Vienna Insurance Grp Ord

Thank you very much. Warm welcome and best regards from Ringturm from Vienna. We have been glad to present today the 2025 preliminary results of Vienna Insurance Group and I will do this together with our CFO Liane Hirner and also for the Q&A on our side is our Deputy CEO Peter Höfinger. So from my side I would start with maybe also the key proposition we have and our positioning, which is quite strong, as you know. And I think on the slide number two, give just a flavor about the main topics we have on our side. So market leader in Central Eastern Europe, still with growth prospects. As you know, we have high diversification in sales and all over the regions of Central Eastern Europe. we are quite strong also for the next years in targeting the growth. We have clear decentralized business models, so our understanding is being a group. The picture to that we need is the fleet with strong ships, with also responsible captains on the boats, and they are the backbone and the basis for our strong development in the current situation, but also, as we will see, in the strategic planning for the next years, also for the future. Financial strength, it will be touched deeply by Liane Hirner, so we have a stable and strong basis, not only in solvents ratios, but also on the current basis all over. And we are also focusing in a responsible way to the future, which means that we are also very active in the programming about sustainability. Let's go on with the highlights we can present for the year 2025, which really was an exceptional year in the results we will present today. So very strong top line and also earnings growth overall. which is, I would say, high above peers, and this also remarks that we are on the strong way in the focus of our business, especially in our core markets in Central Eastern Europe. The profit before taxes first time reached the billion mark, and out of that it's also, I would say, an important year which we could fulfill in our targets 25th. As you know, we already presented in the Q3 session that we were successful in the public purchase offer for Nürnberger. So out of that, we already secured 99.2% of Nürnberger share capital. And out of that, we are now in the phase that we I expect the closing, which will take on maybe some months, but to the beginning of the second half of 26, we think it will be solved out of that. The new group strategy, Wolf 28, of course to mention today, but I also remark that we did a broad presentation during the Q3 session, but we will come back today about the targets which are following this program in the midterm, also perspective and outlook till 28. Standard & Poor's also gave a highlight in 25, so our rating with A plus was raised in the outlook from stable to positive, so also a strong signal from Standard & Poor's confirming our financial strength and also our potential of growth for the future. And I think the most important, also the share price performance was top performing the Austrian ATX. We had an increase of 121.4% with a closing price of 67.6%. 20 euro at year end, 25, and this is all-time high in this way till now. So, out of that, we will go on in the fulfillment of our outlooks. On the next slide, number five, you see the key figures of the full year. The main KPIs I will touch, and Liane Hirner will go deeper then. So gross written premium, we reached 16.3 billion euro. That's an increase by 7.1% up on the year 24. The insurance service revenue from IFRS basis increased by 8.7%, up to 13.2 billion. which is for us, yes, the highlight is the increase more than 30% of the profit before taxes up to 1.16 billion. As I said, it's, yes, I would say a new mark also on the way of our success. The KPIs on the quality of business P&C, net combined ratio, we have an improvement by 3.3 percentage points down to 90.1%. Also, this will be deepened by Eliane over the regions. The solvency ratio on a higher level now up to 296%. This is also our strong basis for investments, not only in the payment for Nürnberger, what is expected, as I said, but also for the acquisition possibilities in Central Eastern Europe for new growth, also in strengthening our position. Operating return on equity, 18.7%, also a very strong remark with an upgrade from 2.5%. five percentage points to last year. The strength of our group already mentioned diversification. You see on slide number six that it is not only a good balanced situation in between the markets. The gross written premiums, as you can see, Austria still on a high level with 30%, but already extended CEE with 31% now in the lead. We see that also beside Czech and Poland, also special markets with 10%. We will see later on that Nuremberg will go up in this way if it works as it is expected. Insurance service revenue nearly on the same base. And you see on the right side the results before taxes also well balanced. Here Austria is still in lead, followed by Czech. but we see a strong improvement also in extended CE and Poland, and also Liane will give you details about that. Out of these very positive results and KPIs, we also, as the management board, will give the proposal for the dividend payments, and the proposal to the general meeting will be 1.73 euro per share, which is important because, as you know, our dividend policy is formed in the way that this dividend yearly gives automatically the base also for the next year. So we increase up from 1.55 to 1.73 by about 12%, which gives a new earning per share of 6.46 euro. And out of that, we are a reliant and continuous dividend payer as we started in 1994 on the stock exchange Vienna. So this is our policy where we, with also our shareholders, agree on a stable long-term development. Now I will hand over to Liane. And please go forward, Liane, to deepen. in detail about the KPIs.

Thank you, Hartwig. Now, I'm very pleased to present our strong preliminary full-year results, 25, in more detail to you. Let's start on page 9, where you can see the breakdown of gross written premiums per segment. Overall premiums increased by more than $1 billion, with all market segments contributing to the growth. Markets in the extended CE added an additional 409 million in premiums, with more than 50% of this growth coming from our countries Romania, Slovakia, and the Baltics. Austria and the Czech Republic are the second and third largest contributing segments, with additional premiums of 209 million and 194 million, respectively. In terms of premiums, we recorded growth also in each line of business, with double-digit percentage increases in the life business without profit participation, the unit and index-linked life, as well as the health business. With this, I move to our IFRS 79 reporting tables. On slide 10, we show the group income statement. I will go into the details of the relevant positions in the following pages. Here I would just like to explicitly mention the adjustments totaling 96.3 million, preliminary arising from the entire goodwill impairment of 72.6 million in Hungary. This compares to 116 million goodwill impairment taken for Hungary already in 2024. In 2025, there were also smaller impairments of customer portfolios in Poland and of software in special markets. Regarding the tax ratio of 26.1% in 2025, one quick comment here. We expect this to decrease further and consider a tax ratio of around 25% to be a fair estimate for 2026. Of course, currently without the standard position of Nuremberger. With this, let's move to the next slide, page 11, and the insurance service revenue. Here, overall insurance service revenue increased by 8.7% to 13.2 billion euros. Given the different growth patterns, it's visible that diversification over markets, lines of business, and sales channels again pays off. Standard CE was the biggest contributor of this growth, generating an additional 308.5 million, almost two-thirds of which came from our countries Romania, Slovakia and the Baltics. The strong performance of the special market segment up by 26.6% was driven by Turquia and increased volumes there in the motor business and the life insurance business. These lines of business are also the basis for the solid growth in both Austria and the Czech Republic, each adding more than 200 million in insurance service revenue. Worth mentioning are also the double-digit percentage growth rates in health, not only in Austria and the Czech Republic, but also in extended CE. Now let's move on to slide 12. Here you can see the insurance service revenue development by lines of business. Health is up by 15.5% and for the first time exceeds the 1 billion, followed by a combined growth of 12.5% across all three lifelines of business. In absolute terms, the other property business recorded the strongest growth with an additional 291 million of insurance service revenue, followed by the motor third-party liability insurance with an additional 242 million. Moving to the profit development on slide 13, the bottom line growth was even stronger than the top line increases, so we have profitable growth. Result before taxes is up by 31.7% or roughly €380 million. Yes, this substantial improvement is supported by a more favorable claims experience with significantly lower weather-related claims compared to the previous year. However, it also demonstrates the positive impact of economies of scale and sound insurance technical results, particularly in many extended CEX. Following Austria, which contributed 98 million to the profit increase based on an improved combined ratio, the extended CE segment added 77 million. I would like also to highlight Poland. Thanks to our group companies' concentrated market presence, they have lived up to the ambition of accelerated growth in both life and non-life business. Despite the impairment of customer portfolios mentioned before, profit before taxes increased by 62.4% to 106 million euros, a plus of 40.6 million euros. Also, we are not currently among the top players, top three players in Poland as a group. This demonstrates our strength and profitable setup in this country. Details of the net combined ratio improvements for the group and the market segments are shown on slide 14. VIG's net combined ratio of 90.1% is based on a clearly improvement claims ratio of below 59.7% and also a slightly better cost ratio of 30.4%. The discounting impact of the claims ratio was 4.2% in 2025 after 3.4% in 2024. Czech Republic and the special markets recorded the most substantial combined ratio improvements. Apart from the positive weather-related claims effect, the drivers in Czech Republic were a favorable motor development and an increased profitability in the household insurance. Whereas the better net combined ratio in the special markets is based on positive motor developments in Czechia. Now let's have a look at the profitability KPIs on the live site. On slide 15, the CSM roll forward of the life and health business is presented, and I'm pleased about the ongoing strong CSM new business margin of 9.8%, only slightly below the 10% which we recorded last year. The increase of 12.9% in the CSM roll forward was mainly driven by the changes in VFA, reflecting the positive impact of the rise in long-term interest rate curves. New business of 528 million in relation to a CSM release of 568 million led to a sustainability ratio of 92.9%, which is again only slightly below the exceptional ratio of 93.6% in 2024 and supported by the new business volume from Türkiye. Table from the total capital investment result is shown on slide 16. Here, higher interest income and volume from the bond portfolio has driven the increase of 12.3% to 489.3 million. The increased volume of the bond portfolio is also reflected in the investment splits, which is shown on the next slide 17. Compared to 36.5 billion in 2024, capital investments held at own risk increased by 4.3 to 38 billion euros. The proportion of the bond portfolio increased from 73.8% to 74.6%, reflecting additional bond investments totaling around euro 1.5 billion. Regarding the rating, split upgrades from BBB plus to A minus increased the proportion of A investments, while downgrades of France and the European Financial Stability Facility affected the proportion of AA investments. Further information on the bond portfolio and the rating breakdown of various bond issuers are shown on the next slide 18. DIG's well-known conservative approach is also reflected in the rating distribution of the bond portfolio shown on the left-hand side. Compared to last year, the ratings of governments covered and financial bonds improved. The country split on the right reflects VIG's focus on diversification. Poland and the Czech Republic are represented with a share of 13.9 percent and 13.4 percent respectively, followed by Austria with 10.6 percent and a share of 8.6 percent of supranationals, very similar to what we have presented to you already last year. Now let's have a look at the solvency ratio for 2025 on slide 19. Our solvency ratio, including transitional measures, after 261% in 2024, was 296% at year-end 2025. This reflects substantially increased own funds of around 12 billion, mainly based on the profitable business performance and positive capital markets developments, in relation to an only slightly higher STR of around 4.1 billion euros. The solvent evasion excluding transitionals shows an equal robust trend rising from 238% in 2024 to 276% by the end of 2025. Please here bear in mind that the purchase price becomes due upon the completion of the planned acquisition of Nürnberger Group. However, VRG will remain a solidly capitalized group ready to take advantage of any opportunities offered by our region and well-prepared to handle the ongoing geopolitical challenges. Being active in the CE region, which we know extremely well and where we can rely on the expertise of our local management teams, is a huge advantage in this respect. With this, I will now hand over to Hartwig for his closing remarks and the outlook.

Okay, thank you, Liane. And before I go on with the outlook 26 and also the midterm outlook in the targets of program Evolve 28, I just want to focus on slide 21 about the favorable situation we have with our core market Central Eastern Europe. As you can see on this slide, the mid-term also growth forecasts in the region where we see clearly nearly doubled or even more in the area of the European Union CE markets and also on the Western Balkans, which we also worked out here. You see that starting with 26, it's on the European Union level 1.4. and GDP growth we have in the countries on the European Union level CE 2.6 and even 3.1 which is still going up on the way to 3.5 and 3.7 and even also the EU markets from Central Eastern Europe up from 2.6 to 2.7. So this is really a the right positioning we have in our group and out of that we also can expect that this will also support our growth perspectives and the targets we still are in mind are important for development for our group. On the next slide, the outlook 26 in detail, so the guidance I think shortly just mentioned as Liane already did on the capital basis. We are strongly capitalized in the way of solvency as we have seen even with the upcoming investment to Nuremberg. We are ready to invest also in the growth parts of Central Eastern Europe. The strong broad diversification already mentioned by myself and by Liane which also gives the resilience beside the, of course, influence of geopolitical and macroeconomic conditions. But we, over the last years, were ready also to fulfill our targets beside that. And so the impact out of what is going on also now in the area of the Arabic countries We expect not directly but indirect consequences, but we are on strong base. And out of that, as you can read and see on this slide, the management board is also clear in the targeting for this year. So we achieve the profit before taxes in the targeting with a range of 1.25 to 1.25%. 3 billion for the financial year 26, excluding Nürnberger, when what I mentioned already in the starting part that the closing is expected till mid of the year. And out of that, we will come back to you in the time when it is possible after closing also to include the targeting for Nürnberger. But beside that, with the exceptional result of 25, which was already mentioned, with all-time high of 1.16 billion, we are still ambitious in the outlook and targeting for 26. And on the next slide, as I said, we touched the strategic program for the next three years, the midterm program, and out of that, We have clear, detailed financial targets for 28. We already mentioned them and presented during the Q3 session. But just to repeat and to remind you on that, so gross written premiums up to more than 20 billion. Profit before taxes in an ambition development up to 1.5 billion in 28 combined ratio. Even this year we have exceptional results on that. Also regarding to the lucky situation in combination to the weather related claims, but we are targeting ambitiously to 91% in 28 and operating ROE more than 17% and all together keeping the range of 150 to 200 in mind and as we mentioned we have the power out of our capitalization not only to directly finance the plans taking over of Nuremberg but we are ready also to invest further on but still being and keeping a stable position for VIG. the part of presentation and now we are happy to get your questions and we'll answer immediately. Thank you very much.