Transcript Vienna Insurance Group Vienna Insurance Group

5th Vienna Economic Forum: November 10th, 2008
Vienna Insurance Group
Financing of Investments
Franz Kosyna,
Member of the Executive Board of Vienna Insurance Group
Vienna Insurance Group
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Vienna Insurance Group
Operating in 23 countries
of Central and Eastern Europe
Largest Insurance Group in Centraland Eastern Europe*
No other Insurance Group has
a higher CEE-share of premiums
Around 23,000 employees
* VIG-definition CEE: CZ, SK, PL, RO, BG, HR, HU
Think globally – act locally
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Since more than 180 years successful in Austria –
More than 15 years of success
in CEE
Continuous expansion by organic growth
and through acquisitions
Local management
Exchange of know-how within the Group
Multi-brand policy
Multi-channel distribution
Vienna Insurance Group reinvests
profits earned in a CEE country within
that country
Investments
VIG Investment Strategy
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VIG follows a long-term and selective strategy
 Stakes in insurance companies (national and
Long term –
engagements
international) to expand business
 Stakes in non-insurance companies to support
insurance business development (e.g. private hospitals,
laboratories, hotels)
Selective
engagements
 Selective market entrance in CEE regions and
expansion in already entered markets through
acquisitions and organic growth
CEE Region Offers Multiple Growth
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BIP
GDP
Wachstum
Growth
2007 – 2009F
Versicherungsd
Insurance
urchdringung
Penetration
20071
CEE2
5,0%
3,3%
Österreich
2,3%
5,8%
EU 15
1,8%
9,2%
Insurance Density (USD)
6.000
Great Britan
Switzerland
Netherlands
Belgium
4.000
Austria
Denmark
France
Ukraine
Romania
Bulgaria
2.000
Serbia
Poland
Sweden
Slowakia
Italy
Germany
Croatia
Hungary
Czech Republic
Slowenia
Spain
population: 10mn
0
0
10.000
20.000
30.000
40.000
GDP per Capita (USD)
1
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Premiums in % of GDP.
Weighted average for CEE. CEE is defined as Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia and Ukraine.
50.000
Stepwise expansion
to the family of
Vienna Insurance Group
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Vienna Insurance Group – Number 1 in CEE
Vienna Insurance
Group
Top market
positions in the countries
Poland: 4. position
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Czech Rep.:
2. Position
Austria:
1. position
Ukraine: 2. position
MTPL
Slovakia: 2. position
motor vehicle ins.:
1. position
Bulgaria: 1. position
Romania:
1. position
Croatia: 4. position
2. position Life
Serbia: 4. position
1. position Life
Core markets
Georgia: 1. position
Albania: 2. position
Investment example
Transaction Erste Bank
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Acquisition of the Erste Group insurance companies
 Enormous customer potential
 Expansion of market position in Central and Eastern Europe
 General Distribution Agreement between Erste Group and the Vienna
Insurance Group
Financing
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Successful Capital Increase 2008:
largest ever share offering by an insurance Group
on the Vienna Stock Exchange.
 Placement of 23 million shares
 Volume of the capital increase:
approx. EUR 1.14 billion
Issue of a hybrid bonds with an volume
of EUR 250 million
 to strengthen equity capital
 to finance acquisitions in Central and Eastern Europe
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Thank you for your attention!