EANS-News: UNIQA Insurance Group AG
UNIQA remains on track in Q1 2014
--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------
quarterly report
UNIQA remains on track in Q1 2014
· Premiums written up 2.3 per cent
· Retained premiums earned (not including savings portions) rise by 6.6 per
cent
· Further improvement in Group cost ratio and combined ratio,
significant increase in earnings in core insurance business
· EBT up 20.2 per cent on a like-for-like basis (not including non-
recurring effects from the hotel sale in 2013)
· Continued strong Solvency I ratio of 287 per cent
In the first quarter of 2014, the UNIQA Insurance Group AG (UNIQA Group)
generated a profit on ordinary activities (EBT) of EUR 81.4 million. On a like-
for-like basis (not including the non-recurring effect from the sale of the
hotel group in the first quarter of 2013 in the amount of EUR 49.1 million), EBT
was up 20.2 per cent. If this non-recurring effect in the first quarter of 2013
is included, EBT in the first three months of 2014 was 30.3 per cent lower than
the previous year's figure (1-3/2013: EUR 116.8 million).
The UNIQA Group increased its premiums written - including the savings portion
of unit- and index-linked life insurance - by 2.3 per cent to EUR 1,702.6
million (1-3/2013: EUR 1,664.0 million). Retained premiums earned (in accordance
with IFRS, not including savings portions) climbed by 6.6 per cent to
EUR 1,370.9 million (1-3/2013: EUR 1,286.5 million).
UNIQA CEO Andreas Brandstetter comments: "Since 2011 we have made sustainable
progress in many areas through the gradual implementation of our UNIQA 2.0 long-
term strategy programme. We improved once again in the first quarter of 2014,
particularly in core insurance business. We generated moderate growth in
premiums in a challenging environment, while further reducing the cost ratio and
the combined ratio. As a result, EBT increased again this quarter on a like-for-
like basis, despite the decline in net investment income in a low-interest
environment. All in all, we came another step closer to achieving our long-term
goals this quarter. We will keep to our path and continue to work
systematically."
Key Group figures
Premiums written by the UNIQA Group - including the savings portion of unit- and
index-linked life insurance - rose by a moderate 2.3 per cent to EUR 1,702.6
million in the first quarter of 2014 (1-3/2013: EUR 1,664.0 million). Premium
growth was curbed primarily by a significant decrease in premiums in unit-linked
life insurance. This development was also triggered by effects in connection
with the resolution to completely withdraw from the German market and not to
conclude any new business, which was adopted back in 2011.
Retained premiums earned (in accordance with IFRS, not including the savings
portion of unit- and index-linked life insurance) increased significantly by 6.6
per cent to EUR 1,370.9 million (1-3/2013: EUR 1,286.5 million).
Retained insurance benefits of the UNIQA Group climbed by 4.9 per cent to
EUR 1,098.9 million in the first quarter of 2014 (1-3/2013: EUR 1,047.3
million). The increase in benefits is thus 1.7 percentage points lower than the
increase in premiums earned.
Operating expenses less reinsurance commissions received decreased by 1.6 per
cent to EUR 316.4 million (1-3/2013: EUR 321.5 million). There was a significant
reduction in administrative expenses, which fell by 14.7 per cent or EUR 15.8
million to EUR 91.6 million (1-3/2013: EUR 107.4 million). Expenses for
generating business increased in step with the growth in retained premiums
earned, rising by 5.0 per cent to EUR 224.8 million (1-3/2013: EUR 214.1
million).
The Group cost ratio after reinsurance improved by 1.1 percentage points to
21.2 per cent (1-3/2013: 22.3 per cent), chiefly due to the reduced
administrative expenses.
In 2012, the first full financial year after the UNIQA 2.0 strategy programme
was launched, the cost ratio was still 25.0 per cent.
The combined ratio improved by 0.5 percentage points to 97.8 per cent (1-3/2013:
98.3 per cent). In 2012, the combined ratio was 101.3 per cent.
The underwriting result of the UNIQA Group rose significantly by 146.3 per cent
to EUR 65.6 million in the first quarter of 2014 (1-3/2013: EUR 26.6 million).
This increase was attributable to the lower growth in benefits in comparison to
premium growth as well as to the reduced costs.
Net investment incomeof the UNIQA Group fell by 36.5 per cent to
EUR 143.6 million in the first quarter of 2014 (1-3/2013: EUR 226.0 million).
However, the comparative figure for the previous year included the book profit
on the disposal of the Austria Hotels International Group, which amounted to EUR
49.1 million. On a like-for-like basis (not including the non-recurring effect
from the sale of the hotel group), net investment income decreased by 18.8 per
cent. This development firstly results from the fact that the first quarter of
2013 was influenced by higher positive exchange rate effects than the first
quarter of 2014, and secondly from the effect of the continuing low interest
rates on new investment.
The investment portfolio of the UNIQA Group (including unit- and index-linked
life insurance investments) increased by EUR 881.1 million as against the end of
the previous year to EUR 28,264.7 million as at 31 March 2014 (31 December 2013:
EUR 27,383.6 million).
The UNIQA Group's profit on ordinary activities amounted to EUR 81.4 million in
the first quarter of the current year. On a like-for-like basis (not including
the non-recurring effect from the sale of the hotel group in the first quarter
of 2013 in the amount of EUR 49.1 million), this corresponds to an increase of
20.2 per cent. If this non-recurring effect in the first quarter of 2013 is
included, EBT in the first three months of 2014 was 30.3 per cent lower than the
previous year's figure (1-3/2013: EUR 116.8 million).
The net profit for the period amounted to EUR 57.7 million (1-3/2013:
EUR 77.5 million), while the consolidated profit (after taxes and minority
interests) fell by 26.4 per cent to EUR 55.9 million (1-3/2013: EUR 76.0
million). In both cases, the decline is attributable to the non-recurring effect
from the sale of the hotel group in the first quarter of 2013.
In the first three months of 2014, the UNIQA Group's total equity increased by
6.0 per cent to EUR 2,957.0 million (31 December 2013: EUR 2,789.9 million).
The solvency ratio (Solvency I) remained virtually unchanged in the first
quarter of 2014 as against the end of the previous year at a very strong level
of 286.6 per cent (31 December 2013: 287.1 per cent).
Outlook
The UNIQA Group has set itself the target of significantly increasing its profit
on ordinary activities again in 2014 in comparison to 2013. This assumes that
the capital market environment will be stable, that economic development will
continue to improve and that losses caused by natural disasters will remain
within a normal range.
Forward-looking statements
This press release contains statements concerning UNIQA's future development.
These statements present estimates 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 deviate from the results
currently expected. As a result, no liability is accepted for this information.
UNIQA 2.0
UNIQA 2.0 is a long-term strategy programme that the company has been
implementing since May 2011. UNIQA has set itself the target of increasing its
customer base to 15 million by 2020 and improving its EBT by up to
EUR 350 million between 2012 and 2015. In doing this, the company is focusing on
its core business as a primary insurer in its core markets of Austria and
Central and Eastern Europe (CEE). The business model is geared towards
profitable growth and long-term value added in these markets. UNIQA intends to
boost profitability at UNIQA Austria, increase productivity at Raiffeisen
Versicherung in Austria and leverage the growth potential in the CEE region and
is implementing a systematic risk/return approach.
UNIQA
The UNIQA Group is one of the leading insurance groups in its core markets of
Austria and Central and Eastern Europe (CEE). 22,000 employees and exclusive
sales partners serve around 9.3 million customers in 19 countries. UNIQA is the
second-largest insurance group in Austria with a market share of around 22 per
cent. UNIQA operates in 15 markets in the CEE growth region: Albania, Bosnia and
Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Kosovo, Macedonia,
Montenegro, Poland, Romania, Russia, Serbia, Slovakia, and Ukraine. The UNIQA
Group also includes insurance companies in Italy, Switzerland and Liechtenstein.
Further inquiry note:
UNIQA Insurance Group AG
Norbert Heller
Tel.: +43 (01) 211 75-3414
mailto:norbert.heller@uniqa.at
end of announcement euro adhoc
--------------------------------------------------------------------------------
company: UNIQA Insurance Group AG
Untere Donaustraße 21
A-1029 Wien
phone: 01/211 75-0
mail: investor.relations@uniqa.at
WWW: http://www.uniqagroup.com
sector: Insurance
ISIN: AT0000821103
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien
language: English
Original content of: UNIQA Insurance Group AG, transmitted by news aktuell