Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — 9M 2013 Earnings Presentation
44 slides from Vienna Insurance's earnings presentation, Nov 28, 2013
Slide 1: 9M 2013 Results Presentation
9M 2013 Results Presentation Conference call for the results of the first three quarters 2013 Vienna, 28 November 2013
Slide 2: Presenting team and topics
Presenting team and topics Presenting team Topics Martin Simhandl, CFO Summary p. 3 Peter Höfinger, Member of the Managing Board Financial Highlights p. 4 Roland Gröll, Deputy Member of the Managing P&L and Balance Sheet p. 11 Board and Head of Group Finance and Regional Segments p. 14 Accounting In
Slide 3: Executive summary
Executive summary Romania and Italy burden positive result developments in 9M 2013 SUMMARY Profit before taxes of EUR 315.9mn down by 28.8% • Decrease driven by adverse developments in Romania and in the Italian branch office business of Donau Versicherung • Excellent profit development in CEE with
Slide 4: Successful business development in CEE
Successful business development in CEE FINANCIAL Other CEE with profit before taxes rising 93.5% to an all-time high HIGHLIGHTS Overview of profitability in all VIG markets VIG CEE PBT excl. Romania increased by 16.2% 4.5% PBT growth in CEE even incl. Romania Double digit PBT growth in 9M 2013 for P
Slide 5: Adverse situation in Italy and Romania
Adverse situation in Italy and Romania FINANCIAL VIG taking substantial measures to get back on track HIGHLIGHTS Italy overview Romania overview Initial reserving according to market average Non-life: Ongoing irrational market behaviour - local players dumping prices in motor business Regional portf
Slide 6: Stable premium development excl. Polish STEP
Stable premium development excl. Polish STEP* FINANCIAL Premium decrease mainly driven by reduction of Polish STEP HIGHLIGHTS Gross written premiums (€mn; y-o-y change) GWP regional split y-o-y chg. -5% 7,425 Austria 3,229 0% 5 7,050 Health 298 Czech Republic 1,318 -2% -70 304 -311 Slovakia 548 7% L
Slide 7: PBT impacted by development Italy and Romania
PBT impacted by development Italy and Romania FINANCIAL Adjusted* result up 3.3% to EUR 458.0mn HIGHLIGHTS Profit before taxes (€mn; y-o-y change) PBT regional split y-o-y chg. -29% 458 +3%* Austria 137 -30% 444 Health 37 Czech Republic 145 3% 73 Slovakia 43 9% 316 Life 166 -12 25 Poland 49 54% -188
Slide 8: Difficult situation in Romania and Italy affects CoR
Difficult situation in Romania and Italy affects CoR FINANCIAL Combined ratio slightly above 100%, stable cost ratio HIGHLIGHTS CoR 9M development (net, %) CoR 9M y-o-y countries development (net, %) +3.7pp 96.1 AT +7.1pp 103.2 96.9 100.6 89.4 CZ +4.4pp 93.8 SK 95.1 -1.5pp 9M12 93.5 Claims ratio 66.
Slide 9: Sustainable cost cutting over the years
Sustainable cost cutting over the years FINANCIAL Increasing non-motor portfolio in CEE and in AT/GER HIGHLIGHTS P&C administrative cost ratio decreasing1 Administrative cost ratio by segments CAGR Personnel 10% -7% Material 7.7 7.1 8% 6.6 6.0 5.7 6% 3.8 5.3 3.4 3.3 4.9 4% 3.2 2.9 2.7 2.9 2% 3.9 3.6
Slide 10: Clear focus on CEE
Clear focus on CEE VIG strengthens presence in Poland with acquisition of Skandia1 STRATEGY VIG with 6 companies and 4 brands: Market position: Number 3 Compensa & Benefia in Life and Non-Life Market share: 8.6% VIG in PL: Employees: ~ 1,700 InterRisk in Non-Life and Polisa in Life a core market wit
Slide 11: P&L and Balance Sheet Overview
P&L and Balance Sheet Overview Vienna Insurance Group – 9M 2013 Results Please note: Last year figures have been restated throughout the entire presentation to reflect the retrospective application of the amended IAS 19 standard
Slide 12: 9M 2013 – Income statement
9M 2013 – Income statement P&L AND BALANCE IFRS (€mn) SHEET OVERVIEW €mn 9M 2013 9M 2012 +/-% Gross premiums written 7,050.1 7,425.5 -5.1 Net earned premiums 6,364.3 6,744.5 -5.6 1 Financial result 892.1 900.7 -1.0 Other income 96.9 85.6 13.3 Total income 7,353.4 7,730.7 -4.9 Expenses for claims and
Slide 13: 9M 2013 – Balance sheet
9M 2013 – Balance sheet P&L AND BALANCE IFRS (€mn) SHEET OVERVIEW €mn 30.09.2013 31.12.2012 +/-% Intangible assets 2,379 2,410 -1.3 Investments 28,901 29,463 -1.9 Unit- and index-linked investments 6,551 6,444 1.7 Reinsurers’ share in underwriting provisions 1,119 1,034 8.2 Receivables 1,628 1,657 -
Slide 14: Regional Segments
Regional Segments Vienna Insurance Group – 9M 2013 Results
Slide 15: Austria with stable premium development
Austria with stable premium development REGIONAL Italian branch office business of Donau led to decrease in PBT SEGMENTS GWP for 9M 2013 (€mn) P&C GWP direct business split 1 +0.4% 3,217 3,229 MTPL 23% 1,524 (26%) P&C 1,537 Health 259 267 63% 13% (61%) (13%) Casco Other NL Life 1,420 1,438 9M12 9M13
Slide 16: Czech profit increased despite bad weather claims
Czech profit increased despite bad weather claims1 REGIONAL GWPs flat in 9M 2013 adjusted for FX effects SEGMENTS GWP for 9M 2013 (€mn) P&C GWP direct business split2 -2.4% 1,350 1,318 MTPL 29% P&C 734 689 (29%) 51% Other NL (52%) 20% Life 616 629 (19%) Casco 9M12 9M13 P&L: Non-life business (€mn) P
Slide 17: Slovakia – overall sound business development
Slovakia – overall sound business development REGIONAL Combined ratio improved to 93.5% SEGMENTS GWP for 9M 2013 (€mn) P&C GWP direct business split 1 +6.6% 548 514 Other NL 32% 251 41% MTPL P&C 248 (31%) (42%) Life 267 297 27% (28%) Casco 9M12 9M13 P&L: Non-life business (€mn) P&L: Life business (€
Slide 18: Polish profits jump by 54.3% to EUR 48.6mn
Polish profits jump by 54.3% to EUR 48.6mn REGIONAL Best result and combined ratio ever for VIG in Poland SEGMENTS GWP for 9M 2013 (€mn) P&C GWP direct business split 1 -31.6% 1,230 MTPL P&C 447 33% 841 Other NL (37%) 43% (35%) 424 Life 783 417 25% (28%) Casco 9M12 9M13 P&L: Non-life business (€mn)
Slide 19: Romania is the most challenging CEE market
Romania is the most challenging CEE market REGIONAL Continuing adverse market environment deteriorates results and CoR SEGMENTS GWP for 9M 2013 (€mn) P&C GWP direct business split 1 -19.3% 340 MTPL 275 Other NL 29% 36% (30%) (29%) P&C 264 219 35% Life 76 56 (42%) Casco 9M12 9M13 P&L: Non-life busine
Slide 20: Remaining markets profit is steeply rising (+61.7%)
Remaining markets profit is steeply rising (+61.7%) REGIONAL Profits from other CEE countries soar 93.5% in 9M 2013 SEGMENTS GWP for 9M 2013 (€mn) P&C GWP direct business split 1 +8.3% MTPL 782 722 21% (24%) 460 P&C 418 57% Other NL (53%) 22% Health 39 37 (23%) Casco Life 265 284 9M12 9M13 P&L: P&C
Slide 21: Investments and Equity
Investments and Equity Vienna Insurance Group – 9M 2013 Results Please note: Last year figures have been restated to reflect the retrospective application of the amended IAS 19 standard
Slide 22: 9M 2013 – Stable financial result
9M 2013 – Stable financial result Net realised gains of less than EUR 50mn - same level as last year INVESTMENTS Income P&C Life Health Total in € '000 9M 2013 9M 2012 9M 2013 9M 2012 9M 2013 9M 2012 9M 2013 9M 2012 Current income 261,588 299,471 665,688 677,090 30,114 31,693 957,390 1,008,254 Incom
Slide 23: 9M 2013 – Investment split
9M 2013 – Investment split Real estate decrease driven by housing societies INVESTMENTS 12M 2012: Total € 30.2bn 9M 2013: Total € 29.5bn Rounding differences may occur when rounded amounts or percentages are added up. 23
Slide 24: 9M 2013 – Structure of bond portfolio
9M 2013 – Structure of bond portfolio INVESTMENTS By Issuer By Rating1 Other 4% 6% Corporates 9% 12% BBB 13% 11% Financials 26% 23% A 37% 37% Pfandbriefe/ 10% 9% Covered bonds AA 28% 28% 2 Government 55% 56% AAA 18% 18% YE 2012 9M 2013 YE 2012 9M 2013 1: Based on second best rating 2: Government and
Slide 25: 9M 2013 – Shareholders' equity
9M 2013 – Shareholders’ equity Impacted by repurchase of hybrid capital and consolidation changes EQUITY Change in Group Shareholders’ Equity (€mn) -10% 232 5,712 -34 -80 5,143 -234 -203 -250 Equity as Profit for Currency AFS unrealised Changes in Dividend payment Repurchase of Equity as of YE 2012
Slide 26: Successful bond issue
Successful bond issue BOND VIG launched € 500mn 30NC10 subordinated notes TRANSACTION Very successful benchmark transaction in October 2013 Roadshow Order books Settlement VIG management on the road in More than 200 investors taking Hit rate: 70% of investors seen part indicating strong demand on th
Slide 27: Appendix
Appendix Vienna Insurance Group – 9M 2013 Results Please note: Last year figures have been restated to reflect the retrospective application of the amended IAS 19 standard
Slide 28: 9M 2013 Key financials
9M 2013 Key financials Overview APPENDIX Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 446 98.4 100.6 407 96.8 96.7 97.2 96.9 380 342 313 218 2010 2011 2012 9M11 9M12 9M13 2010 2011 2012 9M11 9M12 9M13 EPS1 (€) ROE before Taxes (%) 3.17 3.25 11.1 10.9 11.0 11.2 2.95 10.5 2.87 2.6
Slide 29: 9M 2013 P&L – Property & Casualty
9M 2013 P&L – Property & Casualty IFRS (€mn) APPENDIX €mn 9M 2013 9M 2012 +/-% Gross premiums written 3,617.0 3,686.9 -1.9 Net earned premiums 2,956.0 3,042.8 -2.9 Financial result 173.3 171.0 1.3 Other income 57.0 57.0 0.1 Total income 3,186.3 3,270.8 -2.6 Expenses for claims and insurance benefits
Slide 30: 9M 2013 P&L – Life
9M 2013 P&L – Life IFRS (€mn) APPENDIX €mn 9M 2013 9M 2012 +/-% Gross premiums written 3,129.4 3,440.4 -9.0 Net earned premiums 3,110.9 3,421.1 -9.1 Financial result 711.2 707.0 0.6 Other income 39.8 27.3 45.8 Total income 3,861.9 4,155.4 -7.1 Expenses for claims and insurance benefits -3,076.9 -3,4
Slide 31: 9M 2013 P&L – Health
9M 2013 P&L – Health IFRS (€mn) APPENDIX €mn 9M 2013 9M 2012 +/-% Gross premiums written 303.7 298.2 1.8 Net earned premiums 297.4 280.6 6.0 Financial result 7.6 22.7 -66.4 Other income 0.1 1.3 -93.7 Total income 305.1 304.6 0.2 Expenses for claims and insurance benefits -243.3 -232.6 4.6 Acquisitio
Slide 32: 9M 2013 – Gross written premiums by region
9M 2013 – Gross written premiums by region Premium decrease of 5.1% y-o-y APPENDIX €mn GWP Non-Life GWP Life GWP Total 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-% Austria 1,791.0 1,796.2 -0.3% 1,438.3 1,420.4 1.3% 3,229.3 3,216.6 0.4% Czech Rep. 689.4 734.3 -6.1% 628.6 615.8 2.1%
Slide 33: 9M 2013 P&L – Split by regions (I)
9M 2013 P&L – Split by regions (I) Regional segments, IFRS (€mn) APPENDIX €mn Austria Czech Republic Slovakia 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-% Gross premiums written 3,229.3 3,216.6 0.4 1,318.0 1,350.1 -2.4 548.3 514.4 6.6 Net earned premiums 2,577.5 2,521.9 2.2 1,059.5
Slide 34: 9M 2013 P&L – Split by regions (II)
9M 2013 P&L – Split by regions (II) Regional segments, IFRS (€mn) APPENDIX €mn Poland Romania Remaining 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-% Gross premiums written 840.8 1,229.7 -31.6 274.6 340.2 -19.3 781.5 721.5 8.3 Net earned premiums 681.6 1,004.6 -32.2 142.2 273.3 -48.
Slide 35: 9M 2013 P&L – Split by regions (III)
9M 2013 P&L – Split by regions (III) Regional segments, IFRS (€mn) APPENDIX €mn Central Functions Consolidation TOTAL 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-% Gross premiums written 996.7 960.8 3.7 -939.1 -907.8 3.5 7,050.1 7,425.5 -5.1 Net earned premiums 875.4 911.4 -3.9 3.7
Slide 36: 9M 2013 – Results by country (I)
9M 2013 – Results by country (I) IFRS (€mn) APPENDIX €mn GWP Non-Life GWP Life GWP Total 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-% Austria 1,791.0 1,796.2 -0.3% 1,438.3 1,420.4 1.3% 3,229.3 3,216.6 0.4% Czech Rep. 689.4 734.3 -6.1% 628.6 615.8 2.1% 1,318.0 1,350.1 -2.4% Slovakia
Slide 37: 9M 2013 – Results by country (II)
9M 2013 – Results by country (II) IFRS (€mn) APPENDIX €mn Profit before Taxes Net Combined Ratio 9M 2013 9M 2012 +/-% 9M 2013 9M 2012 +/-pp Austria 136.7 194.3 -29.6% 103.2% 96.1% 7.1 Czech Rep. 144.9 140.4 3.2% 93.8% 89.4% 4.4 Slovakia 42.8 39.4 8.6% 93.5% 95.1% -1.6 Poland 48.6 31.5 54.3% 95.0% 10
Slide 38: Claims and cost ratio details
Claims and cost ratio details P&C administrative expenses down by 13.1% in 9M 2013 APPENDIX Claims ratio 9M y-o-y regional development (net, %) Remarks for claims incurred 9M12 9M13 Austria: claims ratio up 5.1pp driven by branch office business in +15.9 Italy +5.1 Czech Republic: increase of 7.3pp
Slide 39: 9M 2013 – Life insurance premium split
9M 2013 – Life insurance premium split IFRS (€mn) APPENDIX Premiums written - direct business 9M 2013 9M 2012 +/- % Regular premiums 1,726 1,704 1.3% Single premiums 1,391 1,722 -19.2% Total premiums written - direct business 3,117 3,426 -9.0% thereof: Policies with profit participation 1,464 1,977
Slide 40: Q3 2013 – Income Statement
Q3 2013 – Income Statement IFRS (€mn) APPENDIX €mn Q3 2013 Q3 2012 +/-% Gross premiums written 2,020.4 2,142.6 -5.7 Net earned premiums 1,956.5 2,088.1 -6.3 Financial result 299.1 318.8 -6.2 Other income 15.0 32.6 -54.1 Total income 2,270.6 2,439.5 -6.9 Expenses for claims and insurance benefits -1,
Slide 41: 9M 2013 – Exchange rates
9M 2013 – Exchange rates APPENDIX 9M 2013 9M 2012 Balance Balance Country Curr. P & L EUR P & L EUR Sheet EUR Sheet EUR Albania EUR/ALL 141.3700 140.2293 140.1900 138.9994 Belarus EUR/BYR 12,250.0000 11,517.2161 10,990.0000 10,595.4380 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.95
Slide 42: VIG Share
VIG Share APPENDIX General information Shareholder structure Number of common shares: 128mn Wiener Städtische Wechselseitiger ISIN: AT0000908504 Versicherungsverein - Listings: Vermögensverwaltung – Vienna Insurance Group Free Float Vienna – since 17 Oct. 1994 ~70 % ~30 % Prague – since 5 Feb. 2008
Slide 43: 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 year
Slide 44: 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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