Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — Baader Investment Conference 2019

34 slides from Vienna Insurance's conference presentation, Sep 26, 2019

  1. Slide 1: Investor Presentation, Baader Investment Conference

    VIENNA INSURANCE GROUP Investor Presentation Baader Investment Conference Munich, 26 September 2019

  2. Slide 2: VIG – The Leading Insurance Group in Austria & CEE

    VIG – THE LEADING INSURANCE GROUP IN AUSTRIA & CEE Premium Split Investment Split 56% 1% Represented Health 6% Others 4% in Equities 7% Share of Life single 10% Loans 6% 25 markets total premium Motor own damage 12% Deposits and cash Real Estate 16% volume Around Motor third party liability 15% 50 G

  3. Slide 3: Management Principles & Agenda 2020

    MANAGEMENT PRINCIPLES & AGENDA 2020 Creating added value and contribution to future success While maintaining management principles… …we refine the strategy for the future 1 Local entrepreneurship 1 2 Optimisation of Ensuring future 2 Multi-brand strategy business model viability 3 Multi-channel dis

  4. Slide 4: Agenda 2020

    AGENDA 2020 Review after half time Ensuring future growth Optimisation of business model Use of growth potentials Digitalisation Anti-Fraud-Management Health insurance  >150 ongoing digitalisation projects  Roll-out in 13 companies in 10 countries 58% premium increase in the 5 key countries of BG,

  5. Slide 5: Bancassurance

    BANCASSURANCE Pilot projects contribute to growth especially in non-life business  Integral part of Agenda 2020  Focus on increasing sale of P&C and health business via banks  Successful cooperation in 11 countries CZ  Total premium volume as of 6M 2019: €675mn (+8%) SK  Life: +7%, Non-Life: +1

  6. Slide 6: Targets & Outlook

    TARGETS & OUTLOOK Despite increased global macroeconomic uncertainty, VIG confirms its outlook Gross written Profit before Combined premium taxes Ratio VIG targets continuous VIG continuously strives 2019 €9.9bn €500mn - €520mn to improve both, the improvement based on claims and cost ratio progress

  7. Slide 7: CEE Region Growing Stronger than EU-15

    CEE REGION GROWING STRONGER THAN EU-15 Promising GDP per capita growth 2019 - 2023 Gap in GDP growth in purchasing parities CEE vs. EU-15 Forecast CAGR 8% 2019-2023 real GDP 6% 2.7% (CEE) vs. 4% 1.5% (EU-15) 2% 0% 2000 2003 2006 2009 2012 2015 2018 2021 -2% -4% real GDP growth PPP (USD) CEE real GDP

  8. Slide 8: Long-term Growth Potential

    LONG-TERM GROWTH POTENTIAL Annual insurance spending shows growth potential in Austria and CEE Insurance density 2017, in EUR (premiums per capita) Ø CEE-VIG: EUR 174 2.726 1.949 524 397 371 326 315 290 274 239 157 132 130 109 108 100 70 52 41 40 32 17 Hungary Turkey Romania Albania Lithuania Bosnia

  9. Slide 9: Excellent Market Shares Throughout the Region

    EXCELLENT MARKET SHARES THROUGHOUT THE REGION VIG best positioned to capture growth 1 2018: 25 markets Client/talent base: Country Market position Market share total 180mn people Austria 1 1 1 24.7% 10 Czech Rep. 1 2 1 31.9% 4 Slovakia 1 2 1 32.8% Poland 4 4 5 7.9% 1 2 1 Romania 1 2 2 22.8% 1 5 3 Th

  10. Slide 10: Intensification of Activities in Northern Europe

    INTENSIFICATION OF ACTIVITIES IN NORTHERN EUROPE Focus on corporate customer business in four markets  Start of operations in Sweden, Norway, Denmark and Finland to service corporate customers  Distribution via well-established local insurance brokers  Planned branch offices: Stockholm, Copenhage

  11. Slide 11: S&P Rating Confirmed in August 2018

    S&P RATING CONFIRMED IN AUGUST 2018 VIG remains best-rated company in the ATX Financial Risk Profile: Business BusinessRisk Financial RiskProfile: Profile: Very Strong Strong Strong Very Strong  „Leading market position in Austria and  Confirmation of “comfortable capital in most Central and Easte

  12. Slide 12: Attractive Dividend Policy with Newly Defined Payout Range

    ATTRACTIVE DIVIDEND POLICY WITH NEWLY DEFINED PAYOUT RANGE Payout ratio increased consistently to 47.6% by 2018 2016 2017 2018 Earnings per share 2.16 2.23 2.04 NEW DIVIDEND POLICY (€) Dividend per share Payout Ratio in a range of 0.80 0.90 1.00 (€) 30 – 50% of Group profits after taxes and non-cont

  13. Slide 13: Results 6M 2019 / Appendix

    STRATEGY & OUTLOOK RESULTS 6M 2019 APPENDIX 13 VIG VIENNA INSURANCE GROUP

  14. Slide 14: Highlights 6M 2019

    HIGHLIGHTS 6M 2019 VIG well on track to reach targets for 2019 and 2020 Gross written premiums Profit before taxes Earnings per Share Combined Ratio € 5,446.7mn € 257.1mn € 2.36 96.4% GWP up by 5.8% (+€296mn) PBT increased by 10.5% EPS grew by 15.7% Weather-related claims (+€24mn) impact  Strongest

  15. Slide 15: Gross Written Premiums of €5.4bn Up by 5.8%

    GROSS WRITTEN PREMIUMS OF €5.4bn UP BY 5.8% Overview by segments Gross written premiums (€mn; y-o-y chg.)  CEE growth of 7.9%; excl. consolidation effects 4.1%  Premium growth drivers are Poland (+€89mn) and the Baltics (+€64mn) - incl. first-time consolidation of Wiener (former Gothaer) and Seesa

  16. Slide 16: Group Profit Before Taxes of €257.1mn Up by 10.5%

    GROUP PROFIT BEFORE TAXES OF €257.1mn UP BY 10.5% Solid profit growth in all market segments except for the Czech Republic Result before taxes (€mn; y-o-y change)  AT: €11mn profit growth; positive developments in life and health fully offset decline in P&C  CZ: €7mn decrease driven by lower finan

  17. Slide 17: Solvency Ratio of 238% as of 30 June 2019

    SOLVENCY RATIO OF 238% AS OF 30 JUNE 2019 Calculation based on Partial Internal Model (PIM) in €mn 239% 238% YE 2018 6M 2019  Results include volatility adjustment  Solvency target range 170% - 230% 7,734 8,122 3,241 3,407 Solvency II SCR Solvency II SCR Own funds Own funds 17 RESULTS 6M 2019 VIG

  18. Slide 18: Summary & Cornerstones of VIG's Equity Story

    SUMMARY & CORNERSTONES OF VIG’S EQUITY STORY INVEST IN GROWTH INVEST IN RELIABILITY INVEST IN VISION INVEST IN RESPONSIBILITY  25 markets, primarily in the  Sustainable dividend policy  Targeted use of technology in  High commitment to linking CEE region distribution, product design and financia

  19. Slide 19: Results 6M 2019 / Appendix

    STRATEGY & OUTLOOK RESULTS 6M 2019 APPENDIX 19 VIG VIENNA INSURANCE GROUP

  20. Slide 20: Managing Board as of 1 January 2020

    MANAGING BOARD AS OF 1 JANUARY 2020 Elisabeth Stadler, CEO Franz Fuchs Liane Hirner, CFO Peter Höfinger Peter Thirring Gerhard Lahner Gabor Lehel Harald Riener Regional and functional responsibilities will be available in due course on www.vig.com; Copyright of pictures: Ian Ehm, Gerhard Wilke, Petr

  21. Slide 21: 6M 2019 Key Financials

    6M 2019 KEY FINANCIALS Overview of KPIs Net result for the period after taxes and non-controlling interest (€mn) ROE after taxes and non-controlling interests1 (%) 147 151 7.2 7.2 137 6.4 6M 17 6M 18 6M 19 6M 17 6M 18 6M 19 EPS net of hybrid interest1 (€) Book value per share2 (€) 2.36 30.63 31.60 3

  22. Slide 22: Half-Year Result Up by 10.5% Despite Lower Financial Result

    HALF-YEAR RESULT UP BY 10.5% DESPITE LOWER FINANCIAL RESULT 6M 2019 Income statement €mn 6M 2019 6M 2018 +/- % Gross premiums written 5,446.7 5,150.3 5.8 Net earned premiums 4,621.8 4,354.9 6.1 Financial result1 423.2 511.3 -17.2  Financial result (incl. at equity consolidated companies) down Other

  23. Slide 23: 6M 2019 Balance Sheet

    6M 2019 BALANCE SHEET IFRS (€mn) €mn 30.06.2019 31.12.2018 +/- % Intangible assets 2,200 1,961 12.2 Investments 37,852 36,288 4.3 Unit- and index-linked investments 8,437 8,049 4.8 Reinsurers’ share in underwriting provisions 1,329 1,136 17.0 Receivables 1,830 1,563 17.1 Tax receivables and advance

  24. Slide 24: Financial Result Decreased by 14.1%

    FINANCIAL RESULT DECREASED BY 14.1% Stable current income supported by contribution from housing societies Total TEUR 6M 2019 6M 2018 +/- % Current income 658,410 647,126 1.7  Financial result down by €67mn excl. at equity Income from appreciations 14,682 7,060 >100 consolidated companies  Overall

  25. Slide 25: Investment Split & Bond Portfolio Overview

    INVESTMENT SPLIT & BOND PORTFOLIO OVERVIEW Resilient and stable portfolio mix 6M 2019: Total €39.3bn Bond portfolio by rating1 4.1% 1.1% 6.2% AAA AA A BBB Other 6M 2019 9% 32% 37% 18% 4% 6.3% 12M 2018 10% 32% 35% 17% 6% 5.7% 66.6% Bond portfolio by issuer 10.0% 6M 2019 52% 7% 18% 23% Bonds Deposits

  26. Slide 26: 6M 2019 Premiums by Business Lines and Country (I)

    6M 2019 PREMIUMS BY BUSINESS LINES AND COUNTRY (I) IFRS (€mn) MTPL Casco Other property 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % Austria 188.7 188.1 0.3 169.8 162.5 4.4 859.0 822.1 4.5 Czech Republic 156.8 149.4 4.9 125.8 123.5 1.9 258.3 264.4 -2.3 Slovakia 78.2 79.5 -1.6 53

  27. Slide 27: 6M 2019 Premiums by Business Lines and Country (II)

    6M 2019 PREMIUMS BY BUSINESS LINES AND COUNTRY (II) IFRS (€mn) Life regular Life single Health 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % Austria 646.5 643.5 0.5 136.8 144.3 -5.2 215.4 209.6 2.7 Czech Republic 319.7 305.8 4.5 24.6 31.6 -22.2 7.9 6.9 14.6 Slovakia 90.5 85.5 5.8

  28. Slide 28: 6M 2019 Country Overview GWP / PBT / Combined Ratio

    6M 2019 COUNTRY OVERVIEW GWP / PBT / COMBINED RATIO IFRS (€mn) GWP Total Result before taxes Combined Ratio net (in %) 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- % 6M 2019 6M 2018 +/- %p Austria 2,216.2 2,170.0 2.1 87.9 76.7 14.6 95.3 95.3 0.0 Czech Republic 893.1 881.7 1.3 77.5 84.9 -8.8 94.9 94.6 0

  29. Slide 29: VIG Share (I)

    VIG SHARE (I) Number of common shares: 128,000,000 / ISIN: AT0000908504 General information Current analyst recommendation split Current listings Ticker Rating Major Indices SELL Vienna  Vienna Stock Exchange: VIG Standard & Poor´s: ATX 1 BUY Prague  Bloomberg: VIG AV / VIG CP A+, stable outlook A

  30. Slide 30: VIG Share (II)

    VIG SHARE (II) Shareholder structure Free float split by region1 North America 34% Continental Europe 27% ~70% ~30% Austria 25% UK & Ireland 12% Other 2% Wiener Städtische Versicherungsverein Free Float (Mutual) 1 Split of identified shares, April 2019 (Source: CMi2i) 30 APPENDIX VIG VIENNA INSURANC

  31. Slide 31: Main Shareholder of VIG & Development of Group Structure

    MAIN SHAREHOLDER OF VIG & DEVELOPMENT OF GROUP STRUCTURE Wiener Städtische Versicherungsverein (Mutual) 1824 1992 1994 2005 2008 2010 Foundation as private mutual New corporate structure implemented: fire insurance Mutual – Main shareholder of VIG ~70% company VIG – Holding company to steer the Grou

  32. Slide 32: VIG Vienna Insurance Group

    32 APPENDIX VIG VIENNA INSURANCE GROUP

  33. Slide 33: Contact Details / Financial Calendar

    CONTACT DETAILS / FINANCIAL CALENDAR Investor Relations / [email protected] / www.vig.com Nina Higatzberger-Schwarz Sylvia Machherndl Financial calendar 2019/2020 Head of Investor Relations Team Leader Corporate Reporting Date Event Tel. +43 (0)50 390 – 21920 Tel. +43 (0) 50 390 – 21151 27

  34. Slide 34: 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

Vienna Insurance Group — Baader Investment Conference 2019 on 6ix