PROTECTING WHAT MATTERS.
July 2020
CORPORATE PRESENTATION VIG VIENNA INSURANCE GROUP OVERVIEW WELCOME TO VIENNA INSURANCE GROUP!
We are the leading Around Represented in insurance group in Austria, Central and Eastern Europe. 50 30 Group companies countries
Cooperation with More than More than Erste Group 25,000 22million the largest retail bank in CEE employees customers
VIG share listed VIG share since on the Vienna & Prague Standard & Poor‘s Rating 1994 STOCK A+ on the Vienna Stock Exchange EXCHANGE with stable outlook
3 OVERVIEW VIG VIENNA INSURANCE GROUP AT HOME IN 30 COUNTRIES
4 OVERVIEW VIG VIENNA INSURANCE GROUP THE LEADING INSURANCE GROUP IN AUSTRIA AND CEE
Our market position in Austria, Central and Eastern Europe
No. 1 Top 5
>10 Last updated – Q4 2019
5 OVERVIEW VIG VIENNA INSURANCE GROUP YOU CAN COUNT ON US
KEY FIGURES 2019
PREMIUM VOLUME PROFIT (BEFORE TAXES) COMBINED RATIO € 10.4bn € 522m 95.4%
SOLVENCY RATIO FINANCIAL RESULT INVESTMENTS NET RESULT
210% € 1,011m € 36bn € 331m
6 OVERVIEW VIG VIENNA INSURANCE GROUP VIENNA INSURANCE GROUP IN CEE: WE CAME TO STAY
Vienna Insurance Group generates over half of its premiums and profit in CEE.
Premiums Profit
CEE Non-CEE CEE Non-CEE ~57% ~ 43% ~ 53% ~ 47%
Status: Results 2019 Non-CEE: Austria, Germany, Liechtenstein
7 OVERVIEW VIG VIENNA INSURANCE GROUP CAPITAL MARKETS – KEY FACTS ABOUT VIG SHARE
MAIN SHAREHOLDER FREE FLOAT STANDARD & POOR´S ~70% ~30% A+ Wiener Städtische VIG share is listed on the ATX, rating with Versicherungsverein the index of leading shares on stable outlook the Vienna Stock Exchange, and on the Prague Stock Exchange
DIVIDEND
1.15 Euro* KEY SHARE FIGURES * Proposed Dividend 2019 132.89 m 4.5 % Share capital (EUR) Dividend yield for 2019
Dividend Policy: 128 m The dividend policy defines a payout ordinary shares ratio in the range of 30 to 50% of Group profits after taxes and non- ~3.3 bn controlling interests. The aim is to keep Market capitalisation the dividend per share aligned with status: 31 December 2019 Group performance. The dividend (EUR) payout ratio 2019 amounts to 44.4%
8 OVERVIEW VIG VIENNA INSURANCE GROUP OUR MANAGEMENT
Gerhard Lahner Harald Riener Peter Thirring Elisabeth Stadler Liane Hirner Peter Höfinger Member of the Managing CEO Member of the Managing Board Gábor Lehel Member of the Managing CFO Member of the Managing Board Chair of the Managing Board Member of the Managing Board Member of the Managing Board Management & Board Board External incoming reinsurance, Corporate and large Asset Management, Sales Initiatives Strategic Questions, Group IT, Finance and Accounting, customer business Asset Liability Management, Customers and SME, Group Development and Strategy, Actuarial Department, Betriebsorganisation, Enterprise Risk Vienna International Treasury/Capital market Assistance Planning and Controlling, Personal Insurance Motor and Management, Underwriters (VIU), Countries: MD, PL, RO, UA General Secretariat and Legal, Countries: BA, HR, HU, MK Property Insurance Asset-Risk Management, Group Reinsurance Affiliated companies department, Countries: GE, LI, SK, TR Countries: AL, KO, Baltics, European Affairs, Data Management & BG, MNE, Nordics, Group Communications & Marketing, Processes RS Group Sponsoring, Countries: BY, DE
Bancassurance and international Ehm
partnerships, Ian : : Human Resources Responsibilities of the entire Managing Board: Group Compliance, Internal Audit, Investor Relations Countries: AT, CZ Photos
AL: Albania, AT: Austria, Baltic States: Estonia, Latvia, Lithuania, BA: Bosnia and Herzegovina, BG: Bulgaria, BY: Belarus CZ: Czech Republic, DE: Germany, GE: Georgia, HR: Croatia, HU: Hungary, KO: Kosovo, LI: Liechtenstein, MD: Moldova, MK: North Macedonia, MNE: Montenegro, Nordics: Denmark, Finland, Norway, Sweden, PL: Poland, RO: Romania, RS: Serbia, SK: Slovakia, TR: Turkey, UA: Ukraine.
9 OVERVIEW VIG VIENNA INSURANCE GROUP FIRST MOVER IN CEE
Expansion to Eastern Europe shortly after the fall of the Iron Curtain 1989 1 bn Euro Premium volume ~5,600 employees 3 Group companies Austria
1996 1999 2002 2004 2007 2010 2014 Hungary Liechtenstein Bulgaria Slovenia Albania Montenegro Moldova Croatia Belarus Ukraine Kosovo Italy North Macedonia Turkey
Czech Republic Estonia Slovakia Latvia Bosnia and Germany Poland Romania Serbia Georgia Lithuania Herzegovina 2018 1990 1998 2001 2003 2005 2008 2011 France
2019 2020 Sweden Norway > 10 bn Euro* Denmark Premium volume ~25.000 employees ~50 Group companies 30 countries * Results 2019
10 OVERVIEW VIG VIENNA INSURANCE GROUP A LOOK AT OUR HISTORY The Group’s origins go back to 1824.
1824 Second World War 1952 14 June 1955 1971 Both office buildings on A new headquarters on The Ringturm – Austria’s Acquisition of a stake in Kärntner Ring in Vienna Vienna’s Schottenring is first modern high-rise Donau Versicherung AG are destroyed during air commissioned. office building – opens. (founded in 1867) lays raids. After the end of It symbolised Austria’s the foundations for Establishment of the war, the company’s post-war economic today’s multi-brand Wechselseitige k.k.priv. Brandschaden Versicherungs- reconstruction begins recovery and regained strategy. Anstalt, the Group’s initial with a small group of freedom. predecessor company. employees.
1990 October 1994 2005 since 2006 2008 2010 Initial plans for expansion The Group’s preference Stock market offensive Regular artistic wrapping of Second capital increase VIG Holding, the into Eastern Europe, and shares are listed on the including a capital the Ringturm as a contribution raises over EUR 1bn; management entity establishment of Vienna Stock Exchange. increase, and the VIG to art in public spaces. The cooperation agreement for the listed Group, Kooperativa in Bratislava, share is included in the wrapping is created by artists with Erste Group . is formed. in what was then ATX for the first time; from Austria and the CEE Czechoslovakia, as the Since 2008, the VIG countries where Vienna first private insurer in the share is listed on the Insurance Group has a former Communist bloc. Prague Stock Exchange. presence.
11 OVERVIEW VIG VIENNA INSURANCE GROUP INSIGHT OUR MISSION STATEMENT
13 INSIGHT VIG VIENNA INSURANCE GROUP OUR VALUES
DIVERSITY CUSTOMER PROXIMITY RESPONSIBILITY Because of our presence in 30 We have strong roots, both We draw on experience to countries, primarily in Central and internationally and locally. Thanks to safeguard our customers’ futures Eastern Europe, we have an in-depth our local employees, we are more than as effectively as possible. A understanding of local circumstances. familiar with the typical needs of sense of responsibility and Sharing knowledge, ideas and customers in our different countries respect are always central to our experience within the Group is part of and markets. This allows us relationships with our customers, day-to-day operations. Diversity is one to offer tailored solutions and business partners, shareholders of our success factors and core values. maximise customer satisfaction in all and society as a whole. In a way, it is part of Vienna Insurance of our markets. Group’s DNA.
14 INSIGHT VIG VIENNA INSURANCE GROUP OUR CORPORATE STRATEGY
We focus on providing our customers in Austria and CEE with customised products and services tailored to their needs. Our strategy is geared towards long-term profitability and continuous earnings growth, making us a reliable and stable partner in rapidly changing times.
The core elements of our strategy: CORE BUSINESS INSURANCE
FOCUS ON AUSTRIA & CEE
Newald
: Robert Photo
15 INSIGHT VIG VIENNA INSURANCE GROUP OUR MANAGEMENT PRINCIPLES
1 Local entrepreneurship Knowledge of local needs and markets Decentralised structures and efficient decision-making procedures
Multi-brand strategy 2 Around 50 Group companies in 30 countries Utilisation of established local brands
Multi-channel distribution 3 Various distribution channels, including partnership with Erste Group Strongly customer-oriented distribution
Conservative investment and 4 reinsurance policy Quality, peace of mind and sustainability are our priorities Spreading risk by means of diversification
16 INSIGHT VIG VIENNA INSURANCE GROUP OUTLOOK MANAGEMENT PROGRAMME AGENDA 2020
We focus on leveraging market potential to generate profits, while also ensuring its ability to meet future challenges and pursuing a business model that maximises cost effectiveness. The Agenda 2020 measures will be implemented in close collaboration with the local Group companies by 2020.
OPTIMISATION OF BUSINESS ENSURING FUTURE MODEL VIABILITY To this end, we are taking measures to maximise cost In this regard, our main concerns are changes in effectiveness: fine-tuning our claims management and lifestyles and people’s habits, as well as the impact underwriting by reducing the number of cases of of demographic and economic changes on the insurance fraud, as well as identifying and avoiding industry: namely the future of insurance and digitisation, excessive claims payments, and much more. the insurance expanding our range of assistance services, and much more.
ORGANISATION AND COOPERATION We have specified the ways in which VIG Holding and the operating Group companies work together. The Holding advises and supports the Group companies, taking a managerial and facilitating role. We work as partners and as a team, with a focus on generating long-term added value for the Group companies.
18 OUTLOOK VIG VIENNA INSURANCE GROUP MANAGEMENT PROGRAMME AGENDA 2020
Examples of areas and measures taken under Agenda 2020:
Focus on health insurance 1 Five focus countries: Poland, Romania, Bulgaria, Hungary and Turkey Premium increase 2019 +42 % in these five focus countries
Promotion of Bancassurance 2 Focus on sales of health and property insurance Extension of cooperation agreement with Erste Group until the end of 2033
Expansion of reinsurance business 3 As the leading reinsurer in CEE, focus on expanding third-party business to become the main contributor to results Establishment of branches of the own reinsurance company VIG Re in Frankfurt and Paris
Innovation & Digitisation 4 Around 180 ongoing digitisation projects in the Group under implementation Own corporate start-up "viesure" established Cooperations with Digital Impact Lab in Leipzig and global innovation platform "Plug and Play" in Silicon Valley Own digitisation initiative "VIG Xelerate" to promote the Group's own digitisation projects Interests in start-ups i.e. „ViveLaCar“
Expansion of assistance services 5 Development of own assistance companies 2019 over400,000 assistance cases were handled by own companies Use of the latest self-developed software for accident and breakdown assistance
19 OUTLOOK VIG VIENNA INSURANCE GROUP WE STILL SEE GREAT POTENTIAL IN CEE
Insurance density in CEE is significantly lower than in Western Europe and Austria.
Insurance density 2018 in EUR (premiums per capita)
EU-15 2 764,9 Austria 1 939,8 Czech Republic 541,5 Slovakia 379,6 Poland 370,2 Hungary 330,9 Croatia 318,9 Lithuania 313,6 Bulgaria 183,8 Serbia 120,5 Romania 111,5 Bosnia and H. 109,7 Turkey 104,8 North Macedonia 77,6 Ukraine 35,4
20 OUTLOOK VIG VIENNA INSURANCE GROUP FORESIGHT OUR EMPLOYER BRANDING
Vienna Insurance Group is committed to being an attractive employer and strengthening its position in this regard. This is reflected in our professional corporate image and the respect we show for job applicants. In 2019, our efforts were awarded multiple times.
However, excellent employer branding starts with a company's existing employees. We want our employees to be proud to work for us. Satisfied employees serve as ambassadors inside and outside the company. Development opportunities, coupled with the feeling of being respected, result in increased motivation and improved performance.
DIVERSITY IS PART OF EVERYTHING WE DO
We see diversity as a reflection of the similarities and differences that we encounter at VIG Holding, in our markets, at the local Group companies, as well as our partners, customers and employees. Diversity management involves genuine respect for an open-minded approach and conscious efforts to capitalise on our diversity. We offer impartial access to our wide range of training and development options, Group-wide networking possibilities and international career opportunities.
22 FORESIGHT VIG VIENNA INSURANCE GROUP OUR SUSTAINABILITY STRATEGY
We are a responsible, forward-looking company, and we are committed to linking our financial targets with social and environmental aspects.
Our activities are focused on: CSR IN OUR CORE BUSINESS SOCIETY Sustainable management and compliance Involving the community with rules and regulations
CUSTOMERS ENVIRONMENT Responsibility for products and customers An environmentally friendly mind-set EMPLOYEES Treating employees with respect
23 FORESIGHT VIG VIENNA INSURANCE GROUP SOCIAL COMMITMENT
Fulfilling our social responsibility to people in the 30 countries where the Group is represented, by promoting numerous projects, reflects the company’s perception of itself. Many of these initiatives are in general supported by the Group’s main shareholder, Wiener Städtische Versicherungsverein.
SOCIAL ACTIVE DAY VIG KIDS CAMP Vienna Insurance Group gives employees time off to Every year, around 500 children of all Group company spend a day working voluntarily on social projects. employees are invited to Austria for VIG’s Kids Camp. Every year, numerous employees in various countries send a strong signal underlining their dedication, Raising awareness from an early age charitable spirit and sense of solidarity. “The fun and entertaining activities give the youngsters an insight into the international environment in which their parents work, and the ideas of diversity and Supported by multiculturalism,” explains Günter Geyer, Chairman of the Managing Board of Wiener Städtische 39 21 Versicherungsverein. participating Group companies countries
47,380 5,923 hours of work employees taking part
Status: 2019
24 FORESIGHT VIG VIENNA INSURANCE GROUP DIVERSITY IS ONE OF OUR BEST INGREDIENTS
Vienna Insurance Group is the most diverse company in Austria.
First Place BCG* Gender Diversity Index Austria 2019 The index analyses the gender balance and pay gaps in the managing and supervisory board for the 50 largest listed companies in Austria.
*Boston Consulting Group
I see this award as confirmation of our strategy to not just define diversity as our core value, but instead view it as a competitive factor in a comprehensive diversity strategy. To us, diversity management means genuine appreciation, open acceptance and conscious use of our diversity. Elisabeth Stadler, CEO
25 FORESIGHT VIG VIENNA INSURANCE GROUP EXCELLENT EMPLOYER
FORBES GLOBAL 2000 – WORLD’S BEST EMPLOYERS RANKING Listed by Forbes as one of the 500 best employers in the world
BEST RECRUITERS D-A-CH VIG Holding leads insurance sector and is among the Top 20 employers in the German-speaking countries
BEST RECRUITERS AUSTRIA 2019/2020 VIG Holding receives gold award for Employer Branding & Recruiting three times in a row and is industry leader
26 FORESIGHT VIG VIENNA INSURANCE GROUP RECENT AWARDS
FORBES GLOBAL 2000 – AMONG THE WORLD’S LARGEST PUBLIC COMPANIES Ranked 1131 in the 2020 Forbes ranking - as fourth largest Austrian company
AMONG THE TOP 3 MOST IMPORTANT INSURANCE COMPANIES IN AUSTRIA A study by market Institut selected VIG among the three most important insurance companies for Austria
MOST INNOVATIVE INSURER 2019 Voted by Austrian financial magazine „Börsianer“ as most innovative insurance company 2019
CEO & CFO AWARDS 2019 Deloitte named Elisabeth Stadler as best international CEO and Liane Hirner as the CFO Newcomer of the Year 2019
27 FORESIGHT VIG VIENNA INSURANCE GROUP
PUBLICATION DETAILS
Presentation last updated July 2020
Publisher and proprietor Vienna Insurance Group 1010 Wien, Schottenring 30, FN 75687 f
Contact details Address: Schottenring 30, Postfach 80 A-1011 Vienna, Austria Tel.: +43 (0)50 390 ext. 22000 E-mail: [email protected] Website: www.vig.com
Produced by Group Communications & Marketing Contact: Wolfgang Haas Tel.: +43 (0)50 390 ext. 21029, E-mail: [email protected] Photos: Ian Ehm, Robert Newald, Börse Express
Note To enhance readability, this presentation does not use gender-specific language. The relevant formulations apply to both sexes, in the interests of gender equality.
Disclaimer: Although this presentation was prepared with the utmost care, such condensed information may leave an unclear or incomplete i mpression. This presentation contains forward-looking statements based on current estimates and information. The Group is not obliged to update such forward-looking statements or adapt them in view of future events or developments.