Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — H1 2007 Earnings Presentation

30 slides from Vienna Insurance's earnings presentation, Aug 21, 2007

  1. Slide 1: Vienna Insurance Group - Extending the CEE insurance play

    Vienna Insurance Group - Extending the CEE insurance play 6M 2007 results - 21 August 2007

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics 2 Presenting Team Topics Topics § Peter Hagen, Member of Managing § Highlights p.3 Board § P&L and Balance Sheet p.8 § Roland Gröll, Head of Group § Appendix p.17 Accounting § Thomas Schmee, Head of Investor Relations

  3. Slide 3: Recent Developments

    Recent Developments VIG expanding by organic growth and acquisitions 3 6M 2007 Highlights Strategic Update § Above market organic growth in all major § Asirom: purchase of 30% stake markets – increase of market shares § Ray Sigorta: after public tender § CEE premium share above 40% TBIH will hold ~

  4. Slide 4: 6M 2007 Highlights (I)

    6M 2007 Highlights (I) GWP up by 15.3%; profitability rising significantly 4 GWP Profit before Tax 321 5,882 15.3% 50.3% 5,008 240 4,101 215 3,493 3,029 156 143 2,636 125 2004 2005 2006 6M 05 6M 06 6M 07 2004 2005 2006 6M 05 6M 06 6M 07 IFRS IFRS Net Profit after Tax and Minorities Combined Ratio 26

  5. Slide 5: 6M 2007 Highlights (II)

    6M 2007 Highlights (II) Sound increase in EPS 5 EPS (annualised) ROE before Tax 26.2 3.06 21.9 2.48 19.5 2.27 2.17 16.9 2.07 14.8 13.2 1.41 2004 2005 2006 6M 05 6M 06 6M 07 2004 2005 2006 6M 05 6M 06 6M 07 IFRS IFRS

  6. Slide 6: VIG – Top Player in CEE

    VIG – Top Player in CEE Number 2 among international insurance groups 6 Market Share in CEE Details ~ 15.0% § CEE is defined as: Bulgaria, Czech Republic, Hungary, Croatia, Poland, ~ 11.9% Romania, Serbia and Slovakia ~ 11.0%1 § Market shares are based on data from local insurance associations as of

  7. Slide 7: Acquisition of Asirom

    Acquisition of Asirom Strengthening VIG´s no.1 position in dynamic Romanian market 7 Acquisition of Asirom* Romanian Insurance Market Population (mn) 21.6 GDP/Capita 5,463 USD Penetration 1.7% 30 % Density 94.5 USD Market Growth (01-06, CAGR) 42.8% Asirom § market growth in Non-life was 40.7% YoY vs

  8. Slide 8: 6M 2007 results P&L and Balance Sheet

    Vienna Insurance Group- 6M 2007 results P&L and Balance Sheet

  9. Slide 9: 6M 2007 Income Statement

    6M 2007 Income Statement IFRS (€mn) 9 6M 2007 6M 2006 +/-% 1. Gross written premiums 3,493.1 3,029.3 15.3 2. Net earned premiums 2,829.1 2,411.3 17.3 1 3. Net investment income 553.2 361.1 53.2 4. Other income 20.7 29.0 -28.9 Total income 3,403.0 2,801.4 21.5 6. Expenses for claims incurred -2,420.6

  10. Slide 10: 6M 2007 Balance Sheet

    6M 2007 Balance Sheet IFRS (€mn) 10 6M 2007 2006 +/- % Intangible assets 496 461 7.4 Total investments 18,912 17,260 9.6 Unit- and index-linked investments 2,825 2,341 20.7 Reinsurers’ share in technical provisions 1,188 963 23.3 Receivables 1,220 984 24.0 Deferred tax assets 38 24 63.1 Other assets

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

    6M 2007 P&L Major Items – Gross Written Premiums Largely growing above market in Austria and CEE (€ mn) 11 § Group GWP increased by 15.3% to € 3,493mn 126.8 § Austria: total GWP up 5.8% to reach € 1,958mn. Life up 9.6% at 118.0 € 895.7mn with sound growth in subsidised pensions vs. weaker 1,408.6 Ot

  12. Slide 12: GWP Split by Region

    GWP Split by Region Share of Other CEE markets going up significantly 12 GWP by Geography 6M 05 GWP by Geography 6M 06 GWP by Geography 6M 07 Other CEE Other Other Other 5.6% 5.4% 3.9% 3.6% Other CEE Other CEE Slovakia 10.9% 16.8% Austria 6.9% Austria Slovakia 56.1% Austria 65.5% 6.6% 61.0% Slovakia

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

    6M 2007 P&L Major Items – Expenses for Claims Incurred Loss ratio reduced substantially 13 § Group loss ratio (net) with marked improvement by 2.9% to 64.7% despite €10mn net effect from Kyrill storm in Q1 2007 § Austrian loss ratio lower by 1.9% pts at 66.9% thus reaching regular level § Czech Repu

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

    6M 2007 P&L Major Items – Operating Expenses Cost ratio impacted by strong business growth 14 § Group cost ratio (net) up at 31.3%, driven by acquisition costs: VIG does not account for DACs which affects cost ratio roughly by 2% pts (premium income is high at start of the year and leads to higher d

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

    6M 2007 P&L Major Items – Net Investment Income Sound growth in line with business expansion (€mn) 15 § Increase in Group Net Investment Income by 53.2% to Net Investment Income € 553.2mn 11.1 63.3 § Austria grew by 53.0% influenced by trading gains, full 9.3 Other consolidation of Austrian life sub

  16. Slide 16: Financial Targets

    Financial Targets Target for 2007 to be exceeded; dividend increase of 25% 16 VIG’s financial targets Comments Profit before Tax Targets in € mn § Based on the 1st HY results the 2007 target of CAGR: ~ 18% 520 - 530 € 410mn will be exceeded 470 - 480 § For the business year 2007 management will 410+

  17. Slide 17: Appendix

    Vienna Insurance Group- 6M 2007 results Appendix

  18. Slide 18: P&L – Business Segments: Property & Casualty

    6M 2007 P&L – Business Segments Property & Casualty, IFRS (€mn) 18 6M 2007 6M 2006 +/-% 1. Gross written premiums 1,976.2 1,721.5 14.8 2. Net earned premiums 1,331.9 1,118.3 19.1 3. Net investment income 93.3 56.8 64.2 4. Other income 11.9 14.4 -17.4 Total income 1,437.2 1,189.6 20.8 6. Expenses for

  19. Slide 19: P&L – Business Segments: Life

    6M 2007 P&L – Business Segments Life, IFRS (€mn) 19 6M 2007 6M 2006 +/-% 1. Gross written premiums 1,362.0 1,157.1 17.7 2. Net earned premiums 1,344.3 1,144.6 17.4 3. Net investment income 445.8 292.2 52.6 4. Other income 8.7 14.6 -40.2 Total income 1,798.8 1,451.4 23.9 6. Life benefits -1,423.9 -1,

  20. Slide 20: P&L – Business Segments: Health

    6M 2007 P&L – Business Segments Health, IFRS (€mn) 20 6M 2007 6M 2006 +/-% 1. Gross written premiums 155.0 150.8 2.8 2. Net earned premiums 152.9 148.4 3.0 3. Net investment income 14.1 12.1 16.5 4. Other income 0.0 0.0 -100.0 Total income 166.9 160.5 4.0 6. Expenses for claims incurred -135.3 -131.

  21. Slide 21: P&L - Split by Regions (I)

    6M 2007 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 21 Austria Czech Republic Slovakia 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 1. Gross written premiums 1,957.7 1,850.4 5.8 577.1 532.7 8.3 243.8 199.6 22.1 2. Net earned premiums 1,611.2 1,524.1 5.7 445.8 392.4 13.

  22. Slide 22: P&L - Split by Regions (II)

    6M 2007 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 22 Other CEE Other TOTAL 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 6M 2007 6M 2006 +/-% 1. Gross written premiums 587.7 328.7 78.8 126.8 118.0 7.5 3,493.1 3,029.3 15.3 2. Net earned premiums 470.2 251.3 87.1 112.0 103.9 7.8 2,829.1 2,

  23. Slide 23: Results by Country

    6M 2007 Results by Country IFRS (€mn) 23 Non-Life Life Total Profit before Tax Combined Ratio 6M 2007 6M 2006 6M 2007 6M 2006 6M 2007 6M 2006 6M 2007 6M 2006 6M 2007 6M 2006 Austria 1,062.0 1,032.9 895.7 817.5 1,957.7 1,850.4 138.5 101.9 94.3% 95.8% Czech Rep. 442.3 417.7 134.8 115.0 577.1 532.7 35.

  24. Slide 24: Change in Group Shareholders' Equity / APE

    Change in Group Shareholders‘ Equity / APE IFRS 24 1.1. - 30.06.2007 1.1. - 30.06.2006 Equity as of 1 January 2.283.208 2.059.332 Currency Changes -1.957 -2.999 Changes in consolidation 39.396 15.995 Capital Increase - - Unrealised Gains and Losses on financial -69.667 -61.274 instruments available

  25. Slide 25: Q2 2007 Income Statement

    Q2 2007 Income Statement IFRS (€mn) 25 Q2 2007 Q2 2006 +/-% 1. Gross written premiums 1,474.8 1,277.1 15.5 2. Net earned premiums 1,364.8 1,164.0 17.2 3. Net investment income1 347.9 199.1 74.8 4. Other income 11.8 13.2 -10.9 Total income 1,724.4 1,376.3 25.3 6. Expenses for claims incurred -1,235.8

  26. Slide 26: 6M 2007 Exchange Rates

    6M 2007 Exchange Rates 26 6M 2007 6M 2006 Balance Sheet P&L Balance Sheet P&L Country Curr. EUR EUR EUR EUR Bulgaria BGN 0.511300 0.511300 0.511300 0.511300 Croatia HRK 0.136921 0.135913 0.138036 0.136773 Liechtenstein CHF 0.604120 0.612838 0.638081 0.640615 Poland PLN 0.265414 0.260139 0.246633 0.2

  27. Slide 27: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 105,000,000 27 Shareholder Structure 28.7 % Free Float 71.3 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  28. Slide 28: Shareholder Structure (II)

    Shareholder Structure (II) 28 Free Float Geographical Split 0.3% Others 32.0 % Austria 20.9% Continental Europe 25.5% 21.3% North America UK & Ireland

  29. Slide 29: Contact Details

    Contact Details Investor Relations 29 Wiener Städtische Versicherung AG Vienna Insurance Group Schottenring 30, 1010 Vienna, Austria www.wienerstaedtische.com Vienna Stock Exchange: WST Reuters: WISV.VI Bloomberg: WST AV Datastream: O:WNST § Thomas Schmee Tel. +43 (0)50 350 – 21900 t.schmee@staedtis

  30. Slide 30: Disclaimer

    Disclaimer 30 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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