Vienna Insurance Grp Ord

Good afternoon to our half-year presentation, and thank you for joining us. We are happy to present you today strong half-year results. We have achieved across written premiums of 8.569 million Euro premiums, which is a growth of 8.7%. Insurance service revenues of 6,396,000,000. which is an increase of 8.1%, and profit per tax of 531 million, which is 10.5% growth. Our net combined ratio of 91.9% and earnings per share up 10% to 5.92 euros, which results in an operating return on equity of 18.9%. On the next slide, I'm happy to guide you through our main events which we had in the first half year. Besides having the strong performance, we also had a goodwill impairment in Hungary in the amount of 72.8 million. We had an improvement of our combined ratio, which was also supported on one hand side by a lower frequency and lower impact of weather-related claims and also a better cost ratio. Weather-related claims in the first six months were 73 million Euro in comparison to last year of 113 million. We have announced on the 8th of August that we entered an exclusive due diligence with Nuremberger in Germany and we also have won an official tender Monday this week for MoldoSig in Moldova. All this gives us confidence that we will keep our guidance and we are convinced that we will come out to the upper end of our target range of €950 billion to €1 billion for the year end. With this, I'm handing over for the details to Liane. Please, Liane.

Thank you, Peter. Now let's start on slide six. It's the group income statement. Apart from the already mentioned increased insurance service revenue, I would want to highlight the improved total capital investment results, up by 32.5%, profiting from higher interest rates. With regard to the goodwill impairment taken in Hungary, which Peter already mentioned, please note that the profit before taxes in Hungary adjusted for this goodwill impairment would have amounted to $16.8 million. We recorded an increase of 2.8% in the insurance service revenue to 324.5 million and the net combined ratio improved to 94.8%. Given the market environment, we are satisfied with the developments in Hungary. However, the additional premium tax got prolonged until 2026 and further governmental initiatives in Hungary cannot be excluded. This is why VIG, and this is fully in line with our conservative approach, decided to go for this complete goodwill impairment and wrote down the remaining €72.8 million of goodwill in Hungary. Despite this measure, we were able to achieve group profit before taxes of €531.4 million, and the net profit after taxes and non-controlling interests in the amount of $386.7 million, both up by 10% approximately. On the next slide, we show the details for the insurance service revenue of $6.4 billion, being up by 8.1%. I would like to point out that our biggest segment in this half year was $1.9 billion in revenues, and an increase of 8.6% is extended CEG. Compared to the first six months of last year, extended CE contributed 148.8 million more in revenue. It's worth mentioning here that several CE markets achieved double-digit growth ratios. For example, Slovakia plus 12% and the Baltics plus 11.4%, accounting for about half of the additional revenue. You can find the full overview of the individual market developments on slide 26 in the appendix. We are pleased about the continuously sound insurance service revenue growth of 4.7% in Austria, 6.7% in Czech Republic, and 8.9% in Poland. However, outperforming all other segments in terms of revenue growth is special markets, up 29.7%. driven by the ongoing dynamic business development in Turkey. Let's now take a look at the breakdown of insurance service revenue by line of business. As you can see on slide 8, MTPL with plus 11.2%, health with plus 15.1%, as well as unit and index-linked life and life without profit participation with each roughly plus 11%, present robust double-digit growth. From an already high revenue level of more than 3 billion, other property grew by 3.9%, contributing roughly 120 million of additional revenue. Overall, this slide illustrates the diverse growth profile of our group. Currently, only life insurance business with profit participation remains stable, but on a favorable level. On the next slide, we present the development of the result before taxes in more detail. Strongest growth contributor with plus 21.2 million is Poland, followed by the Czech Republic with plus 17.9 million. Both markets supported by significant improvement of the combined ratio. To be fair, if we adjust for the goodwill impairment already mentioned in Hungary, the segment extended CE would have been our top performer. Nevertheless, despite this goodwill impairment, we achieved double-digit profit growth of 10.5%, which demonstrates the strength of our business model. Now over the page, the combined ratio details and the split between claims and cost ratios are shown. The net combined ratio of the group improved to 91.9%, including a discounting impact that increased from 3.1% to 4.4% on the claims ratio. As mentioned already by Peter Höfinger, significant lower costs arising from weather-related claims and natural catastrophes in the first six months of this year compared to the same period of last year were supporting this overall positive development. The substantial improvements by more than 4 percentage points both in the Czech Republic and in Poland were additionally driven by positive developments in motor. Moreover, Polish household insurance profited from higher average premiums. The deterioration of the combined ratio by 5 percentage points in the special market is due to two factors. Firstly, a one-off effect in the previous year And secondly, a negative development in motor and other property ends in Turkey this year. Now let's move on to slide 11 in the contract and service margin in life and health business. On the left, the life and health CSM roll forward shows an 8.9% increase for the period to a net CSM of 6 billion, supported primarily by the rise in long-term interest rate curves. Although the CSM release of 283 million could not be fully offset by the new business of 228 million, the sustainability ratio improved to 80% after 77% in six months, 24. The new business CSM in life and health was strong at 228 million with a still favorable new business margin of 8.9% for the first half of 2025, but slightly down, so slightly down from 10% at year end. Now over the page, we present the detail of the total capital investment result of 295.6 million, up by 32.5%, driven by an increased interest rate revenue, plus 51.2 million, mainly due to a higher volume of income investments, and also higher interest rates in Turkey. Thus, the investments held at our own risk shown on slide 13 further increased to 37.5 billion, up by 1 billion compared to the year end. The split between the different asset classes is hardly changed, with the vast majority of 74% invested in bonds. The total capital investment portfolio as of June 25 amounted to 45.6 billion euros. As there are only minor shifts in the bond rating split due to portfolio quality improvement, I would move on to slide 14 and the solvency ratio and the details of their own funds development, which is shown on slide 15. Solvency ratio, including transitionals as of June 25, increased to 278% after 261% at year end and 271% at quarter 1, 25. While the SCR of $4 billion only slightly increased by 1.5% due to higher capital requirements for health and non-life insurance, Their own funds of $11 billion increased by more than 8%, impacted by the positive interest rate development and the capital measures taken. The details of their own funds are presented on the next slide, 15. The solvency ratio excluding transitional measures of 238% underpins the strong capitalization of VIG and allows us to successfully further develop our business models and to look at business opportunities in our markets. It's great to see that the positive business developments within our group are reflected in the increase in VIG's share price over the past six months. With a share price of 43.7 euros as of June 25 and a plus of 44%, VIG shares have outperformed both the Austrian Traded Index and the Stocks Europe 600 Insurance Index. Looking at our book value per share of 47.26 euros at half year, 25, there is still some room for improvement. With that, I have come to the end of my presentation and now we are happy to answer the questions you might have.

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