Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — H1 2013 Earnings Presentation
45 slides from Vienna Insurance's earnings presentation, Aug 29, 2013
Slide 1: 6M 2013 Results Presentation
6M 2013 Results Presentation Conference Call for the half-year results 2013 Vienna, 29 August 2013
Slide 2: Presenting team and topics
Presenting team and topics Presenting team Topics Martin Simhandl, CFO Summary p. 3 Franz Kosyna, Deputy General Manager and Member of the Managing Board Financial Highlights p. 4 Peter Höfinger, Member of the Managing P&L and Balance Sheet p. 10 Board Regional Segments p. 13 Roland Gröll, Deputy Me
Slide 3: Sound business development in 6M 2013
Sound business development in 6M 2013 Executive summary SUMMARY Operating result strongly increased by 9.5% to EUR 330.7mn Poland with +46.6% and Remaining markets with +81.2% in profits are the main drivers Turnaround in Turkey and Bulgaria - positive profit contributions compared to last year Prof
Slide 4: Premium development driven by decrease of STEP
Premium development driven by decrease of STEP FINANCIAL GWP increased by 2.2%* adjusted for Polish life short-term business HIGHLIGHTS Gross written premiums (€mn) GWP regional split -4.8% Austria 2,374 5,283 +2.2%* Czech Republic 898 5,030 Health 194 199 Slovakia 375 Poland 610 Life 2,466 2,213 Ro
Slide 5: Increased diversification of premium portfolio
Increased diversification of premium portfolio FINANCIAL Major CEE markets with stronger premium shares HIGHLIGHTS Premium diversification 6M 2005 6M 2009 6M 2013 RO Rem. Markets Rem. Markets Rem. Markets PL 8% RO 9% RO 11% SK 7% 4% 7% 1% 2% PL 6% PL 12% 48% AT CZ 17% SK 8% 51% AT 8% 66% SK AT 18% 1
Slide 6: Operating result up 9.5% to EUR 330.7mn
Operating result up 9.5% to EUR 330.7mn FINANCIAL Profit before taxes affected by impairment and precautions HIGHLIGHTS Profit before taxes (€mn) PBT regional split +9.5% -31.9% Austria 112 331* 302 Czech Republic 90 Health 23 25 Slovakia Life 112 206 Poland 33 22 Romania -18 Remaining markets 23 14
Slide 7: Combined ratio remains below 100%
Combined ratio remains below 100% FINANCIAL CoR impacted by precautionary measures and bad weather claims HIGHLIGHTS CoR 6M development (net, %) CoR 6M y-o-y countries development (net, %) +3.3pp 95.0 AT +7.3pp 102.3 96.55 99.83 91.0 CZ +2.8pp 93.7 SK 95.7 -0.5pp 95.2 Claims ratio 65.84 68.85 PL 98.
Slide 8: Successful business development Poland
Successful business development Poland FINANCIAL Combined ratio at all-time low HIGHLIGHTS CoR development (net, %) Profit development (€mn) 106.8 33 101.4 97.6 98.7 95.5 +48.3% 23 17 10 12M10 12M11 12M12 6M12 6M13 6M10 6M11 6M12 6M13 Remarks With PBT of EUR 33.2mn Poland achieved the best half-year
Slide 9: New business margin improved to 4.2% in 6M13
New business margin improved to 4.2% in 6M13 FINANCIAL Value of new business at € 82mn up 6.5% y-o-y HIGHLIGHTS Value of new business (€mn) New business margin – PVNBP-Ratio (%) 195 204 77 82 5.5 +13.5% 12M11 12M12 6M12 6M13 4.3 4.2 3.7 PVNBP (€mn) / 4,690 3,541 12M11 12M12 6M12 6M13 2,103 1,945 12M
Slide 10: P&L and Balance Sheet Overview
P&L and Balance Sheet Overview Vienna Insurance Group – 6M 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 11: 6M 2013 – Income statement
6M 2013 – Income statement P&L AND BALANCE IFRS (€mn) SHEET OVERVIEW €mn 6M 2013 6M 2012 +/-% Gross premiums written 5,029.7 5,282.9 -4.8 Net earned premiums 4,407.8 4,656.4 -5.3 Financial result 1 593.0 581.9 1.9 Other income 82.0 53.0 54.7 Total income 5,082.8 5,291.3 -3.9 Expenses for claims and
Slide 12: 6M 2013 – Balance sheet
6M 2013 – Balance sheet P&L AND BALANCE IFRS (€mn) SHEET OVERVIEW €mn 30.06.2013 31.12.2012 +/-% Intangible assets 2,356 2,410 -2.2 Investments 28,833 29,463 -2.1 Unit- and index-linked investments 6,420 6,444 -0.4 Reinsurers’ share in underwriting provisions 1,238 1,034 19.7 Receivables 1,672 1,657
Slide 13: Regional Segments
Regional Segments Vienna Insurance Group – 6M 2013 Results
Slide 14: Austria shows sound premium development
Austria shows sound premium development REGIONAL Precautionary measures affect PBT in P&C SEGMENTS GWP for 6M 2013 (€mn) P&C GWP direct business split 1 +2.1% 2,325 2,374 MTPL 22% (25%) P&C 1,148 1,146 178 13% Health 174 65% (13%) Casco (62%) Life 1,003 1,050 Other NL 6M12 6M13 P&L: P&C business (€m
Slide 15: Czech profit increase driven by life result
Czech profit increase driven by life result REGIONAL GWPs adjusted for adverse FX effects increased by 1.0% SEGMENTS GWP for 6M 2013 (€mn) P&C GWP direct business split 1 -1.1% 908 898 MTPL 29% P&C 512 484 (29%) 51% Other NL (52%) 20% Life 397 415 (19%) Casco 6M12 6M13 P&L: Non-life business (€mn) P
Slide 16: Slovakian premiums solidly increase
Slovakian premiums solidly increase REGIONAL Combined ratio improved to 95.2% SEGMENTS GWP for 6M 2013 (€mn) P&C GWP direct business split 1 +4.6% 358 375 Other NL 34% P&C 176 179 41% MTPL (30%) (43%) Life 182 196 25% (27%) Casco 6M12 6M13 P&L: Non-life business (€mn) P&L: Life business (€mn) 6M13 Y
Slide 17: Polish total profits jump by 46.6% to €33.2mn
Polish total profits jump by 46.6% to €33.2mn REGIONAL Best half-year result and combined ratio for Poland SEGMENTS GWP for 6M 2013 (€mn) P&C GWP direct business split 1 -36.0% 952 MTPL P&C 302 32% 610 Other NL 42% (37%) (35%) 294 Life 650 316 25% (28%) Casco 6M12 6M13 P&L: Non-life business (€mn) P
Slide 18: Romania is currently the most challenging market
Romania is currently the most challenging market REGIONAL Impairment on goodwill of €75mn and precautions of €15mn in 6M13 SEGMENTS GWP for 6M 2013 (€mn) P&C GWP direct business split 1 -16.8% 236 MTPL 196 29% Other NL 37% (31%) (28%) P&C 184 154 35% Life 52 42 (41%) Casco 6M12 6M13 P&L: Non-life bu
Slide 19: Remaining markets profits are steeply rising
Remaining markets profits are steeply rising REGIONAL Premiums increase by 11.2% and profits rise by 81.2% in 6M13 SEGMENTS GWP for 6M 2013 (€mn) P&C GWP direct business split 1 +11.2% MTPL 531 477 21% (25%) 321 P&C 278 58% 21% Other NL (53%) Health 21 21 (23%) Casco Life 179 189 6M12 6M13 P&L: P&C
Slide 20: Investments and Equity
Investments and Equity Vienna Insurance Group – 6M 2013 Results Please note: Last year figures have been restated to reflect the retrospective application of the amended IAS 19 standard
Slide 21: 6M 2013 – Financial result increased by 1.9%
6M 2013 – Financial result increased by 1.9% Net realised gains of less than EUR 10mn on same level as last year INVESTMENTS Income P&C Life Health Total in € '000 6M 2013 6M 2012 6M 2013 6M 2012 6M 2013 6M 2012 6M 2013 6M 2012 Current income 186,102 202,383 448,101 445,796 20,462 20,886 654,665 669
Slide 22: 6M 2013 – Investment split
6M 2013 – Investment split Real estate decrease driven by housing societies INVESTMENTS 12M 2012: Total € 30.2bn 6M 2013: Total € 29.4bn Rounding differences may occur when rounded amounts or percentages are added up. 22
Slide 23: 6M 2013 - Real estate portfolio details
6M 2013 - Real estate portfolio details Key driver of portfolio decrease is the change of consolidation1 INVESTMENTS Real estate portfolio development (€m) -23% 3,220 102 -4 2,494 ~9% -780 -44 Book Value Additions Disposals Change in scope Scheduled Book value as as of 1/1/2013 of consolidation Depr
Slide 24: 6M 2013 – Structure of bond portfolio
6M 2013 – Structure of bond portfolio INVESTMENTS By Issuer By Rating1 Other 4% 5% Corporates 9% 11% BBB 13% 13% Financials 26% 25% A 37% 37% Pfandbriefe/ 10% 10% Covered bonds AA 28% 27% 2 Government 55% 54% AAA 18% 18% YE 2012 6M 2013 YE 2012 6M 2013 1: Based on second best rating 2: Government an
Slide 25: 6M 2013 – Shareholders’ equity
6M 2013 – Shareholders’ equity IAS 19 impact on equity YE 2012 of minus EUR 40mn EQUITY Change in Group Shareholders’ Equity (€mn) -8.2% 146 5,712 -41 -118 5,241 -254 -203 Equity as Profit for the period Currency changes AFS unrealised Changes in Dividend payment Equity as of YE 2012 gains and losse
Slide 26: 6M 2013 - Solvency I ratio of 244%
6M 2013 - Solvency I ratio of 244% Strong equity position is basis for more than solid S1 ratio EQUITY Available capital compared to required capital Equity 5,755 Non-controlling interests 15 Subordinated liabilities 533 Intangible assets -2,356 Admitted hidden reserves 301 in real estates1 Non-cons
Slide 27: S&P rating confirmed in July 2013: A+/stable
S&P rating confirmed in July 2013: A+/stable VIG is the best rated company in the ATX RATING Rating score snapshot: A+/Stable/-- Anchor aa- Details: Business Risk Profile Very Strong Very strong capitalization “with capital adequacy exceeding Very Strong the benchmark for the ´AA´ rating” Financial
Slide 28: Appendix
Appendix Vienna Insurance Group – 6M 2013 Results
Slide 29: 6M 2013 Key financials
6M 2013 Key financials Overview APPENDIX Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 446 98.4 96.8 96.7 97.1 96.6 99.8 407 380 215 232 141 2010 2011 2012 6M11 6M12 6M13 2010 2011 2012 6M11 6M12 6M13 EPS1 (€) ROE before Taxes (%) 3.17 3.31 11.8 3.05 11.1 10.9 11.2 2.87 10.5 2.65
Slide 30: 6M 2013 P&L – Property & Casualty
6M 2013 P&L – Property & Casualty IFRS (€mn) APPENDIX €mn 6M 2013 6M 2012 +/-% Gross premiums written 2,617.9 2,622.4 -0.2 Net earned premiums 2,022.2 2,027.1 -0.2 Financial result 119.2 108.5 9.8 Other income 48.6 33.1 47.0 Total income 2,190.0 2,168.7 1.0 Expenses for claims and insurance benefits
Slide 31: 6M 2013 P&L – Life
6M 2013 P&L – Life IFRS (€mn) APPENDIX €mn 6M 2013 6M 2012 +/-% Gross premiums written 2,212.6 2,466.2 -10.3 Net earned premiums 2,188.3 2,443.8 -10.5 Financial result 459.2 460.3 -0.2 Other income 33.3 18.7 77.9 Total income 2,680.7 2,922.8 -8.3 Expenses for claims and insurance benefits -2,175.6 -
Slide 32: 6M 2013 P&L – Health
6M 2013 P&L – Health IFRS (€mn) APPENDIX €mn 6M 2013 6M 2012 +/-% Gross premiums written 199.1 194.2 2.5 Net earned premiums 197.4 185.5 6.4 Financial result 14.6 13.0 12.2 Other income 0.1 1.2 -94.5 Total income 212.1 199.7 6.2 Expenses for claims and insurance benefits -166.8 -154.5 7.9 Acquisitio
Slide 33: 6M 2013 – Gross written premiums by region
6M 2013 – Gross written premiums by region Premium decrease of 4.8% APPENDIX €mn GWP Non-Life GWP Life GWP Total 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-% Austria 1,323.8 1,321.7 0.2% 1,049.9 1,002.9 4.7% 2,373.7 2,324.6 2.1% Czech Rep. 483.9 511.5 -5.4% 414.6 396.7 4.5% 898.4 9
Slide 34: 6M 2013 P&L – Split by regions (I)
6M 2013 P&L – Split by regions (I) Regional segments, IFRS (€mn) APPENDIX €mn Austria Czech Republic Slovakia 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-% Gross premiums written 2,373.7 2,324.6 2.1 898.4 908.3 -1.1 375.0 358.4 4.6 Net earned premiums 1,810.4 1,733.4 4.4 706.6 708.3
Slide 35: 6M 2013 P&L – Split by regions (II)
6M 2013 P&L – Split by regions (II) Regional segments, IFRS (€mn) APPENDIX €mn Poland Romania Remaining 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-% Gross premiums written 609.7 952.2 -36.0 196.3 235.9 -16.8 530.9 477.3 11.2 Net earned premiums 486.5 854.9 -43.1 158.3 191.0 -17.1 3
Slide 36: 6M 2013 P&L – Split by regions (III)
6M 2013 P&L – Split by regions (III) Regional segments, IFRS (€mn) APPENDIX €mn Central Functions Consolidation TOTAL 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-% Gross premiums written 677.5 595.9 13.7 -632.0 -569.7 10.9 5,029.7 5,282.9 -4.8 Net earned premiums 568.1 542.7 4.7 1.6
Slide 37: 6M 2013 – Results by country (I)
6M 2013 – Results by country (I) IFRS (€mn) APPENDIX €mn GWP Non-Life GWP Life GWP Total 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-% Austria 1,323.8 1,321.7 0.2% 1,049.9 1,002.9 4.7% 2,373.7 2,324.6 2.1% Czech Rep. 483.9 511.5 -5.4% 414.6 396.7 4.5% 898.4 908.3 -1.1% Slovakia 178.
Slide 38: 6M 2013 – Results by country (II)
6M 2013 – Results by country (II) IFRS (€mn) APPENDIX €mn Profit before Taxes Net Combined Ratio 6M 2013 6M 2012 +/-% 6M 2013 6M 2012 +/-pp Austria 112.3 135.9 -17.4% 102.3% 95.0% 7.3 Czech Rep. 90.2 88.5 2.0% 93.7% 91.0% 2.8 Slovakia 24.6 28.0 -12.0% 95.2% 95.7% -0.5 Poland 33.2 22.7 46.6% 95.5% 98
Slide 39: Claims and cost ratio details
Claims and cost ratio details P&C administrative expenses down by 10.1% in 6M 2013 APPENDIX Claims ratio 6M y-o-y regional development (net, %) Remarks for claims incurred 6M12 6M13 Austria: claims ratio up 4.3% driven by branch office business in -1.5 Italy +4.3 +2.5 Czech Republic: increase of 2.5
Slide 40: 6M 2013 – Life insurance premium split
6M 2013 – Life insurance premium split IFRS (€mn) APPENDIX Premiums written - direct business 6M 2013 6M 2012 +/- % Regular premiums 1,186 1,172 1.2% Single premiums 1,019 1,286 -20.7% Total premiums written - direct business 2,206 2,458 -10.3% thereof: Policies with profit participation 1,050 1,479
Slide 41: Q2 2013 – Income Statement
Q2 2013 – Income Statement IFRS (€mn) APPENDIX €mn Q2 2013 Q2 2012 +/-% Gross premiums written 2,324.4 2,536.4 -8.4 Net earned premiums 2,209.0 2,425.6 -8.9 Financial result 322.8 304.9 5.9 Other income 39.7 26.8 48.0 Total income 2,571.5 2,757.3 -6.7 Expenses for claims and insurance benefits -1,91
Slide 42: 6M 2013 – Exchange rates
6M 2013 – Exchange rates APPENDIX 6M 2013 6M 2012 Balance Balance Country Curr. P & L EUR P & L EUR Sheet EUR Sheet EUR Albania EUR/ALL 140.9600 140.2023 138.1700 139.2678 Belarus EUR/BYR 11,460.0000 11,360.1105 10,470.0000 10,665.9890 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.95
Slide 43: 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 44: Contact details
Contact details Investor Relations APPENDIX Financial calendar 2013 Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna 24 Jan. 2013 Preliminary unconsolidated E-Mail: [email protected] premiums 2013 www.vig.com/ir 03 April 2013 Results and EV for the year
Slide 45: 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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