VIG CEE success story. Roadshow Paris. 13 April 2012

Transcription

1 VIG CEE success story Roadshow Paris 13 April 2012

2 Contents VIG in 2011 VIG in 2011 CEE potential VIG s performance Summary 2

3 YE 2011 Performance Indicators VIG in 2011 PBT up by 10.1% to mn Premiums overall up 3.4%; premium growth in CEE +7.7% Combined ratio (net) in 2011 decreased considerably to 96.8% after 98.4% at YE 2010 VIG YE 11 Group Embedded Value increased to 5.3 bn Positive return on Group Embedded Value amounting to mn MCEV: Increased new business profitability due to increased CEE proportion of new business P&C surplus in claims and unearned premium reserves reached almost 500 mn 3

4 YE 2011 Financial Highlights (I) PBT increase driven by Slovakia and Poland VIG in ,899 GWP ( mn) 8,019 8, % 8, Profit before Tax ( mn) +10.1% Net Profit after Tax and Minorities ( mn) Combined Ratio (net, %) %

5 YE 2011 Financial Highlights (II) VIG in 2011 EPS ( ) 1 ROE before Tax (%) : net of hybrid interest 5

6 YE 2011 Gross Written Premiums development Growth with different dynamics by lines and markets ( mn) VIG in 2011 mn YE 2011 YE /-% YE 2011 YE /-% YE 2011 YE /-% Austria 2, , , , , , Czech Rep , , , Slovakia Poland Romania Remaining Total 4, , , , , , Romania: restructuring motor business (increase in tariffs); growth in life from s Versicherung Group GWP Non-life GWP Life Total Remaining: mixed picture by country and business line; main factor for decrease in life is sharp drop in single premiums in Liechtenstein Austria: sound non-life growth; declining life business due to increased minimum lock-up period for single premiums Czech Republic: in motor competitive environment (decreasing average premiums); life strong both in regular and single premiums Slovakia: growth in MTPL; strong single premium life business from s Versicherung Group Poland: non-life growing above market; increased average premium in motor; dynamics in life coming from tax-driven single premium business s Versicherung Group GWP in CEE % Highlights s Versicherung Group in 2011: Significant premium increases in CEE markets: CZ +19.3%, SK +16.8%, RO +11.4%, HU +12.6% Strong increase in s Versicherung Group s profitability: Total profit before tax up by 40% to EUR 140 mn : s Versicherung Group excluding BCR Non-Life Note: First time consolidation of UIG and full consolidation of Ray Sigorta as of Q3 2010, full consolidation of Georgia and TBIH as of Q

7 Achievements in 2011 VIG in 2011 Proof of Right Strategy Best Year in Company History Despite difficult macroeconomic situation VIG delivers excellent results according to its long term strategy Successful continuation of CEE focus Best PBT and GWP result in company history Over 50% of GWP from CEE Business Expansion and Efficiency Expansion and Growth Expansion of Group into Bosnia- Herzegovina (Jahorina) 25th market Purchase of insurance operations in Albania (Intersig) and Poland (Polisa) Positive development in CEE with 7.7% GWP growth Focus on Efficiency Effective administration further strengthening of joint back-office activities within countries and shared nation-wide purchase Mergers in Poland, Romania and Bulgaria 7

8 Development of PBT and Dividends VIG in 2011 Development of Dividend 256.0mn VIG s Path of Profitability ( mn) 115.5mn 115.2mn 128.0mn 140.8mn YE 2007 YE 2008 YE 2009 * YE 2010 YE 2011e * One-off bonus dividend paid out in 2009 Payout volume Dividend/share Bonus dividend/share YE 2007 YE 2008 YE 2010 YE 2010 YE 2011 Management considers increase of dividend to 1.10 per share 1. VIG keeping its dividend policy which is defined as a payout ratio of minimum 30% of Group net profit. 1: Subject to the approval of the corporate bodies 8

9 Contents CEE potential VIG in 2011 CEE potential VIG s performance Summary 9

10 VIG The Basic Concept GDP growth and under-penetration are insurance drivers CEE potential Insurance Density (USD) 2, Growth Markets E P Mature Markets 1,000 H CRO Emerging Markets CRO H CZ CZ SER BG RO PL SK SER PL SK BG UA UA 0 RO TR 1,000 10,000 20,000 GDP per Capita (USD) 100,000 Insurance demand also strongly driven by catch-up process 10

11 CEE Potential (I): Development of Income 5-10 years delay between different countries CEE potential Romania Czech Republic Austria Years + 10 Years Available income per year (thsd 1 $) < > 150 1: 2010; total available income private household; Source: Eurostat 11

12 CEE Potential (II): Motor Insurance Motor underpenetration combined with older vehicles CEE potential Number of registered vehicles per 1000 inhabitants 1 AT AT = 2,53 x CEE Potential of additional 82 mn cars insured CEE Triggers for future motor business Expected catch-up in motor penetration sets basis for huge MTPL volume growth After years of stagnation car sales recovery to be awaited VIG is set to catch largest portion of business due to broadest distribution network in the region Add-on service riders to classical car insurance (assistance, legal insurance) Average age of vehicles in CEE 2 Exchange of old car park creates potential of CASCO insurance PL CZ UA RO AT < or = 2 years 2 > or = 5 years 5 > or = 10 years > 10 years Source: 1: as of 2009, WiiW, 2: as of 2009, for Ukraine data for

13 CEE Potential (III): Life Insurance Life is coming in with building of a middle class CEE potential Break Down of Business Lines 1 (%) VIG Life insurance trends Health Regular Life Single Life Non-motor NL Motor NL 10% 14% 28% 5% 33% 19% 19% 12% 28% 30% 63% 25% 15% A CZ RO Substantial under-penetration of life insurance in CEE compared to Western Europe Middle class creation supports life insurance growth Successful results of s Versicherung Group (bankassurance cooperation with Erste Group in 10 CEE countries) exceeds original estimations from 2008 Strong demand for unit-linked products in CEE Legal changes in Austrian Government sponsored pension plan (Zukunftsvorsorge) expected to impact new business Source: 1: Local insurance authorities 13

14 CEE Potential (IV): Regulatory Trends Structural changes will allow for new product lines and volumes CEE potential Market Regulatory changes to come in CEE Reform of pension systems: creation of 2nd and 3rd pillar in pension systems Reform of health insurance with aim to allow private add-ons to public health insurance More sophisticated and experienced legal systems set basis for legal expenses insurance Increasing importance of assistance services VIG VIG is ready for action Pension insurance products in place to be rolled out quickly Basic private health insurance products already being introduced Active consultancy of decision makers for the design of health system Legal expenses insurance already sold with motor business Increased focus on NL insurance riders such as assistance 14

15 Contents VIG s performance VIG in 2011 CEE potential VIG s performance Summary 15

16 VIG - Excellent Position in Core Markets VIG as early mover in CEE VIG s performance Overview of Core Markets Austria Czech Rep. Slovakia Poland 1 Romania 1 Pop.: 8.4 mn Pop.: 10.5 mn Pop.: 5.4 mn Pop.: 38.2 mn Pop.: 19.0 mn Ins. Density: 1,997 Ins. Density: 569 Ins. Density: 381 Ins. Density: 356 Ins. Density: 93 Market pos.p&c/l: 1/1 Market pos. NL/L: 2/1 Market pos. NL/L: 2/1 Market pos. NL/L: 3/7 Market pos. NL/L: 1/2 Market pos. Total: 1 Market pos. Total: 1 Market pos. Total: 1 Market pos. Total: 4 Market pos. Total: 1 Market share: 23.7% Market share: 30.2% Market share: 32.7% Market share: 6.9% Market share: 28.6% Croatia Serbia 1 Bulgaria 1 Hungary Ukraine 1 Pop.: 4.3 mn Pop.: 7.5 mn Pop.: 7.6 mn Pop.: 10.0 mn Pop.: 45.7 mn Ins. Density: 287 Ins. Density: 74 Ins. Density: 111 Ins. Density: 306 Ins. Density: 48 Market pos. NL/L: 5/1 Market pos. NL/L: 5/2 Market pos. NL/L: 1/5 Market pos. NL/L: 7/8 Market pos. NL/L: 3/5 Market pos. Total: 4 Market pos. Total: 4 Market pos. Total: 1 Market pos. Total: 7 Market pos. Total: 4 Market share: 8.0% Market share: 8.3% Market share: 14.4% Market share: 5.3% Market share: 3.1% Source: Macroeconomic data: WIFO, data for 2011; Insurance Density: in-house calculations based on publications by national insurance associations, the IMF and Sigma, as of : Data as of 9M

17 VIG Excellent Past Performance (I) VIG growth rates outperform market VIG s performance 10.00% 9.60% 10.60% 9.90% Non-life Life Total 0.00% Reported Growth CAGR VIG showed close to double digit growth rates despite economic crisis and significant negative effects on CEE currencies More than 50% of growth was organic VIG continuously outperformed the market by more than 20% organically 17

18 VIG Excellent Past Performance (II) GWP in major markets ( mn): companies show steady upward trend VIG s performance Austria Czech Republic 3,171 3,435 3,695 3,756 3,874 4,041 4, ,048 1,130 1,420 1,603 1,757 1, Slovakia Steady growth Profitability Poland : Crisis-related reduction of tax-driven single premium life products 18

19 PBT trend in major markets from Czech Republic VIG Excellent Past Performance (III) 400 Austria Poland PBT mn PBT mn PBT mn Profitability 55 Slovakia PBT mn VIG s performance

20 Peer Group Comparison Market share and PBT outperformance VIG s performance Market share development in CEE 20.0% 10.0% 12.6% 13.2% 14.6% 13.9% 10,2% 9,7% 3,6% 0.0% Peer 1 Peer 2 Peer 3 VIG PBT (indexed in %) Peer 1 Peer 2 Peer 3 VIG Source: Company reports 20

21 Contents Summary VIG in 2011 CEE potential VIG s performance Summary 21

22 VIG Keeps Promises Strategic and operative progress Summary Undertakings Strengthening of leading position in Austria Expansion of CEE business through acquisitions and organic growth Keep/improve financial strength Increase in profitability Achievements VIG undisputed no.1 position in AT CEE premium volume doubled Increased franchise through cooperation with Erste Group Expansion into additional countries VIG is no. 1 in its core markets and has reached leading positions in most of its major markets A+ S&P rating recently confirmed Strong solvency ratio combined with presentable ROE PBT boosted Acquired bank insurer group s performance exceeds VIG s 2008 expectations 22

23 Investment Case Management fundamentals Summary Long-term earnings growth Strong potential still in place; VIG has ambitious retail focus Sound capitalisation Best CEE insurance franchise Successful M&A track record Broad distribution (incl. mutual banking cooperation) 23

24 Contents VIG in 2011 CEE potential VIG s performance Summary 24

25 Management Focus Remain committed to proven fundamentals Steering approach Multi-brand Multi-channel Historically multi-brand was best approach to obtain as much market share as possible <10% 11% - 20% 21% - 30% 31% - 40% > 41% Tied agents Banks Brokers 1 Other Adapted multi-brand approach Assessment of value added by each brand Austria Czech Rep. Slovakia Focus on efficiency Romania Merger potential evaluation Poland Joint back-office activities within countries Shared nation-wide purchase in total about 40 brands Hungary Croatia Others Multi-brand and multi-channel remain core success factors for VIG 1: direct insurance, leasing, car dealers, affinity groups, 25

26 YE 2011 Income Statement IFRS ( mn) mn YE 2011 YE /-% 1. Gross premiums written 8, , Net earned premiums 8, , Financial result , Other income Total income 9, , Expenses for claims and insurance benefits -6, , Acquisition and administrative expenses -1, , Other expenses Total expenses -8, , Profit before taxes Taxes Net profit before minorities (Profit for the period) Minorities Net profit after minorites : Incl. result from equity participations 26

27 YE 2011 Balance Sheet IFRS ( mn) mn YE 2011 YE /-% Intangible assets 2,382 2, Investments 28,085 28, Unit- and index-linked investments 5,503 5, Reinsurers share in underwriting provisions 1,117 1, Receivables 1,582 1, Tax receivables and advance payments out of income tax Deferred tax assets Other assets Cash and cash equivalents Total assets 39,770 39, Shareholders equity 5,050 5, thereof minorities Subordinated liabilities Underwriting provisions 23,993 24, Unit- and index-linked technical provisions 5,329 5, Non-underwriting provisions Liabilities 3,904 3, Tax liabilites out of income tax Deferred tax liabilities Other liabilities Total liabilities and equity 39,770 39,

28 YE 2011 Expenses for Claims Incurred Claims ratio improving due to absence of NatCat events Group claims ratio (net) down by 1.1% pts Austria and Czech Republic recorded loss ratio down by 1.8% pts and 3.7% pts as a consequence of better weather conditions in 2011 compared to 2010 In Slovakia slightly improved loss ratio, stable claims incurred Poland: decrease of loss ratio by 3.3% pts due to absence of NatCat claims in 2011 and improved motor rates Romania: claims ratio up by 14.3% pts reflecting increased claims payments in motor and regulatory changes for reserving of personal injuries Remaining: loss ratio improved by 8.4% pts, mainly coming from Bulgaria, Ukraine and Georgia % Claims Ratio YE 2011 YE /- %-pts Austria Czech Rep Slovakia Poland Romania Remaining mn P&C YE 2011 YE 2010 Net Earned Premiums: 3, ,644.3 Expenses for Claims Incurred: 2, ,437.5 Ratio 65.8% 66.9% 28

29 YE 2011 Acquisition and Administrative Expenses Decreasing cost ratio Group cost ratio (net) decreased by 0.5% pts Reduction of cost ratio in Austria: administration expenses remained stable; increased premium basis In the Czech Republic, cost ratio increased by 2.1% pts due to higher reinsurance no-claims bonuses paid by VIG Re (stable cost ratio excluding VIG Re) In Slovakia fairly stable cost ratio slight increase of 0.6% pts due to change of distribution structure Poland recorded a reduction of the cost ratio by 1.1% pts from economies of scale and shared services efficiency In Romania, lower cost ratio due to effects from restructuring (further centralisation back-offices) Remaining Markets: cost ratio increased by 6.7% pts, influenced by depreciation of acquired insurance portfolio % Cost Ratio YE 2011 YE /- %-pts Austria Czech Rep Slovakia Poland Romania Remaining mn P&C YE 2011 YE 2010 Net Earned Premiums: 3, ,644.3 Acquisition and administrative expenses: 1 1, ,148.5 Ratio 31.0% 31.5% 1: Including other underwriting result of 110.8mn for YE 2011 (YE 2010: 101.7mn) 29

30 YE 2011 P&L Major Items Financial Result Increased impairments and lower income from disposals Income P&C Life Health Total in '000 YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 Current income 499, , , ,367 45,944 38,014 1,451,577 1,394,577 Income from appreciations 8,928 12,669 21,765 69,013 1, ,246 82,544 Income from the disposal of investments 44,206 72, , ,466 6,242 4, , ,095 Other income 8,939 4,427 32,733 33, ,904 38,129 Total Income 561, ,024 1,071,813 1,127,542 53,971 43,779 1,687,148 1,709,345 Expenses P&C Life Health Total in '000 YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 Depreciation of investments 103,786 92,032 53,509 47,133 2,087 2, , ,500 Impairment of investments 12,521 59, ,595 42,376 1,145 7, , ,075 Exchange rate changes -1,567 3,010-8,838-8, ,617-5,214 Losses from the disposal of investments 24,429 6,630 55,743 30,905 2,360 1,595 82,532 39,130 Interest expenses 93,539 74,149 28,509 33,855 4,915 6, , ,256 Other expenses 126, ,813 68,948 62,011 4,453 7, , ,162 Total Expenses 359, , , ,040 14,748 25, , ,909 1 Total Financial Result 202, , , ,502 39,223 18, ,609 1,116,436 1: Incl. result from equity participations 30

31 YE 2011 Investment Split Investments incl. cash and cash equivalents grow by 95mn Investment portfolio including cash and cash equivalents 28.6bn +0.3% 28.7bn ~ 5% ~ 1% 3% ~ 12% Deposits and cash Alternatives Affiliated Comp. Loans ~ 6% ~ 1% ~ 2% ~ 12% ~ 14% ~ 4% Real Estate Equities ~ 16% ~ 3% ~ 61% Bonds ~ 60% YE 2010 YE

32 YE 2011 Development of Bond Portfolio Rating upgrades in CEE improve structure By Issuer By Rating 8% 9% 3% 4% 10% 10% 30% 26% 33% 11% 11% 49% 31% 51% 54% 17% 21% 22% YE 2010 YE 2011 YE 2010 YE 2011 Government Financials 1 Pfandbriefe/Covered Bonds Corporates AAA AA A BBB Other 1: Government and government guaranteed 32

33 PIIGS Government Bonds mn Portugal - 1 Ireland 52 Italy 14 1 Greece 9 Spain 8 Total 83 ~70% ~70% Approximately 0.3% of total investments 1: Including impairments of about 45 mn for Ireland and Greece 33

34 YE 2011 Shareholders Equity Shareholders equity supports strong capitalisation Change in Group Shareholders Equity ( mn) , ,049.6 Increase of 0.4% Equity as of YE 2010 Currency changes Changes in consolidation AFS unrealised gains and losses Profit for the period Dividend payment Equity as of YE 2011 VIG has a Solvency I ratio of ~190% 34

35 YE 2011 Solvency I Sound capitalisation Fundamentals of Solvency I YE 2011 Solvency I Ratio ~190% bn YE 2011 Available capital 3.0 Required capital 1.6 Strong level of Solvency I ratio due to prudent business model of the company Due to rising importance of SAP software VIG acquired majority share in Central Point - the company holding the SAP licences and carrying out the SAP implementation; this software significantly increased the intangible assets 35

36 Group Embedded Value 2011 Results ( mn) L&H P&C Total (*) (*) (*) Austria / Germany Free Surplus Required Capital ANAV PVFP 1, , , , TVFOG FCRC CRNHR VIF 1, , , ,116.6 Subtotal A/G 1, , , ,010.4 CEE Free Surplus Required Capital ANAV , , , ,372.6 PVFP TVFOG FCRC CRNHR VIF Subtotal CEE 1, , , , , ,177.0 Total 2, , , , , ,187.3 (*) The results shown above are after restatement Remarks All results are based on local GAAP GEV reflects the present value of amounts deemed to be distributable to shareholders MCEV is based on stochastic cash flow projections using market consistent capital market scenarios and an allowance for liquidity premiums. The MCEV allows for management actions (e.g. in respect of profit participation and asset allocation) and policyholder behaviour Assumed policyholder profit participation allows for local supervisory laws and contractual agreements and current company practice Best estimate actuarial assumptions for expenses, mortality, etc. Scope of GEV-Reporting: Group Embedded Value (GEV) calculated as Life & Health (L&H) MCEV plus Adjusted Net Asset Value (ANAV) for Property & Casualty (P&C) Calculation of P&C ANAV for the first time: Sparkassen Versicherung AG in Austria Change to Market Consistent Embedded Value 1 Principles MCEV for L&H: Adjusted Net Asset Value (ANAV) plus Value of In-Force (VIF) determined as Present Value of Future Profits (PVFP) minus Time Value of Financial Options and Guarantees (TVFOG) minus Frictional Cost of Required Capital (FCRC) minus Cost for Residual Non-Hedgable Risks (CRNHR) ANAV for P&C includes Surplus in Claims Reserves based on undiscounted actuarial best estimates of claims payments and Surplus in Unearned Premium Reserves Methodology, assumptions and calculations reviewed by B&W Deloitte GmbH, Cologne 1: Copyright: Stichting CFO Forum Foundation

37 Group Embedded Value 2011 Return on Adjusted Embedded Value ( mn) L&H P&C Total Austria / Germany EEV 2010 Reported 1, ,654.2 MCEV 2010 Restated 1, ,010.4 Opening Adjustments thereof Dividends MCEV 2010 Restated and Adjusted 1, ,955.9 Return on GEV % % % MCEV , ,025.3 CEE EEV 2010 Reported 1, , ,408.5 MCEV 2010 Restated 1, , ,177.0 Opening Adjustments thereof Dividends MCEV 2010 Restated and Adjusted 1, , ,017.3 Return on GEV % % % MCEV , , ,258.9 Return on Total GEV % % % In YE 2011 P&C surplus in claims and unearned premium reserves increased by 3.5% to 499.3mn Change in Methodology and Assumptions The reference rates used for the MCEV calculations are based on the corresponding swap rates at December 31, 2011 and include a liquidity spread of 100 bp (EUR) and 80 bp (other currencies) for all terms Volatilities used to calibrate the economic scenario generator are based on market implied volatilities as at December 31, 2011 All results shown after minorities and tax GEV allows for all consolidation effects 37

38 Group Embedded Value 2011 Value of New Business ( mn) Austria / Germany (*) + / - % VNB % APE % PVNBP 1, , % APE-Ratio 19.3% 20.4% - 5.3% PVNBP-Ratio 2.0% 2.1% - 4.9% CEE (*) + / - % VNB % APE % PVNBP 1, , % APE-Ratio 60.6% 67.1% - 9.6% PVNBP-Ratio 8.7% 9.4% - 6.8% Total (*) + / - % VNB % APE % PVNBP 3, , % Comments The VNB represents the value generated by new business sold during the reporting period Increase of life insurance business in CEE Stable profit margins in A/G Profitability in CEE remains on high level More than 80% of VNB is generated in CEE APE-Ratio 44.4% 44.6% - 0.5% PVNBP-Ratio 5.5% 5.3% + 4.2% (*) The results shown above are after restatement 38

39 YE 2011 P&L Business Segments Property & Casualty, IFRS ( mn) mn YE 2011 YE /-% 1. Gross premiums written 4, , Net earned premiums 3, , Financial result Other income Total income 4, , Expenses for claims and insurance benefits -2, , Acquisition and administrative expenses -1, , Other expenses Total expenses -3, , Profit before taxes

40 YE 2011 P&L Business Segments Life, IFRS ( mn) mn YE 2011 YE /-% 1. Gross premiums written 3, , Net earned premiums 3, , Financial result Other income Total income 4, , Expenses for claims and insurance benefits -3, , Acquisition and administrative expenses Other expenses Total expenses -4, , Profit before taxes

41 YE 2011 P&L Business Segments Health, IFRS ( mn) mn YE 2011 YE /-% 1. Gross premiums written Net earned premiums Financial result > Other income Total income Expenses for claims and insurance benefits Acquisition and administrative expenses Other expenses >100 Total expenses Profit before taxes

42 YE 2011 P&L Split by Regions (I) Regional segments, IFRS ( mn) mn Austria Czech Republic YE 2011 YE /-% YE 2011 YE /-% 1. Gross premiums written 4, , , , Net earned premiums 3, , , , Financial result Other income Total income 4, , , , Expenses for claims/benefits -3, , , , Acquisition and administrative expenses Other expenses > Total expenses -3, , , , Profit before taxes Combined Ratio 93.2% 97.2% 91.6% 93.3% 42

43 YE 2011 P&L Split by Regions (II) Regional segments, IFRS ( mn) mn Slovakia Poland Romania YE 2011 YE /-% YE 2011 YE /-% YE 2011 YE /-% 1. Gross premiums written Net earned premiums Financial result Other income Total income Expenses for claims/benefits Acquisition and administrative expenses Other expenses Total expenses Profit before taxes n.a. Combined Ratio 92.5% 92.8% 100.6% 105.0% 109.8% 101.1% 43

44 YE 2011 P&L Split by Regions (III) Regional segments, IFRS ( mn) mn Remaining TOTAL YE 2011 YE /-% YE 2011 YE /-% 1. Gross premiums written , , Net earned premiums , , Financial result , Other income Total income , , Expenses for claims/benefits , , Acquisition and administrative expenses , , Other expenses Total expenses , , Profit before taxes n.a Combined Ratio 105.5% 107.2% 96.8% 98.4% 44

45 YE 2011 Results by Country IFRS ( mn) mn GWP Non-Life Life GWP GWP Total Profit before Taxes Net Combined Ratio YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 YE 2011 YE 2010 Austria 2, , , , , , % 97.2% Czech Rep , , , % 93.3% Slovakia % 92.8% Poland % 105.0% Romania % 101.1% Remaining % 107.2% Hungary % 92.0% Croatia % 104.1% Serbia % 96.3% Bulgaria % 120.0% Ukraine % 109.0% Turkey % 109.9% Georgien % 138.0% Baltics Albania % 85.9% Macedonia % 95.8% Netherlands Liechtenstein Germany % 86.1% Total 4, , , , , , % 98.4% 45

46 Change in Group Shareholders Equity IFRS ( 000) Equity as of 1 January 5,029,647 4,628,573 Exchange rate changes -56,184 13,721 Changes in scope of consolidation ,341 Capital increase - - Unrealised gains and losses from financial instruments available for sale ,547 31,344 Profit for the period 441, ,250 Dividend payment -177, ,582 Equity as of 31 December 5,049,643 5,029,647 46

47 Life Insurance Premium Split IFRS ( mn) Premiums written - direct business YE 2011 YE /- % Regular premiums 2, , % Single premiums 1, , % Total premiums written - direct business 3, , % thereof: Policies with profit participation 2, , % Policies without profit participation % Unit linked life insurance 1, , % Index linked life insurance % 47

48 Q Income Statement IFRS ( mn) mn Q Q /-% 1. Gross premiums written 2, , Net earned premiums 2, , Financial result Other income n/a Total income 2, , Expenses for claims and insurance benefits -1, , Acquisition and administrative expenses Other expenses >100 Total expenses -2, , Profit before taxes Taxes Net profit before minorities (Profit for the period) Minorities Net profit after minorites

49 YE 2011 Exchange Rates YE 2011 YE 2010 Country Curr. Balance Balance P & L EUR Sheet EUR Sheet EUR P & L EUR Bulgaria EUR/BGN Croatia EUR/HRK Estonia EUR/EEK Liechtenstein EUR/CHF Poland EUR/PLN Romania EUR/RON Serbia EUR/CSD Slovakia EUR Czech Republic EUR/CZK Hungary EUR/HUF Turkey EUR/TRY Ukraine EUR/UAH Albania EUR/ALL Macedonia EUR/MKD Georgia EUR/GEL Belarus EUR/BYR 7, , , ,

50 Shareholder Structure (I) Total number of shares 128,000,000 Wiener Städtische Wechselseitiger Versicherungsverein - Vermögensverwaltung Vienna Insurance Group ~70 % Free Float ~ 30 % 50

51 Shareholder Structure (II) Free float split Austria ~22 % Others ~4% North America ~25% Continental Europe ~26% UK & Ireland ~23% 51

52 VIG Share & Contact Details Investor Relations VIG Share Number of common shares 128mn ISIN AT Listing Vienna since 17 Oct Prague since 5 Feb Ticker symbol VIG Bloomberg VIG AV / VIG CP Reuters VIGR.VI / VIGR.PR Investor Relations Vienna Insurance Group Schottenring 30, 1010 Vienna investor.relations@vig.com Nina Higatzberger (Head of IR) Tel. +43 (0) nina.higatzberger@vig.com Lukáš Štěpánek Tel. +43 (0) lukas.stepanek@vig.com Claudia Pichler Tel. +43 (0) claudia.pichler@vig.com Daniela Lemmel-Seedorf Tel. +43 (0) daniela.lemmel-seedorf@vig.com 52

53 Disclaimer IMPORTANT NOTICE These materials do not constitute or form part, or all, of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in any jurisdiction in which such solicitation, offer or sale would be unlawful, nor shall part, or all, of these materials form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities. These materials contain forward-looking statements based on the currently held beliefs and assumptions of the management of VIENNA INSURANCE GROUP AG Wiener Versicherung Gruppe ( VIG ), which are expressed in good faith and, in their opinion, reasonable. These statements may be identified by words such as expectation or target and similar expressions, or by their context. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of VIG, or results of the insurance industry generally, to differ materially from the results, financial condition, performance or achievements express or implied by such forwardlooking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. VIG disclaims any obligation to update these forward-looking statements to reflect future events or developments. 53