UNIQA: Profitable growth and sound results after nine months

In the first nine months of 2022, UNIQA Insurance Group AG (UNIQA) generated earnings before taxes of €275 million. Premiums written grew by 4.3 per cent by the end of September 2022. Increases were recorded in all business lines: property and casualty insurance grew by 5.5 per cent, health insurance by 4.9 per cent and life insurance by 1.2 per cent. “We have achieved sound results in the first nine months despite complex economic conditions. At €275 million, the earnings before taxes are only slightly below the previous year's level, despite the high depreciation and impairment losses on Russian bonds from the first half ofthe year, high charges from major claims and natural catastrophes, and the sharp rise in inflation,” said Andreas Brandstetter, CEO of the UNIQA Insurance Group.

The combined ratio increased slightly to 94.4 per cent (1 – 9/2021: 94.2 per cent) due to high claims burdens from major losses and severe weather, as did the overall cost ratio to 26.7 per cent (1 – 9/2021: 26.4 per cent) due to inflation. “Our core business is resilient and energetic, both in Austria and in international markets. We were able to absorb the effects of inflation for the most part through high cost discipline. Our 'UNIQA 3.0 – Seeding the Future' growth programme is on schedule, and our subsidiaries in CEE are developing well following the integration of the ex-AXA companies”, Brandstetter added.

Consolidated key figures for 1 – 9/2022 in detail

Premiums written in the UNIQA Group including savings portions from unit-linked and index-linked life insurance rose by 4.3 per cent to €5,033.1 million in the first three quarters of 2022 (1 – 9/2021: €4,827.2 million). While the recurring premiums included in these grew by 3.7 per cent to €4,899.0 million (1 – 9/2021: €4,724.5 million), single premiums in life insurance increased by 30.6 per cent to €134.1 million (1 – 9/2021: €102.7 million). Premiums earned (net, in accordance with IFRSs) increased by 4.7 per cent to €4,458.7 million (1 – 9/2021: €4,257.1 million).

Premiums written in property and casualty insurance rose by 5.5 per cent to €2,832.2 million in the first nine months of 2022 (1 – 9/2021: €2,685.3 million). Premiums earned (net) increased by 6.4 per cent in this segment. In health insurance, premiums written in the reporting period rose by 4.9 per cent to €963.6 million (1 – 9/2021: €918.7 million). Premiums earned (net, in accordance with IFRSs) in health insurance grew by 5.2 per cent. In life insurance, the premiums written including savings portions from the unit-linked and index-linked life insurance rose overall in the first nine months of 2022 by 1.2 per cent to €1,237.4 million (1 – 9/2021: €1,223.2 million). Premiums earned (net, in accordance with IFRSs) in life insurance grew by 0.2 per cent.

At the international level, premiums written including savings portions from unit-linked and index-linked life insurance rose overall in the first nine months of 2022 by 3.5 per cent to €1,885.7 million (1 – 9/2021: €1,822.3 million). This meant that the international companies contributed a total of 37.5 per cent to total Group premiums overall in the first three quarters of 2022 (1 – 9/2021: 37.8 per cent).

In Austria, premiums written including savings portions from unit-linked and index-linked life insurance rose overall in the first nine months of 2022 by 5.0 per cent to €3,140.1 million (1 – 9/2021: €2,991.3 million).

The total amount of net insurance benefits in the UNIQA Group increased in the first three quarters of 2022 by 4.9 per cent to €3,235.1 million (1 – 9/2021: €3,085.4 million).

Total operating expenses less reinsurance commission received rose by 6.0 per cent to €1,257.8 million in the first nine months of 2022 (1 – 9/2021: €1,186.7 million). Expenses for the acquisition of insurance rose by 15.3 per cent to €863.7 million (1 – 9/2021: €748.8 million). The reinsurance commission received amounting to €20.4 million (1 – 9/2021: €16.8 million) has already been deducted from the acquisition costs. Other operating expenses (administrative costs) rose in the first three quarters of 2022 by 10.0 per cent to €394.1 million (1 – 9/2021: €437.9 million).

The overall cost ratio, i.e. the ratio of total operating expenses to the premiums earned including net savings portions of the premiums from unit-linked and index-linked life insurance, increased to 26.7 per cent, taking into account the reinsurance commission received (1 – 9/2021: 26.4 per cent). In property and casualty insurance, the combined ratio after reinsurance rose slightly to 94.4 per cent (1 – 9/2021: 94.2 per cent).

Net investment income decreased in the first three quarters of 2022 by 11.7 per cent to €368.8 million (1 – 9/2021: €417.8 million). In particular, the impairment of Russian bonds had a negative impact on net investment income in the first nine months of 2022. The equity method accounting for the holding in the construction group STRABAG SE resulted in a positive contribution to earnings of €63.4 million in the first three quarters of 2022 (1 – 9/2021: €38.4 million).

The UNIQA Group’s investment portfolio (including investment property, financial assets accounted for using the equity method and other investments) fell to €18,197.3 million as at 30 September 2022 compared with the last reporting date (31 December 2021: €21,785.0 million).

The UNIQA Group’s technical result decreased by 10.8 per cent to €168.8 million in the first three quarters of 2022 (1 – 9/2021: €189.2 million), mainly due to an increase in acquisition costs. The operating profit fell by 11.5 per cent to €345.4 million (1 – 9/2021: €390.4 million). The UNIQA Group’s earnings before taxes fell accordingly by 7.8 per cent to €275.4 million (1 – 9/2021: €298.7 million). Consolidated profit/(loss) (proportion of the net profit for the period attributable to the shareholders of UNIQA Insurance Group AG) increased, however, by 3.0 per cent to €242.9 million (1 – 9/2021: €235.8 million). Earnings per share amounted to €0.79 (1 – 9/2021: €0.77).

Equity attributable to the shareholders of UNIQA Insurance Group AG fell to €1,826.2 million as at 30 September 2022 (31 December 2021: €3,303.6 million). The main reason for this development was the decrease in the measurement of financial instruments available for sale due to the increase in returns and the dividend payment for the 2021 financial year.

The Solvency II ratio as at 30 September 2022 was 244 per cent (31 December 2021: 196 per cent).

The average number of employees at the UNIQA Group fell in the first nine months of 2022 to 14,428 (1 – 9/2021: 14,681).

Outlook

UNIQA expects rising premium income and strong development in the technical core business this year. However, it is currently impossible to provide a solid assessment of capital market developments and thus a stable forecast regarding net investment income. UNIQA is therefore still not issuing a profit forecast for the year as a whole.

Clause regarding predictions about the future

This communication contains statements which refer to the future development of UNIQA. These statements present estimations which were reached on the basis of all of the information available to us at the present time. If the assumptions on which they are based do not occur, the actual results may vary from the results currently expected. This is why no guarantee can be provided for the information given.