VIENNA INSURANCE GROUP AG 2023 Preliminary Results Presentation
Vienna, 12 March 2024
HIGHLIGHTS
OUTLOOK
SEGMENTS
APPENDIX
Please note that rounding differences may occur Comparative figures for 12M 2022 restated due to IFRS 17/9
PRESENTERS
Hartwig LÖGER, CEO
Peter HÖFINGER, Deputy CEO
Liane HIRNER, CFRO
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VIG
VIENNA INSURANCE GROUP
STRONG KEY PERFORMANCE INDICATORS OF VIG
Solid results and proof of resilience again in 2023
Insurance service revenue | Profit before taxes | Net Combined Ratio (P&C) | ||
€ 10,921.8mn | € 772.7mn | 92.6% | ||
▪ Revenue up by 12.2% | ▪ Significant PBT increase by 31.9% | ▪ Net COR improved by 0.2pp | ||
▪ 12M 2022: € 9,737.6mn | ▪ 12M 2022: € 585.7mn | ▪ 12M 2022: 92.8% |
Earnings per share | Operating Return on Equity | Solvency Ratio | ||
€ 4.31 | 15.1% | 269% | ||
▪ Net profit after taxes and non-controlling | ▪ 31/12/2022: 11.6% | ▪ Own funds: € 10,345mn | ||
interests 2023 of € 559.0mn | ||||
▪ | SCR: € 3,847mn | |||
▪ 31/12/2022: € 3.63 | ||||
▪ | 12M 2022: 280% | |||
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HIGHLIGHTS | VIG |
VIENNA INSURANCE GROUP
DIVIDEND PROPOSAL OF € 1.40 PER SHARE
Attractive dividend yield in line with the industry
Earnings per
share
Dividend per
share
Dividend
yield
Year-end
share price
2023 2022
€ 4.31 | € 3.632 |
€ 1.401 | € 1.30 |
5.3%15.8%
26.50 22.35
2021 2020
€ 2.94 | € 1.81 |
€ 1.25 | € 0.75 |
5.0% 3.6%
24.90 20.80
New dividend policy
- Minimum dividend set at the previous year's level based on capital strength of the Group and to reflect the resilience of the business model
- The dividend is to increase continuously depending on the operating earnings situation
- Management proposal, subject to approval of the Annual General Meeting
- IFRS 17/9 adjusted (reported 2022: € 3.58)
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HIGHLIGHTS | VIG |
VIENNA INSURANCE GROUP
ACHIEVEMENTS IN 2023
Sustained development in the VIG 25 Strategic Programme
VIG 25
- Customer Experience (CX) Competence Centre for VIG established and CX measurement approach for annual measurement defined
- VIG launched cashback system for responsible driving in the Czech Republic as part of its ecosystem motor
- First VIG Innovation Day took place in 2023 and a new VIG Xelerate platform got launched
- VIG started Global Assistance in Croatia
- VIG 25 Sustainability Programme defined as an integral part of our business model, with the goal of achieving net-zero greenhouse gas emissions from both the investment and underwriting portfolios by 2050
- Group Sustainability Office (GSO) and Sustainability Committee established
- Risk competence study conducted in 9 CEE countries as basis for targeted activities to increase risk literacy in the CEE region
M&A
- Acquisition of Slovakian pension fund company 365.life by Kooperativa
- Closing of the acquisition of the Polish and Romanian entities of the former Aegon CEE business
- Increasing the stake in the Hungarian business to 90%
- Merger of Polish Group companies underway to strengthen market position in Poland
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HIGHLIGHTS | VIG |
VIENNA INSURANCE GROUP
SUCCESSFUL PARTNERSHIP WITH ERSTE GROUP
Strong double-digit new business growth
Non-life
21.2%
Total
business
GWP
78.8%
Life
- Total gross written premium 2023 stable at € 1.35bn
- Growth in non-life and life regular premium business fully offsets decrease in life single premium business
- Positive development of gross written premium in non-life (+10% YoY); biggest driver is accident insurance followed by household/property
- Importance of online sales via George increasing
- 22% of non-life new business coming from George
Hungary Other SEE | George sales development (number of contracts) | ||||
350,000 | |||||
Romania | 3.2% | ||||
8.9% | 4.1% | ||||
Total | 165,000 | ||||
Slovakia 17.5% | business | 50.0% Austria | |||
GWP | 98,000 | ||||
16.3% | |||||
Czech Republic | 2021 | 2022 | 2023 |
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HIGHLIGHTS | VIG |
VIENNA INSURANCE GROUP
CO3: COMMUNICATION | COLLABORATION | COOPERATION
New strategic focus driven by a dedicated Group function
- Collaboration fosters the exchange of know-how and expertise on all levels across all entities and countries
- Cooperation focuses on identifying synergies between VIG companies being active in the same country
- In line with local entrepreneurship, evaluations along the value chain are carried out by local management teams
- Local management is aware of opportunities and potential limitations such as regulatory requirements of local supervisory authorities, best market practices and cultural sensitivities of local group companies
- Decision on appropriate format of cooperation depending on areas identified; level of institutionalisation ranges from temporary task forces on specific topics, to cooperative projects, up to the creation of competence centres
- Communication provides the framework for all collaboration and cooperation activities and makes them visible via various channels - in addition to regular duties of corporate communications
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HIGHLIGHTS | VIG |
VIENNA INSURANCE GROUP
FINANCIALS
OUTLOOK
SEGMENTS
APPENDIX
Please note that rounding differences may occur Comparative figures for 12M 2022 restated due to IFRS 17/9
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VIG
VIENNA INSURANCE GROUP
GROUP INCOME STATEMENT
12M 2023 (€ mn)
12M 2023 | 12M 2022 | +/- % | ||||
Insurance service result | 1,208.1 | 1,138.8 | 6.1 | |||
Insurance service revenue - issued business | 10,921.8 | 9,737.6 | 12.2 | |||
Insurance service revenue (PAA) | 8,531.5 | 7,516.8 | 13.5 | |||
Expected claims | 1,108.1 | 1,017.7 | 8.9 | |||
Expected directly attributable expenses | 557.4 | 452.8 | 23.1 | |||
Experience adjustment | -48.8 | 2.9 | - | |||
Change of risk adjustment | 161.1 | 157.8 | 2.1 | |||
CSM release | 612.6 | 589.7 | 3.9 | |||
Insurance service expenses - issued business | -9,265.3 | -8,525.8 | 8.7 | |||
Insurance service result - reinsurance held | -448.4 | -73.0 | >100 | |||
Net investment result | 284.3 | -12.2 | - | |||
Finance result | -98.5 | -86.1 | 14.3 | |||
Other income and expenses | -517.9 | -406.7 | 27.3 | |||
Business operating result | 876.0 | 633.8 | 38.2 | |||
Adjustments | -103.3 | -48.1 | >100 | |||
Result before taxes | 772.7 | 585.7 | 31.9 | |||
Taxes | -196.4 | -121.7 | 61.4 | |||
Non-controlling interests | -17.3 | 8.3 | - | |||
Result for the period after taxes and non-controlling interests | 559.0 | 472.3 | 18.3 |
- Insurance service revenue up by €1.2bn primarily due to strong growth in P&C business (PAA)
- Positive development in net investment result mainly driven by interest rate movements
-
Adjustments of € 103.3mn mainly include impairment of goodwill of the Baltics (€ 75.5mn) and impairments of purchased customer bases in
Hungary and Türkiye (€ 20.8mn) - Result before taxes up by € 187.0mn due to the positive development of the insurance service result and net investment result
- Tax ratio of 25.4% (12M 2022: 20.8%)
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FINANCIALS | VIG |
VIENNA INSURANCE GROUP
NET INVESTMENT RESULT
12M 2023 (€ mn)
12M 2023 | 12M 2022 | +/- % | ||||
Net investment result | 284.3 | -12,2 | - | |||
Investment result | 1,893.1 | -809.7 | - | |||
Interest revenue using the effective interest method | 895.8 | 714.9 | 25.3 | |||
Impairment losses incl. reversal gains on financial instruments1 | -56.5 | -104.9 | -46.1 | |||
Other result from financial instruments | 1,053.8 | -1,419.6 | - | |||
thereof: | ||||||
Other ordinary income and managed portfolio fee | 141.8 | 176.0 | -19.4 | |||
FX differences1 | 107.3 | 142.4 | -24.6 | |||
Realised gains and losses | -1.8 | -192.7 | -99.1 | |||
Non-realised gains and losses1 | 772.2 | -1,551.2 | - | |||
Income and expenses from investment property | 31.8 | 37.8 | -15.9 | |||
Insurance finance result1 | -1,657.1 | 741.4 | - | |||
Result from at-equity consolidated companies | 16.5 | 18.3 | -9.8 |
- Very positive development of the net investment result totalling to € 284.3mn
- Main drivers are the investment result (up by
- 2.7bn) and the insurance finance result (down by
- 2.4bn); both impacted by the sharp rise in market interest rates during 2022
- Impairment losses in 2022 include impairment of Russian investment exposure; however, through the sale of Russian bonds in 2023 a profit of
- 21.2mn was achieved
1 Represents valuation results (non-cash components)
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FINANCIALS | VIG |
VIENNA INSURANCE GROUP
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Disclaimer
Vienna Insurance Group AG published this content on 12 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 March 2024 07:21:09 UTC.
