3M 2024 UPDATE PRESENTATION

Peter Höfinger, Deputy CEO

Liane Hirner, CFRO

Gábor Lehel, CIO

Vienna, 29 May 2024

CEE

3M 2024 UPDATE

GLOBAL ASSISTANCE

APPENDIX

Please note that rounding differences may occur

2

VIG

VIENNA INSURANCE GROUP

IMPROVED MACROECONOMIC OUTLOOK FOR CEE

Eastern Europe recovery remains on track

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 growing next year almost twice as fast as the euro area (1.6%)
    • Romania (3.0%) and Croatia (2.9%) are seen to grow particularly strong in 2024, supported by in-flows from EU funds
    • Czech Republic, Poland, Slovakia and Hungary 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, April 2024

CESEE - Central, East and Southeast Europe

GDP forecast (real change in % against prev. year)

2024

2025

2026

Bulgaria

2,0 ↗

2,5

3,0

Czech Republic

1,2 ↘

2,5 ↗

2,7

Estonia

0,4 ↗

3,0 ↘

3,6 ↗

Croatia

2,9 ↗

2,7

3,0

Hungary

1,9 ↘

2,4 ↘

2,9 ↘

Lithuania

1,5

2,2 ↗

2,6 ↗

Latvia

1,6

2,5 ↗

2,7

Poland

3,1 ↗

3,4 ↘

3,3 ↗

Romania

3,0

3,3 ↘

3,8 ↗

Slovenia

2,5 ↘

2,6 ↗

2,6 ↘

Slovakia

1,6

2,2

2,6

Albania

3,6

3,7

3,4

Bosnia-Herzegovina

2,5 ↗

2,9 ↗

3,4 ↗

Montenegro

4,2 ↗

3,7 ↗

3,5 ↗

North Macedonia

2,2

2,6

3,0

Serbia

3,0 ↗

3,3 ↗

3,5 ↗

Kosovo

3,5

3,7

3,6

Türkiye

3,4 ↗

4,0 ↗

4,5 ↗

Belarus

2,0

2,3 ↘

2,5 ↘

Moldova

3,5 ↘

3,5 ↗

4,0 ↗

Ukraine

3,2

4,2 ↗

4,6 ↘

↗↘ change against wiiw Winter Forecast Update, January 2024

3

CEE

VIG

VIENNA INSURANCE GROUP

20 YEARS OF EU ENLARGEMENT TO THE EAST

VIG markets CZ, EE, HU, LV, LT, PL, SK, SL are becoming EU members as of 1 May 2004

Major developments

  • CEE member states of the EU experienced dynamic development since EU accession - within 20 years, GDP per capita grew from as low as 30% of Western European levels to over 70%
  • CEE is well-positioned to capitalise on the nearshoring trend - EU to strengthen EU-centric value chains especially in critical/ strategic sectors
  • Digital transformation is particularly dynamic in the CEE region

GDP per capita as % of EU15 (in pps)1

80

60

40

20

0

Romania Bulgaria Latvia Lithuania Poland Estonia Croatia Slovakia Hungary Czechia Slovenia

  • Green transition is seen both as an opportunity and a challenge
    for the CEE region given its current substantial reliance on non-renewable energy

2004 2022

  • 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

Source: wiiw Spring Forecast Report, April 2024

1 Source: AMECO; wiiw Monthly Report, April 2024

4

CEE

VIG

VIENNA INSURANCE GROUP

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

Risk literacy in CEE according to a representative study not particularly strong

▪

Around 2/3 of the population have little to no awareness of the health, work, housing, liability, and cyber risks and believe that the public authorities would intervene


  • 7 out of 10 respondents do not believe that the risks are likely to become a reality, despite judging potential loss/damage to be high

1 out of 5 has taken no risk-prevention measures at all

The global protection gap (need in % of economic loss)1

76

57

22

Health Mortality NatCat

Insurance 889 406 368 potential ($ bn)

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).

Reference: Representative study by Gallup International | Details: group.vig/everyday-risks-international-study

1 Source: Insurance Resilience Index of Swiss RE, 2022

5

CEE

VIG

VIENNA INSURANCE GROUP

CEE

3M 2024 UPDATE

GLOBAL ASSISTANCE

APPENDIX

Please note that rounding differences may occur

6

VIG

VIENNA INSURANCE GROUP

PREMIUMS & SOLVENCY OVERVIEW

Strong start into the business year 2024

Gross written premiums (IFRS 17)

Solvency ratio

Dividend per share

€ 4,296.9mn

262 %

▪

Double-digit premium growth of 11%

▪

Q1 2024 including transitionals

▪

3M 2023: € 3,871.3mn (IFRS 4)

▪

Own funds: € 10,287mn

▪

SCR: € 3,921mn

▪

12M 2023: 269% (incl. transitionals)

    • 1.40
  • Dividend proposal of € 1.40 per share was approved by the Annual General Meeting
  • Based on current dividend policy, € 1.40 is the minimum dividend per share for the business year 2024
  • Dividend payment day: 29 May 2024

7

3M 2024 UPDATE

VIG

VIENNA INSURANCE GROUP

STRONG TOP-LINE DEVELOPMENT IN THE FIRST QUARTER

Gross written premiums (€ mn)

Austria

Czech Republic

Poland

Extended CEE

Special Markets

1,400.2

+7.8%

1,510.0

624.0

-0.6%

620.5

385.8

+7.8%

416.1

1,038.2

+10.0%

281.6

1,142.0

+23.9%

3M 2023

348.9

3M 2024

  • Overall, strong premium growth resulting in total GWP of € 4,296.9mn
  • Premium growth in Austria primarily due to the index adjustments in non-life insurance and growth of the new business in health
  • In Czech Republic premium decline impacted by FX effects; adjusted for currency, premiums rose by 4%, due to growth in casco and other property business
  • Sound premium growth in Poland is mainly attributable to health and other property business
  • Premium growth in Extended CEE primarily driven by growth across of all lines of business in Hungary; from Romania in life and non-life business; as well as from non-life business in Slovakia and the Baltics
  • Strong premium growth rate in Special Markets almost exclusively driven by motor business and other property business in Türkiye

3M 2023 according to IFRS 4

Group Functions € 1,111mn (3M 2023: € 736mn); Consolidation -€ 852mn (3M 2023: -€ 594mn)

8

3M 2024 UPDATE

VIG

VIENNA INSURANCE GROUP

SOLVENCY RATIO DEVELOPMENT

Solvency position (including transitionals) of VIG Group

300%

250%

200%

150%

100%

50%

0%

280%

282%

269%

262%

31/12/2022

30/06/2023

31/12/2023

31/03/2024

Solvency ratio

9

3M 2024 UPDATE

VIG

VIENNA INSURANCE GROUP

YE 2023: SOLVENCY RATIO OF VIG GROUP DECREASED TO 269%

Solvency position YE 2023 compared to YE 2022

12,000

280%

269%

YE 2022

10,000

YE 2023

8,000

6,000

10,841

10,345

VIG AG (€ mn)

31/12/2022

31/12/2023

Basic solvency capital requirement

4,544

4,417

Market risk

2,711

2,715

Counterparty default risk

376

327

Life underwriting risk

2,156

1,969

Health underwriting risk

600

659

Non-life underwriting risk

1,004

986

Diversification

-2,302

-2,239

Operational risk

380

398

Loss-absorbing capacity of technical provisions

-939

-907

4,000

2,000

3,873

3,847

0

31/12/202231/12/2023

Solvency II Own Funds (€ mn) SCR (€ mn)

Loss-absorbing capacity of deferred taxes

-401

-378

Capital requirement for other financial sectors

66

98

Capital requirement for non-controlled participations

15

15

Capital requirement for residual undertakings

207

203

Eligible own funds

10,841

10,345

Solvency capital requirement

3,873

3,847

Solvency ratio

280%

269%

10

3M 2024 UPDATE

VIG

VIENNA INSURANCE GROUP

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Vienna Insurance Group AG published this content on 29 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 May 2024 06:25:06 UTC.