Vienna Insurance Group AG · VIE:VIG

Vienna Insurance — FY2012 Earnings Presentation

41 slides from Vienna Insurance's earnings presentation, Apr 3, 2013

  1. Slide 1: 12M 2012 Result and Embedded Value

    12M 2012 Result and Embedded Value Conference Call for the financial year 2012 Vienna, 3 April 2013

  2. Slide 2: Presenting Team and Topics

    Presenting Team and Topics Presenting Team Topics Peter Hagen, CEO Results Overview p. 3 Martin Simhandl, CFO P&L and Balance Sheet p. 11 Peter Höfinger, Member of the Managing Embedded Value p. 22 Board Appendix p. 26 Roland Gröll, Head of Group Finance and Accounting Werner Matula, Group Actuary i

  3. Slide 3: Results 12M 2012 at a Glance

    Results 12M 2012 at a Glance Profit before taxes up 5.1% to EUR 587.4mn OVERVIEW Profit after taxes and minorities increased by 9.7% to € 446.2mn Combined Ratio of 96.65% despite above average bad Gross written premiums up 9.0% weather claims to € 9.7bn S&P confirms strong A+ rating Increased divide

  4. Slide 4: VIG Clearly Outperforms Market

    VIG Clearly Outperforms Market VIG ahead in 2012 and in 5-years-comparison OVERVIEW 8% 6.4% 6% VIG consistently 4% outpaces competitors – 2.4% even in times of crises 2% German Italian Austrian Market competitor competitor competitor VIG -0.7% -0.5% -2% -1.4% -2.1% -1.8% -2.1% -2.5% -4% -4.1% -6% Cu

  5. Slide 5: VIG Further Strengthens its Market Position

    VIG Further Strengthens its Market Position Strong market share increase in core markets OVERVIEW 25% 20% 19.1% VIG No.1 17.5% 17.5% 17.7% 15.9% 15% 11.6% Italian competitor 9.7% Austrian competitor 10% German competitor 9.1% 5% 0% 1.-3. Q 08' 1.-3. Q 09' 1.-3. Q 10' 1.-3. Q 11' 1.-3. Q 12' VIG almo

  6. Slide 6: Strong Premium Development

    Strong Premium Development Premium growth of 9.0% driven by Polish life business OVERVIEW Premium growth in CEE of 15.0% Gross written premiums (€mn) +9.0% 9,686 8,884 8,593 8,019 CEE accounts for 54.9% of overall premium income 2009 2010 2011 2012 VIG premium growth outpacing market – even adjusted

  7. Slide 7: Profit before taxes up 5.1%

    Profit before taxes up 5.1% PBT growth in CEE of more than 10% OVERVIEW Profit after tax and minorities even increased Profit before taxes (€mn) by 9.7% to EUR 446.2mn 587 559 +5.1% 508 441 50.3% of PBT generated in CEE 2009 2010 2011 2012 Strong contribution from Remaining markets: Double-digit pro

  8. Slide 8: VIG Delivers Long-term Earnings Growth

    VIG Delivers Long-term Earnings Growth Earnings before taxes (indexed 2003) OVERVIEW 1,107 1,163 VIG 1,071 1,006 866 874 636 476 309 301 Austrian competitor 100 223 German competitor 82 Italian competitor 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Successful and continuous positive long-term

  9. Slide 9: 12M 2012 – Financial Highlights

    12M 2012 – Financial Highlights Earnings per share up 10.5% to EUR 3.17 OVERVIEW Net Profit after non-controlling interests (€mn) Combined Ratio (net, %) +9.7% 446 407 380 340 98.4 96.8 96.7 96.3 2009 2010 2011 2012 2009 2010 2011 2012 EPS (€)1 ROE before Taxes (%) 3.17 2.87 2.65 2.40 10.5 11.1 10.9

  10. Slide 10: Dividend per share of EUR 1.20

    1 Dividend per share of EUR 1.20 Unchanged dividend policy OVERVIEW Dividend Payout Volume (€mn) Planned dividend payout ratio for 2012 of 34% 153.6 140.8 128.0 VIG keeping its dividend policy with a payout ratio of minimum 2010 2011 2012 1 30% of Group net profit 1: Proposal to the annual general m

  11. Slide 11: P&L and Balance Sheet Details

    P&L and Balance Sheet Details Vienna Insurance Group – 12M 2012 Results

  12. Slide 12: 12M 2012 – Income Statement

    12M 2012 – Income Statement P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn 12M 2012 12M 2011 +/-% Gross premiums written 9,685.7 8,883.7 9.0 Net earned premiums 8,996.8 8,122.8 10.8 1 Financial result 1,240.5 931.6 33.2 Other income 115.3 115.4 0.0 Total income 10,352.7 9,169.8 12.9 Expenses for claim

  13. Slide 13: 12M 2012 – Balance Sheet

    12M 2012 – Balance Sheet P&L AND BALANCE IFRS (€mn) SHEET DETAILS €mn 31.12.2012 31.12.2011 +/-% Intangible assets 2,410 2,382 1.2 Investments 29,463 28,085 4.9 Unit- and index-linked investments 6,444 5,503 17.1 Reinsurers’ share in underwriting provisions 1,034 1,117 -7.4 Receivables 1,657 1,582 4

  14. Slide 14: 12M 2012 – Gross Written Premiums

    12M 2012 – Gross Written Premiums P&L AND BALANCE Overall premium growth of 9.0% - excluding FX effects 9.8% SHEET DETAILS €mn GWP Non-life GWP Life Total 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-% Austria 2,244.2 2,087.8 7.5 1,878.3 1,949.7 -3.7 4,122.5 4,037.5 2.1 Czech R

  15. Slide 15: 12M 2012 – Expenses for Claims Incurred

    12M 2012 – Expenses for Claims Incurred P&L AND BALANCE Stable Group claims ratio despite above average bad weather claims SHEET DETAILS in % Claims Ratio Austria: stable claims ratio at 67.7% despite 12M 2012 12M 2011 +/- %-pts above average bad weather claims Austria 67.7 67.9 -0.1 Czech Republic:

  16. Slide 16: 12M 2012 – Acquisition and Administrative Expenses

    12M 2012 – Acquisition and Administrative Expenses P&L AND BALANCE Decreased cost ratio leads to overall improved CR of 96.65% SHEET DETAILS Group cost ratio (net) decreased by 0.2 pp to 30.8% in % Cost Ratio Austria: cost ratio up by 1.1 pp; increased fronting 12M 2012 12M 2011 +/- %-pts business a

  17. Slide 17: 12M 2012 – Financial Result

    12M 2012 – Financial Result 1 P&L AND BALANCE Increase of 33.2 % in financial result SHEET DETAILS Income P&C Life Health Total in € '000 12M 2012 12M 2011 12M 2012 12M 2011 12M 2012 12M 2011 12M 2012 12M 2011 Current income 405,069 499,291 909,174 906,342 45,238 45,944 1,359,481 1,451,577 Income fr

  18. Slide 18: 12M 2012 – Investment Split

    12M 2012 – Investment Split P&L AND BALANCE Investments incl. cash and cash equivalents grew by 5.5% SHEET DETAILS YE 2011: Total € 28.653mn YE 2012: Total € 30.235mn 6% 7% 1% 1% 3% 3% 12% Bonds 12% Equities Real Estate Loans Affiliated Comp. Alternatives 16% Deposits and Cash 11% 63% 59% 3% 3% Roun

  19. Slide 19: 12M 2012 – Development of Bond Portfolio

    12M 2012 – Development of Bond Portfolio P&L AND BALANCE SHEET DETAILS By Issuer By Rating 4% 4% 9% 9% 14% 13% 26% 26% 36% 37% 11% 10% 26% 28% 54% 55% 20% 18% 2 3 YE 2011 YE 2012 9M 2012 YE 2012 1 Government Pfandbriefe /Covered bonds AAA AA A BBB Other Financials Corporates 1: Government and govern

  20. Slide 20: 12M 2012 - Bond Portfolio Split by Country

    12M 2012 - Bond Portfolio Split by Country P&L AND BALANCE SHEET DETAILS Governments and Government Guaranteed Other Czech Republic 19% 27% Supras 8% 4% Germany 10% 20% 12% Slovakia Austria Poland 20

  21. Slide 21: 12M 2012 – Shareholders’ Equity

    12M 2012 – Shareholders’ Equity P&L AND BALANCE Strong equity basis of VIG unchanged SHEET DETAILS Change in Group Shareholders’ Equity (€mn) 467.3 -191.8 5,751.9 431.4 55.5 -60.3 5,049.6 Increase of 13.9% Equity as of YE Currency changes Changes in AFS unrealised Profit for the Dividend payment Equ

  22. Slide 22: Embedded Value

    Embedded Value Vienna Insurance Group – 12M 2012 Results

  23. Slide 23: Group Embedded Value 2012

    Group Embedded Value 2012 Development in €mn EMBEDDED VALUE 297 5,868 439 5,284 -66 5,218 -141 54 5,131 +14.4% GEV 2011 Restatement GEV 2011 Dividends FX Effects GEV 2011 L&H Return P&C Return GEV 2012 reported changes restated adjusted GEV of € 5,868mn as at December 31, 2012 Positive Return on GEV

  24. Slide 24: Group Embedded Value 2012 – Austria / Germany Life & Health

    Group Embedded Value 2012 MCEV of Life & Health Business in Austria / Germany (€mn) EMBEDDED VALUE 90 -102 107 1,942 37 -12 1,822 Operating Economic MCEV 2011 Value of New Roll forward Assumption Operating Investment MCEV 2012 adjusted Business 2012 changes variance income and others Operating retur

  25. Slide 25: Group Embedded Value 2012 – CEE Life & Health

    Group Embedded Value 2012 MCEV of Life & Health Business in CEE (€mn) EMBEDDED VALUE 100 1,803 31 -6 27 167 1,484 Operating Economic MCEV 2011 Value of New Roll forward Assumption Operating Investment MCEV 2012 adjusted Business 2012 changes variance income and others Operating return of 14.7% (New

  26. Slide 26: Appendix

    Appendix Vienna Insurance Group – 12M 2012 Results

  27. Slide 27: 12M 2012 P&L – Property & Casualty

    12M 2012 P&L – Property & Casualty IFRS (€mn) APPENDIX €mn 12M 2012 12M 2011 +/-% Gross premiums written 4,673.4 4,579.3 2.1 Net earned premiums 4,034.0 3,844.8 4.9 Financial result 271.7 202.0 34.5 Other income 72.7 72.1 0.9 Total income 4,378.4 4,118.9 6.3 Expenses for claims and insurance benefit

  28. Slide 28: 12M 2012 P&L – Life

    12M 2012 P&L – Life IFRS (€mn) APPENDIX €mn 12M 2012 12M 2011 +/-% Gross premiums written 4,620.7 3,944.2 17.2 Net earned premiums 4,581.6 3,916.1 17.0 Financial result 952.2 690.3 37.9 Other income 40.7 43.2 -5.8 Total income 5,574.5 4,649.7 19.9 Expenses for claims and insurance benefits -4,613.6

  29. Slide 29: 12M 2012 P&L – Health

    12M 2012 P&L – Health IFRS (€mn) APPENDIX €mn 12M 2012 12M 2011 +/-% Gross premiums written 391.5 360.2 8.7 Net earned premiums 381.2 362.0 5.3 Financial result 16.6 39.2 -57.6 Other income 1.9 0.0 >100 Total income 399.8 401.2 -0.4 Expenses for claims and insurance benefits -320.6 -308.9 3.8 Acquis

  30. Slide 30: 12M 2012 P&L – Split by Regions (I)

    12M 2012 P&L – Split by Regions (I) Regional segments, IFRS (€mn) APPENDIX €mn Austria Czech Republic Slovakia 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-% Gross premiums written 4,122.5 4,037.5 2.1 1,795.6 1,823.9 -1.6 704.1 684.3 2.9 Net earned premiums 3,333.8 3,283.1 1.5

  31. Slide 31: 12M 2012 P&L – Split by Regions (II)

    12M 2012 P&L – Split by Regions (II) Regional segments, IFRS (€mn) APPENDIX €mn Poland Romania Remaining 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-% Gross premiums written 1,611.7 954.2 68.9 448.3 503.1 -10.9 975.6 857.2 13.8 Net earned premiums 1,323.2 760.3 74.0 371.2 413.

  32. Slide 32: 12M 2012 P&L – Split by Regions (III)

    12M 2012 P&L – Split by Regions (III) Regional segments, IFRS (€mn) APPENDIX €mn Central Functions Consolidation TOTAL 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-% Gross premiums written 1,341.4 993.7 35.0 -1,313.5 -970.2 35.4 9,685.7 8,883.7 9.0 Net earned premiums 1,215.2 9

  33. Slide 33: 12M 2012 – Results by Country (I)

    12M 2012 – Results by Country (I) IFRS (€mn) APPENDIX €mn GWP Non-Life GWP Life GWP Total 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-% Austria 2,244.2 2,087.8 7.5% 1,878.3 1,949.7 -3.7% 4,122.5 4,037.5 2.1% Czech Rep. 958.5 986.9 -2.9% 837.1 837.0 0.0% 1,795.6 1,823.9 -1.6% S

  34. Slide 34: 12M 2012 – Results by Country (II)

    12M 2012 – Results by Country (II) IFRS (€mn) APPENDIX €mn Profit before Taxes Net Combined Ratio 12M 2012 12M 2011 +/-% 12M 2012 12M 2011 +/-pp Austria 295.3 291.9 1.2% 94.7% 93.7% 1.0 Czech Rep. 195.0 187.1 4.2% 87.3% 88.4% -1.0 Slovakia 56.9 54.1 5.1% 91.6% 91.5% 0.1 Poland 41.6 36.4 14.2% 97.6%

  35. Slide 35: Change in Group Shareholders’ Equity

    Change in Group Shareholders’ Equity IFRS (€ ‘000) APPENDIX in € '000 1.1. - 31.12.2012 1.1. - 31.12.2011 Equity as of 1 January 5,049,643 5,029,647 Exchange rate changes 55,494 -56,184 Changes in scope of consolidation -60,273 -517 Unrealised gains and losses from 431,431 -187,547 financial instrum

  36. Slide 36: 12M 2012 – Life Insurance Premium Split

    12M 2012 – Life Insurance Premium Split IFRS (€mn) APPENDIX Premiums written - direct business 12M 2012 12M 2011 +/- % Regular premiums 2,304.3 2,290.0 0.6% Single premiums 2,299.7 1,641.5 40.1% Total premiums written - direct business 4,604.0 3,931.5 17.1% thereof: Policies with profit participatio

  37. Slide 37: Q4 2012 – Income Statement

    Q4 2012 – Income Statement IFRS (€mn) APPENDIX €mn Q4 2012 Q4 2011 +/-% Gross premiums written 2,260.2 2,081.5 8.6 Net earned premiums 2,252.3 2,045.8 10.1 Financial result 340.6 133.0 156.0 Other income 29.8 41.8 -28.7 Total income 2,622.7 2,220.7 18.1 Expenses for claims and insurance benefits -1,

  38. Slide 38: 12M 2012 – Exchange Rates

    12M 2012 – Exchange Rates APPENDIX 12M 2012 12M 2011 Balance Balance Country Curr. P & L EUR P & L EUR Sheet EUR Sheet EUR Albania EUR/ALL 139.5900 139.0137 138.9300 140.6425 Belarus EUR/BYR 11,340.0000 10,717.6230 10,800.0000 7,313.4167 Bosnia EUR/BAM 1.9558 1.9558 1.9558 1.9558 Bulgaria EUR/BGN 1.

  39. Slide 39: VIG Share

    VIG Share APPENDIX General Information Shareholder Structure Number of common shares: 128mn Wiener Städtische Wechselseitiger ISIN: AT0000908504 Versicherungsverein - Vermögensverwaltung – Listings: Vienna Insurance Group Free Float ~70 % ~30 % Vienna – since 17 Oct. 1994 Prague – since 5 Feb. 2008

  40. Slide 40: Contact Details

    Contact Details Investor Relations APPENDIX Financial Calendar 2013 Investor Relations Team Vienna Insurance Group Date Event Schottenring 30, 1010 Vienna E-Mail: [email protected] 03 May 2013 Annual General Meeting www.vig.com/ir 13 May 2013 Ex-dividend day Nina Higatzberger (Head of IR) T

  41. Slide 41: 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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