Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — RCB Institutional Investors Conference 2011
21 slides from Vienna Insurance's conference presentation, Apr 8, 2011
Slide 1: VIG – continuing the CEE story
VIG – continuing the CEE story RCB Institutional Investors Conference Zürs, 8 April 2011
Slide 2: Contents
Contents Insurance development and exploitation by VIG Insurance development and exploitation by VIG Outline of VIG’s markets Management focus Earnings potential Financials and outlook 2
Slide 3: Development of Insurance Demand in CEE
Development of Insurance Demand in CEE Insurance development GDP growth and underpenetration are insurance drivers and exploitation by VIG 2,000 P Mature Markets 1998 2009 Insurance Density (USD) E Growth Markets H CRO 1,000 CRO CZ Emerging Markets H CZ PL SK SER PL SK SER BG RO BG UA UA RO 0 1,000
Slide 4: VIG Is Well Positioned in its Core Markets
VIG Is Well Positioned in its Core Markets Insurance development Steady increase of market share within short period and exploitation by VIG Group 1 Pop: 23.9mn Number of Countries Group 1 SK 30% CZ GDP/Cap.: $ 27,6151 RO Density: $ 1,3862 4 A Market Share 20% Group 2 BG 1 Pop: 66.7mn Group 2 GDP/Ca
Slide 5: Contents
Contents Outline of VIG’s markets Insurance development and exploitation by VIG Outline of VIG’s markets Management focus Earnings potential Financials and outlook 5
Slide 6: Outline of VIG's Major Markets (I) – Austria
Outline of VIG’s Major Markets (I) Outline of VIG’s Austria markets Market Statistics 2 Proportion of Non-Life & Life 2006 2009 9M 2010 Austrian Insurance Market 1 44% 46% 45% Market Volume (€mn) 15,589 16,420 12,922 Insurance Density ($)2 2,397 2,743 na L 1 NL VIG Austria (%) 56% 54% 55% Growth 8.1
Slide 7: Outline of VIG's Major Markets (II) – Czech Republic
Outline of VIG’s Major Markets (II) Outline of VIG’s Czech Republic markets Market Statistics 2 Proportion of Non-Life & Life 2006 2009 9M 2010 Czech Insurance Market 38% 39% 42% 1 Market Volume (€mn) 4,309 5,293 4,382 Insurance Density ($)2 520 723 na L 1 NL VIG Czech Republic (%) 62% 61% 58% Growt
Slide 8: Outline of VIG's Major Markets (III) – Slovakia
Outline of VIG’s Major Markets (III) Outline of VIG’s Slovakia markets Market Statistics 2 Proportion of Non-Life & Life 2006 2009 9M 2010 Slovak Insurance Market 41% 39% 1 47% Market Volume (€mn) 1,444 2,018 1,551 Insurance Density ($)2 337 517 na L 1 NL VIG Slovakia (%) 59% 61% Growth 10.8 0.9 2.1
Slide 9: Outline of VIG's Major Markets (IV) – Poland
Outline of VIG’s Major Markets (IV) Outline of VIG’s Poland markets Market Statistics 2 Proportion of Non-Life & Life 2006 2009 9M 2010 Poland Insurance Market 37% 1 48% 51% Market Volume (€mn) 9,634 11,503 10,038 Insurance Density ($)2 310 430 na L 1 NL VIG Poland (%) 63% Growth 47.7 -12.7 9.8 52%
Slide 10: Outline of VIG's Major Markets (V) – Romania
Outline of VIG’s Major Markets (V) Outline of VIG’s Romania markets Market Statistics 2 Proportion of Non-Life & Life 2006 2009 9M 2010 24% 20% 18% Romanian Insurance Market 1 Market Volume (€mn) 1,625 2,114 1,506 Insurance Density ($)2 94 136 na L 1 82% NL VIG Romania (%) 76% 80% Growth 1.5 -1.0 -1
Slide 11: Contents
Contents Management focus Insurance development and exploitation by VIG Outline of VIG’s markets Management focus Earnings potential Financials and outlook 11
Slide 12: Management Focus (I)
Management Focus (I) Remain committed to proven fundamentals Management focus Steering approach Multi-brand Multi-channel Multi-brand supports <10% Tied agents 11% - 20% entrepreneurship of Brokers 21% - 30% Other 1 management and distribution Banks 31% - 40% partners and allows for internal > 41%
Slide 13: Management Focus (II)
Management Focus (II) Broadening the basis of business Management focus Diversification Cooperation of s Versicherung Life in CEE Cooperation with Erste Group, focus on UL, extension into S Versicherung shows strongest growth 10 countries dynamic in CEE (=> about 30% in YE 2010), in CZ premium in
Slide 14: Contents
Contents CEE business and earning potential Insurance development and exploitation by VIG Outline of VIG’s markets Management focus Earnings potential Financials and outlook 14
Slide 15: Profit Drivers in CEE
Profit Drivers in CEE CEE business and Creating value from cost ratio, investment income and reinsurance earning potential Earnings Potential Decrease in cost ratio Reserving Level Comparison (Claims reserve in % of NEP) Economies of scale in less advanced markets Cost reduction programmes in adv
Slide 16: Contents
Contents Financials and outlook Insurance development and exploitation by VIG Outline of VIG’s markets Management focus CEE business and earnings potential Financials and outlook 16
Slide 17: YE 2010 Performance Drivers
YE 2010 Performance Drivers Financials and outlook € 507.8mn PBT, up by 15.1% Group Embedded Value: Combined ratio (net) at 98.4% Increase to € 5.1bn - strong influenced by NatCat losses in VIG – YE 10 RoEV of 9.1% despite adverse CEE market conditions Increase of profitability in Life insurance
Slide 18: YE 2010 Financial Highlights
YE 2010 Financial Highlights PBT increase driven by CEE performance Financials and outlook GWP (€mn) Profit before Tax Net Profit after Tax / Minorities (€mn) (€mn) +7.2% 8,593 +15.1% +11.5% 8,019 508 380 441 340 2009 2010 2009 2010 2009 2010 Combined Ratio (net, %) EPS (€) ROE before Tax (%) 2.97 9
Slide 19: Outlook/Dividend
Outlook/Dividend Financials and outlook VIG‘s Path of Profitability (€mn) Development of Dividend € 540 € 256.0mn € 508 € 437 € 441 € 128.0mn € 321 € 115.5mn € 115.2mn € 86.1mn € 0.90 € 1.10 ~€ 1.00 € 0.82 € 0.90 € 1.10 YE 2006 YE 2007 YE 2008 YE 2009 YE 2010 YE 2006 YE 2007 YE 2008 * YE 2009 YE 201
Slide 20: VIG Share & Contact Details
VIG Share & Contact Details Investor Relations Appendix VIG Share Investor Relations Number of common shares Vienna Insurance Group 128mn Schottenring 30, 1010 Vienna E-Mail: [email protected] ISIN AT0000908504 www.vig.com/ir Listing Thomas Schmee (Head of IR) Vienna – since 17 Oct.
Slide 21: Disclaimer
Disclaimer Appendix 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
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