PRESS CONFERENCE Development of Vienna Insurance Group in the - PowerPoint PPT Presentation

PRESS CONFERENCE Development of Vienna Insurance Group in the first half year 2012 Vienna, 22 August 2012

Development 2001 - 2011 Double-digit growth in premium AND profit in the last 10 years more than Profit development 2001-2011 Premium development 2001-2011 20-fold CAGR*: 12,0% CAGR: 8,5% Austrian competitor CAGR: 4,3% Italian competitor CAGR: 2,7% German competitor 2001 2003 2005 2007 2009 2011 2001 2003 2005 2007 2009 2011 2 Source: Company reports; *CAGR: Compound annual growth rate

2001 3

Wir sind Versicherer Vienna Insurance Group 2012 2012 4

Expansion in Austria and CEE 2001 2012 Countries 11 25 Companies around 20 around 50 Employees around. 10,000 around 24,000 (thereof around 4,300 (there of around 19,000 outside of Austria) outside of Austria) Listed in Vienna und Prague S&P-Rating: A+ with stable outlook (best rating in ATX) 5

VIG with stable business development 2007 - 2011 Crisis-proof: Low volatilities despite difficult times Profit before taxes Premiums written 140 VIG 135 128 VIG CAGR 6,3% 130 CAGR 6,5% 129 100 Start of crisis 125 CAGR 4,3% 120 österreichischer 118 Austrian competitor Mitbewerber CAGR -19,5% 50 42 115 CAGR 1,8% 38 CAGR -21,4% 110 italienischer 107 Italian competitor Mitbewerber 105 105 0 CAGR 1,3% 2007 2008 2009 2010 2011 100 deutscher German competitor Mitbewerber Start of crisis 95 -50 90 2007 2008 2009 2010 2011 -96 CAGR n.a. Subscripted figures 2007=100 Source: Company reports -100

VIG biggest network in CEE VIG active in 20 CEE-countries German competitor: 9 Italian competitor: 12 Austria competitor: 15 22 7 Source: Company reports

Strategic cornerstones of VIG Clear orientation 1 Concentration on insurance business 2 Focus on Austria and CEE 3 Multi-brand strategy Strategic cooperation with Erste Group 4 Local entrepreneurship 8

VIG: Highly profitable growth 2007 - 2011 VIG is growing organically 20% above market VIG Profit before 150 Taxes subscripted 100 Italian 50 competitor German 0 competitor 0 5 10 CAGR -50 Premiums written Austrian in percent competitor -100 Source: Company reports 9

CEE will grow faster than Western Europe in future GDP per capital (real, purchasing power adjusted) Economy is still growing double-times in CEE 9.9% 10.7% 10.2% 9.2% 7.5% 6.3% 6.3% 5.9% CAGR 2001-2011 6.1% 5.6% 5.0% 5.1% 5.1% 5.4% 4.6% 4.3% 4.0% 3.1% 3.0% 3.2% 3.6% 2.9% CAGR 2001-2011 3.1% 2.5% 2.1% 2.1% 2.4% 1.7% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012p 2013p 2014p 2015p -4.1% -5.8% EU-15 CEE 10 Source: International Monetary Fund, World Economic Outlook Database, September 2011

Focus CEE: Growth potential for many years Premiums written per capital (insurance density), in EUR Huge market potential in CEE 3000 2.624 2,624 2500 1,952 1.952 2000 1500 1000 548 548 388 388 364 364 500 294 294 278 278 109 109 86 76 86 76 45 45 0 EU-15 AT CZ SK PL HU HR BG RO RS UA 11 Source: Local insurance authorities

More dynamic premium per capita development in CEE CAGR 2001 - 2011 23,6% 23.6% 25,0% 20,0% 15,0% 9,4% 9.4% 10,0% 5,0% 2,3% 2.3% 0,0% EU-15 CEE VIG in CEE 1 12 Source: SIGMA

VIG best-positioned Core market analysis, Total market German Italian Austrian VIG competitor competitor competitor Austria 1. 4. 3. 2. Czech Republic* 1. 4. 2. 7. Slovakia 1. 2. 3. 5. Poland 4. 3. 8. 9. Romania 1. 3. 5. 8. Bulgaria 2. 1. 7. 8. Croatia 4. 3. 8. 10. Serbia 4. - 2. 5. Hungary 8. 1. 2. 6. Ukraine** 5. 18. 12. 2. 13 * Data 1-6 2012; ** Data 1-12 2011; Source: Local insurance authorities, 1-3 2012

Half year results and current news

Highlights Development of VIG in first half year 2012 Record result in premiums written and profit before taxes More than EUR 5.2 bn. premium income (+11.7%) Group profit surpasses the 300-million-euro-threshold - Increase of profit before taxes to EUR 301.7 mn. (+6.9%) Increase of profit before taxes in CEE by significant 13,6% Combined Ratio decreased to excellent 96.6% (-0.5%p) 15

Further highlights Multiple awards for quality Czech Republic: Kooperativa Prague 4th time in a row „Insurance of the year“ Romania: - Asirom as „best Nonlife-insurer“ awared - Merger Omniasig/BCR Nonlife sucessfully closed Croatia: Erste Osiguranje „best Bank-insurer“ Poland: - Acquisition Polisa closed - Merger InterRisk/PZM occured Russia: Sale of russian investments* Ringturm wrapped – for the first time a CEE-artist** Kids Camp 2012** * subject to official approval ** powered by the main shareholder of Vienna Insurance Group 16

Premiums Premiums written by lines of business, IFRS, in EUR mn. Premium increase in all lines of business +11.7% +11,7% +2.4% +2,4% +24,1% +24.1% 5.282,85 5,282.85 2,622.43 2.622,43 2,466.23 2.466,23 +7.5% +7,5% 194.19 194,19 Schaden/Unfall Leben Kranken VIG Property/Casualty Life Health 1-6 2011 1-6 2012 17

Premiums Premiums written by regions, IFRS, in EUR mn. CEE still growth driver +11.7% +11,7% +17.9% +17,9% +4,5% +4.5% 5,282.85 5.282,85 2.841,38 2,841.38 +91.2% -4,7% -4.7% +16,3% +91,2% 2.331,85 +5.6% +16.3% 2,331.85 +5,6% -14.5% -14,5% 358,08 358.08 952,22 235,68 927,76 235.68 927.76 952.22 477,26 477.26 Österreich Tschechische Czech Slowakei Poland Polen Romania Rumänien Übrige Märkte* Vienna Insurance CEE Austria Slovakia Remaining Republik Group Republic markets* 1-6 2011 1-6 2012 * Remaining markets: Albania, Baltic States, Bulgaria, Croatia, Georgia, Germany, Hungary, Liechtenstein, Macedonia, Serbia, Turkey, Ukraine 18

Premiums: CEE share still increasing 1-6 2012 (1-6 2011) % share by region % share by lines of business Non-CEE Property/Casualty Life 46.2% 49.6% 46.7% (49.1%) (54.2%) (42.0%) CEE 53.8% Health (50.9%) 3.7% (3.8%) 19

s Versicherung Gruppe Life, regular premiums Double-digit growth with a strong bankpartner SK RO CZ +12.2% +47.4% +17.9% Slowakei Rumänien Tschechische Republik 1-6 2012 1-6 2011 20

Top market-position in Austria and CEE Leading insurer: Excellent market-position in Austria and CEE No. 1 Top 3 Top 5 Top 10 Core market share Austria Poland 1 Croatia Hungary Czech Bosnia- Albania Serbia VIG leading with 17.3% Republic Herzegovina Slovakia Bulgaria Ukraine German competitor 9.0% Romania Georgia Italian competitor 11.9% Makedonia Austrian competitor 10.1% Core markets further VIG-markets 1 in Non-life insurance 21

Combined Ratio Net, in percent Combined Ratio decreased despite severe weather ■ Combined Ratio 97.1 97,1 96,6 96.6 claims ratio Schadenquote 65,4 65,8 65.4 65.8 Kostenquote cost ratio 31,8 31.8 30.7 30,7 1-6 2011 1-6 2012 22

Profit before taxes By lines of business, IFRS, in EUR mn. Continuing increase in profits despite difficult market conditions +6.9% +6,9% +12.1% +12,1% 301,69 301.69 +0.3% +0,3% 166.71 166,71 +5.6% +5,6% 112.38 112,38 22,60 22.60 Schaden/Unfall Leben Kranken Vienna Insurance Property/Casualty Life Health Group 1-6 2011 1-6 2012 23

Profit before taxes By regions, IFRS, in EUR mn. Considerable increase in profit in CEE by 13.6% +6,9% +6.9% +13,6% +13.6% +3,0% +3.0% 301,69 +1,7% +1.7% +2,6% 148,91 144,26 +2.6% 144.26 +14,0% +14.0% 92.91 92,91 11,35 28.01 29,30 29.30 28,01 Austria Czech Slovakia Poland Romania Remaining Österreich Tschechische Slowakei Polen Rumänien Übrige Märkte Vienna CEE Republic markets Republik Insurance -4,14 Group 1-6 2011 1-6 2012 24

Profit before Taxes 1-6 2012 (1-6 2011) % share by region % share by lines of business Non-CEE Property/Casualty 50.6% 55.3% Life (53.5%) (52.7%) 37.2% (39.7%) CEE Health 49.4% 7.5% (46.5%) (7.6%) 25

Severe weather As of 31.7.2012 Loss due to severe weather especially in Austria, Czech Republic, Romania and Poland Number of damages: over 76,700 Expenses (after reinsurance): around EUR 85 mn. 2% 2% 2% Affected countries: 5% Österreich Austria 6% Tschechische Republik Czech Republic Rumänien Romania Polen Poland Türkei Turkey 19% Slowakei Slovakia Rest Others 64% 26

Conservative investment strategy As of 30.6.2012 Total investments of around EUR 29 bn. Deposits/Cash 0,4% Bankguthaben/Depotforderungen 0.4% 11,6% 11.6% 8,3% 8.3% Anleihen Bonds Aktien Equities 12,2% 12.2% Beteiligungen Affiliated Companies Darlehen Loans 2,9% 2.9% Immobilien Real Estate Alternative Veranlagung Alternative investments 2,7% 2.7% Share of PIIGS government bonds of total investments only around 0.2% 62,0% 62.0% 27

Kids Camp 2012 – Lived social responsibility Summer, Fun and sunshine for 500 kids about 500 kids of VIG employees of 25 countries 14 days summer holidays in three different summer camps - „City Camp“ in Strebersdorf - „Country Camp“ in Wagrain - „Mountain Camp“ in Altaussee Exciting activities as hiking, expeditions through salt and stalactite caves, sightseeing in Vienna and Salzburg as well as games and swimming Advancement of intercultural exchange and contribution to a harmonic together 28

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