Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — German Corporate Conference, Frankfurt 2019

29 slides from Vienna Insurance's conference presentation, Jan 23, 2019

  1. Slide 1: German Corporate Conference, Frankfurt

    VIENNA INSURANCE GROUP German Corporate Conference Frankfurt, 23 January 2019

  2. Slide 2: VIG – The Leading Insurance Group in Austria & CEE

    VIG – THE LEADING INSURANCE GROUP IN AUSTRIA & CEE Close to Around Represented in 200 years of experience 50 Group companies 25 markets More than More than Solvency Ratio 50% of premiums and profits coming 25,000 employees 222% based on Partial Internal Model from CEE Since Current market capitaliza

  3. Slide 3: Management Principles

    MANAGEMENT PRINCIPLES 1 Local entrepreneurship  Knowledge of local needs and markets  Decentralised structures and efficient decision-making procedures 2 Multi-brand strategy  Around 50 brands in 25 countries  Utilisation of established local brands 3 Multi-channel distribution  Various distrib

  4. Slide 4: VIG Best Positioned to Leverage Positive Market Development in CEE

    VIG IS BEST POSITIONED TO LEVERAGE ON THE POSITIVE MARKET DEVELOPMENT IN CEE Excellent market shares throughout the region 1 2018: 25 markets Client/talent base: Country Market position Market share total 180mn people Austria 1 1 1 23.6% 10 Czech Rep. 1 2 1 32.0% 4 Slovakia 1 2 1 33.4% Poland 4 4 5

  5. Slide 5: Positive Economic Environment and Strong Growth Potential

    POSITIVE ECONOMIC ENVIRONMENT AND STRONG GROWTH POTENTIAL GOING FORWARD Annual insurance spending shows significant growth potential in the CEE region Real GDP growth p.a. 2019-2023 Insurance density 2017, in EUR (premiums per capita) Austria 1.5 Austria 1,948.5 Croatia 2.3 Croatia 289.7 Hungary 2.3

  6. Slide 6: Agenda 2020: Creating Added Value by Increasing Operating Performance

    AGENDA 2020: CREATING ADDED VALUE BY INCREASING OPERATING PERFORMANCE Medium-term target: combined ratio sustainably at level of 95% Optimisation of business model Ongoing activities  Shared Services Mergers in AT, CZ, SK, HU and HR Creating cost benefits by merging back-office VIG merged the forme

  7. Slide 7: Agenda 2020: Specific Initiatives to Contribute to Future Success

    AGENDA 2020: SPECIFIC INITIATIVES TO CONTRIBUTE TO FUTURE SUCCESS Main focus is on digital transformation of the Group Ensuring future growth Ongoing activities Focus on health insurance and expansion of reinsurance activities  Use of growth potentials Health premiums in the target markets of Polan

  8. Slide 8: Mutual Distribution Agreement with Erste Group

    MUTUAL DISTRIBUTION AGREEMENT WITH ERSTE GROUP Extension of strategic partnership ahead of schedule 2008: Start of mutual Distribution Agreement following CZ the acquisition of the insurance operations of Erste SK AT Extension & Intensification of existing agreement until 2033 HU RO HR Respective co

  9. Slide 9: Strategy & Agenda 2020 / Results 9M 2018 / Appendix

    STRATEGY & AGENDA 2020 RESULTS 9M 2018 APPENDIX 9 VIG VIENNA INSURANCE GROUP

  10. Slide 10: Highlights 9M 2018

    HIGHLIGHTS 9M 2018 VIG well on track to reach full-year targets 2018 Gross written premiums Profit before taxes Combined Ratio € 7,357.5mn € 352.3mn 96.3% GWP up by 2.9% compared to 9M 2017 PBT increased by 6.4% Down from 97.3% in 9M 2017  Current premium business: +5.4%  CEE profit growth impacte

  11. Slide 11: Gross Written Premiums of €7.4bn Up by €205mn

    GROSS WRITTEN PREMIUMS OF €7.4bn UP BY €205mn Overview by segments Gross written premiums (€mn; y-o-y chg.)  Premiums in Austria and Poland slightly lower y-o-y; adjusted for life single-premium business, premium growth in Austria of 1.9% and in Poland of 11.1%  Premium decrease in Turkey/Georgia

  12. Slide 12: Premium Development by Lines of Business

    PREMIUM DEVELOPMENT AS EXPECTED – ALL BUSINESS LINES EXPERIENCE GROWTH, EXCEPT FOR LIFE SINGLE PREMIUM BUSINESS Gross written premiums by lines of business (€mn; y-o-y chg.); incl. Central Functions MTPL Casco Other property Total premiums +2.9% 9M 2017 1,039 811 3,119 7,153 7,357 +5.8% +8.6% +5.5%

  13. Slide 13: Group Profit Before Taxes of €352.3mn Up by 6.4%

    GROUP PROFIT BEFORE TAXES OF €352.3mn UP BY 6.4% Overview by segments Result before taxes (€mn; y-o-y change)  Profit growth in AT and CZ driven by CoR improvements and better financial results  SK: profit decrease of €8.1mn due to higher cost ratio and reserve strengthening in Q1  PL: provisions

  14. Slide 14: VIG with Solid Results Well on Track to Reach Targets for 2018

    VIG WITH SOLID RESULTS WELL ON TRACK TO REACH TARGETS FOR 2018 Executive summary Highlights Consolidation ongoing  Mergers of local composite insurers with life insurance companies specialised in bank distribution completed in Austria, Slovakia, Hungary and Croatia in 2018; merger in Czech Republic

  15. Slide 15: Strategy & Agenda 2020 / Results 9M 2018 / Appendix

    STRATEGY & AGENDA 2020 RESULTS 9M 2018 APPENDIX 15 VIG VIENNA INSURANCE GROUP

  16. Slide 16: Managing Board as of 1 July 2018

    MANAGING BOARD AS OF 1 JULY 2018 Fotos: Ian Ehm, Thomas Pitterle Elisabeth Stadler, CEO Franz Fuchs Judit Havasi Liane Hirner, CFO Peter Höfinger Peter Thirring Mgmt. of the VIG Group, Performance Planning & Controlling Finance & Accounting Corporate and Large Group external income General Secretari

  17. Slide 17: 9M 2018 Key Financials

    9M 2018 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and non-controlling interest (€mn) ROE after tax and minorities1 (%) 288 298 7.3 7.2 7.0 215 6.6 207 2016 2017 9M 17 9M 18 2016 2017 9M 17 9M 18 EPS net of hybrid interest1 (€) Book value per share (€) 2.23 35.66 37.75 36.

  18. Slide 18: Dividend per Share at €0.90 for Business Year 2017

    DIVIDEND PER SHARE AT €0.90 FOR THE BUSINESS YEAR 2017 Earnings per share up 3.2%; payout ratio increased to 38.7% EPS (€) Dividend per share (€) Payout ratio (%) 2.16 2.23 38.7 UNCHANGED DIVIDEND POLICY 35.6  Distribution of at least 30% of Group net profits after minorities 0.90 0.80  Dividend p

  19. Slide 19: Strong Overall Performance of VIG

    STRONG OVERALL PERFORMANCE OF VIG 9M 2018 Income statement GWP development (€mn) €mn 9M 2018 9M 2017 +/- %  Premiums up by €205mn; adjusted for Gross premiums written 7,357.5 7,152.6 2.9 life single premium business premium +2.9% Net earned premiums 6,518.1 6,325.8 3.0 growth of 5.4% 7,357 Financia

  20. Slide 20: 9M 2018 Balance Sheet

    9M 2018 BALANCE SHEET IFRS (€mn) €mn 30.09.2018 31.12.2017 +/- % Intangible assets 1,905 1,971 -3.3 Investments 36,530 35,933 1.7 Unit- and index-linked investments 8,743 9,061 -3.5 Reinsurers’ share in underwriting provisions 1,081 1,066 1.4 Receivables 1,544 1,476 4.6 Tax receivables and advance p

  21. Slide 21: Investment Split and Bond Portfolio Overview

    INVESTMENT SPLIT AND BOND PORTFOLIO OVERVIEW Bond portfolio split by rating changed due to rating upgrade of CZ in Q3 9M 2018: Total €37.5bn Bond portfolio by rating1 4.3% 1.5% 5.5% AAA AA A BBB Other 9M 2018 10% 32% 36% 16% 6% 6.6% 12M 2017 10% 22% 45% 17% 5% 5.7% 66.5% Bond portfolio by issuer 9.9

  22. Slide 22: 9M 2018 Premiums by Business Lines and Country (I)

    9M 2018 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- % Austria 258.8 253.2 2.2 227.1 221.4 2.6 1,080.0 1,056.5 2.2 Czech Republic 219.4 208.8 5.1 182.3 172.3 5.8 365.2 343.6 6.3 Slovakia 114.2 108.9 4.

  23. Slide 23: 9M 2018 Premiums by Business Lines and Country (II)

    9M 2018 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- % Austria 937.1 932.4 0.5 179.8 244.5 -26.4 313.5 301.7 3.9 Czech Republic 457.7 422.7 8.3 39.4 49.1 -19.8 10.4 9.9 5.4 Slovakia 128.0 123.6

  24. Slide 24: 9M 2018 Country Overview GWP / PBT / Combined Ratio

    9M 2018 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- % 9M 2018 9M 2017 +/- %p Austria 2,996.4 3,009.6 -0.4 130.2 105.7 23.2 94.9% 97.0% -2.1 Czech Republic 1,274.4 1,206.5 5.6 123.8 113.7 9.0 93.6% 9

  25. Slide 25: VIG Share (I)

    VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Current analyst recommendation split Current listings Ticker Rating Major Indices SELL Vienna  Vienna Stock Exchange: VIG Standard & Poor´s: ATX 2 BUY Prague  Bloomberg: VIG AV / VIG CP A+, stable outlook A

  26. Slide 26: VIG Share (II)

    VIG SHARE (II) Shareholder structure Free float split by region1 Continental Europe 30% Austria 28% ~70% ~30% North America 28% UK & Ireland 11% Other 3% Wiener Städtische Versicherungsverein Free Float (Mutual) 1 Split of identified shares, May 2018 (Source: CMi2i) 26 APPENDIX VIG VIENNA INSURANCE

  27. Slide 27: VIG VIENNA INSURANCE GROUP

    27 APPENDIX VIG VIENNA INSURANCE GROUP

  28. Slide 28: Contact Details / Financial Calendar

    CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / [email protected] / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2019* Head of Investor Relations Team Leader Corporate Reporting Date Event Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 21 Mar.

  29. Slide 29: 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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