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PRESS CONFERENCE Vienna Insurance Group Preliminary results for 2017 and current developments (based on preliminary and unaudited data) Vienna, 22 March 2018 PRELIMINARY RESULTS FOR 2017 1 TARGETS FOR 2018 AND OUTLOOK 2 FOR 2020 CURRENT


  1. PRESS CONFERENCE Vienna Insurance Group Preliminary results for 2017 and current developments (based on preliminary and unaudited data) Vienna, 22 March 2018

  2. PRELIMINARY RESULTS FOR 2017 1 TARGETS FOR 2018 AND OUTLOOK 2 FOR 2020 CURRENT DEVELOPMENTS IN 3 MANAGEMENT AGENDA 2020 2 VIG VIENNA INSURANCE GROUP

  3. PRELIMINARY RESULTS FOR 2017

  4. KEY FIGURES FOR 2017 Preliminary results 2016 2017 Premium volume Profit before taxes Combined ratio Dividend ~EUR 9.4b ~ EUR 443m 96.7% EUR 0.90 +3.7% +8.8% +12.5% -0.6 97.3 0.9 9 386 443 96.7 9 051 407 0.8 4 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  5. LONG-TERM INVESTMENT IN DYNAMIC MARKETS Take advantage of the positive effects of a long-term business strategy Growth in economic output since VIG market entry 350 BIP (KKS), subspricted (year of VIG market entry = 100) Slovakia 300 Romania 250 Poland Hungary Czech Republic 200 Bulgaria Croatia 150 100 1990 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 50 Tschechien Slowakei Ungarn Polen Rumänien Bulgarien Kroatien Czech Rep. Slovakia Hungary Poland Romania Bulgaria Croatia Source: EU Commission (Eurostat/Ameco), March 2018 5 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  6. LONG-TERM TREND: FASTER GROWTH IN THE CEE REGION Economic growth in the CEE region was, is and will remain higher than in the EU-15. Annual economic growth in the CEE region and EU-15 10% Forecast real, in % p.a. 8% 6% 4% 2% 0% 1998 99 2000 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 -2% -4% -6% CEE CEE EU-15 EU-15 Source: IMF World Economic Outlook database, October 2017 6 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  7. PREMIUMS AND PROFIT SHARE Around 55% of VIG's premiums are generated in Central and Eastern Europe Around 57% of VIG's profits are generated in Central and Eastern Europe Non-CEE ~ 45% Non-CEE ~ 43% CEE ~ 55% CEE ~ 57% Non-CEE: Austria, Germany, Liechtenstein 7 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  8. VIG VALUES Responsibility Customer Diversity proximity 8 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  9. PREMIUMS Premiums written by line of business, IFRS, in EUR millions 2016 2016 Significant increase in premiums in all lines of business, except the single-premium business 2017 2017 +6% 3,973 3,752 +2% 2,549 2,493 +6% -12% +12% 1,375 1,300 1,255 1,106 1,076 +9% 959 564 516 Kfz-Haftpflichtvers. Motor own damage Kfz- Other property and Sonstige Lebensvers. Laufend Reg. prem. life Lebensvers. Einmalerlag Single prem. life Kranken* Health* Motor third party Kaskovers. Sachversicherung casualty insurance insurance liability * not including health insurance similar to life insurance 9 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  10. PREMIUMS Premiums written by line of business, IFRS, in EUR millions, total VIG: 9,386.06 2016 +9.4% 2017 5,091 4,655 -2.4% 3,941 3,849 +4.8% +8.2% 1,5291,603 +10.6% +6.2% +10.0% +9.8% 887 810 819 732 352 331 247 224 150 137 Austria Österreich CEE* CEE* Czech Republic Tschechische Slowakei Slovakia Hungary Ungarn Bulgarien Bulgaria Poland Polen Sonstige CEE Remaining Republik CEE * CEE: excluding Austria, Germany, Liechtenstein 10 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  11. PREMIUM SHARE BY LINE OF BUSINESS IN 2017 Figures for 2016 in brackets Werte für 2016 in Klammer 11.7% 5.9% Health (5.5%) Other property and casualty (27.6%) 12.0% 28.1% Regular premium life (27.7%) Motor third party liability (14.5%) 14.9% Single premium life (14.0%) Motor own damage (10.7%) 27.4% Excl. Central Functions 11 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  12. PROFIT BEFORE TAXES IN 2017 in EUR millions 2016 2017 +8.8% 443 407 Increase of ~EUR 36 million 12 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  13. COMBINED RATIO Property and casualty, IFRS, net in % +0.6%p 97.3 96.7 12/16 12/17 13 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  14. KEY FIGURES FOR 2017 2016 2017 Financial result Investments Wertpapiere/Darlehen Securities/loans Real estate Immobilien Geldmarkt/Cash Money market/cash EUR 924.3m EUR 37.4b Equities Aktien Participations Beteiligungen Alternative Investments Alternative investments -3.6% +3.3% 0.0% 958.8 37,431 6.1% 924.3 36,236 4.8% 1.3% 15.4% 72.4% 14 VIG PRELIMINARY RESULTS FOR 2107 VIENNA INSURANCE GROUP

  15. EMBEDDED VALUE FOR 2017 Analysis of changes Embedded value for life insurance and health insurance business in EUR millions +12.5% 9.9 4,504.6 350.1 43.3 55.9 153.0 4,004.3 2016 angepasst 2016 adjusted Neugeschäftswert Value of new business Roll Forward Change in Annahmen- Abweichungen Ökonomische Economic 2017 2017 Roll forward Variances in änderungen assumptions im Geschäftsjahr financial year Veränderungen changes and other non- und Sonstige and other und Sonstige operational operational operative nicht-operative Abweichungen Abweichungen variances variances 15 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  16. EMBEDDED VALUE FOR 2017 New business margin in % 7.5 Austria/Germany CEE 6.1 Total 4.8 3.8 2.4 2.0 2016 2017 16 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  17. PROPOSED DIVIDEND FOR 2017 Dividend increase to EUR 0.90 (+12.5%) Dividend payout ratio 38.7% Dividend yield 3.49% Dividend policy: Minimum distribution of 30% of net Group profit after minority interests remains unchanged since 2005 17 VIG PRELIMINARY RESULTS FOR 2017 VIENNA INSURANCE GROUP

  18. TARGETS FOR 2018 AND OUTLOOK FOR 2020

  19. CEE ECONOMY REMAINS DYNAMIC Average economic growth rate is significantly higher in the CEE region than Austria and the EU-15. Real GDP growth 2017-2020 in % p.a. 3.8 3.7 3.7 3.5 3.4 3.4 3.1 3 2.9 2.9 2.9 2.5 2.4 1.7 1.6 Source: IMF World Economic Outlook database, October 2017; Note: Individual countries based on national currencies; CEE region and EU-15 based on IMF exchange rate nom. GDP/nom. GDP USD 19 VIG TARGETS FOR 2018 AND OUTLOOK FOR 2020 VIENNA INSURANCE GROUP

  20. TARGETS FOR 2018 AND OUTLOOK FOR 2020 > 10.0b Figures in EUR ~ 9.5b 9.4b > 500m Premium volume 450-470m 9.1b. 443m 407m Profit before taxes 97.3% 96.7% Combined ratio ~ 95.0% 2016 2017 2020 forecast 2018 20 VIG TARGETS FOR 2018 AND OUTLOOK FOR 2020 VIENNA INSURANCE GROUP

  21. VIG MARKET SHARE IN THE CEE REGION IN 2016* VIG 18.0% VIG Mitbewerb IT 11.4% IT competition AT competition Mitbewerb AT 10.0% PL competition Mitbewerb PL 9.4% D competition Mitbewerb D 8.3% * CEE market share calculations for VIG and competitors: CEE includes all VIG markets except Germany/Liechtenstein/Italy/Slovenia/Turkey and Georgia, data from local insurance supervisory authorities 21 VIG TARGETS FOR 2018 AND OUTLOOK FOR 2020 VIENNA INSURANCE GROUP

  22. CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020

  23. CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020 Business model Ensuring future Organisation and optimisation viability cooperation 23 VIG CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020 VIENNA INSURANCE GROUP

  24. BUSINESS MODEL OPTIMISATION Around EUR 10m  Motor insurance profit optimisation per year in potential savings for foreign motor insurance claims  Anti-fraud A closed file review was A closed file review was already performed in already performed in 4 companies 4 companies  Claims management optimisation in Poland and Lithuania in in Poland and Lithuania in 2017 2017 M&A highlights  Shared services & mergers 45 M&A projects implemented 10 acquisitions in the last 3 years 24 VIG CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020 VIENNA INSURANCE GROUP

  25. ENSURING FUTURE VIABILITY VIG handled more than VIG handled more than 200,000 200.000 assistance assistance cases  Assistance cases for its customers in 2017 for its customers in 2017  Insurance of the future Promoting bank distribution with  Digitisation Erste Group  Expanding lines of business + 32% premium growth in health insurance in 5 key countries 25 VIG CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020 VIENNA INSURANCE GROUP

  26. INSURANCE OF THE FUTURE / DIGITISATION Around 50% of our customers will be from Generation Y in 2024 Group of potential Age group customers Needs 100% 4% Advisory services and personal Babyboomer 30% 1945-1960 contact are important 49% Telephone advisory services Generation X 48% 1961-1980 possible, some demand for online services 47% High demand for online 1981-2000 Generation Y 22% services 2017 2024 26 VIG CURRENT DEVELOPMENTS IN MANAGEMENT AGENDA 2020 VIENNA INSURANCE GROUP

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