Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — Q1 2009 Earnings Presentation

33 slides from Vienna Insurance's earnings presentation, May 12, 2009

  1. Slide 1: V.I.G. – A robust start into a challenging period

    V.I.G. – A robust start into a challenging period 3M 2009 results telephone conference 12 May 2009

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics 2 Presenting Team Topics § Martin Simhandl, CFO § Financial Highlights p.4 § Peter Hagen, Member of the § P&L and Balance Sheet p.8 Managing Board § Appendix p.18 § Peter Höfinger, Member of the Managing Board § Roland Gröll, Head of Group Accounting § Thomas Schmee, Head

  3. Slide 3: Recent Developments

    Recent Developments 3 Capital Position Health Business § V.I.G. has issued, within the scope of the § Promising start of health business in existing € 500mn hybrid bonds CEE as of Q1 2009 programme of May 2008, a second § New products offered in CZ, SK, PL, HU tranche with a volume of € 250mn at the

  4. Slide 4: Financial Highlights

    Vienna Insurance Group – 3M 2009 results Financial Highlights

  5. Slide 5: 3M 2009 Financial Highlights (I)

    3M 2009 Financial Highlights (I) V.I.G. – a solid ship in a stormy market 5 § EUR 121mn PBT despite challenging environment § Capitalisation further § Combined ratio (net) on strengthened stable level at 96.4% § Sound financial result § Stable premiums inspite of adverse currency effects

  6. Slide 6: 3M 2009 Financial Highlights (II)

    3M 2009 Financial Highlights (II) V.I.G. producing steady results 6 GWP Profit before Tax 541 7,899 6,912 437 5,882 321 1.5% -3.2% 2,018 2,311 2,345 125 121 101 2006 2007 2008 3M 07 3M 08 3M 09 2006 2007 2008 3M 07 3M 08 3M 09 IFRS IFRS Net Profit after Tax and Minorities Combined Ratio (net) 96.9 9

  7. Slide 7: 3M 2009 Financial Highlights (III)

    3M 2009 Financial Highlights (III) 7 EPS ROE before Tax (%) 3.48 18.0 18.9 3.41* 17.1 2.98 2.89 2.96* 14.8 14.3* 2.48 11.6 * 2006 2007 2008 3M 07 3M 08 3M 09 2006 2007 2008 3M 07 3M 08 3M 09 * Diluted for SPO 2008 IFRS * Diluted for SPO 2008 IFRS

  8. Slide 8: P&L and Balance Sheet Details

    Vienna Insurance Group – 3M 2009 results P&L and Balance Sheet Details

  9. Slide 9: 3M 2009 Income Statement

    3M 2009 Income Statement IFRS (€mn) 9 3M 2009 3M 2008 +/-% 1. Gross written premiums 2,345.4 2,311.3 1.5 2. Net earned premiums 1,798.2 1,736.8 3.5 3. Net investment income 238.2 175.6 35.6 4. Other income 41.2 17.5 >100 Total income 2,077.6 1,929.8 7.7 6. Expenses for claims incurred -1,473.1 -1,35

  10. Slide 10: 3M 2009 Balance Sheet

    3M 2009 Balance Sheet IFRS (€mn) 10 3M 2009 YE 2008 +/- % Intangible assets 1,982 1,649 20.2 Total investments 23,880 24,548 -2.7 Unit- and index-linked investments 3,770 3,602 4.6 Reinsurers’ share in technical provisions 1,081 1,222 -11.5 Receivables 1,802 1,500 20.1 Deferred tax assets 134 131 2.

  11. Slide 11: P&L Major Items – Gross Written Premiums

    3M 2009 P&L Major Items – Gross Written Premiums Premium development affected by weak CEE currencies (€mn) 11 Non-life Life Total FX development 3M 09 vs 3M 08 3M 2009 3M 2008 3M 2009 3M 2008 3M 2009 3M 2008 (vs. €; average exchange rates) CZK Austria 698.3 683.8 546.4 532.0 1,244.6 1,215.8 SKK Czec

  12. Slide 12: P&L Major Items – Gross Written Premiums

    3M 2009 P&L Major Items – Gross Written Premiums Stable premiums, supported by new consolidations (€mn) 12 § Group GWP gained 1.5%, thus reaching € 2,345mn § Austria: total GWP up 2.4% to reach € 1,245mn. Life up 2.7% at € 546.4mn, inclusion of s Versicherung offsets ongoing weak single 75.3 42.0 pr

  13. Slide 13: P&L Major Items – Expenses for Claims Incurred

    3M 2009 P&L Major Items – Expenses for Claims Incurred Loss ratio up due to higher claims and reserving in CEE 13 § Group loss ratio (net) at 66.0% (63.9% in 3M § Poland increasing by 10.0% pts to 64.7% due to 2008 ) increase of reserves as a consequence of legal changes § Austrian loss ratio lower

  14. Slide 14: P&L Major Items – Operating Expenses

    3M 2009 P&L Major Items – Operating Expenses Cost ratio down on account of CEE efficiency programmes 14 § Group cost ratio (net) decreasing by 1.1% pts § Poland showing lower cost ratio at 34.5% to reach 30.5% (3M 08: 40.3%) thanks to lower administration costs and sales commissions § Cost ratio in

  15. Slide 15: P&L Major Items – Net Investment Income

    3M 2009 P&L Major Items – Net Investment Income Sound financial result (€mn) 15 Detail - Income P&C Life Health Total in € '000 3M 2009 3M 2008 3M 2009 3M 2008 3M 2009 3M 2008 3M 2009 3M 2008 Current income 42,076 40,940 269,588 206,342 9,317 5,014 320,981 252,296 Income from write-ups 2,299 2,063 2

  16. Slide 16: Investments

    Investments 3M 2009 investment split – V.I.G. follows a prudent risk policy 16 Investment policy Portfolio Overview Other Cash & Deposits BBB AAA Alternative Inv. ~1% ~ 6% ~8% ~20% ~ 1% § More than 50% of real Affiliated estate with regulated Companies Bonds Austrian housing societies; ~ 4% ~ 56% Bo

  17. Slide 17: Outlook

    Outlook Economic uncertainty and market volatility constrain forecasts 17 V.I.G.'s Path of Profitability Outlook § Persistently shaky situation of 9,000 600 capital markets and question marks 8,000 GWP behind world economic trends do PBT 500 not allow for firm establishment of 7,000 targets for 2009

  18. Slide 18: Appendix

    Vienna Insurance Group – 3M 2009 results Appendix

  19. Slide 19: 3M 2009 P&L – Business Segments (Property & Casualty)

    3M 2009 P&L – Business Segments Property & Casualty, IFRS (€mn) 19 3M 2009 3M 2008 +/-% 1. Gross written premiums 1,372.3 1,382.6 -0.7 2. Net earned premiums 848.2 841.9 0.7 3. Net investment income 53.0 23.8 >100 4. Other income 26.0 7.7 >100 Total income 927.3 873.4 6.2 6. Expenses for claims incu

  20. Slide 20: 3M 2009 P&L – Business Segments (Life)

    3M 2009 P&L – Business Segments Life, IFRS (€mn) 20 3M 2009 3M 2008 +/-% 1. Gross written premiums 889.3 847.0 5.0 2. Net earned premiums 869.7 816.8 6.5 3. Net investment income 186.5 154.8 20.5 4. Other income 15.2 9.8 55.3 Total income 1,071.4 981.4 9.2 6. Life benefits -847.8 -758.4 11.8 7. Oper

  21. Slide 21: 3M 2009 P&L – Business Segments (Health)

    3M 2009 P&L – Business Segments Health, IFRS (€mn) 21 3M 2009 3M 2008 +/-% 1. Gross written premiums 83.9 81.7 2.7 2. Net earned premiums 80.3 78.0 2.9 3. Net investment income -1.4 -3.0 -54.2 4. Other income 0.0 0.0 0.0 Total income 78.9 75.0 5.2 6. Expenses for claims incurred -65.6 -62.4 5.2 7. O

  22. Slide 22: 3M 2009 P&L - Split by Regions (I)

    3M 2009 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 22 Austria Czech Republic 3M 2009 3M 2008 +/-% 3M 2009 3M 2008 +/-% 1. Gross written premiums 1,244.6 1,215.8 2.4 404.5 359.7 12.5 2. Net earned premiums 934.1 895.7 4.3 320.6 268.3 19.5 3. Net investment income 167.5 148.1 13.1 13.9 6

  23. Slide 23: 3M 2009 P&L - Split by Regions (II)

    3M 2009 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 23 Slovakia Poland Romania 3M 2009 3M 2008 +/-% 3M 2009 3M 2008 +/-% 3M 2009 3M 2008 +/-% 1. Gross written premiums 186.2 161.3 15.5 143.1 174.0 -17.8 167.8 200.9 -16.4 2. Net earned premiums 139.6 122.6 13.8 131.9 157.4 -16.2 129.1 1

  24. Slide 24: 3M 2009 P&L - Split by Regions (III)

    3M 2009 P&L - Split by Regions (III) Regional segments, IFRS (€mn) 24 Other CEE Other TOTAL 3M 2009 3M 2008 +/-% 3M 2009 3M 2008 +/-% 3M 2009 3M 2008 +/-% 1. Gross written premiums 157.2 124.3 26.5 42.0 75.3 -44.2 2,345.4 2,311.3 1.5 2. Net earned premiums 111.0 90.5 22.6 31.9 65.8 -51.5 1,798.2 1,7

  25. Slide 25: 3M 2009 Results by Country

    3M 2009 Results by Country IFRS (€mn) 25 Non-Life Life Total Profit before Tax Combined Ratio 3M 2009 3M 2008 3M 2009 3M 2008 3M 2009 3M 2008 3M 2009 3M 2008 3M 2009 3M 2008 Austria 698.3 683.8 546.4 532.0 1,244.6 1,215.8 77.3 76.1 93.8% 95.7% Czech Rep. 273.5 275.8 131.0 83.9 404.5 359.7 24.2 20.6

  26. Slide 26: Change in Group Shareholders' Equity

    Change in Group Shareholders‘ Equity IFRS 26 1.1. - 31.03.2009 1.1. - 31.03.2008 Equity as of 1 January 4,138,790 2,615,563 Currency changes -40,170 16,465 Changes to consolidation 7,780 6,607 Capital Increase - - Unrealised gains and losses on financial -29,085 -58,179 instruments available for sal

  27. Slide 27: Premium Portfolio

    Premium Portfolio Basis of business origination substantially widened 27 GWP by Geography 3M 06 GWP by Geography 3M 09 Other CEE Other 3.9% Other Other CEE Romania 2.3% 1.8% 6.7% 3.5% Poland Romania 2.8% 7.2% Austria Austria Slovakia 64.9% Poland 53.1% 6.7% 6.1% Czech Slovakia Republic 7.9% 16.0% Cz

  28. Slide 28: Life Insurance Premium Split

    Life Insurance Premium Split IFRS (€mn) 28 Premiums written - direct business 3M 2009 3M 2008 +/- % Regular premiums 571.3 473.9 20.5% Single premiums 317.9 371.7 -14.5% Total premiums written - direct business 889.2 845.6 5.2% thereof: Policies with profit participation 471.9 482.5 -2.2% Policies w

  29. Slide 29: 3M 2009 Exchange Rates

    3M 2009 Exchange Rates National currency unit per EUR 29 3M 2009 3M 2008 Balance Sheet Balance Sheet Country Curr. P & L EUR P & L EUR EUR EUR Bulgaria EUR/BGN 1.9558 1.9558 1.9558 1.9558 Croatia EUR/HRK 7.4769 7.4116 7.2690 7.2852 Estonia EUR/EEK 15.6466 15.6466 - - Liechtenstein EUR/CHF 1.5152 1.4

  30. Slide 30: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 128,000,000 30 Shareholder Structure ~ 30 % Free Float ~70 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  31. Slide 31: Shareholder Structure (II)

    Shareholder Structure (II) Total number of shares 128,000,000 31 Free Float Geographical Split ~35 % ~15% Austria Others ~12% North America ~30% Continental Europe ~8% UK & Ireland

  32. Slide 32: Contact Details

    Contact Details Investor Relations 32 Vienna Insurance Group Schottenring 30, 1010 Vienna, Austria www.viennainsurancegroup.com Stock exchange listing: VIENNA / PRAGUE Ticker symbol: VIG / VIG Reuters: VIGR.VI / VIGR.PR Bloomberg: VIG AV / VIG CP § Thomas Schmee Tel. +43 (0)50 350 – 21900 thomas.sch

  33. Slide 33: Disclaimer

    Disclaimer 33 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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