Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — FY2010 Earnings Presentation

40 slides from Vienna Insurance's earnings presentation, Mar 31, 2011

  1. Slide 1: Continuously better performance – YE 2010 results telephone conference

    Continuously better performance YE 2010 results telephone conference Vienna, 31 March 2011

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics Presenting Team Topics  Martin Simhandl, CFO  Highlights p. 3  Peter Hagen, Member of the Managing  P&L and Balance Sheet p. 7 Board  Embedded Value p. 18  Peter Höfinger, Member of the Managing Board  Outlook and Dividend p. 22  Kurt Ebner, Group Actuary in Chief

  3. Slide 3: Highlights

    Highlights Vienna Insurance Group – YE 2010 results

  4. Slide 4: Performance Drivers

    YE 2010 Performance Drivers HIGHLIGHTS € 507.8mn PBT, up by 15.1% Group Embedded Value: Combined ratio (net) at 98.4% Increase to € 5.1bn - strong influenced by NatCat losses in VIG – YE 10 RoEV of 9.1% despite adverse CEE market conditions Increase of profitability in Life insurance business -

  5. Slide 5: Financial Highlights (I)

    YE 2010 Financial Highlights (I) PBT increase driven by CEE performance HIGHLIGHTS GWP (€mn) +7.2% Profit before Tax (€mn) 8,593 +15.1% 7,899 8,019 541 508 6,912 441 437 2007 2008 2009 2010 2007 2008 2009 2010 Net Profit after Tax and Minorities (€mn) Combined Ratio (net, %) 409 +11.5% 380 313 340 9

  6. Slide 6: Financial Highlights (II)

    YE 2010 Financial Highlights (II) HIGHLIGHTS EPS (€) ROE before Tax (%) 3.41 18.0 2.98 2.97 2.66 14.3 10.0 10.5 2007 2008 2009 2010 2007 2008 2009 2010 6

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

    P&L and Balance Sheet Details Vienna Insurance Group – YE 2010 results

  8. Slide 8: Income Statement

    YE 2010 Income Statement P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn YE 2010 YE 2009 +/-% 1. Gross premiums written 8,593.0 8,019.3 7.2 2. Net earned premiums 7,860.4 7,242.3 8.5 3. Financial result 1,116.4 929.1 20.2 4. Other income 93.8 125.0 -24.9 Total income 9,070.6 8,296.4 9.3 6. Expenses for

  9. Slide 9: Balance Sheet

    YE 2010 Balance Sheet P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn YE 2010 YE 2009 +/-% Intangible assets 2,104 1,975 6.5 Investments 28,160 25,894 8.7 Unit- and index-linked investments 5,479 4,628 18.4 Reinsurers’ share in underwriting provisions 1,118 1,117 0.1 Receivables 1,681 1,563 7.5 Tax rec

  10. Slide 10: P&L – Gross Written Premiums

    YE 2010 P&L– Gross Written Premiums P&L AND BALANCE Growth with different dynamics by lines and markets (€mn) SHEET DETAILS GWP Non-life GWP Life Total  Austria: competitive motor market €mn with lower volumes; life benefiting YE 2010 YE 2009 +/-% YE 2010 YE 2009 +/-% YE 2010 YE 2009 +/-% from sing

  11. Slide 11: Expenses for Claims Incurred

    YE 2010 – Expenses for Claims Incurred P&L AND BALANCE NatCat losses throughout year affect loss ratio SHEET DETAILS Group loss ratio (net) up by 1.6% pts % Claims Ratio Austrian loss ratio saw increase by YE 2010 YE 2009 +/- %-pts 1.6% pts due to pressure on motor rates Austria 68.8 67.2 1.6 Cze

  12. Slide 12: Operating Expenses

    YE 2010 – Operating Expenses P&L AND BALANCE Cost ratio slightly up due to shift in premiums into Remaining markets SHEET DETAILS Group cost ratio (net) increasing by 0.5% pts % Cost Ratio Cost ratio in Austria slightly decreasing by YE 2010 YE 2009 +/- %-pts 0.4% pts due administration costs Aust

  13. Slide 13: P&L Major Items – Financial Result

    YE 2010 P&L Major Items – Financial Result P&L AND BALANCE Financial result driven by improved markets SHEET DETAILS Income P&C Life Health Total in € '000 YE 2010 YE 2009 YE 2010 YE 2009 YE 2010 YE 2009 YE 2010 YE 2009 Current income 448,196 176,724 908,367 1,095,810 38,014 39,729 1,394,577 1,312,2

  14. Slide 14: Investment Split

    YE 2010 Investment Split P&L AND BALANCE VIG follows a consistent investment approach SHEET DETAILS +8.7% € 28.2bn € 25.9bn ~ 4% ~ 1% Cash & Deposits ~ 3% Alternatives ~ 4% Affiliated Companies ~ 1% ~ 3% ~ 12% Loans ~ 15% ~ 14% Real Estate ~ 13% ~ 4% Equities ~ 3% ~ 62% ~ 62% Bonds YE 2009 YE 2010 1

  15. Slide 15: 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% 7% 8% 9% 10% 30% 36% 48% 49% 11% 13% 21% 17% 52% 44% 19% 21% YE 2009 YE 2010 YE 2009 YE 2010 Government 1 Pfandbriefe/Covered Bonds AAA AA A BBB Other Financials Corpora

  16. Slide 16: 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% Austrian housing societies  Entities are governed by a specific legal ~22% framework ~9%  Rents are subsidise

  17. Slide 17: Shareholders’ Equity

    YE 2010 Shareholders’ Equity P&L AND BALANCE Shareholders’ equity supports strong capitalisation SHEET DETAILS Change in Group Shareholders’ Equity (€mn) 413.3 -160.6 5,029.7 31.3 103.3 13.7 4,628.6 Increase of 8.7% over YE 2009 Equity as of YE 2009 Currency changes Changes in AFS unrealised gains P

  18. Slide 18: Embedded Value

    Embedded Value Vienna Insurance Group – YE 2010 results

  19. Slide 19: Group Embedded Value 2010

    Group Embedded Value 2010 Results (€mn) Embedded Value L&H P&C Total 2010 2009 (*) 2010 2009 (*) 2010 2009 (*) Remarks Austria / Germany Free Surplus 342.8 207.8 All results are based on local GAAP Required Capital 394.1 381.4 GEV reflects the present value of amounts deemed to ANAV 736.9 589.1 -1

  20. Slide 20: Group Embedded Value 2010 – Return on Adjusted Embedded Value

    Group Embedded Value 2010 Return on Adjusted Embedded Value (€mn) Embedded Value L&H P&C Total Change in Methodology Austria / Germany and Assumptions EV Dec 31, 2010 1,851.6 -197.4 1,654.2 EV Dec 31, 2009 Reported 1,684.2 73.3 1,757.5 EV Dec 31, 2009 Restated 1,692.4 73.9 1,766.3  The reference ra

  21. Slide 21: Group Embedded Value 2010 – New Business Values

    Group Embedded Value 2010 New Business Values (€mn) Embedded Value Austria / Germany 2010 2009 (*) +/-% NBV 49.8 51.5 - 3.3% Comments APE 216.5 203.8 + 6.3% PVNBP 2,045.1 1,987.5 + 2.9%  The NBV represents the value generated by new business sold APE-Ratio 23.0% 25.3% - 9.0% during the reporting pe

  22. Slide 22: Outlook and Dividend

    Outlook and Dividend Vienna Insurance Group – YE 2010 results

  23. Slide 23: Outlook/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 € 0.90 € 1.10 ~€ 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 2010p

  24. Slide 24: Appendix

    Appendix Vienna Insurance Group – YE 2010 results

  25. Slide 25: P&L – Business Segments: Property & Casualty

    YE 2010 P&L – Business Segments Property & Casualty, IFRS (€mn) APPENDIX €mn YE 2010 YE 2009 +/-% 1. Gross premiums written 4,350.0 4,206.7 3.4 2. Net earned premiums 3,644.3 3,457.7 5.4 3. Financial result 178.2 164.9 8.1 4. Other income 61.7 77.3 -20.2 Total income 3,884.2 3,699.9 5.0 6. Expenses

  26. Slide 26: P&L – Business Segments: Life

    YE 2010 P&L – Business Segments Life, IFRS (€mn) APPENDIX €mn YE 2010 YE 2009 +/-% 1. Gross premiums written 3,904.8 3,491.2 11.8 2. Net earned premiums 3,875.8 3,464.0 11.9 3. Financial result 919.5 748.4 22.9 4. Other income 31.4 47.6 -34.0 Total income 4,826.7 4,259.9 13.3 6. Expenses for claims

  27. Slide 27: P&L – Business Segments: Health

    YE 2010 P&L – Business Segments Health, IFRS (€mn) APPENDIX €mn YE 2010 YE 2009 +/-% 1. Gross premiums written 338.2 321.4 5.2 2. Net earned premiums 340.3 320.7 6.1 3. Financial result 18.7 15.8 18.2 4. Other income 0.7 0.1 >100 Total income 359.7 336.6 6.9 6. Expenses for claims and insurance bene

  28. Slide 28: P&L – Split by Regions (I)

    YE 2010 P&L – Split by Regions (I) Regional segments, IFRS (€mn) APPENDIX €mn Austria Czech Republic YE 2010 YE 2009 +/-% YE 2010 YE 2009 +/-% 1. Gross premiums written 4,041.1 3,874.2 4.3 1,756.5 1,603.3 9.6 2. Net earned premiums 3,701.9 3,529.6 4.9 1,615.6 1,441.0 12.1 3. Financial result 792.8 6

  29. Slide 29: P&L – Split by Regions (II)

    YE 2010 P&L – Split by Regions (II) Regional segments, IFRS (€mn) APPENDIX €mn Slovakia Poland Romania YE 2010 YE 2009 +/-% YE 2010 YE 2009 +/-% YE 2010 YE 2009 +/-% 1. Gross premiums written 647.9 628.4 3.1 747.7 548.3 36.4 528.1 606.7 -13.0 2. Net earned premiums 594.4 552.8 7.5 682.9 496.2 37.6 4

  30. Slide 30: P&L – Split by Regions (III)

    YE 2010 P&L – Split by Regions (III) Regional segments, IFRS (€mn) APPENDIX €mn Remaining TOTAL YE 2010 YE 2009 +/-% YE 2010 YE 2009 +/-% 1. Gross premiums written 871.7 758.5 14.9 8,593.0 8,019.3 7.2 2. Net earned premiums 785.0 672.2 16.8 7,860.4 7,242.3 8.5 3. Financial result 65.4 61.7 6.0 1,116

  31. Slide 31: Results by Country

    YE 2010 Results by Country IFRS (€mn) APPENDIX €mn GWP Non-Life Life GWP GWP Total Profit before Taxes Net Combined Ratio YE 2010 YE 2009 YE 2010 YE 2009 YE 2010 YE 2009 YE 2010 YE 2009 YE 2010 YE 2009 Austria 1,894.4 1,888.7 2,146.7 1,985.4 4,041.1 3,874.2 250.9 247.5 97.2% 96.0% Czech Rep. 1,004.4

  32. Slide 32: Change in Group Shareholders’ Equity

    Change in Group Shareholders’ Equity IFRS (€ ‘000) APPENDIX 1.1. - 31.12.2010 1.1. - 31.12.2009 Equity as of 1 January 4,628,573 4,138,790 Exchange rate changes 13,721 -7,276 Changes in scope of consolidation 103,341 2,659 Capital increase - 250,000 Unrealised gains and losses from 31,344 174,047 fi

  33. Slide 33: Premium Portfolio

    Premium Portfolio Basis of business origination substantially widened APPENDIX GWP by Geography YE 07 GWP by Geography YE 10 Remaining Remaining 9.0% 10.3% Romania Romania 6.0% 6.1% Poland 7.9% Poland Austria 8.7% Austria 53.5% 47.0% Slovakia 7.2% Slovakia 7.5% Czech Republic 16.4% Czech Republic 20

  34. Slide 34: Life Insurance Premium Split

    Life Insurance Premium Split IFRS (€mn) APPENDIX Premiums written - direct business YE 2010 YE 2009 +/- % Regular premiums 2,217.3 2,144.1 3.4% Single premiums 1,673.4 1,332.5 25.6% Total premiums written - direct business 3,890.6 3,476.6 11.9% thereof: Policies with profit participation 1,761.4 1,8

  35. Slide 35: Q4 2010 Income Statement

    Q4 2010 Income Statement IFRS (€mn) APPENDIX €mn Q4 2010 Q4 2009 +/-% 1. Gross premiums written 2,054.7 1,913.3 7.4 2. Net earned premiums 1,941.0 1,868.0 3.9 3. Financial result 220.7 201.9 9.3 4. Other income -15.1 39.4 n/a Total income 2,146.6 2,109.3 1.8 6. Expenses for claims and insurance bene

  36. Slide 36: Exchange Rates

    YE 2010 Exchange Rates National currency unit per EUR APPENDIX YE 2010 YE 2009 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 7.3830 7.2891 7.3000 7.3400 Estonia EUR/EEK 15.6466 15.6466 15.6466 15.6466 Liechtenstein

  37. Slide 37: 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 % 37

  38. Slide 38: Shareholder Structure (II)

    Shareholder Structure (II) Free float split APPENDIX Austria ~25 % Others ~3% North America ~27% Continental Europe ~26% UK & Ireland ~19% 38

  39. Slide 39: 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.

  40. Slide 40: 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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