VIENNA INSURANCE GROUP

Investor Presentation

July 2024

WE ARE A WELL DIVERSIFIED AND SOLIDLY CAPITALISED INSURANCE GROUP WITH CONTINUOUS DIVIDEND PAYOUTS SINCE 1994

Represented in

30

markets

Around

29,400

employees serve ~32mn customers

Solvency Ratio

269%

as of 31 December 2023

2 STRATEGY

More than

50

insurance companies and pension funds

S&P Rating

A+

with stable outlook

Dividend per share for 2023:

€1.40

Continuous dividend payout since 1994

Insurance service revenue of € 10.9bn

Life1MTPL

14.1%17.4%

Health

6.8%

Motor own

14.7% damage (casco)

47.0%

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%)

VIG VIENNA INSURANCE GROUP

VIG - LEADING INSURANCE GROUP IN CEE

VIG as early mover with excellent market shares

NO

Top 3

Austria

Albania Baltic states Bulgaria Czech Republic Hungary

Country

Market positions

Non-life

Life

Total

Austria

1

1

1

Czech Republic

1

1

1

Poland

4

4

4

Slovakia

2

1

1

Romania

2

2

1

Hungary

1

1

1

Bulgaria

3

2

3

Ukraine

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

North Macedonia

Romania

  1. Slovakia

2Ukraine

LV

>Top 3

1

LT

Bosnia & Herzegovina 5

1

Croatia 4

Kosovo 7

BY

Moldova 5

Montenegro 6

PL

Poland 4

Serbia 4

Slovenia 10

UA

SK

2

1

MD

Special

HU

1

Markets

RO

1

VIG operating in:

20

+

10

Core Markets

Special Markets

Source: local authorities; FY 2023 data (Q3 2023: Bulgaria, Serbia, Ukraine)

IT

HR

BA

RS

BG

MNE KOS

3

AL

MK

GE

2

1

TR

3 STRATEGY

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

STRATEGY

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 still growing next year 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

5

STRATEGY

VIG

VIENNA INSURANCE GROUP

OUR SUCCESS IS FOUNDED ON A DIVERSIFIED AND RESILIENT BUSINESS MODEL BASED ON PROVEN MANAGEMENT PRINCIPLES

Local entrepreneurship

  • Knowledge of local needs and markets
  • Decentralised structures & efficient decision-making procedures
  • VIG Holding responsible for steering the Group

Multi-brand policy

  • 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%

  • Various distribution channels

(incl. partnership with Erste

35%

Group)

▪

Strongly customer-oriented

49%

8%

distribution

Employed sales forces & tied agents

Brokers & agents

Banks

Other (incl. online sales)

6 STRATEGY

Conservative investment and reinsurance policies

▪

Focus on secure and

sustainable investments

€ 35.3bn

▪

Spreading risk by means of

diversification

2023

Investments held at VIG's own risk

VIG VIENNA INSURANCE GROUP

VIG 25 STRATEGIC PROGRAMME SECURES FURTHER DYNAMIC DEVELOPMENT

Initiatives and projects to optimise, enhance and expand VIG's business model

STRATEGIC TRENDS

DEVELOPMENTS

OBJECTIVES

VIG 25 STRATEGIC

DIRECTIONS & INITIATIVES

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

Enhance customer 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

7 STRATEGY

VIG

VIENNA INSURANCE GROUP

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

  • Promote risk literacy
  • Grow corporate volunteering

▪ Focus on customer satisfaction

▪ Close the protection gap

  • Attractive employer with equal opportunities for all
  • Employee focus

Social focus Environmental focus

Objectives

▪ Reduce emissions of investment portfolio to net zero by 2050

▪ Reduce emissions of corporate and

SUSTAINABILITY

retail underwriting portfolios to net

ALONG OUR

zero by 2050

BUSINESS MODEL

▪

Increase the share of sustainable

products

▪ Climate neutral operation of our offices by 2030, net zero by 2050

8

STRATEGY

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

9

STRATEGY

VIG

VIENNA INSURANCE GROUP

3M 2024: 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

10

3M 2024 UPDATE

VIG

VIENNA INSURANCE GROUP

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Disclaimer

Vienna Insurance Group AG published this content on 16 July 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 July 2024 14:35:07 UTC.