PRESS CONFERENCE. Vienna Insurance Group. Preliminary results for 2017 and current developments. Vienna, 22 March 2018

Transcription

1 PRESS CONFERENCE Vienna Insurance Group Preliminary results for 2017 and current developments (based on preliminary and unaudited data) Vienna, 22 March 2018

2 1 PRELIMINARY RESULTS FOR TARGETS FOR 2018 AND OUTLOOK FOR CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA

3 PRELIMINARY RESULTS FOR 2017

4 KEY FIGURES FOR 2017 Preliminary results Premium volume Profit before taxes Combined ratio Dividend ~EUR 9.4b ~ EUR 443m 96.7% EUR % +8.8% % PRELIMINARY RESULTS FOR 2017

5 LONG-TERM INVESTMENT IN DYNAMIC MARKETS Take advantage of the positive effects of a long-term business strategy Growth in economic output since market entry 350 BIP (KKS), subspricted (year of market entry = 100) Slovakia Romania Poland Hungary Czech Republic Bulgaria Croatia Tschechien Czech Rep. Slowakei Slovakia Hungary Ungarn Polen Poland Rumänien Romania Bulgaria Bulgarien Kroatien Croatia Source: EU Commission (Eurostat/Ameco), March PRELIMINARY RESULTS FOR 2017

6 LONG-TERM TREND: FASTER GROWTH IN THE CEE REGION Economic growth in the CEE region was, is and will remain higher than in the EU-15. Annual economic growth in the CEE region and EU-15 10% real, in % p.a. 8% Forecast 6% 4% 2% 0% -2% % -6% CEE EU-15 Source: IMF World Economic Outlook database, October PRELIMINARY RESULTS FOR 2017

7 PREMIUMS AND PROFIT SHARE Around 55% of 's premiums are generated in Central and Eastern Europe Non-CEE ~ 45% Around 57% of 's profits are generated in Central and Eastern Europe Non-CEE ~ 43% CEE ~ 55% CEE ~ 57% Non-CEE: Austria, Germany, Liechtenstein 7 PRELIMINARY RESULTS FOR 2017

8 VALUES Diversity Customer proximity Responsibility 8 PRELIMINARY RESULTS FOR 2017

9 PREMIUMS Premiums written by line of business, IFRS, in EUR millions Significant increase in premiums in all lines of business, except the single-premium business +6% ,752 3,973 +2% 2,493 2,549 1,300 +6% 1, % 1,076 1,255-12% 1,106 +9% Kfz-Haftpflichtvers. Motor third party liability Motor own Kfz-damage Kaskovers. Other Sonstige property and Sachversicherung casualty Lebensvers. Reg. prem. Laufend life insurance Lebensvers. Single prem. Einmalerlag life insurance Kranken* Health* * not including health insurance similar to life insurance 9 PRELIMINARY RESULTS FOR 2017

10 PREMIUMS Premiums written by line of segments, IFRS, in EUR millions, total : 9, % % 5,091 4,655 3,9413, % 1,5291, % % % % % Austria Österreich CEE* Czech Tschechische Republic Slowakei Slovakia Hungary Ungarn Bulgarien Bulgaria Poland Polen Sonstige Remaining CEE Republik CEE * CEE: excluding Austria, Germany, Liechtenstein 10 PRELIMINARY RESULTS FOR 2017

11 PREMIUM SHARE BY LINE OF BUSINESS IN 2017 Figures Werte für for 2016 in in Klammer brackets 11.7% 5.9% Health (5.5%) 12.0% 14.9% 28.1% Other property and casualty (27.6%) Regular premium life (27.7%) Motor third party liability (14.5%) Single premium life (14.0%) 27.4% Motor own damage (10.7%) Excl. Central Functions 11 PRELIMINARY RESULTS FOR 2017

12 PROFIT BEFORE TAXES IN 2017 in EUR millions Increase of ~EUR 36 million % PRELIMINARY RESULTS FOR 2017

13 COMBINED RATIO Property and casualty, IFRS, net in % +0.6%p /16 12/17 13 PRELIMINARY RESULTS FOR 2017

14 KEY FIGURES FOR Financial result Investments EUR 924.3m EUR 37.4b -3.6% +3.3% ,236 37,431 Securities/loans Wertpapiere/Darlehen Real Immobilien estate Money Geldmarkt/Cash market/cash Equities Aktien Participations Beteiligungen 0.0% 6.1% 4.8% 15.4% 1.3% Alternative investments Investments 72.4% 14 PRELIMINARY RESULTS FOR 2107

15 EMBEDDED VALUE FOR 2017 Analysis of changes Embedded value for life insurance and health insurance business in EUR millions +12.5% , , angepasst adjusted Neugeschäftswert Value of new businessroll forward Forward Change Annahmenänderungen in assumptions Abweichungen Variances in im financial Geschäftsjahr year und and Sonstige other operational operative Abweichungen variances Ökonomische Economic Veränderungen changes and und other Sonstige nonoperational nicht-operative Abweichungen variances PRELIMINARY RESULTS FOR 2017

16 EMBEDDED VALUE FOR 2017 New business margin in % Austria/Germany CEE Total PRELIMINARY RESULTS FOR 2017

17 PROPOSED DIVIDEND FOR 2017 Dividend increase to EUR 0.90 (+12.5%) Dividend payout ratio 38.7% Dividend yield 3.49% Dividend policy: Minimum distribution of 30% of net Group profit after minority interests remains unchanged since PRELIMINARY RESULTS FOR 2017

18 TARGETS FOR 2018 AND OUTLOOK FOR 2020

19 CEE ECONOMY REMAINS DYNAMIC Average economic growth rate is significantly higher in the CEE region than Austria and the EU-15. Real GDP growth in % p.a Source: IMF World Economic Outlook database, October 2017; Note: Individual countries based on national currencies; CEE region and EU-15 based on IMF exchange rate nom. GDP/nom. GDP USD 19 TARGETS FOR 2018 AND OUTLOOK FOR 2020

20 TARGETS FOR 2018 AND OUTLOOK FOR 2020 Figures in EUR > 10.0b ~ 9.5b 9.4b Premium volume 9.1b. 443m m > 500m Profit before taxes 407m 97.3% 96.7% Combined ratio ~ 95.0% forecast 20 TARGETS FOR 2018 AND OUTLOOK FOR 2020

21 MARKET SHARE IN THE CEE REGION IN 2016* 18.0% IT Mitbewerb competition IT 11.4% AT Mitbewerb competition AT 10.0% PL Mitbewerb competition PL 9.4% D Mitbewerb competition D 8.3% * CEE market share calculations for and competitors: CEE includes all markets except Germany/Liechtenstein/Italy/Slovenia/Turkey and Georgia, data from local insurance supervisory authorities 21 TARGETS FOR 2018 AND OUTLOOK FOR 2020

22 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

23 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020 Business model optimisation Ensuring future viability Organisation and cooperation 23 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

24 BUSINESS MODEL OPTIMISATION Motor insurance profit optimisation Anti-fraud Claims management optimisation Shared services & mergers Around EUR 10m per year in potential savings for foreign motor insurance claims A closed file file review review was already was already performed in in 4 companies 4 companies in Poland in and Lithuania Lithuania in 2017 in 2017 M&A highlights 45 M&A projects implemented 10 acquisitions in the last 3 years 24 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

25 ENSURING FUTURE VIABILITY Assistance Insurance of the future Digitisation Expanding lines of business handled more than 200,000 handled more than assistance cases assistance for its customers in 2017 cases for its customers in 2017 Promoting bank distribution with Erste Group + 32% premium growth in health insurance in 5 key countries 25 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

26 INSURANCE OF THE FUTURE / DIGITISATION Around 50% of our customers will be from Generation Y in 2024 Group of potential customers Age group Needs 100% 4% Babyboomer 30% 49% Advisory services and personal contact are important Generation X 48% 47% Telephone advisory services possible, some demand for online services Generation Y 22% High demand for online services CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

27 INSURANCE DIGITISATION WILL TAKE PLACE IN 2 WAVES The first wave has already arrived Wave 1 Digitalisation of current operating model Wave 2 Creation of new business models Business affected Business affected Time Digital to Consumer mobile and digital interfaces with customers Process and workflow automation, especially routine cases Creation of additional services that are scalable because they are automated Time New services offered by insurance companies based on new business model New forms of interaction created along the customer journey Requires digitisation of current operating model 27 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

28 DIGITAL VISION Sales promotion Customer experience Organisation and culture Digital product range Intelligent use of data Automation 28 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

29 EXAMPLES OF DIGITAL SALES PROMOTION Mobile customer advisory services based on current life situation Sales promotion Smart & Easy Customer experience Organisation and culture Digital product range Klara Intelligent use of data Automation 29 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

30 EXAMPLES OF DIGITAL PRODUCTS Apps for mobile sales of motor insurance Sales promotion Customer experience Organisation and culture Digital product range Intelligent use of data Automation 30 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

31 EXAMPLES OF AUTOMATION Genesis digitisation project Use of robot technology and artificial intelligence to automate workflows Testing and use of telematics Bot testing Customer experience Sales promotion Organisation and culture Digital product range Intelligent use of data Automation 31 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

32 DIGITISATION INITIATIVES Xelerate An initiative that supports projects aimed at the digital transformation of Group companies submit digitisation projects Project checked for relevance to the company and Group Project receives financial support from 32 CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

33 Schützen, was zählt.