vig corporate presentation - vienna insurance group

VIG VIENNA INSURANCE GROUPCORPORATE PRESENTATION

PROTECTING WHAT MATTERS.

April 2021

OVERVIEW

VIG VIENNA INSURANCE GROUP

A+1994

2225,000

WELCOME TO VIENNA INSURANCE GROUP!

3 OVERVIEW

We are the leading insurance group in Central and Eastern Europe.

More than

employees

More than

millioncustomers

Around

Group companies50

STOCKEXCHANGEon the Vienna Stock Exchange

VIG share listed on the Vienna & Prague VIG share since

Cooperation with

the largest retail bank in CEE

Represented in

countries30

with stable outlook

Erste Group

Standard & Poor‘s Rating


AT HOME IN 30 COUNTRIES

4 OVERVIEW


CAPITAL MARKETS – KEY FACTS ABOUT VIG SHARE

5 OVERVIEW

~72% ~28% A+MAIN SHAREHOLDER FREE FLOAT STANDARD & POOR´S

DIVIDEND POLICY

KEY SHARE FIGURES0.75 Euro*

3.6%** 132.89 m

128 m

~2.66 bn

*Dividend proposal for 2020

Dividend yield for 2020

Wiener StädtischeVersicherungsverein

VIG share is listed on the ATX,the index of leading shares onthe Vienna Stock Exchange, andon the Prague Stock Exchange

rating withstable outlook

Dividend Policy:The dividend policy defines a payout ratio in the range of 30 to 50% of Group profits after taxes and non-controlling interests. The aim is to keep the dividend per share aligned with Group performance. The dividend payout ratio 2020 amounts to 41.5%**

Share capital (EUR)

ordinary shares

Market capitalisationStatus: 31 December 2020

(EUR)

** According to dividend proposal for 2020

VIG VIENNA INSURANCE GROUPOVERVIEW6

Our market position in Central and Eastern Europe

Status: 1st to 3rd quarters of 2020 (HU: Q4 2019, Sl: 1st half of 2020)

No. 1Austria

Baltic statesBulgaria

Czech RepublicNorth Macedonia

RomaniaSlovakia

Top 5Albania

Bosnia and Herzegovina

CroatiaGeorgiaKosovoMoldovaPolandSerbiaUkraine

<or>10BelarusHungary

MontenegroSloveniaTurkey

2

3

10

1

11

1

1

11 2

5

4

44

3

2

5

6

7

>10

>10

THE LEADING INSURANCE GROUP IN CEE

VIG VIENNA INSURANCE GROUP7 OVERVIEW

YOU CAN COUNT ON US

€10.4bn

PREMIUM VOLUME

€346mn

PROFIT (BEFORE TAXES)

95%

COMBINED RATIO

KEY FIGURES 2020

238%

SOLVENCY RATIO

€ 596,3mn

FINANCIAL RESULT

€ 36.6bn

INVESTMENTS

€ 231.5mn

NET RESULT


OUR MANAGEMENT

8 OVERVIEW

AL: Albania, AT: Austria, BA: Bosnia and Herzegovina, BG: Bulgaria, BY: Belarus, CZ: Czech Republic, DE: Germany, EE: Estonia, GE: Georgia, HR: Croatia, HU: Hungary, KO: Kosovo, LI: Liechtenstein, LT: Lithuania, LV: Latvia, MD: Moldova, MK: North Macedonia, MNE: Montenegro, PL: Poland, RO: Romania, RS: Serbia, SK: Slovakia, TR: Turkey, UA: Ukraine

Pho

tos:

Ian

Ehm

Management of the VIG Group,General Secretariat and Legal,

Affiliated companies department,European Affairs,

Communications & Marketing,Sponsoring,

Bancassurance and international partnerships,

Human Resources

Country: DE

CEO Chair of the Managing Board

Elisabeth Stadler

Liane HirnerCFRO

Member of the Managing Board

Finance and Accounting,Enterprise RiskManagement,

Asset-Risk Management,Digitalisation Finance and

Risk

Country: LI

Corporate and large customer businessVienna International Underwriters (VIU),

Reinsurance

CEE Region South(AL, BA, BG, KO, HR,

MD, MK, MNE, RO, RS)


Peter Höfinger Peter ThirringCTO


Non-Life Insurance,Life & Health Insurance,

Actuarial Department

Country: TR

Responsibilities of the entire Managing Board: Compliance, Internal Audit, Investor Relations

Data Management & Processes,

Group IT-Functions, Holding IT,

Asset Management,Real Estate,

Group Treasury,Asset Liability Management

Country: GE

COOMember of the Managing Board

Gerhard LahnerHarald Riener


Customer Experience,Assistance,

Sales Toolbox

CEE Region North (EE, LT, LV, PL, UA)

Gábor LehelCIO


Digital Transformation,Eco-systems & Platforms

Country: BY

Hartwig LögerMember of the

Managing Board

Strategy and Development, Planning and Controlling

CEE Region Central (AT, CZ, HU, SK)


FIRST MOVER IN CEE

9 OVERVIEW

Expansion to Eastern Europe shortly after the fall of the Iron Curtain 1989

1 bn EuroPremium volume~5,600 employees

3 Group companiesAustria

2020> 10 bn Euro

Premium volume ~25.000 employees

~50 Group companies30 countries

1996 1999 2002 2004 2007 2010 2014

1990 1998 2001 2003 2005 2008 2011

Czech RepublicSlovakia

Germany Poland Romania Serbia Georgia

Estonia Latvia

LithuaniaBosnia and

Herzegovina

Hungary LiechtensteinCroatiaItaly

BulgariaBelarus

SloveniaUkraine

AlbaniaKosovo North MacedoniaTurkey

Montenegro Moldova

2019SwedenNorwayDenmark

2018France


A LOOK AT OUR HISTORY

10 OVERVIEW

1824

Establishment ofWechselseitige k.k.priv. Brandschaden Versicherungs-Anstalt, the Group’s initial predecessor company.

Both office buildings on Kärntner Ring in Vienna are destroyed during air raids. After the end of the war, the company’s reconstruction begins with a small group of employees.

A new headquarters on Vienna’s Schottenring is commissioned.

The Ringturm – Austria’s first modern high-rise office building – opens.It symbolised Austria’s post-war economic recovery and regained freedom.

Acquisition of a stake in Donau Versicherung AG (founded in 1867) lays the foundations for today’s multi-brand strategy.

Initial plans for expansion into Eastern Europe, and establishment of Kooperativain Bratislava, in what was then Czechoslovakia, as the first private insurer in the former Communist bloc.

The Group’s preference shares are listed on the Vienna Stock Exchange.

Stock market offensive including a capital increase, and the VIG share is included in the ATX for the first time; Since 2008, the VIG share is listed on the Prague Stock Exchange.

Regular artistic wrapping of the Ringturm as a contribution to art in public spaces. The wrapping is created by artists from Austria and the CEE countries where Vienna Insurance Group has a presence.

Second capital increase raises over EUR 1bn; cooperation agreement with Erste Group .

VIG Holding, the management entityfor the listed Group,is formed.

Second World War 1952 14 June 1955 1971

1990 2005 2008 2010October 1994 since 2006

The Group’s origins go back to 1824.

INSIGHT


OUR MISSION STATEMENT

12 INSIGHT


OUR VALUES

DIVERSITY CUSTOMER PROXIMITYBecause of our presence in 30 countries, primarily in Central and Eastern Europe, we have an in-depth understanding of local circumstances. Sharing knowledge, ideas and experience within the Group is part of day-to-day operations. Diversity is one of our success factors and core values. In a way, it is part of Vienna Insurance Group’s DNA.

We have strong roots, both internationally and locally. Thanks to our local employees, we are more than familiar with the typical needs of customers in our different countries and markets. This allows us to offer tailored solutions and maximise customer satisfaction in all of our markets.

RESPONSIBILITYWe draw on experience to safeguard our customers’ futures as effectively as possible. A sense of responsibility and respect are always central to our relationships with our customers, business partners, shareholders and society as a whole.

INSIGHT13


OUR CORPORATE STRATEGY

We focus on providing our customers in CEE with customised products and services tailored to their needs. Our strategy is geared towards long-term profitability and continuous earnings growth, making us a reliable and stable partner in rapidly changing times.

The core elements of our strategy:

CORE BUSINESS INSURANCEFOCUS ON CEE

Pho

to: R

ober

t New

ald

INSIGHT14


OUR MANAGEMENT PRINCIPLES

Local entrepreneurshipKnowledge of local needs and markets Decentralised structures and efficient decision-making procedures

Multi-brand strategyAround 50 Group companies in 30 countriesUtilisation of established local brands

Multi-channel distributionVarious distribution channels, including partnership with Erste GroupStrongly customer-oriented distribution

Conservative investment andreinsurance policy

Quality, peace of mind and sustainability are our prioritiesSpreading risk by means of diversification

1

2

3

4

INSIGHT15

OUTLOOK


KEEPING FIT FOR THE FUTURE

Expanding lines of business Digitisation and innovations Expanding our range of assistance services Insurance of the future, sustainability

Maximising of cost effectiveness Shared services and mergers Closed File Review Anti-fraud

OUTLOOK17

Creating a value proposition to increase operational performance Measures to adapt the business model to future opportunities

Within our strategic measures, we focus on leveraging market potential to generate profits, while also ensuring its ability to meet future challenges and pursuing a business model that maximises cost effectiveness.

Die VIG Holding berät und unterstützt die Versicherungsgesellschaften in einer steuernden und fördernden Weise.Wir agieren als Partner und als Team. Im Fokus steht der langfristige Mehrwert für die Versicherungsgesellschaften.

ORGANISATION & ZUSAMMENARBEIT

OPTIMISATION OF BUSINESS MODEL

ENSURING FUTURE VIABILITY


HIGHLIGHTS OF IMPLEMENTED MEASURES 2017-2020

OUTLOOK18

Shared services and mergers 13 mergers in 11 countries

Bancassurance Cooperation with Erste Group extended

until the end of 2033 Selling of insurance via George

Closed File Review Methodology for optimising

claims payment processes Savings of > 5% of the claims

volume, EUR 45 mn

Anti-fraud Group-wide tool for anti-fraud

management in mass lines of business Savings of > 3% of the claims

payments, EUR 28 mn Reinsurance Expansion in D-A-CH region, France, Benelux countries Premium increase of VIG Re by around 50%

Health insurance Premium increase by 122% in the focus

countries Bulgaria, Poland, Romania, Hungary, Turkey

Assistance Over 1.3 mn assistance cases handled Group’s own assistance in 10 countries

VIG VIENNA INSURANCE GROUP19 OUTLOOK

WE STILL SEE GREAT POTENTIAL IN CEE

Insurance density in CEE is significantly lower than in Western Europe and Austria

Insurance density 2019 in EUR (premiums per capita)

42.6

78.4

82.6

104.1*

116.8

119.5

212.7

342.5

344.4

365.1

374.2

416.9

576.0

1 967.4

3008.5*

UkraineSerbia

North MacedoniaBosnia a. H.

TurkeyRomaniaBulgaria

LithuaniaCroatia

HungaryPoland

SlovakiaCzech Republic

AustriaEU-15

Source: Axco* Data from 2018

VIG VIENNA INSURANCE GROUPOUTLOOK20

Profit before taxesEUR 450 – 500 mn

Premium volumeat the level of 2020

Combined ratio~ 95%

FORECAST FOR 2021Estimates taking into account current developments and major uncertainty factors

FORESIGHT


DIGITISATION AND INNOVATIONS

Around 180 ongoing projects by VIG Group companies

Internal measures Digitisation Hub Poland Setup of own start-ups and hubs (e.g. viesure, beesafe) Group-wide competition VIG Xelerate

External measures Cooperation with Digital Impact Labs Leipzig Cooperation with Plug & Play in Silicon Valley Participations in start-ups (e.g. ViveLaCar, IST Cube)

FORESIGHT22

Yearly investment in digitisation of about EUR 50 million

VIG VIENNA INSURANCE GROUP23 FORESIGHT

OUR EMPLOYER BRANDING

Vienna Insurance Group is committed to being an attractive employer and strengthening its position in this regard. This is reflected in our professional corporate image and the respect we show for job applicants. In 2020, our efforts were awarded multiple times.

However, excellent employer branding starts with a company's existing employees. We want our employees to be proud to work for us. Satisfied employees serve as ambassadors inside and outside the company. Development opportunities, coupled with the feeling of being respected, result in increased motivation and improved performance.

DIVERSITY AND INCLUSION IS PART OF EVERYTHING WE DO We see diversity as a reflection of the similarities and differences that we encounter at VIG Holding, in our markets, at the local Group companies, as well as our partners, customers and employees. Diversity management involves genuine respect for an open-minded approach and conscious efforts to capitalise on our diversity. We respect the cultures and traditions of the various countries and markets in which we offer our insurance services and we are committed to promoting equal opportunities with regard to the employment and promotion of staff.

VIG VIENNA INSURANCE GROUP24 FORESIGHT

OUR SUSTAINABILITY STRATEGY

We are a responsible, forward-looking company, and we are committed to linking our financial targets with social and environmental aspects.

Our activities are focused on:CSR IN OUR CORE BUSINESS SOCIETY

ENVIRONMENTCUSTOMERS

EMPLOYEES

Sustainable management and compliance with rules and regulations

Involving the community

An environmentallyfriendly mind-set

Responsibility for products and customers

Treating employees with respect


First unit-linked life insurance with Austrian environmental certificate Promoting affordable and environmentally friendly housing

FORESIGHT25

SUSTAINABLE INSURANCE AND INVESTMENT STRATEGY

ESG IN THE VIG GROUP

Climate change strategy (withdrawal from the coal sector) Strengthening of sustainable investments (green bonds, infrastructure, renewable energies, etc.) Pioneer as insurer of innovative technologies Issue of a sustainability bond of EUR 500 million in the year 2021

SUSTAINABLE PROVISION

CONFIRMATIONS FOR SUSTAINABLE STRATEGY Listed in sustainability indices FTSE4Good und VÖNIX Inclusion in UN Global Compact


DIVERSITY IS ONE OF OUR BEST INGREDIENTS

FORESIGHT26

BCG GENDER DIVERSITY INDEX AUSTRIA 2020 Awarded with second place under Austria‘s most diverse companies by BCG

RANKING UNDER DIVERSITY LEADERS 2021VIG in the listing of the “Financial Times Diversity Leaders 2021” for the first time

The index analyses the gender balance and pay gaps in the managing and supervisory board for the 50 largest listed companies in Austria.* Boston Consulting Group

BCG* Gender Diversity Index Austria 2020

I see these awards as confirmation of our strategy to not just define diversity as our core value, but instead view it as a competitive factor in a comprehensive diversity strategy. To us, diversity management means genuine appreciation, open acceptance and conscious use of our diversity. Elisabeth Stadler, CEO


EXCELLENT EMPLOYER

27

FORBES 2020 – WORLD’S BEST EMPLOYERS RANKING Listed again by Forbes as one of the 750 best employers in the world

BEST RECRUITERS D-A-CHVIG Holding leads insurance sector again and is among the Top 20 employers in theGerman-speaking countries

BEST RECRUITERS AUSTRIA 2020/2021VIG Holding receives gold award for Employer Branding & Recruiting four times in a row and as industry leader

TOP COMPANY AT KUNUNU VIG Holding recommended as Top Company by employees

FORESIGHT


RECENT AWARDS

28

FORBES GLOBAL 2000 – AMONG THE WORLD’S LARGEST PUBLIC COMPANIESRanked 1131 in the 2020 Forbes ranking - as fourth largest Austrian company

AMONG THE TOP 3 MOST IMPORTANT INSURANCE COMPANIES IN AUSTRIAA study by market Institut selected VIG among the three most important insurance companies for Austria

MOST INNOVATIVE INSURER 2020Voted by Austrian financial magazine „Börsianer“ as most innovative insurancecompany 2020 for the second time in succession

ELISABETH STADLER RANKED BEST INSURER IN AUSTRIAVIG CEO Elisabeth Stadler has reached first place in “Börsianer” magazine’s peer group ranking "The 50 best insurers in Austria" for the second time in a row

FORESIGHT

PUBLICATION DETAILS

Publisher and proprietorVienna Insurance Group1010 Wien, Schottenring 30, FN 75687 f

Contact detailsAddress: Schottenring 30, Postfach 80A-1011 Vienna, AustriaTel.: +43 (0)50 390 ext. 22000E-mail: [email protected] Website: www.vig.com

Produced by Group Communications & MarketingContact: Wolfgang HaasTel.: +43 (0)50 390 ext. 21029, E-mail: [email protected]: Ian Ehm, Robert Newald, Börse Express

NoteTo enhance readability, this presentation does not use gender-specific language. The relevant formulations apply to both sexes, in the interests of gender equality.

Disclaimer: Although this presentation was prepared with the utmost care, such condensed information may leave an unclear or incomplete impression. This presentation contains forward-looking statements based on current estimates and information. The Group is not obliged to update such forward-looking statements or adapt them in view of future events or developments.

Presentation last updated April 2021

vig corporate presentation - vienna insurance group

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