Vienna Insurance : Autonomous Insurance and AWMs virtual conference

VIENNA INSURANCE GROUP

Investor Presentation

Results for the first quarter 2021

VIG - THE LEADING INSURANCE GROUP IN CENTRAL AND EASTERN EUROPE

50

group companies

More than

22 million

customers

Since

1994

continous payout of dividends

Represented in

30

markets

S&P Rating

A+

with stable outlook

Market capitalization

~ €2.8bn

(as of 31 March 2021)

More than

25,000

employees

Solvency Ratio 2020

238%

including transitionals (AT) and based on Partial Internal Model

Dividend per share of

75 Cents

proposal to the AGM

2 STRATEGY	VIG VIENNA INSURANCE GROUP

STRONG BUSINESS PROFILE AND SUCCESSFUL STRATEGY

Well diversified	Proven
portfolio over
countries and	business
lines of	model
business

M&A - based on	Strong balance	Numerous	Five-pillar
strong footprint,	sustainability
initiatives to drive
VIG follows	sheet and	strategy:
profitability and
selective approach	prudent	Core business
enable future
accounting	Customers
	viability
		Employees
			Society
			Environment

▪ VIG is the leading	▪	Local
insurance group in CEE		entrepreneurship
▪ Operating in 30 markets	▪	Multi-brand policy
▪ No. 1 in many markets	▪	Multi-channel
throughout the region		distribution
▪ Providing insurance	▪	Conservative
solutions for all lines of		investment &
business to more than		reinsurance policies
22 million customers	▪	Binding compliance
		and governance
		framework

• Early mover
• 30 years of M&A experience in Central- and Eastern Europe
• Taking advantage of the growth potential in the region
• 2020: Share purchase agreement signed to acquire Aegon's CEE business

• A+ Rating with a stable outlook (S&P)
• Solvency Ratio YE 2020: 238%
• Continuous payout of dividends since 1994
• Dividend policy: distribution in the range of 30 to 50% of Group net profits

▪ Optimisation of	▪ Exit and reduction
business model under	scenario for the coal
Agenda 2020	industry

• Clear progress made ▪ Focused on green bond

in the digital	investments:
transformation of VIG	2020: €238.2mn

• Staying ahead of ▪ Investments in non-profit

changes and trends to	housing societies
make use of future	▪ Senior sustainability bond
opportunities	of €500mn issued

3 STRATEGY	VIG VIENNA INSURANCE GROUP

SUCCESSFUL TRACK-RECORD OF M&A ACTIVITIES

From a local player to the market in leader in CEE

CEE entry	Expansion	Expansion
1990-1995	1996-1999	1999-2008
▪ Early mover in CEE	▪ Entries into the Hungarian,	▪	Successful M&A policy
▪	November 1990:	Polish and Croatian		when insurance markets
	participation in the founding	insurance markets		were split up among
	of the Czechoslovakian	▪ Branch offices in Italy and		international players
	cooperative insurance	Liechtenstein	▪	Banking cooperation with
	company Kooperativa in	▪ VIG grabbed lion share of		Erste Group and the
	Bratislava one year after the	market during		acquisition of its insurance
	fall of the Iron Curtain	demonopolisation of MTPL		companies increased VIG's
		insurance and strong upturn		share in life throughout the
		of insurance demand in		region
		CEE	▪ Foundation of VIG Re (own
				reinsurance company)
4	STRATEGY

Strengthening positions and group profile

2009 onwards

• Gaining access to the last blank areas on the map of
  CEE
• Focus on bolt-on- acquisitions
• VIG RE branch offices for third party business
• Offering insurance solutions to corporate customers in Northern Europe

PL

HU RO

TR

AEGON-Deal

Signed in November 2020

• Acquisition of non-life and life insurance companies, pension funds, asset management and service companies in Hungary, Poland, Romania and Turkey
• Expansion of VIG's leading market position in CEE
• Closing expected in the 2nd half of 2021

VIG VIENNA INSURANCE GROUP

AEGON CEE TRANSACTION

Delivering on

1 strategy

• Announced transaction is in line with VIG's strategy of building further scale in CEE
• Confirms VIG's #1 position in CEE

1. Key terms
2. Strategic Merits
3. Financially attractive
4. Outlook

• Acquisition of Aegon's non-life and life insurance companies as well as pension funds, and asset management in Hungary, Poland,
  Romania and Turkey for €830mn
• Share purchase agreement signed on 29 November 2020
• Total premium volume in the four countries: ~€600mn in 2019 / Net profit: ~€50mn in 2019
• Expanding in target geographies with enhanced diversification within CEE
• Gaining 4.5mn new clients and complementary distribution network
• Becoming market leader in Hungary with 19% market share
• Strengthening positions in Poland & Romania
• Expanding pension fund business in Hungary, Poland and Romania; all three companies among top 4
• Extending Turkish presence into life becoming Nr. 7 in life insurance market
• Attractive synergies
• Highly confident in achieving synergies on the back of ~40 acquisitions over the past 15 years in CEE
• Transaction to be financed by internal sources; long-term capital optimisation measures ongoing
• Transaction remains subject to regulatory and anti-trust approvals with closing expected in the second half of 2021. Despite the current denial of approval by the Hungarian Ministry of Interior, which is due to the fact that the acquisition is made by a foreign investor, VIG remains in a dialogue with all local authorities involved and is continuing the approval procedures.

5 STRATEGY	VIG VIENNA INSURANCE GROUP