Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — 9M 2008 Earnings Presentation
34 slides from Vienna Insurance's earnings presentation, Nov 11, 2008
Slide 1: VIG – offering stability in turbulent times
VIG – offering stability in turbulent times 9M 2008 results - 11 November 2008
Slide 2: Presenting Team and Topics
Presenting Team and Topics 2 Presenting Team Topics § Martin Simhandl, CFO § Recent Developments p.3 § Peter Hagen, Member of the § Highlights p.6 Managing Board § P&L and Balance Sheet p.10 § Kurt Ebner, Group Actuary in Chief § Appendix p.19 § Roland Gröll, Head of Group Accounting § Thomas Schmee
Slide 3: Recent Developments
Recent Developments A deal to reap CEE life growth potential 3 Long-Term Preferred Bancassurance Agreement Transaction Acquisition of Erste Bank’s Insurance Operations Mutuality is the key success factor for the cooperation § Closing of transaction on 15 September 2008 § Local mutual distribution ag
Slide 4: Macro Environment in CEE Countries
Macro Environment in CEE Countries Recent forecasts confirm: CEE growth to outperform EU-15 levels 4 12.00% GDP Growth Comparison Comments 10.00% SK 8.00% RO 6.00% § Latest revised GDP growth PL projections by European 4.00% commission for VIG CEE core 2.00% CZ markets (except Hungary) still at 0.00
Slide 5: Czech Insurance Demand History
Czech Insurance Demand History Strong demand for insurance also when economy was weak 5 Real GDP Growth vs. Insurance Market Growth1 Comments 30.00% § Czech Republic showed sound Real GDP grow th insurance demand even in times Demonopolisation Insurance market grow th of economic recession in the la
Slide 6: 9M 2008 results: Financial Highlights
Vienna Insurance Group- 9M 2008 results Financial Highlights
Slide 7: 9M 2008 Highlights (I)
9M 2008 Highlights (I) VIG maintains strong capitalisation 7 § Double digit premium growth in 9M and in Q3 § In Q3 share of CEE business again more than 50 % of total premiums § Combined ratio (net) stable at 96% § Group equity stable at more than EUR 4bn § Stable outlook for 2008 – subject to furth
Slide 8: 9M 2008 Highlights (II)
9M 2008 Highlights (II) VIG with stable performance 8 GWP Profit before Tax 19.6% 6,912 25.5% 5,882 6,018 437 407 5,008 5,032 4,321 321 324 240 231 2005 2006 2007 9M 06 9M 07 9M 08 2005 2006 2007 9M 06 9M 07 9M 08 IFRS IFRS Net Profit after Tax and Minorities Combined Ratio (net) 20.0% 96.9 97.0 313
Slide 9: 9M 2008 Highlights (III)
9M 2008 Highlights (III) 9 EPS* ROE before Tax (%)* 3.43 3.18 2.98 21.9 2.48 2.32 18.0 17.6 2.27 16.6 14.8 14.8 2005 2006 2007 9M 06 9M 07 9M 08 2005 2006 2007 9M 06 9M 07 9M 08 * diluted, annualised IFRS * diluted, annualised IFRS
Slide 10: 9M 2008 results: P&L and Balance Sheet Details
Vienna Insurance Group- 9M 2008 results P&L and Balance Sheet Details
Slide 11: 9M 2008 Income Statement
9M 2008 Income Statement IFRS (€mn) 11 9M 2008 9M 2007 +/-% 1. Gross written premiums 6,017.8 5,031.8 19.6 2. Net earned premiums 5,169.1 4,220.3 22.5 3. Net investment income 806.2 743.1 8.5 4. Other income 42.7 31.8 34.3 Total income 6,018.0 4,995.2 20.5 6. Expenses for claims incurred -4,251.4 -3
Slide 12: 9M 2008 Balance Sheet
9M 2008 Balance Sheet IFRS (€mn) 12 9M 2008 YE 2007 +/- % Intangible assets 1,222 525 >100 Total investments 24,221 20,171 20.1 Unit- and index-linked investments 3,567 3,066 16.3 Reinsurers’ share in technical provisions 1,154 1,187 -2.7 Receivables 1,769 1,200 47.4 Deferred tax assets 112 34 >100
Slide 13: P&L Major Items – Gross Written Premiums
9M 2008 P&L Major Items – Gross Written Premiums Sustained strong premium growth (€mn) 13 § Group GWP gained 19.6% to € 6,018mn § Austria: total GWP up 8.1% to reach € 2,959mn. Life up 11.3% at 171.0 € 1,439mn; P&C up 5.8% at € 1,284mn influenced by flat motor market 175.3 (VIG still growing above m
Slide 14: Geographical Diversification Enhanced
Geographical Diversification Enhanced GWP split by region 14 GWP by Geography 9M 06 GWP by Geography 9M 07 GWP by Geography 9M 08 Other CEE Other Other CEE Other 3.7% Other Romania 3.5% 4.4% 3.5% Other CEE 2.8% Romania 6.0% 3.9% 6.0% Poland Romania 5.4% 8.2% Austria Poland Austria Austria Slovakia 5
Slide 15: P&L Major Items – Expenses for Claims Incurred
9M 2008 P&L Major Items – Expenses for Claims Incurred Loss ratio improving despite one-off effects in RO, SK 15 § Group loss ratio (net) at 64.2% (down from § Poland improving by 3.0% pts to 57.1% due to 65.4% in 9M 2007 ) effective claims and risk management and benign motor pricing § Austrian los
Slide 16: P&L Major Items – Operating Expenses
9M 2008 P&L Major Items – Operating Expenses Cost ratio slightly up due to acquisition expenses 16 § Group cost ratio (net) increasing by 1.3% pts § Cost ratio in Slovakia down by 2.1% pts at to reach 31.8% (vs. 32.5% in 1st HY) 34.4% due to strict cost management and § Cost ratio in Austria up by 1
Slide 17: P&L Major Items – Net Investment Income
9M 2008 P&L Major Items – Net Investment Income One-off gains balanced by market downturn (€mn) 17 Net Investment Income § Increase in Group Net Investment Income by 11.1 8.5% to € 806.2mn influenced mainly by 15.3 146.8 96.1 - one-off gains from sale of BACAV and UNITA Other CEE - adverse market co
Slide 18: Financial Outlook
Financial Outlook Uncertain capital markets constrain projections 18 VIG’s Financial Outlook Comments § PBT target of EUR ~ 540mn for year 2008 Profit before tax target in €mn maintained, subject to further development of capital markets in Q4 ~540 § Management aims to achieve PBT in 2009 at least o
Slide 19: 9M 2008 results: Appendix
Vienna Insurance Group- 9M 2008 results Appendix
Slide 20: P&L – Business Segments: Property & Casualty
9M 2008 P&L – Business Segments Property & Casualty, IFRS (€mn) 20 9M 2008 9M 2007 +/-% 1. Gross written premiums 3,379.5 2,793.1 21.0 2. Net earned premiums 2,545.4 1,997.5 27.4 3. Net investment income 234.0 132.7 76.3 4. Other income 28.1 19.2 46.4 Total income 2,807.5 2,149.4 30.6 6. Expenses fo
Slide 21: P&L – Business Segments: Life
9M 2008 P&L – Business Segments Life, IFRS (€mn) 21 9M 2008 9M 2007 +/-% 1. Gross written premiums 2,401.8 2,007.6 19.6 2. Net earned premiums 2,389.4 1,993.9 19.8 3. Net investment income 564.2 598.8 -5.8 4. Other income 14.6 12.6 15.5 Total income 2,968.2 2,605.4 13.9 6. Life benefits -2,410.5 -2,
Slide 22: P&L – Business Segments: Health
9M 2008 P&L – Business Segments Health, IFRS (€mn) 22 9M 2008 9M 2007 +/-% 1. Gross written premiums 236.6 231.1 2.4 2. Net earned premiums 234.2 228.9 2.3 3. Net investment income 8.0 11.5 -30.5 4. Other income 0.0 0.0 0.0 Total income 242.3 240.5 0.8 6. Expenses for claims incurred -207.2 -195.9 5
Slide 23: P&L - Split by Regions (I)
9M 2008 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 23 Austria Czech Republic 9M 2008 9M 2007 +/-% 9M 2008 9M 2007 +/-% 1. Gross written premiums 2,959.4 2,736.7 8.1 1,006.7 842.3 19.5 2. Net earned premiums 2,582.5 2,375.0 8.7 815.1 665.4 22.5 3. Net investment income 648.3 631.7 2.6 3
Slide 24: P&L - Split by Regions (II)
9M 2008 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 24 Slovakia Poland Romania 9M 2008 9M 2007 +/-% 9M 2008 9M 2007 +/-% 9M 2008 9M 2007 +/-% 1. Gross written premiums 422.8 362.8 16.5 609.1 390.7 55.9 494.8 301.7 64.0 2. Net earned premiums 358.1 288.6 24.1 564.7 337.3 67.4 423.3 221.
Slide 25: P&L - Split by Regions (III)
9M 2008 P&L - Split by Regions (III) Regional segments, IFRS (€mn) 25 Other CEE Other TOTAL 9M 2008 9M 2007 +/-% 9M 2008 9M 2007 +/-% 9M 2008 9M 2007 +/-% 1. Gross written premiums 353.9 222.3 59.2 171.0 175.3 -2.4 6,017.8 5,031.8 19.6 2. Net earned premiums 277.9 178.9 55.4 147.5 154.1 -4.3 5,169.1
Slide 26: Results by Country
9M 2008 Results by Country IFRS (€mn) 26 Non-Life Life Total Profit before Tax Combined Ratio 9M 2008 9M 2007 9M 2008 9M 2007 9M 2008 9M 2007 9M 2008 9M 2007 9M 2008 9M 2007 Austria 1,520.8 1,444.5 1,438.6 1,292.3 2,959.4 2,736.7 241.4 206.8 93.3% 94.5% Czech Rep. 752.0 637.1 254.8 205.2 1,006.7 842
Slide 27: Change in Group Shareholders' Equity
Change in Group Shareholders‘ Equity IFRS 27 1.1. - 30.09.2008 1.1. - 30.09.2007 Equity as of 1 January 2,615,563 2,283,208 Currency changes 39,237 1,302 Changes to consolidation 42,810 55,719 Capital Increase 1,343,078 - Unrealised gains and losses on financial -149,545 -90,081 instruments availabl
Slide 28: Life Insurance Premium Split
Life Insurance Premium Split IFRS (€mn) 28 Premiums written - direct business 9M 2008 9M 2007 +/- % Regular premiums 1,356.7 1,343.8 1.0% Single premiums 1,037.7 662.3 56.7% Total premiums written - direct business 2,394.4 2,006.1 19.4% thereof: Policies with profit participation 1,347.1 1,134.7 18.
Slide 29: Q3 2008 Income Statement
Q3 2008 Income Statement IFRS (€mn) 29 Q3 2008 Q3 2007 +/-% 1. Gross written premiums 1,802.7 1,538.7 17.2 2. Net earned premiums 1,697.8 1,391.2 22.0 3. Net investment income 187.5 189.9 -1.2 4. Other income 12.0 11.1 7.9 Total income 1,897.4 1,592.2 19.2 6. Expenses for claims incurred -1,339.0 -1
Slide 30: 9M 2008 Exchange Rates
9M 2008 Exchange Rates National currency unit per EUR 30 9M 2008 9M 2007 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 7.1049 7.2401 7.2773 7.3407 Liechtenstein EUR/CHF 1.5774 1.6082 1.6601 1.6370 Poland EUR/PLN 3.3
Slide 31: Shareholder Structure (I)
Shareholder Structure (I) Total number of shares 128,000,000 31 Shareholder Structure ~ 30 % Free Float ~70 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung
Slide 32: Shareholder Structure (II)
Shareholder Structure (II) Total number of shares 128,000,000 32 Free Float Geographical Split ~11% ~28 % Others Austria ~21% Continental Europe ~22% North America ~18% UK & Ireland
Slide 33: Contact Details
Contact Details Investor Relations 33 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
Slide 34: Disclaimer
Disclaimer 34 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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