Vienna Insurance Group AG · VIE:VIG
Vienna Insurance — Q1 2011 Earnings Presentation
34 slides from Vienna Insurance's earnings presentation, May 17, 2011
Slide 1: Increasing contribution from CEE
Increasing contribution from CEE 3M 2011 results telephone conference Vienna, 17 May 2011
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 Outlook and Dividend p. 18 Peter Höfinger, Member of the Managing Board Appendix p. 19 Roland Gröll, Head of Group Finance and A
Slide 3: Highlights
Highlights Vienna Insurance Group – 3M 2011 results
Slide 4: 3M 2011 Performance Drivers
3M 2011 Performance Drivers HIGHLIGHTS € 142.8mn PBT, up by 7.0% Combined ratio (net) at 97.8%, VIG – 3M 11 Strong premium growth in CEE, coming down from YE 2010 mainly from life business in CZ due to lower claims and PL Regular premiums (excl. life single premiums) grew by 6.1% 4
Slide 5: 3M 2011 Financial Highlights (I)
3M 2011 Financial Highlights (I) PBT increase driven by CEE performance HIGHLIGHTS GWP (€mn) Profit before Tax (€mn) 8,593 541 7,899 8,019 508 441 +7.0% +2.9% 2,345 2,531 2,603 143 121 133 2008 2009 2010 3M 09 3M 10 3M 11 2008 2009 2010 3M 09 3M 10 3M 11 Net Profit after Tax and Minorities (€mn) Com
Slide 6: 3M 2011 Financial Highlights (II)
3M 2011 Financial Highlights (II) HIGHLIGHTS EPS (€)1 ROE before Tax (%) 3.41 3.41 3.16 2.97 2.96 2.66 14.3 11.6 11.3 11.3 10.0 10.5 2008 2009 2010 3M 09 3M 10 3M 11 2008 2009 2010 3M 09 3M 10 3M 11 1: before deduction of hybrid interest 6
Slide 7: P&L and Balance Sheet Details
P&L and Balance Sheet Details Vienna Insurance Group – 3M 2011 results
Slide 8: 3M 2011 Income Statement
3M 2011 Income Statement P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn 3M 2011 3M 2010 +/-% 1. Gross premiums written 2,603.4 2,531.0 2.9 2. Net earned premiums 2,078.8 2,047.2 1.5 3. Financial result 253.2 310.4 -18.4 4. Other income 25.5 32.4 -21.2 Total income 2,357.6 2,389.9 -1.4 6. Expenses for
Slide 9: 3M 2011 Balance Sheet
3M 2011 Balance Sheet P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn 3M 2011 YE 2010 +/-% Intangible assets 2,092 2,104 -0.6 Investments 28,221 28,160 0.2 Unit- and index-linked investments 5,479 5,479 0.0 Reinsurers’ share in underwriting provisions 1,190 1,118 6.4 Receivables 1,916 1,681 13.9 Tax re
Slide 10: 3M 2011 P&L – Gross Written Premiums
3M 2011 P&L– Gross Written Premiums P&L AND BALANCE Growth with different dynamics by lines and markets (€mn) SHEET DETAILS Austria: competitive motor market but sound non-motor growth; life single premiums weaker due to new tax regime Czech Republic: weak motor market; life strong both in regul
Slide 11: 3M 2011 – Expenses for Claims Incurred
3M 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 1.3% pts % Claims Ratio Austria and Czech Republic recorded loss ratio 3M 2011 3M 2010 +/- %-pts down by 2.2% pts and 4.0% pts as a Austria 62.5
Slide 12: 3M 2011 – Operating Expenses
3M 2011 – Operating Expenses P&L AND BALANCE Higher acquisitions costs and lower reinsurance commissions SHEET DETAILS Group cost ratio (net) increased by 1.6% pts % Cost Ratio Cost ratio in Austria increased by 3M 2011 3M 2010 +/- %-pts 1.9% pts due to timing differences in accounting Austria 31.
Slide 13: 3M 2011 P&L Major Items – Financial Result
3M 2011 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 3M 2011 3M 2010 3M 2011 3M 2010 3M 2011 3M 2010 3M 2011 3M 2010 Current income 109,185 41,258 220,385 249,920 8,693 9,634 338,263 300,812 Income
Slide 14: 3M 2011 Investment Split
3M 2011 Investment Split P&L AND BALANCE VIG follows a consistent investment approach SHEET DETAILS +0.2% € 28.2bn € 28.2bn ~ 4% ~ 4% Cash & Deposits ~ 1% ~ 1% Alternatives ~ 3% ~ 3% Affiliated Companies ~ 12% ~ 12% Loans ~ 14% ~ 14% Real Estate ~ 4% ~ 4% Equities ~ 62% ~ 62% Bonds YE 2010 3M 2011 1
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% 8% 8% 10% 11% 30% 29% 49% 48% 11% 11% 17% 17% 51% 52% 21% 21% YE 2010 3M 2011 YE 2010 3M 2011 Government 1 Pfandbriefe/Covered Bonds AAA AA A BBB Other Financials Corpor
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% ~8% Austrian housing societies Entities are governed by a specific legal ~22% ~23% framework Rents are subs
Slide 17: 3M 2011 Shareholders' Equity
3M 2011 Shareholders’ Equity P&L AND BALANCE Shareholders’ equity supports strong capitalisation SHEET DETAILS Change in Group Shareholders’ Equity (€mn) 115.6 -0.7 5,093.0 17.0 -3.4 -65.2 5,029.6 Increase of 1.3% over YE 2010 Equity as of YE 2010 Currency changes Changes in AFS unrealised gains Pro
Slide 18: 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
Slide 19: Appendix
Appendix Vienna Insurance Group – 3M 2011 results
Slide 20: 3M 2011 P&L – Business Segments (P&C)
3M 2011 P&L – Business Segments Property & Casualty, IFRS (€mn) APPENDIX €mn 3M 2011 3M 2010 +/-% 1. Gross premiums written 1,468.1 1,384.1 6.1 2. Net earned premiums 966.2 918.4 5.2 3. Financial result 42.6 67.6 -37.0 4. Other income 17.0 8.6 98.2 Total income 1,025.8 994.6 3.1 6. Expenses for clai
Slide 21: 3M 2011 P&L – Business Segments (Life)
3M 2011 P&L – Business Segments Life, IFRS (€mn) APPENDIX €mn 3M 2011 3M 2010 +/-% 1. Gross premiums written 1,043.0 1,062.1 -1.8 2. Net earned premiums 1,023.8 1,047.4 -2.3 3. Financial result 204.7 238.1 -14.0 4. Other income 8.5 23.8 -64.4 Total income 1,237.0 1,309.3 -5.5 6. Expenses for claims
Slide 22: 3M 2011 P&L – Business Segments (Health)
3M 2011 P&L – Business Segments Health, IFRS (€mn) APPENDIX €mn 3M 2011 3M 2010 +/-% 1. Gross premiums written 92.3 84.8 8.8 2. Net earned premiums 88.8 81.3 9.2 3. Financial result 5.9 4.7 25.1 4. Other income 0.0 0.0 >100 Total income 94.7 86.0 10.1 6. Expenses for claims and insurance benefits -7
Slide 23: 3M 2011 P&L – Split by Regions (I)
3M 2011 P&L – Split by Regions (I) Regional segments, IFRS (€mn) APPENDIX €mn Austria Czech Republic 3M 2011 3M 2010 +/-% 3M 2011 3M 2010 +/-% 1. Gross premiums written 1,284.7 1,301.1 -1.3 514.3 454.5 13.2 2. Net earned premiums 942.5 980.7 -3.9 451.6 392.6 15.0 3. Financial result 177.0 232.6 -23.
Slide 24: 3M 2011 P&L – Split by Regions (II)
3M 2011 P&L – Split by Regions (II) Regional segments, IFRS (€mn) APPENDIX €mn Slovakia Poland Romania 3M 2011 3M 2010 +/-% 3M 2011 3M 2010 +/-% 3M 2011 3M 2010 +/-% 1. Gross premiums written 188.6 181.8 3.7 258.6 176.7 46.3 144.5 147.4 -2.0 2. Net earned premiums 151.9 147.7 2.9 231.7 157.1 47.5 13
Slide 25: 3M 2011 P&L – Split by Regions (III)
3M 2011 P&L – Split by Regions (III) Regional segments, IFRS (€mn) APPENDIX €mn Remaining TOTAL 3M 2011 3M 2010 +/-% 3M 2011 3M 2010 +/-% 1. Gross premiums written 212.7 269.5 -21.1 2,603.4 2,531.0 2.9 2. Net earned premiums 168.0 234.0 -28.2 2,078.8 2,047.2 1.5 3. Financial result 16.4 16.4 -0.2 25
Slide 26: 3M 2011 Results by Country
3M 2011 Results by Country IFRS (€mn) APPENDIX €mn GWP Non-Life Life GWP GWP Total Profit before Taxes Net Combined Ratio 3M 2011 3M 2010 3M 2011 3M 2010 3M 2011 3M 2010 3M 2011 3M 2010 3M 2011 3M 2010 Austria 738.7 698.8 546.0 602.3 1,284.7 1,301.1 78.8 70.3 94.0% 94.3% Czech Rep. 287.0 285.1 227.3
Slide 27: Change in Group Shareholders' Equity
Change in Group Shareholders’ Equity IFRS (€ ‘000) APPENDIX 1.1. - 31.3.2011 1.1. - 31.3.2010 Equity as of 1 January 5,029,647 4,628,573 Exchange rate changes 17,048 36,714 Changes in scope of consolidation -3,416 -5,879 Capital increase 0 0 Unrealised gains and losses from -65,209 84,339 financial
Slide 28: Premium Portfolio
Premium Portfolio Basis of business origination substantially widened APPENDIX GWP by Geography 3M 08 GWP by Geography 3M 11 Remaining Remaining 8,6% 8.2% Romania Romania 8,7% 5.6% Poland 7.5% Poland Austria 9.9% Austria 52,6% 49,3% Slovakia 7.0% Slovakia 7.2% Czech Republic 15.6% Czech Republic 19.
Slide 29: Life Insurance Premium Split
Life Insurance Premium Split IFRS (€mn) APPENDIX Premiums written - direct business 3M 2011 3M 2010 +/- % Regular premiums 600.1 566.6 5.9% Single premiums 439.4 491.3 -10.6% Total premiums written - direct business 1,039.4 1,057.9 -1.7% thereof: Policies with profit participation 492.7 549.5 -10.4%
Slide 30: 3M 2011 Exchange Rates
3M 2011 Exchange Rates National currency unit per EUR APPENDIX 3M 2011 3M 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 7.3778 7.4018 7.2638 7.2849 Estonia EUR/EEK 1.0000 1.0000 15.6466 15.6466 Liechtenstein EU
Slide 31: 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 % 31
Slide 32: Shareholder Structure (II)
Shareholder Structure (II) Free float split APPENDIX Austria ~26 % Others ~3% North America ~27% Continental Europe ~24% UK & Ireland ~20% 32
Slide 33: 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.
Slide 34: 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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