Geschäftsentwicklung 2010 Vienna Insurance Group 21 st Annual General Meeting
VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe
Vienna, May 4 th 2012 Business development 2012 Vienna Insurance Group Standard & Poor‘s Rating 2011
Standard & Poor‘s confirmed VIG rating A+ with stable outlook
previous ACTUAL change A+ A+ VIG with stable outlook with stable outlook AA AA Allianz GroupKonzern with stable outlook with negative outlook A+ A Generali GroupKonzern with stable outlook with stable outlook A- BBB+ Generali Holding ViennaWien with negative outlook with stable outlook A A- Uniqa with negative outlook with stable outlook Excellent result 2011
Excellent development in difficult economic environment Best result in the Group‘s history
EUR 8.9 bn. premium income (+3.4%) PBT: Excellent increase of 10.1% to EUR 559.01 mn. (yoy) Combined ratio at 96.8% (-1.6%p) Further milestones 2011
VIG is the best-rated company in the ATX Continuation of CEE strategy: Market entry in Bosnia-Herzogovina (25 th market of VIG) Acquisition of majority share of Jahorina Expansion of activities in Albania and Poland - Acquisition of Intersig Sh.a. - Acquisition of Polisa* High cultural and social responsibility of the Group - Introduction of Social Active Day
*Subject to regulatory approvals
Premium income Premium income
Premiums written by lines of business, IFRS
Vienna Insurance Group with solid growth
in EUR million 1-12 2011 1-12 2010 +/- in %
Property/Casualty 4,579.30 4,350.04 5.3%
Life 3,944.22 3,904.81 1.0%
Health 360.15 338.16 6.5% Vienna Insurance Group 8,883.67 8,593.01 3.4% Premium income – life line (total)
Premiums written, IFRS
Decline in single premiums in Austria Positive development for current premiums
in EUR million 1-12 2011 1-12 2010 +/- in %
Life 3,944.22 3,904.81 1.0%
thereof*
current premiums 2,289.98 2,217.27 3.3%
single premiums 1,641.54 1,673.35 -1.9%
Austria 1,940.76 2,146.69 -9.6% CEE 1,863.03 1,575.02 18.3%
* direct business s Versicherung Group - Life
Written premiums 2009 - 2011; in EUR million
CEE is growth driver of s Versicherung Group*
CEE
approx. 52%
624,90624.90 534,80534.80 411,13411.13
2009 2010 2011
* without BCR Sach Premium income
Premiums written by region, IFRS
Positive development of the CEE region
in EUR million 1-12 2011 1-12 2010 +/- in %
Austria 4,042.22 4,041.14 0.0% Czech Republic 1,848.86 1,756.54 5.3% Slovakia 678.83 647.87 4.8% Poland 954.07 747.69 27.6% Romania 502.87 528.05 -4.8%
Remaining markets* 856.82 871.72 -1.7%
Vienna Insurance Group 8,883.67 8,593.01 3.4%
CEE 4,625.72 4,295.62 7.7%
*Remaining markets include: Albania (incl. Kosovo), Baltics, Bulgaria, Croatia, Georgia, Germany, Hungary, Liechtenstein, Macedonia, Serbia, Turkey and Ukraine Premium income 2009 - 2011 in EUR million
CEE is growth driver
8.593,018,593.01 8.883,678,883.67 8.019,288,019.28
VIG total 4.295,62 4.625,724,625.72 3.933,153,933.15 4,295.62 CEE
2009 2010 2011
CAGR* VIG: 5.3% CAGR* CEE: 8.4%
* CAGR (Compound Annual Growth Rate) Premium income
2011 (2010)
CEE share of total premiums continues to grow
% share by region % share by line of business
Non-CEE Property/Casualty 47.9% 51.5% Life (50.0%) (50.6%) 44.4% (45.5%)
CEE Health 52.1% (50.0%) 4.1% (3.9%) Country data VIG - Austria
1-12 2011
Life insurance marked by significant drop in single premiums due to extension of minimum binding period
PBT development 2009 – 2011 in EUR million
approx. 18%
291,58291.58 247,49247.49 250,89250.89
2009 2010 2011 VIG – Czech Republic
1-12 2011
Excellent performance of life line (+12,9%) especially in the banking channel Approx 21% of group premium income and approx. 34% of group PBT are earned in Czech Republic
PBT development 2009 – 2011 in EUR million
approx. 54%
189.72 167,33167.33 189,72 122,91122.91
2009 2010 2011 VIG – Slovakia
1-12 2011
Leading market position furhter strengthened, increase of VIG market share of 0.8%p to approx. 33% Strong development of Poistovna Slovenskej Sporitelne (+16.7%) Nearly every 2nd MTPL insured at VIG Slovakia
PBT development 2009 – 2011 in EUR million
approx. 148%
57,2357.23 37,3237.32 23,0123.01
2009 2010 2011 VIG – Poland
1-12 2011
Strong growth in non-life and life line Number 3 on the non-life market
PBT development 2009 – 2011 in EUR million
approx. 38%
37,7737.77 27,4227.42 24,1824.18
2009 2010 2011 VIG – Romania
1-12 2011
Difficult market conditions in the non-life insurance influenced the overall outcome in Romania Restructuring of the portfolio
PBT development 2009 – 2011 in EUR million
24,1924.19 28,5128.51
2009 2010 2011 -12.82-12,82 Market growth vs. VIG growth
Premium income, 2011, local currencies
VIG is growing faster than market
31.7%
5.5%5,5% 4,7%4.7% 4.0%4,0% Romania 2,9%2.9% 2,1% 2.1% 0.8%0,8%
-0.7%-0,7% -2,2%-2.2%1 2 3 4 Czech Republic Slovakia Poland -4.4%-4,4% -7,6% -7.6% -8.8%-8,8% Market growth Market growth WITHOUT VIG VIG growth
Quelle: National insurance authorities Top market positions in Austria and CEE
Top 3 Top 5 Top 10
Austria Croatia Hungary
Czech Bosnia- Macedonia Republic Herzegovina
Slovakia Serbia
Poland 1 Ukraine
Romania
Albania
Bulgaria
Georgia
core markets further VIG markets 1 in Non-Life business
Investments Conservative investment strategy as of December 31, 2011
0,6%0.6% 5.3%5,3% 5.9%5,9% Bonds
Real estate 12.2%12,2% Loans
Deposits and cash
Equities and affiliated companies 60,0%60.0% 16.0%16,0% Alternative investments
EUR 28.65 bn. without unit- and index-linked life insurance
Roundings Bonds split – government and government guaranteed bonds as of December 31 st 2011
approx. 20%
27%approx. 27% Czech Republic Austria Poland approx. 6% Slovakia Supranational
approx. 6% Germany Others 20%approx. 20% approx. 9% approx. 12%
approx. EUR 8.86 bn.
excl. unit- and index-linked life insurance PIIGS
Government bonds; as of December 31, 2011
in EUR million
Portugal -
Ireland 52.5
Italy 13.5
Greece 8.9
Spain 8.0 Vienna Insurance Group 82.9
approx. 0.3% share of total assets Profit before tax (PBT) Profit before tax (PBT)
By line of business, IFRS
“Promised – Kept“
in EUR million 1-12 2011 1-12 2010 +/- in % Property/Casualty 271.51 222.72 21.9%
Life 239.81 248.46 -3.5%
Health 47.69 36.61 30.3%
Vienna Insurance Group 559.01 507.79 10.1% Profit before tax (PBT)
By regions, IFRS
in EUR million 1-12 2011 1-12 2010 +/- in %
Austria 291.58 250.88 16.2% Czech Republic 189.72 167.33 13.4% Slovakia 57.23 37.32 53.3% Poland 37.77 24.19 56.1% Romania -12.83 28.51 - Remaining markets* -4.46 -0.44 -
Vienna Insurance Group 559.01 507.79 10.1%
CEE 281.45 245.08 14.8%
*including amortised insurance portfolios Profit before tax (PBT) 2009 - 2011 in EUR million
Vienna Insurance Group successful through the crisis
559,01559.01 507,79507.79 441,25441.25 281,45 VIG total 245,08245.08 281.45 173,78173.78 CEE
2009 2010 2011
CAGR VIG: 12.6% CAGR CEE: 27.3% Profit before tax (PBT)
2011 (2010)
% share by region % share by line of business
Non-CEE Property/Casualty 49.7% 48.6% (51.7%) (43.9%) Life 42.9% (48.9%)
CEE 50.3% Health (48.3%) 8.5% (7.2%) s Versicherung Group - Life
Profit before tax (PBT); in EUR million
Further clear profit growth of the s Versicherung Group* AUSTRIA CEE
approx. 400% approx. 124%
91.2691,26 65,0165.01 44.6244,62 31,4531.45 18.2918,29 19,9419.94
2009 2010 2011 2009 2010 2011
* without BCR Sach Indicators Comparison – Return on Premium (RoP) in %
VIG outperforms competitors
5,0%5.0% 4,0%4.0% 3,8%3.8%
1,7%1.7% Uniqa
VIG Allianz Talanx Generali Uniqa
-4.1%-4,1%
Sources: Annual company reports 2011
35 Comparison – Equity ratio* in %
Good equity ratio of VIG
12.7%12,7%
7,6%7.6% 7,4%7.4% 4.3%4,3% 3.8%3,8%
VIG Talanx Allianz Generali Uniqa
Sources: Annual company reports 2011 * according to the simplified calculation method
36 Equity
Excellent capitalization of the Group
Almost twice as much equity as required solvability ratio 190%
37 Group Embedded Value Group Embedded Value 2011 in EUR
Embedded Value again increased
5,28 bn. Return on 4,97 bn. Group Embedded Value EUR 311 mn. (+6.3%) 2010* 2011
* Adjusted Embedded Value Financial Statements VIG Holding (standalone results) Financial Statements VIG Holding (standalone results)
UGB
in EUR million 2011 2010 +/- in %
Premiums written 818.69 536.85 52.5% Underwriting result 35.23 3.79 829.6% Financial results UGB 204.49 140.82 45.2%
PBT UGB 239.72 144.61 65.8%
41 Dividend Dividend
Increase of dividend suggested* Dividend yield 3.6%
140.80140,80 128,00128.00 115,20115.20 Dividend in EUR
1,00 1,101.10 0.900,90 1.00 Amount paid in EUR million
2009 2010 2011*
* subject to the approval of the corporate bodies
43 High cultural and social responsibility High cultural and social responsibility
Examples
Social responsibility Cultural responsibility
Social Active Day Maecenas 2011 for best long-term sponsorship Eastern Europe campaign of Caritas Architecture in the Ringturm Bátor Tábor – Camp for ill children in CEE Ringturm veiling (Tower of Arts) Zweite Sparkasse Essl Art Award CEE
These activities are supported to a large extent by the main shareholder Wiener Städtische Wechselseitige.
45 Current developments Outlook 2012
Further promotion of organic growth
Continuous increase in profitability
Taking into account the economic environment to keep volatility to a minimum Thank you for your attention!