geschäftsentwicklung 2010 vienna insurance group · without unit- and index-linked life insurance...

Geschäftsentwicklung 2010Vienna Insurance Group

There are people behindevery number

VIENNA INSURANCE GROUP AGWiener Versicherung Gruppe

Vienna, May 3rd 2013

22nd Annual General Meeting

Highlights 2012

Highest profit in the Company‘s history, increase of profit after taxes and minority interes ts of about 10%

Consolidation of market leadership in CEE core mark ets of about 19% market share

Pleasing VIG share performance in 2012: +32%

Streamlining of market presence through mergers in Poland , Romania, Bulgaria and Croatia

Expansion of involvement in Poland and Macedonia

Strong social commitment, e.g.: VIG Social Active D ay

Vienna Insurance Group

3

Awards

4

Wiener Städtische is No.1 according to a representative survey andassociated with values such as security, stability and success

Kooperativa Prague in the top 10 of the most admired Czech enterprises

InterRisk recognized for the sixth time in a row for being one of the „Large Pearls“ in the Polish Economy

BCR Life: Market position once again confirmed at the „Piata Financiara Gala Awards“ by receiving the „Insurer of the Year 2012“award in the life insurance segment

Bulstrad: property insurer of the year 2012 andbest motor insurance product in Bulgaria

DONAU Brokerline honoured with Award for Service-Quality

s Versicherung awarded with „Recommender 2012“ prize in the category „Region and Special Insurance“

Rating

5

Standard & Poor’s

confirms excellent rating of

„A+“ with stable outlook

VIG is the best rated company in the ATX

Forbes lists VIG as 4 th biggest publicly traded austrian company (no. 723 in the world)

VIG among the TOP 20 European insurance companies

Geschäftsentwicklung 2010Vienna Insurance Group

We have anabsolute majority

of women

Female representation in the VIG

58% ratio of women in the Group

40% women in senior positions (incl. sales)

20% women on management boards

� triple the level of the average share of the 61 biggest German insurance companies

33% of new positions on management board were filled by women in 2012

7

Geschäftsentwicklung 2010Vienna Insurance Group

You can counton our numbers

Results of the financial year 2012

VIG continues to grow stronglyRecord premium volume and result

Premium growth to about EUR 9.7 bn (+9.0%)

Increase in profit before taxes to EUR 587.4 m. (+5 .1%)Profit after taxes and minority interests of EUR 44 6.2 m. (+9.7%), stronger growth than in premium volume

Excellent combined ratio (net) of 96.7%

CEE share of premium volume and profit > 50%

Year-end result 2012

Vienna Insurance Group

10

IFRS

VIG – Income statement

11

in EUR m. 2012 2011 +/- in %

Premiums written 9,685.67 8,883.67 +9.0%

Net earned premiums 8,996.81 8,122.82 +10.8%

Expenses for claims and insurance expenses -7,590.35 -6,535.96 +16.1%Acquisition and administrative expenses -1,814.89 -1,752.65 +3.6%Financial result incl. at equity consolidated companies

1,240.52 931.61 +33.2%

Other income and expenses -244.68 -206.81 +18.3%

Profit before taxes 587.41 559.01 +5.1%

After taxes and non-controlling interests

446.19 406.75 +9.7%

Rundungsdifferenzen Rounding differences

Premium income

Gross written premiums according to segments, IFRS, in EUR m.

Premiums

Premium increase in all lines of businesses

Property/Casualty Life Health

13

+2.1% +17.2%

+9.0%

+8.7%

4,673.44 4,620.72

9,685.67

4,579.30 3,944.22

8,883.67

391.51 360.15

*

+35.0%

Gross written premiums according to regions, IFRS, in EUR m.

Premiums

* AL, BA, BG, DE, EE, FL, GE, HR, HU, LT, LV, MK, RS, TR, UA

** VIG Holding, VIG RE, VIG Fund, BIAC, Central Point, ELVP, LVP, Neue Heimat Holding, Progress, TBIH as well as non profit housing societies

Record premium volume:growth driver CEE

Austria Czech Republic

Slovakia Poland Romania Remaining markets*

Central functions**

Consolidation

14

+2.1%

-1.6% +2.9% +68.9%-10.9%

+13.8%

+9.0%

4,037.50

1,823.89

684.26954.22

503.08857.19 993.67

8,883.67

4,122.53

1,795.581,611.74 1,341.44

-1,313.54

9,685.67

704.11 448.25975.56

-970.14

CEE +15.0%

2012 (2011)

Premiums – over 50% from CEE

15

AT42.7%

(45.6%)

CEE54.9%(52.0%)

Property/Casualty48.3%(51.6%)

Health4.0%(4.0%)

Life47.7%(44.4%)

CZ18.6%

(20.6%)

SK7.3%

(7.7%)

PL16.7%

(10.7%)RO

4.6%(5.7%)

others**10.1%(9.7%)

% premium share according to regions*

% share according to segments

* Not taking into account the regions „central functions“ and „consolidation“* * AL, BA, BG, DE, EE, FL, GE, HR, HU, LT, LV, MK, RS, TR, UA

Market analysis of VIG core markets

VIG: number 1

16

Vienna Insurance Group:

further extension of its

leading market position

Source: local market reports, own calculation Core markets: Austria, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia, Ukraine

market share in %

18.9%

11.5%

9.7%8.8%

VIG No.1

Italian competitor Austrian competitor German competitor

Leading market positions in Austria and CEE

17Quelle: lokale Marktberichte

Leading insurance provider excellent market position in Austria and CEE

Source: lokal market reports

No. 1 Top 3 Top 5 Top 10

Austria Poland Croatia Hungary

Czech Republic Albania Serbia Bosnia Herzegovina

Slovakia Bulgaria Ukraine

Romania Georgia Macedonia

Kernmärkte Weitere VIG-Märktecore markets other VIG markets

Country data

VIG – Austria

1919

� Biggest Austrian insurance group

� Difficult environment in life insurance

� Positive development in property and casualty insurance

� „Encourage Private Provision –Ensure Future Security“ initiative

19

VIG – Czech Republic

20

� VIG is market leader in Czech Republic representing 32.3% market share

� Since mid 2012 VIG is not only market leader in life, but also in non-life insurance business

� PČS biggest bank insurance on the Czech life insurance market

20

VIG – Slovakia

21

� Biggest insurance group on Slovakian market ( 33.6%)

� Market leader in the segments of life insurance and motor vehicle

� PSLSP with highest market growth

21

VIG – Poland

22

� Third market position: Increased market share to 11.0%

� Strong growth in the segment of life insurance

� Acquisition of Polish life insurance „Polisa“

22

VIG – Romania

23

� Difficult economic and regulatory conditions particularly influences the motor insurance business

� No.1 on the overall market as well as in the non-life segment

� Continuation of the restructuring programme in all VIG companies

� Merger of Romanian non-life insurance companies „Omniasig“and „BCR“

23

Profit before taxes in EUR m.

Profit growth s Versicherung Group

24

Successful cooperation with Erste Group

Annual average profit growth +55%

Combined Ratio

Net, in %

Excellent combined ratio of 96.65%

26

65,9 65,8

30,8 31,0

2012 2011

Kostenquote

Schadenquote

Combined Ratio96,65

96,83

Cost Ratio

Claims Ratio

decrease incombined ratio despite

high weather related claims

Assumption 2012 average weather event year:

combined ratio 94.7%

96.6596.83

30.8

65.9 65.8

31.0

Investments

as of 31 December 2012

Conservative investment strategy

28

63.0%11.0%

12.0%

7.0%

6.0%1.0%

Anleihen

Immobilien

Darlehen

Bankguthaben und Kassa

Aktien und Beteiligungen

Alternative Veranlagung

without unit- and index-linked life insurance / rounding differences

Bonds

Real estate

Loans

Deposits and cash

Equities and affiliated companies

Alternative investments

Total investments EUR 30.24 bn

about 0.2% share in PIIGS investments

Equity

29

Excellent solvability ratio of the Group

�solvability ratio more than 250%

Important for excellent S&P rating“VIG demonstrates a very strong competitive position in Austria and

CEE, very strong capitalisation, a strong and stable operating performance and a clear corporate strategy”

Profit before taxes

According to segments, IFRS, in EUR m.

Profit

31

271.51239.81

559.01

Profit after taxes and minority interests (+9.7%) grows faster than premium

volume (+9.0%)

Profit after taxes and minority interests

EUR 446.19 m. (+9.7%)

Health Profit before taxesProperty/Casualty Life

According to regions, IFRS, in EUR m.

Profit before taxes

32

***

Strong progress in a challenging environment

Austria Czech Republic

Slovakia Poland Romania Remaining markets*

Central functions**

Consolidation

* AL, BA, BG, DE, EE, FL, GE, HR, HU, LT, LV, MK, RS, TR, UA ** VIG Holding, VIG RE, VIG Fund, BIAC, Central Point, ELVP, LVP, Neue Heimat Holding, Progress, TBIH as well as non profit housing development companies

CEE-growth > +10 %

+1.2%

+4.2%

+5.1%+14.2% +69.0%

+5.1%

41.57 39.13

-20.8

0.11

+1.2%

295.27194.97

56.89

-20.45

291.88

187.11

54.12

36.41

-12.99

23.15

-20.48

559.01

587.41

2012

Evolution of profit before taxes according to regions

33

Over 50% of profit from CEE

non CEE

50%

Trend in profit before taxes, indexed

Comparison with competitors

34

VIG: long-term

continuous profit growth

Germ. competitor

Austr. competitorItal. competitor

301

223

82

*

Source: local market reports, own calculation * extraordinary earnings resulting from the sales of 2 insurance companies in Austria and Romania due to cartel resons

1,0061,071

1,107 1,163

VIG Holding standalone

VIG Holding standalone

36

in EUR m. 2012 2011 +/- in %

Premiums written 898.27 818.69 +9.7% direct business 26,505 5,790 +357.8% indirect business 871,766 812,901 +7.2%Technical result 39.04 35.23 +10.8%Financial result according to UGB 220.42 195.69 +12.6%Revaluation of others -8.16 8.80 -

PBT according to UGB 251.30 239.72 +4.8%Rundungsdifferenzen

Rounding differences

Dividend

Dividend

38

� Recommended increase in dividend

� Dividend yield of approximately 3%

dividend per share in EUR payed dividend in total EUR millions

0.901.00

1.101.20115.2

128.0140.8

153.6

Group Embedded Value

in EUR m.

Group Embedded Value 2012

40

Embedded value increased once again

* Restated and adjusted Embedded Value

Return on Group Embedded Value

EUR 736.4 m.(+14.4%)

5,131.2

5,867.6

New business margin; in %

Group Embedded Value 2012

41

Excellent new business margin in CEE

compared to general international level

Benchmark values:

CEE 4 – 4.5%Austria/West Europe < 2.0%

2.0

5.8

4.3

Austria/Germany

Geschäftsentwicklung 2010Vienna Insurance Group

Social involvementis more than

just a headlinefor us

High social, environmental and cultural responsibility

Social Active Day 2012

Social awareness

44

� Extended by 8 to 17 countries� Participation rate „Social Active Day“�4.195 employees � 19 man-years of volunteer time�around 1/3 of all employess in administration across the

Group � Voluntary activities of employees�care of children

(with special needs, learning aid, acquisition of speech, etc.)�care of elderly and dependent persons�distribution of food to the homeless and families threatened

by the risk of poverty�participation on renovations etc.

Exemplary list, company‘s social commitments and sponsoring

High social responsibility

45

� Volkshilfe Österreich

� Bátor Tábor – Camp for ill children in CEE

� Günter Geyer Social Active Award

These activities are supported to a large extent by the main shareholder of Wiener Städtische Versicherungsverein

� VIG Kids Camp

� Around 500 children of VIG employees from 19 countries between 9 and 13 years of age have participated

� The motto „I‘m painting my summer“

� The participants spent 14 days in three different summer camps and shared new and interesting experiences with children from other European countries

VIG Czech Republic / Austria

Environmental Awareness

* Leadership in Energy and Environmental Design 46

� New headquarter for Kooperativa and ČPP

- with 87 points out of a total of 110 the building received the LEED*-certification (platinum) and is therefore leader in Europe

- awarded for „Best Office Building 2011“ at the international real estate trade fair MIPIM

Kooperativa and ČPP

under one roof

� Office modernisation in the Vienna Ringturm

� Significant energy savings by installing 1,000 LED lights� Using a modern solution to meet sustainibility demands

� Use of district heating

� Wiener Städtische uses district heating for office locations in Vienna� 1,575 tonnes reduction of CO2 emissions certified by the Vienna University of

Technology

Exemplary list

Cultural Engagements

47

� Ringturm wrapping� Architecture in the Ringturm� Gustav Mahler Youth Orchestra� Essl Art Award CEE� Český Krumlov (Musicfestival)� Danubiana

VIG supports students

Recruiting Events and Cooperation

48

� Extensive support for universities and students � Karl Seitz Foundation

� Foundation Vienna University of Technology and Vienna University for Economics and Business

� University Bratislava/Brno

� IEDC – Bled School of Management� VIG awarded five female students from CEE with scholarships as part

of the cooperation

� European Fund for the Balkans� 10-month programme „Leadership Development Programme“ incl.

Summer-Academy in Austria and Slovakia

� Offering scholarships to students from CEE

Outlook 2013

49

Consequent continuation of success strategy in the recent years with focus on:

�Growth above market

�Continuous increase in profitability

�Taking into account the economic environment to keep volatility to a minimum

Many thanks for your attention!

Geschäftsentwicklung 2010Vienna Insurance Group