Vienna Insurance Group Ag · VIE:VIG
Vienna Insurance — Q1 2016 Earnings Presentation
48 slides from Vienna Insurance's earnings presentation, May 24, 2016
Slide 1: Vienna Insurance Group 3M 2016 Results Presentation
Vienna Insurance Group 3M 2016 Results Presentation Vienna, 24 May 2016 Financials Segments Investments Appendix
Slide 2: 3M 2016 Results conference call
3M 2016 Results conference call Presenting team and topics Presenting team: Martin Simhandl, CFO Roland Gröll, Member of the Managing Board Judit Havasi, Member of the Managing Board Peter Höfinger, Member of the Managing Board Nina Higatzberger, Head of Investor Relations Topics: Financial highligh
Slide 3: Overview of the 3M 2016 results
Overview of the 3M 2016 results Business development in line with expectations €2.7bn Total premium volume excl. life single premium up 3.2% Deliberate reduction of life single premium business by €123mn (-24.3%) due to low interest rate environment GWP Premium growth in motor (+12.4%), life regular
Slide 4: New segment reporting from January 1, 2016
New segment reporting from January 1, 2016 Overview Austria Czech Republic Slovakia Poland Romania Hungary Bulgaria The Baltic Turkey/ Georgia Remaining CEE (Albania incl. Kosovo, Bosnia & Herzegovina, Croatia, Macedonia, Moldova, Serbia, Ukraine) Other markets (Germany, Liechtenstein) Central funct
Slide 5: Overall solid premium development impacted by deliberate life single premium business reduction
Overall solid premium development impacted by deliberate life single premium business reduction Overview of premiums by segments (I) Gross written premiums (€mn; y-o-y chg.) +0.5% 3M15 3M16 1,341.0 1,347.8 -11.1% -11.1% -13.1% 457.8 +41.8% 406.8 214.7 190.8 238.1 207.0 100.3 142.3 Austria Czech Repu
Slide 6: Premium development of new segments
Premium development of new segments Overview of premiums by segments (II) Gross written premiums (€mn; y-o-y chg.) 3M15 3M16 -13.1% 122.6 +13.5% 106.5 -17.0% +24.2% -0.6% 79.5 +126.8% 70.0 60.6 57.5 50.3 46.3 42.5 42.3 34.3 15.1 The Baltic Hungary Bulgaria Turkey/ Remaining CEE Other markets Georgia
Slide 7: Premium development by lines of business
Premium development by lines of business Gross written premiums (€mn; y-o-y chg.) MTPL Casco Other property Total premiums +16.4% +7.2% -0.8% -1.8% 371 240 257 920 913 2,756 2,706 319 MTPL 319 371 Casco 240 257 3M15 3M16 3M15 3M16 3M15 3M16 Other Property 920 913 Life regular Life single Health Heal
Slide 8: Profit before taxes of €101.5mn down by 22.5% y-o-y
Profit before taxes of €101.5mn down by 22.5% y-o-y Overview of profits by segments (I) Profit before taxes (€mn; y-o-y change) -6.2% 3M15 3M16 -14.6% 45.8 42.9 39.6 33.8 -49.5% +11.3% 15.5 -18.1% 9.7 10.8 7.8 1.8 1.5 Austria Czech Republic Slovakia Poland Romania Remarks In Austria (-€5.8mn), Czech
Slide 9: Profit development of new segments
Profit development of new segments Overview of profits by segments (II) Profit before taxes (€mn; y-o-y change) +2.4% 3M15 3M16 -15.2% 6.4 6.6 5.1 +11.2% +99.7% 4.4 +42.5% n.a. 1.8 2.0 2.0 0.7 0.9 1.0 0.1 -3.5 The Baltic Hungary Bulgaria Turkey/ Remaining CEE Other markets Georgia Remarks Start-up c
Slide 10: Group combined ratio at 97.8%
Group combined ratio at 97.8% P&C Combined ratio development P&C CoR 3M y-o-y regional development (net, %) +1.4%p 98.1 AT +1.4%p 96.3 97.8 99.5 89.7 CZ -1.1%p Cost ratio 32.8 33.3 88.7 94.5 SK +1.3%p 95.7 Claims ratio 63.5 64.5 98.1 PL +1.1%p 99.2 104.8 RO -2.1%p 3M15 3M16 102.8 The Baltic 131.6 10
Slide 11: Segments
Financial Segments highlights Investments and Appendix equity Financials Segments Investments Appendix
Slide 12: Austria: sound premium development; PBT impacted by reduced financial result
Austria: sound premium development; PBT impacted by reduced financial result Seasonal cost ratio effect caused increase of CoR GWP development (€mn) P&L: P&C business (€mn) +0.5% 3M16 Y-o-Y 1,341 1,348 Underwriting and financial result 14.5 -36.0% MTPL 111 107 Other non-technical result 0.0 -97.6% C
Slide 13: Czech Republic: lower financial result main driver for decreased PBT
Czech Republic: lower financial result main driver for decreased PBT Excellent CoR of 88.7% GWP development (€mn) P&L: P&C business (€mn) -11.1% 3M16 Y-o-Y 458 Underwriting and financial result 20.2 -26.3% 67 Other non-technical result -0.3 -65.7% MTPL 407 Result (pre tax) 19.9 -25.0% Casco 47 68 Cl
Slide 14: Slovakia: overall sound profit development (+11.3%)
Slovakia: overall sound profit development (+11.3%) Still favourable CoR of 95.7% GWP development (€mn) P&L: P&C business (€mn) -11.1% 3M16 Y-o-Y 215 Underwriting and financial result 4.2 -20.1% Other non-technical result -0.4 -25.6% MTPL 41 191 Result (pre tax) 3.8 -19.5% 41 Claims ratio 54.8% 6.0%
Slide 15: Poland: pricing pressure in motor and lower financial result
Poland: pricing pressure in motor and lower financial result are main drivers of negative developments Premiums and profit before taxes down in first quarter GWP development (€mn) P&L: P&C business (€mn) -13.1% 3M16 Y-o-Y 238 Underwriting and financial result 5.8 -52.0% 35 Other non-technical result
Slide 16: Romania: strong premium increase; PBT slightly down
Romania: strong premium increase; PBT slightly down (-€0.3mn) due to less financial result Positive CoR development but still above 100% GWP development (€mn) P&L: P&C business (€mn) +41.8% 3M16 Y-o-Y 142 Underwriting and financial result -0.5 n.a. Other non-technical result 0.7 n.a. Result (pre tax
Slide 17: Premium development of new segments (I)
Premium development of new segments (I) The Baltic GWP development (€mn) Hungary GWP development (€mn) +126.8% -17.0% 34 61 MTPL MTPL 4 7 5 50 3 Casco Casco 5 3 24 5 3 Other Property Other Property 11 15 1 Health Health 1 14 Life regular Life regular 19 20 12 Life single Life single 8 3 4 8 3M15 3M1
Slide 18: Premium development of new segments (II)
Premium development of new segments (II) Remaining CEE GWP development (€mn) Other markets GWP development (€mn) +13.5% -13.1% 80 123 70 107 MTPL 18 Other Property 27 Casco 18 30 9 Life regular 18 Other Property 9 18 22 Health 20 2 Life single 77 Life regular 2 15 59 Life single 15 13 5 3M15 3M16 3M
Slide 19: Investments and equity
Financial Segments highlights Investments and Appendix equity Financials Segments Investments Appendix
Slide 20: Investment split and bond portfolio overview
Investment split and bond portfolio overview Conservative investment strategy unchanged 3M 2016: Total €32.7bn Bond portfolio by rating1 Other 6% 6% 6.7% 17% 19% BBB 3.2% 0.0% 31% A 31% 8.7% AA 34% 34% 6.1% AAA 11% 11% 4.2% 12M15 3M16 Bond portfolio by issuer 71.0% Corporates 16% 17% Financials 20%
Slide 21: Financial result including at equity results
Financial result including at equity results Financial result development (in € '000) -13.7% 276.266 7.686 273.362 17.636 235.961 -17.554 -732 -2.740 -19.718 -24.883 Current Income from Depreciation Impairment of Exchange Interest Result from Other result Financial Financial income appreciations of
Slide 22: Strong equity and solvency position
Strong equity and solvency position Shareholders’ equity increased Change in Group Shareholders’ Equity (€mn) +4% 108 1 5,247 -1 81 1 5,058 Equity restated Profit for the period Currency changes AFS unrealised Dividend payment Other Equity as of 3M16 as of 12M15 gains and losses Remarks on Solvency
Slide 23: Outlook confirmed
Outlook confirmed Short-term / medium-term / general Profit before taxes 2016 Despite that it is expected that the current low interest rate environment will lead to another decline in the ordinary financial result VIG aims to: Outlook At least double the profit before taxes 2015 up to €400mn Mid-te
Slide 24: Appendix
Financial Segments highlights Investments and Appendix equity Note: Rounding differences may occur when rounded amounts or percentages are added up. Financials Segments Investments Appendix
Slide 25: 3M 2016 Key financials
3M 2016 Key financials Overview of KPIs Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 367 96.7 97.3 96.3 97.8 98 99 78 2014 2015 3M15 3M16 2014 2015 3M15 3M16 EPS1 (€) ROE before Taxes (%) 2.94 11.0 11.0 2.75 2.30 8.7 3.7 0.66 2014 2015 3M15 3M16 2014 2015 3M15 3M16 1: EPS net of
Slide 26: 3M 2016 Income statement
3M 2016 Income statement IFRS (€mn) €mn 3M 2016 3M 2015 +/-% Gross premiums written 2,705.8 2,755.9 -1.8 Net earned premiums 2,137.8 2,210.6 -3.3 Financial result1 236.0 273.4 -13.7 Other income 36.9 28.3 30.6 Total income 2,410.7 2,512.3 -4.0 Expenses for claims and insurance benefits -1,750.6 -1,7
Slide 27: 3M 2016 Balance sheet
3M 2016 Balance sheet IFRS (€mn) €mn 31.03.2016 31.12.2015 +/-% Intangible assets 2,070 2,080 -0.5 Investments 31,365 30,709 2.1 Unit- and index-linked investments 8,150 8,144 0.1 Reinsurers’ share in underwriting provisions 1,252 1,031 21.5 Receivables 1,620 1,390 16.5 Tax receivables and advance p
Slide 28: 3M 2016 P&L by segments (I)
3M 2016 P&L by segments (I) IFRS (€mn) Austria Czech Republic Slovakia €mn 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% Gross premiums written 1,347.8 1,341.0 0.5 406.8 457.8 -11.1 190.8 214.7 -11.1 Net earned premiums 911.2 902.1 1.0 286.1 349.8 -18.2 138.8 166.6 -16.7 Financial r
Slide 29: 3M 2016 P&L by segments (II)
3M 2016 P&L by segments (II) IFRS (€mn) Poland Romania The Baltic €mn 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% Gross premiums written 207.0 238.1 -13.1 142.3 100.3 41.8 34.3 15.1 >100 Net earned premiums 174.5 205.6 -15.1 84.1 61.7 36.4 26.8 14.8 81.1 Financial result1 8.9 14.6
Slide 30: 3M 2016 P&L by segments (III)
3M 2016 P&L by segments (III) IFRS (€mn) Hungary Bulgaria Turkey/Georgia €mn 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% Gross premiums written 50.3 60.6 -17.0 42.3 42.5 -0.6 57.5 46.3 24.2 Net earned premiums 35.3 32.9 7.2 25.9 26.5 -2.3 23.6 21.5 9.3 Financial result1 2.1 1.7 21
Slide 31: 3M 2016 P&L by segments (IV)
3M 2016 P&L by segments (IV) IFRS (€mn) Remaining CEE Other markets €mn 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% Gross premiums written 79.5 70.0 13.5 106.5 122.6 -13.1 Net earned premiums 55.5 47.6 16.8 94.1 111.4 -15.5 Financial result1 9.4 10.5 -10.5 4.3 4.5 -2.8 Other income 1.5 2.5 -41.0 5.9 1
Slide 32: 3M 2016 P&L by segments (V)
3M 2016 P&L by segments (V) IFRS (€mn) Central Functions Consolidation TOTAL €mn 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% Gross premiums written 369.0 371.0 -0.5 -328.5 -324.3 n.a. 2,705.8 2,755.9 -1.8 Net earned premiums 278.9 269.6 3.5 3.1 0.5 n.a. 2,137.8 2,210.6 -3.3 Financ
Slide 33: Financial result by segments excluding at equity consolidated companies (I)
3M 2016 Financial result by segments excluding at equity consolidated companies (I) IFRS (€ '000) Income Austria Czech Republic Slovakia Poland in € '000 3M 2016 3M 2015 3M 2016 3M 2015 3M 2016 3M 2015 3M 2016 3M 2015 Current income 191,212 188,080 31,638 29,658 11,163 10,996 7,321 9,556 Income from
Slide 34: Financial result by segments excluding at equity consolidated companies (II)
3M 2016 Financial result by segments excluding at equity consolidated companies (II) IFRS (€ '000) Income Romania The Baltic Hungary Bulgaria in € '000 3M 2016 3M 2015 3M 2016 3M 2015 3M 2016 3M 2015 3M 2016 3M 2015 Current income 3,435 3,444 1,325 824 2,294 2,390 5,494 5,414 Income from appreciatio
Slide 35: Financial result by segments excluding at equity consolidated companies (III)
3M 2016 Financial result by segments excluding at equity consolidated companies (III) IFRS (€ '000) Income Turkey/Georgia Remaining CEE Other markets in € '000 3M 2016 3M 2015 3M 2016 3M 2015 3M 2016 3M 2015 Current income 2,106 1,794 9,796 9,113 4,976 4,725 Income from appreciations 904 441 62 257
Slide 36: Financial result by segments excluding at equity consolidated companies (IV)
3M 2016 Financial result by segments excluding at equity consolidated companies (IV) IFRS (€ '000) Income Central Functions Consolidation Total in € '000 3M 2016 3M 2015 3M 2016 3M 2015 3M 2016 3M 2015 Current income 21,316 23,413 -14,592 -15,878 277,484 273,529 Income from appreciations 0 0 0 0 7,6
Slide 37: 3M 2016 development for P&C business according to VAG
3M 2016 development for P&C business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 3M 2016 3M 2015 +/-% Overall result for direct business Gross direct premiums written 1,518.59 1,450.98 4.7 Gross direct 62.96 168.19 -62.6 Underwriting result 42.39 113.10 -62.5 Financial result
Slide 38: 3M 2016 development for life business according to VAG
3M 2016 development for life business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 3M 2016 3M 2015 +/-% Overall result for direct business Gross direct premiums written 1,039.53 1,155.09 -10.0 Gross direct 64.31 49.02 31.2 Underwriting result - - - Financial result - - - Direc
Slide 39: 3M 2016 development for health business according to VAG
3M 2016 development for health business according to VAG (Austrian Insurance Supervision Act) IFRS (€ '000) 3M 2016 3M 2015 +/-% Overall result for direct business Gross direct premiums written 105.58 101.69 3.8 Gross direct 10.32 12.57 -17.9 Underwriting result - - - Financial result - - - Direct r
Slide 40: 3M 2016 Premiums by business lines and country (I)
3M 2016 Premiums by business lines and country (I) IFRS (€mn) GWP MTPL GWP Casco GWP Other property 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% Austria 107.4 110.7 -3.0% 89.3 87.7 1.8% 526.9 524.5 0.5% Czech Republic 68.4 66.7 2.5% 52.2 46.7 11.7% 126.9 117.7 7.8% Slovakia 40.9 40
Slide 41: 3M 2016 Premiums by business lines and country (II)
3M 2016 Premiums by business lines and country (II) IFRS (€mn) GWP Life regular GWP Life single GWP Health 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% Austria 349.3 348.4 0.3% 174.1 172.3 1.0% 100.8 97.4 3.6% Czech Republic 130.5 122.5 6.5% 25.3 100.7 -74.9% 3.4 3.4 1.6% Slovakia
Slide 42: 3M 2016 Country overview GWP / PBT / CoR
3M 2016 Country overview GWP / PBT / CoR IFRS (€mn) GWP Total Profit before taxes Combined Ratio net 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-% 3M 2016 3M 2015 +/-pp Austria 1,347.8 1,341.0 0.5% 33.8 39.6 -14.6% 99.5% 98.1% 1.4 Czech Republic 406.8 457.8 -11.1% 42.9 45.8 -6.2% 88.7% 89.7% -1.1 Slovak
Slide 43: 3M 2016 P&C Claims and cost ratio details
3M 2016 P&C Claims and cost ratio details Claims ratio 3M y-o-y regional development (net, %) Remarks for claims incurred 3M15 3M16 Austria and Czech Republic with decreased claims +4.1 ratios -1.3 +1.4 -1.4 +6.0 Slovakia: claims ratio development distorted by non- recurring positive impacts last ye
Slide 44: 3M 2016 – Exchange rates
3M 2016 – Exchange rates 3M 2016 3M 2015 Balance Sheet Balance Sheet Country Currency P & L EUR P & L EUR EUR EUR Albania EUR/ALL 138.7700 138.3013 140.3400 140.2321 Belarus EUR/BYR 22,779.0000 22,812.5714 15,970.0000 16,574.8889 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.9558 1.9
Slide 45: VIG share (I)
VIG share (I) Current analyst recommendation split Share price development 3M 2016 High EUR 24.790 Sell Buy Low EUR 18.300 Price as of 31 March EUR 18.600 Market cap. EUR 2.4 bn Development YTD % -26.5 Hold VIG compared to ATX and Stoxx Europe 600 Ins. 105 95 85 75 65 Jan-16 Feb-16 Mar-16 VIG ATX SX
Slide 46: VIG share (II)
VIG share (II) General information Shareholder structure Number of common shares: 128mn ISIN: AT0000908504 ~30% Wiener Städtische Free Float Listings: Wechselseitiger Versicherungsverein - Vienna – since 17 Oct. 1994 Vermögensverwaltung – Vienna Insurance Group ~70% Prague – since 5 Feb. 2008 Ticker
Slide 47: Contact details
Contact details Investor Relations Financial calendar 2016 Investor Relations Team Date Event Publication: Preliminary Vienna Insurance Group 26 Jan. 2016 Schottenring 30, 1010 Vienna unconsolidated premiums 2015 E-Mail: investor.relations@vig.com 07 Apr. 2016 Results and Embedded Value 2015 www.vig
Slide 48: 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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