20/09/2024 European Financials Conference 2024
Investor Presentation
mBank
WELL DIVERSIFIED AND SOLIDLY CAPITALISED INSURANCE GROUP WITH CONTINUOUS DIVIDEND PAYOUTS SINCE 1994
Represented in
30
More than
50
Insurance service revenue of € 10.9bn at YE 2023
markets
Around
32 million
customers served by ~30,000 employees
Solvency Ratio
269%
insurance companies and pension funds
S&P Rating
A+
with stable outlook
Dividend per share for 2023:
€1.40
Health
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Life1 |
MTPL |
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14.1% |
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17.4% |
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6.8%
Motor own
14.7% damage (casco)
47.0%
as of
Continuous dividend payout since 1994
Other property & casualty
1 Life insurance is divided into life with profit participation (7.8%),
life without profit participation (5.4%) and unit- & index-linked life (0.9%)
2
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STRATEGY |
VIG |
VIG - LEADING INSURANCE GROUP IN CEE
VIG as early mover with excellent market shares
NO
Top 3
Albania Baltic states
FIBulgaria Czech Republic Hungary
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Country |
Market positions |
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Non-life |
Life |
Total |
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1 |
1 |
1 |
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1 |
1 |
1 |
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4 |
4 |
4 |
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2 |
1 |
1 |
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2 |
2 |
1 |
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1 |
1 |
1 |
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3 |
2 |
3 |
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2 |
6 |
2 |
Total Market Share
22.6%
31.6%
9.4%
29.0%
24.6%
19.6%
13.3%
11.2%
FR
DK
DE
LI
SE
CZ
1
AT
1
SI
Slovakia
2
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LV |
>Top 3 |
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1 |
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LT |
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1 |
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BY |
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PL |
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SK |
UA |
2 |
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1 |
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MD |
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HU |
1 |
Special |
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RO |
Markets |
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1 |
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VIG operating in:
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20 |
+ |
10 |
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Core Markets |
Special Markets |
Source: local authorities; FY 2023 (Q3 2023:
HR
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BA |
RS |
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BG |
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3 |
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AL |
MK |
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2 |
1 |
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TR
3
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STRATEGY |
VIG |
DYNAMIC DEVELOPMENT SINCE EU ACCESSION IN THE
CEE MEMBER STATES
VIG markets CZ, EE, HU, LV, LT, PL, SK, SL are becoming EU members as of
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Major developments and future growth drivers |
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GDP per capita as % of EU15 (in pps)1 |
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Within 20 years, GDP per capita grew from as low as 30% of |
80 |
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WesteEuropean levels to over 70% |
60 |
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CEE is well-positioned to capitalise on the nearshoring trend - |
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40 |
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EU to strengthen EU-centric value chains especially in critical/ |
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strategic sectors |
20 |
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Digital transformation is particularly dynamic in the CEE region |
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0 |
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Green transition is seen both as an opportunity and a challenge |
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Romania |
Latvia Lithuania Poland Estonia Croatia Slovakia Hungary Czechia Slovenia |
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for the CEE region given its current substantial reliance on non-renewable energy |
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2004 |
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2022 |
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- EU-CEEeducation spendings increased, creating a well-educated and price-competitivelabour force; promotion of skill development boosts productivity and improves the position of the EU-CEE markets in the global value chains
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Source: wiiw Spring Forecast Report, |
1 Source: AMECO; wiiw Monthly Report, |
4
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STRATEGY |
VIG |
5
4
3
2
1
0 -1
TAKING ADVANTAGE OF THE LONG-TERM GROWTH POTENTIAL IN CEE
Annual insurance spending as indicator for growth potential
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Insurance density 2023 (premiums per capita, in €) |
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Insurance density in 2023 in |
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1,443 |
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786 |
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503 |
502 |
473 |
467 |
455 |
423 |
398 |
272 |
219 |
193 |
189 |
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167 |
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145 |
113 |
83 |
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74 |
60 |
35 |
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Republic |
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Türkiye |
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Czech |
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North |
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GDP growth forecast (real change in % against previous year) |
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4.6 |
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4.5 |
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4,0 |
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3.8 |
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3.6 |
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3.6 |
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3.5 |
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3.5 |
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3,3 |
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3,0 |
2,9 |
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3,0 |
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3,4 |
3,0 |
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3,4 |
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2.7 |
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2.7 |
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2.6 |
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2.6 |
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2.6 |
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Republic |
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Türkiye |
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2024 |
2025 |
2026 |
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Czech |
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Source: VIG internal calculation ( |
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5 |
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VIG |
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STRATEGY |
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STRONG MACROECONOMIC OUTLOOK FOR CEE
Excellent average annual real GDP growth rates (2024-2028) expected for major VIG markets
For most CESEE countries 2024 will be better than 2023
- GDP growth for the EU members in the region is forecasted at average of 2.5%, rising to 3% in 2025 - significantly outperforming the stagnant euro area (0.6%), and still growing next year twice as fast as the euro area (1.6%)
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Romania (3.0%) andCroatia (2.9%) are seen to grow particularly strong in 2024, supported by in-flows from EU fundsCzech Republic ,Poland ,Slovakia andHungary are expected to grow at an average rate of 2.4% this year, rising to 3.0% in 2025
- Inflation in most of VIG markets has slowed significantly on the back of falling food and energy prices, allowing for rapid real wage growth
- Private consumption is driving the growth on the back of rising wages (tight labour markets) and falling inflation
Source: wiiw Spring Forecast Report (
CESEE - Central, East and
Real GDP average annual change 2024 - 2028
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+ 4.0% |
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+ 3.4% |
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+ 3.1% |
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+ 2.9% |
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+ 2.8% |
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+ 2.8% |
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+ 2.6% |
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+ 2.5% |
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Czechia |
+ 2.3% |
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+ 1.9% |
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+ 1.8% |
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+ 1.5% |
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+ 1.4% |
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+ 1.3% |
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Euro area |
+ 1.2% |
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+ 1.0% |
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+ 1.0% |
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+ 0.9% |
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+ 0.7% |
Source:
6
|
STRATEGY |
VIG |
SUCCESS IS BUILT ON DIVERSIFIED AND RESILIENT BUSINESS MODEL
VIG's 4 proven management principles
Local entrepreneurship
Multi-brand policy
- Knowledge of local needs and markets
- Decentralised structures & efficient decision-making procedures
VIG Holding responsible for steering the Group
- Utilisation of established local brands Local identification through market-specific brand(s)
- "
Vienna Insurance Group " underlines the Group's internationality and strength
Multi-channel distribution
8%
Conservative investment and reinsurance policies
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Various distribution channels |
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(incl. partnership with Erste |
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Group) |
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Strongly customer-oriented |
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distribution |
35%
49%
8%
€ 35.3bn
- Focus on secure and sustainable investments
- Spreading risk by means of diversification
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Employed sales forces & tied agents |
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Brokers & agents |
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Banks |
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Other (incl. online sales) |
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2023
Investments held at VIG's own risk
7
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STRATEGY |
VIG |
VIG 25 STRATEGIC PROGRAMME SECURES FURTHER DYNAMIC DEVELOPMENT
Initiatives and projects to optimise, enhance and expand VIG's business model
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STRATEGIC TRENDS |
DEVELOPMENTS |
OBJECTIVES
VIG 25 STRATEGIC
DIRECTIONS & INITIATIVES
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OPTIMISE |
ENHANCE |
EXPAND |
CO³
COUNTRYCOMMUNICATION
PORTFOLIOSCOLLABORATION
COOPERATION
VIG PRINCIPLES
Optimise operational excellence by
- simplification and automation of processes
- exchange and implement best practices
- further optimisation in underwriting and pricing
Enhancecustomer value and access including partnerships and platforms
- increase visibility and attractiveness of products
- moving towards a hybrid sales model
Expand value chain beyond insurance
- focus on asset management
- become more active in pension fund business
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8 STRATEGY |
VIG |
GROUP-WIDE SUSTAINABILITY PROGRAMME COMPLEMENTS VIG 25 STRATEGIC PROGRAMME
Sustainability in VIG means creating economic value today without doing so at the expense of tomorrow
Objectives
Social focus Environmental focus
Objectives
- Promote risk literacy
- Grow corporate volunteering
Focus on customer satisfaction
Close the protection gap
SUSTAINABILITY
ALONG OUR
BUSINESS MODEL
- Reduce emissions of investment
portfolio to net zero by 2050
Reduce emissions of corporate and
retail underwriting portfolios to net
zero by 2050
Increase the share of sustainable products
- Attractive employerwith equal opportunities for all
- Employee focus
Climate neutral operation of our offices by 2030, net zero by 2050
9
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STRATEGY |
VIG |
RISK AWARENESS AND RISK LITERACY IN CEE TO BE IMPROVED
VIG defines risk literacy as the ability to make informed and considerate decisions in relation to risks
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Risk literacy in CEE according to a representative study not particularly strong |
The global protection gap |
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(need in % of economic loss)1 |
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76 |
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Around 2/3 of the population have little to no awareness of the health, work, housing, liability, and |
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57 |
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cyber risks and believe that the public authorities would intervene |
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22 |
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7 out of 10 respondents do not believe that the risks are likely to become a reality, despite |
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judging potential loss/damage to be high |
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Health |
Mortality |
NatCat |
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Insurance |
889 |
406 |
368 |
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potential ($ bn) |
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1 out of 5 has taken no risk-prevention measures at all |
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In addition to GDP growth and increased wealth of the population,
improved risk literacy is an important driver for further developing insurance density,
reaching potential future customers and helping individuals and society to achieve economic resilience (closing the protection gap).
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Reference: Representative study by |
1 Source: Insurance Resilience Index of |
10
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STRATEGY |
VIG |
Attachments
Disclaimer
Forex Today: RBA Leaves Rated Unchanged at 4.35% – 24 September 2024
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