Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Erste Group Bank Conference (October 2022)
42 slides from Vienna Insurance's conference presentation, Oct 3, 2022
Slide 1: Investor Presentation Half-year results 2022
VIENNA INSURANCE GROUP Investor Presentation Half-year results 2022
Slide 2: We are the leading insurance group in Central & Eastern Europe
WE ARE THE LEADING INSURANCE GROUP IN CENTRAL & EASTERN EUROPE VIG Group characterised by diversified and resilient business model Represented in Over 30 markets with ~50 group companies 22mn customers Life - single premium Health 6.7% 13.2% Motor own damage 8.2% More than S&P Rating MTPL 15.2% 25,0
Slide 3: Trends identified within VIG 25 strategy still valid in changed economic environment
TRENDS IDENTIFIED WITHIN VIG 25 STRATEGY STILL VALID IN CHANGED ECONOMIC ENVIRONMENT ▪ Nominal interest rate hike may impact life insurance demand positively Evolution ▪ Latent demand to be even more Latent instead of ▪ Real interest rate to remain persistent demand revolution rather low long-term ▪
Slide 4: VIG 25 secures further dynamic development of successful business model
VIG 25 SECURES FURTHER DYNAMIC DEVELOPMENT OF SUCCESSFUL BUSINESS MODEL Initiatives proof to be successful and essential also in new economic environment OPTIMISE ENHANCE EXPAND Operational excellence by Create additional customer value Expansion of the value chain and access including partnerships
Slide 5: Group objectives VIG 25
GROUP OBJECTIVES VIG 25 Focus on financial stability and profitability, customer proximity, growth and sustainability Top 3 Austria Albania Baltic states Bulgaria Czech Republic Expansion of the Group’s leading position in CEE Hungary North Macedonia ▪ Achieving at least a top-three position in each
Slide 6: VIG's core market: Central and Eastern Europe
VIG’S CORE MARKET: CENTRAL AND EASTERN EUROPE CEE – market 2021 GWP market in €bn VIG in CEE ▪ Population: ~172mn1 ▪ VIG with top-three market rank in 18.5 ▪ Market with long-term growth 16.7 10 out of 20 CEE countries Health 2.5 potential 15.2 ▪ Decentralised approach combined 5.2 with local entrep
Slide 7: Austria
AUSTRIA Segment overview Market VIG insurance companies • Number 1 in Austrian insurance market VIG #1 with 22.8% • GWP split 2021: ~65% Non-Life and ~35% Life • Strong core distribution and cooperation partners (e.g. Erste Group) Market Rank 2 (20.9%) • Broad product range and brands with excellent
Slide 8: Czech Republic
CZECH REPUBLIC Segment overview Market VIG insurance companies • Number 1 in Czech insurance market VIG #1 with 31.2% • GWP split 2021: ~63% Non-Life and ~37% Life • Efficient administration due to central back office (Shared Services) Market Rank 2 (26.0%) • Strong bancassurance via Erste Group (Če
Slide 9: Poland
POLAND Segment overview Market VIG insurance companies • GWP split 2021: ~76% Non-Life and ~24% Life Rank 1 (34.9%) • Distinctive multi-brand policy and strong multi-channel Rank 2 (12.8%) distribution to address different target groups Market Rank 3 (11.4%) • Benefitting from cross-company synergie
Slide 10: Overview Aegon CEE transaction first half 2022
OVERVIEW AEGON CEE TRANSACTION FIRST HALF 2022 Aegon CEE transaction comprises businesses in Hungary, Türkiye, Poland and Romania Closing Aegon Hungary and Aegon Türkiye ▪ VIG successfully completed the biggest part of the Aegon transaction with closing on 23 March 2022 of Aegon Hungary ▪ VIG become
Slide 11: Half-year 2022 results highlights
HALF-YEAR 2022 RESULTS HIGHLIGHTS Strong premium and profit growth and very good combined ratio Gross written premiums Profit before taxes Combined Ratio Solvency Ratio € 6,443.1mn (+11.6%) € 277.3mn (+10.3%) 94.3% (-0.9%p) 285% ▪ GWP growth in all segments and ▪ Double-digit growth rate driven ▪ Cl
Slide 12: Executive summary half-year 2022
EXECUTIVE SUMMARY HALF-YEAR 2022 Strong half-year results underpin resilience of VIG Group ▪ Proven business model with its specific management principles give flexibility to local management and ensure customer proximity ▪ In challenging economic environment decentralised approach of VIG beneficial
Slide 13: 6M 2022 Results Segments
6M 2022 RESULTS SEGMENTS APPENDIX Please note: Rounding differences may occur. 13 VIG VIENNA INSURANCE GROUP
Slide 14: Strong performance in the first half of 2022
STRONG PERFORMANCE IN THE FIRST HALF OF 2022 6M 2022 Income statement €mn 6M 2022 6M 2021 +/- % Gross premiums written 6,443.1 5,772.9 11.6 ▪ Strong premium growth in all segments and lines of Net earned premiums 5,268.6 4,822.6 9.2 business Financial result excl. result from shares in at equity 315
Slide 15: Top-line growth (+11.6%) from all segments
TOP-LINE GROWTH (+11.6%) FROM ALL SEGMENTS Gross written premiums (€mn; y-o-y change) 2,280 Austria +4.2% 2,375 ▪ Overall GWP increased by €670.2mn 946 ▪ Strongest contribution to double-digit growth rate in Czech Czech Republic +17.0% 1,106 Republic (+€160.9mn) coming from other property (+€79.8mn)
Slide 16: Strong growth in all lines of business
STRONG GROWTH IN ALL LINES OF BUSINESS Gross written premiums by lines of business (€mn; y-o-y change); incl. Group Functions MTPL Casco Other property Total premiums +11.6% 6M 2021 810 709 2,886 6,443 412 +20.3% +11.1% +15.2% 5,773 485 Health 368 Life single 446 1,418 6M 2022 975 787 3,324 Life reg
Slide 17: Group result before taxes of €277.3mn up by 10.3%
GROUP RESULT BEFORE TAXES OF €277.3MN UP BY 10.3% Result before taxes (€mn; y-o-y change) 105.8 ▪ AT: result before taxes down (-€28.7mn) due to declined financial Austria -27.1% result impacted by measures related to Russian investment 77.1 exposure 96.9 Czech Republic -3.1% ▪ CZ: slightly lower re
Slide 18: Combined ratio (P&C) improved to 94.3%
COMBINED RATIO (P&C) IMPROVED TO 94.3% Overview Group and segments (y-o-y development net, %) ▪ NatCat impact of ~€35mn (net) in 6M 2022 compared to ~€42mn (net) in 6M 2021 ▪ Strong combined ratio improvement in the segment Austria primarily due to better cost ratio ▪ Increased combined ratio in the
Slide 19: Financial result
FINANCIAL RESULT Positive development in current income in EUR ‘000 6M 2022 6M 2021 +/- % Current income 470,840 463,786 1.5 ▪ Current income slightly up (€7.1mn) Income from appreciations 2,320 7,669 -69.8 Income from disposal of investments 131,363 59,149 >100 ▪ Higher income from disposal of inve
Slide 20: Investment split and bond portfolio overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Stable portfolio mix Investment split Bond portfolio by rating1 4.0% 6M 2022 9.3% 29.6% 33.0% 22.1% 6.0% 3.1% 11.1% 12M 2021 9.1% 29.6% 33.8% 22.0% 5.5% 6.0% €34.4bn AAA AA A BBB Other in 6M 2022 8.8% 67.0% Bond portfolio by issuer 6M 2022 52.0% 6.2% 18.6
Slide 21: 6M 2022 balance sheet
6M 2022 BALANCE SHEET IFRS (€mn) €mn 30.06.2022 31.12.2021 +/- % Intangible assets 1,749 1,744 0.3 Right-of-Use assets 196 173 13.2 Investments 31,566 34,810 -9.3 Investments of unit- and index-linked life insurance 7,396 8,525 -13.2 Reinsurers’ share in underwriting provisions 1,883 1,565 20.4 Rece
Slide 22: Equity development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) -19.7% 208 -1 -1,260 5,598 4,494 -179 129 Equity as Profit for Currency AFS unrealised Dividend Other Equity as of 12M 2021 the period changes gains and losses payment of 6M 2022 22 APPENDIX 2: FINANCIALS VIG VIENNA INSURANCE GROUP
Slide 23: 6M 2022 Results Segments Appendix
6M 2022 RESULTS SEGMENTS APPENDIX Please note: Rounding differences may occur. 23 VIG VIENNA INSURANCE GROUP
Slide 24: Austria
AUSTRIA Very good combined ratio; impairment and precautionary measure impact profit GWP development (€mn) P&L Comments €mn 6M 2022 6M 2021 +/- % +4.2% Gross premiums written 2,374.6 2,279.7 4.2 ▪ Strong premium growth in other property 2,375 2,280 Net earned premiums 1,711.1 1,651.4 3.6 (+€58.0mn)
Slide 25: Czech Republic
CZECH REPUBLIC Strong premium growth in all lines of business except life single premium GWP development (€mn) P&L Comments +17.0% €mn 6M 2022 6M 2021 +/- % Gross premiums written 1,106.4 945.6 17.0 ▪ Strong premium growth of €160.9mn mainly 1,106 coming from other property (+€79.8mn) and 13 12 Net
Slide 26: Poland
POLAND Improved combined ratio; decreased result before taxes due to lower financial result GWP development (€mn) P&L Comments +2.9% €mn 6M 2022 6M 2021 +/- % Gross premiums written 659.0 640.7 2.9 ▪ Premium growth of €18.3mn coming mainly 659 641 9 Net earned premiums 494.1 480.7 2.8 from other pro
Slide 27: Extended CEE
EXTENDED CEE Double-digit premium growth rate and solid result before taxes GWP development (€mn) P&L Comments +20.3% €mn 6M 2022 6M 2021 +/- % Gross premiums written 1,722.1 1,431.5 20.3 ▪ Extended CEE include Albania incl. Kosovo, 1,722 Net earned premiums 1,224.4 1,072.0 14.2 Baltic states, Bosni
Slide 28: Special Markets
SPECIAL MARKETS Premium growth in all lines of business GWP development (€mn) P&L Comments +10.4% €mn 6M 2022 6M 2021 +/- % Gross premiums written 297.2 269.1 10.4 ▪ Special Markets include Germany, Georgia, 297 Net earned premiums 167.1 173.7 -3.8 Liechtenstein, Türkiye 269 25 Financial result excl
Slide 29: Group Functions
GROUP FUNCTIONS Double-digit premium growth and positive development in result before taxes GWP development (€mn) P&L Comments +22.4% €mn 6M 2022 6M 2021 +/- % Gross premiums written 1,242.3 1,014.8 22.4 ▪ Group Functions include VIG Holding, VIG 1,242 Net earned premiums 888.3 750.7 18.3 Re, Wiener
Slide 30: 6M 2022 Results Segments Appendix
6M 2022 RESULTS SEGMENTS APPENDIX Please note: Rounding differences may occur. 30 VIG VIENNA INSURANCE GROUP
Slide 31: Continuous payout of dividends since 1994
CONTINUOUS PAYOUT OF DIVIDENDS SINCE 1994 Strong operational development allows for a dividend per share of €1.25 for 2021 2021 2020 2019 2018 Earnings per €1.81 €2.04 share €2.94 €2.59 DIVIDEND POLICY Dividend per €1.25 €0.75 €1.15 €1.00 share Payout Ratio in a range of 30 – 50% of Group profits af
Slide 32: Managing Board of Vienna Insurance Group
MANAGING BOARD OF VIENNA INSURANCE GROUP As of 1 January 2021 Elisabeth Stadler, CEO Hartwig Löger, Deputy CEO Liane Hirner, CFRO Peter Höfinger Gerhard Lahner, COO Gabor Lehel, CIO Harald Riener Peter Thirring, CTO Credit: Ian Ehm 32 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 33: Country responsibilities
THE COMBINATION OF C-LEVELS AND COUNTRY RESPONSIBILITIES ENSURES THE EFFECTIVE MANAGEMENT OF THE GROUP STADLER HIRNER THIRRING LAHNER LEHEL Chief Executive Officer Chief Finance & Risk Officer Chief Technical Officer Chief Operations Officer Chief Innovation Officer Estonia Region North Poland Ukrai
Slide 34: 6M 2022 premiums by business lines and country (I)
6M 2022 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- % Austria 196.9 191.5 2.8 189.8 179.2 5.9 983.4 925.4 6.3 Czech Republic 197.3 175.5 12.4 162.6 136.9 18.8 356.0 276.2 28.9 Poland 152.8 157.5 -3.0
Slide 35: 6M 2022 premiums by business lines and country (II)
6M 2022 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- % Austria 635.5 632.0 0.6 130.4 119.7 9.0 238.5 232.0 2.8 Czech Republic 365.2 330.8 10.4 13.3 16.2 -18.2 12.0 9.9 21.2 Poland 82.7 83.0 -0.4
Slide 36: 6M 2022 country overview GWP / PBT / combined ratio
6M 2022 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before tax Combined Ratio net (in %) 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- % 6M 2022 6M 2021 +/- %p Austria 2,374.6 2,279.7 4.2 77.1 105.8 -27.1 92.7 93.7 -1.0 Czech Republic 1,106.4 945.6 17.0 93.9 96.9 -3.1 93.4 91
Slide 37: 6M 2022 key financials
6M 2022 KEY FINANCIALS Overview of KPIs Net result for the period after taxes Operating RoE (%)1 and non-controlling interest (€mn) 202 186 11.0 10.9 6M 2021 6M 2022 6M 2021 6M 2022 Earnings per share (€)1 Book value per share2 (€) 34.4 37.2 2.91 3.05 6M 2021 6M 2022 6M 2021 6M 2022 1 Annualised fig
Slide 38: VIG share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (16/8/2022) 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 AT
Slide 39: VIG share (II)
VIG SHARE (II) Shareholder structure Free float split by region* North America 38% Austria 26% ~72% ~28% Continental Europe 22% UK & Ireland 11% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) * Split of identified shares, May 2022 (Source: Investor Update) 39 APPENDIX VIG VIENNA
Slide 40: Appendix
40 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 41: Contact details / financial calendar
CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / investor.relations@vig.com / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2022* Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 Date Event nina.higatzberger@vig.com sylvia.machherndl@vig.com 08 Mar. 2022 P
Slide 42: 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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