Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Non-Deal Roadshow (May 2009)
48 slides from Vienna Insurance's roadshow presentation, May 2009
Slide 1: V.I.G. – Well Prepared for the Next Uptake
V.I.G. – Well Prepared for the Next Uptake London/Edinburgh Roadshow – May 2009
Slide 2: Contents
Contents A 2 A Investment proposition B Growth potential in CEE and Austria C Achievements D Diversification E 3M 2009 results – highlights and dividend F Appendix
Slide 3: Investment Proposition at a Glance
Investment Proposition at a Glance V.I.G. set two strategic milestones A 3 Footprint Milestone 1 § V.I.G. - Pioneer in CEE; start of expansion in 1990 - “Big fish in a small pond” - Going east immediately after the fall of the iron curtain due to potential of emerging markets and geographic proximit
Slide 4: V.I.G. – Leading Insurer in CEE (I)
V.I.G. – Leading Insurer in CEE (I) Market strategy proves effective A 4 2005 Strategy 2008 § Gross written premiums: € 5.0bn § Strengthening the § Gross written premiums: € 7.9bn leading position in § Profit before tax: € 240mn § Profit before tax: € 541mn Austria § Presence in 15 countries § Stead
Slide 5: V.I.G. – Leading Insurer in CEE (II)
V.I.G. – Leading Insurer in CEE (II) Clear No. 1 in its core markets A 5 Market Share in CEE1 as of YE 2005 Market Share in CEE1 as of YE 2008 Total market share Total market share 13.2% 11.9% 11.0% 10.6% 10.2% 4.9% 4.4% 3.0% Allianz Uniqa Generali Generali V.I.G. Allianz Uniqa V.I.G. Market share i
Slide 6: V.I.G. Management Approach
V.I.G. Management Approach Success in CEE is based on three cornerstones A 6 Steering Approach Multi-Brand Multi-Channel § Each board member of VIG parent has direct responsibility for CEE countries Tied agents § V.I.G. board members closely Brokers Banks Other involved in management of subsidiaries
Slide 7: Contents
Contents B 7 A Investment proposition B Growth potential in CEE and Austria C Achievements D Diversification E 3M 2009 results – highlights and dividend F Appendix
Slide 8: V.I.G. Business Model Still in Place (I)
V.I.G. Business Model Still in Place (I) GDP growth and underpenetration are insurance drivers B 8 1998 Growth Markets Mature Markets Insurance Density (USD) 1,000 CRO Emerging Markets PL H RO Insurance demand BG SK CZ also strongly driven by UA SER TR catch-up process 0 1,000 10,000 GDP per Capita
Slide 9: V.I.G. Business Model Still in Place (II)
V.I.G. Business Model Still in Place (II) Catch-up potential in CEE in Non-life and Life B 9 Insurance Density 2007 (USD) Proportion of NL & L in CEE Markets 3,668 Life Non-life Non-life 2,621 58% 53% 54% NL 73% 65% 61% Life 35% 80% L 44% 55% 55% 49% 59% 73% 85% 81% 90% 20% 27% 35% 39% 42% 47% 46% 6
Slide 10: Contents
Contents C 10 A Investment proposition B Growth potential in CEE and Austria C Achievements D Diversification E 3M 2009 results – highlights and dividend F Appendix
Slide 11: Business Expansion (I)
Business Expansion (I) Cooperation with Erste Group C 11 Mutual Benefit is Key Success Factor for Cooperation Total Premiums of s Versicherung (€mn) (unconsolidated, unaudited) 12.4% 1,450mn 1,289mn CEE: 552mn CEE: 481mn § Mutual cooperation in leasing business with Erste Group in Austria, both Grou
Slide 12: Business Expansion (II)
Business Expansion (II) VIU – Group platform for multinational corporates C 12 Vienna International Underwriters Features § Increasing demand for insurance solutions for large corporate clients in CEE § Target group are top 250 corporate clients in CEE countries § Focus on property insurance Cost ef
Slide 13: Business Expansion (III)
Business Expansion (III) Upcoming demand for private health insurance in CEE C 13 Health Business in CEE Market Potential V.I.G. exploits further growth V.I.G. Market Potential potential in CEE § Health business as new business line in CEE § CEE region underpenetrated in private health insurance bus
Slide 14: Business Expansion (IV)
Business Expansion (IV) Progressing ahead of business plan C 14 VIG RE – Development Key Considerations § To leverage longstanding market knowledge and strong CEE footprint – incorporated in € 300mn Czech Republic € >280mn § Pooling of V.I.G. reinsurance volume in order to avoid inefficiencies € 200
Slide 15: Reinforced Financial Performance
Reinforced Financial Performance Efficiency programme and capitalisation C 15 Action Programme Capital Position Streamlining of regional head offices 1 Focus on reduction of administrative tasks § V.I.G. has issued, within the scope of the existing € 500mn hybrid bonds programme of Bundling of opera
Slide 16: Contents
Contents D 16 A Investment proposition B Growth potential in CEE and Austria C Achievements D Diversification E 3M 2009 results – highlights and dividend F Appendix
Slide 17: Diversification (I)
Diversification (I) Basis of business origination substantially widened D 17 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
Slide 18: Diversification (II)
Diversification (II) 3M 2009 investment split – V.I.G. follows a prudent risk policy D 18 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; ~
Slide 19: Contents
Contents E 19 A Investment proposition B Growth potential in CEE and Austria C Achievements D Diversification E 3M 2009 results – highlights and dividend F Appendix
Slide 20: 3M 2009 Financial Highlights (I)
3M 2009 Financial Highlights (I) V.I.G. producing steady results E 20 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
Slide 21: 3M 2009 Financial Highlights (II)
3M 2009 Financial Highlights (II) E 21 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
Slide 22: Dividend/Outlook
Dividend/Outlook Attractive bonus dividend almost doubles original plan E 22 Development of Dividend Outlook EPS € 3.41 Dividend/share € 2.98 § Persistently shaky situation of Bonus dividend/share capital markets and question marks € 2.48 behind world economic trends do € 2.27 € 2.00 not allow for f
Slide 23: Contents
Contents F 23 A Investment proposition B Growth potential in CEE and Austria C Achievements D Diversification E 3M 2009 results – highlights and dividend F Appendix
Slide 24: 3M 2009 Income Statement
3M 2009 Income Statement IFRS (€mn) F 24 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
Slide 25: 3M 2009 Balance Sheet
3M 2009 Balance Sheet IFRS (€mn) F 25 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
Slide 26: P&L Major Items – Gross Written Premiums
3M 2009 P&L Major Items – Gross Written Premiums Premium development affected by weak CEE currencies (€mn) F 26 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 Cz
Slide 27: P&L Major Items – Gross Written Premiums
3M 2009 P&L Major Items – Gross Written Premiums Stable premiums, supported by new consolidations (€mn) F 27 § 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
Slide 28: 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 F 28 § 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 lowe
Slide 29: P&L Major Items – Operating Expenses
3M 2009 P&L Major Items – Operating Expenses Cost ratio down on account of CEE efficiency programmes F 29 § 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 i
Slide 30: P&L Major Items – Net Investment Income
3M 2009 P&L Major Items – Net Investment Income Sound financial result (€mn) F 30 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
Slide 31: P&L – Business Segments (Property & Casualty)
3M 2009 P&L – Business Segments Property & Casualty, IFRS (€mn) F 31 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 in
Slide 32: P&L – Business Segments (Life)
3M 2009 P&L – Business Segments Life, IFRS (€mn) F 32 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. Op
Slide 33: P&L – Business Segments (Health)
3M 2009 P&L – Business Segments Health, IFRS (€mn) F 33 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.
Slide 34: P&L - Split by Regions (I)
3M 2009 P&L - Split by Regions (I) Regional segments, IFRS (€mn) F 34 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
Slide 35: P&L - Split by Regions (II)
3M 2009 P&L - Split by Regions (II) Regional segments, IFRS (€mn) F 35 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
Slide 36: P&L - Split by Regions (III)
3M 2009 P&L - Split by Regions (III) Regional segments, IFRS (€mn) F 36 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
Slide 37: Results by Country
3M 2009 Results by Country IFRS (€mn) F 37 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.
Slide 38: Change in Group Shareholders' Equity
Change in Group Shareholders‘ Equity IFRS F 38 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 s
Slide 39: Life Insurance Premium Split
Life Insurance Premium Split IFRS (€mn) F 39 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
Slide 40: Exchange Rates
3M 2009 Exchange Rates National currency unit per EUR F 40 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
Slide 41: Group Embedded Value 2008
Group Embedded Value 2008 Results (€mn) F 41 L&H P&C Total Austria/Germany 2008 2007 2008 2007 2008 2007 Comments Free Surplus 403.6 525.3 Required Capital 320.5 325.9 § Group Embedded Value (GEV) ANAV 724.1 851.2 151.4 426.6 875.5 1,277.8 calculated as Value of In-Force Business PVFP 1,233.9 1,568.
Slide 42: Group Embedded Value 2008
Group Embedded Value 2008 Return on Adjusted Embedded Value (€mn) F 42 L&H P&C Total Change in Methodology Austria / Germany and Assumptions EV Dec 31, 2008 1,670.3 151.4 1,821.7 EV Dec 31, 2007 Reported 2,012.7 617.5 2,630.2 § Allowance for Cost for Residual EV Dec 31, 2007 Restated 2,037.4 570.7 2
Slide 43: Group Embedded Value 2008
Group Embedded Value 2008 New Business Values (€mn) F 43 L&H 2008 2007 +/-% Comments Austria / Germany NBV 61.6 76.2 - 19.2% APE 259.1 262.2 § The NBV represents the value generated APE-Ratio 23.8% 29.1% by new business sold during the PVNBP 2,479.2 2,398.6 reporting period. PVNBP-Ratio 2.5% 3.2% §
Slide 44: V.I.G. Has Excellent CEE Market Position
V.I.G. Has Excellent CEE Market Position V.I.G. an early mover in CEE F 44 Overview of Core Markets Details Slovakia Czech Rep. Romania Bulgaria § leading market position in nearly all core markets Pop.: 5.4 mn Pop.: 10.2 mn Pop.: 21.4 mn Pop.: 7.6 mn § strong market positions GDP/Cap.: $ 14 k GDP/C
Slide 45: Shareholder Structure (I)
Shareholder Structure (I) Total number of shares 128,000,000 F 45 Shareholder Structure ~ 30 % Free Float ~70 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung
Slide 46: Shareholder Structure (II)
Shareholder Structure (II) Total number of shares 128,000,000 F 46 Free Float Geographical Split ~35 % ~15% Austria Others ~12% North America ~30% Continental Europe ~8% UK & Ireland
Slide 47: Contact Details
Contact Details Investor Relations F 47 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.s
Slide 48: Disclaimer
Disclaimer F 48 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 sha
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