Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — H1 2011 Earnings Presentation
37 slides from Vienna Insurance's earnings presentation, Aug 18, 2011
Slide 1: Steady upward performance
Steady upward performance 6M 2011 results telephone conference Vienna, 18 August 2011
Slide 2: Presenting Team and Topics
Presenting Team and Topics Presenting Team Topics Peter Hagen, Member of the Managing Highlights p. 3 Board P&L and Balance Sheet p. 10 Peter Höfinger, Member of the Managing Board Outlook and Dividend p. 22 Roland Gröll, Head of Group Finance Appendix p. 23 and Accounting Thomas Schmee, Head of Inv
Slide 3: Highlights
Highlights Vienna Insurance Group – 6M 2011 results
Slide 4: VIG – 6M Highlights
VIG – 6M Highlights Preparing f or future Stable performance take-off VIG half year results in line with management guidance for full year 2011 Results underlining sustainable upward performance compared with major European peers, supporting management's strategy of providing steady long-term earnin
Slide 5: 6M 2011 Performance Drivers
6M 2011 Performance Drivers HIGHLIGHTS € 282.2 mn PBT, up by 10.4% Contribution from CEE >50% Combined ratio (net) at 97.1%, 14.4% premium growth in CEE, down from 98.3% at 6M 2010, VIG – 6M 11 mainly from life business in CZ in line with YE 2011 target and PL, and non-life in PL Regular premiums (e
Slide 6: 6M 2011 Financial Highlights (I)
6M 2011 Financial Highlights (I) PBT increase driven by CEE performance HIGHLIGHTS GWP (€mn) Profit before Tax (€mn) 8,593 541 7,899 8,019 508 +3.1% 441 +10.4% 4,589 4,729 282 4,251 256 230 2008 2009 2010 6M 09 6M 10 6M 11 2008 2009 2010 3M 09 6M 10 6M 11 Net Profit after Tax and Minorities (€mn) Co
Slide 7: 6M 2011 Financial Highlights (II)
6M 2011 Financial Highlights (II) HIGHLIGHTS EPS (€)1 ROE before Tax (%) 3.32 3.05 2.65 2.60 2.76 14.3 2.40 10.5 10.6 10.8 11.2 10.0 2008 2009 2010 6M 09 6M 10 6M 11 2008 2009 2010 6M 09 6M 10 6M 11 1: anualised values net of hybrid interest 7
Slide 8: Peer Group Comparison (I)
Peer Group Comparison (I) PBT outperformance HIGHLIGHTS PBT (€ mn) 134 131 140 119 120 107 100 100 80 60 53 49 40 40 20 0 1-6 2007 1-6 2008 1-6 2009 1-6 2010 1-6 2011 Allianz Generali Uniqa VIG PBT CAGR 4Y PBT CAGR Allianz -20.5% Generali -16.5% Uniqa n.a. VIG 7.0% Source: Company reports, Uniqa 6M
Slide 9: Peer Group Comparison (II)
Peer Group Comparison (II) VIG combines high profitability and strong capitalisation HIGHLIGHTS Solvency I / ROE comparison 15 RoE (%) 2008 20 09 2010 Allianz 2010 10 2009 6/2011 6/2011 6/2011 2010 Generali 2009 2008 2010 VIG 5 2008 2009 Uniqa 0 100 150 200 250 Solvency I ratio (%) -5 2008 Source: C
Slide 10: P&L and Balance Sheet Details
P&L and Balance Sheet Details Vienna Insurance Group – 6M 2011 results
Slide 11: 6M 2011 Income Statement
6M 2011 Income Statement P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn 6M 2011 6M 2010 +/-% 1. Gross premiums written 4,729.2 4,588.6 3.1 2. Net earned premiums 4,070.5 4,000.3 1.8 1 3. Financial result 554.2 646.6 -14.3 4. Other income 45.5 85.5 -46.7 Total income 4,670.2 4,732.3 -1.3 6. Expenses fo
Slide 12: 6M 2011 Balance Sheet
6M 2011 Balance Sheet P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn 30.6. 2011 31.12.2010 +/-% Intangible assets 2,072 2,104 -1.5 Investments 27,973 28,160 -0.7 Unit- and index-linked investments 5,618 5,479 2.5 Reinsurers’ share in underwriting provisions 1,231 1,118 10.1 Receivables 1,777 1,681 5.7
Slide 13: 6M 2011 P&L – Gross Written Premiums
6M 2011 P&L– Gross Written Premiums P&L AND BALANCE Growth with different dynamics by lines and markets (€mn) SHEET DETAILS Austria: sound non-motor growth; weak life single premiums due to new tax €mn GWP Non-life GWP Life Total regime 6M 2011 6M 2010 +/-% 6M 2 011 6M 2010 +/-% 6M 201 1 6M 2010 +/-
Slide 14: 6M 2011 – Expenses for Claims Incurred
6M 2011 – Expenses for Claims Incurred P&L AND BALANCE Loss ratio improving due to absence of NatCat events SHEET DETAILS Group loss ratio (net) down by 1.6% pts % Claims Ratio Austria and Czech Republic recorded loss ratio 6M 2011 6M 2010 +/- %-pts down by 0.5% pts and 2.4% pts as a Austria 65.6 66
Slide 15: 6M 2011 – Operating Expenses
6M 2011 – Operating Expenses P&L AND BALANCE Cost ratio fairly stable SHEET DETAILS Group cost ratio (net) increased by 0.4% pts % Cost Ratio 6M 2011 6M 2010 +/- %-pts Stable cost ratio in Austria, the Czech Republic and Romania Austria 28.9 29.1 -0.2 Czech Rep. 28.6 28.2 0.4 In Slovakia, cost ratio
Slide 16: 6M 2011 P&L Major Items – Financial Result
6M 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 6M 2011 6M 2010 6M 2011 6M 2010 6M 2011 6M 2010 6M 2011 6M 2010 Current income 246,497 94,855 452,327 547,229 21,789 22,291 720,613 664,375 In
Slide 17: 6M 2011 Investment Split
6M 2011 Investment Split P&L AND BALANCE VIG follows a consistent investment approach SHEET DETAILS -0.7% € 28.2bn € 28.0bn ~ 4% ~ 4% Deposits ~ 1% ~ 1% Alternatives ~ 3% ~ 2% Affiliated Companies ~ 12% ~ 12% Loans ~ 14% ~ 15% Real Estate Including cash and cash ~ 4% ~ 4% Equities equivalents, total
Slide 18: Development of Bond Portfolio
Development of Bond Portfolio P&L AND BALANCE VIG follows a consistent investment approach SHEET DETAILS By Issuer By Rating 3% 3% 8% 8% 10% 10% 30% 28% 49% 48% 11% 11% 17% 17% 51% 53% 21% 22% YE 2010 6M 2011 YE 2010 6M 2011 Government 1 Pfandbriefe/Covered Bonds AAA AA A BBB Other Financials Corpor
Slide 19: PIIGS – Government Bonds
PIIGS – Government Bonds P&L AND BALANCE Direct government exposure SHEET DETAILS €mn Book value Portugal - 1 Ireland ~8% ~8% 52 Italy ~22% ~22% 16 1 Greece 33 Spain 8 Total 109 ~70% ~70% Approximately 0,4% of total investments 1: Net of YE 2010 impair ments of about 20% 19
Slide 20: Composition of Real Estate
Composition of Real Estate P&L AND BALANCE Increase from consolidation of a further housing society SHEET DETAILS By Issuer Real Estate (€mn) Nearly 70 % of real estate with regulated ~8% ~8% Austrian housing societies Entities are governed by a specific legal ~22% ~22% framework Rents are subsidise
Slide 21: 6M 2011 Shareholders’ Equity
6M 2011 Shareholders’ Equity P&L AND BALANCE Shareholders’ equity supports strong capitalisation SHEET DETAILS Change in Group Shareholders’ Equity (€mn) 230.5 -137.2 5,098.3 17.8 -4.2 -38.3 5,029.6 Increase of 1.4% ov er YE 2010 Equity as of YE 2010 Currency changes Changes in AFS unrealised gains
Slide 22: Outlook/Dividend
Outlook/Dividend Outlook and Dividend VIG‘s Path of Profitability (€mn) Dev elopment of Div idend € 540 € 256.0mn € 508 € 43 7 € 44 1 € 128.0mn € 321 € 115.5mn € 115.2mn € 86.1mn € 1.10 € 0.90 € 1.00 € 0.82 € 0.90 € 1.10 YE 2006 Y E 2007 YE 2008 YE 2009 YE 2010 YE 2 006 YE 2007 YE 20 08 YE 20 09 YE
Slide 23: Appendix
Appendix Vienna Insurance Group – 6M 2011 results
Slide 24: 6M 2011 P&L – Business Segments (P&C)
6M 2011 P&L – Business Segments Property & Casualty, IFRS (€mn) APPENDIX €mn 6M 2011 6M 2010 +/-% 1. Gross premiums written 2,561.8 2,381.3 7.6 2. Net earned premiums 1,926.8 1,814.9 6.2 3. Financial result 114.5 106.5 7.5 4. Other income 27.9 22.2 25.3 Total income 2,069.2 1,943.7 6.5 6. Expenses f
Slide 25: 6M 2011 P&L – Business Segments (Life)
6M 2011 P&L – Business Segments Life, IFRS (€mn) APPENDIX €mn 6M 2011 6M 2010 +/-% 1. Gross premiums written 1,986.7 2,042.4 -2.7 2. Net earned premiums 1,966.8 2,022.7 -2.8 3. Financial result 421.4 525.7 -19.8 4. Other income 17.6 63.2 -72.1 Total income 2,405.9 2,611.6 -7.9 6. Expenses for claims
Slide 26: 6M 2011 P&L – Business Segments (Health)
6M 2011 P&L – Business Segments Health, IFRS (€mn) APPENDIX €mn 6M 2011 6M 2010 +/-% 1. Gross premiums written 180.7 164.9 9.6 2. Net earned premiums 176.9 162.6 8.8 3. Financial result 18.3 14.4 27.3 4. Other income 0.0 0.0 >100 Total income 195.2 177.0 10.3 6. Expenses for claims and insurance ben
Slide 27: 6M 2011 P&L – Split by Regions (I)
6M 2011 P&L – Split by Regions (I) Regional segments, IFRS (€mn) APPENDIX €mn Austria Czech Republic 6M 2011 6M 2010 +/-% 6M 2011 6M 2010 +/-% 1. Gross premiums written 2,232.4 2,319.8 -3.8 973.7 869.3 12.0 2. Net earned premiums 1,831.4 1,963.9 -6.7 877.2 780.3 12.4 3. Financial result 392.9 480.5
Slide 28: 6M 2011 P&L – Split by Regions (II)
6M 2011 P&L – Split by Regions (II) Regional segments, IFRS (€mn) APPENDIX €mn Slovakia Poland Romania 6M 2011 6M 2010 +/-% 6M 2011 6M 2010 +/-% 6M 2011 6M 2010 +/-% 1. Gross premiums written 339.0 326.3 3.9 498.1 346.5 43.7 275.8 274.0 0.6 2. Net earned premiums 298.1 286.6 4.0 450.6 313.6 43.7 264
Slide 29: 6M 2011 P&L – Split by Regions (III)
6M 2011 P&L – Split by Regions (III) Regional segments, IFRS (€mn) APPENDIX €mn Remaining TOTAL 6M 2011 6M 2010 +/-% 6M 2011 6M 2010 +/-% 1. Gross premiums written 410.3 452.6 -9.4 4,729.2 4,588.6 3.1 2. Net earned premiums 348.7 405.5 -14.0 4,070.5 4,000.3 1.8 3. Financial result 31.9 34.8 -8.5 554
Slide 30: 6M 2011 Results by Country
6M 2011 Results by Country IFRS (€mn) APPENDIX €mn GWP Non-Life Life GWP GWP Total Profit before Taxes Net Combined Ratio 6M 2011 6M 2010 6M 2011 6M 2010 6M 2011 6M 2010 6M 2011 6M 2010 6M 2011 6M 2010 Austria 1,210.1 1,131.1 1,022.4 1,188.7 2,232.4 2,319.8 140.0 138.1 94.4% 95.1% Czech Rep. 542.3 5
Slide 31: Change in Group Shareholders’ Equity
Change in Group Shareholders’ Equity IFRS (€ ‘000) APPENDIX 1.1. - 30.6.2011 1.1. - 30.06.2010 Equity as of 1 January 5,029,647 4,628,573 Exchange rate changes 17,757 658 Changes in scope of consolidation -4,179 -10,562 Capital increase - - Unrealised gains and losses from -38,283 49,165 financial i
Slide 32: Life Insurance Premium Split
Life Insurance Premium Split IFRS (€mn) APPENDIX Premiums written - direct business 6M 2011 6M 2010 +/- % Regular premiums 1,164.0 1,120.2 3.9% Single premiums 815.6 914.0 -10.8% Total premiums written - direct business 1,979.5 2,034.2 -2.7% thereof: Policies with profit participation 977.3 976.4 0.
Slide 33: 6M 2011 Exchange Rates
6M 2011 Exchange Rates National currency unit per EUR APPENDIX 6M 2011 6M 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 7.3975 7.4018 7.1980 7.2663 Estonia EUR/EEK 1.0000 1.0000 15.6466 15.6466 Liechtenstein EU
Slide 34: 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 % 34
Slide 35: Shareholder Structure (II)
Shareholder Structure (II) Free float split APPENDIX Austria ~26 % Others ~3% North America ~27% Continental Europe ~24% UK & Ireland ~20% 35
Slide 36: 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 37: 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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