Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Non-Deal Roadshow (March 2009)
28 slides from Vienna Insurance's roadshow presentation, Mar 5, 2009
Slide 1: V.I.G. – A Solid Ship in a Stormy Market
V.I.G. – A Solid Ship in a Stormy Market US & Tokyo Roadshow – 05 - 09 March 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 geographic proximit
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: A Solid Ship in a Stormy Market
A Solid Ship in a Stormy Market A 5 Strong profitable growth and attractive shareholder returns First-mover advantage Comprehensive Innovative products in CEE with strong distribution under continuing market share and network with insurance demand flexible sales force pricing power Strong balance sh
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 V.I.G. 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 V.I.G. reinsurance volume in order to avoid inefficiencies € 200mn § VIG
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 Investment Split
YE 2008 Investment Split V.I.G. follows a prudent investment policy – well diversified risks D 18 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 19: PBT Outlook for YE Confirmed
PBT Outlook for YE 08 Confirmed YE 2008 PBT expected to be in line with promises D 19 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 20: Dividend
Dividend Dividend per share of minimum € 1.1 planned D 20 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 21: Contents
Contents E 21 A Investment proposition B Growth potential in CEE and Austria C Business initiatives D YE 2008 preliminary results E Appendix
Slide 22: YE 2008 Gross Written Premiums
YE 2008 Gross Written Premiums YE 08 growth rates sustaining picture of first 9M (€mn) E 22 § Overall, V.I.G. 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 in
Slide 23: YE 2008 Premium Development
YE 2008 Premium Development Preliminary GWP for YE 2008 (€ mn, unconsolidated, unaudited) 1 E 23 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 24: 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 24 Overview of Core Markets Details Czech Rep. Slovakia Romania Bulgaria § leading market position in nearly all core markets Pop.: 10.2 mn Pop.: 5.4 mn Pop.: 21.4 mn Pop.: 7.6 mn § strong market positions GDP/Cap.: $ 17 k GDP/C
Slide 25: Shareholder Structure (I)
Shareholder Structure (I) Total number of shares 128,000,000 E 25 Shareholder Structure ~70 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung ~ 30 % Free Float
Slide 26: Shareholder Structure (II)
Shareholder Structure (II) Total number of shares 128,000,000 E 26 Free Float Geographical Split ~21 % Austria ~20% ~14% North America Others ~32% ~13% Continental Europe UK & Ireland
Slide 27: Contact Details
Contact Details Investor Relations E 27 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 28: Disclaimer
Disclaimer E 28 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
Vienna Insurance Group — Non-Deal Roadshow (March 2009) on 6ix