Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — 9M 2015 Earnings Presentation
36 slides from Vienna Insurance's earnings presentation, Nov 24, 2015
Slide 1: Vienna Insurance Group 9M 2015 Results Presentation
Vienna Insurance Group 9M 2015 Results Presentation Vienna, 24 November 2015 Financials Main regions Investments Appendix
Slide 2: 9M 2015 Results conference call overview
9M 2015 Results conference call overview Presenting team and topics Presenting team: Martin Simhandl, CFO Peter Höfinger, Member of the Managing Board Roland Gröll, Head of Group Finance and Accounting Nina Higatzberger, Head of Investor Relations Topics: Financial highlights p. 3 Investments and eq
Slide 3: 9M 2015 operating developments in line with trends
9M 2015 operating developments in line with trends observed in previous quarters IT impairment in the size of €195mn €6.9bn Premium business decrease of 1.8% caused by reduced life single premium GWP Current life premiums up 5.8% but could not compensate for single premium business decline of 18.4%
Slide 4: Premiums overall slightly down 1.8% driven by single premium life business decrease
Premiums overall slightly down 1.8% driven by single premium life business decrease Top-line growth of 2.5% adjusted for single premium life business Gross written premiums (€mn; y-o-y chg.) GWP regional split y-o-y chg. -2% Austria 3,154 -2% 7,039 31 8 6,912 Czech Republic 1,193 -7% Health 291 299
Slide 5: Operating result at €370.3mn; IT impairment of €195mn
Operating result at €370.3mn; review of IT systems’ landscape led to impairment of €195mn PBT after impairment of €175.3mn down by 60.2% Profit before taxes (€mn; y-o-y change) PBT regional split y-o-y chg. -60% Austria 117 -30% 441 Health 47 Czech Republic 126 -1% Slovakia 40 -6% Life 158 -241 Pola
Slide 6: Group combined ratio at 96.9%
Group combined ratio at 96.9% Improvement of 0.2%p compared y-o-y P&C Combined ratio development P&C CoR 9M y-o-y regional development (net, %) -0.2%p AT 100.8 -2.2%p 97.2 96.9 98.6 CZ 88.8 +0.6%p 89.4 SK 93.1 +3.6%p 9M14 Claims ratio 67.1 66.4 96.6 94.6 9M15 PL +2.6%p 97.2 RO 109.3 -7.1%p Cost rati
Slide 7: Main regions
Financial Main regions highlights Investments and Appendix equity Financials Main regions Investments Appendix
Slide 8: Austria: negative impacts from low interest rate environment
Austria: negative impacts from low interest rate environment CoR down to 98.6% from 100.8% in 9M 2014 GWP development (€mn) P&C GWP direct business split1 -2.1% MTPL 3,222 3,154 17% (19%) P&C 1,490 1,493 14% Casco Health 275 284 (14%) 69% Life 1,457 1,377 (67%) Non-motor 9M14 9M15 P&L: P&C business
Slide 9: Czech Republic: contributing most to Group profits
Czech Republic: contributing most to Group profits CoR at excellent level of 89.4% GWP development (€mn) P&C GWP direct business split1 -6.8% 1,281 1,193 MTPL 31% P&C 635 (31%) 638 Non-motor 46% (48%) Life 645 556 23% (21%) 9M14 9M15 Casco P&L: P&C business (€mn) P&L: Life business (€mn) 9M15 Y-o-Y
Slide 10: Slovakia: stable top-line development but profit before taxes down
Slovakia: stable top-line development but profit before taxes down to €40.4mn from €43.1mn in 9M 2014 P&C profitability impacted by increased weather related claims GWP development (€mn) P&C GWP direct business split1 +0.5% 549 552 Non-motor 33% P&C 252 254 (34%) 39% MTPL (40%) Life 297 298 27% (27%
Slide 11: Poland: ongoing pricing pressure
Poland: ongoing pricing pressure CoR increased to 97.2%; still solid given current market environment in PL GWP development (€mn) P&C GWP direct business split1 -21.5% 809 MTPL 635 32% P&C 427 Non-motor 43% (32%) 358 (43%) Life 383 277 26% (25%) 9M14 9M15 Casco P&L: P&C business (€mn) P&L: Life busi
Slide 12: Romania: profit before taxes doubled to €5.5mn
Romania: profit before taxes doubled to €5.5mn Positive CoR development on both, claims and cost ratio GWP development (€mn) P&C GWP direct business split1 +23.3% 301 Non-motor 244 29% (32%) 42% MTPL 242 (38%) P&C 209 Life 59 28% 35 (29%) 9M14 9M15 Casco P&L: P&C business (€mn) P&L: Life business (€
Slide 13: Remaining markets: record result with double-digit growth
Remaining markets: record result with double-digit growth of premiums and profits Profits in CEE Remaining markets up by 15.4% GWP development (€mn) P&C GWP direct business split1 +14.6% MTPL 955 834 23% (23%) 495 P&C 459 16 58% Health 16 Non-motor (58%) 19% 445 (19%) Life 359 Casco 9M14 9M15 P&L: P
Slide 14: Investments and equity
Financial Main regions highlights Investments and Appendix equity Financials Main regions Investments Appendix
Slide 15: Conservative investment strategy to be maintained
Conservative investment strategy to be maintained Bond rating split impacted by rating downgrades of Austrian banks 9M 2015: Total €31.6bn Bond portfolio by rating1 Other 6% 6% 6.8% 12% 16% BBB 3.4% 0.0% A 38% 32% 9.1% AA 29% 35% 6.4% AAA 15% 11% 4.0% 12M14 9M15 Bond portfolio by issuer 70.5% Corpor
Slide 16: Financial result
9M 2015 Financial result Current income decreased by more than €40mn Income P&C Life Health Total in € '000 9M 2015 9M 2014 9M 2015 9M 2014 9M 2015 9M 2014 9M 2015 9M 2014 Current income 207,226 213,917 619,908 651,422 30,642 32,905 857,776 898,244 Income from appreciations 7,365 20,554 5,657 12,639
Slide 17: Strong equity and solvency position
9M 2015: Strong equity and solvency position Shareholders’ equity decrease impacted by repurchase of hybrid bond Change in Group Shareholders’ Equity (€mn) -4% 151 12 5,283 -129 34 5,091 -200 -61 Equity restated Profit for Currency AFS unrealised Dividend Repurchase Other Equity as as of 12M14 the p
Slide 18: Appendix
Financial Main regions highlights Investments and Appendix equity Please note: The figures for 2014 have been restated due to changes in the scope of consolidation. Financials Main regions Investments Appendix
Slide 19: Key financials
9M 2015 Key financials Overview of KPIs Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 367 100.6 96.7 97.2 96.9 337 234 143 2013 2014 9M14 9M15 2013 2014 9M14 9M15 EPS1 (€) ROE before Taxes² (%) 3.35 12.5 11.0 2.75 7.1 1.57 1.36 5.0 2013 2014 9M14 9M15 2013 2014 9M14 9M15 1: EPS n
Slide 20: Income statement
9M 2015 Income statement IFRS (€mn) €mn 9M 2015 9M 2014 +/-% Gross premiums written 6,912.4 7,038.6 -1.8 Net earned premiums 6,147.3 6,326.7 -2.8 Financial result1 797.3 858.6 -7.1 Other income 78.3 81.8 -4.3 Total income 7,022.8 7,267.1 -3.4 Expenses for claims and insurance benefits -5,021.2 -5,29
Slide 21: Balance sheet
9M 2015 Balance sheet IFRS (€mn) €mn 30.09.2015 31.12.2014 +/-% Intangible assets 2,169 2,370 -8.5 Investments 30,347 30,360 0.0 Unit- and index-linked investments 7,888 7,742 1.9 Reinsurers’ share in underwriting provisions 1,161 1,106 5.0 Receivables 1,439 1,502 -4.2 Tax receivables and advance pa
Slide 22: P&L Property & Casualty
9M 2015 P&L Property & Casualty IFRS (€mn) €mn 9M 2015 9M 2014 +/-% Gross premiums written 3,594.5 3,563.5 0.9 Net earned premiums 2,860.0 2,864.1 -0.1 Financial result 125.8 157.6 -20.2 Other income 43.6 52.3 -16.7 Total income 3,029.5 3,074.1 -1.5 Expenses for claims and insurance benefits -1,898.
Slide 23: P&L Life
9M 2015 P&L Life IFRS (€mn) €mn 9M 2015 9M 2014 +/-% Gross premiums written 3,018.5 3,184.0 -5.2 Net earned premiums 2,994.1 3,165.6 -5.4 Financial result 643.3 673.2 -4.4 Other income 34.4 29.2 17.8 Total income 3,671.9 3,868.0 -5.1 Expenses for claims and insurance benefits -2,881.6 -3,134.7 -8.1
Slide 24: P&L Health
9M 2015 P&L Health IFRS (€mn) €mn 9M 2015 9M 2014 +/-% Gross premiums written 299.4 291.1 2.9 Net earned premiums 293.1 297.1 -1.3 Financial result 28.1 27.7 1.6 Other income 0.3 0.3 3.0 Total income 321.5 325.0 -1.1 Expenses for claims and insurance benefits -240.7 -241.1 -0.2 Acquisition and admin
Slide 25: P&L regions (I)
9M 2015 P&L regions (I) IFRS (€mn) Austria Czech Republic Slovakia €mn 9M 2015 9M 2014 +/-% 9M 2015 9M 2014 +/-% 9M 2015 9M 2014 +/-% Gross premiums written 3,154.2 3,222.3 -2.1 1,193.2 1,280.6 -6.8 551.8 549.0 0.5 Net earned premiums 2,520.0 2,595.0 -2.9 927.1 1,031.1 -10.1 449.9 448.7 0.3 Financia
Slide 26: P&L regions (II)
9M 2015 P&L regions (II) IFRS (€mn) Poland Romania Remaining €mn 9M 2015 9M 2014 +/-% 9M 2015 9M 2014 +/-% 9M 2015 9M 2014 +/-% Gross premiums written 635.3 809.2 -21.5 300.6 243.8 23.3 955.2 833.7 14.6 Net earned premiums 545.4 663.7 -17.8 192.3 132.6 45.0 707.2 626.4 12.9 Financial result 35.6 39.
Slide 27: P&L regions (III)
9M 2015 P&L regions (III) IFRS (€mn) Central Functions Consolidation TOTAL €mn 9M 2015 9M 2014 +/-% 9M 2015 9M 2014 +/-% 9M 2015 9M 2014 +/-% Gross premiums written 968.6 989.6 -2.1 -846.4 -889.8 n.a. 6,912.4 7,038.6 -1.8 Net earned premiums 805.8 831.1 -3.1 -0.3 -2.0 n.a. 6,147.3 6,326.7 -2.8 Finan
Slide 28: Results by country (I)
9M 2015 Results by country (I) IFRS (€mn) GWP P&C GWP Life GWP Health GWP Total 9M 9M 9M 9M 9M 9M 9M 9M +/-% +/-% +/-% +/-% 2015 2014 2015 2014 2015 2014 2015 2014 Austria 1,493.5 1,490.0 0.2% 1,376.9 1,457.4 -5.5% 283.8 274.8 3.3% 3,154.2 3,222.3 -2.1% Czech Rep. 637.7 635.2 0.4% 555.5 645.4 -13.9%
Slide 29: Results by country (II)
9M 2015 Results by country (II) IFRS (€mn) Profit before Taxes Net Combined Ratio 9M 2015 9M 2014 +/-% 9M 2015 9M 2014 +/-%p Austria 116.9 166.3 -29.7% 98.6% 100.8% -2.2 Czech Rep. 125.9 127.6 -1.3% 89.4% 88.8% 0.6 Slovakia 40.4 43.1 -6.1% 96.6% 93.1% 3.6 Poland 38.1 48.7 -21.8% 97.2% 94.6% 2.6 Roma
Slide 30: P&C claims and cost ratio details
9M 2015 P&C claims and cost ratio details Claims ratio 9M y-o-y regional development (net, %) Remarks for claims incurred 9M14 9M15 Austria: claims ratio down 2.7%p driven by reduced Italian business of Donau Versicherung -2.7 +0.2 +6.4 -1.2 +2.5 Stable claims ratios in the Czech Republic +4.3 73.4
Slide 31: 3Q 2015 Income statement
3Q 2015 Income statement IFRS (€mn) €mn 3Q 2015 3Q 2014 +/-% Gross premiums written 2,004.4 2,054.8 -2.5 Net earned premiums 1,938.4 2,005.2 -3.3 Financial result1 272.8 293.5 -7.1 Other income 28.1 23.7 18.4 Total income 2,239.3 2,322.5 -3.6 Expenses for claims and insurance benefits -1,668.6 -1,69
Slide 32: Exchange rates
9M 2015 Exchange rates 9M 2015 9M 2014 Balance Sheet Balance Sheet Country Currency P&L EUR P&L EUR EUR EUR Albania EUR/ALL 139.3900 140.2398 139.8900 140.0483 Belarus EUR/BYR 19,908.0000 17,027.4249 13,420.0000 13,610.4029 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.9558 1.9558 1.
Slide 33: VIG share (I)
VIG share (I) Current analyst recommendation split Share price development 9M 2015 Sell High EUR 42.620 Low EUR 25.515 Price as of 30 Sep EUR 26.350 Hold Buy Average daily volume EUR 7.6 mn Market cap. EUR 3.4 bn Development YTD % -28.9 VIG compared to ATX and Stoxx Europe 600 Ins. 135 125 115 105 9
Slide 34: 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 35: Contact details
Contact details Investor Relations Financial calendar 2015/16 Investor Relations Team Date Event Results for the first three quarters Vienna Insurance Group 24 Nov. 2015 2015 Schottenring 30, 1010 Vienna E-Mail: [email protected] Publication: Preliminary www.vig.com/ir 26 Jan. 2016 unconsol
Slide 36: 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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