Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — H1 2015 Earnings Presentation

39 slides from Vienna Insurance's earnings presentation, Aug 25, 2015

  1. Slide 1: Vienna Insurance Group 6M 2015 Results Presentation

    Vienna Insurance Group 6M 2015 Results Presentation Vienna, 25 August 2015 Financials Main regions Investments Appendix

  2. Slide 2: 6M 2015 Results conference call overview

    6M 2015 Results conference call overview Presenting team and topics Presenting team: Martin Simhandl, CFO Peter Höfinger, Member of the Managing Board Roland Gröll, Head of Group Finance and Accounting Nina Higatzberger, Head of Investor Relations Topics: Financial highlights p. 3 Investments and eq

  3. Slide 3: The first half year 2015 at a glance

    The first half year 2015 at a glance Focus on profitable non-motor business and regular premium business in life €4.9bn Decrease of 1.5% driven by conservative approach towards single premium business due to current low interest rate environment Successful focus on regular premiums in life with grow

  4. Slide 4: The Baltics: Growing region with a common population of ~6.3mn inhabitants

    The Baltics: Growing region with a common population of ~6.3mn inhabitants Three countries with favourable macroeconomic data GDP per capita (PPP, in USD) Premium per capita 2014 (in €) 40.000 Estonia 335 35.000 Lithuania 203 30.000 Latvia 172 25.000 Austria 2,007 20.000 Ø EU-15 2,845 15.000 Estonia

  5. Slide 5: The Baltics: VIG further increasing business activities

    The Baltics: VIG further increasing business activities in order to benefit from promising development Acquisitions and formation of a new insurance company Acquisition of Finsaltas Compensa Life Estonia Life Insurance sales company Life insurer active in all Baltic ~300 insurance brokers states Bro

  6. Slide 6: S&P rating confirmed in July 2015: A+/stable/--

    S&P rating confirmed in July 2015: A+/stable/-- VIG remains the best rated company in the ATX Anchor: Business Risk Profile: Very Strong aa- „Very strong competitive position, based on leading market positions in Austria and CEE“ „Sound diversification by business line and a well-established multich

  7. Slide 7: Premiums decreased slightly but many CEE markets with solid top-line growth

    Premiums decreased slightly but many CEE markets with solid top-line growth Remaining markets premium up by 18.4% Gross written premiums (€mn; y-o-y chg.) GWP regional split y-o-y chg. -2% Austria 2,286 -2% 4,984 10 3 4,908 Czech Republic 835 -6% Health 197 200 -89 388 Slovakia 0% Life 2,223 2,134 P

  8. Slide 8: Profit before taxes of €250.5mn, down by 16.8%

    Profit before taxes of €250.5mn, down by 16.8% Remaining markets PBT up by 11.5% to a new record result Profit before taxes (€mn; y-o-y change) PBT regional split y-o-y chg. -17% Austria 86 -32% 301 Health 32 Czech Republic 88 3% -20 250 -22 23 Slovakia 26 2% -9 Life 104 Poland 28 -16% 82 Romania 3

  9. Slide 9: Group combined ratio improved to 95.9%

    Group combined ratio improved to 95.9% Best CoR of the last 5 comparison periods P&C Combined ratio development P&C CoR 6M y-o-y regional development (net, %) -1.2%p AT 99.7 -3.1%p 97.1 95.9 96.6 CZ 88.7 +1.0%p 89.8 SK 94.5 +1.1%p 6M14 Claims ratio 66.0 64.2 95.6 96.0 6M15 PL +0.8%p 96.8 RO 108.3 -5

  10. Slide 10: Main regions

    Financial Main regions highlights Investments and Appendix equity Financials Main regions Investments Appendix

  11. Slide 11: Austria – effected by low interest rate environment

    Austria – effected by low interest rate environment CoR improved to 96.6% GWP development (€mn) P&C GWP direct business split1 -2.3% MTPL 2,341 2,286 17% (19%) P&C 1,121 1,122 13% Casco (13%) Health 184 190 70% Life 1,035 974 (68%) Non-motor 6M14 6M15 P&L: P&C business (€mn) P&L: Life business (€mn)

  12. Slide 12: Czech Republic – contributing most to Group profits

    Czech Republic – contributing most to Group profits CoR maintained at excellent 89.8% GWP development (€mn) P&C GWP direct business split1 -6.3% 892 MTPL 835 31% P&C 443 (30%) 440 Non-motor 47% (50%) Life 449 395 22% (20%) 6M14 6M15 Casco P&L: P&C business (€mn) P&L: Life business (€mn) 6M15 Y-o-Y 6

  13. Slide 13: Slovakia – overall positive development

    Slovakia – overall positive development Life business impacted by decreased single premiums GWP development (€mn) P&C GWP direct business split1 +0.3% 387 388 Non-motor 34% P&C 182 179 40% MTPL (34%) (41%) Life 205 209 26% (25%) 6M14 6M15 Casco P&L: P&C business (€mn) P&L: Life business (€mn) 6M15 Y

  14. Slide 14: Poland – challenging market environment persists

    Poland – challenging market environment persists Increased price competition in fleet and leasing business GWP development (€mn) P&C GWP direct business split1 -20.5% 565 MTPL 449 31% P&C 296 Non-motor 43% (32%) 245 (44%) Life 269 205 26% (24%) 6M14 6M15 Casco P&L: P&C business (€mn) P&L: Life busin

  15. Slide 15: Romania – substantial premium increase

    Romania – substantial premium increase Positive profit contribution from P&C and life GWP development (€mn) P&C GWP direct business split1 +17.6% 194 Non-motor 165 28% (33%) 44% MTPL 160 (38%) P&C 138 Life 27% 28 34 (29%) 6M14 6M15 Casco P&L: P&C business (€mn) P&L: Life business (€mn) 6M15 Y-o-Y 6M

  16. Slide 16: Remaining markets – record result with ongoing top and bottom line growth

    Remaining markets – record result with ongoing top and bottom line growth in P&C and life Health business of Georgia declining in 6M 2015 GWP development (€mn) P&C GWP direct business split1 +18.4% MTPL 669 22% 564 (21%) 346 P&C 319 10 59% 19% Health 13 Non-motor (60%) (19%) 313 Casco Life 232 6M14

  17. Slide 17: Investments and equity

    Financial Main regions highlights Investments and Appendix equity Financials Main regions Investments Appendix

  18. Slide 18: Conservative investment strategy to be maintained

    Conservative investment strategy to be maintained Bond rating split impacted by rating downgrades of Austrian banks 6M 2015: Total €31.3bn Bond portfolio by rating1 Other 6% 6% 6.2% 12% 16% BBB 3.4% 0.0% A 38% 33% 9.5% AA 29% 34% 6.4% AAA 15% 11% 4.3% 12M14 6M15 Bond portfolio by issuer 70.2% Corpor

  19. Slide 19: 6M 2015 – Financial result

    6M 2015 – Financial result Current income decreased by more than €40mn Income P&C Life Health Total in € '000 6M 2015 6M 2014 6M 2015 6M 2014 6M 2015 6M 2014 6M 2015 6M 2014 Current income 143,494 151,182 403,733 436,219 20,869 21,279 568,096 608,680 Income from appreciations 7,024 17,282 6,308 9,65

  20. Slide 20: Strong equity and solvency position

    6M 2015 – Strong equity and solvency position Shareholders’ equity decrease impacted by repurchase of hybrid bond Change in Group Shareholders’ Equity (€mn) -2% 197 19 5,283 -128 47 5,157 -200 -61 Equity restated Profit for Currency AFS unrealised Dividend Repurchase Other Equity as as of 12M14 the

  21. Slide 21: Appendix

    Financial Main regions highlights Investments and Appendix equity Please note: The figures for 2014 have been restated due to changes in the scope of consolidation. Financials Main regions Investments Appendix

  22. Slide 22: 6M 2015 – Key financials

    6M 2015 – Key financials Overview of KPIs Net Profit after tax and minorities (€mn) Combined Ratio (net, %) 367 100.6 96.7 97.1 95.9 234 223 193 2013 2014 6M14 6M15 2013 2014 6M14 6M15 EPS1 (€) ROE before Taxes² (%) 3.33 12.9 2.75 2.87 11.0 10.6 7.1 1.57 2013 2014 6M14 6M15 2013 2014 6M14 6M15 1: EP

  23. Slide 23: 6M 2015 – Income statement

    6M 2015 – Income statement IFRS (€mn) €mn 6M 2015 6M 2014 +/-% Gross premiums written 4,908.0 4,983.8 -1.5 Net earned premiums 4,208.9 4,321.5 -2.6 Financial result1 524.5 565.1 -7.2 Other income 50.2 58.1 -13.6 Total income 4,783.5 4,944.6 -3.3 Expenses for claims and insurance benefits -3,352.6 -3

  24. Slide 24: 6M 2015 – Balance sheet

    6M 2015 – Balance sheet IFRS (€mn) €mn 30.06.2015 31.12.2014 +/-% Intangible assets 2,370 2,370 0.0 Investments 30,239 30,360 -0.4 Unit- and index-linked investments 8,185 7,742 5.7 Reinsurers’ share in underwriting provisions 1,215 1,106 9.8 Receivables 1,619 1,502 7.8 Tax receivables and advance p

  25. Slide 25: 6M 2015 – P&L Property & Casualty

    6M 2015 – P&L Property & Casualty IFRS (€mn) €mn 6M 2015 6M 2014 +/-% Gross premiums written 2,573.7 2,563.5 0.4 Net earned premiums 1,907.7 1,926.7 -1.0 Financial result 83.1 111.8 -25.7 Other income 28.2 38.4 -26.6 Total income 2,018.9 2,076.9 -2.8 Expenses for claims and insurance benefits -1,223

  26. Slide 26: 6M 2015 – P&L Life

    6M 2015 – P&L Life IFRS (€mn) €mn 6M 2015 6M 2014 +/-% Gross premiums written 2,134.4 2,223.2 -4.0 Net earned premiums 2,105.9 2,195.6 -4.1 Financial result 421.7 435.4 -3.1 Other income 21.6 19.6 9.9 Total income 2,549.2 2,650.5 -3.8 Expenses for claims and insurance benefits -1,963.8 -2,168.8 -9.5

  27. Slide 27: 6M 2015 – P&L Health

    6M 2015 – P&L Health IFRS (€mn) €mn 6M 2015 6M 2014 +/-% Gross premiums written 200.0 197.1 1.5 Net earned premiums 195.2 199.2 -2.0 Financial result 19.7 17.9 10.3 Other income 0.5 0.1 >100 Total income 215.4 217.2 -0.8 Expenses for claims and insurance benefits -165.1 -161.3 2.3 Acquisition and ad

  28. Slide 28: 6M 2015 – P&L regions (I)

    6M 2015 – P&L regions (I) IFRS (€mn) Austria Czech Republic Slovakia €mn 6M 2015 6M 2014 +/-% 6M 2015 6M 2014 +/-% 6M 2015 6M 2014 +/-% Gross premiums written 2,286.2 2,340.6 -2.3 835.2 891.5 -6.3 388.5 387.3 0.3 Net earned premiums 1,729.7 1,788.5 -3.3 638.6 713.0 -10.4 311.1 308.7 0.8 Financial re

  29. Slide 29: 6M 2015 – P&L regions (II)

    6M 2015 – P&L regions (II) IFRS (€mn) Poland Romania Remaining €mn 6M 2015 6M 2014 +/-% 6M 2015 6M 2014 +/-% 6M 2015 6M 2014 +/-% Gross premiums written 449.4 565.3 -20.5 194.2 165.2 17.6 668.6 564.5 18.4 Net earned premiums 386.2 453.1 -14.8 122.0 87.9 38.8 486.1 409.9 18.6 Financial result 25.9 27

  30. Slide 30: 6M 2015 – P&L regions (III)

    6M 2015 – P&L regions (III) IFRS (€mn) Central Functions Consolidation TOTAL €mn 6M 2015 6M 2014 +/-% 6M 2015 6M 2014 +/-% 6M 2015 6M 2014 +/-% Gross premiums written 675.8 684.8 -1.3 -589.8 -615.4 n.a. 4,908.0 4,983.8 -1.5 Net earned premiums 534.0 563.4 -5.2 1.2 -2.9 n.a. 4,208.9 4,321.5 -2.6 Fina

  31. Slide 31: 6M 2015 – Results by country (I)

    6M 2015 – Results by country (I) IFRS (€mn) GWP P&C GWP Life GWP Health GWP Total 6M 6M 6M 6M 6M 6M 6M 6M +/-% +/-% +/-% +/-% 2015 2014 2015 2014 2015 2014 2015 2014 Austria 1,122.4 1,121.4 0.1% 973.7 1,035.1 -5.9% 190.2 184.1 3.3% 2,286.2 2,340.6 -2.3% Czech Rep. 440.4 442.7 -0.5% 394.7 448.8 -12.1

  32. Slide 32: 6M 2015 – Results by country (II)

    6M 2015 – Results by country (II) IFRS (€mn) Profit before Taxes Net Combined Ratio 6M 2015 6M 2014 +/-% 6M 2015 6M 2014 +/-%p Austria 85.7 126.9 -32.5% 96.6% 99.7% -3.1 Czech Rep. 88.1 85.8 2.7% 89.8% 88.7% 1.0 Slovakia 26.2 25.7 2.0% 95.6% 94.5% 1.1 Poland 28.2 33.7 -16.3% 96.8% 96.0% 0.8 Romania

  33. Slide 33: P&C Claims and cost ratio details

    6M 2015 – P&C Claims and cost ratio details Claims ratio 6M y-o-y regional development (net, %) Remarks for claims incurred 6M14 6M15 Austria: claims ratio down 4.0%p driven by development of Donau Versicherung (less business volume in Italy) -4.0 +6.2 -1.2 Stable claims ratios in the Czech Republic

  34. Slide 34: 2Q 2015 – Income statement

    2Q 2015 – Income statement IFRS (€mn) €mn 2Q 2015 2Q 2014 +/-% Gross premiums written 2,152.1 2,252.6 -4.5 Net earned premiums 1,998.2 2,109.0 -5.3 Financial result1 251.1 289.3 -13.2 Other income 21.9 30.5 -28.2 Total income 2,271.3 2,428.8 -6.5 Expenses for claims and insurance benefits -1,622.8 -

  35. Slide 35: 6M 2015 – Exchange rates

    6M 2015 – Exchange rates 6M 2015 6M 2014 Balance Sheet Balance Sheet Country Currency P & L EUR P & L EUR EUR EUR Albania EUR/ALL 140.2900 140.2398 140.2600 140.2106 Belarus EUR/BYR 16,974.0000 16,408.1492 13,890.0000 13,529.0055 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.9558 1.9

  36. Slide 36: VIG share (I)

    VIG share (I) Current analyst recommendation split Share price development 6M 2015 Sell Buy High EUR 42.620 Low EUR 30.775 Price as of 30 June EUR 30.775 Average daily volume EUR 8.2 mn Market cap. EUR 3.9 bn Development YTD % -17.0 Hold VIG compared to ATX and Stoxx Europe 600 Ins. 135 125 115 105

  37. Slide 37: VIG share (II)

    VIG share (II) General information Shareholder structure Number of common shares: 128mn ISIN: AT0000908504 ~30% Wiener Städtische Free Float Listings: Wechselseitiger Versicherungsverein - Vienna – since 17 Oct. 1994 Vermögensverwaltung – Vienna Insurance Group ~70% Prague – since 5 Feb. 2008 Ticker

  38. Slide 38: Contact details

    Contact details Investor Relations Financial calendar 2015 Investor Relations Team Date Event Vienna Insurance Group Schottenring 30, 1010 Vienna Publication: Preliminary E-Mail: [email protected] 27 Jan. 2015 unconsolidated premiums 2014 www.vig.com/ir Nina Higatzberger (Head of IR) 14 Apr

  39. Slide 39: Disclaimer

    Disclaimer 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 pa

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