Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — 9M 2021 Earnings Presentation
46 slides from Vienna Insurance's earnings presentation, Nov 29, 2021
Slide 1: Investor Presentation 9M 2021 results
VIENNA INSURANCE GROUP Investor Presentation 9M 2021 results
Slide 2: VIG – The leading insurance group in Central and Eastern Europe
VIG – THE LEADING INSURANCE GROUP IN CENTRAL AND EASTERN EUROPE Represented in More than 50 group companies 30 25,000 markets employees Solvency Ratio 6M 2021 More than S&P Rating 22 million A+ 267% including transitionals (AT) and customers with stable outlook based on Partial Internal Model Since
Slide 3: Excellent market positions in Central and Eastern Europe
EXCELLENT MARKET POSITIONS IN CENTRAL- AND EASTERN EUROPE VIG top player in CEE Close to our overall more than 22mn customers Country Market position Market share Austria 1 1 1 23% Czech Rep. 1 2 1 31% 1 Slovakia 1 2 1 29% Poland 4 4 5 8% 10 Romania 1 2 2 21% 4 Baltics 1 1 2 25% 1 3 1 Hungary 6 6 4
Slide 4: Strong business profile and successful strategy
STRONG BUSINESS PROFILE AND SUCCESSFUL STRATEGY Five-pillar sustainability Well diversified VIG 25: strategy: Proven Strong balance M&A - based on portfolio over new strategy Core business business sheet and strong footprint, countries and programme Customers model prudent VIG follows lines of 2021-
Slide 5: VIG 25: Building on the foundations of previous years
VIG 25: BUILDING ON THE FOUNDATIONS OF PREVIOUS YEARS 2011 2016 2021 STRATEGY 2011 Specifying the strategy for sustainable growth in primary AGENDA 2020 insurance Management programme Initiatives implemented as a VIG 25 continuation of Strategy 2011 Strategy programme for VIG Group jointly developed
Slide 6: Trends and development analysis reveals five main tasks
TRENDS AND DEVELOPMENT ANALYSIS REVEALS FIVE MAIN TASKS Latent Evolution demand continues Main tasks to address market and customer demands instead of to be a defining revolution feature 1 Continue and intensify work on digital transformation Creation of (digital) Low interest Achieve operational ex
Slide 7: VIG 25 initiatives to optimise, enhance and enlarge the business model
VIG 25 INITIATIVES TO OPTIMISE, ENHANCE AND ENLARGE THE GROUP’S SUCCESSFUL BUSINESS MODEL New ways of customer 1 Digital transformation 2 Operative excellence 3 4 Risk provision 5 Sustainability acquisition and retention OPTIMISE ENHANCE ENLARGE Productivity and efficiency Extension of customer Expa
Slide 8: VIG 25 Group targets
VIG 25 GROUP TARGETS Focus on financial stability and profitability, customer proximity, growth and sustainability 1 Expansion of the Group’s Achieving at least a top-three position in each CEE market (except Slovenia) taking into account the corresponding country portfolio leading position in CEE ▪
Slide 9: Results 9M 2021 & Outlook
STRATEGY RESULTS 9M 2021 & OUTLOOK 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
Slide 10: Highlights 9M 2021
HIGHLIGHTS 9M 2021 Strong premium and profit development Gross written premium Profit before taxes Combined Ratio € 8,390.8mn € 376.1mn 95.2% GWP up by 5.1% (+€404.4mn) PBT up by 41.2% (+€109.8mn) Improved by 0.9%p due to decreased claims ratio ▪ Strongest GWP growth by segment ▪ 9M 2020 included go
Slide 11: Main market developments 9M 2021
MAIN MARKET DEVELOPMENTS 9M 2021 Segmentation changes as of year-end 2021 Austria Czech Republic No. of companies: 2 No. of companies: 2 Employees: 5,027 Employees: 4,925 Market share: ~23% Market share: ~31% GWP: €3,207mn (+0.4%) GWP: €1,406mn (+8.4%) PBT: €144mn (+17.1%) PBT: €149mn (-2.7%) CoR: 9
Slide 12: Strong premium and double-digit net profit growth
STRONG PREMIUM AND DOUBLE-DIGIT NET PROFIT GROWTH 9M 2021 Income statement €mn 9M 2021 9M 2020 +/- % Gross premiums written 8,390.8 7,986.4 5.1 ▪ Solid premium growth in all lines of business except life single premium; main drivers are other property (+€281.7mn) and motor Net earned premiums 7,263.
Slide 13: 9M 2021 Balance Sheet
9M 2021 BALANCE SHEET IFRS (€mn) €mn 30.09.2021 31.12.2020 +/- % Intangible assets (incl. Right-of-Use Assets) 1,897 1,918 -1.1 Investments 34,647 34,901 -0.7 Unit- and index-linked investments 8,301 7,968 4.2 Reinsurers’ share in underwriting provisions 1,790 1,396 28.2 Receivables 1,858 1,699 9.3
Slide 14: Equity development
EQUITY DEVELOPMENT Change in consolidated Shareholders’ Equity (€mn) +6.1% 300 25 -178 5,607 282 -112 4 5,286 Equity as Profit for Issuance of Currency AFS unrealised Dividend Other Equity as of 12M 2020 the period hybrid capital* changes gains and losses payment of 9M 2021 * RT1 instrument 14 RESUL
Slide 15: Strong top-line growth: gross written premiums of 8.4bn up by 5.1%
STRONG TOP-LINE GROWTH GROSS WRITTEN PREMIUMS OF 8.4BN UP BY 5.1% Overview by segments Gross written premiums (€mn; y-o-y change) ▪ Strong premium growth ahead of initial expectations ▪ Main drivers were Central Functions (+€138.9mn), Czech Republic (+€108.5mn) and Poland (+€62.2mn) primarily due to
Slide 16: Increases in all lines of business except life single premium
INCREASES IN ALL LINES OF BUSINESS EXCEPT LIFE SINGLE PREMIUM Gross written premiums by lines of business (€mn; y-o-y change); incl. Central Functions MTPL Casco Other property Total premiums +5.1% 9M 2020 1,148 972 3,814 8,391 +4.9% +8.6% +7.4% 7,986 1,204 MTPL 1,148 9M 2021 1,204 1,056 4,096 1,056
Slide 17: Group profit before taxes of €376.1mn up by 41.2%
GROUP PROFIT BEFORE TAXES OF €376.1MN UP BY 41.2% Overview by segments Result before taxes (€mn; y-o-y change) ▪ AT: Profit before taxes up (+€21.0mn) due to better technical results in life and health business ▪ PL and Baltic states: Comparative period impacted by impairments of insurance portfolio
Slide 18: Combined ratio (P&C) at 95.2%
COMBINED RATIO (P&C) AT 95.2% Overall stable development P&C Combined Ratio development Overview by segments (y-o-y development net, %) ▪ Overall CoR development in 9M 2021 in line with targeted +3.3%p 0.0%p -1.0%p -0.3%p -3.7%p -1.8%p CoR of ~95% for 2021 ▪ CZ: claims ratio improved despite weather
Slide 19: Investment split and bond portfolio overview
INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Stable portfolio mix 9M 2021: Total €37.5bn Bond portfolio by rating1 in % 4.8% 1.5% 10.6% AAA AA A BBB Other 9M 2021 9.1 29.0 33.7 23.4 4.8 6.3% 12M 2020 9.0 30.0 35.4 21.6 4.0 69.5% 7.3% Bond portfolio by issuer in % 9M 2021 52.6 5.8 16.9 24.7 Bonds Equ
Slide 20: Financial result
FINANCIAL RESULT Reduced total expenses offset lower total income in EUR ‘000 9M 2021 9M 2020 +/- % Current income 690,244 721,135 -4.3 ▪ Decline in income from the disposal of investments (-€68.8mn) Income from appreciations 7,001 13,306 -47.4 due to higher realised gains on bonds and loans especia
Slide 21: VIG in line to achieve targets for 2021
VIG IN LINE TO ACHIEVE TARGETS FOR 2021 End of pandemic not yet foreseeable – global uncertainty remains ▪ Strong premium development in 9M 2021 leads to update of premium expectation for full year 2021 ▪ Profit before taxes back at pre-crisis level ▪ VIG confident to achieve the following targets:
Slide 22: Segments
STRATEGY RESULTS 9M 2021 & OUTLOOK 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
Slide 23: Austria
AUSTRIA Positive premium and PBT development GWP development (€mn) €mn 9M 2021 9M 2020 +/- % +0.4% Gross premiums written 3,207.0 3,193.8 0.4 ▪ Premium income up by €13.2mn mainly Net earned premiums 2,464.3 2,486.4 -0.9 due to other property (+€52.3mn); life 3,194 3,207 Financial result* 446.3 419.
Slide 24: Czech Republic
CZECH REPUBLIC Strong premium and CoR development GWP development (€mn) €mn 9M 2021 9M 2020 +/- % +8.4% Gross premiums written 1,405.5 1,297.0 8.4 ▪ Premium growth (+€108.5mn) coming 1,406 Net earned premiums 1,047.4 973.2 7.6 from all lines of business except life Financial result* 61.5 53.6 14.8 s
Slide 25: Slovakia
SLOVAKIA Improved CoR supports profit growth GWP development (€mn) €mn 9M 2021 9M 2020 +/- % -1.6% Gross premiums written 548.6 557.6 -1.6 ▪ Premiums down by €9.0mn mainly 558 Net earned premiums 437.5 451.2 -3.0 driven by decreasing life single 549 Financial result 31.6 29.9 6.0 premium and health
Slide 26: Poland
POLAND Strong premium and PBT development GWP development (€mn) €mn 9M 2021 9M 2020 +/- % +7.0% Gross premiums written 951.3 889.1 7.0 ▪ Premium growth of €62.2mn driven 951 Net earned premiums 728.5 689.7 5.6 mainly by other property (+€28.6mn) 889 Financial result 24.6 29.0 -15.3 and life single p
Slide 27: Romania
ROMANIA Strong premium development GWP development (€mn) €mn 9M 2021 9M 2020 +/- % +16.0% Gross premiums written 411.6 354.8 16.0 ▪ Strong premium growth of €56.8mn 412 Net earned premiums 312.2 274.3 13.8 coming from all lines of business; main Financial result 16.3 16.1 1.2 contributors are motor
Slide 28: Baltic states
BALTIC STATES Favourable premium and profit growth GWP development (€mn) €mn 9M 2021 9M 2020 +/- % +5.4% Gross premiums written 387.7 367.7 5.4 ▪ Increased premium income of €20.0mn 388 Net earned premiums 309.2 292.1 5.9 based on growth in all lines of business 368 Financial result 7.0 5.0 40.5 exc
Slide 29: Hungary
HUNGARY Strong premium development GWP development (€mn) €mn 9M 2021 9M 2020 +/- % +15.0% Gross premiums written 244.9 212.9 15.0 ▪ Premium growth in all lines of business 245 Net earned premiums 181.1 160.3 12.9 Financial result 2.2 2.6 -14.0 ▪ PBT stable (+€0.6mn) 213 37 Other income 8.1 7.7 4.6 ▪
Slide 30: Bulgaria
BULGARIA Solid premium development and good CoR GWP development (€mn) €mn 9M 2021 9M 2020 +/- % +7.0% Gross premiums written 165.8 155.0 7.0 ▪ Increase in premium income by €10.8mn 166 Net earned premiums 119.2 111.1 7.3 mainly coming from motor (+€10.0mn) 155 Financial result 11.1 9.9 12.3 29 Other
Slide 31: Turkey/Georgia
TURKEY/GEORGIA FX adjusted premium growth of 30.5% GWP development (€mn) €mn 9M 2021 9M 2020 +/- % +4.5% Gross premiums written 186.5 178.4 4.5 ▪ Premium growth of €8.1mn mainly 186 Net earned premiums 88.2 87.8 0.5 coming from casco and other property 178 Financial result 8.8 6.6 33.9 27 Other inco
Slide 32: Remaining CEE
REMAINING CEE Solid premium and profit development GWP development (€mn) €mn 9M 2021 9M 2020 +/- % +11.8% Gross premiums written 372.8 333.4 11.8 ▪ Remaining CEE: Albania (incl. Kosovo), 373 Net earned premiums 261.8 239.4 9.4 Bosnia-Herzegovina, Croatia, Moldova, Financial result 24.7 38.1 -35.3 No
Slide 33: Other Markets
OTHER MARKETS Germany and Liechtenstein GWP development (€mn) €mn 9M 2021 9M 2020 +/- % -0.7% Gross premiums written 207.0 208.5 -0.7 ▪ Premium income stable compared to 208 Net earned premiums 169.9 173.2 -1.9 the same period last year 207 Financial result 14.4 12.4 15.9 Other income 9.3 18.0 -48.3
Slide 34: Central Functions
CENTRAL FUNCTIONS Favourable premium development GWP development (€mn) €mn 9M 2021 9M 2020 +/- % +10.3% Gross premiums written 1,481.9 1,343.0 10.3 ▪ Central Functions include VIG Holding, 1,482 Net earned premiums 1,143.2 1,073.7 6.5 VIG Re, Wiener Re, VIG Fund, corporate Financial result* -115.1 -
Slide 35: Appendix
STRATEGY RESULTS 9M 2021 & OUTLOOK 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
Slide 36: 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 36 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 37: Combination of C-levels and 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 38: 9M 2021 Premiums by business lines and country (I)
9M 2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 9M 2021 9M 2020 +/- % 9M 2021 9M 2020 +/- % 9M 2021 9M 2020 +/- % Austria 264.4 262.1 0.9 250.3 240.2 4.2 1,249.8 1,197.5 4.4 Czech Republic 263.3 234.7 12.2 207.4 182.9 13.4 398.6 365.7 9.0 Slovakia 114.7 112.7
Slide 39: 9M 2021 Premiums by business lines and country (II)
9M 2021 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 9M 2021 9M 2020 +/- % 9M 2021 9M 2020 +/- % 9M 2021 9M 2020 +/- % Austria 911.0 915.2 -0.5 184.2 242.8 -24.2 347.4 336.1 3.4 Czech Republic 497.7 474.1 5.0 23.0 25.9 -11.2 15.4 13.6 13.3 Slovakia 148.2 126
Slide 40: 9M 2021 Country overview GWP / PBT / Combined Ratio
9M 2021 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net (in %) 9M 2021 9M 2020 +/- % 9M 2021 9M 2020 +/- % 9M 2021 9M 2020 +/- %p Austria 3,207.0 3,193.8 0.4 143.6 122.6 17.1 95.0 95.0 0.0 Czech Republic 1,405.5 1,297.0 8.4 148.7 152.7 -2.7 89.
Slide 41: 9M 2021 Key financials
9M 2021 KEY FINANCIALS Overview of KPIs Net result for the period after taxes ROE before taxes and and non-controlling interest (€mn) Earnings per share (€) non-controlling interest (%) 275 10.3 10.8 2.86 227 175 8.1 2.36 1.82 9M 2019 9M 2020 9M 2021 9M 2019 9M 2020 9M 2021 9M 2019 9M 2020 9M 2021 4
Slide 42: VIG Share (I)
VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Analyst recommendations (16/11/2021) 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
Slide 43: VIG Share (II)
VIG SHARE (II) Shareholder structure Free float split by region* North America 34% Austria 27% ~72% ~28% Continental Europe 24% UK & Ireland 12% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) *: Split of identified shares, May 2021 (Source: Investor Update) 43 APPENDIX VIG VIENNA
Slide 44: Appendix
44 APPENDIX VIG VIENNA INSURANCE GROUP
Slide 45: 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 46: 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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