Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — H1 2014 Earnings Presentation
41 slides from Vienna Insurance's earnings presentation, Aug 26, 2014
Slide 1: 6M 2014 Results Presentation
6M 2014 Results Presentation Conference call for the half-year results 2014 Vienna, 26 August 2014
Slide 2: Presenting team and topics
Presenting team and topics Presenting team Topics Martin Simhandl, CFO 6M 2014 Summary p. 3 Peter Höfinger, Member of the Managing Financial Highlights p. 4 Board P&L and Balance Sheet p. 8 Roland Gröll, Head of Group Finance and Accounting Business Lines Segments p.11 Nina Higat
Slide 3: Sound development in challenging environment
Sound development in challenging environment VIG successfully following it’s proven management principles SUMMARY Premiums of €5.0bn down by 0.9% • Premiums on a like-for-like basis1 up by 3.6% y-o-y Profit before taxes increased to €290.9mn up 41.4% • PBT of 6M 2014 effected by 50% impairment of su
Slide 4: Gross written premiums impacted by FX
Gross written premiums impacted by FX FINANCIAL CEE Remaining markets premiums excl. FX up by 9.6% HIGHLIGHTS Gross written premiums (€mn; y-o-y chg.) GWP regional split -1% y-o-y chg. 5,030 Austria 2,341 -1% 11 4,984 Health 199 197 Czech Republic 892 -1% -54 -2 Slovakia 387 3% Life 2,213 2,223
Slide 5: Profit before taxes up by 41.4%
Profit before taxes up by 41.4% FINANCIAL PBT 6M14 impacted by impairments and interest expenses HIGHLIGHTS Profit before taxes (€mn; y-o-y change) PBT regional split y-o-y chg. +41% 118 Austria 111 -1% 10 291 Czech Republic 86 -5% 32 -43 Slovakia 26 4% 206 102 Poland 34 1% Health 22 Romania 1 n
Slide 6: Good combined ratio development
Good combined ratio development FINANCIAL Administration costs decreased further by 4.2% HIGHLIGHTS CoR development (net, %) CoR 6M y-o-y countries development (net, %) -2.7pp AT 102.3 -2.6pp 99.7 99.8 97.1 93.7 CZ -5.0pp 88.7 SK 95.2 -0.7pp 6M13 94.5 Claims ratio 68.9 66.0 6M14 PL 95.5 +0.4pp 9
Slide 7: P&L and Balance Sheet Overview
P&L and Balance Sheet Overview Vienna Insurance Group – 6M 2014 Results
Slide 8: 6M 2014 – Income statement
6M 2014 – Income statement P&L AND BALANCE IFRS (€mn) SHEET OVERVIEW €mn 6M 2014 6M 2013 +/-% Gross premiums written 4,983.8 5,029.7 -0.9 Net earned premiums 4,321.5 4,407.8 -2.0 1 Financial result 551.6 593.0 -7.0 Other income 58.1 82.0 -29.1 Total income 4,931.2 5,082.8 -3.0 Expenses for claims an
Slide 9: 6M 2014 – Balance sheet
6M 2014 – Balance sheet P&L AND BALANCE IFRS (€mn) SHEET OVERVIEW €mn 30.06.2014 31.12.2013 +/-% Intangible assets 2,290 2,266 1.1 Investments 29,669 29,201 1.6 Unit- and index-linked investments 7,038 6,707 4.9 Reinsurers’ share in underwriting provisions 1,136 1,028 10.4 Receivables 1,646 1,561 5.
Slide 10: Business Line Segments
Business Line Segments Vienna Insurance Group – 6M 2014 Results
Slide 11: 6M 2014 P&L – Property & Casualty
6M 2014 P&L – Property & Casualty IFRS (€mn) MAIN SEGMENTS €mn 6M 2014 6M 2013 +/-% Gross premiums written 2,563.5 2,617.9 -2.1 Net earned premiums 1,926.7 2,022.2 -4.7 Financial result 100.8 119.2 -15.5 Other income 38.4 48.6 -21.0 Total income 2,065.9 2,190.0 -5.7 Expenses for claims and insurance
Slide 12: 6M 2014 P&L – Life
6M 2014 P&L – Life IFRS (€mn) MAIN SEGMENTS €mn 6M 2014 6M 2013 +/-% Gross premiums written 2,223.2 2,212.6 0.5 Net earned premiums 2,195.6 2,188.3 0.3 Financial result 433.0 459.2 -5.7 Other income 19.6 33.3 -41.1 Total income 2,648.1 2,680.7 -1.2 Expenses for claims and insurance benefits -2,168.8
Slide 13: 6M 2014 P&L – Health
6M 2014 P&L – Health IFRS (€mn) MAIN SEGMENTS €mn 6M 2014 6M 2013 +/-% Gross premiums written 197.1 199.1 -1.1 Net earned premiums 199.2 197.4 0.9 Financial result 17.9 14.6 22.2 Other income 0.1 0.1 19.9 Total income 217.2 212.1 2.4 Expenses for claims and insurance benefits -161.3 -166.8 -3.3 Acqu
Slide 14: Regional Split
Regional Split Vienna Insurance Group – 6M 2014 Results
Slide 15: Austria – impacted by Hypo and Verkehrsbüro
Austria – impacted by Hypo and Verkehrsbüro Premiums in P&C up 3.3% excl. Italian business of Donau REGIONAL SPLIT GWP for 6M 2014 (€mn) P&C GWP direct business split 1 -1.4% 2,374 MTPL 2,341 19% (22%) P&C 1,146 1,121 13% Casco Health 178 184 (13%) 68% (65%) Life 1,050 1,035 Remaining 6M13 6M14
Slide 16: Czech Republic – strong development in P&C
Czech Republic – strong development in P&C GWPs adjusted for FX effects up by 6.0% REGIONAL SPLIT GWP for 6M 2014 (€mn) P&C GWP direct business split 1 -0.8% 899 892 MTPL 30% P&C 484 443 (29%) 50% Remaining (51%) 449 20% Life 415 (20%) Casco 6M13 6M14 P&L: P&C business (€mn) P&L: Life busine
Slide 17: Slovakia – solid premium growth
Slovakia – solid premium growth Sound profit development with overall 4.3% increase y-o-y REGIONAL SPLIT GWP for 6M 2014 (€mn) P&C GWP direct business split 1 +3.3% 375 387 Remaining 182 34% P&C 179 (34%) 41% MTPL (41%) Life 196 205 25% (25%) Casco 6M13 6M14 P&L: P&C business (€mn) P&L: Life
Slide 18: Poland – profit increase in life
Poland – profit increase in life Premium growth of 4.4% excl. STEP REGIONAL SPLIT GWP for 6M 2014 (€mn) P&C GWP direct business split 1 -7.3% 610 565 MTPL 32% P&C 294 (32%) 296 Remaining 44% (42%) Life 316 269 24% (25%) Casco 6M13 6M14 P&L: P&C business (€mn) P&L: Life business (€mn) 6M14 Y-
Slide 19: Romania – ongoing challenging
Romania – ongoing challenging Positive results contribution of Romania driven by life business REGIONAL SPLIT GWP for 6M 2014 (€mn) P&C GWP direct business split 1 -15.8% 196 165 Remaining 33% 38% MTPL (37%) P&C 154 (29%) 138 29% Life 42 28 (35%) 6M13 6M14 Casco P&L: P&C business (€mn) P&L:
Slide 20: Remaining markets – solid development
Remaining markets – solid development Premium growth of 12.5% excluding FX movements REGIONAL SPLIT GWP for 6M 2014 (€mn) P&C GWP direct business split 1 +6.3% MTPL 564 531 21% (21%) 319 P&C 321 60% 19% 13 Health 21 Remaining (58%) (21%) Casco Life 189 232 6M13 6M14 P&L: P&C business (€mn) P
Slide 21: Investments and Equity
Investments and Equity Vienna Insurance Group – 6M 2014 Results
Slide 22: 6M 2014 – Financial result decreased by 7.0%
6M 2014 – Financial result decreased by 7.0% Impact of impairments of Hypo Alpe Adria bonds and Verkehrsbüro INVESTMENTS Income P&C Life Health Total in € '000 6M 2014 6M 2013 6M 2014 6M 2013 6M 2014 6M 2013 6M 2014 6M 2013 Current income 148,326 186,102 431,349 448,101 21,278 20,462 600,953 654,665
Slide 23: 6M 2014 – Investment split
6M 2014 – Investment split Well diversified bond portfolio INVESTMENTS 6M 2014: Total € 30.5bn Bond portfolio by rating1 Other 6% 5% 12% 12% BBB 6.7% 3.9% A 38% 38% 0.0% 10.3% AA 28% 29% AAA 16% 16% 5.8% 12M 2013 6M 2014 3.7% Bond portfolio by issuer 69.6% Corporates 13% 14% Financials 23% 22%
Slide 24: 6M 2014 – Strong equity and solvency position
6M 2014 – Strong equity and solvency position Shareholders’ equity increase driven by profit and unrealised gains EQUITY Change in Group Shareholders’ Equity (€mn) +5% 221 216 6 2 5,251 5,020 -12 -200 -3 Equity as Profit for Currency AFS unrealised Changes in Dividend IAS19 At equity Equity as of
Slide 25: S&P rating confirmed in July 2014: A+/stable/--
S&P rating confirmed in July 2014: A+/stable/-- VIG remains the best rated company in the ATX RATING Anchor: aa- Modifiers: -1 Business Risk Profile: Very Strong ERM and Management: 0 „Very strong competitive position“ „Enterprise risk management is adequate with strong „Sound diversificat
Slide 26: Appendix
Appendix Vienna Insurance Group – 6M 2014 Results
Slide 27: 6M 2014 Key financials
6M 2014 Key financials Overview APPENDIX Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 407 426 96.8 96.7 100.6 96.6 99.8 97.1 235 232 213 141 2011 2012 2013 6M12 6M13 6M14 2011 2012 2013 6M12 6M13 6M14 EPS1 (€) ROE before Taxes (%) 3.31 3.18 11.8 11.3 3.01 11.1 2.87 10.5
Slide 28: 6M 2014 – Gross written premiums by region
6M 2014 – Gross written premiums by region Premium decrease of overall 0.9% y-o-y impacted by FX effects APPENDIX €mn GWP P&C GWP Life GWP Health GWP Total 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% Austria 1,121.4 1,145.8 -2.1% 1,035.1 1,049.9 -1.4% 184.1 17
Slide 29: 6M 2014 P&L – Split by regions (I)
6M 2014 P&L – Split by regions (I) Regional markets overview, IFRS (€mn) APPENDIX €mn Austria Czech Republic Slovakia 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% Gross premiums written 2,340.6 2,373.7 -1.4 891.5 898.4 -0.8 387.3 375.0 3.3 Net earned premiums 1,788.5 1,810.4 -1.2 7
Slide 30: 6M 2014 P&L – Split by regions (II)
6M 2014 P&L – Split by regions (II) Regional markets overview, IFRS (€mn) APPENDIX €mn Poland Romania Remaining 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% Gross premiums written 565.3 609.7 -7.3 165.2 196.3 -15.8 564.5 530.9 6.3 Net earned premiums 453.1 486.5 -6.9 87.9 158.3 -44
Slide 31: 6M 2014 P&L – Split by regions (III)
6M 2014 P&L – Split by regions (III) Regional markets overview, IFRS (€mn) APPENDIX €mn Central Functions Consolidation TOTAL 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% Gross premiums written 684.8 677.5 1.1 -615.4 -632.0 n.a. 4,983.8 5,029.7 -0.9 Net earned premiums 563.4 568.1
Slide 32: 6M 2014 – Results by country (I)
6M 2014 – Results by country (I) IFRS (€mn) APPENDIX €mn GWP P&C GWP Life GWP Health GWP Total 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-% Austria 1,121.4 1,145.8 -2.1% 1,035.1 1,049.9 -1.4% 184.1 177.9 3.5% 2,340.6 2,373.7 -1.4% Czech Rep. 442.7 483.9 -8.5% 4
Slide 33: 6M 2014 – Results by country (II)
6M 2014 – Results by country (II) IFRS (€mn) APPENDIX €mn Profit before Taxes Net Combined Ratio 6M 2014 6M 2013 +/-% 6M 2014 6M 2013 +/-pp Austria 110.7 112.3 -1.4% 99.7% 102.3% -2.6 Czech Rep. 85.8 90.2 -4.9% 88.7% 93.7% -5.0 Slovakia 25.7 24.6 4.3% 94.5% 95.2% -0.7 Poland 33.7 33.2 1.4% 96.0% 95.
Slide 34: 6M 2014 – P&C Claims and cost ratio details
6M 2014 – P&C Claims and cost ratio details APPENDIX Claims ratio 6M y-o-y regional development (net, %) Remarks for claims incurred 6M13 6M14 Austria: claims ratio down 2.1pp driven by Donau Versicherung -17.9 (in 6M 2013 reserve strengthening for Italian branch office -2.1 business) -3.8 -3.
Slide 35: 6M 2014 – Life insurance premium split
6M 2014 – Life insurance premium split IFRS (€mn) APPENDIX Premiums written - direct business 6M 2014 6M 2013 +/- % Regular premiums 1,179 1,186 -0.6% Single premiums 1,037 1,019 1.7% Total premiums written - direct business 2,216 2,206 0.4% thereof: Policies with profit participation 975 1,050 -7.2
Slide 36: Q2 2014 – Income Statement
Q2 2014 – Income Statement IFRS (€mn) APPENDIX €mn Q2 2014 Q2 2013 +/-% Gross premiums written 2,252.6 2,324.4 -3.1 Net earned premiums 2,109.0 2,209.0 -4.5 Financial result 280.0 322.8 -13.3 Other income 30.5 39.7 -23.2 Total income 2,419.4 2,571.5 -5.9 Expenses for claims and insurance benefits -1
Slide 37: 6M 2014 – Exchange rates
6M 2014 – Exchange rates APPENDIX 6M 2014 6M 2013 Balance Balance Country Curr. P & L EUR P & L EUR Sheet EUR Sheet EUR Albania EUR/ALL 140.2600 140.2106 140.9600 140.2023 Belarus EUR/BYR 13,890.0000 13,529.0055 11,460.0000 11,360.1105 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.95
Slide 38: VIG Share (I)
VIG Share (I) APPENDIX Current analyst recommendation split Share price development 1H 2014 Sell Buy High EUR 40.070 Low EUR 33.800 Price as of 30 Jun EUR 39.090 Average daily volume EUR 2.9 mn Market cap. EUR 5.0 bn Development YTD % 7.9 Hold VIG compared to ATX and MSCI Europe Insurance 115
Slide 39: VIG Share (II)
VIG Share (II) APPENDIX General information Shareholder structure Number of common shares: 128mn Wiener Städtische Wechselseitiger ISIN: AT0000908504 Versicherungsverein - Vermögensverwaltung – Free Float Listings: Vienna Insurance Group ~30 % Vienna – since 17 Oct. 1994 ~70 % Prague – since 5
Slide 40: Contact details
Contact details Investor Relations APPENDIX Financial calendar 2014 Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna Preliminary unconsolidated E-Mail: [email protected] 29 Jan. 2014 premiums 2013 www.vig.com/ir 10 April 2014 Results and EV for the
Slide 41: 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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