Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — 9M 2011 Earnings Presentation
35 slides from Vienna Insurance's earnings presentation, Nov 15, 2011
Slide 1: Strong performance maintained
Strong performance maintained 9M 2011 results telephone conference Vienna, 15 November 2011
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. 8 Board Outlook and Dividend p. 20 Roland Gröll, Head of Group Finance and Accounting Appendix p. 21 Nina Higatzberger, Investor Relations 2
Slide 3: Highlights
Highlights Vienna Insurance Group – 9M 2011 results
Slide 4: VIG – 9M Highlights
VIG – 9M Highlights Stable performance HIGHLIGHTS VIG 9M results in line with guidance Strong results in line with management's strategy of providing steady long-term earnings growth CEE share of both profit and premiums exceeds 50% Performance influenced by adverse financial market conditions and w
Slide 5: 9M 2011 Performance Indicators
9M 2011 Performance Indicators HIGHLIGHTS € 414.1 mn PBT, up by 9.6% Contribution from CEE >50% Combined ratio (net) at 97.2%, 12.5% premium growth in CEE, down from 98.2% at 9M 2010, VIG – 9M 11 mainly from life business in CZ in line with YE 2011 target and PL, and non-life in PL Regular premiums
Slide 6: 9M 2011 Financial Highlights (I)
9M 2011 Financial Highlights (I) PBT increase driven by CEE performance HIGHLIGHTS GWP (€mn) Profit before Tax (€mn) 8.593 +4.0% 541 7.899 8.019 508 +9.6% 6.802 441 6.538 414 6.106 378 341 2008 2009 2010 9M 09 9M 10 9M 11 2008 2009 2010 9M 09 9M 10 9M 11 Net Profit after Tax and Minorities (€mn) Com
Slide 7: 9M 2011 Financial Highlights (II)
9M 2011 Financial Highlights (II) HIGHLIGHTS EPS (€)1 ROE before Tax (%) 3.32 2.95 2.65 2.72 14.3 2.40 2.49 10.5 10.2 10.6 11.0 10.0 2008 2009 2010 9M 09 9M 10 9M 11 2008 2009 2010 9M 09 9M 10 9M 11 1: annualised values net of hybrid interest 7
Slide 8: P&L and Balance Sheet Details
P&L and Balance Sheet Details Vienna Insurance Group – 9M 2011 results
Slide 9: 9M 2011 Income Statement
9M 2011 Income Statement P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn 9M 2011 9M 2010 +/-% 1. Gross premiums written 6,802.1 6,538.3 4.0 2. Net earned premiums 6,077.0 5,919.4 2.7 3. Financial result 1 798.6 895.7 -10.8 4. Other income 73.6 109.0 -32.5 Total income 6,949.1 6,924.1 0.4 6. Expenses fo
Slide 10: 9M 2011 Balance Sheet
9M 2011 Balance Sheet P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn 30.9. 2011 31.12.2010 +/-% Intangible assets 2,068 2,104 -1.7 Investments 27,815 28,160 -1.2 Unit- and index-linked investments 5,483 5,479 0.1 Reinsurers’ share in underwriting provisions 1,218 1,118 8.9 Receivables 1,705 1,681 1.4
Slide 11: 9M 2011 P&L – Gross Written Premiums
9M 2011 P&L– Gross Written Premiums P&L AND BALANCE Growth with different dynamics by lines and markets (€mn) SHEET DETAILS Austria: motor stabilising, sound non- €mn GWP Non-life GWP Life Total motor growth; weak life single 9M 2011 9M 2010 +/-% 9M 2011 9M 2010 +/-% 9M 2011 9M 2010 +/-% premiums du
Slide 12: 9M 2011 – Expenses for Claims Incurred
9M 2011 – Expenses for Claims Incurred P&L AND BALANCE Loss ratio improving due to absence of NatCat events SHEET DETAILS % Claims Ratio Group loss ratio (net) down by 0.8% pts 9M 2011 9M 2010 +/- %-pts Austria and Czech Republic recorded loss ratio Austria 66.4 67.6 -1.2 down by 1.2% pts and 2.8% p
Slide 13: 9M 2011 – Acquisition and Administrative Expenses
9M 2011 – Acquisition and Administrative Expenses P&L AND BALANCE Cost ratio fairly stable SHEET DETAILS % Cost Ratio Group cost ratio (net) decreased by 0.2% pts 9M 2011 9M 2010 +/- %-pts Slight reduction of cost ratio in Austria due to Austria 28.2 29.2 -1.0 lower admin expenses Czech Rep. 28.6 28
Slide 14: 9M 2011 P&L Major Items – Financial Result
9M 2011 P&L Major Items – Financial Result P&L AND BALANCE Lower appreciations and income from disposals SHEET DETAILS Income P&C Life Health Total in € '000 9M 2011 9M 2010 9M 2011 9M 2010 9M 2011 9M 2010 9M 2011 9M 2010 Current income 376,075 272,906 677,095 672,297 26,787 28,292 1,079,957 973,495
Slide 15: 9M 2011 Investment Split
9M 2011 Investment Split P&L AND BALANCE Investments incl. cash and cash equivalents grow by €370mn or 1.3% SHEET DETAILS Investment portfolio including cash and Investment portfolio cash equivalents € 28.2bn -1.2% € 27.8bn € 28.6bn +1.3% € 28.9bn ~ 4% Deposits ~ 4% ~ 5% Deposits and cash ~ 8% ~ 1%
Slide 16: Development of Bond Portfolio
Development of Bond Portfolio P&L AND BALANCE Rating upgrades in CEE improve structure SHEET DETAILS By Issuer By Rating 3% 2% 8% 8% 10% 12% 27% 30% 31% 49% 11% 11% 32% 17% 51% 54% 21% 23% YE 2010 9M 2011 YE 2010 9M 2011 Government 1 Pfandbriefe/Covered Bonds AAA AA A BBB Other Financials Corporates
Slide 17: PIIGS – Government Bonds
PIIGS – Government Bonds P&L AND BALANCE SHEET DETAILS €mn Book value Portugal - 1 Ireland 52 Italy 2 13 1 Greece 21 Spain 7 Total 93 ~70% ~70% Approximately 0.3% of total investments 1: Net of YE 2010 impairments of about 20%; Q3 11: Greece additional impairment of 30%; 2: Italy impaired by 10% in
Slide 18: Composition of Real Estate
Composition of Real Estate P&L AND BALANCE Austrian housing societies do not represent typical real estate risk SHEET DETAILS By Issuer Real Estate (€mn) Nearly 70% (€2.9bn) of real estate with ~8% ~8% regulated Austrian housing societies Entities are governed by a specific legal ~22% ~22% framework
Slide 19: 9M 2011 Shareholders’ Equity
9M 2011 Shareholders’ Equity P&L AND BALANCE Shareholders’ equity supports strong capitalisation SHEET DETAILS Change in Group Shareholders’ Equity (€mn) 336.4 -177.3 5,053.6 5,029.6 -21.1 -1.4 -112.6 Increase of 4.8% over YE 2010 Equity as of YE 2010 Currency changes Changes in AFS unrealised gains
Slide 20: Outlook and Dividend
Outlook/Dividend Outlook and Dividend VIG‘s Path of Profitability (€mn) Development of Dividend € 540 € 256.0mn € 508 € 437 € 441 € 128.0mn € 321 € 115.5mn € 115.2mn € 86.1mn € 1.10 € 0.90 € 1.00 € 0.82 € 0.90 € 1.10 YE 2006 YE 2007 YE 2008 YE 2009 YE 2010 YE 2006 YE 2007 YE 2008 YE 2009 YE 2010 * O
Slide 21: Appendix
Appendix Vienna Insurance Group – 9M 2011 results
Slide 22: 9M 2011 P&L – Business Segments (Property & Casualty)
9M 2011 P&L – Business Segments Property & Casualty, IFRS (€mn) APPENDIX €mn 9M 2011 9M 2010 +/-% 1. Gross premiums written 3,604.4 3,353.0 7.5 2. Net earned premiums 2,902.3 2,748.4 5.6 3. Financial result 184.4 142.0 29.8 4. Other income 43.1 30.7 40.3 Total income 3,129.8 2,921.2 7.1 6. Expenses
Slide 23: 9M 2011 P&L – Business Segments (Life)
9M 2011 P&L – Business Segments Life, IFRS (€mn) APPENDIX €mn 9M 2011 9M 2010 +/-% 1. Gross premiums written 2,927.8 2,939.6 -0.4 2. Net earned premiums 2,909.1 2,928.4 -0.7 3. Financial result 590.6 731.1 -19.2 4. Other income 30.4 78.2 -61.1 Total income 3,530.2 3,737.7 -5.6 6. Expenses for claims
Slide 24: 9M 2011 P&L – Business Segments (Health)
9M 2011 P&L – Business Segments Health, IFRS (€mn) APPENDIX €mn 9M 2011 9M 2010 +/-% 1. Gross premiums written 269.9 245.8 9.8 2. Net earned premiums 265.6 242.6 9.5 3. Financial result 23.6 22.6 4.1 4. Other income 0.0 0.0 n.a. Total income 289.1 265.2 9.0 6. Expenses for claims and insurance benef
Slide 25: 9M 2011 P&L – Split by Regions (I)
9M 2011 P&L – Split by Regions (I) Regional segments, IFRS (€mn) APPENDIX €mn Austria Czech Republic 9M 2011 9M 2010 +/-% 9M 2011 9M 2010 +/-% 1. Gross premiums written 3,122.6 3,193.5 -2.2 1,404.9 1,290.1 8.9 2. Net earned premiums 2,717.3 2,844.7 -4.5 1,287.9 1,182.9 8.9 3. Financial result 558.4
Slide 26: 9M 2011 P&L – Split by Regions (II)
9M 2011 P&L – Split by Regions (II) Regional segments, IFRS (€mn) APPENDIX €mn Slovakia Poland Romania 9M 2011 9M 2010 +/-% 9M 2011 9M 2010 +/-% 9M 2011 9M 2010 +/-% 1. Gross premiums written 498.7 478.5 4.2 742.8 534.5 39.0 398.9 396.6 0.6 2. Net earned premiums 452.8 436.1 3.8 683.5 489.4 39.7 382
Slide 27: 9M 2011 P&L – Split by Regions (III)
9M 2011 P&L – Split by Regions (III) Regional segments, IFRS (€mn) APPENDIX €mn Remaining TOTAL 9M 2011 9M 2010 +/-% 9M 2011 9M 2010 +/-% 1. Gross premiums written 634.2 645.2 -1.7 6,802.1 6,538.3 4.0 2. Net earned premiums 553.2 593.8 -6.8 6,077.0 5,919.4 2.7 3. Financial result 55.8 53.2 4.9 798.6
Slide 28: 9M 2011 Results by Country
9M 2011 Results by Country IFRS (€mn) APPENDIX €mn GWP Non-Life Life GWP GWP Total Profit before Taxes Net Combined Ratio 9M 2011 9M 2010 9M 2011 9M 2010 9M 2011 9M 2010 9M 2011 9M 2010 9M 2011 9M 2010 Austria 1,661.0 1,524.4 1,461.6 1,669.0 3,122.6 3,193.5 207.3 180.6 94.6% 96.9% Czech Rep. 781.6 7
Slide 29: Change in Group Shareholders’ Equity
Change in Group Shareholders’ Equity IFRS (€ ‘000) APPENDIX 1.1. - 30.09.2011 1.1. - 30.09.2010 Equity as of 1 January 5,029,647 4,628,573 Exchange rate changes -21,057 34,760 Changes in scope of consolidation -1,432 2,632 Capital increase - - Unrealised gains and losses from -112,631 106,893 financ
Slide 30: Life Insurance Premium Split
Life Insurance Premium Split IFRS (€mn) APPENDIX Premiums written - direct business 9M 2011 9M 2010 +/- % Regular premiums 1,705.0 1,636.2 4.2% Single premiums 1,212.0 1,291.2 -6.1% Total premiums written - direct business 2,917.0 2,927.4 -0.4% thereof: Policies with profit participation 1,461.5 1,4
Slide 31: 9M 2011 Exchange Rates
9M 2011 Exchange Rates National currency unit per EUR APPENDIX 9M 2011 9M 2010 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 7.4995 7.4199 7.3058 7.2618 Estonia EUR/EEK 1.0000 1.0000 15.6466 15.6466 Liechtenstein EU
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 ~22 % Others ~4% North America ~25% Continental Europe ~26% UK & Ireland ~23% 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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