written 111.5 116.5 -4.3  Adjusted for FX effects, double digit 117 Net earned premiums 53.0 47.5 11.5 premium growth 112 Financial result 5.9 3.3 77.9 Other income

  31. Slide 31: Remaining CEE

    REMAINING CEE Ongoing double-digit premium and profit growth GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +18.2% Gross premiums written 218.8 185.1 18.2  Remaining CEE includes Albania (incl. 219 Net earned premiums 157.5 133.4 18.1 Kosovo), Bosnia-Herzegovina, Croatia, Financial result 18.3 12.

  32. Slide 32: Other markets

    OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +9.6% Gross premiums written 164.1 149.7 9.6  Premium increase driven by growth of the 164 Net earned premiums 140.4 126.5 11.0 life single premium business in Financial result 9.4 10.1 -6.8 Liechtenstein 150 Ot

  33. Slide 33: Central functions

    CENTRAL FUNCTIONS Deterioration due to lower financial result and other income GWP development (€mn) €mn 6M 2019 6M 2018 +/- % +3.7% Gross premiums written 850.1 819.7 3.7  Central Functions include VIG Holding, 850 Net earned premiums 674.6 653.2 3.3 VIG Re, VIG Fund, the non-profit Financial resu

  34. Slide 34: Appendix

    STRATEGY & OUTLOOK RESULTS 6M 2019 SEGMENTS APPENDIX Please note: The quarterly figures for net assets, financial position and results of operations are prepared in accordance with the International Financial Reporting Standards (IFRS). Rounding differences may occur when rounded amounts or percenta

  35. Slide 35: 6M 2019 key financials

    6M 2019 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and non-controlling interest (€mn) ROE after taxes and non-controlling interests1 (%) 147 151 7.2 7.2 137 6.4 6M 17 6M 18 6M 19 6M 17 6M 18 6M 19 EPS net of hybrid interest1 (€) Book value per share2 (€) 2.36 30.63 31.60 3

  36. Slide 36: Equity development in 6M 2019

    EQUITY DEVELOPMENT IN 6M 2019 Change in yield curve impacts valuation of fixed-yield investments Change in Group Shareholders’ Equity (€mn) +7% 377 6,268 -142 -2 188 11 5,836 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M 2018 the period changes gains and losses payment

  37. Slide 37: 6M 2019 balance sheet

    6M 2019 BALANCE SHEET IFRS (€mn) €mn 30.06.2019 31.12.2018 +/- % Intangible assets 2,200 1,961 12.2 Investments 37,852 36,288 4.3 Unit- and index-linked investments 8,437 8,049 4.8 Reinsurers’ share in underwriting provisions 1,329 1,136 17.0 Receivables 1,830 1,563 17.1 Tax receivables and advance

  38. Slide 38: 6M 2019 premiums by business lines and country (I)

    6M 2019 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % Austria 188.7 188.1 0.3 169.8 162.5 4.4 859.0 822.1 4.5 Czech Republic 156.8 149.4 4.9 125.8 123.5 1.9 258.3 264.4 -2.3 Slovakia 78.2 79.5 -1.6 53

  39. Slide 39: 6M 2019 premiums by business lines and country (II)

    6M 2019 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % Austria 646.5 643.5 0.5 136.8 144.3 -5.2 215.4 209.6 2.7 Czech Republic 319.7 305.8 4.5 24.6 31.6 -22.2 7.9 6.9 14.6 Slovakia 90.5 85.5 5.8

  40. Slide 40: 6M 2019 country overview GWP / PBT / combined ratio

    6M 2019 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net (in %) 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- %p Austria 2,216.2 2,170.0 2.1 87.9 76.7 14.6 95.3 95.3 0.0 Czech Republic 893.1 881.7 1.3 77.5 84.9 -8.8 94.9 94.6 0

  41. Slide 41: VIG share (I)

    VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Current analyst recommendation split Current listings Ticker Rating Major Indices SELL Vienna  Vienna Stock Exchange: VIG Standard & Poor´s: ATX 1 BUY Prague  Bloomberg: VIG AV / VIG CP A+, stable outlook A

  42. Slide 42: VIG share (II)

    VIG SHARE (II) Shareholder structure Free float split by region1 North America 34% Continental Europe 27% ~70% ~30% Austria 25% UK & Ireland 12% Other 2% Wiener Städtische Versicherungsverein Free Float (Mutual) 1 Split of identified shares, April 2019 (Source: CMi2i) 42 APPENDIX VIG VIENNA INSURANC

  43. Slide 43: Appendix

    43 APPENDIX VIG VIENNA INSURANCE GROUP

  44. Slide 44: Contact details / financial calendar

    CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2019* Head of Investor Relations Team Leader Corporate Reporting Date Event Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 17 Apr.

  45. Slide 45: 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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