Vienna Insurance Group Investor Presentation

Transcription

1 Vienna Insurance Group Investor Presentation August 2016

2 Development 6M 2016 Successful strategy Long-term potential Segments Appendix

3 Overview of the 6M 2016 results Business development in line with expectations 4.9bn GWP Total premium volume increased by 0.4% Solid development in all lines of business motor, other property, life regular premium and health business growing y-o-y Ongoing targeted reduction of life single premium business by 163mn (-18.6%) due to low interest rate environment Premium volume excl. life single premium business up 4.5% 201.3mn PBT PBT burdened by lower financial result Total financial result down by 68.5mn (-13.2%) Impact from changed valuation of non-profit housing societies included 97.9% CoR Net combined ratio at level of Q Cost ratio slightly down by 0.3%p y-o-y Claims ratio increased by 2.3%p y-o-y 3

4 Premium development in major markets impacted by single premium business reduction Overview of premiums by segments (I) Gross written premiums ( mn; y-o-y chg.) -0.9% 2, , M15-5.2% % -7.8% +37.3% Austria Czech Republic Slovakia Poland Romania Remarks Premium increases in Austria (+0.6%), Czech Republic (+7.8%) and Slovakia (+4.5%) excluding life single premium business In Poland two thirds of overall premium decrease (- 35mn) due to challenging market environment; one third is Baltic non-life business now shown in new segment the Baltic Double-digit growth of 37.3% in Romania driven by strong increases in motor third party liability insurance (MTPL + 61mn) and growing casco and other property business 4

5 Strong GWP growth in new segments of CEE region Overview of premiums by segments (II) Gross written premiums ( mn; y-o-y chg.) 6M15-4.4% +4.9% % +19.1% % % The Baltic Hungary Bulgaria Turkey/ Georgia Remaining CEE Other markets Remarks The Baltic: first-time consolidation of Baltikums and Compensa Lithuania included Hungary: growth in all lines of business Turkey/Georgia: growth driven by MTPL rate increase in Turkey Remaining CEE: premium growth based on strong developments in Croatia and Serbia Other markets: reduced life single premium business Remaining CEE includes Albania, Bosnia-Herzegovina, Croatia, Macedonia, Moldova, Ukraine and Serbia / Other markets are Germany and Liechtenstein 5

6 Solid premium development in all lines of business except for life single premium business Gross written premiums ( mn; y-o-y chg.) MTPL Casco Other property Total premiums +13.2% +7.7% +3.8% +0.4% ,050 2,128 MTPL 4,908 4, Casco M15 6M15 6M15 Other Property 2,050 2,128 Life regular Life single Health +1.0% -18.6% +5.1% Health ,256 1, Life regular 1,256 1,269 Life single Consolidation M15 6M15 6M15 6M15 6

7 Group PBT of 201.3mn down by 17.6% y-o-y Overview of profits by segments (I) Profit before taxes ( mn; y-o-y change) -12.3% -11.9% 6M % -46.6% % Austria Czech Republic Slovakia Poland Romania Remarks In Austria (- 10.5mn) and the Czech Republic (- 10.5mn) the declining profits are driven by less financial income In Poland, a highly competitive motor market and lower financial result led to a 12.1mn decline in profit before taxes 7

8 Profit development of new segments Overview of profits by segments (II) Profit before taxes ( mn; y-o-y change) 6M % +3.8% +24.9% % % 0.9 n.a The Baltic Hungary Bulgaria Turkey/ Georgia Remaining CEE Other markets Remarks Start-up costs after non-life portfolio transfer deteriorates the result of the Baltic segment Strong growth rates in Hungary, Bulgaria and Turkey/Georgia Decreased profit before taxes in Remaining CEE driven by claims development in the Ukraine 8

9 Combined ratio at 97.9% P&C Combined ratio development P&C CoR 6M y-o-y regional development (net, %) Cost ratio %p AT CZ %p +3.0%p SK %p Claims ratio PL %p 6M15 RO %p The Baltic Remarks HU %p Austria: CoR of 99.3% driven by increased cost ratio as a result of change in personnel provisions Czech Republic: Increased CoR of 92.8% mainly due to higher claims due to local hail events Poland: CoR still below 100% but impacted by competitive market environment BG TR/GE Remaining CEE Other markets %p -4.5%p +2.4%p +0.8%p 6M15 Rounding differences may occur when rounded amounts or percentages are added up. 9

10 Equity development 12M 2015 restated for changed valuation of non-profit housing societies Change in Group Shareholders Equity ( mn) +4% ,665 4,490 Equity restated as of 12M15 Profit for the period Currency changes AFS unrealised gains and losses Dividend payment Other Equity as of Return on Equity vs. Cost of Equity Calculation notes Net RoE: Group profit after tax and minorities to total average shareholders equity (excl. revaluation reserve and minorities) Tangible equity excludes goodwill Cost of Equity RoE RoTE 10

11 Solvency II ratio of 196% as of 31 Dec Calculation based on Partial Internal Model (PIM) in EURmn Solvency II ratio of 196% on level of stock-listed VIG Application of Partial Internal Model improves Solvency II ratio by 40pp PIM reduces SCR by EUR 800mn Results include volatility adjustment No matching adjustment No transitional rules considered More information on: 11

12 Outlook Short-term / medium-term / general 2016 Outlook Profit before taxes Despite that it is expected that the current low interest rate environment will lead to another decline in the ordinary financial result VIG aims to: At least double the profit before taxes 2015 up to 400mn Mid-term goals General policy Profitable growth either organic or via acquisitions Retaining market leader positions in AT, CZ and SK Market share of at least 10% in HR, HU, PL, RS Improvement of CoR towards 95% Maintaining sound capital ratios under Solvency 2 regulations Dividend policy Distribution of at least 30% of net profits after minorities 12

13 Development 6M 2016 Successful strategy Long-term potential Segments Appendix

14 Dynamic expansion into CEE out of Austria VIG with the most diversified network throughout the region 1990: 3 Markets Client/talent base: 24mn people Today: 25 Markets Client/talent base: 180mn people 1990 CZ, SK DE HU, PL, IT, LI, HR 2001/2002 RO, BY BG, RS 2004 SI UA 2006 GE TR, AL MK EE, LV LT ME BA MD 14

15 Focus on insurance business Successful banc-assurance in Austria and CEE Insurance business is core business of VIG Today around 50 insurance companies are part of VIG Nearly all lines of retail and commercial business covered pension fund business being not core Focus on technical results (COR below 100%) Asset management is done with a very conservative profile to cover life and non-life reserves Cooperation between VIG and Erste Group VIG acquired insurance operations of Erste Group in 2008 At the same time the strategic mutual distribution agreement for 15 years plus renewal for 10 years started Bank distribution is key in sale of life insurance Successful bank cooperation with Erste Group in 10 common markets 15

16 Local entrepreneurship as basis for success Clear commitment to local management Insurance business is local business Local management with best understanding of their markets and customer needs Members of the management board of VIG all have different country responsibilities and are members in the respective local Supervisory Board Close contact between local managers and the members of the board of VIG lean management structure Flexible reaction to changing market environment possible quick decision taking Local managers fully accountable for the performance of their companies Group Steering Group guidelines of VIG to be strictly followed by all Group companies in terms of Asset management Reinsurance Reporting IT Security Calculation of Embedded Value and Solvency Best risk mitigation given by accountable managers selecting the right people is key 16

17 Unique market approach with long-term focus Multi-brand and multi-channel provide best access to customers Multi-brand Local brands with good customer recognition are retained Different brands target different client groups Multi-brand allows for internal benchmarking VIG pushes joint back-office activities and shared services within the markets Regular appraisal of brand efficiency otherwise merger of companies Multi-channel Austria Czech Rep. Slovakia Poland Romania Remaining³ Tied agents Banks Brokers/Agents 1 Other 2 1: Non-exclusive 2: Direct marketing, leasing, car dealers 3: VIG remaining markets excl. Slovenia and Italy Multi-brand and multi-channel are paramount for VIG 17

18 Continuing on the path of a well-proven strategy with refinements for the future Strategy confirmed, refinements Continuation of proven strategy Focus on Austria and CEE Local entrepreneurship Conservative investments and reinsurance Strategy refinement for the future Gain market shares with growth in selected markets: Croatia, Hungary, Poland and Serbia Digitalisation emphasis in the area of products and services Multi-brand strategy Multi-channel distribution Strengthening health insurance Confirmed dividend policy Distribution of at least 30% of Group net profits after minorities 18

19 VIG strengthening its growth platform in CEE VIG is aiming to grow its market share in Croatia, Hungary, Poland and Serbia to at least 10% in the mid-term Croatia: With total GWP up 6.2% in HY 2016, VIG Croatia is growing above market; driven by double-digit growth rates in motor casco and other property business Serbia: In July VIG signed the purchase agreement for the non-life and life companies of AXA Serbia with a premium volume of more than 12mn; with closing of the transaction subject to approval by local authorities the current market share of 9.7% will increase to clearly above 10% Romania: Acquisition of AXA life insurance with 4.5mn premiums for 2015 announced in July 2016 Hungary: GWP increased by 15.4% Signed acquisitions 19

20 Refinement of strategy (II) Focus on health insurance and digitalisation in the area of products and services Stronger focus on health insurance In many countries: discussions about affordability of public health care systems Life expectancy up longer time of (chronic) illness and care Medical treatment becoming more expensive Social insurance systems under cost pressure; need for private spending/contribution Internationality treatment abroad Growth potential in the health insurance business to be targeted also via health care providers Digitalisation under way Use of digital products and services has become more popular VIG already offers many innovative products and services in Group companies Based on this potential: Expand existing offering Develop new offers and services Transfer existing products to other markets 20

21 Excellent market positions of VIG VIG is the clear No 1 in its major CEE markets VIG Number 1 VIG Top 5 VIG Top 10 Country Market positions Total N-life Life Austria Czech Republic Slovakia Poland Romania Bulgaria Croatia Serbia Ukraine Hungary Source: local insurance authorities; data as of 1Q16 (data for Slovakia and Hungary as of 4Q15) Total market share 26.2% 34.1% 32.7% 6.8% 26.5% 16.3% 6.7% 8.8% 4.1% 7.4% ~18 Market share in above shown markets (in %) ~12 ~11 ~9 Market share in AT & CEE VIG clearly ahead of its peers VIG Peer IT Peer AT Peer DE Source: local market reports; market shares according to current composition of groups; as of 4Q15; SK data estimated 21

22 Development 6M 2016 Successful strategy Long-term potential Segments Appendix

23 Insurance density in EUR Insurance growth is a catching-up process Model of insurance demand development still valid GDP growth and catchup process are insurance drivers AT AT CZ PL SK HU CZ PLHU SK RO 0 RO , , ,0 GDP per capita in EUR Source: Swiss Re Sigma, IMF 23

24 Striking under-penetration shows potential Annual premiums per capita (insurance density), in EUR 2,939 Life 2,034 12x Long-term growth potential in CEE still lies ahead Non-life Ø EU-15 AT øcee VIG CZ SK PL HU HR BG RO RS UA Source: Local insurance authorities; IMF; Swiss Re Sigma ; CEE: weighted average of CEE major markets; Data as of year-end

25 CEE grows faster than the EU-15 Forecast of economic growth in CEE vs. EU-15 12% 10% GDP growth in 2016: CEE: 4.0% and EU-15: 2.6% 8% 6% 4% 2% 0% -2% -4% -6% EU-15 CEE Source: IMF; April 2016; CEE = VIG markets without Austria, Italy, Liechtenstein and Germany 25

26 Development 6M 2016 Successful strategy Long-term potential Segments Appendix

27 Austria: stable premium development; PBT impacted by reduced financial result CoR impact due to changed personnel provisions GWP development ( mn) P&L: P&C business ( mn) -0.9% Y-o-Y MTPL Casco Other Property 2,286 2, Underwriting and financial result % Other non-technical result 6.8 n.a. Result (pre tax) % Claims ratio 68.5% 0.6%p Cost ratio 30.8% 2.2%p Combined ratio 99.3% 2.7%p Health P&L: Life and health business ( mn) Life regular Y-o-Y Underwriting and financial result % Life single Other non-technical result 6.5 n.a. 6M15 Result (pre tax) % 27

28 Czech Republic: lower financial result main driver for decreased PBT Excellent CoR of 92.8% GWP development ( mn) P&L: P&C business ( mn) -5.2% Y-o-Y MTPL Underwriting and financial result % Other non-technical result % Result (pre tax) % Casco Claims ratio 62.0% 1.7%p Cost ratio 30.8% 1.3%p Other Property 207 Combined ratio 92.8% 3.0%p Health Life regular P&L: Life business ( mn) 263 Y-o-Y Underwriting and financial result % Life single 148 6M15 51 Other non-technical result % Result (pre tax) % 28

29 Slovakia: Premium decrease driven by reduced life single premium Stable development in all other lines of business GWP development ( mn) P&L: P&C business ( mn) -3.7% Y-o-Y MTPL Underwriting and financial result % Other non-technical result -1.0 >100% Result (pre tax) % Casco Claims ratio 60.4% 6.8%p Cost ratio 36.1% -5.9%p Other Property Health Combined ratio 96.5% 0.9%p Life regular P&L: Life business ( mn) Y-o-Y Life single Underwriting and financial result % Other non-technical result % 6M15 Result (pre tax) % 29

30 Poland: pricing pressure in motor and lower financial result are main drivers of negative developments Premiums and profit before taxes down GWP development ( mn) P&L: P&C business ( mn) % Y-o-Y Underwriting and financial result % MTPL Other non-technical result -1.3 >-100% Result (pre tax) % Casco Claims ratio 67.5% 4.6%p Cost ratio 32.3% -1.7%p Other Property Combined ratio 99.7% 2.9%p Health Life regular P&L: Life business ( mn) Y-o-Y Life single Underwriting and financial result -0.4 n.a. Other non-technical result 4.8 >100% 6M15 Result (pre tax) % 30

31 Romania: strong premium increase and overall PBT slightly up 3.2% CoR constantly moving towards 100% GWP development ( mn) P&L: P&C business ( mn) +37.3% Y-o-Y 267 Underwriting and financial result 1.7 >100% Other non-technical result -1.0 >100% Result (pre tax) % Claims ratio 64.8% 1.7%p Cost ratio 36.2% -3.9%p MTPL 71 Combined ratio 101.0% -2.2%p Casco P&L: Life business ( mn) Other Property Health Life regular Life single M15 Y-o-Y Underwriting and financial result % Other non-technical result 0.0 >100% Result (pre tax) % 31

32 Premium development of new segments (I) The Baltic GWP development ( mn) % Hungary GWP development ( mn) +15.4% MTPL Casco Other Property Health Life regular Life single MTPL Casco Other Property Health Life regular Life single M15 6M15 Bulgaria GWP development ( mn) +2.4% Turkey/Georgia GWP development ( mn) +19.1% MTPL Casco Other Property Life regular Life single M15 5 MTPL Casco Other Property Health M

33 Premium development of new segments (II) Remaining CEE GWP development ( mn) +4.9% MTPL Casco Other Property Health Life regular Life single M15 Other markets GWP development ( mn) -4.4% Other Property Life regular Life single M15 33

34 Development 6M 2016 Successful strategy Long-term potential Segments Appendix

35 6M 2016 Key financials Overview of KPIs Net Profit after tax and minorities ( mn) Combined Ratio (net, %) M M15 EPS 1 ( ) ROE after tax and minorities (%) M M15 1: EPS net of hybrid interest, annualised figures 35

36 Non-profit Housing Societies - Restatement Main impact on PBT and Equity CONSOLIDATED INCOME STATEMENT ( mn) 1-12/2015 adjusted 1-12/2015 reported Net earned premiums 8, ,180.5 Financial result excl. at equity consolidated companies 1, ,000.0 Result from shares in at equity consolidated companies Other income Expenses for claims and insurance benefits -6, ,748.9 Acquisition and administrative expenses -1, ,847.6 Other expenses Profit before taxes Taxes Net profit (Profit for the period) Non-controlling interests Net profit after non-controlling interests Earnings per share in BALANCE SHEET ( mn) 31 Dec adjusted 31 Dec reported Investments 30,142 30,709 Cash and cash equivalents 1,101 1,103 Retained shareholders' equity 4,379 4,860 Non-controlling interests Shareholders' equity 4,490 5,058 Total assets 44,580 45,148 36

37 6M 2016 Income statement IFRS ( mn) / 6M 2015 restated mn 6M M /-% Gross premiums written 4, , Net earned premiums 4, , 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 Taxes Net profit (Profit for the period) Non-controlling interests Net profit after non-controlling interests : Incl. result of 24.9mn ( 27.9mn) from shares in at equity consolidated companies 37

38 6M 2016 Balance sheet IFRS ( mn) / YE 2015 restated mn /-% Intangible assets 2,052 2, Investments 31,013 30, Unit- and index-linked investments 8,191 8, Reinsurers share in underwriting provisions 1,148 1, Receivables 1,492 1, Tax receivables and advance payments out of income tax Deferred tax assets Other assets Cash and cash equivalents 1,239 1, Total assets 45,774 44, Shareholders equity 4,665 4, thereof minorities Subordinated liabilities 1,271 1, Underwriting provisions 29,275 28, Unit- and index-linked technical provisions 7,826 7, Non-underwriting provisions Liabilities 1,520 1, Tax liabilites out of income tax Deferred tax liabilities Other liabilities Total liabilities and equity 45,774 44,

39 Investment split and bond portfolio overview Investment strategy focused on stable returns 6M 2016: Total 32.3bn Bond portfolio by rating 1 8.9% 1.5% 6.0% 0.0% Other BBB A 6% 6% 17% 19% 31% 31% 6.2% AA 34% 34% 4.1% AAA 11% 12M15 11% Bond portfolio by issuer 73.2% Corporates 16% 18% Financials Pfandbriefe/ Covered bonds 20% 19% 8% 8% Bonds Equities Loans Affiliated Comp. Deposits and Cash Government 2 56% 55% Real Estate Alternatives 12M15 Note: Rounding differences may occur when rounded amounts or percentages are added up 1: Based on second best rating 2: Government, government guaranteed and gov.agencies 39

40 Financial result decreased by 13.2% Financial result incl. at-equity consolidated companies Income Total in '000 6M M 2015 Current income 549, ,511 Income from appreciations 8,807 13,390 Income from the disposal of investments 65, ,273 Other income 41,018 44,334 Total Income 664, ,508 Expenses Total in '000 6M M 2015 Depreciation of investments 40,317 38,531 Impairment of investments 10,187 15,021 Remarks Overall financial result down by 68.5mn Extraordinary financial result clearly decreased according to plan Impact from revaluation of non-profit housing societies (compared to reported HY 2015 minus 20mn) is balanced by positive one-off in other result Exchange rate changes 7,495-12,784 Losses from the disposal of investments 15,187 36,536 Interest expenses 43,092 37,716 Other expenses 98,853 98,584 Total Expenses 215, ,604 Total Financial Result 449, ,904 40

41 6M 2016 P&L by segments (I) IFRS ( mn) / 6M 2015 restated Austria Czech Republic Slovakia mn 6M M /-% 6M M /-% 6M M /-% Gross premiums written 2, , Net earned premiums 1, , Financial result Other income > Total income 2, , Expenses for claims/benefits -1, , Acquisition and administrative expenses Other expenses Total expenses -2, , Profit before taxes Taxes Profit of the period Combined Ratio 99.3% 96.6% 92.8% 89.8% 96.5% 95.6% 1: Incl. result from shares in at equity consolidated companies 41

42 6M 2016 P&L by segments (II) IFRS ( mn) / 6M 2015 restated Poland Romania The Baltic mn 6M M /-% 6M M /-% 6M M /-% Gross premiums written >100 Net earned premiums Financial result Other income > Total income Expenses for claims/benefits Acquisition and administrative expenses >100 Other expenses >100 Total expenses >100 Profit before taxes n.a. Taxes n.a Profit of the period n.a. Combined Ratio 99.7% 96.8% 101.0% 103.2% 131.1% 0.0% 1: Incl. result from shares in at equity consolidated companies 42

43 6M 2016 P&L by segments (III) IFRS ( mn) / 6M 2015 restated Hungary Bulgaria Turkey/Georgia mn 6M M /-% 6M M /-% 6M M /-% 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 >100 Taxes n.a. Profit of the period Combined Ratio 105.0% 106.5% 99.0% 101.4% 97.0% 101.5% 1: Incl. result from shares in at equity consolidated companies 43

44 6M 2016 P&L by segments (IV) IFRS ( mn) / 6M 2015 restated Remaining CEE Other markets mn 6M M /-% 6M M /-% Gross premiums written Net earned premiums Financial result Other income >100 Total income Expenses for claims/benefits >100 Acquisition and administrative expenses Other expenses Total expenses Profit before taxes Taxes Profit of the period Combined Ratio 99.5% 97.1% 84.4% 83.6% 1: Incl. result from shares in at equity consolidated companies 44

45 6M 2016 P&L by segments (V) IFRS ( mn) / 6M 2015 restated Central Functions Consolidation TOTAL mn 6M M /-% 6M M /-% 6M M /-% Gross premiums written n.a. 4, , Net earned premiums n.a. 4, , Financial result n.a Other income > n.a >100 Total income n.a. 4, , Expenses for claims/benefits n.a. -3, , Acquisition and administrative expenses n.a Other expenses n.a Total expenses n.a. -4, , Profit before taxes n.a Taxes > n.a Profit of the period n.a Combined Ratio 97.9% 95.9% 1: Incl. result from shares in at equity consolidated companies 45

46 6M 2016 Financial result by segments excluding at equity consolidated companies (I) IFRS ( '000) / 6M 2015 restated Income Austria Czech Republic Slovakia Poland in '000 6M M M M M M M M 2015 Current income 403, ,439 52,873 56,571 22,037 22,711 15,497 19,672 Income from appreciations 2,881 2,075 1,375 6, ,215 1,841 of which reduction in impairment Income from the disposal of investments 30,094 56,676 11,880 18,640 7,358 6,654 5,145 12,074 Total Income 436, ,190 66,128 81,546 30,181 29,845 21,857 33,587 Expenses Austria Czech Republic Slovakia Poland in '000 6M M M M M M M M 2015 Depreciation of investments 32,891 27,511 4,082 3,857 1, ,373 2,371 Thereof impairment of investments 9,011 5, Exchange rate changes ,537-7, , Losses from the disposal of investments 1,178 6,607 11,308 23, Interest expenses 19,087 18,241 1,564 1, ,536 2,225 Other expenses 37,754 36,780 5,019 5, ,718 2,101 Total Expenses 91,070 88,342 23,510 26,654 1,862 1,372 4,646 7,711 Total Financial Result (excl. at-equity) 345, ,848 42,618 54,892 28,319 28,473 17,211 25,876 46

47 6M 2016 Financial result by segments excluding at equity consolidated companies (II) IFRS ( '000) / 6M 2015 restated Income Romania The Baltic Hungary Bulgaria in '000 6M M M M M M M M 2015 Current income 6,971 6,346 2,489 1,686 4,445 4,471 10,956 10,761 Income from appreciations of which reduction in impairment Income from the disposal of investments 1,768 3, ,228 1,170 1,700 Total Income 8,924 9,646 3,060 2,189 4,912 7,699 12,626 13,102 Expenses Romania The Baltic Hungary Bulgaria in '000 6M M M M M M M M 2015 Depreciation of investments ,363 Thereof impairment of investments Exchange rate changes Losses from the disposal of investments , Interest expenses 1,208 1, Other expenses 926 1, ,198 4,826 Total Expenses 2,976 3,081 1, ,312 6,963 6,681 Total Financial Result (excl. at-equity) 5,948 6,565 2,033 1,734 4,142 4,387 5,663 6,421 47

48 6M 2016 Financial result by segments excluding at equity consolidated companies (III) IFRS ( '000) / 6M 2015 restated Income Turkey/Georgia Remaining CEE Other markets in '000 6M M M M M M 2015 Current income 4,159 3,652 19,042 18,739 10,469 10,130 Income from appreciations 1,375 1, of which reduction in impairment Income from the disposal of investments ,622 3, Total Income 5,747 4,825 21,765 22,308 10,505 10,269 Expenses Turkey/Georgia Remaining CEE Other markets in '000 6M M M M M M 2015 Depreciation of investments 965 1, , Thereof impairment of investments Exchange rate changes Losses from the disposal of investments Interest expenses , Other expenses 569 1,246 1,066 1, Total Expenses 2,300 2,718 4,035 4,574 1, Total Financial Result (excl. at-equity) 3,447 2,107 17,730 17,734 9,338 9,429 48

49 6M 2016 Financial result by segments excluding at equity consolidated companies (IV) IFRS ( '000) / 6M 2015 restated Income Central Functions Consolidation Total in '000 6M M M M M M 2015 Current income 44,880 50,140-28,820-31, , ,942 Income from appreciations ,806 13,390 of which reduction in impairment Income from the disposal of investments 1,416 6, , ,273 Total Income 46,296 56,775-28,820-31, , ,605 Expenses Central Functions Consolidation Total in '000 6M M M M M M 2015 Depreciation of investments 5,007 13, ,504 53,552 Thereof impairment of investments 0 8, ,187 15,021 Exchange rate changes 6,054-4, ,495-12,784 Losses from the disposal of investments 1,270 3, ,187 36,536 Interest expenses 46,112 42,461-28,814-31,395 43,092 37,716 Other expenses 45,176 44, ,853 98,584 Total Expenses 103,619 99,259-28,814-31, , ,604 Total Financial Result (excl. at-equity) -57,323-42, , ,001 49

50 6M 2016 Premiums by business lines and country (I) IFRS ( mn) GWP MTPL GWP Casco GWP Other property 6M M /-% 6M M /-% 6M M /-% Austria % % % Czech Republic % % % Slovakia % % % Poland % % % Romania % % % The Baltic n.a n.a n.a. Hungary % % % Bulgaria % % % Turkey/Georgia % % % Georgia % % % Turkey % % % Remaining CEE % % % Albania % % % Bosnia & Herzegovina % % % Croatia % % % Macedonia % % % Moldova % % % Serbia % % % Ukraine % % % Other markets n.a n.a % Germany n.a n.a % Liechtenstein n.a n.a n.a. 50

51 6M 2016 Premiums by business lines and country (II) IFRS ( mn) GWP Life regular GWP Life single GWP Health 6M M /-% 6M M /-% 6M M /-% Austria % % % Czech Republic % % % Slovakia % % % Poland % % % Romania % % % The Baltic % % % Hungary % % % Bulgaria % % n.a. Turkey/Georgia n.a n.a % Georgia n.a n.a % Turkey n.a n.a % Remaining CEE % % % Albania n.a n.a % Bosnia & Herzegovina % % n.a. Croatia % % n.a. Macedonia n.a n.a % Moldova n.a n.a % Serbia % % % Ukraine % % % Other markets % % n.a. Germany % % n.a. Liechtenstein % % n.a. 51

52 6M 2016 Country overview GWP / PBT / CoR IFRS ( mn) GWP Total Profit before taxes Combined Ratio net 6M M /-% 6M M /-% 6M M /-pp Austria 2, , % % 99.3% 96.6% 2.7 Czech Republic % % 92.8% 89.8% 3.0 Slovakia % % 96.5% 95.6% 0.9 Poland % % 99.7% 96.8% 2.9 Romania % % 101.0% 103.2% -2.2 The Baltic % % 131.1% 0.0% Hungary % % 105.0% 106.5% -1.5 Bulgaria % % 99.0% 101.4% -2.3 Turkey/Georgia % % 97.0% 101.5% -4.5 Georgia % % 72.7% 54.3% 18.4 Turkey % % 102.2% 110.5% -8.3 Remaining CEE % % 99.5% 97.1% 2.4 Albania % % 100.2% 94.1% 6.1 Bosnia & Herzegovina % % 103.7% 104.3% -0.6 Croatia % % 97.9% 93.6% 4.3 Macedonia % % 86.4% 85.1% 1.2 Moldova % % 121.2% 117.7% 3.5 Serbia % % 103.7% 109.9% -6.2 Ukraine % % 99.8% 95.4% 4.3 Other markets % % 84.4% 83.6% 0.8 Germany % % 84.4% 83.6% 0.8 Liechtenstein % %

53 6M 2016 development for P&C business according to VAG (Austrian Insurance Supervision Act) IFRS ( '000) / 6M 2015 restated 6M M /-% Overall result for direct business Gross direct premiums written 2, , Gross direct Underwriting result Financial result Direct reinsurance cessions Subtotal Overall result for indirect business Gross indirect premiums written Gross indirect n.a. Indirect reinsurance cessions Subtotal Overall result for direct and indirect retention Other non-underwriting income and expenses n.a. Expenses for profit-related premium refunds n.a. Profit before taxes Taxes Net profit (Profit for the period) Note: Gross direct total of 325mn ( 481mn) includes commissions of 579mn ( 584mn) for direct insurance business. 53

54 6M 2016 development for life business according to VAG (Austrian Insurance Supervision Act) IFRS ( '000) / 6M 2015 restated 6M M /-% Overall result for direct business Gross direct premiums written 1, , Gross direct Underwriting result n.a. Financial result n.a. Direct reinsurance cessions Subtotal Overall result for indirect business Gross indirect premiums written Gross indirect Indirect reinsurance cessions n.a. Subtotal Overall result for direct and indirect retention Other non-underwriting income and expenses n.a. Expenses for profit-related premium refunds Profit before taxes Taxes Net profit (Profit for the period)

55 6M 2016 development for health business according to VAG (Austrian Insurance Supervision Act) IFRS ( '000) / 6M 2015 restated 6M M /-% Overall result for direct business Gross direct premiums written Gross direct Underwriting result n.a. Financial result n.a. Direct reinsurance cessions n.a. Subtotal Overall result for indirect business Gross indirect premiums written Gross indirect Indirect reinsurance cessions n.a. Subtotal Overall result for direct and indirect retention Other non-underwriting income and expenses n.a. Expenses for profit-related premium refunds n.a. Profit before taxes Taxes Net profit (Profit for the period)

56 6M 2016 P&C Claims and cost ratio details Claims ratio 6M y-o-y regional development (net, %) Remarks for claims incurred 6M Slovakia: claims ratio development distorted by nonrecurring positive impacts last year Poland: increase because of motor as well as some bigger claims in property Romania: claims ratio increased in line with business development AT CZ SK PL RO Cost ratio 6M y-o-y regional development (net, %) Remarks for acquisition and admin. expenses 6M Austria: cost ratio increased by 2.2%p based on changed cost pooling Slovakia: HY 2015 impacted by higher commissions Poland: cost ratio down 3.0%p due to lower commission rate and administration costs Romania: cost ratio decrease of 3.9%p supported by increased net earned premiums AT CZ SK PL RO 56

57 6M 2016 Exchange rates 6M M 2015 Country Currency Balance Sheet Balance Sheet P & L EUR EUR EUR P & L EUR Albania EUR/ALL Belarus EUR/BYR 22, , , , Bosnia EUR/BAM Bulgaria EUR/BGN Croatia EUR/HRK Czech Republic EUR/CZK Georgia EUR/GEL Hungary EUR/HUF Latvia EUR/LVL Liechtenstein EUR/CHF Lithuania EUR/LTL Macedonia EUR/MKD Moldova EUR/MDL Poland EUR/PLN Romania EUR/RON Serbia EUR/RSD Turkey EUR/TRY Ukraine EUR/UAH

58 S&P rating confirmed in July 2016: A+/stable/-- VIG remains the best rated company in the ATX Anchor: a+ Business Risk Profile: Strong Strong competitive position, based on leading market positions in Austria and CEE Sound diversification by business line and a well-established multichannel distribution strategy Financial Risk Profile: Very Strong Extremely strong capital adequacy, above the required at the AAA level in 2015 Conservative investment portfolio and comprehensive reinsurance coverage Modifiers: 0 ERM and Management: 0 Enterprise risk management is adequate with strong risk controls Management and governance are strong reflecting the clear and credible strategic planning and its conservative financial management Rating: A+/Stable Outlook: Stable VIG will sustain its very strong competitive position in Austria and its leading market position in CEE VIG management committed to maintaining strong capitalisation which supports S&P rating of A+ Source: S&P Rating Report July

59 VIG share (I) Current analyst recommendation split Share price development 6M 2016 Sell Buy High EUR Low EUR Price as of 30 June EUR Market cap. EUR 2.2 bn Development YTD % Hold VIG compared to ATX and Stoxx Europe 600 Ins Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 VIG SXIP Indexed 04 Jan-16 (Basis = 100) 59

60 VIG share (II) General information Number of common shares: 128mn ISIN: AT Listings: Vienna since 17 Oct Prague since 5 Feb Ticker: Vienna Stock Exchange: VIG Bloomberg: VIG AV / VIG CP Reuters: VIGR.VI / VIGR.PR Rating: Standard & Poor s: A+, stable outlook Major Indices: ATX, ATX Prime, PX Shareholder structure Wiener Städtische Wechselseitiger Versicherungsverein - Vermögensverwaltung Vienna Insurance Group ~70% Free float split by region 1 Continental Europe Remaining ~27% ~13% UK & Ireland 1) Split of identified shares as of June 2016 ~8% ~30% Free Float Austria ~26% ~25% North America 60

61 Contact details Investor Relations Date 26 Jan Financial calendar 2016 Event Publication: Preliminary unconsolidated premiums Apr Results and Embedded Value May 2016 Annual General Meeting 18 May 2016 Ex-dividend-day 19 May 2016 Record date 20 May 2016 Dividend payment day 24 May 2016 Results for the first quarter Aug Results for the first half-year Nov Results for the first three quarters 2016 Investor Relations Team Vienna Insurance Group Schottenring 30, 1010 Vienna Nina Higatzberger-Schwarz (Head of IR) Tel. +43 (0) Olga Flattenhutter Tel. +43 (0) Emir Halilović Tel. +43 (0) Daniela Lemmel-Seedorf Tel. +43 (0)

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63 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.