Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — 9M 2010 Earnings Presentation
35 slides from Vienna Insurance's earnings presentation, Nov 9, 2010
Slide 1: Solid performance continued
Solid performance continued 9M 2010 results telephone conference Vienna, 09 November 2010
Slide 2: Presenting Team and Topics
Presenting Team and Topics Presenting Team Topics Martin Simhandl, CFO Highlights p. 3 Peter Höfinger, Member of the Managing P&L and Balance Sheet p. 7 Board Outlook p.17 Roland Gröll, Head of Group Finance Appendix p.18 and Accounting Thomas Schmee, Head of Investor Relations 2
Slide 3: Highlights
Highlights Vienna Insurance Group – 9M 2010 results
Slide 4: 9M 2010 Performance Drivers
9M 2010 Performance Drivers Trend of 1st HY continued HIGHLIGHTS € 377.7mn PBT, up by 10.9% Combined ratio (net) at 98.2% GWP up by 7.1% - different influenced by NatCat losses in VIG – 9M dynamics by business lines and markets CEE Improved financial result due to better capital markets environment
Slide 5: Financial Highlights (I)
9M 2010 Financial Highlights (I) PBT in line with forecast for full year 2010 HIGHLIGHTS GWP (€mn) Profit before Tax (€mn) 7,899 8,019 +7.1% 541 6,912 +10.9% 6,538 437 441 6,018 6,106 407 378 341 2007 2008 2009 9M 08 9M 09 9M 10 2007 2008 2009 9M 08 9M 09 9M 10 Net Profit after Tax and Minorities (€
Slide 6: Financial Highlights (II)
9M 2010 Financial Highlights (II) HIGHLIGHTS EPS (€) ROE before Tax (%) 3.43 3.41 18.0 2.98 3.03 16.6 2.66 2.74 14.3 10.0 10.2 10.6 2007 2008 2009 9M 08 9M 09 9M 10 2007 2008 2009 9M 08 9M 09 9M 10 6
Slide 7: P&L and Balance Sheet Details
P&L and Balance Sheet Details Vienna Insurance Group – 9M 2010 results
Slide 8: 9M 2010 Income Statement
9M 2010 Income Statement P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn 9M 2010 9M 2009 +/-% 1. Gross premiums written 6,538.3 6,106.0 7.1 2. Net earned premiums 5,919.4 5,374.3 10.1 3. Financial result 895.7 727.2 23.2 4. Other income 109.0 85.6 27.4 Total income 6,924.1 6,187.0 11.9 6. Expenses for
Slide 9: 9M 2010 Balance Sheet
9M 2010 Balance Sheet P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn 9M 2010 YE 2009 +/-% Intangible assets 2,039 1,975 3.2 Investments 27,676 25,894 6.9 Unit- and index-linked investments 5,293 4,628 14.4 Reinsurers’ share in underwriting provisions 1,339 1,117 19.9 Receivables 1,664 1,563 6.4 Tax re
Slide 10: P&L – Gross Written Premiums
9M 2010 P&L– Gross Written Premiums P&L AND BALANCE Growth with different dynamics by lines and markets (€mn) SHEET DETAILS Austria: competitive motor market €mn GWP Non-life GWP Life Total with lower volumes; life still benefiting 9M 2010 9M 2009 +/-% 9M 2010 9M 2009 +/-% 9M 2010 9M 2009 +/-% from
Slide 11: Expenses for Claims Incurred
9M 2010 – Expenses for Claims Incurred P&L AND BALANCE NatCat losses throughout 9M affect loss ratio SHEET DETAILS Group loss ratio (net) up by 0.9% pts % Claims Ratio Austrian loss ratio saw slight decrease by 9M 2010 9M 2009 +/- %-pts 0.4% pts due to lower claims frequency Austria 67.6 68.1 -0.4 C
Slide 12: Operating Expenses
9M 2010 – Operating Expenses P&L AND BALANCE Cost ratio up mainly due to commissions, acquisition costs and FX SHEET DETAILS Group cost ratio (net) increasing by 1.0% pts % Cost Ratio Cost ratio in Austria slightly increasing by 9M 2010 9M 2009 +/- %-pts 1.0% pts due to acquisition costs; Austria 29
Slide 13: P&L Major Items – Financial Result
9M 2010 P&L Major Items – Financial Result P&L AND BALANCE Sound financial result driven by improved markets SHEET DETAILS Income P&C Life Health Total in € '000 9M 2010 9M 2009 9M 2010 9M 2009 9M 2010 9M 2009 9M 2010 9M 2009 Current income 272,906 132,322 672,297 808,070 28,292 28,031 973,495 968,4
Slide 14: Investment Split
9M 2010 Investment Split P&L AND BALANCE VIG follows a consistent investment approach SHEET DETAILS +6.9% € 27.7bn € 25.9bn ~ 4% Cash & Deposits ~ 1% Alternatives ~ 4% ~ 2% Affiliated Companies ~ 1% ~ 3% ~ 13% Loans ~ 15% ~ 12% Real Estate ~ 13% ~ 4% Equities ~ 3% ~ 62% ~ 64% Bonds YE 2009 9M 2010 1
Slide 15: Development of Bond Portfolio
Development of Bond Portfolio P&L AND BALANCE SHEET DETAILS By Issuer By Rating 7% 3% 3% 8% 9% 10% 31% 36% 48% 48% 11% 13% 21% 18% 50% 44% 19% 21% YE 2009 9M 2010 YE 2009 9M 2010 Government 1 Pfandbriefe/Covered Bonds AAA AA A BBB Other Financials Corporates 1: Government and government guaranteed 1
Slide 16: Shareholders' Equity
9M 2010 Shareholders’ Equity P&L AND BALANCE Shareholders’ equity supports strong capitalisation SHEET DETAILS Change in Group Shareholders’ Equity (€mn) 310.3 -165.4 4,917.8 106.9 34.8 2.6 4,628.6 Increase of 6.2% over YE 2009 Equity as of YE 2009 Currency changes Changes in AFS unrealised gains Pr
Slide 17: Outlook
Outlook Expectations based on current business trends Sound financials Insurance is characterised by time lag between economic cycle and the industry’s cycle Non-life trends Non-life: current subdued volume expected to continue Motor business influenced by lower volumes (trend to smaller cars, sharp
Slide 18: Appendix
Appendix Vienna Insurance Group – 9M 2010 results
Slide 19: P&L – Business Segments: Property & Casualty
9M 2010 P&L – Business Segments Property & Casualty, IFRS (€mn) APPENDIX €mn 9M 2010 9M 2009 +/-% 1. Gross premiums written 3,353.0 3,343.3 0.3 2. Net earned premiums 2,748.4 2,625.6 4.7 3. Financial result 142.0 167.3 -15.1 4. Other income 30.7 53.6 -42.7 Total income 2,921.2 2,846.5 2.6 6. Expense
Slide 20: P&L – Business Segments: Life
9M 2010 P&L – Business Segments Life, IFRS (€mn) APPENDIX €mn 9M 2010 9M 2009 +/-% 1. Gross premiums written 2,939.6 2,521.0 16.6 2. Net earned premiums 2,928.4 2,509.1 16.7 3. Financial result 731.1 555.4 31.6 4. Other income 78.2 31.9 >100 Total income 3,737.7 3,096.3 20.7 6. Expenses for claims a
Slide 21: P&L – Business Segments: Health
9M 2010 P&L – Business Segments Health, IFRS (€mn) APPENDIX €mn 9M 2010 9M 2009 +/-% 1. Gross premiums written 245.8 241.7 1.7 2. Net earned premiums 242.6 239.6 1.2 3. Financial result 22.6 4.6 >100 4. Other income 0.0 0.1 -93.8 Total income 265.2 244.2 8.6 6. Expenses for claims and insurance bene
Slide 22: P&L – Split by Regions (I)
9M 2010 P&L – Split by Regions (I) Regional segments, IFRS (€mn) APPENDIX €mn Austria Czech Republic 9M 2010 9M 2009 +/-% 9M 2010 9M 2009 +/-% 1. Gross premiums written 3,193.5 3,005.6 6.2 1,290.1 1,198.5 7.6 2. Net earned premiums 2,844.7 2,652.1 7.3 1,182.9 1,026.7 15.2 3. Financial result 640.4 5
Slide 23: P&L – Split by Regions (II)
9M 2010 P&L – Split by Regions (II) Regional segments, IFRS (€mn) APPENDIX €mn Slovakia Poland Romania 9M 2010 9M 2009 +/-% 9M 2010 9M 2009 +/-% 9M 2010 9M 2009 +/-% 1. Gross premiums written 478.5 469.4 1.9 534.5 405.8 31.7 396.6 455.9 -13.0 2. Net earned premiums 436.1 411.8 5.9 489.4 368.7 32.7 3
Slide 24: P&L – Split by Regions (III)
9M 2010 P&L – Split by Regions (III) Regional segments, IFRS (€mn) APPENDIX €mn Other CEE Other TOTAL 9M 2010 9M 2009 +/-% 9M 2010 9M 2009 +/-% 9M 2010 9M 2009 +/-% 1. Gross premiums written 433.9 418.8 3.6 211.3 152.0 39.0 6,538.3 6,106.0 7.1 2. Net earned premiums 387.2 350.4 10.5 206.5 149.9 37.7
Slide 25: Results by Country
9M 2010 Results by Country IFRS (€mn) APPENDIX €mn GWP Non-Life Life GWP GWP Total Profit before Taxes Net Combined Ratio 9M 2010 9M 2009 9M 2010 9M 2009 9M 2010 9M 2009 9M 2010 9M 2009 9M 2010 9M 2009 Austria 1,524.4 1,536.4 1,669.0 1,469.2 3,193.5 3,005.6 180.6 184.2 96.9% 96.3% Czech Rep. 759.3 7
Slide 26: Composition of Real Estate
Composition of Real Estate APPENDIX By Issuer Real Estate (€mn) ~9% ~9% More than 60% of real estate with regulated Austrian housing societies Entities are governed by a specific legal ~29% ~27% framework Rents are subsidised by government => low vacancies Residents are VIG insurance clients 3,302 3
Slide 27: Change in Group Shareholders' Equity
Change in Group Shareholders’ Equity IFRS (€ ‘000) APPENDIX 1.1. - 30.09.2010 1.1. - 30.09.2009 Equity as of 1 January 4,628,573 4,138,790 Exchange rate changes 34,760 20,720 Changes in scope of consolidation 2,632 -3,452 Capital increase - 250,000 Unrealised gains and losses from 106,893 170,567 fi
Slide 28: Premium Portfolio
Premium Portfolio Basis of business origination substantially widened APPENDIX GWP by Geography 9M 07 GWP by Geography 9M 10 Other CEE Other Other CEE Other 5.2% 3.5% 6.6% 3.2% Romania Romania 5.9% 6.1% Poland 7.7% Poland Austria 8.2% Austria 53.9% 48.8% Slovakia 7.1% Slovakia 7.3% Czech Republic 16
Slide 29: Life Insurance Premium Split
Life Insurance Premium Split IFRS (€mn) APPENDIX Premiums written - direct business 9M 2010 9M 2009 +/- % Regular premiums 1,636.2 1,588.3 3.0% Single premiums 1,291.2 921.2 40.2% Total premiums written - direct business 2,927.4 2,509.5 16.7% thereof: Policies with profit participation 1,402.4 1,383
Slide 30: Q3 2010 Income Statement
Q3 2010 Income Statement IFRS (€mn) APPENDIX €mn Q3 2010 Q3 2009 +/-% 1. Gross premiums written 1,949.7 1,854.9 5.1 2. Net earned premiums 1,919.1 1,761.5 8.9 3. Financial result 249.1 255.6 -2.5 4. Other income 23.5 23.6 -0.2 Total income 2,191.8 2,040.7 7.4 6. Expenses for claims and insurance ben
Slide 31: Exchange Rates
9M 2010 Exchange Rates National currency unit per EUR APPENDIX 9M 2010 9M 2009 Balance Balance Country Curr. P & L EUR P & L EUR Sheet EUR Sheet EUR Bulgaria EUR/BGN 1.9558 1.9558 1.9558 1.9558 Croatia EUR/HRK 7.3058 7.2618 7.2580 7.3620 Estonia EUR/EEK 15.6466 15.6466 15.6466 15.6466 Liechtenstein
Slide 32: Shareholder Structure (I)
Shareholder Structure (I) Total number of shares 128,000,000 APPENDIX Wiener Städtische Wechselseitiger Versicherungsverein - Vermögensverwaltung – Vienna Insurance Group ~70 % Free Float ~ 30 % 32
Slide 33: Shareholder Structure (II)
Shareholder Structure (II) Free float split APPENDIX Austria ~25 % Others ~3% North America ~27% Continental Europe ~26% UK & Ireland ~19% 33
Slide 34: VIG Share & Contact Details
VIG Share & Contact Details Investor Relations APPENDIX VIG Share Investor Relations Number of common shares Vienna Insurance Group 128mn Schottenring 30, 1010 Vienna E-Mail: [email protected] ISIN AT0000908504 www.vig.com/ir Listing Thomas Schmee (Head of IR) Vienna – since 17 Oct. 1994 Te
Slide 35: 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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