Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — 9M 2014 Earnings Presentation

40 slides from Vienna Insurance's earnings presentation, Nov 18, 2014

  1. Slide 1: 9M 2014 Results Presentation

    9M 2014 Results Presentation Conference call for the results of the first three quarters 2014 Vienna, 18 November 2014

  2. Slide 2: Presenting team and topics

    Presenting team and topics  Presenting team  Topics  Martin Simhandl, CFO  9M 2014 Summary p. 3  Peter Höfinger, Member of the Managing  Financial Highlights p. 4 Board  P&L and Balance Sheet p. 8  Roland Gröll, Head of Group Finance and Accounting  Business Lines Segments p.11  Nina Higat

  3. Slide 3: CEE performing well

    CEE performing well A solid quarter within expectations SUMMARY Profit before taxes increased to €430.8mn up 36.4% • PBT burdened by impairments done in 6M 2014 (HAA bonds and Verkehrsbüro) • Strong profit growth of 9.5% in CEE to €244.4mn • Net profit after minorities of €327.7mn, up by 50.7% • EPS

  4. Slide 4: Premiums impacted by FX movements

    Premiums impacted by FX movements FINANCIAL CEE Remaining markets premiums excl. FX up by 8.9% HIGHLIGHTS  Gross written premiums (€mn; y-o-y chg.)  GWP regional split -0.2% y-o-y chg. 7,050 7,039 Austria 3,222 0% 55 Health 304 291 Czech Republic 1,281 -3% -53 -13 Slovakia 549 0% Life 3,129 3,184

  5. Slide 5: Net profit after minorities up by more than 50%

    Net profit after minorities up by more than 50% FINANCIAL PBT improved out of strong P&C and health results HIGHLIGHTS  Profit before taxes (€mn; y-o-y change)  PBT regional split y-o-y chg. +36% 177 Austria 151 11% 22 431 Czech Republic 128 -12% 47 -84 Slovakia 43 1% 316 Health 25 155 Poland 49 0

  6. Slide 6: Improved combined ratios in all regional segments

    Improved combined ratios in all regional segments FINANCIAL Combined ratio decreased to good 97.2% HIGHLIGHTS  CoR development (net, %)  CoR 9M y-o-y regional development (net, %) -3.5pp AT 103.2 -2.4pp 100.8 100.6 97.2 93.8 CZ -5.1pp 88.8 SK 93.5 -0.5pp 9M13 93.1 Claims ratio 70.2 67.1 9M14 PL 95

  7. Slide 7: P&L and Balance Sheet Overview

    P&L and Balance Sheet Overview Vienna Insurance Group – 9M 2014 Results

  8. Slide 8: 9M 2014 – Income statement

    9M 2014 – Income statement P&L AND BALANCE IFRS (€mn) SHEET OVERVIEW €mn 9M 2014 9M 2013 +/-% Gross premiums written 7,038.6 7,050.1 -0.2 Net earned premiums 6,326.7 6,364.3 -0.6 1 Financial result 844.1 892.1 -5.4 Other income 81.8 96.9 -15.6 Total income 7,252.6 7,353.4 -1.4 Expenses for claims an

  9. Slide 9: 9M 2014 – Balance sheet

    9M 2014 – Balance sheet P&L AND BALANCE IFRS (€mn) SHEET OVERVIEW €mn 30.09.2014 31.12.2013 +/-% Intangible assets 2,366 2,266 4.4 Investments 30,162 29,201 3.3 Unit- and index-linked investments 7,694 6,707 14.7 Reinsurers’ share in underwriting provisions 1,109 1,028 7.9 Receivables 1,510 1,561 -3

  10. Slide 10: Business Line Segments

    Business Line Segments Vienna Insurance Group – 9M 2014 Results

  11. Slide 11: 9M 2014 P&L – Property & Casualty

    9M 2014 P&L – Property & Casualty IFRS (€mn) MAIN SEGMENTS €mn 9M 2014 9M 2013 +/-% Gross premiums written 3,563.5 3,617.0 -1.5 Net earned premiums 2,864.1 2,956.0 -3.1 Financial result 146.2 173.3 -15.6 Other income 52.3 57.0 -8.3 Total income 3,062.6 3,186.3 -3.9 Expenses for claims and insurance

  12. Slide 12: 9M 2014 P&L – Life

    9M 2014 P&L – Life IFRS (€mn) MAIN SEGMENTS €mn 9M 2014 9M 2013 +/-% Gross premiums written 3,184.0 3,129.4 1.7 Net earned premiums 3,165.6 3,110.9 1.8 Financial result 670.1 711.2 -5.8 Other income 29.2 39.8 -26.6 Total income 3,864.9 3,861.9 0.1 Expenses for claims and insurance benefits -3,134.7

  13. Slide 13: 9M 2014 P&L – Health

    9M 2014 P&L – Health IFRS (€mn) MAIN SEGMENTS €mn 9M 2014 9M 2013 +/-% Gross premiums written 291.1 303.7 -4.2 Net earned premiums 297.1 297.4 -0.1 Financial result 27.7 7.6 >100 Other income 0.3 0.1 >100 Total income 325.0 305.1 6.5 Expenses for claims and insurance benefits -241.1 -243.3 -0.9 Acqu

  14. Slide 14: Regional Split

    Regional Split Vienna Insurance Group – 9M 2014 Results

  15. Slide 15: Austria - burdened by Italy and impairments in 2014

    Austria - burdened by Italy and impairments in 2014 Premiums in P&C up 3.8% excl. Italian business of Donau REGIONAL SPLIT  GWP for 9M 2014 (€mn)  P&C GWP direct business split 1 -0.2% 3,229 3,222 MTPL 19% (23%) P&C 1,524 1,490 14% Health 267 275 (13%) Casco 67% (63%) Life 1,438 1,457 Remaining 9M

  16. Slide 16: Czech Republic – excellent combined ratio

    Czech Republic – excellent combined ratio GWPs adjusted for negative FX effects up by 3.8% REGIONAL SPLIT  GWP for 9M 2014 (€mn)  P&C GWP direct business split 1 -2.8% 1,318 1,281 MTPL 31% P&C 689 635 (29%) Remaining 48% (51%) Life 629 645 21% (20%) Casco 9M13 9M14  P&L: P&C business (€mn)  P&L:

  17. Slide 17: Slovakia – solid profit contribution

    Slovakia – solid profit contribution Good profit development in P&C REGIONAL SPLIT  GWP for 9M 2014 (€mn)  P&C GWP direct business split 1 +0.1% 548 549 Remaining P&C 34% 251 252 (32%) 40% MTPL (41%) Life 297 297 27% (27%) 9M13 9M14 Casco  P&L: P&C business (€mn)  P&L: Life business (€mn) 9M14 Y

  18. Slide 18: Poland – pressure in motor ongoing

    Poland – pressure in motor ongoing Increase in non-motor business with a CAGR (9M12-14) of 8.2% REGIONAL SPLIT  GWP for 9M 2014 (€mn)  P&C GWP direct business split 1 -3.7% 841 809 MTPL 32% P&C 424 427 (33%) Remaining 43% (42%) Life 417 383 25% (25%) Casco 9M13 9M14  P&L: P&C business (€mn)  P&L

  19. Slide 19: Romania – positive signs on the MTPL market

    Romania – positive signs on the MTPL market Regulator supports substantial changes for motor as of 1.1.2015 REGIONAL SPLIT  GWP for 9M 2014 (€mn)  P&C GWP direct business split 1 -11.2% 275 244 Remaining 32% (36%) 38% MTPL 219 (29%) P&C 209 29% Life 56 (35%) 35 9M13 9M14 Casco  P&L: P&C business

  20. Slide 20: Remaining markets – premiums excl. FX up 12.7%

    Remaining markets – premiums excl. FX up 12.7% Strong combined ratio of below 97% REGIONAL SPLIT  GWP for 9M 2014 (€mn)  P&C GWP direct business split 1 +6.7% 834 MTPL 782 23% (21%) 459 P&C 460 58% 16 Remaining (57%) 19% Health 37 (22%) 359 Casco Life 284 9M13 9M14  P&L: P&C business (€mn)  P&L:

  21. Slide 21: Investments and Equity

    Investments and Equity Vienna Insurance Group – 9M 2014 Results

  22. Slide 22: 9M 2014 – Financial result decreased by 5.4%

    9M 2014 – Financial result decreased by 5.4% Impact of impairments of Hypo Alpe Adria bonds and Verkehrsbüro INVESTMENTS Income P&C Life Health Total in € '000 9M 2014 9M 2013 9M 2014 9M 2013 9M 2014 9M 2013 9M 2014 9M 2013 Current income 208,460 261,588 645,157 665,688 32,906 30,114 886,523 957,390

  23. Slide 23: 9M 2014 – Investment split

    9M 2014 – Investment split Well diversified bond portfolio INVESTMENTS  9M 2014: Total € 31.1bn  Bond portfolio by rating1 Other 6% 5% 12% 12% BBB 6.8% 3.5% A 38% 38% 0.0% 10.2% AA 28% 30% 5.8% AAA 16% 15% 12M 2013 9M 2014 3.6%  Bond portfolio by issuer 70.1% Corporates 13% 14% Financials 23% 21%

  24. Slide 24: 9M 2014 – Strong equity and solvency position

    9M 2014 – Strong equity and solvency position Shareholders’ equity increase driven by profit and unrealised gains EQUITY  Change in Group shareholders’ equity (€mn) +9% 306 6 2 5,452 339 5,020 -18 -200 -3 Equity as Profit for Currency AFS unrealised Changes in Dividend IAS19 At equity Equity as of

  25. Slide 25: Appendix

    Appendix Vienna Insurance Group – 9M 2014 Results

  26. Slide 26: 9M 2014 – Key financials

    9M 2014 – Key financials Overview APPENDIX  Net profit after minorities (€mn)  Combined ratio (net, %) 407 426 96.8 96.7 100.6 96.9 100.6 97.2 342 328 235 218 2011 2012 2013 9M12 9M13 9M14 2011 2012 2013 9M12 9M13 9M14  EPS1 (€)  ROE before taxes (%) 3.25 3.26 11.1 11.2 11.0 3.01 10.5 2.87 7.8 1

  27. Slide 27: 9M 2014 – Gross written premiums by region

    9M 2014 – Gross written premiums by region Flat premiums y-o-y impacted by FX effects APPENDIX €mn GWP P&C GWP Life GWP Health GWP Total 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% Austria 1,490.0 1,524.5 -2.3% 1,457.4 1,438.3 1.3% 274.8 266.5 3.1% 3,222.3 3,2

  28. Slide 28: 9M 2014 P&L – Split by regions (I)

    9M 2014 P&L – Split by regions (I) Regional markets overview, IFRS (€mn) APPENDIX €mn Austria Czech Republic Slovakia 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% Gross premiums written 3,222.3 3,229.3 -0.2 1,280.6 1,318.0 -2.8 549.0 548.3 0.1 Net earned premiums 2,595.0 2,577.5 0.

  29. Slide 29: 9M 2014 P&L – Split by regions (II)

    9M 2014 P&L – Split by regions (II) Regional markets overview, IFRS (€mn) APPENDIX €mn Poland Romania Remaining 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% Gross premiums written 809.2 840.8 -3.7 243.8 274.6 -11.2 833.7 781.5 6.7 Net earned premiums 663.7 681.6 -2.6 132.6 142.2 -6

  30. Slide 30: 9M 2014 P&L – Split by regions (III)

    9M 2014 P&L – Split by regions (III) Regional markets overview, IFRS (€mn) APPENDIX €mn Central Functions Consolidation TOTAL 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% Gross premiums written 989.6 996.7 -0.7 -889.8 -939.1 n.a. 7,038.6 7,050.1 -0.2 Net earned premiums 831.1 875.4

  31. Slide 31: 9M 2014 – Results by country (I)

    9M 2014 – Results by country (I) IFRS (€mn) APPENDIX €mn GWP P&C GWP Life GWP Health GWP Total 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-% Austria 1,490.0 1,524.5 -2.3% 1,457.4 1,438.3 1.3% 274.8 266.5 3.1% 3,222.3 3,229.3 -0.2% Czech Rep. 635.2 689.4 -7.9% 64

  32. Slide 32: 9M 2014 – Results by country (II)

    9M 2014 – Results by country (II) IFRS (€mn) APPENDIX €mn Profit before Taxes Net Combined Ratio 9M 2014 9M 2013 +/-% 9M 2014 9M 2013 +/-pp Austria 151.2 136.7 10.6% 100.8% 103.2% -2.4 Czech Rep. 127.6 144.9 -11.9% 88.8% 93.8% -5.1 Slovakia 43.1 42.8 0.6% 93.1% 93.5% -0.5 Poland 48.7 48.6 0.3% 94.6%

  33. Slide 33: 9M 2014 – P&C Claims and cost ratio details

    9M 2014 – P&C Claims and cost ratio details APPENDIX  Claims ratio 9M y-o-y regional development (net, %)  Remarks for claims incurred 9M13 9M14  Austria: claims ratio down 1.5pp driven by Donau Versicherung -34.6 (in 9M 2013 reserve strengthening for Italian branch office business) -1.5 101.2 -6

  34. Slide 34: 9M 2014 – Life insurance premium split

    9M 2014 – Life insurance premium split IFRS (€mn) APPENDIX Premiums written - direct business 9M 2014 9M 2013 +/- % Regular premiums 1,728 1,726 0.1% Single premiums 1,444 1,391 3.8% Total premiums written - direct business 3,172 3,117 1.8% thereof: Policies with profit participation 1,368 1,464 -6.

  35. Slide 35: Q3 2014 – Income Statement

    Q3 2014 – Income Statement IFRS (€mn) APPENDIX €mn Q3 2014 Q3 2013 +/-% Gross premiums written 2,054.8 2,020.4 1.7 Net earned premiums 2,005.2 1,956.5 2.5 Financial result 292.5 299.1 -2.2 Other income 23.7 15.0 58.6 Total income 2,321.4 2,270.6 2.2 Expenses for claims and insurance benefits -1,694.

  36. Slide 36: 9M 2014 – Exchange rates

    9M 2014 – Exchange rates APPENDIX 9M 2014 9M 2013 Balance Balance Country Curr. P & L EUR P & L EUR Sheet EUR Sheet EUR Albania EUR/ALL 139.8900 140.0483 141.3700 140.2293 Belarus EUR/BYR 13,420.0000 13,610.4029 12,250.0000 11,517.2161 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.95

  37. Slide 37: VIG Share (I)

    VIG Share (I) APPENDIX  Current analyst recommendation split  Share price development 9M 2014 Sell Buy High EUR 40.070 Low EUR 33.800 Price as of 30 Sep EUR 35.755 Average daily volume EUR 2.8 mn Market cap. EUR 4.6 bn Development YTD % -1.3 Hold  VIG compared to ATX and MSCI Europe Insurance 115

  38. Slide 38: VIG Share (II)

    VIG Share (II) APPENDIX  General information  Shareholder structure Number of common shares: 128mn Wiener Städtische Wechselseitiger ISIN: AT0000908504 Versicherungsverein - Vermögensverwaltung – Free Float Listings: Vienna Insurance Group ~30 % Vienna – since 17 Oct. 1994 ~70 % Prague – since 5

  39. Slide 39: Contact details

    Contact details Investor Relations APPENDIX  Financial calendar 2015  Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna Publication: Preliminary E-Mail: [email protected] 27 Jan. 2015 unconsolidated premiums 2014 www.vig.com/ir 14 April 2015 Results an

  40. Slide 40: 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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