PROTECTING WHAT MATTERS.
April 2021
CORPORATE PRESENTATION VIG VIENNA INSURANCE GROUP OVERVIEW WELCOME TO VIENNA INSURANCE GROUP!
We are the leading Around Represented in insurance group in Central and Eastern Europe. 30 50Group companies countries
Cooperation with More than More than
Erste Group million the largest retail bank in CEE 25,000employees 22customers
VIG share listed VIG share since on the Vienna & Prague Standard & Poor‘s Rating STOCK A+ 1994on 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 CAPITAL MARKETS – KEY FACTS ABOUT VIG SHARE
MAIN SHAREHOLDER FREE FLOAT STANDARD & POOR´S
~ % ~ % A+rating with Wiener72 Städtische VIG 28share is listed on the ATX, Versicherungsverein the index of leading shares on stable outlook the Vienna Stock Exchange, and on the Prague Stock Exchange
DIVIDEND POLICY
0.75 Euro* KEY SHARE FIGURES *Dividend proposal for 2020 132.89 m 3.6%** Share capital (EUR) Dividend yield for 2020
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- ~2.66 bn controlling interests. The aim is to keep Market capitalisation the dividend per share aligned with Status: 31 December 2020 Group performance. The dividend (EUR) payout ratio 2020 amounts to 41.5%**
** According to dividend proposal for 2020
5 OVERVIEW VIG VIENNA INSURANCE GROUP THE LEADING INSURANCE GROUP IN CEE
Our market position in Central and Eastern Europe
No. 1 Top 5
>10 Status: 1st to 3rd quarters of 2020 (HU: Q4 2019, Sl: 1st half of 2020)
6 OVERVIEW VIG VIENNA INSURANCE GROUP YOU CAN COUNT ON US
KEY FIGURES 2020
PREMIUM VOLUME PROFIT (BEFORE TAXES) COMBINED RATIO € 10.4bn € 346mn 95%
SOLVENCY RATIO FINANCIAL RESULT INVESTMENTS NET RESULT
238% € 596,3mn € 36.6bn € 231.5mn
7 OVERVIEW VIG VIENNA INSURANCE GROUP OUR MANAGEMENT
Elisabeth Stadler Harald Riener CEO Peter Höfinger Gerhard Lahner Gábor Lehel Liane Hirner Hartwig Löger Member of the Peter Thirring Chair of the Managing Board Member of the COO CIO Managing Board CTO CFRO Member of the Managing Board Member of the Member of the Managing Board Member of the Management of the VIG Group, Member of the Managing Board Managing Board Customer Experience, Managing Board General Secretariat and Legal, Managing Board Corporate and large Data Management & Assistance, Affiliated companies department, customer business Processes, Digital Transformation, Strategy and Development, Sales Toolbox Non-Life Insurance, European Affairs, Finance and Accounting, Vienna International Group IT-Functions, Eco-systems & Platforms Planning and Controlling Life & Health Insurance, Communications & Marketing, Enterprise Risk Underwriters (VIU), Holding IT, CEE Region North Actuarial Department Sponsoring, Management, Reinsurance Asset Management, Country: BY CEE Region Central (EE, LT, LV, PL, UA) Bancassurance and Asset-Risk Management, Real Estate, (AT, CZ, HU, SK) Country: TR international partnerships, Digitalisation Finance and CEE Region South Group Treasury, Human Resources Risk (AL, BA, BG, KO, HR, Asset Liability Management MD, MK, MNE, RO, RS)
Country: DE Country: LI Country: GE : Ian Ehm Photos Responsibilities of the entire Managing Board: Compliance, Internal Audit, Investor Relations AL: Albania, AT: Austria, BA: Bosnia and Herzegovina, BG: Bulgaria, BY: Belarus, CZ: Czech Republic, DE: Germany, EE: Estonia, GE: Georgia, HR: Croatia, HU: Hungary, KO: Kosovo, LI: Liechtenstein, LT: Lithuania, LV: Latvia, MD: Moldova, MK: North Macedonia, MNE: Montenegro, PL: Poland, RO: Romania, RS: Serbia, SK: Slovakia, TR: Turkey, UA: Ukraine
8 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 Sweden 2020 Norway > 10 bn Euro Denmark Premium volume ~25.000 employees ~50 Group companies 30 countries
9 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 today’s multi-brand Wechselseitige k.k.priv. post-war economic 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 Kooperativa Vienna Stock Exchange. increase, and the VIG to art in public spaces. The cooperation agreement for the listed Group, in Bratislava, in what was share is included in the wrapping is created by artists with Erste Group . is formed. then Czechoslovakia, as the ATX for the first time; from Austria and the CEE first private insurer in the Since 2008, the VIG countries where Vienna former Communist bloc. share is listed on the Insurance Group has a Prague Stock Exchange. presence.
10 OVERVIEW VIG VIENNA INSURANCE GROUP INSIGHT OUR MISSION STATEMENT
12 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.
13 INSIGHT VIG VIENNA INSURANCE GROUP OUR CORPORATE STRATEGY
We focus on providing our customers in 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 CEE Newald : Robert: Photo
14 INSIGHT VIG VIENNA INSURANCE GROUP OUR MANAGEMENT PRINCIPLES
Local entrepreneurship 1 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
15 INSIGHT VIG VIENNA INSURANCE GROUP OUTLOOK KEEPING FIT FOR THE FUTURE
Within our strategic measures, 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.
OPTIMISATION OF ENSURING BUSINESS MODEL FUTURE VIABILITY Creating a value proposition to increase operational performance Measures to adapt the business model to future opportunities . Maximising of cost effectiveness . Expanding lines of business . Shared services and mergers . Digitisation and innovations . Closed File Review . Expanding our range of assistance services . Anti-fraud . Insurance of the future, sustainability
ORGANISATION & ZUSAMMENARBEIT Die VIG Holding berät und unterstützt die Versicherungsgesellschaften in einer steuernden und fördernden Weise. Wir agieren als Partner und als Team. Im Fokus steht der langfristige Mehrwert für die Versicherungsgesellschaften.
17 OUTLOOK VIG VIENNA INSURANCE GROUP HIGHLIGHTS OF IMPLEMENTED MEASURES 2017-2020
Bancassurance . Cooperation with Erste Group extended until the end of 2033 Shared services and mergers . Selling of insurance via George . 13 mergers in 11 countries
Health insurance Anti-fraud . Premium increase by 122% in the focus countries Bulgaria, Poland, Romania, Hungary, . Group-wide tool for anti-fraud Turkey management in mass lines of business . Savings of > 3% of the claims Reinsurance payments, EUR 28 mn . Expansion in D-A-CH region, France, Benelux countries . Premium increase of VIG Re by around 50% Closed File Review . Methodology for optimising claims payment processes Assistance . Savings of > 5% of the claims . Over 1.3 mn assistance cases handled volume, EUR 45 mn . Group’s own assistance in 10 countries
18 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 2019 in EUR (premiums per capita)
EU-15 3008.5* Austria 1 967.4 Czech Republic 576.0 Slovakia 416.9 Poland 374.2 Hungary 365.1 Croatia 344.4 Lithuania 342.5 Bulgaria 212.7 Romania 119.5 Turkey 116.8 Bosnia a. H. 104.1* North Macedonia 82.6 Serbia 78.4 Source: Axco Ukraine 42.6 * Data from 2018
19 OUTLOOK VIG VIENNA INSURANCE GROUP FORECAST FOR 2021 Estimates taking into account current developments and major uncertainty factors
Premium volume at the level of 2020
Profit before taxes EUR 450 – 500 mn
Combined ratio ~ 95%
20 OUTLOOK VIG VIENNA INSURANCE GROUP FORESIGHT DIGITISATION AND INNOVATIONS
Yearly investment in digitisation of about EUR 50 million
. Around 180 ongoing projects by VIG Group companies
. Internal measures . Digitisation Hub Poland . Setup of own start-ups and hubs (e.g. viesure, beesafe) . Group-wide competition VIG Xelerate
. External measures . Cooperation with Digital Impact Labs Leipzig . Cooperation with Plug & Play in Silicon Valley . Participations in start-ups (e.g. ViveLaCar, IST Cube)
22 FORESIGHT VIG VIENNA INSURANCE GROUP 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 2020, 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 AND INCLUSION 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 respect the cultures and traditions of the various countries and markets in which we offer our insurance services and we are committed to promoting equal opportunities with regard to the employment and promotion of staff.
23 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
24 FORESIGHT VIG VIENNA INSURANCE GROUP ESG IN THE VIG GROUP
SUSTAINABLE INSURANCE AND INVESTMENT STRATEGY . Climate change strategy (withdrawal from the coal sector) . Strengthening of sustainable investments (green bonds, infrastructure, renewable energies, etc.) . Pioneer as insurer of innovative technologies . Issue of a sustainability bond of EUR 500 million in the year 2021
SUSTAINABLE PROVISION . First unit-linked life insurance with Austrian environmental certificate . Promoting affordable and environmentally friendly housing
CONFIRMATIONS FOR SUSTAINABLE STRATEGY . Listed in sustainability indices FTSE4Good und VÖNIX . Inclusion in UN Global Compact
25 FORESIGHT VIG VIENNA INSURANCE GROUP DIVERSITY IS ONE OF OUR BEST INGREDIENTS
BCG GENDER DIVERSITY INDEX AUSTRIA 2020 Awarded with second place under Austria‘s most diverse companies by BCG
BCG* Gender Diversity Index Austria 2020 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
RANKING UNDER DIVERSITY LEADERS 2021 VIG in the listing of the “Financial Times Diversity Leaders 2021” for the first time
I see these awards 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
26 FORESIGHT VIG VIENNA INSURANCE GROUP EXCELLENT EMPLOYER
FORBES 2020 – WORLD’S BEST EMPLOYERS RANKING Listed again by Forbes as one of the 750 best employers in the world
BEST RECRUITERS D-A-CH VIG Holding leads insurance sector again and is among the Top 20 employers in the German-speaking countries
BEST RECRUITERS AUSTRIA 2020/2021 VIG Holding receives gold award for Employer Branding & Recruiting four times in a row and as industry leader
TOP COMPANY AT KUNUNU VIG Holding recommended as Top Company by employees
27 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 2020 Voted by Austrian financial magazine „Börsianer“ as most innovative insurance company 2020 for the second time in succession
ELISABETH STADLER RANKED BEST INSURER IN AUSTRIA VIG CEO Elisabeth Stadler has reached first place in “Börsianer” magazine’s peer group ranking "The 50 best insurers in Austria" for the second time in a row
28 FORESIGHT VIG VIENNA INSURANCE GROUP
PUBLICATION DETAILS
Presentation last updated April 2021
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 impression. 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.