Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Non-Deal Roadshow (January 2009)
51 slides from Vienna Insurance's roadshow presentation, Jan 29, 2009
Slide 1: V.I.G. – A Top Insurance Player in CEE
V.I.G. – A Top Insurance Player in CEE Frankfurt & London Roadshow, 29 - 30 January 2009
Slide 2: Contents
Contents A 2 A Investment proposition B Growth potential in CEE and Austria C Business initiatives D YE 2008 preliminary results E Appendix
Slide 3: Investment Proposition at a Glance
Investment Proposition at a Glance V.I.G. set two strategic milestones A 3 Footprint Milestone 1 § V.I.G. - Pioneer in CEE; start of expansion in 1990 - “Big fish in a small pond” - Going east immediately after the fall of the iron curtain due to potential of emerging markets and proximity § V.I.G.
Slide 4: V.I.G. – Top Insurer
V.I.G. – Top Insurer No. 1 position in its core markets A 4 Total Market Share in CEE1 Market Share in CEE1 Non-life 18.9% 14.9% 13.8% 14.0% 10.5% 10.5% 5.7% 5.8% 4.8% 4.7% 4.6% 4.9% 2.9% 2.4% 2.1% 1.9% 1.0% 0.4% 0.3% 0.1% KBC VIG ING AIG KBC VIG AIG Aviva Uniqa Aegon Uniqa Aviva Aegon Allianz Group
Slide 5: V.I.G. Outperformed own Commitments
V.I.G. Outperformed own Commitments Focus on profitable growth A 5 Undertakings Proof § Expansion of its position in Austria § Increased market share in Austria by more than 3% pts – VIG no. 1 § Expansion of CEE business through § CEE premium volume doubled acquisitions and organic growth § Ongoing
Slide 6: Contents
Contents B 6 A Investment proposition B Growth potential in CEE and Austria C Business initiatives D YE 2008 preliminary results E Appendix
Slide 7: Macro Environment in CEE Countries
Macro Environment in CEE Countries Foreign resources to support CEE economies B 7 EU Spendings 2007 – 2013 (€bn) Comments 90.00 Cohesion Rural 80.00 70.00 60.00 50.00 § FDI into CEE to be maintained as 40.00 largely influenced by dedicated 30.00 EU funds for infrastructure and 20.00 defined economic
Slide 8: Czech Insurance Demand History
Czech Insurance Demand History Strong demand for insurance also when economy was weak B 8 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
Slide 9: V.I.G. Business Model Still in Place (I)
V.I.G. Business Model Still in Place (I) GDP growth and underpenetration are insurance drivers B 9 1998 Growth Markets Mature Markets Insurance Density (USD) 1,000 CRO Emerging Markets PL H RO Insurance demand BG SK CZ also strongly driven by UA SER TR catch-up process 0 1,000 10,000 GDP per Capita
Slide 10: V.I.G. Business Model Still in Place (II)
V.I.G. Business Model Still in Place (II) Catch-up potential in CEE in Non-life and Life B 10 Insurance Density 2007 Proportion of NL & L in CEE Markets 3,668 Life Non-life Non-life 2,621 58% 53% 54% 35% NL 79% 80% 73% 65% 61% Life 44% 49% 83% L 55% 59% 55% 73% 81% 85% 90% 17% 21% 20% 27% 35% 39% 42
Slide 11: Contents
Contents C 11 A Investment proposition B Growth potential in CEE and Austria C Business initiatives D YE 2008 preliminary results E Appendix
Slide 12: Strategic Update
Strategic Update Extending successful cooperation with Erste Group C 12 s Versicherung Group Total Premiums (€mn) Austria Premiums (€mn) CEE1 Premiums (€mn) (unconsolidated, unaudited) (unconsolidated, unaudited) (unconsolidated, unaudited) 12.4% 1,450 1,289 809 11.0% 898 481 14.8% 552 YE 2007 YE 20
Slide 13: V.I.G. and ARAG
V.I.G. and ARAG Combined forces of know-how and distribution C 13 Joint Venture § Leading legal expenses insurance Group worldwide § A leading insurance Group in CEE § More than 70 years of experience in legal expenses § Enormous distribution power insurance § GWP of about € 1.4bn, 3,400 employees w
Slide 14: A New Business Initiative in CEE
A New Business Initiative in CEE Upcoming demand for private health insurance in CEE C 14 Health Business in CEE Market Potential VIG exploits further growth V.I.G. Market Potential potential in CEE § Health business as new business line in CEE Market § Sales promotion to start in Czech Republic, €
Slide 15: VIG RE – update
VIG RE – update Progressing ahead of business plan C 15 VIG RE – Development Key Considerations § To leverage longstanding market knowledge and strong CEE footprint – incorporated in € 300mn Czech Republic € >280mn § Pooling of VIG reinsurance volume in order to avoid inefficiencies € 200mn § VIG RE
Slide 16: Contents
Contents D 16 A Investment proposition B Growth potential in CEE and Austria C Business initiatives D YE 2008 preliminary results E Appendix
Slide 17: YE 2008 Financial Highlights
YE 2008 Financial Highlights GWP, unconsolidated, unaudited D 17 YE 2008: Total Group Premiums (€bn) Q4 2008: Total Group Premiums (€bn) (unconsolidated, unaudited) (unconsolidated, unaudited) 16.1% 2.1% 3.46 3.08 L L 0.93 0.89 NL NL 4.87 4.09 0.97 1.08 YE 2007 YE 2008 Q4 2007 Q4 2008 YE 2008: CEE G
Slide 18: YE 2008 Gross Written Premiums
YE 2008 Gross Written Premiums YE 08 growth rates sustaining picture of first 9M (€mn) D 18 § Overall, VIG recorded sound double digit premium growth in 2008 – both in non-life and life. 218.2 § In Austria, overall good business trend in 2008; life business showed 251.2 slowdown in Q4, heavily influ
Slide 19: YE 2008 Premium Development
YE 2008 Premium Development Preliminary GWP for YE 2008 (€ mn, unconsolidated, unaudited) 1 D 19 Total Non-Life Life YE 2008 YE 2007 +/-% YE 2008 YE 2007 +/-% YE 2008 YE 2007 +/-% Austria 3,939.0 3,846.2 2.4% 1,909.3 1,836.0 4.0% 2,029.7 2,010.2 1.0% Czech Rep. 1,529.7 1,215.6 25.8% 1,092.8 923.5 18
Slide 20: YE 2008 Investment Split
YE 2008 Investment Split V.I.G. follows a prudent investment policy – well diversified risks D 20 Investment policy Portfolio Overview Other Cash & Deposits BBB AAA Alternative Inv. ~2% § More than 50% of real estate with ~ 2% ~ 7% ~7% ~21% regulated Austrian housing Affiliated societies; remainder
Slide 21: PBT Outlook for YE Confirmed
PBT Outlook for YE 08 Confirmed YE 2008 PBT expected to be in line with promises D 21 V.I.G.'s Path of Profitability/Outlook Comments ~540 9,000 8,000 GWP 500 § PBT target of EUR ~ 540mn for year 2008 PBT maintained 7,000 400 § Impact of financial markets on Group 6,000 results balanced by extraordi
Slide 22: Dividend
Dividend Dividend per share of minimum € 1.1 planned D 22 Development of Dividend Comments Payout volume € 140.8mn § Based on results, management is Dividend/share +22% planning to propose dividend payout of at least EUR 1.1 per share despite 22% € 115.5mn SPO in May 2008 € 86.1mn § Dividend yield o
Slide 23: Contents
Contents E 23 A Investment proposition B Growth potential in CEE and Austria C Business initiatives D YE 2008 preliminary results E Appendix
Slide 24: 9M 2008 Highlights (I)
9M 2008 Highlights (I) V.I.G. with stable performance E 24 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.
Slide 25: 9M 2008 Highlights (II)
9M 2008 Highlights (II) E 25 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 26: 9M 2008 Income Statement
9M 2008 Income Statement IFRS (€mn) E 26 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
Slide 27: 9M 2008 Balance Sheet
9M 2008 Balance Sheet IFRS (€mn) E 27 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 >10
Slide 28: 9M 2008 P&L Major Items – Gross Written Premiums
9M 2008 P&L Major Items – Gross Written Premiums Sustained strong premium growth (€mn) E 28 § 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
Slide 29: Geographical Diversification Enhanced
Geographical Diversification Enhanced GWP split by region E 29 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
Slide 30: 9M 2008 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 E 30 § 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 l
Slide 31: 9M 2008 P&L Major Items – Operating Expenses
9M 2008 P&L Major Items – Operating Expenses Cost ratio slightly up due to acquisition expenses E 31 § 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
Slide 32: 9M 2008 P&L Major Items – Net Investment Income
9M 2008 P&L Major Items – Net Investment Income One-off gains balanced by market downturn (€mn) E 32 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
Slide 33: 9M 2008 P&L – Business Segments (P&C)
9M 2008 P&L – Business Segments Property & Casualty, IFRS (€mn) E 33 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
Slide 34: 9M 2008 P&L – Business Segments (Life)
9M 2008 P&L – Business Segments Life, IFRS (€mn) E 34 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 -
Slide 35: 9M 2008 P&L – Business Segments (Health)
9M 2008 P&L – Business Segments Health, IFRS (€mn) E 35 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
Slide 36: 9M 2008 P&L - Split by Regions (I)
9M 2008 P&L - Split by Regions (I) Regional segments, IFRS (€mn) E 36 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
Slide 37: 9M 2008 P&L - Split by Regions (II)
9M 2008 P&L - Split by Regions (II) Regional segments, IFRS (€mn) E 37 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 22
Slide 38: 9M 2008 P&L - Split by Regions (III)
9M 2008 P&L - Split by Regions (III) Regional segments, IFRS (€mn) E 38 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
Slide 39: 9M 2008 Results by Country
9M 2008 Results by Country IFRS (€mn) E 39 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 8
Slide 40: Change in Group Shareholders' Equity
Change in Group Shareholders‘ Equity IFRS E 40 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 availa
Slide 41: Life Insurance Premium Split
Life Insurance Premium Split IFRS (€mn) E 41 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 1
Slide 42: Q3 2008 Income Statement
Q3 2008 Income Statement IFRS (€mn) E 42 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
Slide 43: 9M 2008 Exchange Rates
9M 2008 Exchange Rates National currency unit per EUR E 43 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
Slide 44: Embedded Value (I)
Embedded Value (I) Group Embedded Value - Dec 31, 2007 E 44 in €mn Life & Health Property & Casualty Total Austria/Germany ANAV 735,4 617,5 1.352,9 VIF 1.384,5 n/a 1.384,5 - FOG -31,6 n/a -31,6 - CoCNMR -75,7 n/a -75,7 2.012,6 617,5 2.630,1 CEE ANAV 148,2 1.374,2 1.522,4 VIF 429,1 n/a 429,1 - FOG -1
Slide 45: Embedded Value (II)
Embedded Value (II) Group Embedded Value - Dec 31, 2007 E 45 2007 2006 30% 20% 44% A/G L&H A/G P&C 10% CEE L&H 50% CEE P&C 12% 20% 14% GEV = € 4,551.0mn GEV = € 4,258.8mn1 1 restated
Slide 46: Embedded Value (III)
Embedded Value (III) New Business Values E 46 in €mn Life & Health 2007 2006 + / - % Austria / Germany NBV 63,1 50,9 + 24,0% APE 205,1 225,1 APE-Ratio 30,7% 22,6% PVNBP 1.906,3 1.982,6 PVNBP-Ratio 3,3% 2,6% CEE NBV 45,0 30,7 + 46,6% APE 71,0 45,4 APE-Ratio 63,3% 67,5% PVNBP 409,7 262,4 PVNBP-Ratio 1
Slide 47: V.I.G. Has Excellent CEE Market Position
V.I.G. Has Excellent CEE Market Position V.I.G. an early mover in CEE E 47 Overview of Core Markets Details Czech Rep. Romania Slovakia Bulgaria § leading market position in nearly all core markets Pop.: 10.2 mn Pop.: 21.4 mn Pop.: 5.4 mn Pop.: 7.6 mn § strong market positions GDP/Cap.: $ 17 k GDP/C
Slide 48: Shareholder Structure (I)
Shareholder Structure (I) Total number of shares 128,000,000 E 48 Shareholder Structure ~70 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung ~ 30 % Free Float
Slide 49: Shareholder Structure (II)
Shareholder Structure (II) Total number of shares 128,000,000 E 49 Free Float Geographical Split ~21 % Austria ~20% ~14% North America Others ~32% ~13% Continental Europe UK & Ireland
Slide 50: Contact Details
Contact Details Investor Relations E 50 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.s
Slide 51: Disclaimer
Disclaimer E 51 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 sha
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