Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — 9M 2009 Earnings Presentation

35 slides from Vienna Insurance's earnings presentation, Nov 10, 2009

  1. Slide 1: V.I.G. – remaining on track to deliver consistent results

    V.I.G. – remaining on track to deliver consistent results 9M 2009 results telephone conference 10 November 2009

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics 2 Presenting Team Topics ƒ Martin Simhandl, CFO ƒ Financial Highlights p.3 ƒ Peter Hagen, Member of the ƒ P&L and Balance Sheet p.7 Managing Board ƒ Appendix p.19 ƒ Roland Gröll, Head of Group Accounting ƒ Thomas Schmee, Head of Investor Relations

  3. Slide 3: Financial Highlights

    Vienna Insurance Group – 9M 2009 results Financial Highlights

  4. Slide 4: 9M 2009 Highlights

    9M 2009 Highlights V.I.G. with steady solid performance during 3 quarters 4 ƒ EUR 341mn PBT – stable performance ƒ In a difficult economic period ƒ Combined ratio (net) stable at V.I.G. focuses on profitable 96.2% despite unfavourable growth weather conditions in Q2 and Q3 - 4% premium growth exclud

  5. Slide 5: Financial Highlights (I)

    9M 2009 Financial Highlights (I) 9M PBT yoy above level of excellent year 2007 5 GWP Profit before Tax 541 1.5% -16.3% 7,899 6,912 437 407 5,882 6,018 6,106 321 324 341 5,032 2006 2007 2008 9M 07 9M 08 9M 09 2006 2007 2008 9M 07 9M 08 9M 09 IFRS IFRS Net Profit after Tax and Minorities Combined Rati

  6. Slide 6: Financial Highlights (II)

    9M 2009 Financial Highlights (II) 6 EPS ROE before Tax (%) * 18.0 3.41* 3.43 17.6 16.6* 3.18 2.98 14.8 14.3* 2.74* 2.48 10.2* 2006 2007 2008 9M 07 9M 08 9M 09 2006 2007 2008 9M 07 9M 08 9M 09 * Diluted for SPO 2008 IFRS * Diluted for SPO 2008 IFRS

  7. Slide 7: P&L and Balance Sheet Details

    Vienna Insurance Group – 9M 2009 results P&L and Balance Sheet Details

  8. Slide 8: Income Statement

    9M 2009 Income Statement IFRS (€mn) 8 9M 2009 9M 2008 +/-% 1. Gross premiums written 6,106.0 6,017.8 1.5 2. Net earned premiums 5,374.3 5,169.1 4.0 3. Financial result 727.2 806.2 -9.8 4. Other income 85.6 42.7 >100 Total income 6,187.0 6,018.0 2.8 6. Expenses for claims and insurance benefits -4,41

  9. Slide 9: Balance Sheet

    9M 2009 Balance Sheet IFRS (€mn) 9 9M 2009 YE 2008 +/- % Intangible assets 2,007 1,649 21.7 Investments 26,048 24,548 6.1 Unit- and index-linked investments 4,393 3,602 22.0 Reinsurers’ share in underwriting provisions 1,172 1,222 -4.1 Receivables 1,710 1,500 14.0 Deferred tax assets 148 131 12.6 Ot

  10. Slide 10: P&L Major Items – Gross Written Premiums (I)

    9M 2009 P&L Major Items – Gross Written Premiums (I) Premium development affected by weak CEE currencies (€mn) 10 GWP Non-life GWP Life Total FX development 9M 09 vs 9M 08 (vs. €; average exchange rates) 9M 2009 9M 2008 +/-% 9M 2009 9M 2008 +/-% 9M 2009 9M 2008 +/-% Austria 1,536.4 1,520.8 1.0% 1,46

  11. Slide 11: P&L Major Items – Gross Written Premiums (II)

    9M 2009 P&L Major Items – Gross Written Premiums (II) Stable premiums, supported by new consolidations1 11 ƒ Group GWP show steady development ƒ Austria: In Life, inclusion of s Versicherung offsets ongoing Development of s Versicherung Group weak single premiums; current premiums flat in Q3; in P&C

  12. Slide 12: P&L Major Items – Expenses for Claims Incurred

    9M 2009 P&L Major Items – Expenses for Claims Incurred Loss ratio up due to higher claims in CEE and floods in A, CZ 12 ƒ Group loss ratio (net) at 65.9% (64.2% in 9M ƒ Poland increasing by 6.3% pts to 63.4% due to 2008, 65.1% in HY09) increase of reserves as a consequence of legal ƒ Austrian loss r

  13. Slide 13: P&L Major Items – Operating Expenses

    9M 2009 P&L Major Items – Operating Expenses Cost ratio down as a result of savings programmes 13 ƒ Group cost ratio (net) decreasing by 1.5% pts ƒ Poland showing lower cost ratio at 37.2% to reach 30.4% (9M 08: 41.7%) thanks to lower administration costs as well as abolition of ƒ Cost ratio in Aust

  14. Slide 14: P&L Major Items – Financial Result

    9M 2009 P&L Major Items – Financial Result Sound financial result (€’000) 14 Income P&C Life Health Total in € '000 9M 2009 9M 2008 9M 2009 9M 2008 9M 2009 9M 2008 9M 2009 9M 2008 Current income 132,321 136,980 808,070 693,430 28,032 25,623 968,423 856,033 Income from appreciations 8,260 5,592 55,10

  15. Slide 15: Investment Split

    9M 2009 Investment Split V.I.G. follows a prudent investment approach 15 Portfolio Overview Current Investment Strategy +6.1% € 26.0bn € 24.6bn ~ 5% Cash & Deposits ~ 1% Alternatives ~ 7% ~ 3% Affiliated Companies Further investments into high quality ~ 2% ~ 5% ~ 15% 1 sovereign bonds Loans ~ 19% ~

  16. Slide 16: Development of Bond Portfolio

    Development of Bond Portfolio 16 By Issuer By Rating 6% 2% 2% 7% 7% 9% 45% 39% 49% 49% 14% 16% 21% 20% 40% 33% 21% 20% YE 2008 9M 2009 YE 2008 9M 2009 Government 1 Pfandbriefe/Covered Bonds AAA AA A BBB Other Financials Corporates 1: Government and government guaranteed

  17. Slide 17: Shareholders' Equity

    9M 2009 Shareholders’ Equity Shareholders’ equity supports strong capitalisation 17 Change in Group Shareholders’ Equity (€mn) 280.9 -174.6 4,682.9 170.6 250.0 4,138.8 20.7 -3.5 Increase of 13.1% in 9M 2009 Equity as of YE Currency Changes in Capital increase AFS unrealised Profit for the Dividend E

  18. Slide 18: Performance/Outlook

    Performance/Outlook Economic uncertainty and market volatility constrain forecasts 18 Development of 9M profits vs. YE Outlook Profit before Taxes (€mn) ƒ Management expects a fairly 541 smooth development for the rest 9M FY of 2009 unless there are 437 unexpected surprises in the 407 markets 341 32

  19. Slide 19: Appendix

    Vienna Insurance Group – 9M 2009 results Appendix

  20. Slide 20: P&L – Business Segments: Property & Casualty

    9M 2009 P&L – Business Segments Property & Casualty, IFRS (€mn) 20 9M 2009 9M 2008 +/-% 1. Gross premiums written 3,343.3 3,379.5 -1.1 2. Net earned premiums 2,625.6 2,545.4 3.2 3. Financial result 167.3 234.0 -28.5 4. Other income 53.6 28.1 90.9 Total income 2,846.5 2,807.5 1.4 6. Expenses for clai

  21. Slide 21: P&L – Business Segments: Life

    9M 2009 P&L – Business Segments Life, IFRS (€mn) 21 9M 2009 9M 2008 +/-% 1. Gross premiums written 2,521.0 2,401.8 5.0 2. Net earned premiums 2,509.1 2,389.4 5.0 3. Financial result 555.4 564.2 -1.6 4. Other income 31.9 14.6 >100 Total income 3,096.3 2,968.2 4.3 6. Expenses for claims and insurance

  22. Slide 22: P&L – Business Segments: Health

    9M 2009 P&L – Business Segments Health, IFRS (€mn) 22 9M 2009 9M 2008 +/-% 1. Gross premiums written 241.7 236.6 2.2 2. Net earned premiums 239.6 234.2 2.3 3. Financial result 4.6 8.0 -43.0 4. Other income 0.1 0.0 62.5 Total income 244.2 242.3 0.8 6. Expenses for claims and insurance benefits -199.3

  23. Slide 23: P&L - Split by Regions (I)

    9M 2009 P&L - Split by Regions (I) Regional segments, IFRS (€mn) 23 Austria Czech Republic 9M 2009 9M 2008 +/-% 9M 2009 9M 2008 +/-% 1. Gross premiums written 3,005.6 2,959.4 1.6 1,198.5 1,006.7 19.1 2. Net earned premiums 2,652.1 2,582.5 2.7 1,026.7 815.1 26.0 3. Financial result 543.7 648.3 -16.1

  24. Slide 24: P&L - Split by Regions (II)

    9M 2009 P&L - Split by Regions (II) Regional segments, IFRS (€mn) 24 Slovakia Poland Romania 9M 2009 9M 2008 +/-% 9M 2009 9M 2008 +/-% 9M 2009 9M 2008 +/-% 1. Gross premiums written 469.4 422.8 11.0 405.8 609.1 -33.4 455.9 494.8 -7.9 2. Net earned premiums 411.8 358.1 15.0 368.7 564.7 -34.7 414.6 42

  25. Slide 25: P&L - Split by Regions (III)

    9M 2009 P&L - Split by Regions (III) Regional segments, IFRS (€mn) 25 Other CEE 1 Other TOTAL 9M 2009 9M 2008 +/-% 9M 2009 9M 2008 +/-% 9M 2009 9M 2008 +/-% 1. Gross premiums written 418.8 353.9 18.3 152.0 171.0 -11.1 6,106.0 6,017.8 1.5 2. Net earned premiums 350.4 277.9 26.1 149.9 147.5 1.6 5,374.

  26. Slide 26: Results by Country

    9M 2009 Results by Country IFRS (€mn) 26 GWP Non-Life Life GWP GWP Total Profit before Taxes Net Combined Ratio 9M 2009 9M 2008 9M 2009 9M 2008 9M 2009 9M 2008 9M 2009 9M 2008 9M 2009 9M 2008 Austria 1,536.4 1,520.8 1,469.2 1,438.6 3,005.6 2,959.4 184.2 241.4 96.3% 93.3% Czech Rep. 782.8 752.0 415.7

  27. Slide 27: Change in Group Shareholders' Equity

    Change in Group Shareholders‘ Equity IFRS (€‘000) 27 1.1. - 30.09.2009 1.1. - 30.09.2008 Equity as of 1 January 4,138,790 2,615,563 Exchange rate changes 20,720 39,237 Changes in scope of consolidation -3,452 42,810 Capital increase 250,000 1,343,078 Unrealised gains and losses from financial 170,56

  28. Slide 28: Premium Portfolio

    Premium Portfolio Basis of business origination substantially widened 28 GWP by Geography 9M 06 GWP by Geography 9M 09 Other CEE Other 3.7% Other 3.5% Other CEE Romania 2.5% 6.9% 3.9% Poland Romania 5.4% 7.5% Austria Austria Slovakia 59.0% Poland 49.2% 6.6% 6.6% Czech Slovakia Republic 7.7% 17.9% Cz

  29. Slide 29: Life Insurance Premium Split

    Life Insurance Premium Split IFRS (€mn) 29 Premiums written - direct business 9M 2009 9M 2008 +/- % Regular premiums 1,588.3 1,356.7 17.1% Single premiums 921.2 1,037.7 -11.2% Total premiums written - direct business 2,509.5 2,394.4 4.8% thereof: Policies with profit participation 1,383.1 1,347.1 2.

  30. Slide 30: Q3 2009 Income Statement

    Q3 2009 Income Statement IFRS (€mn) 30 Q3 2009 Q3 2008 +/-% 1. Gross premiums written 1,854.5 1,802.7 2.9 2. Net earned premiums 1,761.2 1,697.8 3.7 3. Financial result 255.6 187.5 36.3 4. Other income 23.6 12.0 96.7 Total income 2,040.4 1,897.3 7.5 6. Expenses for claims and insurance benefits -1,4

  31. Slide 31: Exchange Rates

    9M 2009 Exchange Rates National currency unit per EUR 31 9M 2009 9M 2008 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 7.2580 7.3620 7.2365 7.2556 Estonia EUR/EEK 15.6466 15.6466 - - Liechtenstein EUR/CHF 1.5078 1.5

  32. Slide 32: Shareholder Structure (I)

    Shareholder Structure (I) Total number of shares 128,000,000 E 32 Shareholder Structure ~ 30 % Free Float ~70 % Wiener Städtische Wechselseitige Versicherungsanstalt- Vermögensverwaltung

  33. Slide 33: Shareholder Structure (II)

    Shareholder Structure (II) Total number of shares 128,000,000 E 33 Free Float Geographical Split ~27 % Austria ~15% Others ~12% North America ~10% UK & Ireland ~36% Continental Europe

  34. Slide 34: V.I.G. Share & Contact Details

    V.I.G. Share & Contact Details Investor Relations 34 V.I.G. Share Investor Relations Vienna Insurance Group ƒ Number of common shares Schottenring 30, 1010 Vienna E-Mail: [email protected] 128mn www.vig.com/ir ƒ ISIN AT0000908504 ƒ Thomas Schmee ƒ Stock exchange listing Tel. +43 (0)50 350 -

  35. Slide 35: Disclaimer

    Disclaimer 35 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 shall

Vienna Insurance Group — 9M 2009 Earnings Presentation on 6ix