Uniqa Insurance Group AG

Annual Report (ESEF) • Apr 8, 2022

529900OOW8ELHOXWZP822021-01-012021-12-31529900OOW8ELHOXWZP822021-12-31iso4217:EUR529900OOW8ELHOXWZP822020-12-31529900OOW8ELHOXWZP822020-01-012020-12-31iso4217:EURxbrli:sharesxbrli:shares529900OOW8ELHOXWZP822019-12-31529900OOW8ELHOXWZP822019-12-31uniqainsgroupag:SubscribedCapitalAndCapitalReservesMember529900OOW8ELHOXWZP822019-12-31ifrs-full:TreasurySharesMember529900OOW8ELHOXWZP822019-12-31ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMember529900OOW8ELHOXWZP822019-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember529900OOW8ELHOXWZP822020-01-012020-12-31ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMember529900OOW8ELHOXWZP822020-01-012020-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember529900OOW8ELHOXWZP822020-12-31uniqainsgroupag:SubscribedCapitalAndCapitalReservesMember529900OOW8ELHOXWZP822020-12-31ifrs-full:TreasurySharesMember529900OOW8ELHOXWZP822020-12-31ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMember529900OOW8ELHOXWZP822020-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember529900OOW8ELHOXWZP822021-01-012021-12-31ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMember529900OOW8ELHOXWZP822021-01-012021-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember529900OOW8ELHOXWZP822021-12-31uniqainsgroupag:SubscribedCapitalAndCapitalReservesMember529900OOW8ELHOXWZP822021-12-31ifrs-full:TreasurySharesMember529900OOW8ELHOXWZP822021-12-31ifrs-full:ReserveOfGainsAndLossesOnRemeasuringAvailableforsaleFinancialAssetsMember529900OOW8ELHOXWZP822021-12-31ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember529900OOW8ELHOXWZP822019-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900OOW8ELHOXWZP822019-12-31ifrs-full:RetainedEarningsMember529900OOW8ELHOXWZP822019-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900OOW8ELHOXWZP822019-12-31ifrs-full:NoncontrollingInterestsMember529900OOW8ELHOXWZP822020-01-012020-12-31ifrs-full:RetainedEarningsMember529900OOW8ELHOXWZP822020-01-012020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900OOW8ELHOXWZP822020-01-012020-12-31ifrs-full:NoncontrollingInterestsMember529900OOW8ELHOXWZP822020-01-012020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900OOW8ELHOXWZP822020-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900OOW8ELHOXWZP822020-12-31ifrs-full:RetainedEarningsMember529900OOW8ELHOXWZP822020-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900OOW8ELHOXWZP822020-12-31ifrs-full:NoncontrollingInterestsMember529900OOW8ELHOXWZP822021-01-012021-12-31ifrs-full:RetainedEarningsMember529900OOW8ELHOXWZP822021-01-012021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900OOW8ELHOXWZP822021-01-012021-12-31ifrs-full:NoncontrollingInterestsMember529900OOW8ELHOXWZP822021-01-012021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900OOW8ELHOXWZP822021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember529900OOW8ELHOXWZP822021-12-31ifrs-full:RetainedEarningsMember529900OOW8ELHOXWZP822021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember529900OOW8ELHOXWZP822021-12-31ifrs-full:NoncontrollingInterestsMember living better together Annual Financial Report 2021 according to section 124(1) of the Austrian Stock Exchange Act | UNIQA Insurance Group AG Consolidated Corporate Governance Report � � � � � � � � � � � � � � � � � � � � � � � � � � � � 4 Report of the Supervisory Board � � � � � � � � � � � � � 16 Non-Financial Report � � � � � � � � � � � � � � � � � � � � � � � � 20 Group Management Report � � � � � � � � � � � � � � � � � 40 Consolidated Financial Statements � � � � � � � � 60 Notes to the Consolidated Financial Statements � � � � � � � � � � � � � � � � � � � � � � � � � 67 Approval for publication � � � � � � � � � � � � � � � � � � � � � 153 Declaration of the legal representatives � � � � � � � � � � � � � � � � � � � � � � � � � 154 Audit Opinion � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 155 Contents 3 Consolidated Corporate Governance Report Group Report 2021 4 UNIQA has been committed to compliance with the Aus- trian Code of Corporate Governance since 2004 and pub- lishes the declaration of conformity both in the Group report and on www.uniqagroup.com in the Investor Re- lations section. The Austrian Code of Corporate Govern- ance is also publicly available at www.uniqagroup.com and www.corporate-governance.at. The Corporate Governance Report and the Consolidated Cor- porate Governance Report of UNIQA Insurance Group AG are summarised in this report in accordance with Section 267b in conjunction with Section 251(3) of the Austrian Com- mercial Code. Implementation and compliance with the individual rules in the Austrian Code of Corporate Governance, with the ex- ception of Rules 77 to 83, are evaluated annually by PwC Wirtschaftsprüfung GmbH. Rules 77 to 83 of the Austrian Code of Corporate Governance are evaluated by the law firm Schönherr Rechtsanwälte GmbH. The evaluation is carried out based mainly on the questionnaire, published by the Austrian Working Group for Corporate Governance, for the evaluation of compliance with the Code. The reports on the external evaluation in accordance with Rule 62 of the Aus- trian Code of Corporate Governance can also be found at www.uniqagroup.com. The Supervisory Board is supported by Vienna Strategy HUB GmbH with self-assessments of the Supervisory Board regarding the efficiency of its activities (Rule 36 of the Aus- trian Code of Corporate Governance). UNIQA also declares its continued willingness to comply with the Austrian Code of Corporate Governance as cur- rently amended. However, UNIQA deviates from the provi- sions of the Code as amended with regard to the following C rules (comply or explain rules), and the explanations are set out below. Rule 49 of the Austrian Code of Corporate Governance Due to the growth of UNIQA’s shareholder structure and the special nature of the insurance business with regard to the investment of assets, there are a number of contracts with companies related to individual members of the Supervisory Board in which these Supervisory Board members discharge duties as members of governing bodies. If such contracts require approval by the Supervisory Board in accordance with Section 95(5)(12) of the Austrian Stock Corporation Act (Rule 48 of the Austrian Code of Corporate Governance), the details of these contracts cannot be made public for rea- sons of company policy and competition law. All transac- tions are in any case entered into and processed on an arm’s length basis. 5 Corporate governance Corporate Governance Report Name Responsible for Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements Management and monitoring functions in significant subsidiaries Portfolio of UNIQA shares at 31 December 2021 Andreas Brandstetter, Chief Executive Officer (CEO) * 1969, appointed 1 January 2002 until 30 June 2024 Strategy & Transformation, UNIQA Ventures, New Business Areas (Health), General Secretariat, Auditing Member of the Supervisory Board of STRABAG SE, Villach Member of the Advisory Board of the KHM Association of Museums, Vienna Chairman of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Chairman of the Supervisory Board of SIGAL UNIQA Group AUSTRIA sh.a., Tirana Chairman of the Supervisory Board of SIGAL LIFE UNIQA Group AUSTRIA sh.a., Tirana Chairman of the Board of Directors of UNIQA Re AG, Zurich 124,479 shares Peter Eichler, Personal Insurance * 1961, appointed 1 July 2020 until 30 June 2024 Product Development – Health, Life & Casualty, Health Inpatient Benefits, Asset Management (UCM/UREM) Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Chairman of the Supervisory Board of PremiQaMed Holding GmbH, Vienna Member of the Supervisory Board of Valida Holding AG, Vienna Member of the Supervisory Board of UNIQA Biztosító Zrt., Budapest (until 19 May 2021) Member of the Board of Directors of UNIQA Versicherung AG, Vaduz Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń na Życie S.A., Warsaw Member of the Supervisory Board of AXA Życie Towarzystwo Ubezpieczeń S.A., Warsaw (until 9 April 2021 – merger with UNIQA Towarzystwo Ubezpieczeń na Życie S.A.) Member of the Supervisory Board of UNIQA penzijní společnost a.s., Prague (since 12 May 2021) Member of the Supervisory Board of UNIQA investiční společnost a.s., Prague (since 12 May 2021) Member of the Supervisory Board of UNIQA poisťovňa a.s., Bratislava (since 15 January 2021) Member of the Supervisory Board of UNIQA d.d.s., a.s., Bratislava (since 10 June 2021) Member of the Supervisory Board of UNIQA d.s.s., a.s., Bratislava (since 10 June 2021) Chairman of the Board of Directors of UNIQA GlobalCare SA, Geneva (Member of the Board of Directors until 19 March 2021) 10,669 shares Wolf-Christoph Gerlach, Operations * 1979, appointed 1 July 2020 until 30 June 2023 Application, Contract & Customer Service, Claims Motor Vehicle/Property/Casualty Insurance, Life & Outpatient Health Benefits, Company Organisa- tion (incl. OPEX & GPO), Purchasing & Adminis- tration, Group Service Centre (Nitra) Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Supervisory Board of UNIQA Asigurari de Viata SA, Bucharest (since 3 March 2021) Member of the Supervisory Board of CherryHUB BSC Korlátolt Felelösségü Társaság, Budapest Member of the Supervisory Board of UNIQA Biztosító Zrt., Budapest (since 19 May 2021) Member of the Supervisory Board of UNIQA pojišťovna, a.s., Prague (since 15 March 2021) Member of the Supervisory Board of AXA životní pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Member of the Supervisory Board of AXA pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń S.A., Warsaw (since 28 June 2021) 6,570 shares Peter Humer, Customers & Markets Austria * 1971, appointed 1 July 2020 until 30 June 2024 Regional Offices, Retail Austria, Product Develop- ment & Pricing for Motor Vehicles and Standard Property Business, Sales Service, Sales Manage- ment, Corporate Austria, Product Development & Risk Engineering for Property Corporate, Affinity Business, Art Insurance, Digitalisation Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Supervisory Board of Salzburg Wohnbau GmbH, Salzburg Member of the Supervisory Board of “Wohnungseigentum”, Tiroler gemeinnützige Wohnbaugesellschaft m.b.H., Innsbruck (since 1 August 2021) 10,937 shares Wolfgang Kindl, Customers & Markets International * 1966, appointed 1 July 2020 until 30 June 2024 Retail International, Product Development & Pricing for Motor Vehicles and Non-Life Standard Business, Sales Service, Sales Management, Corporate International, Product Development & Risk Engineering for Non-Corporate, Large/ International Brokers, Affinity Business, Bank International, Product Service, Sales Service, Sales Management, New Insurance Solutions, Mergers & Acquisitions, Performance & Change Management International, General Secretariat International Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Vice Chairman of the Board of Directors of UNIQA Versicherung AG, Vaduz (until 22 January 2021) Chairman of the Supervisory Board of UNIQA Asigurari SA, Bucharest (until 24 August 2021) Chairman of the Supervisory Board of UNIQA Asigurari de Viata SA, Bucharest (until 24 August 2021) Chairman of the Supervisory Board of UNIQA Insurance plc, Sofia (until 19 April 2021) Member of the Supervisory Board of SIGAL UNIQA Group AUSTRIA sh.a., Tirana Member of the Supervisory Board of SIGAL LIFE UNIQA Group AUSTRIA sh.a., Tirana Chairman of the Supervisory Board of UNIQA poisťovňa a.s., Bratislava (until 14 January 2021) Chairman of the Supervisory Board of UNIQA pojišťovna, a.s., Prague (until 14 January 2021) Chairman of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń na Życie S.A., Warsaw (until 9 April 2021) Chairman of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń S.A., Warsaw (until 9 April 2021) Member of the Board of Directors of UNIQA GlobalCare SA, Geneva (Chairman of the Board of Directors until 19 March 2021) President of the Supervisory Board of CherryHUB BSC Korlátolt Felelösségü Társaság, Budapest (since 30 March 2021) 17,848 shares René Knapp, HR & Brand * 1983, appointed 1 July 2020 until 30 June 2023 Strategic Personnel Management, Operating Personnel Management, Brand & Communication, Ethics, Sustainability & Public Affairs, Works Council Member of the Supervisory Board of Öster- reichischen Förderungsgesellschaft der Versicherungsmathematik GmbH (ÖFdV GmbH), Vienna (since 19 February 2021) Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Supervisory Board of UNIQA pojišťovna, a.s., Prague (until 14 January 2021) Member of the Supervisory Board of UNIQA osiguranje d.d., Zagreb (until 4 March 2021) Member of the Supervisory Board of UNIQA poisťovňa a.s., Bratislava (until 14 January 2021) 10,000 shares Erik Leyers, Data & IT * 1969, appointed 1 June 2016 until 30 June 2024 Data Management, UITS (UNIQA IT Services GmbH), UIP Project (UNIQA Insurance Platform) Member of the Supervisory Board of Raiffeisen Informatik Geschäftsführungs GmbH, Vienna Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń S.A., Warsaw Member of the Supervisory Board of AXA Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji S.A., Warsaw (until 9 April 2021 – merger with UNIQA Towarzystwo Ubezpieczeń S.A.) Member of the Supervisory Board of UNIQA Biztosító Zrt., Budapest (until 19 May 2021) Member of the Supervisory Board of UNIQA pojišťovna, a.s., Prague Member of the Supervisory Board of AXA životní pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Member of the Supervisory Board of AXA pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Chairman of the Supervisory Board of UNIQA Group Service Center Slovakia, spol. s r.o., Nitra Chairman of the Supervisory Board of sTech d.o.o., Belgrade 9,371 shares Members of the Management Board Group Report 2021 6 Name Responsible for Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements Management and monitoring functions in significant subsidiaries Portfolio of UNIQA shares at 31 December 2021 Andreas Brandstetter, Chief Executive Officer (CEO) * 1969, appointed 1 January 2002 until 30 June 2024 Strategy & Transformation, UNIQA Ventures, New Business Areas (Health), General Secretariat, Auditing Member of the Supervisory Board of STRABAG SE, Villach Member of the Advisory Board of the KHM Association of Museums, Vienna Chairman of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Chairman of the Supervisory Board of SIGAL UNIQA Group AUSTRIA sh.a., Tirana Chairman of the Supervisory Board of SIGAL LIFE UNIQA Group AUSTRIA sh.a., Tirana Chairman of the Board of Directors of UNIQA Re AG, Zurich 124,479 shares Peter Eichler, Personal Insurance * 1961, appointed 1 July 2020 until 30 June 2024 Product Development – Health, Life & Casualty, Health Inpatient Benefits, Asset Management (UCM/UREM) Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Chairman of the Supervisory Board of PremiQaMed Holding GmbH, Vienna Member of the Supervisory Board of Valida Holding AG, Vienna Member of the Supervisory Board of UNIQA Biztosító Zrt., Budapest (until 19 May 2021) Member of the Board of Directors of UNIQA Versicherung AG, Vaduz Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń na Życie S.A., Warsaw Member of the Supervisory Board of AXA Życie Towarzystwo Ubezpieczeń S.A., Warsaw (until 9 April 2021 – merger with UNIQA Towarzystwo Ubezpieczeń na Życie S.A.) Member of the Supervisory Board of UNIQA penzijní společnost a.s., Prague (since 12 May 2021) Member of the Supervisory Board of UNIQA investiční společnost a.s., Prague (since 12 May 2021) Member of the Supervisory Board of UNIQA poisťovňa a.s., Bratislava (since 15 January 2021) Member of the Supervisory Board of UNIQA d.d.s., a.s., Bratislava (since 10 June 2021) Member of the Supervisory Board of UNIQA d.s.s., a.s., Bratislava (since 10 June 2021) Chairman of the Board of Directors of UNIQA GlobalCare SA, Geneva (Member of the Board of Directors until 19 March 2021) 10,669 shares Wolf-Christoph Gerlach, Operations * 1979, appointed 1 July 2020 until 30 June 2023 Application, Contract & Customer Service, Claims Motor Vehicle/Property/Casualty Insurance, Life & Outpatient Health Benefits, Company Organisa- tion (incl. OPEX & GPO), Purchasing & Adminis- tration, Group Service Centre (Nitra) Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Supervisory Board of UNIQA Asigurari de Viata SA, Bucharest (since 3 March 2021) Member of the Supervisory Board of CherryHUB BSC Korlátolt Felelösségü Társaság, Budapest Member of the Supervisory Board of UNIQA Biztosító Zrt., Budapest (since 19 May 2021) Member of the Supervisory Board of UNIQA pojišťovna, a.s., Prague (since 15 March 2021) Member of the Supervisory Board of AXA životní pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Member of the Supervisory Board of AXA pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń S.A., Warsaw (since 28 June 2021) 6,570 shares Peter Humer, Customers & Markets Austria * 1971, appointed 1 July 2020 until 30 June 2024 Regional Offices, Retail Austria, Product Develop- ment & Pricing for Motor Vehicles and Standard Property Business, Sales Service, Sales Manage- ment, Corporate Austria, Product Development & Risk Engineering for Property Corporate, Affinity Business, Art Insurance, Digitalisation Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Supervisory Board of Salzburg Wohnbau GmbH, Salzburg Member of the Supervisory Board of “Wohnungseigentum”, Tiroler gemeinnützige Wohnbaugesellschaft m.b.H., Innsbruck (since 1 August 2021) 10,937 shares Wolfgang Kindl, Customers & Markets International * 1966, appointed 1 July 2020 until 30 June 2024 Retail International, Product Development & Pricing for Motor Vehicles and Non-Life Standard Business, Sales Service, Sales Management, Corporate International, Product Development & Risk Engineering for Non-Corporate, Large/ International Brokers, Affinity Business, Bank International, Product Service, Sales Service, Sales Management, New Insurance Solutions, Mergers & Acquisitions, Performance & Change Management International, General Secretariat International Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Vice Chairman of the Board of Directors of UNIQA Versicherung AG, Vaduz (until 22 January 2021) Chairman of the Supervisory Board of UNIQA Asigurari SA, Bucharest (until 24 August 2021) Chairman of the Supervisory Board of UNIQA Asigurari de Viata SA, Bucharest (until 24 August 2021) Chairman of the Supervisory Board of UNIQA Insurance plc, Sofia (until 19 April 2021) Member of the Supervisory Board of SIGAL UNIQA Group AUSTRIA sh.a., Tirana Member of the Supervisory Board of SIGAL LIFE UNIQA Group AUSTRIA sh.a., Tirana Chairman of the Supervisory Board of UNIQA poisťovňa a.s., Bratislava (until 14 January 2021) Chairman of the Supervisory Board of UNIQA pojišťovna, a.s., Prague (until 14 January 2021) Chairman of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń na Życie S.A., Warsaw (until 9 April 2021) Chairman of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń S.A., Warsaw (until 9 April 2021) Member of the Board of Directors of UNIQA GlobalCare SA, Geneva (Chairman of the Board of Directors until 19 March 2021) President of the Supervisory Board of CherryHUB BSC Korlátolt Felelösségü Társaság, Budapest (since 30 March 2021) 17,848 shares René Knapp, HR & Brand * 1983, appointed 1 July 2020 until 30 June 2023 Strategic Personnel Management, Operating Personnel Management, Brand & Communication, Ethics, Sustainability & Public Affairs, Works Council Member of the Supervisory Board of Öster- reichischen Förderungsgesellschaft der Versicherungsmathematik GmbH (ÖFdV GmbH), Vienna (since 19 February 2021) Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Supervisory Board of UNIQA pojišťovna, a.s., Prague (until 14 January 2021) Member of the Supervisory Board of UNIQA osiguranje d.d., Zagreb (until 4 March 2021) Member of the Supervisory Board of UNIQA poisťovňa a.s., Bratislava (until 14 January 2021) 10,000 shares Erik Leyers, Data & IT * 1969, appointed 1 June 2016 until 30 June 2024 Data Management, UITS (UNIQA IT Services GmbH), UIP Project (UNIQA Insurance Platform) Member of the Supervisory Board of Raiffeisen Informatik Geschäftsführungs GmbH, Vienna Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń S.A., Warsaw Member of the Supervisory Board of AXA Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji S.A., Warsaw (until 9 April 2021 – merger with UNIQA Towarzystwo Ubezpieczeń S.A.) Member of the Supervisory Board of UNIQA Biztosító Zrt., Budapest (until 19 May 2021) Member of the Supervisory Board of UNIQA pojišťovna, a.s., Prague Member of the Supervisory Board of AXA životní pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Member of the Supervisory Board of AXA pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Chairman of the Supervisory Board of UNIQA Group Service Center Slovakia, spol. s r.o., Nitra Chairman of the Supervisory Board of sTech d.o.o., Belgrade 9,371 shares 7 Corporate governance Corporate Governance Report Name Responsible for Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements Management and monitoring functions in significant subsidiaries Portfolio of UNIQA shares at 31 December 2021 Klaus Pekarek, Customers & Markets Bancassurance Austria * 1956, appointed 1 July 2020 until 30 June 2022 Product Service, Sales Service, Sales Management Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Vice Chairman of the Supervisory Board of Valida Holding AG, Vienna 13,283 shares Kurt Svoboda, Finance & Risk Management * 1967, appointed 1 July 2011 until 30 June 2024 Legal & Compliance, Investor Relations, Controlling, Finance & Accounting, Actuarial Services, Risk Management, Regulatory, Reinsurance, Auditing Member of the Supervisory Board of Wiener Börse AG, Vienna Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna President of the Board of Directors of UNIQA Versicherung AG, Vaduz (until 22 January 2021) Vice Chairman of the Board of Directors of UNIQA Re AG, Zurich Member of the Supervisory Board of UNIQA pojišťovna, a.s., Prague (since 15 March 2021) Member of the Supervisory Board of AXA životní pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Member of the Supervisory Board of AXA pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Member of the Supervisory Board of CherryHUB BSC Korlátolt Felelösségü Társaság, Budapest (since 20 September 2021) Member of the Supervisory Board of UNIQA Biztosító Zrt., Budapest (since 18 June 2021) Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń S.A., Warsaw (since 28 June 2021) Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń na Życie S.A., Warsaw (since 28 June 2021) 17,797 shares Members of the Management Board The work of the Management Board The work of the members of the Management Board of UNIQA Insurance Group AG is regulated by the rules of procedure. The allocation of the responsibilities as decided by the Group Executive Board is approved by the Supervisory Board. The rules of procedure govern the obligations of the members of the Management Board to provide the Supervisory Board and each other with information and approve each other’s activi- ties. The rules of procedure also specify a list of activities that require consent from the Supervisory Board. The Management Board generally holds weekly meetings in which the mem- bers of the Management Board report on the current course of business, determine what steps should be taken and make strategic corporate decisions. In addition, there is a continuous exchange of information between the members of the Manage- ment Board regarding relevant activities and events. The meetings of the Management Boards of UNIQA Insurance Group AG and UNIQA Österreich Versicherungen AG, which are composed of the same individuals, are usually held as joint sessions. The Management Board informs the Supervisory Board at reg- ular intervals, in a timely and comprehensive manner, about all relevant questions of business development, including the risk situation and the risk management of the Group. In addi- tion, the Chairman of the Supervisory Board is in regular con- tact with the CEO to discuss the company’s strategy, business performance and risk management. Group Report 2021 8 Name Responsible for Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements Management and monitoring functions in significant subsidiaries Portfolio of UNIQA shares at 31 December 2021 Klaus Pekarek, Customers & Markets Bancassurance Austria * 1956, appointed 1 July 2020 until 30 June 2022 Product Service, Sales Service, Sales Management Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Vice Chairman of the Supervisory Board of Valida Holding AG, Vienna 13,283 shares Kurt Svoboda, Finance & Risk Management * 1967, appointed 1 July 2011 until 30 June 2024 Legal & Compliance, Investor Relations, Controlling, Finance & Accounting, Actuarial Services, Risk Management, Regulatory, Reinsurance, Auditing Member of the Supervisory Board of Wiener Börse AG, Vienna Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna President of the Board of Directors of UNIQA Versicherung AG, Vaduz (until 22 January 2021) Vice Chairman of the Board of Directors of UNIQA Re AG, Zurich Member of the Supervisory Board of UNIQA pojišťovna, a.s., Prague (since 15 March 2021) Member of the Supervisory Board of AXA životní pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Member of the Supervisory Board of AXA pojišťovna a.s., Prague (from 15 March 2021 until 31 August 2021 – merger with UNIQA pojišťovna, a.s.) Member of the Supervisory Board of CherryHUB BSC Korlátolt Felelösségü Társaság, Budapest (since 20 September 2021) Member of the Supervisory Board of UNIQA Biztosító Zrt., Budapest (since 18 June 2021) Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń S.A., Warsaw (since 28 June 2021) Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczeń na Życie S.A., Warsaw (since 28 June 2021) 17,797 shares 9 Corporate governance Corporate Governance Report Members of the Supervisory Board Name Supervisory Board appointments in domestic and foreign listed companies Management and monitoring functions in significant subsidiaries Number of UNIQA shares held as at 31 December 2021 Walter Rothensteiner, Chairman * 1953, appointed 3 July 1995 until the 24th AGM (2023) Chairman of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna Christian Kuhn, 1st Vice-Chairman * 1954, appointed 15 May 2006 until the 24th AGM (2023) Vice Chairman of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna Johann Strobl, 2nd Vice-Chairman * 1959, appointed 25 May 2020 until the 24th AGM (2023) Vice Chairman of the Supervisory Board of Tatra banka, a. s., Bratislava Member of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna Burkhard Gantenbein, 3rd Vice-Chairman * 1963, appointed 29 May 2017 until the 24th AGM (2023) Member of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna 25,250 shares Markus Andréewitch, Member * 1955, appointed 26 May 2014 until the 24th AGM (2023) Member of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna Marie-Valerie Brunner, Member * 1967, appointed 28 May 2018 until the 24th AGM (2023) Member of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna 1,750 shares Anna Maria D’Hulster, Member * 1964, appointed 20 May 2019 until the 24th AGM (2023) Member of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna Elgar Fleisch, Member * 1968, appointed 28 May 2018 until the 24th AGM (2023) Member of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna Martin Grüll, Member * 1959, appointed 20 May 2019 until the 24th AGM (2023) Member of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna Jutta Kath, Member * 1960, appointed 30 May 2016 until the 24th AGM (2023) Member of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Board of Directors of UNIQA Re AG, Zurich Delegated by the Central Works Council Sabine Andre * 1966, since 20 May 2019 Peter Gattinger * 1976, from 10 April 2013 until 26 May 2015 and since 30 May 2016 Heinrich Kames * 1962, since 10 April 2013 56 shares Harald Kindermann * 1969, since 26 May 2015 750 shares Irene Scheiber * 1965, since 20 May 2020 Group Report 2021 10 Committees of the Supervisory Board Committee Chairman Vice Chairman Members Delegated by the Central Works Council Committee for Board Affairs Walter Rothensteiner Christian Kuhn Burkhard Gantenbein, Johann Strobl Working Committee Walter Rothensteiner Christian Kuhn Elgar Fleisch, Burkhard Gantenbein, Martin Grüll, Johann Strobl Sabine Andre, Peter Gattinger, Heinrich Kames Audit Committee Walter Rothensteiner Christian Kuhn Anna Maria D’Hulster, Burkhard Gantenbein, Jutta Kath, Johann Strobl Sabine Andre, Peter Gattinger, Heinrich Kames Investment Committee Martin Grüll Christian Kuhn Marie-Valerie Brunner, Anna Maria D’Hulster, Burkhard Gantenbein, Jutta Kath Sabine Andre, Peter Gattinger, Heinrich Kames IT Committee Markus Andréewitch Jutta Kath Marie-Valerie Brunner, Elgar Fleisch Peter Gattinger, Heinrich Kames Digital Transformation Committee Elgar Fleisch Burkhard Gantenbein Markus Andréewitch, Marie-Valerie Brunner, Anna Maria D’Hulster, Walter Rothensteiner Sabine Andre, Peter Gattinger, Heinrich Kames 11 Corporate governance Corporate Governance Report The work of the Supervisory Board and its committees The Supervisory Board advises the Management Board in its strategic planning and projects. It decides on the matters assigned to it by law, the Articles of Association and its rules of procedure. The Supervisory Board is responsible for super- vising the management of the company by the Management Board. It is comprised of ten shareholder representatives and five employee representatives and it convened for five meetings in 2021. One decision was made by way of circular resolution. All members of the Supervisory Board attended more than half of the meetings of the Supervisory Board in the 2021 financial year either in person, or virtually via tele- phone or video conference. A Committee for Board Affairs has been appointed to handle the relationship between the company and the members of its Management Board relating to employment and salary; this committee also acts as the Nominating and Remunera- tion Committee and is composed of the members of the Exec- utive Committee of the Supervisory Board. The Committee dealt with the remuneration strategy and succession plan- ning in several meetings in 2021. The Working Committee of the Supervisory Board is only called upon to make decisions if the urgency of the matter means that the decision cannot wait until the next meeting of the Supervisory Board. It is the Chairman’s responsibility to assess the urgency of the matter. The resolutions passed must be reported in the next meeting of the Supervisory Board. Generally, the Working Committee can make deci- sions on any issue that is the responsibility of the Super- visory Board, but this does not include issues of particular importance or matters that must be decided upon by the full Supervisory Board by law. The Working Committee did not convene for any meetings in 2021. One decision was made by way of circular resolution. The Audit Committee of the Supervisory Board performs the duties assigned to it by law. The Audit Committee con- vened for three meetings, which were also attended by the statutory auditor of the (consolidated) financial statements, and there were also discussions with the auditor without the presence of the Management Board. The meetings dealt with all the documents relating to the financial statements, the Corporate Governance Report, the appropriation of profit proposed by the Management Board and the report on the au- dit of the risk management (all for the 2020 financial year). Furthermore, the audit of the 2021 financial statements of the companies of the consolidated group was planned, and the statutory auditor reported on the results of preliminary audits. In particular, the Audit Committee received quarter- ly reports from Internal Audit concerning audit areas and material findings based on the audits conducted and the compliance officer reported on her activities on an ongoing basis. The accounting process was monitored on the basis of concrete case studies. A public tender was launched for the audit of the financial statements for the 2023 financial year. The Investment Committee advises the Management Board with regard to its investment policy; it has no decision-mak- ing authority. The Investment Committee held four meetings during which the members discussed the capital investment strategy, questions concerning capital structure and the fo- cus of risk management and asset liability management. The IT Committee dealt with the ongoing monitoring of the progress of the project implementing the UNIQA Insur- ance Platform (new core IT system) over the course of four meetings. The Digital Transformation Committee held four meetings in 2021 in which it dealt with the digitalisation of core process- es, the reduction in complexities in the product portfolio and the consolidation of digital work processes related to custom- ers and employees. The chairs of the respective committees informed the full Supervisory Board about the meetings and their commit- tees’ work. For information concerning the activities of the Supervisory Board and its committees, please also refer to the details in the Report of the Supervisory Board. As the shareholder representatives are composed of the same individuals, the Supervisory Board of UNIQA Insur- ance Group AG meets in a joint session with the Supervisory Board of UNIQA Österreich Versicherungen AG. Independence of the Supervisory Board All members of the Supervisory Board elected during the An- nual General Meeting have declared their independence un- der Rule 53 of the Austrian Code of Corporate Governance. Both Anna Maria D’Hulster and Jutta Kath also fulfil the criteria of Rule 54 of the Austrian Code of Corporate Govern- ance, as they are not shareholders with a stake of more than 10 per cent and they equally do not represent the interests of this group. A Supervisory Board member is considered independent if he or she is not in any business or personal relationship with the company or its Management Board that represents a ma- terial conflict of interest and is therefore capable of influenc- ing the behaviour of the member concerned. UNIQA has established the following additional criteria for determining the independence of a Supervisory Board member: Group Report 2021 12 • The Supervisory Board member should not have been a member of the Management Board or a senior executive of the company or a subsidiary of the company in the past five years. • The Supervisory Board member should not maintain or have maintained within the last year any business relation- ship with the company or a subsidiary of the company that is material for the Supervisory Board member concerned. This also applies to business relationships with companies in which the Supervisory Board member has a significant economic interest, but does not apply to functions per- formed on decision-making bodies in the Group. • The Supervisory Board member must not have been an au- ditor of the company or a shareholder or salaried employee of the auditing company within the last three years. • The Supervisory Board member should not be a member of the Management Board of another company in which a Management Board member of the company is a member of the other company’s Supervisory Board unless one of the companies is a member of the other company’s group or holds an investment in the other company. • The Supervisory Board member should not be a member of the Supervisory Board for longer than 15 years. This does not apply to Supervisory Board members who are share- holders with a business investment or who are representing the interests of such a shareholder. • The Supervisory Board member should not be a close family relative (direct descendant, spouse, life partner, parent, un- cle, aunt, sibling, niece or nephew) of a Management Board member or of persons who are in one of the positions de- scribed in the above points. Measures to promote women on the Management Board, the Supervisory Board and in executive positions Our employees are just as diverse as our customers. Togeth- er, we form a community in which we value and respect each other, regardless of gender, age, origin, physical ability, sex- ual orientation, religion, world view or other characteristics. The decision to promote diversity and inclusion at UNIQA is the decision to live “customer first”. UNIQA is convinced that a high degree of diversity can en- hance its success on a sustainable basis. This is also con- firmed by numerous studies. In addition to better financial results, greater satisfaction among customers and employees and higher innovation potential, diversity has a particular effect on increased resilience, risk awareness and flexibility and is thus a decisive success factor in times of pandemics. With Marie-Valerie Brunner, Anna Maria D’Hulster and Jutta Kath, three women have been elected to join the Superviso- ry Board of UNIQA Insurance Group AG. The proportion of female Supervisory Board members among the elected mem- bers (shareholder representatives) therefore amounts to the legally required 30 per cent. With Sabine Andre and Irene Scheiber, two women have been delegated to the group of employee representatives on the Supervisory Board, which means that there is a ratio of 40 per cent female members in the group of employee representatives. In relation to the full Supervisory Board, the legal quota of women is also exceed- ed with a share of 33 per cent. There is no woman among the nine members of the Man- agement Boards of UNIQA Insurance Group AG and UNIQA Österreich Versicherungen AG, which are composed of the same individuals. As this does not reflect UNIQA’s convic- tion, the UNIQA Group is implementing various accompany- ing measures in addition to the clear commitment to “more women in management positions”. The objective is to change the framework conditions and prerequisites in such a way that the organisation becomes more permeable for women's careers. At 57.3 per cent(2020: 56.3 per cent), the share of women in the total workforce in the UNIQA Group was again increased by 1 percentage point at the end of 2021. This high proportion is driven primarily by the international insurance companies (62.6 per cent). The proportion of women on the Management Boards in the Group is 28.1 per cent and was significantly increased com- pared to 2020 (23.1 per cent). This was thanks to the fact that, despite a reduction in the overall number of Manage- ment Board positions due to the integration of the former AXA companies, the number of women slightly increased in the international companies. Of a total of 494 managers in Austria, 165 are women, which corresponds to a share of 33 per cent and is 2 percentage points above the level of the previous year. In the UNIQA Group’s international companies outside Austria, 484 of a to- tal of 991 managers are currently women. The figure thus re- mained almost constant at just under 49 per cent. In the en- tire UNIQA Group, the average number of female managers is thus 43.7 per cent (649 of a total of 1,485 persons) which is clearly above the level of the previous year (39.4 per cent). 13 Corporate governance Corporate Governance Report Diversity concept Following the formal appointment of a Diversity and Inclu- sion Officer in 2020, the Diversity and Inclusion Committee has now been set up. Under the auspices of two Management Board members, the committee has set itself the task of im- proving the way diversity and inclusion are embedded in all areas and processes of the company and ensuring consisten- cy with our strategy. To establish the legal foundations more firmly, training sessions were held on equal treatment law in the workplace. The well-known focal points remain unchanged: 1. Women in management – more women in management positions 2. Compensation fairness – equal pay for work of equal value 3. Generation management – old and young together contribute to the success of the company 4. People with disabilities – integrate, promote and offer positions where they can use their strengths 5. Achieving a work/life balance 6. Internationality and background – using internationality and cultural diversity as a strength 7. Sexual orientation – all sexual orientations and identities are respected In April 2021, a workshop was held with all members of the Supervisory Board and the Management Board on this topic. The focus here was on gender diversity. UNIQA sees measurability as an essential criterion for the successful implementation of any strategy. Therefore, an in- clusion index was created as part of the regular employee survey. Combining certain questions, it indicates how well the company succeeds in creating a working environment in which appreciation, equal opportunities, fairness and be- longing can be experienced by very diverse people at UNIQA. In 2021, this index was surveyed for the first time and now serves as an important assessment of diversity and inclusion from the employees’ point of view. Women in management The objective here in 2021 was to determine the status quo by means of a well-founded analysis of the current situation and to find approaches for effective measures. This was suc- cessfully implemented in the context of the indexing for the Women’s Career Index. One of the most important results was the development of recruitment guidelines. These are intended to promote diversity in all teams and at all manage- ment levels, ensure equal opportunities for all employees and guarantee an objective and transparent selection process for managers. In addition, the UNIQA mentoring programme was launched to support talented employees in their personal and profes- sional development. Mentoring makes it possible to share professional and strategic (experience-based) knowledge, expand your network and optimise skills. This makes it an effective measure for increasing career opportunities in the company. We see mentoring as enrichment for all partici- pants – both mentees and mentors. In November, the first cohort was able to start as part of a pilot project. The successful cooperation initiatives with Female Founders and Business Riots were continued in 2021. Thus, UNIQA is offering frequent and attractive opportunities for personal development. Improving work-life balance plays a clear role in equal op- portunities. In order to demonstrate our open attitude to this topic to the outside world and to receive ideas for ongoing improvements, UNIQA became a member of the “Companies for Families” network in 2021. Based on the experiences with remote work during the Covid-19 crisis, models were devel- oped to give employees the opportunity to continue to work from home in future in a suitable manner. Compensation fairness One of our objectives is “equal pay for work of equal value”. This results in the obligation to fulfil all legal requirements regarding equal pay. To support fairer pay, UNIQA in Austria has collected and analysed data on equal pay and applies best practices to eliminate bias in pay decisions. An impor- tant prerequisite for establishing comparability between the different roles was the implementation of grading. This was also done in 2021. As it also provides information on the gen- der distribution in higher-ranking functions, it provides an- other important starting point for targeted measures. Generation management The increasing shortage of skilled workers, which will inten- sify in the coming years due to demographic developments, was identified as a major challenge for the future. In 2022, the proportion of the working-age population in Austria will decline for the first time. Here, too, UNIQA is taking action at different points. From the newly founded generation net- work, which surveys the needs and expectations of differ- ent age groups, to an Austria-wide apprenticeship concept, which aims to increase the training of the company’s own skilled workers. Group Report 2021 14 People with disabilities DisAbility Performance Check, launched in the fourth quar- ter of 2020, was completed in 2021. This provided a detailed analysis of the situation of people with disabilities at UNIQA. Based on the results of this analysis, a strategy for the grad- ual expansion of inclusion was developed. The measures already implemented include the reducing barriers on the website as well as a communication focus around the Day of People with Disabilities or raising targeted awareness among employees. This was the start of an ongoing process that will be continued in 2022 by establishing a network for inclusion and offering job shadowing for students with disabilities. Recent involvement in myAbility events (myAbility Lounge in October and Disability Comfort Day in November 2021) underscore UNIQA’s commitment to people with disabilities. Commitment against exclusion We also reaffirmed our fundamental rejection of all forms of exclusion and discrimination in 2021 in many different ways. UNIQA celebrated International Women’s Day as well as Pride Month, during which a network for members and supporters of the LGBTQIA+ community was founded. The UNIQA Tower was used as a prominent ambassador along the Danube Canal with an impressive rainbow display. “Orange the World” as a clear statement to protest violence against women and #purplelightup to champion a barrier-free econo- my also made the Tower shine in the corresponding colours. Our joining the Charter of Diversity of the Austrian Federal Economic Chamber is another expression of our stance. Remuneration Report The Remuneration Report is prepared by the Management Board and the Supervisory Board of UNIQA Insurance Group AG in accordance with Section 78c of the Austrian Stock Corporation Act and will be submitted to a vote at the Annu- al General Meeting on 23 May 2022. Risk report, directors’ dealings A comprehensive risk report (Rules 69 and 70 of the Austri- an Code of Corporate Governance) is included in the notes to the consolidated financial statements. The notifications concerning directors’ dealings in the year under review (Rule 73 of the Austrian Code of Corporate Governance) can be found in the Investor Relations section of the Group website at www.uniqagroup.com. External evaluation Implementation of, and compliance with, the individual rules in the Austrian Code of Corporate Governance were evaluat- ed by PwC Wirtschaftsprüfung GmbH for the 2021 financial year – with the exception of Rules 77 to 83. Rules 77 to 83 of the Austrian Code of Corporate Governance are evaluated by the law firm Schönherr Rechtsanwälte GmbH. The evaluation is carried out based mainly on the questionnaire, published by the Austrian Working Group for Corporate Governance, for the evaluation of compliance with the Code. The evaluation by PwC Wirtschaftsprüfung GmbH and Schönherr Rechtsanwälte GmbH confirming that UNIQA complied with the rules of the Austrian Code of Corporate Governance in 2021 – to the extent that these rules were covered by UNIQA’s declaration of conformity – will be published simultaneously with the annual financial report for the 2021 financial year. One rule was not applicable to UNIQA in the evaluation period. Vienna, 9 March 2022 Andreas Brandstetter, Chairman of the Management Board Peter Eichler Member of the Management Board Wolf-Christoph Gerlach Member of the Management Board Peter Humer Member of the Management Board Wolfgang Kindl Member of the Management Board René Knapp Member of the Management Board Erik Leyers Member of the Management Board Klaus Pekarek Member of the Management Board Kurt Svoboda Member of the Management Board 15 Corporate governance Corporate Governance Report Report of the Supervisory Board Dear shareholders, ladies and gentlemen, After the difficult transformation year 2020, it was particu- larly important for the Supervisory Board 2021 to support the Management Board as best as possible in the first year of our new strategy programme “UNIQA 3.0 - Seeding the Future” and to accompany it closely in our function as a su- pervisory body. In order to give you a good overview of the work of the Supervisory Board in this economically success- ful year, I am dividing my report – similar to last year – into three parts: 1. What was particularly important to us in 2021 The focus of our meetings was clearly on the implementation of our new strategy programme. We did not focus solely on the key financial figures, but looked intensively at the un- derlying projects and work programmes. Very soon it was gratifyingly apparent that we were not only making progress in the development of the existing core business, but that the expected contribution to earnings from the integration of the AXA companies in Poland, the Czech Republic and Slovakia was also materialising as planned. The operational functioning of our Supervisory Board and its committees remained flexible, in line with the legal meas- ures around Covid-19 that are currently in force: some of our meetings took place physically, with many more taking place virtually. As the Supervisory Board of the listed UNIQA In- surance Group AG is also the Supervisory Board of UNIQA Österreich Versicherungen AG, the range of topics is natural- ly very wide, from purely strategic ones to those that are par- ticularly customer- and business-related. This represents an exciting challenge for our Supervisory Board, requiring pre- cise preparation of the meetings and – especially with digital meeting formats – particularly disciplined time management, as our meetings lasted around six hours on average in the 2021 financial year. The decision to hold the Annual General Meeting virtually once again was particularly difficult for us – following the capital increase in October 2013, the “Re- IPO”, active and timely capital market communication and therefore personal discussions with you as our shareholders are a key concern of the Management Board and Supervisory Board. There is no doubt that this would work better at a physical meeting rather than virtually. Reflections on the quality of our cooperation within the Su- pervisory Board and with the Management Board have be- come much more important. We therefore appointed Werner H. Hoffmann, Director of the Institute for Strategic Manage- ment at the Vienna University of Economics and Business, to provide us with professional support with the structured op- timisation of cooperation within the Supervisory Board and to work with us in developing proposals for improvement. It is important for us to constantly put the quality of our working methods to the test and consistently develop them further, especially in fast-moving and volatile times. 2. Timeline and details of our main areas of focus In the course of 2021, the Supervisory Board was regular- ly informed by the Management Board about the business performance and position of UNIQA Insurance Group AG and the Group as a whole. It also supervised the Manage- ment Board’s management of the business and fulfilled all the tasks assigned to the Supervisory Board by law and the Articles of Association. At the Supervisory Board meetings, the Management Board presented detailed quarterly reports and provided additional oral as well as written reports. The Supervisory Board was given timely and comprehensive in- formation about measures requiring our approval. Four informational events or special seminars on the topics of diversity, IFRS 9 and IFRS 17, IT security, risk manage- ment and compliance were held for the Supervisory Board in 2021. An informational event on agile transformation was held for the IT Committee. Group Report 2021 16 Focus of our deliberations The Supervisory Board held five meetings in 2021. Our meet- ings focused on the respective earnings situation within our Group and its further strategic development. We also made one decision by way of circular resolution. • At our meeting held on 17 February, we mainly discussed the Group’s preliminary results for the 2020 financial year. In addition, a resolution was passed to amend the rules of procedure for the Management Board and the Supervisory Board (increase in the amount limits for the Supervisory Board’s approval requirement) and rules of procedure were adopted for all committees appointed from now on. • The Supervisory Board meeting on 7 April focused on the audit of the annual financial statements and consolidated financial statements for the year ended 31 December 2020 and on the reports from the Management Board with up- to-date information on the performance of the Group in the first quarter of 2021. We also discussed the agenda for the 22nd Annual General Meeting held on 31 May 2021, in par- ticular the proposed appropriation of profits and the propos- al to the Annual General Meeting to elect PwC Wirtschaft- sprüfung GmbH as statutory auditors for the 2022 financial year. The report by auditors PwC Wirtschaftsprüfung GmbH and lawyers Schönherr Rechtsanwälte GmbH regard- ing compliance with the provisions of the Austrian Code of Corporate Governance (ÖCGK) in the 2020 financial year was also acknowledged. • At the meeting on 19 May, we looked in detail at the Group’s earnings in the first quarter of 2021 and development in the current ongoing second quarter of 2021. Furthermore, the results of the “Board Excellence” programme to evaluate and further develop the efficiency and effectiveness of the Supervisory Board, which was carried out with the support of Werner H. Hoffmann, Director of the Institute for Strate- gic Management at the Vienna University of Economics and Business, were presented and discussed. • On 18 August, we discussed the Group’s earnings in the first half of 2021 and developments in the third quarter of 2021. The Supervisory Board was informed by the Management Board of the need for investments in the infrastructure of the Confraternität and Goldenes Kreuz private hospitals in Vienna. The Management Board was asked to give further consideration to this issue in view of these needs. • In addition to reporting on the Group’s profits in the first three quarters of 2021 and ongoing developments in the fourth quarter of 2021, our meeting on 17 November also covered the updated forecast for the 2021 financial year. The 2022 budget and medium-term planning up to 2026 presented by the Management Board were adopted by the Supervisory Board. An investment project for the new con- struction and merger of the Confraternität and Goldenes Kreuz private hospitals at the Confraternität private hospi- tal site in Vienna was approved by the Supervisory Board. Finally, we looked at the efficiency of our activities. • On 25 November, we passed a circular resolution for the partial buy-back of the 2023 and 2026 Tier 2 issues valued at up to €375 million and approved the issuance of a new subordinated Tier 2 bond (“Green Bond”) at the same nom- inal amount. 17 Corporate governance Corporate Governance Report Committees of the Supervisory Board In addition to the Audit Committee required by law, we have set up a further five committees in order to ensure that the work of our Supervisory Board is structured effectively. • The work of the Executive Committee of the Supervisory Board, which consists of the same individuals as the Com- mittee for Board Affairs and the Nominating and Remu- neration Committee for the Management Board, was also of particular significance in 2021. The Committee dealt intensively with the progress of the UNIQA 3.0 strategic programme as well as the remuneration strategy of the ex- tended Management Board and succession planning in sev- eral meetings. • The Audit Committee held three meetings in the 2021 fi- nancial year in the presence of the (Group) auditor, with whom discussions also took place without the presence of the Management Board. The meeting on 7 April discussed all financial statement documents, the proposed appropria- tion of profit and the report on the audit of the company’s risk management. In addition, the 2020 annual report of the Internal Audit department, including the audit plan for the current year and the 2020 annual activity report of the compliance officers, was presented and acknowledged. At the meeting held on 19 May, the statutory auditor presented the planning for the audit of the 2021 financial statements prepared by the companies in the UNIQA Group and co- ordinated this planning and strategy with the Committee. At the meeting held on 17 November, the statutory auditor informed the Committee about the findings from its prelim- inary audits. A public tender was launched for the audit of the financial statements for the 2023 financial year. The committee also looked at the company’s accounting pro- cess on the basis of specific case studies. In addition, the Committee received quarterly reports from Internal Audit on the areas audited by this department and any material findings that arose from these audits, and the Compliance Officer reported on her activities on an ongoing basis. • The Investment Committee held four meetings during which the members discussed the capital investment strategy, questions concerning capital structure and the focus of risk management and asset liability management. • The IT Committee dealt with the ongoing monitoring of the progress of the project implementing the UNIQA Insurance Platform over the course of four meetings. In agreement with the full Supervisory Board, the Committee’s scope of duties was expanded to include the auditing and monitoring of all IT projects due to the connection with the UNIQA Insurance Platform. • The Digital Transformation Committee held four meetings dedicated to the digitalisation of core processes, the reduc- tion of complexities in the product portfolio and the consol- idation of digital working processes related to customers and employees. • The Working Committee did not hold any meetings in the past financial year. A decision was taken by way of circular resolution to sell a property. The various chairs of the committees then informed the members of the Supervisory Board in detail about the meet- ings and their committee’s work. Group Report 2021 18 3. Separate and consolidated financial statements The separate financial statements prepared by the Management Board, the Management Report of UNIQA Insurance Group AG, the consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRSs) and the Group Management Report for 2021 were audited by PwC Wirtschaftsprüfung GmbH. The statutory auditor also verified that a separate consolidated non-financial report and a consol- idated corporate governance report had each been prepared for the 2021 financial year. The audit raised no objections. The sep- arate and consolidated financial statements were each awarded an unqualified audit opinion for 2021. The Supervisory Board acknowledged and approved the find- ings of the audit. The evaluation of UNIQA’s compliance with the rules of the Austrian Code of Corporate Governance in the 2021 finan- cial year was carried out by PwC Wirtschaftsprüfung GmbH, whereas compliance with Rules 77 to 83 of the Austrian Code of Corporate Governance was assessed by Schönherr Re- chtsanwälte GmbH. The assessments found that UNIQA had complied with the rules of the Austrian Code of Corporate Governance in the 2021 financial year – to the extent that they were included in UNIQA’s declaration of conformity. The Supervisory Board acknowledged the consolidated fi- nancial statements for 2021 and approved the 2021 annual financial statements of UNIQA Insurance Group AG. It also endorsed both the Management Report and the Group Man- agement Report. The 2021 annual financial statements were thereby adopted in accordance with Section 96(4) of the Aus- trian Stock Corporation Act. The Supervisory Board reviewed and approved the proposal for the appropriation of profit submitted by the Management Board. Accordingly, a dividend distribution of €0.55 per share will be proposed to the Annual General Meeting on 23 May 2022. Once again this year on behalf of the entire Supervisory Board, I would like to thank all employees of UNIQA Insur- ance Group AG and its Group companies for their major per- sonal commitment in the 2021 financial year and wish them every continued success. Vienna, April 2022 On behalf of the Supervisory Board Walter Rothensteiner Chairman of the Supervisory Board 19 Corporate governance Corporate Governance Report 20 About this report This report was prepared in accordance with the Austrian Sustainability and Diversity Improvement Act (NaDiVeG) (Directive 2014/95/EU) and covers those sustainability con- cerns that also reflect our material sustainability issues. The concepts described in this report correspond to the content of the 2021 Sustainability Report, which was pre- pared in accordance with the “Core option” of the Global Reporting Initiative (GRI) standards. The report will be published together with the Group Report on 8 April 2022. This non-financial report, which forms part of our 2021 Group Report, covers the 2021 financial year and, thus, the period running from 1 January 2021 to 31 December 2021. Where appropriate to do so, we compare our progress with the targets communicated the previous year and give an insight into our targets for next year. Since UNIQA Insurance Group AG (headquartered in Vien- na) does not directly operate the insurance business either domestically or abroad, measures to address environmental, social and employee concerns along with observing human rights, anti-corruption and bribery issues are conceived on a Group level and subsequently implemented in the operating Group companies. Accordingly, as regards the separate fi- nancial statements, no other modified or restricted concept is being pursued in any other way. The present report there- fore constitutes the separate summarised non-financial report of UNIQA Insurance Group AG in accordance with Section 267a of the Austrian Commercial Code. As has been the case in previous year, Pricewaterhouse- Coopers GmbH Wirtschaftsprüfungsgesellschaft has once again been commissioned to undertake the limited assur- ance audit in 2021. Further details on the audit outcomes can be found in the audit opinion for the non-financial reporting. References to sources outside of the Group Report are made exclusively to the 2021 Sustainability Re- port, which is also subject to a limited assurance audit. Company description The UNIQA Group is one of the leading insurance groups in its two core markets of Austria and Central and Eastern Eu- rope (CEE). We offer our customers property and casualty insurance as well as life and health insurance products. As a financial services provider, our aim is to consider sustain- ability-related risks and take opportunities arising from ESG trends (ESG – Environment, Social, Governance). The following part illustrates our management approach. Fur- ther information on our business model can be found in the “Strategy” section of the Group Report. Sustainability strategy and ESG integration We engage carefully with those framework conditions that we consider conducive to ensuring a better life. To do this, we enter into dialogue with stakeholders, experts and the public, share our own approaches and play an active role. Sustainability is therefore a key part of how we act. Thanks to our clear position on this matter, we can encourage un- derstanding and support from all our stakeholders, namely employees, customers, investors and the public. Our sustainability strategy is set up in an holistic way. It ties our economic ambitions to a clear environmental and social commitment to protecting the environment and social responsibility. Materiality concept UNIQA’s success is built on the fact that we understand how the world is changing and how we need to be able to respond to this. We therefore conducted a new materiality analysis in the summer of 2021, which we used to identify ESG topics that are perceived by our stakeholders and our business to be the most important. We also conducted a new stakeholder identification process, including the associat- ed weighting. We defined four stakeholder groups in total who are directly affected by our business activities, namely customers, employees, investors and the public. Non-financial report 21 Non-Financial Report NON-FINANCIAL REPORTNON-FINANCIAL REPORT The materiality analysis forms the basis for our sustaina- bility approach, sustainability strategy and our reporting. The four most important material topics from a stakeholder perspective in 2021 were cyberrisk, digital service and cus- tomer focus, advice and prevention for natural disasters as well as training and education of employees. The four most important topics from UNIQA’s perspective were employee health and safety, engagement for climate change, engagement for the environment as well as diversi- ty and equal opportunity. More in-depth information on the process and the results from the materiality analysis can be found in the 2021 Sus- tainability Report. Sustainability strategy Our sustainability strategy was approved in October 2020 and is based on five pillars: An investment policy aligned with ESG criteria A product policy that deals with the concept of ESG and, in doing so, creates additional benefits Exemplary own operational management Transparent reporting Recognition and joint pursuit of social targets in stake- holder management Our fundamental objective in 2021 was to put this sustaina- bility strategy into operation and embed it within the com- pany by using milestone schedules. Our operational focus is on pillars 1 to 3, supported by transparent disclosure (pillar 4) and engagement of our stakeholders (pillar5). ESG integration within UNIQA Our key body for sustainability agendas is the Group ESG Committee, which was formed in 2021. It consists of members of the Management Board of UNIQA Insur- ance Group AG and heads of key departments, meets on a quarterly basis and provides the Management Board with recommendations to help them make decisions on ESG topics. The Committee is responsible for integrating and enhancing ESG aspects in insurance, investment and asset management activities, along with the strategic definition and continuous development of ESG-related ambitions for the entire UNIQA Group. Its tasks also include drafting and introducing appropriate guidelines. Other responsibilities include supervising the implementa- tion of the Group-wide climate strategy and environmental management, as well as supporting implementation of the strategic measures and projects in the subsidiaries. The Group ESG Office at UNIQA is part of the Sustain- ability, Ethics and Public Affairs division, which was newly created in early 2020. It is responsible for operationally managing the integration of environment, social and gov- ernance aspects (ESG) into the core business segments of the UNIQA Group. Proposals regarding ESG integration within the company are drawn up and discussed within ESG working groups, which bring together ESG specialists and/ or representatives of various operational units and depart- ments. Sustainability risks With a strong risk and sustainability culture, UNIQA has set the stage to ensure our business can be successful and profitable in the long term. In accordance with the latest amendment to the delegated act of the Solvency II Directive (2009/138/EC) in April 2021, sustainability risks must be taken into account in the risk management system. Our ob- jective is to develop an appropriate and consistent approach to considering sustainability risks, apply this approach at all times and ensure it is updated regularly. With this in mind, we analyse climate-related risks and opportunities as part of our risk management (when conducting our internal as- sessment of the risk and financial situation). With regard to climate risks, the risks particularly relevant to UNIQA are those resulting from increasing weather extremes, which raise the loss ratio and also amplify default risks. The results from the sustainability risk identification and assessment process are intended to help support management decisions as part of UNIQA’s product design or investment strategy. Against this backdrop, in 2021 the Group Risk Management 22 team conducted an impact and GAP analysis of current and future regulatory requirements, industry guidelines and market best practices. ESG was identified as a key focal point within the framework of the overall risk cycle (risk identification, risk assessment, limit setting, controlling and reporting), the design of climate risk scenarios and the integration of ESG into UNIQA’s risk models. The develop- ment of ESG indicators within the investment and portfolio management process was also regarded as essential. Areas for improvement in conjunction with sustainability risks were identified, with a roadmap drawn up to safeguard their implementation. In order to adequately deal with climate risks, we also set up the NatCAT Competence Centre (NCCC), which allows us to observe and monitor emerging social and environmental risks. The Group’s risk exposure and changes to said expo- sure, accumulations and annual expected losses, as well as the reinsurance cover required to protect the Group from major natural disasters, are all assessed in the NCCC. In our assessment, we use the very latest modelling techniques based on stochastic models that cover hundreds of thou- sands of hail, storm, flood and earthquake events. These models have either been procured from external providers or developed internally by the NCCC R&D team. Their out- comes form the basis of our Group-wide risk management for natural disasters. These models are also used to calculate annual stress scenarios in order to test out the robustness of our underwriting and reinsurance coverage. The threat aris- ing from the models can be visualised in maps that are fed into the Corporate Business Navigator (CBN), a risk review and assessment tool that is used by Group underwriters and risk engineers. Sustainability risks are not currently dealt with as a sepa- rate risk category, but are instead taken into account within ten existing risk categories. During the course of the 2021 reporting year, no material reportable ESG risks were iden- tified that were related to our business activities, commer- cial relationships, products or services, or that might have a severe negative impact on material non- financialconcerns. Environmental matters This section describes the influence of environmental mat- ters on our business activities along with the impacts of our business activities on the environment. It explains both the concepts and measures in place as well as specific targets and impacts. The following topics in particular are of material impor- tance in terms of environmental matters: engagement for climate change, engagement for European climate tar- gets, advice on and prevention of natural disasters. We are tackling these challenges by supporting the transition to a low-carbon economy via our capital investments and our insurance products. It is also our aim to structure our own operational management in an exemplary fashion, taking into account our environmental and social targets. UNIQA climate strategy As an insurer, UNIQA remains exposed to the impact of climate change. The UNIQA climate strategy therefore forms part of our sustainability strategy. In order to counter the risks of climate change, we believe it is important to make protecting the environment part of our core business and structure our targets in line with the 1.5 degrees Celsius target set under the Paris Agreement. To do this, we are focused on three key areas, namely investment, underwrit- ing and our own operational management. The concepts in relation to this are illustrated below. Environmental matters in investment UNIQA is committed to implementing responsible and sustainable management of capital investments. We believe that a sustainable investment strategy can bring about financial success in the long term and is a positive addition to the traditional investment objectives of returns, security and liquidity. Assessing environmental and social impacts on our invest- ments on an ongoing basis Assessing the impact that companies and countries in which we have invested have on the environment and living conditions for communities Establishing new ESG databases in order to ensure continuous integration of the latest assessments into our investment decision Integrating indirect carbon emissions from our invest- ments into our management process 23 Non-Financial Report NON-FINANCIAL REPORT Introducing a 1.5 degrees Celsius climate target trajectory, based on scientific data, to reduce carbon emissions in line with the Paris Agreement By voluntarily signing up to the UN Principles for Respon- sible Investment (PRIs) and collaborating with all of its signatories, we are taking crucial steps to achieve this ambitious long-term target. At the same time, the PRIs also provide the framework for our Group-wide UNIQA Respon- sible Investments Guideline. This guideline governs our capital investment management, including binding exclu- sion criteria. The guideline was revised and updated in 2021. We also acceded to the Net-Zero Asset Owner Alliance in 2021, whose principles represent an additional framework for our investment strategy and our reporting guidelines. It is on this basis that we are now drafting a climate trajectory in order to bring our investment closer to the climate target of 1.5 degrees Celsius set under the Paris Agreement and to achieve the goal of climate neutrality by 2040 for Austria, and 2050 for our international subsidiaries. A joint com- mitment by businesses and legislators to implement the required measures as well as strong coordination with the other members will help contribute to this. In 2021, we also concluded a contract with ISS (Institution- al Shareholder Services) in order to be able to better exam- ine our investment portfolio with regard to ESG criteria. As- sessments are undertaken for individual issuers (companies or countries) rather than specific asset classes. This means we can now also analyse individual aspects of ESG risks as well as climate data and climate risks for listed assets. We continue to regard thermal coal as a red line criterion in our investment. We had already sold all of our investments in coal-based companies by the end of 2019. However, the integration of the former AXA companies in Poland, the Czech Republic and Slovakia has once again introduced to our portfolio a number of individual investments in com- panies with coal exposure. We are nevertheless determined to reduce these positions as soon as possible as part of our decarbonisation strategy. During the period under review, we have been working intensively on dealing with the entry into force of the new EU Sustainable Finance Disclosure Regulation (SFDR) in March 2021 and its classification and reporting require- ments. An initial report on the two environmental aspects covered under EU Taxonomy classification is published in the section entitled “Disclosures according to the EU Tax- onomy Regulation”. We have also switched our four managed unit-linked UNIQA Portfolio I to IV funds of funds to Article 8 prod- ucts as of 1 January 2022 and restructured the investment process. Targets and target achievement: Investments Topic Target achievement in 2021 Targets for 2022 ESG integration in our invest- ment portfolio Whilst our ESG targets are defined for the average of all of our financial investments, we need to analyse the ESG data for each individual asset in order to improve the level of quality based on the individual assets. We have already started work on this in 2021. In the years to come, we will get to work on developing a suitable climate target trajectory in line with the 1.5 degrees Celsius target set under the Paris Agreement. We aim to achieve climate neutrality by 2040 in Austria, and by 2050 in our other international subsidiaries. Our memberships will help us and pave the way to achieve this. Sustainable investments The overriding target for 2025 was to build up a volume of €1 billion worth of sustainable investments (green and sustaina- ble bonds, infrastructure loans that will have a positive impact on implementing SDGs and ESG equity funds). We have al- ready managed to achieve this target in 2021. The issue of an additional green bond totalling €375 million in volume back in December 2021 will help to support the further develop- ment of our sustainable investments in the years to come. Further expansion of volume of green assets and implementation of the revised Responsible Investment@UNIQA guideline. NON-FINANCIAL REPORT 24 Environmental matters in underwriting in the Retail segment As Austria’s largest health insurer, we bear equal respon- sibility for protecting the personal living standards of our customers and the value added processes of our company. Risk prevention and mitigation are key areas in which environmental and social impacts increasingly need to be incorporated into the advising approach. Sustainability aspects are therefore being taken into account in the under- writing process as well as products and services within our insurance business. In addition to our existing portfolio, we are also focused on providing more environmentally friendly investment opportunities, including in particular more sustainable products (unit-linked insurance products) and even pure “green” products. A key basis for this sustainable optimisa- tion is the switch from UNIQA Portfolio I to IV to products under Article 8 of the EU Taxonomy Regulation, with effect from 1 January 2022. Investments can only be made in sub-funds in accordance with Article 8 and 9 (investment funds and ETFs). Article 8 funds consider environmental as well as social characteristics and invest in companies that Environmental matters in underwriting in the Corporate and Affinity segment We also want to offer our corporate customers tailor- made products and services with added value in terms of sustain- ability. The drafting of a long-term strategy to implement measures to combat climate change was the top priority here in 2021. Examples of this include advice on and servic- es regarding natural disasters, restoration work following a loss (post-loss consultancy) or preventive measures to combat business interruptions caused by natural disasters. Since 2019, we have not completed any new customer busi- ness with companies with a direct or indirect carbon share of more than 30 per cent. In addition, we have not com- pleted any new customer business with mining companies that produce more than 20 million tonnes of coal a year. Subject to certain conditions in place, UNIQA is on hand to provide positive accompanying support to existing custom- ers from the coal industry in helping them to transform their business models by 2025 at the very least. This also demonstrate good corporate governance. Article 9 funds also aim to achieve a sustainable investment objective and help implement the United Nations’ Sustainable Develop- ment Goals. One of our other targets is to gradually expand our range of insurance products that satisfy environmental and climate-related criteria so as to promote a sustainable lifestyle and sustainable corporate governance on a broad basis. To do this, in 2021 we collected data on our customer segments and their sustainability profiles by way of market surveys and incorporated the results into the planning for product development. We also rely on improving the quality of advice on resource efficiency and reducing emissions as well as sustainable additional insurance modules. With our repair insurance, which can be taken out as a supplemen- tary product module as part of our homeowner insurance policy, we provide cover for our customers for the repair costs of household and domestic appliances at their current value, for example. With regard to our motor vehicle liabil- ity insurance, we also offer a 25 per cent reduction on the premium when you insure an electric car. applies to companies that generate electricity from differ- ent sources, including in particular renewable energy from solar and wind farms, but also generate electricity from thermal plants. However, this action requires the devel- opment and implementation of a credible transformation plan and alignment with defined sustainability criteria. The insurance policies for existing customers who fail to provide evidence of their decarbonisation process as requested will not be extended from 2026 onwards. Another focal point of our decarbonisation strategy is providing suitable solutions in the field of renewable energy, both for new as well as existing customers. In order to consistently pursue our ambitions to this effect, we voluntarily agreed to ensure compliance with the Prin- ciples for Sustainable Insurance (PSIs) at the end of 2020. These principles were developed by the United Nations’ Environment Programme Finance Initiative (UNEP FI). By signing up to these principles, we under take to consider ESG aspects (Environment, Social, Governance) along the Targets and target achievement: Environmental matters in underwriting in the Retail segment Topic Target achievement in 2021 Targets for 2022 Sustainability profiles Completion of preparatory measures to determine sustain- ability profiles and integration of results into the product planning process. Continuation of market insights into environmental matters and ongoing integration into new products 25 Non-Financial Report NON-FINANCIAL REPORT entire value added chain. In other words, we undertake to involve all of our stakeholders in issues surrounding the en- vironment, social responsibility and corporate governance. Environmental matters in operational management UNIQA is committed to having exemplary operational management in place. This commitment is a key focal point in our sustainability strategy. Our overriding objective is to continue reducing our envi- ronmental footprint and be CO2 neutral by 2040 in Austria, and by 2050 in our other international subsidiaries. We therefore ensure international certifications and stand- ards are applied, both with regard to our suppliers as well as within our own operational management. We rely on improving energy efficiency, using more renewable energy, reducing CO2 emissions, systematically conserving resourc- es and promoting environmentally friendly mobility. Here in Austria, we have also had an energy monitoring system in place since 2018. This system allows us to be able to illus- trate our sustainability initiatives and the progress achieved as a result transparently and on a comparative basis. In order to support the existing energy monitoring system and intensify efforts around it, a target was set in early 2022 to introduce an environmental management system certified to EMAS standards by no later than 2025. Environmental matters in our operational management fall within the remit of the Chief Operating Officer and are the responsibility of the Group Procurement department. The initial focus here is on our largest core market in Austria. We pursue specific CO2 reduction targets in the following five areas in particular: Installation of photovoltaic systems Greening of heating/cooling systems Optimisation of energy monitoring Conversion to LEDs throughout the company Greening of the vehicle fleet Targets and target achievement: Environmental matters in underwriting in the Corporate and Affinity segment Topic Target achievement in 2021 Targets for 2022 Decarbonisation In 2021, we started work on undertaking annual assessments and monitoring the existing coal-related portfolio. All of our customers have already been classified according to specific sustainability criteria since 2020. Continuation of assessments and monitoring and transition to a standardised annual process where our underwriters and risk engineers monitor the development of the required sustainability plans for each customer on an annual basis. Targets and target achievement: Environmental matters in operational management Topic Target achievement in 2021 Targets for 2022 Installation of photovoltaic systems We launched our “Photovoltaic Offensive” project in mid- 2020, with the aim of building photovoltaic systems at approximately 20 sales locations by the end of 2022. Twelve photovoltaic systems with generation capacities of between 4 and 36 kWp were already in operation in 2021. The total installed output is approximately 184 kWp. As a result, ap- proximately 190,000 kWh of green energy can be produced each year. Continuation of the “Photovoltaic Offensive” project and con- struction of an additional seven systems with an approximate total output of up to 80 kWp. Greening of the vehicle fleet The ambitious objective of UNIQA’s vehicle fleet management is to reduce the carbon emissions from the fleet of company cars in Austria to 40 g per kilometre by the end of 2024. We have already managed to reduce our carbon emissions to around 87 g per kilometre by the end of 2021. In terms of our overall target to reduce CO 2 , we are continuing to equip our sites with charging infrastructure for e-mobility. Plans are in place for 2022 to install e-charging stations with total output of approximately 530 kW at an additional 13 sites. NON-FINANCIAL REPORT 26 Social matters In this section, we will look at how society-related and social issues affect our business activities and relationships, and vice versa. We will in particular explain the concepts we have in place to deal with social activities and sponsorships, customer focus and innovative services and products as well as data protection. According to our understanding, em- ployee matters are social matters, which is why we have also included them as a subsection and describe our concepts in this regard. Social activities and sponsoring As Austria’s largest health insurer, we focus our social en- gagement on health and education. Our UNIQA 3.0 corpo- rate strategy also describes our view of the world. We use this to work out the key social risks and requirements for how we conduct ourselves. One of our primary focal points is on supporting young or disadvantaged people. UNIQA also places all kinds of emphasis on supporting general in- terest initiatives. Promoting the arts and sports are impor- tant focal points here in all of our markets. This ranges from long-term sponsorship to support for individual projects with which we can identify based on our corporate values. Our accession to the Initiative for Transparent Cooperation (Initiative für transparente Zusammenarbeit) demon- strates we are committed to open dealings with NGOs, associations and sponsorships. By implementing the Code for Transparent Cooperation (Kodex für transparente Zusammenarbeit) as drawn up by the Initiative, our aim is to provide the public with a clear insight into which NGOs we are cooperating with, explain in what way and for what purpose we are involved, and engage in discourse as to how our stakeholders assess our commitment to this. We revised our approach to social matters in 2021. The strategy and implementing guidelines were revised to ensure our sponsorships are ESG-compliant. We undertook this in accordance with the DNSH principle (Do No Signif- icant Harm), whereby any sponsorship in place must fulfil at least one of the ESG criteria. Furthermore, our partners must be able to provide credible evidence of sustainable action or even present their sustainability concept for spon- sorship amounts in excess of a certain figure. By working in close collaboration with UNIQA Privat- stiftung, approximately €1.1 million of funds were made available for social projects in 2021. These funds were invested in projects that are closely linked to our health business segment or enhance the continuity of an existing relationship with UNIQA. Since autumn 2021, there has been a new collaboration in place with Special Olympics Österreich (SOÖ), an organisa- tion that arranges training and sporting events and support for individuals with intellectual disabilities. Thanks to our collaboration with this not-for-profit organisation, UNIQA is on hand to provide support for events and competitions, such as the 2022 Special Olympics Summer Games. Our employees will also have the opportunity to use up their UNIQA volunteer day during the Summer Games and offer their services as corporate volunteers. Further information on our initiatives can be found in the 2021 Sustainability Report under Section 3 “Sustainability in our UNIQA community”. Targets and target achievement: Social matters Topic Target achievement in 2021 Targets for 2022 Sporting and cultural sponsorship strategy In 2021, we revised our sponsorship strategy as a key part of our brand strategy to ensure it is ESG-compliant, so that sporting and cultural sponsorships can now be aligned with this revised strategy. This strategy continues to be implemented. Corporate volunteering activities During the 2021 financial year, UNIQA got involved in social causes by way of donations, corporate volunteering (UNIQA volunteer day) or collaboration and initiatives with UNIQA Privatstiftung. In keeping with our strategy and our implementing guidelines, we will also continue to put measures and initiatives in place and make our contribution to general social matters in 2022. 27 Non-Financial Report NON-FINANCIAL REPORT Targets and target achievement: Customer focus and innovative services and products Topic Target achievement in 2021 Targets for 2022 Product development Our long-term strategic goal is to be reliable partners for our customers as “inspiring coaches” to improve their lives. We fulfil our social responsibility, not only by expand- ing our telemedical services but also by developing the post-COVID-check. We continue to focus our efforts on developing products and services with sustainable social benefits for our customers. We are also focused on expanding our digital services. Customer focus and innovative services and products An insurance company must provide security; our custom- ers expect safeguards appropriate to their life situations, and we can support them in preventing damage and loss as well as with easy customer-friendly communication and rapid processing when there is a claim. In our supporting role, we always think and conduct ourselves from a custom- er perspective. According to our internal sales guideline, clarity and trans- parency play a key role in ensuring customer satisfaction. We are constantly working to ensure our product infor- mation sheets are concise and easy to comprehend, and at the same time fulfil the statutory requirements. Training helps our employees to communicate not only technically correctly but also in a customer-friendly and understanda- ble manner. With our Customer Centricity Index (CCI), we have provid- ed a structured way to make our customers’ voices heard at existing and new customer touchpoints. We therefore have a proven method we can use to align our mission-critical product, sales, claim/benefit and service efforts even more with our customers’ needs. We learn from daily feedback and around 120,000 actively collected customer assess- ments each year and, on this basis, continually improve our processes, services and touchpoints throughout the so-called customer journey. Our digital customer advice measures ensure we are close to our customers without our advisors needing to be physically present. As a result, we are not only increasing efficiency and helping our customers and employees save time, but also reducing emissions as well. We also use customer complaints as an important feedback tool. Our complaint management is made up of two process- es. First of all, we deal with the customer’s concerns prop- erly. Then we attempt to identify and implement potential positive effects from a customer complaint in a consistent way so as to ensure the customer’s experience is a positive one. Developing sustainable products and services combined with social responsibility is very important to us. As part of our homeowner insurance policy, we offer premium-free cover for up to six months in the event of unemployment. We have also made some important developments over the course of the Covid-19 pandemic. As an example, telemedical services have been included under the new private medical insurance cover since June 2021. This will be expanded further in future too. This service helps minimise face-to-face contact, particularly in times of a pandemic, without compromising on health care provision. Following the development of the post-COVID-check in 2021, we now offer our customers and employees suffering from the after-effects of Covid-19 the opportunity to get examined medically and be given some reassurance over their own health. Our offering was also extended to include post-COVID-eCoaching, which we offer working in collab- oration with our partner enlivio. The aim here is to support customers after they have had Covid-19 with some moder- ate training activity and give them the motivation to get fit. NON-FINANCIAL REPORT 28 Data protection Our professional and personal daily lives are hard to im- agine without the constant exchange of data. Data protec- tion has become a fundamental right. In specific terms, it involves protecting personal data and individuals these data relate to from misuse during the collection, process- ing and use of these data. This is governed by the General Data Protection Regulation (GDPR) and national laws in force in Europe. In order to ensure compliance with the stringent data protection requirements in place, UNIQA has established its own data protection organisation (Data Protection Governance) within the company. Its aim is to ensure the protection of personal data by implementing an efficient data protection management system (DPMS) and to safeguard a continuous improvement process based on a risk management system. The Data Protection Officer reports directly to the Man- agement Board, working as the second line of defence to monitor compliance with data protection provisions in the Employee matters This section describes the impacts of our employees on our business activities and relationships, along with the impacts of UNIQA’s business activities and relationships on our employees. The focus here is on our “People and culture” strategy as well as the associated concepts and measures. We have also put measures in place for our employees with the new UNIQA 3.0 strategic programme. Our overriding objective is to become the most attractive employer in the industry by 2024. In specific terms, we want to achieve a minimum of 4.5 stars on a scale of 1 to 5. In order to fulfil company and the first line of defence. The Data Protection Officer does not take any instructions in this role. Meetings between the local Data Protection committees are held on a quarterly basis. A Data Protection Coordinator is appointed in each depart- ment. These individuals act as the first point of contact for any data protection matters within the department and sup- port the data owners in advising on projects and responding to specific questions, for example. In order to provide more efficient support to the first line of defence as well as for project consulting purposes, the Data Protection Opera- tions department was added alongside the existing Data Protection Legal department in 2021. Both units advise on data protection issues and the technical and organisational issues required for this purpose. Furthermore, they provide support with regard to updating the record of processing activities and handling data breaches. They also act as an interface for internal and external customers in relation to queries that require inter-disciplinary data protection expertise (i.e. data protection and data security). this target, a wide range of measures were drawn up in 2021. These measures will be implemented in 2022 and the coming years. We also want to use these measures as the basis for establishing standards for HR management in our international subsidiaries as well. In doing so, this should ensure Group-wide standards in key HR processes across all country organisations, which will help contribute towards an excellent employee experience. Five key action items have been defined in particular for this purpose, namely Employee Experience, Employee Engagement, Learning and Leadership, Digital Skills and Future of Work. The following action items specifically form Targets and target achievement: Data protection Topic Target achievement in 2021 Targets for 2022 Implementation of Data Protection Governance Data protection is an inter-disciplinary issue and requires cross-subject expertise and appropriate interfaces to provide advice. A data protection organisation (Data Protection Gov- ernance) was therefore established within the company and extended in 2021 to include the Data Protection Operations department. Our objective in 2021 was to commence the gradual implementation of the new governance system for data protection at UNIQA. We continued to implement the new governance system for data protection in 2021 and have now completed this work. Expansion of data protection management system In order to be able to fulfil the accountability obligations arising from GDPR and the associated documentation require- ments, there is a continuous need for processes to implement data protection measures in the company. The target set for 2022 is to ensure the protection of personal data by implementing an efficient data protection management system (DPMS) and to safeguard a continuous improvement process based on a risk management system. 29 Non-Financial Report NON-FINANCIAL REPORT part of these Group-wide standards: uniform recruitment process, uniform onboarding process, uniform assessment and feedback process for managers, Inspiring Coach Com- pass, Group-wide performance management, digitised HR services. In 2021, we paid particular attention, on the one hand, to supporting cost savings that were in progress in Austria, and on the other, to projects intended to make UNIQA the most attractive employer in our market by 2024. Once again in 2021, our primary focus was on protecting our employees during the course of the Covid-19 pandemic, minimising health risks and ensuring flexible working conditions were in place. As Austria’s largest health insurer, we have been clear advocates of getting vaccinated and actively encourage our employees to do so. Socially responsible job cuts in Austria In order to deal with the major challenges, the insurance industry currently faces and be able to offer our customers competitive services in future too, we have set up a new, customer-centric organisational structure here in Austria. The aim was to reduce the complexity of the structures and processes in place as well as reduce absolute costs and the cost ratio. The associated organisational changes resulted in the loss of numerous jobs. In order to ensure these job cuts were as socially acceptable as possible, we agreed a social plan with the Works Council. We have worked incredibly hard to ensure the termination of employment contracts with employees, some of whom are long-serving, is con- ducted with due care. Alongside one-off payments and a hardship fund, we have also offered longer-term retirement models as well as an employment foundation and outplace- ments. All terminations were completed subject to mutual consent; thanks to the attractive nature of the provision arising from the social plan, we managed to achieve an acceptance rate of 90 per cent. A total of 371 jobs in Austria were cut as a result of this, of which 279 were back office jobs and 92 were sales force jobs. New hybrid world of work at UNIQA In order to make the changes required as a result of the Covid-19 pandemic as acceptable as possible for both our customers and employees, we have established a new stand- ard for geographically flexible working in Austria by making working from home easier. A works agreement in place cre- ates uniform framework conditions; employees can choose from three working models involving more or less working from home and create an overall package to suit them, whether working in the office, working from home or mobile working. By doing so, we want to make a conscious effort to- wards greater self-determination, trust and flexibility. The working culture at UNIQA is also being redefined together with our employees. Health and satisfaction The UNIQA employee survey in Austria was conducted once again in 2021. The participation rate was 72.4 per cent. The questions asked covered topics such as the situation at work, work processes, management structure, alignment with targets, professional development, company image and overall satisfaction. The overall satisfaction rate was 76 out of 100 possible points. The newly introduced Integration Index showed that the feeling of belonging and being one’s own self at UNIQA is very strong among most respondents. However, when compared to the last employee survey in 2019, the results this time indicate a declining rating. Our UNIQA Works Council plays a key role in the health and satisfaction of our employees. Its work covers the four “Social”, Economic”, “Health” and “Cultural” areas. All activities in these areas have a profound impact on the satisfaction of our employees and, as a result, on UNIQA’s success. In addition to medical check-ups, vaccinations and special vital events related to fitness and work-life balance, our joint service provision also includes support to ensure better mental health. Given that social contact is extremely important at a time when restrictions are in force, works trips and other organised meetings play a key role in strengthening our UNIQA community and promoting unity among our colleagues. The UNIQA Works Council also plays a key role in compiling new benefits or improving existing benefits, such as participation in the company’s success, the pension fund system, Group health insurance or the “Living better together” programme. The UNIQA volunteer day was introduced in 2013. It is a voluntarily granted day off work where the focus is on social engagement for the benefit of disadvantaged people. By November 2021, around 900 days have been utilised as vol- unteer days. Using the average daily working time of eight hours as the basis, this equates to 7,168 hours of voluntary work. NON-FINANCIAL REPORT 30 Training and education Learning while working is part of everyday life at UNIQA. All of our back office and sales force employees in Austria have had access to our online platform for this purpose for many years. The digitalisation of our education provision has become a pivotal part of our training, particularly dur- ing the pandemic, and allows people to expand their knowl- edge digitally at their own pace. This provision not only in- cludes familiar e-learning courses but also specific webinars too. Many formats, including our Lunch and Learn learning format, were converted in their entirety to webinar format, owing to the extra flexibility involved and excellent feed- back we obtained. We have therefore given all employees in Austria the opportunity to participate, while the record function allows you to check out webinars at a later point in time. In 2021, we hosted a total of seven online Lunch and Learn events involving around 1,000 employees, as well as 1,423 webinars and 325 in- person training sessions. Since February 2021, all employees have also had access to GoodHabitz training sessions via the training platform. These sessions include, for example, training on personal development, language, management and teamwork or on productivity. The training sessions can be held online, in hy- brid form or face-to-face as they take place in three sections, starting with the kick-off, then a self-learning phase, and finally the wrap-up. The required number of licences will be expanded from 1,000 to 5,000 in 2022 to enable our sales force employees throughout Austria to make use of these training sessions in future too. Leadership and management The Covid-19 pandemic and the accompanying digitalisa- tion of the world of work have also accelerated the demands placed on our managers. What this involves in particular is coming up with new ways of communicating and working that are fit for the future and efficient. Our leadership de- velopment programme entitled #leader_ ship aims to build our managers’ skills in leading and managing employees. The focus is on the personal and future-driven development of managers themselves and of employees too. Our goal is to help them identify their own areas for development and work toward continual improvement in these areas. The aim is to enable managers to take key roles in our organisa- tion and to encourage them to hold developmentoriented discussions with employees. It also aims to improve their leadership skills in working with diverse teams and the var- ious ways of working and lifestyles inherent in these teams. We have also introduced the Inspiring Coach Compass, a new tool that contributes to providing feedback to and developing top managers. 2021 also saw the creation of a new management mission statement, which is based on the guiding principles defined in the UNIQA 3.0 corporate strategy. It is used as a guide, provides inspiration and acts as a signpost to create a cul- ture of inspiring coaches, strengthen collaboration, moti- vate employees to take personal responsibility and increase efficiency. Cultural transformation We also want to actively reshape our corporate culture as the basis for implementing the UNIQA 3.0 strategic programme. By doing so, we will create the cultural frame- work within which we can achieve our ambitious targets as inspiring coaches. We have started a Group-wide cultural transformation programme for this purpose and set up a culture office as a centre of competence. A Group-wide sur- vey was carried out in the first two quarters of 2021 in order to survey the status quo as regards the corporate culture. Using this as the basis, we then defined a target culture that is based on three dimensions and linked to our guiding principles. We trialled best practices in cultural change in the final two quarters of 2021 and successfully implemented a number of pilot projects. The Group-wide roll-out of these projects is scheduled to take place this year. Targets and target achievement: Employee matters Topic Target achievement in 2021 Targets for 2022 Most attractive employer in the industry As part of our UNIQA 3.0 strategy, we have set ourselves the long-term goal of becoming the best employer in the industry by 2024. In order to fulfil this target, a wide range of meas- ures were drawn up based on five action items: Employee Experience, Employee Engagement, Learning and Leadership, Digital Skills and Future of Work Continuation and implementation of measures defined in 2021, including, for example, the introduction of uniform standards for HR management in all countries, which will help contribute towards an excellent employee experience throughout the entire Group. 31 Non-Financial Report NON-FINANCIAL REPORT Targets and target achievement: Diversity and inclusion Topic Target achievement in 2021 Targets for 2022 Diversity and inclusion strategy One of the most important targets in 2021 was to carry out an site assessment as well as an actual analysis of a number of existing initiatives in place. They were used as the basis for initiating further measures for improvement (e.g. recruitment guidelines and the equal pay analysis). Our aim in 2022 is to complete and implement the diversity and inclusion strategy throughout the entire Group, as well as draft and approve a Group-wide diversity and inclusion policy. There are also plans in place to introduce a standard- ised process to handle allegations of discrimination. Diversity and inclusion We believe there is strength in diversity and have no time for intolerance or exclusion. Diversity in action transforms UNIQA into a place where people can grow, develop and enjoy meaningful engagement. Everyone working for us can find just the right place to develop their full potential to the benefit of our customers, colleagues and the company. Living better together – we believe this can in reality only be fulfilled if every single gender, nationality, majority or minority is treated equally at UNIQA and can benefit from the same opportunities. We have already brought about significant impetus on the subject of diversity in 2020, including by nominating a Diversity Officer and getting started on a project that will embed and promote diversity from a structural and organ- isational perspective. The Diversity and Inclusion Com- mittee was then introduced in 2021. Under the patronage of two members of the Management Board, the Commit- tee’s aim is to strengthen the embedding of diversity and inclusion in all of the company’s departments and processes and ensure this is consistent with the corporate strategy. Existing elements, such as the guiding principles and targets for diversity and inclusion will be combined into a separate diversity and inclusion strategy in 2022. This will form the basis and the framework for all of our activities undertaken in this area. We also acceded to the Diversity Charter of the Austri- an Federal Economic Chamber (Charta der Vielfalt der Wirtschaftskammer Österreich) in 2021. We used an indepth actual analysis in 2021 as the basis for identifying the status quo of our existing activities and ini- tiatives in order to come up with approaches for additional effective measures. This has already been successfully im- plemented as part of the indexing for the Women’s Career Index (FKI). Recruitment guidelines were compiled as one of the most important outcomes. The aim of these guide- lines is to promote diversity within all of our teams and at all management levels, ensure equal opportunity for all employees and safeguard an objective and transparent se- lection process for managers. We also started up the UNIQA mentoring programme, which aims to support talented employees in their personal and professional development. Furthermore, we also conducted an equal pay analysis in 2021, the framework of which allowed us to collect and an- alyse data on equal pay between men and women. In order to rectify bias in salary decisions, best practices are also applied in a consistent manner. Details of further measures and initiatives can be found in our 2021 Sustainability Report. NON-FINANCIAL REPORT 32 How we have dealt with Covid-19 The Covid -19 pandemic took hold within our company once again in 2021 and continued to significantly impact every- day life here. Our crisis team, a multi-disciplinary task force made up of experts from various departments, continued to monitor infection rates in the same way as they did in 2020, instigating suitable measures depending on the situation at hand. These measures include, for example, the drafting of guidelines for mobile working, stringent hygiene and safety precautionary measures, social distancing rules, restrictions on business travel, etc. These measures were updated on an ongoing basis, with employees informed of any updates every week. Given the significant increasing in working from home, UNIQA also took measures to safeguard an appropriate level of data protection for employees. As an example, all employees working from home did so using secure VPN connections. We also adapted our training and aware- ness-raising measures looking at common types of cyberat- tacks and launched an awareness campaign on phishing in order to increase its awareness in everyday professional and personal situations. Given the risk situation and infection rates at that time, we were able to temporarily bring back employees to our UNIQA sites in Austria in summer 2021. We did this subject to stringent conditions and guidelines, such as hygiene measures and restrictions for meetings. These measures were linked directly to national and region- al infection rates and other criteria. The situation was also monitored constantly by the crisis team and reported to the Management Board on a regular basis. As part of our responsibility towards our employees, we actively recommend they get vaccinated against Covid-19 and signed up as a member of the Austrian Federal Eco- nomic Chamber’s “My Team. Our Vaccination” (Mein Team. Unsere Impfung) campaign. We are also committed to getting vaccinated in our online activity, getting involved in the #ZusammenGegenCorona campaign. The global pandemic has massively shifted focus towards the importance of personal health and mental well-being. With the #mentalhealthmatters campaign, we have actively taken a stance and have introduced numerous measures to support our employees in these times of crisis. Our existing KEEP BALANCE offering was replaced by consentiv, a sub- sidiary of our health start-up SanusX. These services allow you to make use of phone, face-to-face or online consulta- tion on all kinds of professional and personal issues. Human rights The proper and respectful treatment of people is a key part of the fabric of our company and therefore at the core of our corporate culture. In this sense, setting an example with upholding human rights is one of our deeply held beliefs. Respect for human dignity is a fundamental benchmark for us, particularly when it comes to employees. We commit to not discriminating against anyone based on ethnic back- ground, skin colour, religion, gender, sexual orientation or other characteristics. Building on this commitment we set internal standards in our Code of Conduct for ethical conduct that go beyond those of the applicable laws. We are constantly working towards integrating human rights issues more strongly into our processes so that we can reliably fulfil new requirements. By acceding to the UN Global Compact in November 2020, we are committed to observing the United Nations’ Uni- versal Declaration of Human Rights throughout the entire UNIQA Group. The ten principles featured in the Global Compact have been incorporated into our UNIQA Code of Conduct. We report on our progress in this regard once a year. During the 2021 financial year, we worked together with other members of the Raiffeisen Sustainability Initiative (RSI) to start drafting a template for a human rights policy. The aim here is to be able to address human rights implica- tions more precisely in a business model and in upstream and downstream service relationships. Once this project has finished, our intention is to implement its findings within our Group. 33 Non-Financial Report NON-FINANCIAL REPORT Compliance and combatting corruption and bribery We believe compliance with all relevant statutory regula- tions, internal company guidelines and ethical principles is essential as a company that acts responsibly. The insurance business requires a high degree of trust; lawful and ethical action therefore not only has a decisive impact on the rep- utation of the entire UNIQA Group, it is also a fundamental requirement for our long-term success. The topics of compliance and combatting corruption at a Group level are covered by the Group Legal and Compliance department, which reports directly to the CFO. This depart- ment is responsible for establishing the basis for a uniform approach across the entire Group, and is also supported by a separate local Compliance function in each UNIQA Group insurance company. The Group Compliance function’s oth- er management duties include reviewing compliance with internal and external requirements. In 2021, we introduced the “Check of Focus Areas” tool to replace the default com- pany visits. This ensured checks were conducted on each UNIQA Group insurance group as regards their observance of selected requirements regarding general compliance, prevention of money laundering and FATCA. The results were then reported to the respective local member of the Management Board in the form of a written report. A key tool for managing compliance at UNIQA is the annual compliance conference, which serves as a platform for distributing new information and exchanging experiences within the Group. The UNIQA Group Code of Conduct was extensively revised in 2020, with the new version rolled out and communicat- ed in 2021. The Code of Conduct provides clear guidance on the most important compliance topics. It reflects the UNIQA 3.0 strategy in the same way as our guiding princi- ples and our corporate culture. The principles and regula- tions laid down in the Code of Conduct apply to all areas of our daily work and are equally mandatory for our Manage- ment Board, Supervisory Board and all employees. There are special regulations in place for specific compliance topics, such as prevention of money laundering, implemen- tation of the Foreign Account Tax Compliance Act (FACTA), Common Reporting Standard and Solvency II. They are dealt with in the form of specific policies, standards and manuals along with concrete instructions on selected indi- vidual topics. The following topics have been newly regulated and/or supplemented by way of the new version: Donations and other gifts to and from political parties, organisations closely affiliated with political parties and parties campaigning in elections are no longer permit- ted. An exception to this rule is the sponsorship of events organised by political parties or organisations they are closely affiliated with in which no party-related political content is discussed and that are accessible to the public. The Governance, Risk and Compliance (GRC) tool was rolled out in all Group insurance companies in 2021. An interdisciplinary project to develop a tool with several mod- ules (compliance, data protection, risk management and IT security) that aims to reinforce an integrated approach to documenting risks was completed here. Compliance risks and risk-minimising measures are recorded and adminis- tered as a whole in the compliance module, thus creating the basis for uniform reporting. Local compliance officers, anti-money laundering officers and FATCA-responsible officers have already reported to the Group functions and to the local Management Boards and Supervisory Boards in 2021 using the data recorded in the GRC tool as the basis. The e-learning module on the topic of compliance was revised in 2021 and approved for mandatory participation for all back office and sales force employees in Austria at the end of the year. This module focuses on gifts, whistleblow- ing and conflicts of interest. Participants can also practice answering various questions at the end of the module. Other e-learning modules on the prevention of money laundering have since been made available. Targets and target achievement: Human rights Topic Target achievement in 2021 Targets for 2022 Integration of human rights By acceding to the UN Global Compact alongside our collab- oration with other members of the Raiffeisen Sustainability Initiative (RSI), we have laid the foundations for integrating human rights into our corporate processes. We will continue integrating human rights guidelines into all of the relevant business lines and core processes. NON-FINANCIAL REPORT 34 In 2021, we evaluated the existing continuous areas of confidentiality and updated them in line with the structur- al, organisational and personnel-related changes made. In order to take the changing working conditions into account, we launched regular virtual training sessions on the subject of issuer compliance for our new employees. Two to three dates each quarter are set aside and offered for this pur- pose. In addition, we have made use of a specific format to train our managers on the most important topics and developments in issuer compliance. The Compliance Officer reported to the Group Management Board on a regular basis on the most important issuer compliance matters and also produced an extensive Group report. Moreover, regular dis- cussions were held on current issues with the Management Board member responsible for this topic. Targets and target achievement: Compliance and combatting corruption and bribery Topic Target achievement in 2021 Targets for 2022 Compliance management system The existing compliance management system was expanded to include newly acquired insurance companies and existing non-insurance companies of significant importance to the UNIQA Group. Compliance risks are recorded in a structured way in the new- ly launched tool, making monitoring significantly easier. Anti-corruption measures The project to launch a Group-wide system to recognise sanctioned and politically exposed persons was successfully completed. The Compliance function at UNIQA Austria is continuing the initiative to enhance awareness of compliance and anti- corruption measures among sales employees. Disclosures according to the EU Taxonomy Regulation In order to achieve the targets set under the European Green Deal and the EU’s 2030 Climate Target Plan, the EU Action Plan on Financing Sustainable Growth calls for the creation of a standardised classification system for envi- ronmentally sustainable economic activities in the form of the EU Taxonomy. The Taxonomy Regulation, which lays down the framework for the EU Taxonomy, was published in the Official Journal of the European Union in June 2020 and entered into force on 12 July 2020. The Taxonomy Regulation states that financial market participants offering relevant financial products in the EU are obliged to disclose their share of Taxonomy-aligned activities. At the time this report was prepared, there is no uniform data basis for applying the Delegated Regulations, and there are different interpretations as to how they are applied. Our quantitative and qualitative disclosures are therefore determined in line with a “best effort approach” and take into account what we currently know. Our over-all strategy involves pursuing the climate targets set under the Paris Agreement. Our aim therefore is to record both the indi- rect emissions of the assets in our investment as well as the indirect emissions of the insured risks through our man- agement approach and engagement, as well as reduce these emissions going forward according to interim targets yet to be laid down. We are working on the assumption that this will also increase the share of Taxonomy-aligned activities in future. With regard to investment, UNIQA conducted some initial research in autumn 2020 with respect to the correspond- ing conversion of databases. Given that no information in accordance with Article 8 of the Taxonomy Regulation had been disclosed by the reporting company during the financial year, UNIQA was forced to revert to alternative data sources from specialised data providers for the initial estimation of the data owing to the lack of specific company information available. A detailed analysis and comparison of ESG data providers showed that the sustainability data of ISS ESG corresponded to a fundamental approach, even if these data were mostly based on derived information and estimates. Both quantitative as well as qualitative informa- tion is available in great detail, thus ensuring a comprehen- sive ESG assessment of our activities can be carried out. In order to provide technical support to ensuring compliance with the Regulation, ISS ESG has developed a comprehen- sive solution aligned with the EU Taxonomy. The corre- sponding switch in data supply took place in April 2021. With the ISS ESG EU Taxonomy Aligned Solution, our ex- ternal data provider now covers more than 400 Taxonomy- specific screening factors over the course of a five-stage screening process. The five stages involve identifying Tax- onomy-related activities, estimating the revenues generated from them, assessing their compliance with the criteria for 35 Non-Financial Report NON-FINANCIAL REPORT a substantial contribution as defined in the EU Taxonomy, checking whether the activities fulfil the DNSH (Do No Significant Harm) criteria and reviewing whether they are in line with social safeguards. Each issuer is assessed on the basis of 74 activities, whereby each activity corresponds to the five individual stages of the process. Although there are still no company reports on alignment with the EU Taxonomy published as yet, ISS ESG believes that the tool will provide a realistic assessment. However, it is important to note that those particular instances where there are no data currently available will have to revert to approximations and assumptions. The tool goes beyond a binary assessment in assessing the compliance of corporate issuers with EU Taxonomy criteria. There are also different categories of alignment as per the EU’s recommendation that investors are responsi- ble for reporting not only the share of investments that are demonstrably EU Taxonomy-aligned, but also the share that is potentially EU Taxonomy-aligned. The EU Taxonomy Aligned Solution from ISS ESG is based on several internal modelling activities as well as third party data sets. During the 2021 financial year, a share of 4.20 per cent of general Taxonomy-aligned sustainable activities and a share of 44.87 per cent of non-Taxonomy-aligned investments were derived from our investments. The published assess- ment criteria for the first two climate targets set under the EU Taxonomy Regulation were observed as a result. All government bonds and bonds from supranational issuers were removed from the calculation in accordance with the Delegated Acts to the EU Taxonomy Regulation. The share of exposure to central governments, central banks and supranational issuers amounts to 47.09 per cent with regard to all investments. The share of derivatives amounts to 1.95 per cent with regard to all investments. The share of exposure to undertakings to entities subject to an obligation to disclose non-financial information in accordance with Article 19a or Article 29a of Directive 2013/34/EU amounts to 26.95 per cent with regard to all investments. In terms of non-life insurance, detailed research was con- ducted on approximately 40 non-life insurance lines with regard to all premium elements on the basis of the premi- ums written before reinsurance. The content of insured benefits and scope of cover were examined by underwriting specialists in terms of being adapted in line with the effects of climate change. As a result of different cover being issued in places, the private customer business and industrial/ commercial business were analysed separately and classi- fied in relation to the insurance activity’s Taxonomy eligi- bility. The premium shares of the non-life insurance lines subject to analysis were subsequently combined into the categories as defined in the Delegated Regulations. Further- more, the share of general Taxonomy-aligned sustainable activities in relation to the total non-life insurance premi- ums written (before reinsurance) was derived. During the 2021 financial year, a share of 41.79 per cent of general Taxonomy-aligned sustainable activities, which can be allocated to the environmental target of adapting to cli- mate change, was derived from our non-life insurance pre- miums written (before reinsurance). This relates primarily to insurance cover for natural disasters that are also linked to climate change. Accordingly, therefore, 58.21percent of non-life insurance premiums written (before reinsurance) can be allocated to non-Taxonomy-aligned activities. NON-FINANCIAL REPORT 36 We confirm that the summarised non-financial report of UNIQA Insurance Group AG, prepared in accordance with Section 267a (2) of the Austrian Commercial Code (UGB) and the EU Taxonomy Regulation (EU Regulation 2021/852), contains all the information necessary to gain an understand- ing of the course of business, the business performance, the position of the Group as well as those effects of its activities that relate to environmental, social and employee matters, respect for human rights and the fight against corruption and bribery. The disclosures include a description of the core business of UNIQA Insurance Group AG and its concepts relating to these topics, including the due diligence process- es applied and the material risks. The report also includes information on the results of the implementation of these concepts and the key performance indicators. Vienna, 9 March 2022 Declaration of the legal representatives Andreas Brandstetter Chairman of the Management Board Peter Eichler Member of the Management Board Wolf-Christoph Gerlach Member of the Management Board Peter Humer Member of the Management Board Wolfgang Kindl Member of the Management Board René Knapp Member of the Management Board Erik Leyers Member of the Management Board Klaus Pekarek Member of the Management Board Kurt Svoboda Member of the Management Board 37 Non-Financial Report NON-FINANCIAL REPORT Independent Limited Assurance Report on the Combined Non-financial Report pursuant to Section 267a UGB We performed a limited assurance engagement of the combined non-financial report pursuant to section 267a UGB (Austrian Company Code) (hereinafter the “combined non-financial report”) of UNIQA Insurance Group AG (the “Company”), Vienna, for the financial year 2021. Conclusion Based on the procedures performed and evidence obtained, nothing has come to our attention that causes us to believe that the Company’s combined non-financial report is not prepared, in all material aspects, in accordance with the requirements of section 267a UGB and the “EU Taxonomy Regulation” (Regulation (EU) No.2020/852). Responsibility of Management and the Supervisory Board Management is responsible for the preparation of the combined non-financial report in accordance with the requirements of section 267a UGB and the “EU Taxonomy Regulation” (Regulation (EU) No. 2020/852). Management’s responsibility includes the selection and ap- plication of appropriate methods to prepare the combined non-financial reporting (in particular the selection of key issues) as well as making assumptions and estimates related to individual sustainability disclosures which are reason- able in the circumstances, and for such internal control as management determines is necessary to enable the prepa- ration of a combined non-financial report that is free from material misstatement, whether due to fraud orerror. The Supervisory Board is responsible for examining the combined non-financial report. Auditor’s Responsibility Our responsibility is to express a limited assurance con- clusion based on our procedures performed and evidence obtained as to whether anything has come to our attention that causes us to believe that the Company’s combined non-financial report is not prepared, in all material aspects, in accordance with the legal requirements of section 267a UGB and the “EU Taxonomy Regulation” (Regulation (EU) No. 2020/852). We performed our engagement in accordance with the professional standards applicable in Austria with regard to KFS/PG 13 “Other assurance engagements”, KFS/PE28 “Selected issues in connection with the assurance of non-fi- nancial statements and non-financial reports pursuant to sections 243b UGB and 267a UGB as well as sustainability reports” and the International Standards on Assurance En- gagements (ISAE) 3000 (Revised) “Assurance engagements other than audits or reviews of historical financial infor- mation”. These standards require that we comply with our ethical requirements, including rules on independence, and that we plan and perform our procedures by considering the principle of materiality to be able to express a limited assurance conclusion based on the assurance obtained. Our report is issued based on the engagement agreed upon with you and is governed by the General Conditions of Contract (AAB) 2018, issued by the Austrian Chamber of Tax Advisers and Auditors (https://www.ksw.or.at/desktop- default.aspx/tabid-209/), which also apply towards third parties. As provided under section 275 para. 2UGB (liability provision regarding the audit of financial statements of small and medium-sized companies), our responsibility and liability towards the Company and any third parties arising from the assurance engagement are limited to a total of EUR 2 million. NON-FINANCIAL REPORT 38 The procedures performed in a limited assurance engage- ment vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement; consequent- ly, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance en- gagement been performed. The selection of the procedures lies in the sole discretion of the auditor and comprised, in particular, the following: Evaluating the overall presentation of the disclosures and non-financial information Critical assessment of the Company’s analysis of materia- lity considering the concerns of external stakeholders by interviewing the responsible employees and inspecting relevant documents Obtaining an overview of the policies pursued by the Com- pany, including due diligence processes implemented as well as the processes used to ensure an accurate presenta- tion in the combined non-financial report by interviewing the Company’s management and inspecting internal gui- delines, procedural instructions and management systems in connection with non-financial matters/disclosures   Obtaining an understanding of reporting processes by in- terviewing the relevant employees and inspecting selected documentations Evaluating the reported disclosures by performing ana- lytical procedures regarding non-financial performance indicators, interviewing relevant employees and inspec- ting selected documentations Critical appraisal of the disclosures in accordance with the requirements of the “EU Taxonomy Regulation” (Regula- tion (EU) No. 2020/852) Examining the combined non-financial report regarding its completeness in accordance with the requirements of section 267a UGB and the “EU Taxonomy Regulation” (Regulation (EU) No. 2020/852) The engagement and, in particular, all interviews as well as procedures were performed by virtual means due to the ongoing COVID-19 pandemic and the coronavirus contain- ment measures. Data was exchanged via platforms provided by us as well as via e-mail and mail. Interviews were conduc- ted via telephone as well as via video conferencing. The following is not part of our engagement: Examining the processes and internal controls particularly regarding their design, implementation andeffectiveness Performing procedures at individual locations as well as measurements or individual evaluations to check the reliability and accuracy of data received Examining the prior-year figures, forward-looking infor- mation or data from external surveys Examining the correct transfer of data and references from the (consolidated) financial statements to the non-fi- nancial reporting; and Examining the information and disclosures on the website or further references on the internet Neither an audit nor a review of financial statements is objective of our engagement. Furthermore, neither the disclosure and solution of criminal acts, as e.g. embezzle- ment or other kinds of fraud, and wrongful doings, nor the assessment of the effectiveness and profitability of the management are objectives of our engagement. 39 Non-Financial Report NON-FINANCIAL REPORT Restriction of Use Because our report is prepared solely for and on behalf of the client, it does not constitute a basis for any reliance on its contents by other third parties. Therefore, no claims of other third parties can be derived from it. Vienna 9 March 2022 PwC Wirtschaftsprüfung GmbH Werner Stockreiter Austrian Certified Public Accountant signed We draw attention to the fact that the English translation of this report is presented for the convenience of the reader only and that the German wording is the only legally bin- ding version. NON-FINANCIAL REPORT 40 Economic environment Economic development was shaped above all by the coronavirus pandemic and the associated restrictions in 2021. At the beginning of the year, the sharp increase in the number of Covid-19 cases in the eurozone led to continued restrictions on economic activity. This resulted in negative economic growth of –4.1 per cent in the first quarter of 2021. The national economies were able to take generous opening steps thanks to the development, ap- proval and use of new vaccines against the Covid-19 virus. Strong economic growth was recorded in the second quarter (+12.8 per cent) and third quarter (+5.6 per cent) accordingly. The labour market also recovered during the course of the economic recovery. The unemployment rate was still 7.0 per cent at the beginning of 2021. By the end of the year, the labour market recovered to 5.3 per cent, despite the renewed Covid-19 restrictions in the fourth quarter. Restrictions were again imposed by the federal government due to the intensified pandemic situation in the fourth quarter of 2021. The renewed lockdown of public life caused the economy to decline by 2.2 per cent in the fourth quarter. The complete opening of the economy also led to a rise in inflation. The development of inflation in 2021 was determined by different effects. Sharp rises in energy prices, friction in the global supply chain and the strong recovery in the labour market fuelled inflation from the second half of 2021. Inflation in Austria was measured at 2.7 per cent in 2021 and is in line with the eurozone average (2.6percent). The first monetary policy measures were taken by the major central banks in response to the continuing growth in inflation in the fourth quarter. The Bank of England was the first major central bank to raise its key interest rate to 0.25 per cent in the fourth quar- ter. The ECB decided to end the Pandemic Emergency Purchase Programme (PEPP) in December in response to rising inflation in the eurozone. A first interest rate hike is also possible if inflation remains high. The US Federal Re- serve (Fed) also announced its exit from its bond- buying programme. In addition, the prospect of first interest rate steps was also held out in response to rising inflation in the USA. Risk premiums in the eurozone hardly changed over the year and are close to their pre-crisis level at the end of 2021. This is mainly due to the ECB’s monetary policy measures. In addition, the EU Recovery Fund adopted by the EU has strengthened investor confidence in the creditworthiness of eurozone countries: direct borrowing by the EU, which ensures low-cost financing, is intended to provide grants and loans to the member states. Genuine economic recovery in CEE The economies in Central and Eastern Europe have also been on the road to recovery since the start of the Covid-19 vaccination campaigns. In Poland, GDP grew by 5.7per cent in 2021 and is already back above the pre- crisis levels of 2019. The strong economic recovery also fuelled inflation (5.1 per cent) in 2021. Economic perfor- mance also recovered in the Czech Republic this year, with growth of 3.1 per cent. Hungary’s economy recorded growth of 7.3 per cent in 2021 and is already above the level before the outbreak of the coronavirus pandemic. In the other markets in CEE, the reopening of the economy also led to genuine economic growth. Group Management Report 41 Group Management Report GROUP MANAGEMENT REPORT UNIQA Group With premiums written, including savings portions from unit-linked and index-linked life insurance of €6,358.0 million, the UNIQA Group is among the leading insur- ance groups in Central and Eastern Europe. The savings portions from unit-linked and index-linked life insurance in the amount of €324.6 million were netted out against the change in insurance provision pursuant to FAS 97 (USGAAP). Without taking the savings portions from unit-linked and index-linked life insurance into consid- eration, the volume of premiums written amounted to €6,033.4 million. UNIQA in Europe UNIQA offers its products and services via all distribution channels (hired sales force, general agencies, brokers, banks and direct sales) and covers virtually the entire range of insurance lines. UNIQA is the second-largest in- surance group in Austria, with a presence in 15 countries of the CEE growth region: Albania, Bosnia and Herze- govina, Bulgaria, Croatia, the Czech Republic, Hungary, Kosovo, Montenegro, North Macedonia, Poland, Romania, Russia, Serbia, Slovakia and Ukraine. In addition, insur- ance companies in Switzerland and Liechtenstein are also part of the UNIQA Group. The listed holding company UNIQA Insurance Group AG manages the Group and also operates the indirect insurance business concluded as active reinsurance with another insurance company. Moreover, UNIQA Insurance Group AG carries out numerous service functions for UNIQA Österreich Versicherungen AG and its interna- tional Group companies, in order to take best advantage of synergy effects and to implement the Group’s long-term corporate strategy consistently. Property and casualty insurance The property and casualty insurance line includes prop- erty insurance for private individuals and companies, as well as private casualty insurance. The UNIQA Group received premiums written in property and casualty in- surance in the amount of €3,489.5 million in 2021 (2020: €3,010.3 million), i.e. 54.9 per cent (2020: 54.1 per cent) of the total premium volume. The largest share by far in the volume of property and casualty insurance comes from private consumer business. Most property and casualty insurance policies are taken out for a limited term of up to three years. A broad spread across the different risks of a great many customers and the relatively short terms of these contracts lead to only moderate capital require- ments and also make this business segment attractive as a result. Health insurance Health insurance in Austria includes voluntary health insurance for private customers, commercial preventive healthcare and opt-out offers for certain independent professions such as lawyers, architects and chemists. Although health insurance is still at the early stages in CEE, increased levels of prosperity in the region make the long-term growth potential even greater. Group- wide, premiums written totalled €1,226.5 million in 2021 (2020: €1,167.6 million), i.e. 19.3 per cent (2020: 21.0 per cent) of the total premium volume. UNIQA is the undis- puted market leader in this strategically important busi- ness line in Austria, with around 46 per cent of market share. The overwhelming majority comes from Austria with around 91 per cent of premiums, with the remaining 9 per cent from international business. Life insurance Life insurance covers economic risks that stem from the uncertainty as to how long a customer will live. It includes savings products such as classic and unit-linked life insurance. There are also biometric products which hedge against risks such as occupational disability, long-term care needs or death. The life insurance business model is structured towards the long term, with policy terms of around 25 years on average. Life insurance is still facing major challenges, as the low interest rate environment is particularly disadvantageous to all long-term forms of saving and investment, including for life insurance. In life insurance, UNIQA reached a premium volume (including savings portions from unit-linked and index-linked life insurance) of €1,642.0 million Group-wide in 2021 (2020: €1,387.5 million), i.e. 25.8 per cent (2020: 24.9 per cent) of the total premium volume. 42 Companies included in the IFRS consolidated financial statements In addition to the annual financial statements of UNIQA Insurance Group AG, the consolidated financial state- ments include the financial statements of all subsidiaries in Austria and abroad as well as those of the investment funds under the Group’s control. The basis of consolida- tion – including UNIQA Insurance Group AG – comprised 31 Austrian (2020: 33) and 58 international (2020: 66) subsidiaries as well as five Austrian (2020: 5) and eight in- ternational (2020: 6) controlled pension and investment funds. The associates relate to four Austrian (2020: 4) and one international company (2020: 1) that were included in the consolidated financial statements using the equity method of accounting. Details on the consolidated companies and associates are contained in the corresponding overview in the consol- idated financial statements. The accounting and meas- urement methods are also described in the consolidated financial statements. Risk reporting UNIQA’s comprehensive risk report is included in the notes to the 2021 consolidated financial statements. Corporate Governance Report Since 2004, UNIQA has pledged to comply with the Austrian Code of Corporate Governance. UNIQA pub- lishes its consolidated Corporate Governance Report at www.uniqagroup.com in the Investor Relations section. Consolidated non-financial statement, consolidated non-financial report In accordance with Section 267a(6) of the Austrian Com- mercial Code, UNIQA Insurance Group AG prepares its consolidated non-financial statement as a separate sum- marised non-financial report. The separate summarised non-financial report is prepared and signed by all legal representatives. It is submitted to the Supervisory Board for review and published together with the Group Man- agement Report pursuant to Section 280 of the Austrian Commercial Code. 43 Group Management Report GROUP MANAGEMENT REPORT Changes in premiums UNIQA’s total premium volume increased in 2021 – taking into account the savings portions from unit-linked and index-linked life insurance in the amount of €324.6 million (2020: €304.1 million) – by 14.2 per cent to €6,358.0 mil- lion (2020: €5,565.3 million). The main driver of this was the full effect of the initial consolidation of the former AXA CEE companies, which took place in the fourth quarter of2020. Premiums written including savings portions from unit-linked and index-linked life insurance In € million 2017 20192018 2020 2021 6,358 5,3095,293 5,373 5,565 In the area of insurance policies with recurring premium payments, there was an encouraging increase of 13.4per cent to €6,207.8 million (2020: €5,472.2 million). In the sin- gle premium business, the premium volume also increased to €150.2mil- lion (2020: €93.2 million). Premiums written in property and casualty insurance increased by 15.9per cent to €3,489.5 million in 2021 (2020: €3,010.3 million). In health insurance, premi- ums written rose by 5.0 per cent to €1,226.5 million in the reporting period (2020: €1,167.6 million). In life insurance, the premiums written including savings portions from the unit-linked and index-linked life insurance increased by 18.3 per cent to €1,642.0 million (2020: €1,387.5 million). The Group’s premiums earned including savings portions from unit-linked and index-linked life insurance (after re- insurance) amounting to €324.6 million (2020:€304.1mil- lion) rose by 12.9 per cent to €6,022.2million (2020: €5,333.7 million). The volume of premiums earned (net, in accordance with IFRSs) increased by 13.3 per cent to €5,697.6 million (2020: €5,029.5 million). UNIQA Group In € million 2021 2020 2019 Premiums written, including savings portions from unit-linked and index-linked life insurance 6,358.0 5,565.3 5,372.6 Cost ratio (net after reinsurance) 27.4% 29.4% 27.2% Combined ratio (net after reinsurance) 93.7% 97.8% 96.4% Earnings before taxes 382.3 57.1 232.0 Consolidated profit/(loss) (proportion of the net profit for the period attributable to the shareholders of UNIQA Insurance Group AG) 314.7 19.4 171.0 Group business development Premiums written (including savings portions from unit-linked and index-linked life insurance) rose by 14.2 per cent to €6,358.0 million Combined ratio improved from 97.8 per cent to 93.7 per cent Finance costs rose to €134.8 million due to one-off effects from bond buybacks in the fourth quarter of 2021 Earnings before taxes at €382.3 million in 2021 due to the very strong performance Proposed dividend of €0.55 per share for 2021 44 Property and casualty insurance In € million 2021 2020 2019 Premiums written 3,489.5 3,010.3 2,846.8 Insurance benefits (net) – 1,965.1 – 1,775.1 – 1,719.5 Loss ratio (after reinsurance) 61.3% 63.2% 64.2% Operating expenses (net) – 1,037.8 – 970.7 – 861.2 Cost ratio (net after reinsurance) 32.4% 34.6% 32.2% Combined ratio (net after reinsurance) 93.7% 97.8% 96.4% Net investment income 135.2 29.5 122.1 Earnings before taxes 107.3 – 67.9 61.4 Technical provisions (net) 3,891.2 3,732.1 3,061.3 Change in insurance benefits Insurance benefits before reinsurance (see note 8 in the consolidated financial statements) increased by 14.3percent to €4,365.5 million in the 2021 financial year (2020: €3,819.8 million). Consolidated insurance benefits (net) rose less than the volume of premiums earned in the past year by 11.1 per cent to €4,104.2 million (2020: €3,694.6 million). Insurance benefits (net) In € million 3,547 3,666 3,634 3,695 4,104 2017 20192018 2020 2021 Despite a significant burden from natural catastrophe and major losses due to favourable basic loss development, the loss ratio after reinsurance in property and casualty insurance decreased to 61.3 per cent in 2021 (2020: 63.2percent). At around €94 million, the claim load from natural catastrophes was far above the average of recent years. In particular, there were decreasing claims expenses in the area of motor vehicle insurance due to lower mobil- ity levels in 2021 in connection with Covid-19. The com- bined ratio after reinsurance therefore improved strongly to 93.7per cent due to the lower cost ratio at Group level (2020: 97.8 per cent). Combined ratio after reinsurance In per cent 2017 20192018 2020 2021 Loss ratio Cost ratio 97.5 96.4 96.8 97.8 93.7 61.3 63.2 64.2 65.4 65.9 31.6 32.2 31.4 34.6 32.4 Operating expenses Total consolidated operating expenses (see note 9 in the consolidated financial statements), less reinsurance com- missions received and the share of profit from reinsurance ceded, rose by 5.2 per cent to €1,648.5 million in the 2021 financial year (2020: €1,566.4 million). The expenses for the acquisition of insurance less reinsurance commissions received and the share of profit from reinsurance ceded amounting to €23.6 million (2020: €18.5 million) increased less than the volume of premiums earned by 10.1 per cent to €1,029.2 million (2020: €934.9 million). Other operat- ing expenses decreased by 1.9 per cent to €619.4 million (2020:€631.5 million). This includes expenses amounting to around €60 million (2020: around €62 million) as part of the innovation and investment programme. A one-off restructuring provision of around €100 million was included in the 2020 financial year affecting costs. However, the full costs of the former AXA CEE companies amounting to more than €100 million are included in 2021 due to the full-year consolidation. The decrease in operat- ing expenses is therefore due in part to the initial successes from the cost programme. The cost ratio after reinsurance, i.e. the ratio of total operating expens- es less the amounts received from reinsurance commission and share of profit from reinsurance ceded to the Group premiums earned, including savings portions from unit-linked and index-linked life insurance, increased to 27.4 per cent during the past year as a result of 45 Group Management Report GROUP MANAGEMENT REPORT the developments mentioned above (2020:29.4 per cent). The cost ratio before reinsurance fell to 26.4 per cent (2020:28.6percent). Investments The UNIQA Group’s investment portfolio (including investment property, financial assets accounted for using the equity method and other investments) decreased by 2.4percent to €21,785.0 million in the 2021 financial year (31 December 2020: €22,319.2 million). Net investment income increased by 28.2 per cent to €648.0 million (2020: €505.4 million). This was mainly due to realisations from equity funds, fixed-income secu- rities and, to a lesser extent, gains from the sale of prop- erties. Currency effects amounting to €8.8 million had a negative impact on net investment income. In addition, the equity method accounting of the 15.3 per cent holding in STRABAG SE in 2021 resulted in a positive contribution to earnings of €70.5 million (2020: €56.0 million). A detailed description of net investment income can be found in the consolidated financial statements (see note 4 in the consol- idated financial statements). Other income and other expenses Other income rose by 38.7 per cent in 2021 to €300.4mil- lion (2020: €216.5 million). Other expenses grew less strongly in the reporting year by 8.7 per cent to €250.6mil- lion (2020: €230.5 million). Results The UNIQA Group’s technical result increased by 167.2percent to €209.2million in 2021 due to the improved cost development and the favourable claim load (2020: €78.3million). Operating profit increased by 137.4per cent to €588.0million (2020: €247.6mil- lion). Accordingly, UNIQA’s earnings before taxes increased almost sevenfold to €382.3 million (2020: €57.1 million). Profit/(loss) for the year also increased in the reporting year to €317.9 million (2020: €24.3 million). Income tax expense increased to €64.4 million in 2021 due to the good result (2020: €32.8 million). Earnings before taxes In € million 2017 20192018 2020 2021 265 232 295 57 382 The consolidated profit/(loss) (share of the profit/(loss) for the period attributable to the shareholders of UNIQA Insurance Group AG) amounted to €314.7 million (2020: €19.4million). Earnings per share rose as a result to €1.03 (2020: €0.06). Health insurance In € million 2021 2020 2019 Premiums written 1,226.5 1,167.6 1,130.8 Insurance benefits (net) – 997.7 – 963.1 – 969.3 Operating expenses (net) – 206.6 – 225.0 – 187.8 Cost ratio (net after reinsurance) 17.0% 19.3% 16.7% Net investment income 163.1 104.5 109.0 Earnings before taxes 173.0 79.5 85.8 Technical provisions (net) 3,812.8 3,622.8 3,433.9 46 Earnings per share In € 0.56 0.56 0.79 0.06 1.03 2017 20192018 2020 2021 The return on equity (after taxes and non-controlling interests) rose to 9.3 per cent in the reporting year (2020: 0.6percent). Operating return on equity In per cent 2017 20192018 2020 2021 5.1 5.4 7.9 9.3 0.6 On this basis, the Management Board will propose to the Supervisory Board and the Annual General Meeting the distribution of a dividend of 55 cents per share (2020: 18cents per share). 1) Proposal to the Annual General Meeting Dividend per share In € 0.55 1) 2017 20192018 2020 2021 0.53 0.51 0.18 0.18 Own funds and total assets The equity attributable to the shareholders of UNIQA Insurance Group AG fell in the past financial year by €146.5million to €3,303.6 million (31 December 2020: €3,450.1 million). The reason for this was the fall in the measurement of financial instruments available forsale through the increase in the general interest rate level. Non-controlling interests amounted to €19.7 million (31December 2020: €24.8 million). The Group’s total assets came to €31,547.8 million as at 31 December 2021 (31December 2020: €31,908.0 million). Cash flow UNIQA’s net cash flow from operating activities amounted to €726.1 million in 2021 (2020: €167.9 million). Cash flow from investment activities amounted to € –653.2 million (2020: €–714.7million). Net cash flows from financing ac- tivities amounted to €–127.9 million (2020: €712.8 million). Overall, cash and cash equivalents decreased slightly by €48.1 million in the 2021 financial year to €592.6 million (2020: €640.7 million). 47 Group Management Report GROUP MANAGEMENT REPORT Employees UNIQA’s average number of employees (full-time equiva- lents, FTEs) increased to 14,849 FTEs in 2021 due to the inclusion of the AXA CEE companies (2020: 13,408). This includes 4,005 FTEs (2020: 4,138) as field sales employees. The number of employees in administration amounted to 10,844 FTEs (2020: 9,271). In the Central Europe (CE) region – Poland, Slovakia, the Czech Republic and Hungary – the Group employed an av- erage of 4,887 FTEs in 2021 (2020: 3,231), while 2,286 FTEs (2020: 2,285) were employed in the Southeastern Europe (SEE) region – Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Montenegro, North Macedonia and Ser- bia– and 1,599 FTEs (2020: 1,622) in the Eastern Europe (EE) region of Romania and Ukraine. There were 110 FTEs working in Russia (RU) (2020: 103). The average number of FTEs in the Western European markets in 2021 was 42 (2020: 42). A total of 5,925 FTEs were employed in Austria (2020: 6,125). Including the employees of the general agen- cies working exclusively for UNIQA, the total number of people working for the Group amounts to around 22,400. In 2021, 51 per cent (2020: 60 per cent) of the staff work- ing in administrative positions at UNIQA in Austria were women. In sales, the ratio was 80 per cent men to 20 per cent women (2020: 80 per cent men to 20 per cent women). 17.3per cent (2020: 24.6 per cent) of employees were work- ing part-time. The average age in the past year was 44 years (2020: 44.5 years). In Austria almost all employees have a share in the company’s success through some form of variable participation programme. There is a bonus system in place for manag- ers and selected key employees on the one hand and a profit-sharing scheme for eligible employees on the other. In 2021, around 13 per cent of employees participated in the bonus programme for managers and selected key employees, a variable remuneration system that is linked to both the success of the company and personal performance (2020: no bonus in place). Around 73 per cent of employees will participate in the profit-sharing scheme for 2021 (2020: no employee partic- ipation). The amount of the profit-sharing budget depends on the achievement of a profit target, and distributions will only take place after the company’s success has been deter- mined in the following year. In addition, UNIQA offers young people in training the opportunity to get to know foreign cultures and make international contacts. Currently 88 apprentices are being trained. Life insurance In € million 2021 2020 2019 Premiums written, including savings portions from unit-linked and index-linked life insurance 1,642.0 1,387.5 1,394.9 Insurance benefits (net) – 1,141.4 – 956.4 – 977.3 Operating expenses (net) – 404.1 – 370.7 – 358.1 Cost ratio (net after reinsurance) 25.2% 27.2% 26.1% Net investment income 349.6 371.3 354.1 Earnings before taxes 102.0 45.5 84.8 Technical provisions (net) 15,907.0 16,442.0 15,588.7 of which technical provisions from unit-linked and index-linked life insurance (net) 5,028.5 5,115.4 4,646.0 48 Operating segments UNIQA Austria Premiums written (including savings portions from unit-linked and index-linked life insurance) rose to €3,916.6 million Cost ratio reduced to 20.0 per cent through consistent cost programme Combined ratio improved from 98.7 per cent to 91.7 per cent Earnings before taxes of €339.2 million Changes in premiums At UNIQA Austria, premiums written including savings portions from unit-linked and index-linked life insurance increased by 2.1 per cent to €3,916.6 million in 2021 (2020: €3,837.5 million). Recurring premiums rose by 1.5percent to €3,864.1 million (2020: €3,807.7 million). The single premium business increased to €52.5 million (2020: €29.8million). Including savings portions from unit-linked and index- linked life insurance, the volume of premiums earned at UNIQA Austria amounted to €3,113.3 million (2020: €3,076.7 million). The volume of premiums earned (net, in accordance with IFRSs) rose in 2021 by 1.1 per cent to €2,900.1 million (2020: €2,869.7 million). While premiums written in property and casualty in- surance rose by 3.4 per cent to €1,857.6 million (2020: €1,796.1million), they rose in health insurance by 2.8percent to €1,120.5 million (2020: €1,089.6 million). In life insurance (including savings portions from the unit- linked and index-linked life insurance) they fell slightly by 1.4percent to €938.5 million (2020: €951.8 million). UNIQA Austria In € million 2021 2020 2019 Premiums written, including savings portions from unit-linked and index-linked life insurance 3,916.6 3,837.5 3,800.8 Cost ratio (net after reinsurance) 20.0% 23.4% 20.8% Combined ratio (net after reinsurance) 91.7% 98.7% 93.9% Earnings before taxes 339.2 – 119.1 159.6 Property and casualty insurance In € million 2021 2020 2019 Premiums written 1,857.6 1,796.1 1,760.7 Insurance benefits (net) – 684.8 – 698.6 – 688.3 Loss ratio (after reinsurance) 63.0% 65.5% 65.6% Operating expenses (net) – 311.9 – 353.7 – 297.4 Cost ratio (net after reinsurance) 28.7% 33.2% 28.3% Combined ratio (net after reinsurance) 91.7% 98.7% 93.9% Net investment income 132.9 – 196.1 33.7 Earnings before taxes 191.3 – 197.3 83.1 Technical provisions (net) 1,189.6 1,171.6 1,099.3 49 Group Management Report GROUP MANAGEMENT REPORT Premiums written including savings portions from unit-linked and index-linked life insurance – UNIQA Austria In € million 3,657 3,801 3,734 3,838 3,917 2017 20192018 2020 2021 In property and casualty insurance, premiums earned (net, according to IFRSs) rose by 1.9 per cent to €1,086.7mil- lion (2020: €1,066.1 million) and in health insurance by 2.6percent to €1,111.1 million (2020: €1,082.7 million). However, in life insurance they fell by 2.6 per cent to €702.3million (2020: €720.9 million). Including savings portions from unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €915.5 million (2020: €927.9 million). Change in insurance benefits Net insurance benefits at UNIQA Austria increased by 2.5per cent to €2,442.3 million in 2021 (2020: €2,383.7million). They even fell by 2.0 per cent in prop- erty and casualty insurance to €684.8 million, despite the growth in premiums earned (2020: €698.6 million). As a result, the loss ratio in property and casualty insurance improved to 63.0percent in 2021 (2020: 65.5 per cent). The combined ratio after reinsurance in the UNIQA Austria segment decreased significantly to 91.7 per cent, due to the improved cost ratio (2020: 98.7per cent). Net insurance benefits in health insurance in- creased by 3.4percent to €947.7mil- lion (2020: €916.9 million). In life insurance, they rose by 5.4 per cent to €809.8million (2020: €768.2mil- lion). Operating expenses Operating expenses less reinsurance commissions re- ceived and the share of profit from reinsurance ceded of €201.7million (2020: €194.3 million) decreased by 13.5percent to €622.2 million in the 2021 financial year (2020: €719.3 million). In the previous year, operating expenses were higher due to extraordinary restructuring expenses. They fell 11.8per cent in property and casualty insurance to €311.9million (2020: €353.7 million). In health insurance, they also decreased by 14.6 per cent to €151.1 million (2020: €176.9 million). They also decreased in life insurance by 15.6 per cent to €159.3 million (2020: €188.8 million). The cost ratio of UNIQA Austria after reinsurance, i.e. the ratio of total operating expenses, less reinsurance commission and share of profit from reinsurance ceded, to premiums earned, including savings portions from unit- linked and index-linked life insurance, thus decreased to 20.0percent during the past year (2020: 23.4 per cent). Net investment income Net investment income in the UNIQA Austria segment rose by 252.8per cent to €567.3million in 2021 (2020: €160.8million). Health insurance In € million 2021 2020 2019 Premiums written 1,120.5 1,089.6 1,056.3 Insurance benefits (net) – 947.7 – 916.9 – 927.8 Operating expenses (net) – 151.1 – 176.9 – 153.3 Cost ratio (net after reinsurance) 13.6% 16.3% 14.6% Net investment income 112.0 95.1 101.2 Earnings before taxes 124.7 84.6 70.9 Technical provisions (net) 3,753.4 3,573.2 3,386.2 50 Earnings before taxes Primarily as a result of the decrease in costs and the good claims development as well as the increase in net invest- ment income, UNIQA Austria’s earnings before taxes rose in the reporting year to €339.2 million (2020: €–119.1mil- lion). In property and casualty insurance, they improved to €191.3 million (2020: €–197.3million). In health insurance, they increased by 47.4 per cent to €124.7 million (2020: €84.6 million). In life insurance, earnings before taxes grew to €23.3 million (2020: €–6.3million). 263 160 232 – 119 339 Earnings before taxes UNIQA Austria In € million 2017 20192018 2021 2020 Life insurance In € million 2021 2020 2019 Premiums written, including savings portions from unit-linked and index-linked life insurance 938.5 951.8 983.9 Insurance benefits (net) – 809.8 – 768.2 – 810.3 Operating expenses (net) – 159.3 – 188.8 – 185.1 Cost ratio (net after reinsurance) 17.4% 20.3% 19.3% Net investment income 322.5 261.9 289.1 Earnings before taxes 23.3 – 6.3 5.5 Technical provisions (net) 13,181.5 13,817.0 13,940.2 51 Group Management Report GROUP MANAGEMENT REPORT UNIQA International Premiums written (including savings portions from unit-linked and index-linked life insurance) rose to €2,423.3 million Combined ratio further improved to an excellent 92.9 per cent The technical result rose to €100.1 million Earnings before taxes at €133.7 million due to improvement in technical result UNIQA International In € million 2021 2020 2019 Premiums written, including savings portions from unit-linked and index-linked life insurance 2,423.3 1,705.4 1,561.2 Cost ratio (net after reinsurance) 35.5% 38.8% 38.3% Combined ratio (net after reinsurance) 92.9% 93.3% 95.0% Earnings before taxes 133.7 – 27.0 16.0 Changes in premiums Premiums written, including savings portions from unit- linked and index-linked life insurance, increased in the UNIQA International segment in 2021 by 42.1 per cent to €2,423.3 million as a result of the acquisition of the former AXA companies in Poland, the Czech Republic and Slovakia (2020: €1,705.4 million). While recurring premiums increased by 41.6 per cent to €2,325.6million (2020: €1.642.1million), single premium income rose by 54.1 per cent to €97.7 million (2020: €63.4million). The international companies thereby contributed a total of 38.1percent in 2021 (2020: 30.6 per cent) to the total Group premiums. Including savings portions from unit-linked and index- linked life insurance, UNIQA International’s volume of premiums earned amounted to €1,671.3 million (2020: €1,200.5 million). The volume of premiums earned (net, in accordance with IFRSs) increased in 2021 by 41.4 per cent to €1,559.9 million (2020: €1,103.4 million). While premiums written in property and casualty in- surance grew by 35.7 per cent to €1,618.7 million (2020: €1,192.6 million), they rose in health insurance by 36.0percent to €106.0 million (2020: €77.9 million). In lifeinsurance, premiums written (including savings portions from unit-linked and index-linked life insurance) rose by 60.6percent to €698.6 million (2020: €434.9 mil- lion). Premiums written including savings portions from unit-linked and index-linked life insurance – UNIQA International In € million 1,609 1,5611,565 1,705 2,423 2017 2019 2018 2020 2021 In property and casualty insurance, premiums earned (net, according to IFRSs) rose by 28.4 per cent to €902.4million (2020: €702.5 million), in health insurance they grew by 25.5 per cent to €93.4 million (2020: €74.4 million). In life insurance, they increased by 72.8 per cent to €564.1mil- lion (2020: €326.4 million). Including savings portions from unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €675.5million (2020: €423.5 million). 52 In Central Europe (CE) – which includes Poland, Slovakia, the Czech Republic and Hungary – premiums written in- cluding savings portions from unit-linked and index-linked life insurance increased in the 2021 financial year by 57.9per cent to €1,805.1 million due to the inclusion of the former AXA-CEE companies (2020: €1,143.5 million). In Eastern Europe (EE) – consisting of Romania and Ukraine– they rose by 9.7 per cent to €211.8 million (2020: €193.1 million). In Southeastern Europe (SEE) – compris- ing Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia and Serbia – pre- miums written including savings portions from unit-linked and index-linked life insurance grew by 11.8 per cent to €323.7 million in 2021 (2020: €289.5 million). In Russia (RU), they rose by 3.3 per cent to €73.7 million (2020: €71.4million). In Western Europe (WE), they amounted to €8.9 million (2020: €8.0 million). Change in insurance benefits Net insurance benefits at UNIQA International increased in 2021 by 43.9 per cent to €875.0 million (2020:€608.1mil- lion). They rose 31.0per cent in property and casualty in- surance to €505.8million (2020: €386.2million). In health insurance, they grew 18.3 per cent to reach €49.9million (2020: €42.2 million). In life insurance, they also increased by 77.6 per cent to €319.3 million (2020: €179.8 million). As a result, the loss ratio in property and casualty in- surance rose slightly to 56.1 per cent in 2021 (2020: 55.0 per cent), the com- bined ratio after reinsurance of the UNIQA International segment nev- ertheless improved to 92.9percent (2020: 93.3per cent). In the Central Europe (CE) region, insurance benefits rose by 63.2 per cent to €607.8 million in 2021 (2020: €372.5 million), in the Eastern Europe (EE) region they increased by 16.2 per cent to €74.0million (2020: €63.7 million). In Southeast- ern Europe (SEE), they increased by 13.0 per cent to €130.7million (2020:€115.6 million). At €61.7mil- lion in Russia, benefits were 12.4percent above the previous year’s level (2020: €54.9 million). In Western Europe, they decreased to €0.8 million (2020: €1.3 million). Operating expenses Operating expenses less reinsurance commissions re- ceived and the share of profit from reinsurance ceded of €185.7million (2020: €129.2 million) increased by 27.1percent to €592.7 million in the 2021 financial year (2020: €466.4 million). They rose by 23.3 per cent in property and casualty insurance to €332.2 million (2020: €269.4million), in health insurance they grew by 32.0percent to €36.1 million (2020: €27.4 million). In life insurance, they increased by 32.3 per cent to €224.4 mil- lion (2020: €169.6million). The cost ratio of UNIQA International after reinsurance, i.e. the ratio of total operating expenses, less reinsurance commission and share of profit from reinsurance ceded, to premiums earned, including savings portions from unit-linked and index-linked life insurance, amounted to 35.5per cent during the past year (2020: 38.8 per cent). In Central Europe, operating expenses less reinsurance commissions received and the share of profit from reinsur- ance ceded rose by 48.6 per cent to €381.7 million in the re- porting period (2020: €256.9 million). In Eastern Europe, Property and casualty insurance In € million 2021 2020 2019 Premiums written 1,618.7 1,192.6 1,076.9 Insurance benefits (net) – 505.8 – 386.2 – 347.6 Loss ratio (after reinsurance) 56.1% 55.0% 56.6% Operating expenses (net) – 332.2 – 269.4 – 235.7 Cost ratio (net after reinsurance) 36.8% 38.3% 38.4% Combined ratio (net after reinsurance) 92.9% 93.3% 95.0% Net investment income 34.8 34.2 25.3 Earnings before taxes 36.2 – 37.2 – 30.5 Technical provisions (net) 1,220.3 1,275.9 678.6 Health insurance In € million 2021 2020 2019 Premiums written 106.0 77.9 74.6 Insurance benefits (net) – 49.9 – 42.2 – 38.8 Operating expenses (net) – 36.1 – 27.4 – 21.3 Cost ratio (net after reinsurance) 38.7% 36.8% 31.8% Net investment income 0.2 0.0 0.4 Earnings before taxes 7.0 4.5 7.1 Technical provisions (net) 56.4 46.0 44.8 53 Group Management Report GROUP MANAGEMENT REPORT they increased slightly by 1.8 per cent to €70.6million (2020:€69.3 million). In Southeastern Europe they grew by 2.9 per cent to €104.4 million (2020: €101.5 million). In Russia, costs fell by 9.1 per cent to €12.2 million (2020: €13.4 million), while in Western Europe they amounted to €1.8 million (2020: €1.4 million). In administration (UNIQA International AG), costs fell by 7.5 per cent to €22.1 million (2020: €23.8 million). Net investment income Net investment income in the segment dropped by 32.1percent to €72.0 million in 2021 (2020: €106.1 million). Life insurance In € million 2021 2020 2019 Premiums written, including savings portions from unit-linked and index-linked life insurance 698.6 434.9 409.8 Insurance benefits (net) – 319.3 – 179.8 – 155.1 Operating expenses (net) – 224.4 – 169.6 – 157.9 Cost ratio (net after reinsurance) 33.2% 40.0% 39.3% Net investment income 37.0 71.8 35.9 Earnings before taxes 90.5 5.7 39.4 Technical provisions (net) 2,756.5 2,651.6 1,654.4 Earnings before taxes Earnings before taxes in the UNIQAInternational segment rose to €133.7 million in the reporting year due to the improvement in the technical result (2020: €–27.0mil- lion). In property and casualty insurance, earnings before taxes therefore increased to €36.2mil- lion (2020: €–37.2 million), in health insurance they increased by 55.9percent to €7.0 million (2020: €4.5 million). Finally, in life insur- ance, earnings before taxes grew to€90.5 million (2020: €5.7 million). Earnings before taxes UNIQA International In € million 43 16 55 – 27 134 2017 20192018 2020 2021 54 Group functions Group functions In € million 2021 2020 2019 Operating expenses (net) – 67.9 – 80.0 – 48.5 Net investment income 606.8 96.2 356.3 Earnings before taxes 377.9 – 48.5 255.0 In the Group functions segment, operating expenses dropped by 15.1 per cent to €67.9 million (2020: €80.0mil- lion). Reinsurance Reinsurance In € million 2021 2020 2019 Premiums written 1,469.5 1,162.7 1,129.2 Insurance benefits (net) – 788.0 – 700.6 – 700.4 Operating expenses (net) – 359.8 – 311.0 – 303.7 Cost ratio (net after reinsurance) 29.3% 29.4% 29.5% Earnings before taxes 95.6 58.3 33.5 Technical provisions (net) 1,564.6 1,373.6 1,406.4 In the reinsurance segment, the volume of premiums writ- ten rose in 2021 by 26.4 per cent to €1,469.5 million (2020: €1,162.7 million). Premiums written including savings portions from unit-linked and index-linked life insurance – reinsurance In € million 1,092 1,129 1,098 1,163 1,470 2017 20192018 2020 2021 The volume of premiums earned (net, in accordance with IFRSs) increased by 16.4 per cent to €1,229.2 million (2020: €1,056.1 million). Net insurance benefits rose by 12.5 per cent to €788.0 mil- lion in 2021 (2020: €700.6 million). Operating expenses less reinsurance commissions re- ceived and the share of profit from reinsurance ceded of €10.4million (2020: €12.2 million) rose by 15.7 per cent to €359.8million (2020: €311.0 million). Net investment income increased to €33.7 million in 2021 (2020: €6.9 million). Earnings before taxes in the reinsurance segment increased by 64.0 per cent to €95.6 million (2020: €58.3 million). Net investment income increased to €606.8 million (2020: €96.2 million). Earnings before taxes increased to €377.9 million in the 2021 financial year (2020: €–48.5million). 55 Group Management Report GROUP MANAGEMENT REPORT Net investment income in the consolidation segment in 2021 amounted to €–631.9 million (2020: €135.4 million). Earnings before taxes were €–564.1 million (2020: €193.4million). Significant events after the reporting date The conflict between Ukraine and Russia, which has been going on for several years, escalated at the end of February 2022. UNIQA is represented in Ukraine by two insurance companies and three real estate companies. In Russia, UNIQA holds 75 percent of a life insurance company (the remaining 25 percent is held by JSC Raiffeisenbank). Due to the inability as yet to assess this constantly changing situation, it is not possible to make a conclusive assessment of the future effects on UNIQA at the time of preparing the consolidated financial statements. This is a value- impacting event occurring in 2022 after the reporting date so there will be no impact on these consolidated financial statements as at 31 December 2021. In 2021, the premiums written in Ukraine amounted to around €110 million and in Russia to around €75 million– a total therefore of around 3 per cent of UNIQA’s total premiums written. The assets attributable to the insurance companies in Ukraine amount to around €140 million as at 31 December 2021, around €90 million of which are invest- ments. The real estate companies in Ukraine had assets of around €20 million at the end of 2021. In Russia, the assets attributable to the share held by UNIQA amount to around €250 million, with around €230 million of this attributable to investments. Should there be a loss of control over the companies from a consolidation perspective without any consideration being received, there would be a negative effect on the consoli- dated income statement of the companies in Ukraine of around €95 million as at the end of 2021. The effect on the UNIQA share of the company in Russia would amount to around €43 million as at the end of 2021. In addition, other Group companies hold investments issued by Ukrainian and Russian issuers. The carrying amount of these investments was around €200 million as at 31 December 2021. Further developments in the situation are being monitored and appropriate measures will be implemented as neces- sary to keep the impact on UNIQA to a minimum. Outlook Economic outlook The IMF is currently forecasting economic growth of 3.9per cent for Austria. However, any forecast regarding the overall economic development in our markets is currently associated with greater uncertainty than it has been for a long time. The consequences of the war in Ukraine, the pandemic situa- tion, the inflation trend and the associated reaction of the central banks as well as the further development on the international capital markets are all very difficult to assess at the moment. The ECB is still keeping key interest rates unchanged de- spite rising inflation. However, the pandemic-related PEPP bond-buying programme will come to an end in the first quarter of 2022. According to the ECB, a temporary growth in inflation is expected, which will return to normal in 2022. Whether this assessment is justified will become clear in the further course of the year. Consolidation Consolidation In € million 2021 2020 2019 Net investment income – 631.9 135.4 – 286.2 Earnings before taxes – 564.1 193.4 – 232.1 56 Business outlook In contrast to the overall economic environment, we con- tinue to assess the situation in our core technical business as solid. Our insurance business has shown great resilience in the pandemic. Our customers did not waive their insur- ance coverage despite the economic challenges, meaning that the rate of cancellations remained very moderate for the given conditions. This also makes us optimistic about the premium volume for 2022. However, due to the conflict in Ukraine triggered by the Russian attack and the related sanctions, we cannot make any meaningful forecast on the business performance in these two countries at present. At Group level, however, this represents less than 3 percent of premiums written. The claims expense directly related to Covid-19 has already been fully recognised in 2020 and therefore has no signifi- cant impact on the 2022 financial year. We continued the largest restructuring in our company’s history in the past financial year and the programme is al- ready showing evidence of initial successes. However, strict cost discipline and further optimisations remain essential for 2022 in order to stabilise administrative costs despite high investment needs. In summary, we do not see any significant distortions in our core technical business despite an environment that is very difficult to assess. This means that we expect stable or slightly increasing premiums in 2022 and assume a com- bined ratio at around the same level as in 2021. However, we are currently unable to provide a solid as- sessment of capital market developments and therefore cannot make a stable forecast regarding our net investment income. The dividend distribution is based on the company’s prof- its. UNIQA plans to distribute 50 to 60 per cent of consoli- dated profit to shareholders in the form of a dividend. Information pursuant to Section 243a(1) of the Austrian Commercial Code 1. The share capital of UNIQA Insurance Group AG amounts to €309,000,000 and is comprised of 309,000,000 individual no-par-value bearer shares. €285,356,365 of the share capital was fully paid in cash and €23,643,635 was paid in non-cash contributions. All shares confer the same rights and obligations. 2. A voting trust exists for shareholdings of UNIQA Versicherungsverein Privatstiftung, Austria Ver- sicherungsverein Beteiligungs-Verwaltungs GmbH, Col- legialität Versicherungsverein Privatstiftung and RZB Versicherungsbeteiligung GmbH. Reciprocal purchase option rights have been agreed upon. 3. Raiffeisen Bank International AG holds indirectly, via RZB – BLS Holding GmbH and RZB Versicherungs- beteiligung GmbH, a total of 10.87 per cent (allocated in accordance with the Austrian Stock Exchange Act) of the company’s share capital; UNIQA Versicherungsverein Privatstiftung holds directly and indirectly through Austria Versicherungsverein Beteiligungs-Verwaltungs GmbH a total of 49.00 per cent (allocated in accordance with the Austrian Stock Exchange Act) of the company’s share capital. 4. No shares with special control rights have been issued. 5. The employees who have share capital exercise their voting rights directly. 6. There are no provisions of the Articles of Association or other provisions that go beyond the statutory provisions for appointing Management Board and Supervisory Board members or for modifying the Articles of Associ- ation, with the exception of the rule that, when a Super- visory Board member turns 70 years of age, they retire from the Supervisory Board at the end of the next Annual General Meeting. 7. The Management Board is authorised to increase the company’s equity capital up to and including 30 June 2024 with the approval of the Supervisory Board by a total of no more than €80,000,000 by issuing up to 80,000,000 no-par-value bearer or registered shares conferring voting rights in exchange for payment in cash or in kind, one time or several times. The Management Board is further authorised until 30 May 2023 to buy back up to 30,900,000 treasury shares (together with 57 Group Management Report GROUP MANAGEMENT REPORT other treasury shares that the company has already acquired and still possesses) through the company and/ or through subsidiaries of the company (Section 66 of the Stock Corporation Act). The company held 2,034,739 treasury shares as at 31 December 2021. 1,215,089 treasury shares are held through UNIQA Österreich Versicherungen AG. This share portfolio resulted from the merger in 2016 of BL Syndikat Beteiligungs Ge- sellschaft m.b.H. as the transferring company, with UNIQA Insurance Group AG as acquiring company (pay- ment of portfolio in UNIQA shares to shareholders of BL Syndikat Beteiligungs Gesellschaft m.b.H.). This share portfolio is not to be included in the highest number of treasury shares. 8. Corresponding agreements with other shareholders of STRABAG SE are in place concerning the holding in this company. 9. No reimbursement agreements exist for the event of a public takeover offer. Information pursuant to Section 243a(2) of the Austrian Commercial Code The internal control and risk management system at UNIQA Insurance Group AG is comprised of transparent systems that encompass all company activities and include a systematic and permanent approach, based on a defined risk strategy, with the following elements: identification, analysis, measurement, management, documentation and communication of risks, as well as the monitoring of these activities. The scope and orientation of these systems were designed on the basis of company-specific requirements. Despite creating appropriate frameworks, there is always a certain residual risk because even appropriate and func- tional systems cannot guarantee absolute security with regard to the identification and management of risks. Objectives: a) Identification and measurement of risks that could obstruct the goal of producing (consolidated) financial statements that comply with regulations b) Limiting recognised risks, for example by consulting with external specialists c) Review of external risks with regard to their influence on the consolidated financial statements and the corre- sponding reporting of these risks The aim of the internal control system in the accounting process is to guarantee sufficient security by means of im- plementing controls so that, despite identified risks, proper financial statements are prepared. Along with the risks described in the Risk Report, the risk management system also analyses additional risks within internal business processes, compliance, internal reporting, etc. Organisational structure and control environment The company’s accounting process is incorporated into the UNIQA Group accounting process. In addition to the SAP S/4HANA accounting system, a harmonised insur- ance-specific IT system is also used for the company’s purposes. Compliance guidelines and manuals for compa- ny organisation, accounting and consolidation exist for the purpose of guaranteeing secure processes. Identification and control of risks An inventory and appropriate control measures were con- ducted to identify existing risks. The type of controls was defined in the guidelines and instructions and coordinated with the existing authorisation concept. The controls include both manual coordination and comparison routines, as well as the acceptance of system configurations for connected IT systems. New risks and control weaknesses in the accounting process are quickly reported to management so that it can undertake correc- tive measures. The procedure for the identification and control of risks is evaluated on a regular basis by an exter- nal independent auditor. Information and communication Deviations from expected results and evaluations are monitored by means of monthly reports and key figures, and they form the foundation of information provided to management on an ongoing basis. The management review that is based on this information, and the approval of the processed data, form the foundation of further treatment in the company’s financial statements. 58 Measures to ensure effectiveness Rather than being made up of static systems, the internal control and risk management system is adjusted on an ongoing basis to changing requirements and the business environment. The identification of the necessity of chang- es requires constant monitoring of the effectiveness of all systems. The foundations for this are: a) Regular self-evaluations by the persons tasked with controls b) Evaluations of key data to validate transaction results in relation to indications that suggest control deficiencies c) Random tests of effectiveness by the Internal Audit department and comprehensive efficacy tests by the Internal Audit department and/or special teams Reporting to the Supervisory Board/Audit Committee In the context of compliance and internal control and risk management systems, the Management Board reports regularly to the Supervisory Board and the Audit Commit- tee by means of Internal Audit department reports and the separate engagement of external auditors. Proposed appropriation of profit The separate financial statements of UNIQA Insurance Group AG, prepared in accordance with the Austrian Commercial Code (UGB) and the Insurance Supervision Act (VAG), show a net profit of €171,031,286.15 for the 2021 financial year (2020: €55,722,592.34). The Management Board will propose to the Annual General Meeting on 23May 2022 that this net profit be used for a dividend of 55 cents for each of the 309,000,000 dividend-entitled no-par-value shares issued as at the reporting date and the remaining amount carried forward to a new account. Vienna, 9 March 2022 Andreas Brandstetter Chairman of the Management Board Peter Eichler Member of the Management Board Wolf-Christoph Gerlach Member of the Management Board Peter Humer Member of the Management Board Wolfgang Kindl Member of the Management Board René Knapp Member of the Management Board Erik Leyers Member of the Management Board Klaus Pekarek Member of the Management Board Kurt Svoboda Member of the Management Board 59 Group Management Report GROUP MANAGEMENT REPORT 60 Consolidated Statement of Financial Position at 31 December 2021 Assets In € thousand Notes 31/12/2021 31/12/2020 Property, plant and equipment 12 365,493 364,739 Deferred acquisition costs and value of business in force 10 1,462,087 1,451,149 Intangible assets 11 712,287 647,619 Investments Investment property 1 1,241,860 1,219,213 Financial assets accounted for using the equity method 2 656,393 677,921 Other investments 3 19,886,724 20,422,107 Unit-linked and index-linked life insurance investments 3 5,154,053 5,218,124 Reinsurers’ share of technical provisions 5 591,671 514,268 Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance 6 0 131 Receivables, including insurance receivables 13 714,823 684,249 Income tax receivables 15 84,900 59,130 Deferred tax assets 16 84,909 8,594 Cash 14 592,583 640,713 Total assets 31,547,783 31,907,957 Equity and liabilities In € thousand Notes 31/12/2021 31/12/2020 Equity Portion attributable to shareholders of UNIQA Insurance Group AG Subscribed capital and capital reserves 21 1,789,923 1,789,923 Treasury shares 22 –16,614 –16,614 Accumulated results 1,530,299 1,676,762 3,303,609 3,450,072 Non-controlling interests 24 19,678 24,760 3,323,286 3,474,832 Liabilities Subordinated liabilities 25 1,057,559 1,069,920 Technical provisions 5 19,174,105 19,195,742 Technical provisions for unit-linked and index-linked life insurance 6 5,028,507 5,115,506 Financial liabilities 26 723,317 693,566 Other provisions 17, 19 726,270 847,235 Liabilities and other items classified as liabilities 27 1,017,197 994,221 Income tax liabilities 15 115,393 93,051 Deferred tax liabilities 16 382,149 423,884 28,224,497 28,433,125 Total equity and liabilities 31,547,783 31,907,957 Consolidated Financial Statements 60 Consolidated Statement of Financial Position at 31 December 2021 Assets In € thousand Notes 31/12/2021 31/12/2020 Property, plant and equipment 12 365,493 364,739 Deferred acquisition costs and value of business in force 10 1,462,087 1,451,149 Intangible assets 11 712,287 647,619 Investments Investment property 1 1,241,860 1,219,213 Financial assets accounted for using the equity method 2 656,393 677,921 Other investments 3 19,886,724 20,422,107 Unit-linked and index-linked life insurance investments 3 5,154,053 5,218,124 Reinsurers’ share of technical provisions 5 591,671 514,268 Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance 6 0 131 Receivables, including insurance receivables 13 714,823 684,249 Income tax receivables 15 84,900 59,130 Deferred tax assets 16 84,909 8,594 Cash 14 592,583 640,713 Total assets 31,547,783 31,907,957 Equity and liabilities In € thousand Notes 31/12/2021 31/12/2020 Equity Portion attributable to shareholders of UNIQA Insurance Group AG Subscribed capital and capital reserves 21 1,789,923 1,789,923 Treasury shares 22 –16,614 –16,614 Accumulated results 1,530,299 1,676,762 3,303,609 3,450,072 Non-controlling interests 24 19,678 24,760 3,323,286 3,474,832 Liabilities Subordinated liabilities 25 1,057,559 1,069,920 Technical provisions 5 19,174,105 19,195,742 Technical provisions for unit-linked and index-linked life insurance 6 5,028,507 5,115,506 Financial liabilities 26 723,317 693,566 Other provisions 17, 19 726,270 847,235 Liabilities and other items classified as liabilities 27 1,017,197 994,221 Income tax liabilities 15 115,393 93,051 Deferred tax liabilities 16 382,149 423,884 28,224,497 28,433,125 Total equity and liabilities 31,547,783 31,907,957 Consolidated Financial Statements 61 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Consolidated Income Statement from 1 January until 31 December 2021 In € thousand Notes 1–12/2021 1–12/2020 Premiums earned (net) 7 Gross 5,997,224 5,231,531 Reinsurers’ share –299,652 –201,992 5,697,572 5,029,539 Technical interest income 318,949 322,125 Other insurance income Gross 27,973 41,302 Reinsurers’ share 308 368 28,281 41,669 Insurance benefits 8 Gross –4,365,526 –3,819,752 Reinsurers’ share 261,323 125,174 –4,104,204 –3,694,579 Operating expenses 9 Expenses for the acquisition of insurance –1,052,751 –953,377 Other operating expenses –619,362 –631,546 Reinsurance commission and share of profit from reinsurance ceded 23,586 18,524 –1,648,527 –1,566,399 Other technical expenses Gross –79,555 –49,830 Reinsurers’ share –3,319 –4,232 –82,874 –54,061 Technical result 209,197 78,295 Net investment income 4 Income from investments 835,058 773,686 Expenses from investments –268,193 –333,965 Financial assets accounted for using the equity method 81,087 65,689 647,951 505,409 Other income 28 300,381 216,548 Reclassification of technical interest income –318,949 –322,125 Other expenses 29 –250,619 –230,497 Non-technical result 378,765 169,335 Operating profit/(loss) 587,962 247,631 Amortisation of VBI and impairment of goodwill 10, 11 –70,911 –125,817 Finance cost –134,762 –64,758 Earnings before taxes 382,289 57,056 Income taxes 15 –64,385 –32,775 Profit/(loss) for the period 317,904 24,281 of which attributable to shareholders of UNIQA Insurance Group AG 314,696 19,405 of which attributable to non-controlling interests 3,207 4,876 Earnings per share (in €) 1) 1.03 0.06 Average number of shares in circulation 306,965,261 306,965,261 1) Diluted earnings per share equate to undiluted earnings per share. This is calculated on the basis of the consolidated profit/(loss). Consolidated Financial Statements 62 Consolidated Statement of Comprehensive Income from 1 January until 31 December 2021 In € thousand 1–12/2021 1–12/2020 Profit/(loss) for the period 317,904 24,281 Items not reclassified to profit or loss in subsequent periods Remeasurement of defined benefit obligations Gains (losses) recognised in equity 64,906 –35,708 Gains (losses) recognised in equity – deferred tax –16,225 8,913 Other income from financial assets accounted for using the equity method Gains (losses) recognised in equity –1,566 –5,188 47,115 –31,983 Items reclassified to profit or loss in subsequent periods Currency translation Gains (losses) recognised in equity 33,957 –48,135 Recognised in the consolidated income statement –7,100 0 Measurement of financial instruments available for sale Gains (losses) recognised in equity –1,018,659 632,111 Gains (losses) recognised in equity – deferred tax 95,149 –68,467 Gains (losses) recognised in equity – deferred profit participation 506,472 –339,329 Recognised in the consolidated income statement –142,878 –68,659 Recognised in the consolidated income statement – deferred tax 8,601 9,498 Recognised in the consolidated income statement – deferred profit participation 72,821 36,260 Other income from financial assets accounted for using the equity method Gains (losses) recognised in equity 8,836 –10,004 –442,801 143,275 Other comprehensive income –395,686 111,292 Total comprehensive income –77,783 135,573 of which attributable to shareholders of UNIQA Insurance Group AG –76,808 134,805 of which attributable to non-controlling interests –975 768 62 Consolidated Statement of Comprehensive Income from 1 January until 31 December 2021 In € thousand 1–12/2021 1–12/2020 Profit/(loss) for the period 317,904 24,281 Items not reclassified to profit or loss in subsequent periods Remeasurement of defined benefit obligations Gains (losses) recognised in equity 64,906 –35,708 Gains (losses) recognised in equity – deferred tax –16,225 8,913 Other income from financial assets accounted for using the equity method Gains (losses) recognised in equity –1,566 –5,188 47,115 –31,983 Items reclassified to profit or loss in subsequent periods Currency translation Gains (losses) recognised in equity 33,957 –48,135 Recognised in the consolidated income statement –7,100 0 Measurement of financial instruments available for sale Gains (losses) recognised in equity –1,018,659 632,111 Gains (losses) recognised in equity – deferred tax 95,149 –68,467 Gains (losses) recognised in equity – deferred profit participation 506,472 –339,329 Recognised in the consolidated income statement –142,878 –68,659 Recognised in the consolidated income statement – deferred tax 8,601 9,498 Recognised in the consolidated income statement – deferred profit participation 72,821 36,260 Other income from financial assets accounted for using the equity method Gains (losses) recognised in equity 8,836 –10,004 –442,801 143,275 Other comprehensive income –395,686 111,292 Total comprehensive income –77,783 135,573 of which attributable to shareholders of UNIQA Insurance Group AG –76,808 134,805 of which attributable to non-controlling interests –975 768 63 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statement of Cash Flows from 1 January until 31 December 2021 In € thousand Notes 1–12/2021 1–12/2020 Profit/(loss) for the period 317,904 24,281 Amortisation of VBI, impairment of goodwill and other intangible assets, and depreciation of property, plant and equipment 148,193 191,812 Impairment losses/reversal of impairment losses on other investments 56,902 132,409 Gain/loss on the disposal of investments –36,925 –40,089 Change in deferred acquisition costs –63,111 7,592 Change in securities at fair value through profit or loss –30,576 45,408 Change in direct insurance receivables 8,127 8,542 Change in other receivables –59,309 –6,437 Change in direct insurance liabilities –18,788 –56,653 Change in other liabilities 65,952 22,250 Change in technical provisions 393,384 –208,442 Change in defined benefit obligations –36,657 208 Change in deferred tax assets and deferred tax liabilities –34,583 –5,936 Change in other statement of financial position items 15,570 52,963 Net cash flow from operating activities 726,084 167,908 Proceeds from disposal of intangible assets and property, plant and equipment 25,352 13,712 Payments for acquisition of intangible assets and property, plant and equipment –173,070 –122,625 Proceeds from disposal of consolidated companies 1,440 587 Net payments for acquisition of consolidated companies –38,917 –967,128 Proceeds from disposal and maturity of other investments 3,334,346 3,466,661 Payments for acquisition of other investments –3,866,428 –3,447,712 Change in unit-linked and index-linked life insurance investments 64,070 341,815 Net cash flow from investing activities –653,207 –714,690 Dividend payments 21 –58,578 –56,658 Transactions between owners –11,818 –577 Proceeds from other financing activities 370,323 792,871 Payments from other financing activities 26 –427,860 –22,815 Net cash flow from financing activities –127,933 712,821 Change in cash and cash equivalents –55,057 166,039 of which due to acquisitions of consolidated subsidiaries 1,259 31,202 Change in cash and cash equivalents due to movements in exchange rates 6,927 –4,948 Cash and cash equivalents at beginning of year 14 640,713 479,621 Cash and cash equivalents at end of period 14 592,583 640,713 Income taxes paid (Net cash flow from operating activities) –102,334 –33,371 Interest paid (Net cash flow from operating activities) –151,136 –65,202 Interest received (Net cash flow from operating activities) 375,223 386,059 Dividends received (Net cash flow from operating activities) 147,558 43,544 Consolidated Financial Statements 64 Consolidated Statement of Changes in Equity Accumulated In € thousand Notes Subscribed capital and capital reserves Treasury shares Measurement of financial instruments available for sale Remeasurement of defined benefit obligations At 1 January 2020 1,789,923 –16,614 633,372 –314,860 Change in basis of consolidation Dividends to shareholders Total comprehensive income 200,033 –26,847 Profit/(loss) for the period Other comprehensive income 200,033 –26,847 At 31 December 2020 1,789,923 –16,614 833,405 –341,707 At 1 January 2021 1,789,923 –16,614 833,405 –341,707 Change in basis of consolidation Dividends to shareholders 21 Total comprehensive income –473,385 48,526 Profit/(loss) for the period Other comprehensive income –473,385 48,526 At 31 December 2021 1,789,923 –16,614 360,020 –293,180 64 Consolidated Statement of Changes in Equity Accumulated In € thousand Notes Subscribed capital and capital reserves Treasury shares Measurement of financial instruments available for sale Remeasurement of defined benefit obligations At 1 January 2020 1,789,923 –16,614 633,372 –314,860 Change in basis of consolidation Dividends to shareholders Total comprehensive income 200,033 –26,847 Profit/(loss) for the period Other comprehensive income 200,033 –26,847 At 31 December 2020 1,789,923 –16,614 833,405 –341,707 At 1 January 2021 1,789,923 –16,614 833,405 –341,707 Change in basis of consolidation Dividends to shareholders 21 Total comprehensive income –473,385 48,526 Profit/(loss) for the period Other comprehensive income –473,385 48,526 At 31 December 2021 1,789,923 –16,614 360,020 –293,180 65 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS results Differences from currency translation Other accumulated results Portion attributable to shareholders of UNIQA Insurance Group AG Non-controlling interests Total equity –170,286 1,446,185 3,367,720 19,399 3,387,119 2,801 2,801 5,998 8,799 –55,254 –55,254 –1,405 –56,658 –42,596 4,214 134,805 768 135,573 19,405 19,405 4,875 24,281 –42,596 –15,192 115,399 –4,107 111,292 –212,882 1,397,946 3,450,072 24,760 3,474,832 –212,882 1,397,946 3,450,072 24,760 3,474,832 –14,402 –14,402 –784 –15,185 –55,254 –55,254 –3,324 –58,578 26,085 321,966 –76,808 –975 –77,783 314,696 314,696 3,207 317,904 26,085 7,270 –391,504 –4,182 –395,686 –186,797 1,650,257 3,303,609 19,678 3,323,286 Consolidated Financial Statements 66 66 67 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Notes to the Consolidated Financial Statements GENERAL INFORMATION UNIQA Insurance Group AG (UNIQA) is a company domi- ciled in Austria. The address of the company’s registered office is Untere Donaustrasse 21, 1029 Vienna, Austria. The Group primarily conducts business with property and casualty, as well as health and life insurance. UNIQA Insurance Group AG is registered in the company registry of the Commercial Court of Vienna under FN 92933t. The shares of UNIQA Insurance Group AG are listed on the prime market segment of the Vienna Stock Exchange. UNIQA Insurance Group AG is subject to the regulatory requirements of European and Austrian supervisory au- thorities (Financial Market Authority, European Insur- ance and Occupational Pensions Authority). The require- ments include in particular the quantitative and qualita- tive solvency requirements. Unless otherwise stated, these consolidated financial statements are prepared in thousand euros; rounding differences may occur through the use of automated calcu- lation tools when totalling rounded amounts and percent- ages. The functional currency at UNIQA is the euro. UNIQA’s reporting date is 31 December. Accounting principles The consolidated financial statements were prepared in line with the International Financial Reporting Standards (IFRSs) as well as the provisions of the International Fi- nancial Reporting Interpretations Committee (IFRIC) as adopted by the European Union (EU) as at the reporting date. The additional requirements of Section 245a(1) of the Austrian Commercial Code and Section 138(8) of the Austrian Insurance Supervision Act were met. Use of discretionary decisions and estimates The consolidated financial statements require the Group Management Board to make discretionary decisions, esti- mates and assumptions that relate to the application of accounting policies and the amounts stated for the assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and their underlying as- sumptions are reviewed on an ongoing basis. Revisions to estimates are recorded prospectively. Discretionary judgements and assumptions regarding the future which could have a significant impact on these consolidated financial statements are described in the following notes: Note 1: Investment property (assumptions used in deter- mining fair values) Note 2: Financial assets accounted for using the equity method (assumptions and models used in STRABAG SE’s earnings estimates) Note 3: Other investments and unit-linked and index- linked life insurance investments (determination of fair values) Note 5 and Note 44: Technical provisions (assumptions and models used in calculating actuarial provisions) Note 11: Intangible assets (assumptions used in determin- ing goodwill) Note 16: Deferred taxes (assessment of the ability to real- ise deferred tax assets) Note 17: Defined benefit plans (calculation of the present value of the defined benefit obligations) Consolidated Financial Statements 68 The following table provides a summary of the measurement standards for the individual balance sheet items in the as- sets and liabilities: Balance sheet item Standard of measurement Assets Property, plant and equipment Amortised cost Intangible assets - with determinable useful life Amortised cost - with indeterminable useful life At lower of acquisition cost or recoverable amount Investments Investment property Amortised cost Financial assets accounted for using the equity method At lower of amortised pro-rata value of the equity or recoverable amount Other investments - Financial assets at fair value through profit or loss Fair value - Financial assets held for sale Fair value - Loans and receivables Amortised cost Unit-linked and index-linked life insurance investments Fair value Reinsurers’ share of technical provisions As per the measurement of technical provisions Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance As per the measurement of technical provisions Receivables, including insurance receivables Amortised cost Income tax receivables At the amount of any expected claims to the tax authorities, based on the tax rates applicable on the reporting date or in the near future Deferred tax assets Undiscounted measurement applying the tax rates that are expected for the period in which an asset is realised or a liability met Cash Amortised cost Assets in disposal groups held for sale Lower of carrying amount and fair value less cost to sell Liabilities Subordinated liabilities Amortised cost Technical provisions Property insurance: provisions for losses and unsettled claims (undiscounted value of expected future payment obligations) Life and health insurance: insurance provision in accordance with actuarial calculation principles (discounted value of expected future benefits less premiums) Technical provisions for unit-linked and index-linked life insurance Insurance provision based on the change in value of the contributions assessed Financial liabilities - Liabilities from loans Amortised cost - Derivative financial instruments Fair value Other provisions - from defined benefit obligations Actuarial measurement applying the projected benefit obligation method - other Present value of future settlement value Liabilities and other items classified as liabilities Amortised cost Income tax liabilities At the amount of any obligations to the tax authorities, based on the tax rates applicable on the reporting date or in the near future Deferred tax liabilities Undiscounted measurement applying the tax rates that are expected for the period in which an asset is realised or a liability met 68 The following table provides a summary of the measurement standards for the individual balance sheet items in the as- sets and liabilities: Balance sheet item Standard of measurement Assets Property, plant and equipment Amortised cost Intangible assets - with determinable useful life Amortised cost - with indeterminable useful life At lower of acquisition cost or recoverable amount Investments Investment property Amortised cost Financial assets accounted for using the equity method At lower of amortised pro-rata value of the equity or recoverable amount Other investments - Financial assets at fair value through profit or loss Fair value - Financial assets held for sale Fair value - Loans and receivables Amortised cost Unit-linked and index-linked life insurance investments Fair value Reinsurers’ share of technical provisions As per the measurement of technical provisions Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance As per the measurement of technical provisions Receivables, including insurance receivables Amortised cost Income tax receivables At the amount of any expected claims to the tax authorities, based on the tax rates applicable on the reporting date or in the near future Deferred tax assets Undiscounted measurement applying the tax rates that are expected for the period in which an asset is realised or a liability met Cash Amortised cost Assets in disposal groups held for sale Lower of carrying amount and fair value less cost to sell Liabilities Subordinated liabilities Amortised cost Technical provisions Property insurance: provisions for losses and unsettled claims (undiscounted value of expected future payment obligations) Life and health insurance: insurance provision in accordance with actuarial calculation principles (discounted value of expected future benefits less premiums) Technical provisions for unit-linked and index-linked life insurance Insurance provision based on the change in value of the contributions assessed Financial liabilities - Liabilities from loans Amortised cost - Derivative financial instruments Fair value Other provisions - from defined benefit obligations Actuarial measurement applying the projected benefit obligation method - other Present value of future settlement value Liabilities and other items classified as liabilities Amortised cost Income tax liabilities At the amount of any obligations to the tax authorities, based on the tax rates applicable on the reporting date or in the near future Deferred tax liabilities Undiscounted measurement applying the tax rates that are expected for the period in which an asset is realised or a liability met 69 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS SEGMENT REPORTING The accounting and measurement methods of the seg- ments that are subject to mandatory reporting correspond with the consolidated accounting and measurement methods. The earnings before taxes for the segments were determined taking the following components into consid- eration: summation of the IFRS profits in the individual companies, taking the elimination of net investment in- come in the various segments and impairment of goodwill into consideration. All other consolidation effects (prof- it/(loss) for the period at associates, elimination of inter- im results, and other overall effects) are included in “Con- solidation”. The segment profit/(loss) obtained in this manner is reported to the Management Board of UNIQA Insurance Group AG to manage the Group in the following operating segments: UNIQA Austria – includes the Austrian insurance busi- ness. UNIQA International – includes all international primary insurance companies and international service companies as well as investment management companies and pension funds. This segment is divided on a regional basis into the following main areas:  Central Europe (CE – Poland, Slovakia, the Czech Repub- lic and Hungary)  Eastern Europe (EE – Romania and Ukraine)  Russia (RU)  Southeastern Europe (SEE – Albania, Bosnia and Herze- govina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia and Serbia)  Western Europe (WE – Liechtenstein and Switzerland)  Administration Reinsurance – includes UNIQA Re AG (Zurich, Switzer- land) and the reinsurance business of UNIQA Insurance Group AG. Group functions – includes the remaining items for UNIQA Insurance Group AG (net investment income and administrative costs) as well as all other remaining Austri- an and international service companies. Consolidated Financial Statements 70 Operating segments UNIQA Austria UNIQA International Reinsurance In € thousand 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Premiums written (gross), including savings portions from unit-linked and index-linked life insurance 3,916,574 3,837,500 2,423,271 1,705,441 1,469,540 1,162,667 Premiums earned (net), including savings portions from unit-linked and index-linked life insurance 3,113,292 3,076,677 1,671,286 1,200,485 1,229,245 1,056,076 Savings portions from unit-linked and index-linked life insurance (gross) 213,210 207,018 111,385 97,104 0 0 Savings portions from unit-linked and index-linked life insurance (net) 213,210 207,018 111,385 97,104 0 0 Premiums written (gross) 3,703,364 3,630,482 2,311,886 1,608,337 1,469,540 1,162,667 Premiums earned (net) 2,900,082 2,869,659 1,559,901 1,103,382 1,229,245 1,056,076 Premiums earned (net) – intragroup – 766,653 – 727,578 – 565,542 – 369,557 1,323,851 1,096,712 Premiums earned (net) – external 3,666,735 3,597,237 2,125,442 1,472,938 – 94,605 – 40,636 T echnical interest income 289,740 294,250 29,209 27,875 0 0 Other insurance income 5,080 4,977 33,398 26,636 266 7,606 Insurance benefits – 2,442,288 – 2,383,735 – 874,992 – 608,096 – 787,981 – 700,605 Operating expenses – 622,244 – 719,347 – 592,734 – 466,354 – 359,815 – 310,966 Other technical expenses – 20,688 – 13,405 – 54,732 – 42,579 – 16,633 – 14,801 T echnical result 109,682 52,399 100,050 40,864 65,083 37,311 Net investment income 567,298 160,801 72,030 106,084 33,708 6,899 Income from investments 560,659 486,190 108,249 132,427 44,757 37,579 Expenses from investments – 91,965 – 338,250 – 36,491 – 26,599 – 11,049 – 30,680 Financial assets accounted for using the equity method 98,604 12,861 272 256 0 0 Other income 2,921 1,592 146,385 46,161 4,198 18,013 Reclassification of technical interest income – 289,740 – 294,250 – 29,209 – 27,875 0 0 Other expenses – 11,144 – 9,527 – 81,462 – 63,793 – 4,462 – 1,031 Non-technical result 269,336 – 141,384 107,745 60,577 33,443 23,881 Operating profit/(loss) 379,017 – 88,985 207,795 101,441 98,526 61,192 Amortisation of VBI and impairment of goodwill – 1,786 – 1,786 – 69,125 – 123,947 0 0 Finance cost – 38,016 – 28,287 – 4,995 – 4,530 – 2,901 – 2,901 Earnings before taxes 339,215 – 119,058 133,674 – 27,036 95,625 58,291 Combined ratio (property and casualty insurance, after reinsurance) 1) 91.7% 98.7% 92.9% 93.3% 93.8% 95.8% Cost ratio (after reinsurance) 2) 20.0% 23.4% 35.5% 38.8% 29.3% 29.4% Impairment by segment UNIQA Austria UNIQA International Reinsurance In € thousand 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Goodwill Impairments 0 0 –12,100 –105,752 0 0 Investments Impairments –1,939 –19,627 0 –1,200 0 0 Reversal of impairment losses 0 51 129 0 0 0 1) Total of operating expenses and insurance benefits divided by the (net) premiums earned in property and casualty insurance. 2) Ratio of total operating expenses (net of reinsurance commissions received and share of profit from reinsurance ceded) to consolidated premiums earned (including savings portions of unit-linked and index-linked life insurance). 70 Operating segments UNIQA Austria UNIQA International Reinsurance In € thousand 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Premiums written (gross), including savings portions from unit-linked and index-linked life insurance 3,916,574 3,837,500 2,423,271 1,705,441 1,469,540 1,162,667 Premiums earned (net), including savings portions from unit-linked and index-linked life insurance 3,113,292 3,076,677 1,671,286 1,200,485 1,229,245 1,056,076 Savings portions from unit-linked and index-linked life insurance (gross) 213,210 207,018 111,385 97,104 0 0 Savings portions from unit-linked and index-linked life insurance (net) 213,210 207,018 111,385 97,104 0 0 Premiums written (gross) 3,703,364 3,630,482 2,311,886 1,608,337 1,469,540 1,162,667 Premiums earned (net) 2,900,082 2,869,659 1,559,901 1,103,382 1,229,245 1,056,076 Premiums earned (net) – intragroup – 766,653 – 727,578 – 565,542 – 369,557 1,323,851 1,096,712 Premiums earned (net) – external 3,666,735 3,597,237 2,125,442 1,472,938 – 94,605 – 40,636 T echnical interest income 289,740 294,250 29,209 27,875 0 0 Other insurance income 5,080 4,977 33,398 26,636 266 7,606 Insurance benefits – 2,442,288 – 2,383,735 – 874,992 – 608,096 – 787,981 – 700,605 Operating expenses – 622,244 – 719,347 – 592,734 – 466,354 – 359,815 – 310,966 Other technical expenses – 20,688 – 13,405 – 54,732 – 42,579 – 16,633 – 14,801 T echnical result 109,682 52,399 100,050 40,864 65,083 37,311 Net investment income 567,298 160,801 72,030 106,084 33,708 6,899 Income from investments 560,659 486,190 108,249 132,427 44,757 37,579 Expenses from investments – 91,965 – 338,250 – 36,491 – 26,599 – 11,049 – 30,680 Financial assets accounted for using the equity method 98,604 12,861 272 256 0 0 Other income 2,921 1,592 146,385 46,161 4,198 18,013 Reclassification of technical interest income – 289,740 – 294,250 – 29,209 – 27,875 0 0 Other expenses – 11,144 – 9,527 – 81,462 – 63,793 – 4,462 – 1,031 Non-technical result 269,336 – 141,384 107,745 60,577 33,443 23,881 Operating profit/(loss) 379,017 – 88,985 207,795 101,441 98,526 61,192 Amortisation of VBI and impairment of goodwill – 1,786 – 1,786 – 69,125 – 123,947 0 0 Finance cost – 38,016 – 28,287 – 4,995 – 4,530 – 2,901 – 2,901 Earnings before taxes 339,215 – 119,058 133,674 – 27,036 95,625 58,291 Combined ratio (property and casualty insurance, after reinsurance) 1) 91.7% 98.7% 92.9% 93.3% 93.8% 95.8% Cost ratio (after reinsurance) 2) 20.0% 23.4% 35.5% 38.8% 29.3% 29.4% Impairment by segment UNIQA Austria UNIQA International Reinsurance In € thousand 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Goodwill Impairments 0 0 –12,100 –105,752 0 0 Investments Impairments –1,939 –19,627 0 –1,200 0 0 Reversal of impairment losses 0 51 129 0 0 0 1) Total of operating expenses and insurance benefits divided by the (net) premiums earned in property and casualty insurance. 2) Ratio of total operating expenses (net of reinsurance commissions received and share of profit from reinsurance ceded) to consolidated premiums earned (including savings portions of unit-linked and index-linked life insurance). 71 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Group functions Consolidation Group 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 0 0 –1,451,386 –1,140,262 6,358,000 5,565,346 0 0 8,344 423 6,022,167 5,333,662 0 0 0 0 324,595 304,122 0 0 0 0 324,595 304,122 0 0 – 1,451,386 – 1,140,262 6,033,405 5,261,224 0 0 8,344 423 5,697,572 5,029,539 0 0 8,344 423 0 0 0 0 0 0 5,697,572 5,029,539 0 0 0 0 318,949 322,125 373 13,288 – 10,836 – 10,839 28,281 41,669 4,892 2,318 – 3,835 – 4,461 – 4,104,204 – 3,694,579 – 67,932 – 80,049 – 5,802 10,316 – 1,648,527 – 1,566,399 – 7,311 – 163 16,491 16,887 – 82,874 – 54,061 – 69,978 – 64,606 4,361 12,327 209,197 78,295 606,776 96,202 – 631,860 135,424 647,951 505,409 752,040 321,071 – 630,647 – 203,581 835,058 773,686 – 156,274 – 225,227 27,585 286,791 – 268,193 – 333,965 11,009 358 –28,798 52,213 81,087 65,689 188,868 180,237 – 41,991 – 29,455 300,381 216,548 0 0 0 0 – 318,949 – 322,125 – 192,040 – 184,942 38,489 28,796 – 250,619 – 230,497 603,603 91,498 – 635,362 134,764 378,765 169,335 533,625 26,892 – 631,001 147,091 587,962 247,631 0 0 0 – 84 – 70,911 – 125,817 – 155,772 – 75,428 66,923 46,389 – 134,762 – 64,758 377,853 – 48,537 – 564,078 193,396 382,289 57,056 n/a n/a n/a n/a 93.7% 97.8% n/a n/a n/a n/a 27.4% 29.4% Group functions Consolidation Group 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 0 0 0 0 –12,100 –105,752 –15,845 –49,943 0 0 –17,784 –70,770 0 0 0 0 129 51 Consolidated Financial Statements 72 Classified by business line Property and casualty insurance In € thousand UNIQA Austria UNIQA International Reinsurance 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Premiums written (gross) 1,857,585 1,796,102 1,618,657 1,192,585 1,425,000 1,125,744 Premiums earned (net) 1,086,677 1,066,070 902,411 702,548 1,206,962 1,039,922 Technical interest income 0 0 0 789 0 0 Other insurance income 3,069 2,923 12,901 7,529 237 7,581 Insurance benefits –684,823 –698,649 –505,832 –386,161 –775,000 –687,026 Operating expenses –311,854 –353,673 –332,185 –269,392 –356,610 –309,509 Other technical expenses –13,377 –7,612 –45,434 –36,442 –13,718 –11,748 Technical result 79,692 9,059 31,861 18,871 61,871 39,220 Net investment income 132,858 –196,135 34,829 34,234 28,904 1,651 Income from investments 162,308 84,348 49,471 48,615 39,953 32,331 Expenses from investments –31,007 –280,686 –14,915 –14,637 –11,049 –30,680 Financial assets accounted for using the equity method 1,556 203 272 256 0 0 Other income 2,237 1,355 17,058 18,302 4,019 18,011 Reclassification of technical interest income 0 0 0 –789 0 0 Other expenses –10,284 –8,344 –19,572 –15,503 –4,259 –929 Non-technical result 124,812 –203,124 32,314 36,245 28,665 18,733 Operating profit/(loss) 204,504 –194,065 64,175 55,116 90,536 57,953 Amortisation of VBI and impairment of goodwill 0 0 –23,365 –87,947 0 0 Finance cost –13,218 –3,220 –4,606 –4,374 –2,901 –2,901 Earnings before taxes 191,286 –197,285 36,204 –37,205 87,635 55,052 Health insurance In € thousand UNIQA Austria UNIQA International Reinsurance 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Premiums written (gross) 1,120,480 1,089,620 105,978 77,936 8,729 6,795 Premiums earned (net) 1,111,095 1,082,685 93,402 74,409 8,460 6,420 Technical interest income 91,100 88,746 2 2 0 0 Other insurance income 1,726 1,455 218 143 0 0 Insurance benefits –947,665 –916,935 –49,879 –42,177 –4,919 –6,056 Operating expenses –151,080 –176,857 –36,119 –27,362 –197 –249 Other technical expenses –1,433 –227 –616 –433 0 0 Technical result 103,743 78,867 7,007 4,581 3,344 115 Net investment income 111,968 95,073 163 30 0 0 Income from investments 102,578 120,805 223 254 0 0 Expenses from investments –31,745 –31,097 –61 –224 0 0 Financial assets accounted for using the equity method 41,134 5,365 0 0 0 0 Other income 551 127 3,691 3,278 52 0 Reclassification of technical interest income –91,100 –88,746 –2 –2 0 0 Other expenses –696 –749 –3,715 –3,415 –159 –14 Non-technical result 20,722 5,705 138 –110 –107 –14 Operating profit/(loss) 124,466 84,573 7,145 4,471 3,237 102 Amortisation of VBI and impairment of goodwill 0 0 –172 0 0 0 Finance cost 190 0 –4 0 0 0 Earnings before taxes 124,656 84,573 6,969 4,471 3,237 102 72 Classified by business line Property and casualty insurance In € thousand UNIQA Austria UNIQA International Reinsurance 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Premiums written (gross) 1,857,585 1,796,102 1,618,657 1,192,585 1,425,000 1,125,744 Premiums earned (net) 1,086,677 1,066,070 902,411 702,548 1,206,962 1,039,922 Technical interest income 0 0 0 789 0 0 Other insurance income 3,069 2,923 12,901 7,529 237 7,581 Insurance benefits –684,823 –698,649 –505,832 –386,161 –775,000 –687,026 Operating expenses –311,854 –353,673 –332,185 –269,392 –356,610 –309,509 Other technical expenses –13,377 –7,612 –45,434 –36,442 –13,718 –11,748 Technical result 79,692 9,059 31,861 18,871 61,871 39,220 Net investment income 132,858 –196,135 34,829 34,234 28,904 1,651 Income from investments 162,308 84,348 49,471 48,615 39,953 32,331 Expenses from investments –31,007 –280,686 –14,915 –14,637 –11,049 –30,680 Financial assets accounted for using the equity method 1,556 203 272 256 0 0 Other income 2,237 1,355 17,058 18,302 4,019 18,011 Reclassification of technical interest income 0 0 0 –789 0 0 Other expenses –10,284 –8,344 –19,572 –15,503 –4,259 –929 Non-technical result 124,812 –203,124 32,314 36,245 28,665 18,733 Operating profit/(loss) 204,504 –194,065 64,175 55,116 90,536 57,953 Amortisation of VBI and impairment of goodwill 0 0 –23,365 –87,947 0 0 Finance cost –13,218 –3,220 –4,606 –4,374 –2,901 –2,901 Earnings before taxes 191,286 –197,285 36,204 –37,205 87,635 55,052 Health insurance In € thousand UNIQA Austria UNIQA International Reinsurance 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Premiums written (gross) 1,120,480 1,089,620 105,978 77,936 8,729 6,795 Premiums earned (net) 1,111,095 1,082,685 93,402 74,409 8,460 6,420 Technical interest income 91,100 88,746 2 2 0 0 Other insurance income 1,726 1,455 218 143 0 0 Insurance benefits –947,665 –916,935 –49,879 –42,177 –4,919 –6,056 Operating expenses –151,080 –176,857 –36,119 –27,362 –197 –249 Other technical expenses –1,433 –227 –616 –433 0 0 Technical result 103,743 78,867 7,007 4,581 3,344 115 Net investment income 111,968 95,073 163 30 0 0 Income from investments 102,578 120,805 223 254 0 0 Expenses from investments –31,745 –31,097 –61 –224 0 0 Financial assets accounted for using the equity method 41,134 5,365 0 0 0 0 Other income 551 127 3,691 3,278 52 0 Reclassification of technical interest income –91,100 –88,746 –2 –2 0 0 Other expenses –696 –749 –3,715 –3,415 –159 –14 Non-technical result 20,722 5,705 138 –110 –107 –14 Operating profit/(loss) 124,466 84,573 7,145 4,471 3,237 102 Amortisation of VBI and impairment of goodwill 0 0 –172 0 0 0 Finance cost 190 0 –4 0 0 0 Earnings before taxes 124,656 84,573 6,969 4,471 3,237 102 73 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Group functions Consolidation Group 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 0 0 –1,411,709 –1,104,104 3,489,533 3,010,327 0 0 7,814 414 3,203,865 2,808,954 0 0 0 0 0 789 308 13,253 –5,404 –2,450 11,111 28,836 0 153 532 –3,436 –1,965,123 –1,775,119 –31,873 –42,022 –5,240 3,872 –1,037,763 –970,724 –7,204 –868 11,579 11,618 –68,153 –45,053 –38,769 –29,485 9,282 10,017 143,937 47,683 467,151 40,683 –528,547 149,113 135,195 29,547 561,625 182,732 –545,387 –127,167 267,971 220,859 –96,031 –141,175 8,523 265,340 –144,478 –201,837 1,557 –874 8,318 10,940 11,703 10,525 6,568 8,537 382 481 30,264 46,685 0 0 0 0 0 –789 –10,138 –11,066 99 –2,676 –44,153 –38,518 463,581 38,153 –528,065 146,918 121,306 36,925 424,812 8,669 –518,784 156,935 265,243 84,607 0 0 0 –82 –23,365 –88,029 –141,541 –67,437 27,734 13,414 –134,532 –64,519 283,271 –58,769 –491,049 170,266 107,347 –67,941 Group functions Consolidation Group 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 0 0 –8,729 –6,796 1,226,458 1,167,554 0 0 305 99 1,213,262 1,163,614 0 0 0 0 91,102 88,747 0 0 0 –1 1,944 1,597 4,892 2,165 –156 –53 –997,727 –963,056 –19,237 –20,486 9 –12 –206,624 –224,966 –66 390 0 0 –2,115 –270 –14,411 –17,931 158 33 99,841 65,666 88,840 28,468 –37,847 –19,029 163,124 104,542 116,721 83,032 –25,769 –42,871 193,754 161,220 –27,881 –54,564 2,258 7,901 –57,429 –77,985 0 0 –14,336 15,941 26,799 21,307 181,145 168,409 –29,538 –27,121 155,902 144,693 0 0 0 0 –91,102 –88,747 –179,839 –169,985 29,655 27,606 –154,754 –146,556 90,147 26,893 –37,730 –18,543 73,170 13,931 75,736 8,962 –37,572 –18,510 173,011 79,597 0 0 0 0 –172 0 –42 –65 1 0 146 –66 75,695 8,896 –37,572 –18,510 172,985 79,531 Consolidated Financial Statements 74 Life insurance In € thousand UNIQA Austria UNIQA International Reinsurance 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Premiums written (gross), including savings portions from unit-linked and index-linked life insurance 938,508 951,778 698,637 434,921 35,811 30,128 Premiums earned (net), including savings portions from unit-linked and index-linked life insurance 915,520 927,921 675,472 423,528 13,824 9,734 Savings portions from unit-linked and index-linked life insurance (gross) 213,210 207,018 111,385 97,104 0 0 Savings portions from unit-linked and index-linked life insurance (net) 213,210 207,018 111,385 97,104 0 0 Premiums written (gross) 725,299 744,760 587,252 337,817 35,811 30,128 Premiums earned (net) 702,311 720,903 564,087 326,424 13,824 9,734 Technical interest income 198,639 205,504 29,207 27,084 0 0 Other insurance income 285 599 20,280 18,964 29 25 Insurance benefits –809,800 –768,151 –319,281 –179,758 –8,062 –7,523 Operating expenses –159,310 –188,817 –224,430 –169,599 –3,008 –1,208 Other technical expenses –5,879 –5,566 –8,682 –5,704 –2,915 –3,053 Technical result –73,754 –35,527 61,182 17,412 –133 –2,025 Net investment income 322,472 261,862 37,039 71,820 4,804 5,248 Income from investments 295,772 281,036 58,554 83,558 4,804 5,248 Expenses from investments –29,213 –26,467 –21,516 –11,738 0 0 Financial assets accounted for using the equity method 55,913 7,293 0 0 0 0 Other income 133 111 125,636 24,581 126 2 Reclassification of technical interest income –198,639 –205,504 –29,207 –27,084 0 0 Other expenses –164 –435 –58,175 –44,875 –44 –88 Non-technical result 123,802 56,034 75,293 24,442 4,886 5,162 Operating profit/(loss) 50,048 20,507 136,475 41,854 4,753 3,137 Amortisation of VBI and impairment of goodwill –1,786 –1,786 –45,589 –36,000 0 0 Finance cost –24,988 –25,067 –385 –155 0 0 Earnings before taxes 23,274 –6,346 90,501 5,698 4,753 3,137 74 Life insurance In € thousand UNIQA Austria UNIQA International Reinsurance 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Premiums written (gross), including savings portions from unit-linked and index-linked life insurance 938,508 951,778 698,637 434,921 35,811 30,128 Premiums earned (net), including savings portions from unit-linked and index-linked life insurance 915,520 927,921 675,472 423,528 13,824 9,734 Savings portions from unit-linked and index-linked life insurance (gross) 213,210 207,018 111,385 97,104 0 0 Savings portions from unit-linked and index-linked life insurance (net) 213,210 207,018 111,385 97,104 0 0 Premiums written (gross) 725,299 744,760 587,252 337,817 35,811 30,128 Premiums earned (net) 702,311 720,903 564,087 326,424 13,824 9,734 Technical interest income 198,639 205,504 29,207 27,084 0 0 Other insurance income 285 599 20,280 18,964 29 25 Insurance benefits –809,800 –768,151 –319,281 –179,758 –8,062 –7,523 Operating expenses –159,310 –188,817 –224,430 –169,599 –3,008 –1,208 Other technical expenses –5,879 –5,566 –8,682 –5,704 –2,915 –3,053 Technical result –73,754 –35,527 61,182 17,412 –133 –2,025 Net investment income 322,472 261,862 37,039 71,820 4,804 5,248 Income from investments 295,772 281,036 58,554 83,558 4,804 5,248 Expenses from investments –29,213 –26,467 –21,516 –11,738 0 0 Financial assets accounted for using the equity method 55,913 7,293 0 0 0 0 Other income 133 111 125,636 24,581 126 2 Reclassification of technical interest income –198,639 –205,504 –29,207 –27,084 0 0 Other expenses –164 –435 –58,175 –44,875 –44 –88 Non-technical result 123,802 56,034 75,293 24,442 4,886 5,162 Operating profit/(loss) 50,048 20,507 136,475 41,854 4,753 3,137 Amortisation of VBI and impairment of goodwill –1,786 –1,786 –45,589 –36,000 0 0 Finance cost –24,988 –25,067 –385 –155 0 0 Earnings before taxes 23,274 –6,346 90,501 5,698 4,753 3,137 75 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Group functions Consolidation Group 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 0 0 –30,947 –29,363 1,642,009 1,387,465 0 0 225 –89 1,605,041 1,361,094 0 0 0 0 324,595 304,122 0 0 0 0 324,595 304,122 0 0 –30,947 –29,363 1,317,414 1,083,343 0 0 225 –89 1,280,446 1,056,972 0 0 0 0 227,846 232,589 65 35 –5,432 –8,387 15,227 11,237 0 0 –4,212 –972 –1,141,354 –956,404 –16,822 –17,541 –571 6,457 –404,140 –370,708 –41 315 4,911 5,269 –12,606 –8,739 –16,798 –17,190 –5,078 2,277 –34,581 –35,053 50,784 27,050 –65,467 5,340 349,632 371,321 73,694 55,306 –59,491 –33,542 373,333 391,606 –32,362 –29,489 16,805 13,550 –66,286 –54,143 9,453 1,233 –22,781 25,332 42,585 33,858 1,154 3,292 –12,834 –2,816 114,215 25,171 0 0 0 0 –227,846 –232,589 –2,063 –3,891 8,735 3,866 –51,711 –45,423 49,875 26,452 –69,567 6,390 184,289 118,479 33,077 9,261 –74,645 8,667 149,708 83,426 0 0 0 –1 –47,375 –37,787 –14,190 –7,926 39,188 32,975 –376 –173 18,887 1,336 –35,457 41,640 101,957 45,466 Consolidated Financial Statements 76 UNIQA International – classified by region Premiums earned (net) Net investment income In € thousand 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Poland 523,996 264,324 13,186 15,551 Slovakia 198,978 89,735 4,864 3,197 Czech Republic 300,437 246,685 5,773 7,754 Hungary 75,562 73,985 4,283 6,023 Central Europe (CE) 1,098,972 674,728 28,107 32,525 Romania 59,567 53,743 4,936 4,901 Ukraine 93,072 84,936 4,876 10,598 Eastern Europe (EE) 152,639 138,679 9,813 15,499 Russia 72,301 70,253 16,379 37,525 Russia (RU) 72,301 70,253 16,379 37,525 Albania 36,372 31,367 328 661 Bosnia and Herzegovina 31,900 27,670 2,457 2,481 Bulgaria 37,318 37,058 1,683 1,065 Kosovo 13,816 11,541 284 271 Croatia 49,940 49,241 7,744 11,696 Montenegro 10,379 10,241 718 684 North Macedonia 17,379 14,360 351 342 Serbia 37,350 37,036 4,063 3,958 Southeastern Europe (SEE) 234,454 218,515 17,628 21,158 Liechtenstein 1,535 1,206 132 64 Switzerland 0 0 –29 –31 Western Europe (WE) 1,535 1,206 103 33 Austria 0 0 0 –655 Administration 0 0 0 –655 UNIQA International 1,559,901 1,103,382 72,030 106,084 Of which: Earnings before taxes insurance companies Impairment of goodwill 76 UNIQA International – classified by region Premiums earned (net) Net investment income In € thousand 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Poland 523,996 264,324 13,186 15,551 Slovakia 198,978 89,735 4,864 3,197 Czech Republic 300,437 246,685 5,773 7,754 Hungary 75,562 73,985 4,283 6,023 Central Europe (CE) 1,098,972 674,728 28,107 32,525 Romania 59,567 53,743 4,936 4,901 Ukraine 93,072 84,936 4,876 10,598 Eastern Europe (EE) 152,639 138,679 9,813 15,499 Russia 72,301 70,253 16,379 37,525 Russia (RU) 72,301 70,253 16,379 37,525 Albania 36,372 31,367 328 661 Bosnia and Herzegovina 31,900 27,670 2,457 2,481 Bulgaria 37,318 37,058 1,683 1,065 Kosovo 13,816 11,541 284 271 Croatia 49,940 49,241 7,744 11,696 Montenegro 10,379 10,241 718 684 North Macedonia 17,379 14,360 351 342 Serbia 37,350 37,036 4,063 3,958 Southeastern Europe (SEE) 234,454 218,515 17,628 21,158 Liechtenstein 1,535 1,206 132 64 Switzerland 0 0 –29 –31 Western Europe (WE) 1,535 1,206 103 33 Austria 0 0 0 –655 Administration 0 0 0 –655 UNIQA International 1,559,901 1,103,382 72,030 106,084 Of which: Earnings before taxes insurance companies Impairment of goodwill 77 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Insurance benefits Operating expenses Earnings before taxes 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 –308,561 –162,139 –191,064 –112,662 20,084 4,184 –106,807 –45,321 –61,566 –41,405 56,181 5,364 –171,824 –144,319 –96,006 –72,298 40,260 33,325 –20,574 –20,733 –33,052 –30,571 5,859 8,632 –607,767 –372,512 –381,689 –256,935 122,384 51,506 –28,572 –29,598 –27,795 –24,954 5,043 –58,218 –45,473 –34,116 –42,780 –44,386 10,519 14,166 –74,046 –63,714 –70,575 –69,339 15,562 –44,052 –61,716 –54,919 –12,179 –13,394 15,651 20,178 –61,716 –54,919 –12,179 –13,394 15,651 20,178 –15,792 –10,971 –17,007 –14,640 3,928 244 –20,012 –16,834 –12,828 –11,345 1,464 1,683 –18,451 –12,387 –17,106 –20,960 –8,375 –14,855 –8,556 –7,152 –4,490 –4,712 1,006 100 –30,965 –34,289 –22,436 –21,007 3,156 1,813 –4,820 –5,060 –4,741 –4,657 1,141 965 –8,736 –6,721 –8,551 –7,304 475 581 –23,336 –22,222 –17,236 –16,841 229 –20,232 –130,667 –115,638 –104,395 –101,467 3,025 –29,701 –796 –1,313 –1,839 –1,385 –914 –789 0 0 0 0 23 310 –796 –1,313 –1,839 –1,385 –891 –479 0 0 –22,057 –23,832 –22,057 –24,488 0 0 –22,057 –23,832 –22,057 –24,488 –874,992 –608,096 –592,734 –466,354 133,674 –27,036 155,709 –2,859 –12,100 –105,752 Consolidated Financial Statements 78 Consolidated Statement of Financial Position – classified by business line Property and casualty insurance Health insurance In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Assets Property, plant and equipment 176,900 192,969 59,584 36,906 Deferred acquisition costs and value of business in force 301,272 263,103 319,442 291,608 Intangible assets 533,838 420,406 11,700 3,295 Investments Investment property 183,910 196,515 236,456 235,293 Financial assets accounted for using the equity method 89,678 81,270 218,828 230,391 Other investments 5,533,015 5,682,319 3,876,589 3,874,305 Unit-linked and index-linked life insurance investments 0 0 0 0 Reinsurers’ share of technical provisions 478,912 389,131 3,023 1,141 Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance 0 0 0 0 Receivables, including insurance receivables 413,861 483,558 479,347 311,762 Income tax receivables 68,295 46,406 3,029 1,821 Deferred tax assets 71,933 3,693 43 0 Cash 245,926 266,613 73,731 164,526 Total assets by business line 8,097,539 8,025,983 5,281,773 5,151,047 Liabilities Subordinated liabilities 1,057,559 1,069,920 0 0 Technical provisions 4,374,791 4,122,722 3,815,927 3,623,875 Technical provisions for unit-linked and index-linked life insurance 0 0 0 0 Financial liabilities 683,169 715,976 29,603 29,461 Other provisions 366,912 395,230 315,120 408,517 Liabilities and other items classified as liabilities 485,909 694,209 333,311 241,173 Income tax liabilities 95,246 63,214 5,124 6,598 Deferred tax liabilities 56,276 61,344 151,890 156,837 Total liabilities by business line 7,119,863 7,122,614 4,650,976 4,466,461 78 Consolidated Statement of Financial Position – classified by business line Property and casualty insurance Health insurance In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Assets Property, plant and equipment 176,900 192,969 59,584 36,906 Deferred acquisition costs and value of business in force 301,272 263,103 319,442 291,608 Intangible assets 533,838 420,406 11,700 3,295 Investments Investment property 183,910 196,515 236,456 235,293 Financial assets accounted for using the equity method 89,678 81,270 218,828 230,391 Other investments 5,533,015 5,682,319 3,876,589 3,874,305 Unit-linked and index-linked life insurance investments 0 0 0 0 Reinsurers’ share of technical provisions 478,912 389,131 3,023 1,141 Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance 0 0 0 0 Receivables, including insurance receivables 413,861 483,558 479,347 311,762 Income tax receivables 68,295 46,406 3,029 1,821 Deferred tax assets 71,933 3,693 43 0 Cash 245,926 266,613 73,731 164,526 Total assets by business line 8,097,539 8,025,983 5,281,773 5,151,047 Liabilities Subordinated liabilities 1,057,559 1,069,920 0 0 Technical provisions 4,374,791 4,122,722 3,815,927 3,623,875 Technical provisions for unit-linked and index-linked life insurance 0 0 0 0 Financial liabilities 683,169 715,976 29,603 29,461 Other provisions 366,912 395,230 315,120 408,517 Liabilities and other items classified as liabilities 485,909 694,209 333,311 241,173 Income tax liabilities 95,246 63,214 5,124 6,598 Deferred tax liabilities 56,276 61,344 151,890 156,837 Total liabilities by business line 7,119,863 7,122,614 4,650,976 4,466,461 79 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Life insurance Consolidation Group 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 129,009 134,863 0 0 365,493 364,739 841,448 896,464 –75 –25 1,462,087 1,451,149 166,749 223,918 0 0 712,287 647,619 821,493 787,405 0 0 1,241,860 1,219,213 347,886 366,260 0 0 656,393 677,921 10,903,753 11,493,995 –426,632 –628,512 19,886,724 20,422,107 5,154,053 5,218,124 0 0 5,154,053 5,218,124 110,505 124,028 –770 –31 591,671 514,268 0 131 0 0 0 131 68,924 208,767 –247,308 –319,837 714,823 684,249 13,576 10,903 0 0 84,900 59,130 12,933 4,901 0 0 84,909 8,594 272,925 209,574 0 0 592,583 640,713 18,843,255 19,679,332 –674,784 –948,405 31,547,783 31,907,957 419,258 419,258 –419,258 –419,258 1,057,559 1,069,920 10,988,198 11,450,699 –4,812 –1,554 19,174,105 19,195,742 5,028,507 5,115,506 0 0 5,028,507 5,115,506 29,358 91,574 –18,813 –143,444 723,317 693,566 46,379 45,468 –2,141 –1,980 726,270 847,235 427,819 441,129 –229,842 –382,290 1,017,197 994,221 15,023 23,239 0 0 115,393 93,051 173,983 205,703 0 0 382,149 423,884 17,128,525 17,792,575 –674,866 –948,525 28,224,497 28,433,125 Consolidated equity and non-controlling interests 3,323,286 3,474,832 Total equity and liabilities 31,547,783 31,907,957 The amounts indicated for each business line have been adjusted to eliminate amounts resulting from internal transactions. Therefore, the balance of business line assets and business line liabilities does not allow conclusions to be drawn with regard to the equity allocated to the respec- tive segment. Consolidated Financial Statements 80 Financial assets and liabilities The following table provides an overview of financial assets and financial liabilities. At 31 December 2021 At 31 December 2020 In € thousand Carrying amounts Fair values Carrying amounts Fair values Financial assets Investments Investment property 1,241,860 2,757,558 1,219,213 2,521,161 Financial assets accounted for using the equity method 656,393 655,252 677,921 518,552 Other investments 19,886,724 19,896,996 20,422,107 20,435,635 Financial assets at fair value through profit or loss 293,880 293,880 241,029 241,029 Available-for-sale financial assets 19,167,965 19,167,965 19,678,925 19,678,925 Loans and receivables 424,879 435,151 502,152 515,680 Unit-linked and index-linked life insurance investments 5,154,053 5,154,053 5,218,124 5,218,124 Receivables, including insurance receivables 714,823 714,823 684,249 684,249 Cash 592,583 592,583 640,713 640,713 Financial liabilities Subordinated liabilities 1,057,559 1,150,264 1,069,920 1,231,774 Financial liabilities 723,317 723,317 693,566 693,566 Liabilities from bonds and loans 599,490 599,490 610,098 610,098 Derivative financial instruments 21,843 21,843 1,908 1,908 Lease liabilities 101,984 101,984 81,560 81,560 Liabilities and other items classified as liabilities 1,017,197 1,017,197 994,221 994,221 Investments 1 . Investment property Land and buildings, including buildings on third-party land, held as long-term investments to generate rent reve- nue and/or for the purpose of capital appreciation are measured in accordance with the cost model. The invest- ment property is subject to straight line depreciation over the useful life of 15 to 80 years and is recognised under the item “Net investment income”. The fair value is determined using reports prepared by independent experts. These expert reports are prepared based on the income approach. It requires making as- sumptions about the future, principally concerning the discount rate, the exit yield, the expected utilisation (va- cancy rate), the development of future rental charges and the condition of the land and buildings. Property value, location, usable area and usage category for the property are also taken into account. For this reason, all measurements of the fair value for the land and buildings come under Level 3 of the hierarchy in accordance with IFRS 13. The measurement techniques respond to the underlying assumptions and parameters. For instance, any reduction in the discount rate applied would result in an increase in the values ascertained for the land and buildings if the other assumptions and pa- rameters remained unchanged. Conversely, any reduction in the expected utilisation or the expected rental charges would, for instance, result in a decrease in the values ascertained for the land and build- ings if the other assumptions and parameters remained unchanged. The measurement-related assumptions and parameters are ascertained at each key date based on the best estimate by management with due respect to the cur- rent prevailing market conditions. 80 Financial assets and liabilities The following table provides an overview of financial assets and financial liabilities. At 31 December 2021 At 31 December 2020 In € thousand Carrying amounts Fair values Carrying amounts Fair values Financial assets Investments Investment property 1,241,860 2,757,558 1,219,213 2,521,161 Financial assets accounted for using the equity method 656,393 655,252 677,921 518,552 Other investments 19,886,724 19,896,996 20,422,107 20,435,635 Financial assets at fair value through profit or loss 293,880 293,880 241,029 241,029 Available-for-sale financial assets 19,167,965 19,167,965 19,678,925 19,678,925 Loans and receivables 424,879 435,151 502,152 515,680 Unit-linked and index-linked life insurance investments 5,154,053 5,154,053 5,218,124 5,218,124 Receivables, including insurance receivables 714,823 714,823 684,249 684,249 Cash 592,583 592,583 640,713 640,713 Financial liabilities Subordinated liabilities 1,057,559 1,150,264 1,069,920 1,231,774 Financial liabilities 723,317 723,317 693,566 693,566 Liabilities from bonds and loans 599,490 599,490 610,098 610,098 Derivative financial instruments 21,843 21,843 1,908 1,908 Lease liabilities 101,984 101,984 81,560 81,560 Liabilities and other items classified as liabilities 1,017,197 1,017,197 994,221 994,221 Investments 1. Investment property Land and buildings, including buildings on third-party land, held as long-term investments to generate rent reve- nue and/or for the purpose of capital appreciation are measured in accordance with the cost model. The invest- ment property is subject to straight line depreciation over the useful life of 15 to 80 years and is recognised under the item “Net investment income”. The fair value is determined using reports prepared by independent experts. These expert reports are prepared based on the income approach. It requires making as- sumptions about the future, principally concerning the discount rate, the exit yield, the expected utilisation (va- cancy rate), the development of future rental charges and the condition of the land and buildings. Property value, location, usable area and usage category for the property are also taken into account. For this reason, all measurements of the fair value for the land and buildings come under Level 3 of the hierarchy in accordance with IFRS 13. The measurement techniques respond to the underlying assumptions and parameters. For instance, any reduction in the discount rate applied would result in an increase in the values ascertained for the land and buildings if the other assumptions and pa- rameters remained unchanged. Conversely, any reduction in the expected utilisation or the expected rental charges would, for instance, result in a decrease in the values ascertained for the land and build- ings if the other assumptions and parameters remained unchanged. The measurement-related assumptions and parameters are ascertained at each key date based on the best estimate by management with due respect to the cur- rent prevailing market conditions. 81 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Acquisition costs In € thousand At 1 January 2020 1,809,883 Currency translation –20,596 Change in basis of consolidation 97,606 Additions 52,232 Disposals –5,201 Reclassifications –14,408 At 31 December 2020 1,919,516 At 1 January 2021 1,919,516 Currency translation 785 Change in basis of consolidation 49,612 Additions 10,352 Disposals –14,178 Reclassifications 24,807 At 31 December 2021 1,990,893 Accumulated depreciation and impairment losses In € thousand At 1 January 2020 –672,439 Currency translation 6,118 Additions from depreciation –38,344 Additions from impairment –9,459 Disposals 2,214 Reclassifications 5,986 Reversal of impairment 5,621 At 31 December 2020 –700,303 At 1 January 2021 –700,303 Currency translation –1,096 Change in basis of consolidation 3,007 Additions from depreciation –41,208 Additions from impairment –7,206 Disposals 6,525 Reclassifications –8,815 Reversal of impairment 61 At 31 December 2021 –749,034 Carrying amounts In € thousand Property and casualty insurance Health insurance Life insurance Total At 1 January 2020 214,693 242,077 680,674 1,137,444 At 31 December 2020 196,515 235,293 787,405 1,219,213 At 31 December 2021 183,910 236,456 821,493 1,241,860 Fair values In € thousand Property and casualty insurance Health insurance Life insurance Total At 31 December 2020 439,767 624,609 1,456,785 2,521,161 At 31 December 2021 444,511 719,560 1,593,486 2,757,558 2. Financial assets accounted for using the equity m ethod Investments in associates are accounted for using the equity method. They are initially recognised at acquisition cost, which also includes transaction costs. After initial recognition, the consolidated financial statements include the Group’s share in profit/(loss) for the period and in changes in other comprehensive income until the date the applicable influence ends. At each reporting date, UNIQA reviews whether there are any indications that the investments in associates are impaired. If this is the case, then the impairment loss is recorded as the difference between the participation car- rying amount of the associate and the corresponding re- coverable amount and recognised separately in prof- it/(loss) for the period. An impairment loss is reversed in the event of an advantageous change in the estimates used to determine the recoverable amount. Consolidated Financial Statements 82 Reconciliation of summarised financial information In € thousand STRABAG SE Associated companies not material on a stand-alone basis 2021 1) 2020 2) 2021 2020 Net assets at 1 January 3,966,748 3,789,440 189,059 162,884 Change in basis of consolidation 0 0 –6,962 0 Dividends –707,940 –92,340 –4,029 –495 Profit/(loss) after taxes 461,217 366,695 27,159 27,562 Other comprehensive income 47,726 –97,046 –62 –892 Net assets at 31 December 3,767,752 3,966,748 205,165 189,059 Shares in associated companies 15.29% 14.26% Various investment amounts Carrying amount 575,903 606,320 80,490 71,601 1) Estimate for 31 Dec. 2021 based on financial information as at 30 July 2021 on STRABAG SE available as at the reporting date 2) The carrying amounts are calculated based on the shares in circulation. 2021: 15.29%, 2020: 15.29% As at 31 December 2021, UNIQA held a 15.3 per cent stake in STRABAG SE (31 December 2020: 14.3 per cent). UNIQA treats STRABAG SE as an associate due to con- tractual arrangements. As part of the accounting using the equity method, an assessment of the share in STRABAG SE was made, based on the financial information pub- lished at 30 June 2021, for the period up until 31 December 2021. The fair value of the shares is based on the stock market price at 31 December 2021 and amounts to €574,762 thousand (2020: €446,950 thousand). Summarised statement of comprehensive income STRABAG SE 1) In € thousand 1–6/2021 1–6/2020 Revenue 6,535,483 6,321,813 Depreciation –266,095 –255,012 Interest income 12,546 20,572 Interest expenses –15,941 –34,058 Income taxes –45,854 –30,984 Profit/(loss) for the period 90,941 630 Other comprehensive income 29,386 –58,194 Total comprehensive income 120,327 –57,564 1) STRABAG SE Semi-Annual Report 2021 as published in August 2021 Summarised statement of financial position STRABAG SE 1) In € thousand 30/6/2021 31/12/2020 Cash and cash equivalents 1,875,307 2,856,954 Other current assets 4,672,450 4,124,139 Current assets 6,547,757 6,981,093 Non-current assets 5,127,349 5,153,348 Total assets 11,675,106 12,134,441 Current financial liabilities 433,790 163,896 Other current liabilities 5,532,321 5,479,476 Current liabilities 5,966,111 5,643,372 Non-current financial liabilities 728,924 992,111 Other non-current liabilities 1,463,689 1,390,738 Non-current liabilities 2,192,613 2,382,849 Total liabilities 8,158,724 8,026,221 Net assets 3,516,382 4,108,220 1) STRABAG SE Semi-Annual Report 2021 as published in August 2021 All other financial assets accounted for using the equity method are negligible from the perspective of the Group when considered individually and are stated in aggregate form. The financial statements of the associates most recently published have been used for the purpose of the account- ing using the equity method, and have been adjusted based on any essential transactions between the relevant report- ing date and 31 December 2021. 82 Reconciliation of summarised financial information In € thousand STRABAG SE Associated companies not material on a stand-alone basis 2021 1) 2020 2) 2021 2020 Net assets at 1 January 3,966,748 3,789,440 189,059 162,884 Change in basis of consolidation 0 0 –6,962 0 Dividends –707,940 –92,340 –4,029 –495 Profit/(loss) after taxes 461,217 366,695 27,159 27,562 Other comprehensive income 47,726 –97,046 –62 –892 Net assets at 31 December 3,767,752 3,966,748 205,165 189,059 Shares in associated companies 15.29% 14.26% Various investment amounts Carrying amount 575,903 606,320 80,490 71,601 1) Estimate for 31 Dec. 2021 based on financial information as at 30 July 2021 on STRABAG SE available as at the reporting date 2) The carrying amounts are calculated based on the shares in circulation. 2021: 15.29%, 2020: 15.29% As at 31 December 2021, UNIQA held a 15.3 per cent stake in STRABAG SE (31 December 2020: 14.3 per cent). UNIQA treats STRABAG SE as an associate due to con- tractual arrangements. As part of the accounting using the equity method, an assessment of the share in STRABAG SE was made, based on the financial information pub- lished at 30 June 2021, for the period up until 31 December 2021. The fair value of the shares is based on the stock market price at 31 December 2021 and amounts to €574,762 thousand (2020: €446,950 thousand). Summarised statement of c omprehensive income STRABAG SE 1) In € thousand 1–6/2021 1–6/2020 Revenue 6,535,483 6,321,813 Depreciation –266,095 –255,012 Interest income 12,546 20,572 Interest expenses –15,941 –34,058 Income taxes –45,854 –30,984 Profit/(loss) for the period 90,941 630 Other comprehensive income 29,386 –58,194 Total comprehensive income 120,327 –57,564 1) STRABAG SE Semi-Annual Report 2021 as published in August 2021 Summarised statement of f inancial position STRABAG SE 1) In € thousand 30/6/2021 31/12/2020 Cash and cash equivalents 1,875,307 2,856,954 Other current assets 4,672,450 4,124,139 Current assets 6,547,757 6,981,093 Non-current assets 5,127,349 5,153,348 Total assets 11,675,106 12,134,441 Current financial liabilities 433,790 163,896 Other current liabilities 5,532,321 5,479,476 Current liabilities 5,966,111 5,643,372 Non-current financial liabilities 728,924 992,111 Other non-current liabilities 1,463,689 1,390,738 Non-current liabilities 2,192,613 2,382,849 Total liabilities 8,158,724 8,026,221 Net assets 3,516,382 4,108,220 1) STRABAG SE Semi-Annual Report 2021 as published in August 2021 All other financial assets accounted for using the equity method are negligible from the perspective of the Group when considered individually and are stated in aggregate form. The financial statements of the associates most recently published have been used for the purpose of the account- ing using the equity method, and have been adjusted based on any essential transactions between the relevant report- ing date and 31 December 2021. 83 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Summary of information on associated companies not material on a stand-alone basis In € thousand 1–12/2021 1–12/2020 Group’s share of profit from continuing operations 10,588 10,827 Group’s share of loss from continuing operations 0 –36 Group’s share of other comprehensive income –25 –357 Group’s share of total comprehensive income 10,563 10,434 3. Other investments and unit-linked and index-linked l ife insurance investments UNIQA has applied the deferral approach for IFRS 9 since 1 January 2018. This enables UNIQA to postpone the date of first-time application of IFRS 9 until IFRS 17 comes into force. Financial assets are recognised for the first time on the settlement date. They are derecognised when the contrac- tual rights to cash flows from an asset expire or the rights to receive the cash flows in a transaction in which all ma- jor risks and opportunities connected with the ownership of the financial asset are transferred. Financial assets at fair value through profit or loss Financial assets are recognised at fair value through profit or loss if the asset is either held for trading or is designated at fair value and recognised in profit and loss (fair value option). These include structured bonds, selected debt and equity instruments as well as derivatives and investment certificates whose original classification fell within this category. The fair value option is applied to structured products that are not split between the underlying transaction and the derivative but are instead accounted for as a unit. Unreal- ised gains and losses are recognised in profit/(loss) for the period. The maximum default risk of these products is limited to the carrying amount. Furthermore, there are no hedging relationships or credit derivatives for these finan- cial assets. The adjustment in fair values of these securi- ties was not due to adjustments in credit risk. Derivatives are used within the limits permitted under the Austrian Insurance Supervisory Act for hedging invest- ments and for increasing earnings. All fluctuations in val- ue are recognised in profit/(loss) for the period. Financial assets from derivative financial instruments are recognised under other investments. Financial liabilities from derivative financial instruments are recognised un- der financial liabilities. Available-for-sale financial assets Available-for-sale financial assets are initially measured at fair value plus directly attributable transaction costs. Sub- sequently, available-for-sale financial assets are measured at fair value. Corresponding value changes, with the excep- tion of impairment and foreign exchange differences in the case of available-for-sale debt securities, are recog- nised in other comprehensive income. When an asset is derecognised, the accumulated other comprehensive in- come is reclassified to profit/(loss) for the period. Impairment of available-for-sale financial assets is recognised in profit/(loss) for the period by reclassifying the losses accumulated in equity. The accumulated loss that is reclassified from equity to profit/(loss) for the pe- riod is the difference between the acquisition cost, net of any redemptions, amortisations and less any impairment loss previously recognised in profit or loss – and current fair value. If the fair value of an impaired, available-for- sale debt instrument increases in a subsequent period and the increase can be objectively related to an event occur- ring after the impairment was recognised, the impairment is reversed, with the amount of the reversal recognised in profit/loss for the period. Reversals of impairment losses of equity instruments held at fair value cannot be recog- nised in profit/(loss) for the period. Loans and receivables When first recognised, loans and receivables are measured at their fair value plus directly attributable transaction costs. Subsequently, they are measured at amortised cost using the effective interest method. For debt instruments and assets in the category “Loans and receivables”, this test is executed within the frame- work of an internal impairment process. If there are objec- tive indications that the value currently attributed is not tenable, an impairment is recognised. Objective indications that financial assets are impaired are:  the default or delay of a debtor,  the opening of bankruptcy proceedings for a debtor, or signs indicating that such proceedings are imminent,  adverse changes in the rating of borrowers or issuers, Consolidated Financial Statements 84  changes in the market activity of a security, or  other observable data that indicate a significant decrease in the expected payments from a group of financial as- sets. In the case of an investment in an equity instrument, a significant or prolonged decline in the fair value below its cost is also objective evidence of impairment. A significant decrease is a decrease of 20 per cent, and a prolonged de- cline is one that lasts for at least nine months. Impairment is calculated as the difference between the carrying amount and the present value of the estimated future cash flows, discounted at the original effective in- terest rate of the asset. Losses are recognised in prof- it/(loss) for the period. If there are no realistic chances of recovering the asset, an impairment has to be recognised. In case of an event that causes a reversal of impairment losses, this is recognised in profit/(loss) for the period. In the event of a definitive non-performance, the asset is derecognised. Other investments are broken down into the following classes and categories of financial instruments: Other investments At 31 December 2021 In € thousand Variable-income securities Fixed-income securities Loans and other investments Derivative financial instruments Investments under investment contracts Total Financial assets at fair value through profit or loss 52,352 182,475 0 2,792 56,260 293,880 Available-for-sale financial assets 1,331,890 17,836,075 0 0 0 19,167,965 Loans and receivables 0 62,691 362,187 0 0 424,879 Total 1,384,242 18,081,241 362,187 2,792 56,260 19,886,724 of which fair value option 52,352 182,475 0 0 0 234,827 Other investments At 31 December 2020 In € thousand Variable-income securities Fixed-income securities Loans and other investments Derivative financial instruments Investments under investment contracts Total Financial assets at fair value through profit or loss 6,442 162,844 0 17,823 53,920 241,029 Available-for-sale financial assets 978,834 18,700,091 0 0 0 19,678,925 Loans and receivables 0 88,269 413,883 0 0 502,152 Total 985,276 18,951,204 413,883 17,823 53,920 20,422,107 of which fair value option 6,442 162,844 0 0 0 169,286 84  changes in the market activity of a security, or  other observable data that indicate a significant decrease in the expected payments from a group of financial as- sets. In the case of an investment in an equity instrument, a significant or prolonged decline in the fair value below its cost is also objective evidence of impairment. A significant decrease is a decrease of 20 per cent, and a prolonged de- cline is one that lasts for at least nine months. Impairment is calculated as the difference between the carrying amount and the present value of the estimated future cash flows, discounted at the original effective in- terest rate of the asset. Losses are recognised in prof- it/(loss) for the period. If there are no realistic chances of recovering the asset, an impairment has to be recognised. In case of an event that causes a reversal of impairment losses, this is recognised in profit/(loss) for the period. In the event of a definitive non-performance, the asset is derecognised. Other investments are broken down into the following classes and categories of financial instruments: Other investments At 31 December 2021 In € thousand Variable-income securities Fixed-income securities Loans and other investments Derivative financial instruments Investments under investment contracts Total Financial assets at fair value through profit or loss 52,352 182,475 0 2,792 56,260 293,880 Available-for-sale financial assets 1,331,890 17,836,075 0 0 0 19,167,965 Loans and receivables 0 62,691 362,187 0 0 424,879 Total 1,384,242 18,081,241 362,187 2,792 56,260 19,886,724 of which fair value option 52,352 182,475 0 0 0 234,827 Other investments At 31 December 2020 In € thousand Variable-income securities Fixed-income securities Loans and other investments Derivative financial instruments Investments under investment contracts Total Financial assets at fair value through profit or loss 6,442 162,844 0 17,823 53,920 241,029 Available-for-sale financial assets 978,834 18,700,091 0 0 0 19,678,925 Loans and receivables 0 88,269 413,883 0 0 502,152 Total 985,276 18,951,204 413,883 17,823 53,920 20,422,107 of which fair value option 6,442 162,844 0 0 0 169,286 85 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Carrying amounts of other investments, with the excep- tion of reclassified bonds, represent fair values. Reclassi- fied bonds are subsumed in the item “Fixed-income secu- rities” under “Loans and receivables”, the fair value of which amounts to €72,964 thousand at 31 December 2021 (31 December 2020: €101,797 thousand). Unit-linked and index-linked life insurance investments are broken down into the following classes and categories of financial instruments: Unit-linked and index-linked life insurance investments At 31 December 2021 In € thousand Variable-income securities Fixed-income securities Loans and other investments Derivative financial instruments Total Financial assets at fair value through profit or loss 2,532,889 2,515,441 86,368 19,355 5,154,053 Total 2,532,889 2,515,441 86,368 19,355 5,154,053 Unit-linked and index-linked life insurance investments At 31 December 2020 In € thousand Variable-income securities Fixed-income securities Loans and other investments Derivative financial instruments Total Financial assets at fair value through profit or loss 2,076,362 3,024,384 117,378 0 5,218,124 Total 2,076,362 3,024,384 117,378 0 5,218,124 Determination of fair value A range of accounting policies and disclosures requires the determination of the fair value of financial and non- financial assets and liabilities. UNIQA has defined a con- trol framework with regard to the determination of fair value. This includes a measurement team, which bears general responsibility for monitoring all major measure- ments of fair value, including Level 3 fair values, and re- ports directly to the respective Member of the Manage- ment Board. A review of the major unobservable inputs and the meas- urement adjustments is carried out regularly. If infor- mation from third parties (e.g. price quotations from bro- kers or price information services) is used to determine fair values, the evidence obtained from third parties is examined in order to see whether such measurements meet the requirements of IFRSs. The level in the fair value hierarchy to which these measurements are attributable is also tested. Major items in the measurement are reported to the Audit Committee. As far as possible, UNIQA uses data that are observable on the market when determining the fair value of an asset or a liability. Based on the inputs used in the valuation tech- niques, the fair values are assigned to different levels in the fair value hierarchy.  Level 1: quoted prices (unadjusted) on active markets for identical assets and liabilities. At UNIQA, these primarily involve quoted shares, quoted bonds and quoted invest- ment funds.  Level 2: measurement parameters that are not quoted prices included in Level 1 but which can be observed for the asset or liability either directly (i.e. as a price) or in- directly (i.e. derived from prices), or are based on prices from markets that have been classified as inactive. The parameters that can be observed here include, for exam- ple, exchange rates, yield curves and volatilities. At UNIQA, these include in particular quoted bonds that do not fulfil the conditions under Level 1, along with struc- tured products.  Level 3: measurement parameters for assets or liabilities that are not based or are only partly based on observable market data. The measurement here primarily involves application of the discounted cash flow method, compar- ative procedures with instruments for which there are observable prices and other procedures. As there are no observable parameters here in many cases, the estimates used can have a significant impact on the result of the measurement. At UNIQA, it is primarily other equity in- vestments, private equity funds and structured products that do not fulfil the conditions under Level 2 that are assigned to Level 3. Consolidated Financial Statements 86 If the inputs used to determine the fair value of an asset or a liability can be assigned to different levels of the fair value hierarchy, the entire fair value measurement is as- signed to the respective level of the fair value hierarchy that corresponds to the lowest input significant for the measurement overall. UNIQA recognises reclassifications between different levels of the fair value hierarchy at the end of the reporting period in which the change occurred. The measurement processes and methods are as follows: Financial instruments measured at fair value For the measurement of capital investments, techniques best suited for the establishment of corresponding value are applied. The following standard measurement tech- niques are applied for financial instruments which come under Levels 2 and 3:  Market approach The measurement method in the market approach is based on prices or other applicable information from market transactions which involve identical or compara- ble assets and liabilities.  Income approach The income approach corresponds to the method where- by the future (expected) payment flows or earnings are inferred on a current amount.  Cost approach The cost approach generally corresponds to the value which would have to be applied in order to procure the asset once again. 86 If the inputs used to determine the fair value of an asset or a liability can be assigned to different levels of the fair value hierarchy, the entire fair value measurement is as- signed to the respective level of the fair value hierarchy that corresponds to the lowest input significant for the measurement overall. UNIQA recognises reclassifications between different levels of the fair value hierarchy at the end of the reporting period in which the change occurred. The measurement processes and methods are as follows: Financial instruments measured at fair value For the measurement of capital investments, techniques best suited for the establishment of corresponding value are applied. The following standard measurement tech- niques are applied for financial instruments which come under Levels 2 and 3:  Market approach The measurement method in the market approach is based on prices or other applicable information from market transactions which involve identical or compara- ble assets and liabilities.  Income approach The income approach corresponds to the method where- by the future (expected) payment flows or earnings are inferred on a current amount.  Cost approach The cost approach generally corresponds to the value which would have to be applied in order to procure the asset once again. 87 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Measurement techniques and inputs in the determination of fair values Assets Price method Input factors Price model Fixed-income securities Listed bonds Listed price - - Unlisted bonds Theoretical price CDS spread, yield curves Discounted cash flow Unquoted asset-backed securities Theoretical price - Discounted cash flow, single deal review, peer Infrastructure financing Theoretical price - Discounted cash flow Variable-income securities Listed shares/investment funds Listed price - - Private equities Theoretical price Certified net asset values Net asset value method Hedge funds Theoretical price Certified net asset values Net asset value method Other shares Theoretical value WACC, (long-term) revenue growth rate, (long-term) profit margins, control premium Expert opinion Derivative financial instruments Equity basket certificate Theoretical price CDS spread, yield curves, volatilities (FX, cap/floor, swaption, constant maturity swap, shares) Black-Scholes Monte Carlo N-DIM CMS floating rate note Theoretical price CDS spread, yield curves, volatilities (FX, cap/floor, swaption, constant maturity swap, shares) LIBOR market model, Hull-White- Garman-Kohlhagen Monte Carlo CMS spread certificate Theoretical price CDS spread, yield curves, volatilities (FX, cap/floor, swaption, constant maturity swap, shares) Contract specific model FX (binary) option Theoretical price CDS spread, yield curves, volatilities (FX, cap/floor, swaption, constant maturity swap, shares) Black-Scholes-Garman-Kohlhagen Monte Carlo N-DIM Option (inflation, OTC, OTC FX options) Theoretical price CDS spread, yield curves, volatilities (FX, cap/floor, swaption, constant maturity swap, shares) Black-Scholes Monte Carlo N-DIM, contract specific model, inflation market model NKIS Structured bonds Theoretical price CDS spread, yield curves, volatilities (FX, cap/floor, swaption, constant maturity swap, shares) Black-Scholes-Garman-Kohlhagen Monte Carlo N-DIM, LMM Swap, cross currency swap Theoretical price CDS spread, yield curves, volatilities (FX, cap/floor, swaption, constant maturity swap, shares) Black-Scholes-Garman-Kohlhagen Monte Carlo N-DIM, Black-76-model, LIBOR market model, contract specific model Swaption, total return swaption Theoretical price CDS spread, yield curves, volatilities (FX, cap/floor, swaption, constant maturity swap, shares) Black - basis point volatility, contract specific model Investments under investment contracts Listed shares/investment funds Listed price - - Unlisted investment funds Theoretical price Certified net asset values Net asset value method Consolidated Financial Statements 88 Valuation hierarchy of other investments Assets and liabilities measured at fair value Level 1 Level 2 Level 3 Total In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Available-for-sale financial assets Variable-income securities 1,019,258 770,685 88 2,866 312,544 205,283 1,331,890 978,834 Fixed-income securities 13,172,587 14,048,895 3,131,198 3,535,446 1,532,290 1,115,750 17,836,075 18,700,091 Total 14,191,845 14,819,580 3,131,286 3,538,312 1,844,834 1,321,033 19,167,965 19,678,925 Financial assets at fair value through profit or loss Variable-income securities 2,828 912 1,770 1,966 47,755 3,564 52,352 6,442 Fixed-income securities 148,953 115,158 12,552 28,239 20,970 19,447 182,475 162,844 Derivative financial instruments 122 65 2,540 9,336 131 8,422 2,792 17,823 Investments under investment contracts 47,816 45,534 3,602 3,543 4,843 4,843 56,260 53,920 Total 199,718 161,669 20,464 43,084 73,698 36,277 293,880 241,029 Level 1 Level 2 Level 3 Total In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Financial liabilities Derivative financial instruments 1,830 0 7,964 1,908 12,050 0 21,843 1,908 Total 1,830 0 7,964 1,908 12,050 0 21,843 1,908 Fair values of assets and liabilities measured at amortised cost Level 1 Level 2 Level 3 Total In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Investment property 0 0 0 0 2,757,558 2,521,161 2,757,558 2,521,161 Loans and receivables Loans and other investments 0 0 271,797 278,384 90,390 135,499 362,187 413,883 Fixed-income securities 15,711 16,051 57,253 85,746 0 0 72,964 101,797 Total 15,711 16,051 329,051 364,130 90,390 135,499 435,151 515,680 Level 1 Level 2 Level 3 Total In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Financial liabilities Liabilities from bonds, loans and leases 0 0 0 0 701,474 691,657 701,474 691,657 Total 0 0 0 0 701,474 691,657 701,474 691,657 Subordinated liabilities 1,150,264 1,231,774 0 0 0 0 1,150,264 1,231,774 Transfers between Levels 1 and 2 In the reporting period transfers from Level 1 to Level 2 were made in the amount of €285,234 thousand (2020: €255,520 thousand) and from Level 2 to Level 1 in the amount of €359,168 thousand (2020: €493,055 thousand). These are attributable primarily to changes in trading frequency and trading activity. 88 Valuation hierarchy of other investments Assets and liabilities measured at fair value Level 1 Level 2 Level 3 Total In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Available-for-sale financial assets Variable-income securities 1,019,258 770,685 88 2,866 312,544 205,283 1,331,890 978,834 Fixed-income securities 13,172,587 14,048,895 3,131,198 3,535,446 1,532,290 1,115,750 17,836,075 18,700,091 Total 14,191,845 14,819,580 3,131,286 3,538,312 1,844,834 1,321,033 19,167,965 19,678,925 Financial assets at fair value through profit or loss Variable-income securities 2,828 912 1,770 1,966 47,755 3,564 52,352 6,442 Fixed-income securities 148,953 115,158 12,552 28,239 20,970 19,447 182,475 162,844 Derivative financial instruments 122 65 2,540 9,336 131 8,422 2,792 17,823 Investments under investment contracts 47,816 45,534 3,602 3,543 4,843 4,843 56,260 53,920 Total 199,718 161,669 20,464 43,084 73,698 36,277 293,880 241,029 Level 1 Level 2 Level 3 Total In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Financial liabilities Derivative financial instruments 1,830 0 7,964 1,908 12,050 0 21,843 1,908 Total 1,830 0 7,964 1,908 12,050 0 21,843 1,908 Fair values of assets and liabilities measured at amortised cost Level 1 Level 2 Level 3 Total In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Investment property 0 0 0 0 2,757,558 2,521,161 2,757,558 2,521,161 Loans and receivables Loans and other investments 0 0 271,797 278,384 90,390 135,499 362,187 413,883 Fixed-income securities 15,711 16,051 57,253 85,746 0 0 72,964 101,797 Total 15,711 16,051 329,051 364,130 90,390 135,499 435,151 515,680 Level 1 Level 2 Level 3 Total In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Financial liabilities Liabilities from bonds, loans and leases 0 0 0 0 701,474 691,657 701,474 691,657 Total 0 0 0 0 701,474 691,657 701,474 691,657 Subordinated liabilities 1,150,264 1,231,774 0 0 0 0 1,150,264 1,231,774 Transfers between Levels 1 and 2 In the reporting period transfers from Level 1 to Level 2 were made in the amount of €285,234 thousand (2020: €255,520 thousand) and from Level 2 to Level 1 in the amount of €359,168 thousand (2020: €493,055 thousand). These are attributable primarily to changes in trading frequency and trading activity. 89 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Valuation hierarchy in unit-linked and index-linked life insurance investments Assets and liabilities measured at fair value Level 1 Level 2 Level 3 Total In € thousand 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Financial assets at fair value through profit or loss 3,315,599 2,908,360 1,072,624 1,116,739 765,831 1,193,026 5,154,053 5,218,124 Total 3,315,599 2,908,360 1,072,624 1,116,739 765,831 1,193,026 5,154,053 5,218,124 Level 3 financial instruments The following table shows the changes to the fair values of financial instruments whose measurement techniques are not based on observable inputs. Fixed-income securities Other Other investments Total Unit-linked and index-linked life insurance investments In € thousand 2021 2020 2021 2020 2021 2020 2021 2020 At 1 January 1,115,750 879,787 241,560 229,648 1,357,310 1,109,434 1,193,026 120,801 Transfers from Level 3 to Level 1 –1,659 0 0 0 –1,659 0 0 0 Transfers from Level 3 to Level 2 –10,379 –39,342 0 0 –10,379 –39,342 0 0 Transfers to Level 3 18,314 2,610 0 1 18,314 2,611 1,860 604,062 Gains and losses recognised in profit or loss –31 –1,854 2,381 –24,777 2,350 –26,631 –11,769 6,710 Gains and losses recognised in other comprehensive income 16,378 14,275 3,275 1,874 19,653 16,149 0 0 Additions 788,684 258,597 238,737 108,603 1,027,421 367,201 117,992 695 Disposals –395,158 –11,267 –111,595 –88,333 –506,753 –99,600 –531,762 –10,784 Changes from currency translation 391 –189 –166 –550 226 –739 –3,516 0 Change in basis of consolidation 0 13,133 0 15,094 0 28,227 0 471,541 At 31 December 1,532,290 1,115,750 374,193 241,560 1,906,483 1,357,310 765,831 1,193,026 Sensitivities Fixed-income securities The main unobservable input in the measurement of fixed-income securities is the specific credit spread. In order to be able to measure these securities in a discount- ed cash flow model, the spreads are derived from a selec- tion of reference securities with comparable characteris- tics. For the fixed-income securities in Level 3, an increase in the discount rate by 100 basis points results in a 7.7 per cent reduction in value (2020: 7.0 per cent). A reduction in the discount rate by 100 basis points results in an 8.4 per cent increase in value (2020: 8.3 per cent). Other Other securities under Level 3 mainly comprise private equity funds and other equity investments. Private equity funds are measured based on the net asset values which are determined by the fund manager using specific unob- servable inputs for all underlying portfolio positions. This is done in accordance with the International Private Equity and Venture Capital Valuation (IPEV) Guideline. For other equity investments under Level 3, invested capi- tal is considered to be an appropriate measure of fair value. In these cases, a sensitivity analysis is not applicable. Consolidated Financial Statements 90 Carrying amounts for loans and other investments In € thousand 31/12/2021 31/12/2020 Loans Mortgage loans 6,219 7,925 Loans and advance payments on policies 11,173 12,343 Other loans 66,652 110,000 Total 84,044 130,269 Other investments Bank deposits 271,797 278,384 Deposits retained on assumed reinsurance 6,346 5,230 Total 278,143 283,614 Total sum 362,187 413,883 The carrying amounts of the loans and other investments mainly correspond to their fair values. The measurement is based on collateral and the creditworthiness of the debtor; for deposits with banks, it is based on quoted prices. Impairment of loans In € thousand 31/12/2021 31/12/2020 At 1 January –2,602 –2,713 Use 141 83 Reversal 780 16 Currency translation –4 13 At 31 December –1,685 –2,602 Contractual maturities for fair values of loans In € thousand 31/12/2021 31/12/2020 Up to 1 year 14,957 7,141 More than 1 year and up to 5 years 13,763 22,759 More than 5 years up to 10 years 51,309 95,368 More than 10 years 4,015 5,001 Total 84,044 130,269 4. Net investment income Classified by business line In € thousand Property and casualty insurance Health insurance Life insurance Total 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Investment property –2,873 –4,806 7,157 7,762 54,400 37,306 58,684 40,263 Financial assets accounted for using the equity method 11,703 10,525 26,799 21,307 42,585 33,858 81,087 65,689 Variable-income securities 24,419 –17,782 98,274 10,067 3,654 5,781 126,346 –1,934 Available for sale –2,796 –17,757 98,009 9,565 3,781 5,897 98,994 –2,295 At fair value through profit or loss 27,215 –25 264 502 –127 –116 27,352 361 Fixed-income securities 147,162 53,207 45,365 70,586 242,656 281,809 435,182 405,602 Available for sale 147,892 48,751 46,500 65,790 242,434 281,747 436,826 396,288 At fair value through profit or loss –730 4,456 –1,135 4,796 222 62 –1,643 9,314 Loans and other investments 4,065 2,283 2,322 1,133 19,048 23,940 25,434 27,356 Loans 645 816 1,567 1,327 3,908 4,808 6,120 6,951 Other investments 3,420 1,467 755 –194 15,139 19,132 19,314 20,405 Derivative financial instruments –23,606 8,910 –8,717 1,851 662 –169 –31,661 10,591 Investment administration expenses, interest paid and other investment expenses –25,674 –22,790 –8,075 –8,163 –13,373 –11,204 –47,122 –42,158 Total 135,195 29,547 163,124 104,542 349,632 371,321 647,951 505,409 Of which: Current income/expenses 113,945 108,512 98,338 93,794 308,957 316,712 521,241 519,018 Gains/losses from disposals and changes in value 21,250 –78,965 64,786 10,748 40,674 54,609 126,710 –13,609 Impairments –3,810 –35,121 –4,950 –29,698 –9,025 –5,951 –17,784 –70,770 90 Carrying amounts for loans and o ther investments In € thousand 31/12/2021 31/12/2020 Loans Mortgage loans 6,219 7,925 Loans and advance payments on policies 11,173 12,343 Other loans 66,652 110,000 Total 84,044 130,269 Other investments Bank deposits 271,797 278,384 Deposits retained on assumed reinsurance 6,346 5,230 Total 278,143 283,614 Total sum 362,187 413,883 The carrying amounts of the loans and other investments mainly correspond to their fair values. The measurement is based on collateral and the creditworthiness of the debtor; for deposits with banks, it is based on quoted prices. Impairment of loans In € thousand 31/12/2021 31/12/2020 At 1 January –2,602 –2,713 Use 141 83 Reversal 780 16 Currency translation –4 13 At 31 December –1,685 –2,602 Contractual maturities for f air values of loans In € thousand 31/12/2021 31/12/2020 Up to 1 year 14,957 7,141 More than 1 year and up to 5 years 13,763 22,759 More than 5 years up to 10 years 51,309 95,368 More than 10 years 4,015 5,001 Total 84,044 130,269 4. Net investment income Classified by business line In € thousand Property and casualty insurance Health insurance Life insurance Total 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Investment property –2,873 –4,806 7,157 7,762 54,400 37,306 58,684 40,263 Financial assets accounted for using the equity method 11,703 10,525 26,799 21,307 42,585 33,858 81,087 65,689 Variable-income securities 24,419 –17,782 98,274 10,067 3,654 5,781 126,346 –1,934 Available for sale –2,796 –17,757 98,009 9,565 3,781 5,897 98,994 –2,295 At fair value through profit or loss 27,215 –25 264 502 –127 –116 27,352 361 Fixed-income securities 147,162 53,207 45,365 70,586 242,656 281,809 435,182 405,602 Available for sale 147,892 48,751 46,500 65,790 242,434 281,747 436,826 396,288 At fair value through profit or loss –730 4,456 –1,135 4,796 222 62 –1,643 9,314 Loans and other investments 4,065 2,283 2,322 1,133 19,048 23,940 25,434 27,356 Loans 645 816 1,567 1,327 3,908 4,808 6,120 6,951 Other investments 3,420 1,467 755 –194 15,139 19,132 19,314 20,405 Derivative financial instruments –23,606 8,910 –8,717 1,851 662 –169 –31,661 10,591 Investment administration expenses, interest paid and other investment expenses –25,674 –22,790 –8,075 –8,163 –13,373 –11,204 –47,122 –42,158 Total 135,195 29,547 163,124 104,542 349,632 371,321 647,951 505,409 Of which: Current income/expenses 113,945 108,512 98,338 93,794 308,957 316,712 521,241 519,018 Gains/losses from disposals and changes in value 21,250 –78,965 64,786 10,748 40,674 54,609 126,710 –13,609 Impairments –3,810 –35,121 –4,950 –29,698 –9,025 –5,951 –17,784 –70,770 91 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Classified by type of income In € thousand Current income/expenses Gains/losses from disposals and changes in value Total of which impairment 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Financial assets at fair value through profit or loss 864 14,378 –6,816 5,889 –5,952 20,266 0 0 Variable-income securities (within the framework of fair value option) 537 760 26,816 –399 27,352 361 0 0 Fixed-income securities (within the framework of fair value option) 408 1,095 –2,052 8,219 –1,643 9,314 0 0 Derivative financial instruments –81 12,523 –31,580 –1,931 –31,661 10,591 0 0 Investments under investment contracts 1) 0 0 0 0 0 0 0 0 Available-for-sale financial assets 386,874 375,078 148,946 18,915 535,820 393,993 –10,579 –61,311 Variable-income securities 37,719 29,053 61,275 –31,348 98,994 –2,295 –10,549 –44,439 Fixed-income securities 349,155 346,025 87,671 50,263 436,826 396,288 –30 –16,872 Loans and receivables 24,942 30,157 493 –2,801 25,434 27,356 0 0 Fixed-income securities 2,667 3,724 –2 –26 2,665 3,698 0 0 Loans and other investments 22,275 26,432 495 –2,775 22,770 23,658 0 0 Investment property 74,596 74,723 –15,912 –34,460 58,684 40,263 –7,206 –9,459 Financial assets accounted for using the equity method 81,087 66,840 0 –1,151 81,087 65,689 0 0 Investment administration expenses, interest paid and other investment expenses –47,122 –42,158 0 0 –47,122 –42,158 0 0 Total 521,241 519,018 126,710 –13,609 647,951 505,409 –17,784 –70,770 1) Income from investments under investment contracts is not stated due to its transitory character. Details of net investment income In € thousand 1–12/2021 1–12/2020 Current income/expenses from investment property Rent revenue 99,234 99,575 Operational expenses –24,637 –24,851 Currency gains/losses Currency gains 68,029 90,345 Currency losses –76,798 –106,091 Profit from currency gains/losses –8,769 –15,746 Positive currency effects from investments amounting to €10,116 thousand (2020: negative currency effects amounting to €8,547 thousand) were recognised directly in equity. Net profit/(loss) by measurement category In € thousand 1–12/2021 1–12/2020 Financial assets at fair value through profit or loss Recognised in profit/(loss) for the period –5,952 20,266 Available-for-sale financial assets Recognised in profit/(loss) for the period 535,820 393,993 of which reclassified from equity to consolidated income statement –142,878 –68,659 Recognised in other comprehensive income –1,161,536 563,452 Net income –625,716 957,445 Loans and receivables Recognised in profit/(loss) for the period 25,434 27,356 Financial liabilities measured at amortised cost Recognised in profit/(loss) for the period –134,762 –64,758 Consolidated Financial Statements 92 Technical items Insurance and reinsurance contracts along with investment contracts with a discretionary participation feature fall within the scope of IFRS 4 (Insurance Con- tracts). In accordance with IAS 8, the provisions of US Generally Accepted Accounting Principles (US GAAP) in the version applicable on 1 January 2005 were applied to all cases for which IFRS 4 contains no specific regulations on recognition and measurement. For accounting and measurement of the insurance-specific items of life insur- ance with profit participation, FAS 120 was observed; FAS 60 was applied for specific items in health, property and casualty insurance and FAS 113 for reinsurance. Unit- linked life insurance, where the policyholder bears the entire investment risk, was accounted for in accordance with FAS 97. Based on the regulations, technical items must be covered by suitable assets (cover funds). As is standard in the in- surance industry, amounts dedicated to the cover funds are subject to a limitation as regards availability in the Group. Insurance and investment contracts Insurance contracts are contracts through which a signifi- cant insurance risk is assumed. Investment contracts are contracts that do not transfer a significant insurance risk and that do not include a discretionary profit participation feature. They fall under the scope of IAS 39 (Financial Instruments). Reinsurance contracts Ceded reinsurance is stated in a separate item under as- sets. The profit and loss items (premiums and payments) are deducted openly from the corresponding items in the gross account, while commission income is reported sepa- rately as its own item. Reinsurance acquired (indirect business) is recognised as an insurance contract. 5. Technical provisions Unearned premiums For short-term insurance contracts, such as most property and casualty insurance policies, premiums relating to future years are reported as unearned premiums in line with the applicable regulations of US GAAP. The amount of these unearned premiums corresponds to the insurance cover granted proportionally in future periods. Premiums levied upon entering into certain long-term contracts (e.g. upfront fees) are recognised as unearned premiums. In line with the applicable regulations of US GAAP, these fees are recorded in the same manner as the redemption of deferred acquisition costs. These unearned premiums are in principle calculated for each individual policy and ex- actly to the day. If they are attributable to life insurance, they are included in insurance provision. Insurance provision Insurance provisions are essentially established in the life and health insurance lines. Their carrying amount is de- termined based on actuarial principles on the basis of the present value determined prospectively of future benefits to be paid by the insurer less the present value of future net premiums the insurer expects to receive on an indi- vidual contract basis. Insurance provisions are also estab- lished in the property and casualty lines that cover life- long obligations (accident pensions as well as pensions in motor vehicle liability insurance). The insurance provi- sion of the life insurer is calculated by taking into account contractually agreed calculation principles, which are explained in more detail under the actuarial risks in Chap- ter 44, “Risk profile”. These calculation principles take into account assumptions related to costs, mortality, inva- lidity and interest rate changes. Reasonable safety margins are included here in order to account for the risk of ad- justments, errors and contingencies over the term of the contract. For policies that are mainly of investment character (e.g. unit-linked life insurance), the provisions of FAS 97 are used to measure insurance provision. Insurance provision is arrived at by combining the invested amounts, the change in value of the underlying investments and the withdrawals under the policy. Insurance provisions for health insurance are determined based on calculation principles that correspond to the “best estimate”, taking into account safety margins. Once calculation principles have been determined, they have to be applied to the corresponding partial portfolio for the whole duration (locked-in principle). 92 Technical items Insurance and reinsurance contracts along with investment contracts with a discretionary participation feature fall within the scope of IFRS 4 (Insurance Con- tracts). In accordance with IAS 8, the provisions of US Generally Accepted Accounting Principles (US GAAP) in the version applicable on 1 January 2005 were applied to all cases for which IFRS 4 contains no specific regulations on recognition and measurement. For accounting and measurement of the insurance-specific items of life insur- ance with profit participation, FAS 120 was observed; FAS 60 was applied for specific items in health, property and casualty insurance and FAS 113 for reinsurance. Unit- linked life insurance, where the policyholder bears the entire investment risk, was accounted for in accordance with FAS 97. Based on the regulations, technical items must be covered by suitable assets (cover funds). As is standard in the in- surance industry, amounts dedicated to the cover funds are subject to a limitation as regards availability in the Group. Insurance and investment contracts Insurance contracts are contracts through which a signifi- cant insurance risk is assumed. Investment contracts are contracts that do not transfer a significant insurance risk and that do not include a discretionary profit participation feature. They fall under the scope of IAS 39 (Financial Instruments). Reinsurance contracts Ceded reinsurance is stated in a separate item under as- sets. The profit and loss items (premiums and payments) are deducted openly from the corresponding items in the gross account, while commission income is reported sepa- rately as its own item. Reinsurance acquired (indirect business) is recognised as an insurance contract. 5. Technical provisions Unearned premiums For short-term insurance contracts, such as most property and casualty insurance policies, premiums relating to future years are reported as unearned premiums in line with the applicable regulations of US GAAP. The amount of these unearned premiums corresponds to the insurance cover granted proportionally in future periods. Premiums levied upon entering into certain long-term contracts (e.g. upfront fees) are recognised as unearned premiums. In line with the applicable regulations of US GAAP, these fees are recorded in the same manner as the redemption of deferred acquisition costs. These unearned premiums are in principle calculated for each individual policy and ex- actly to the day. If they are attributable to life insurance, they are included in insurance provision. Insurance provision Insurance provisions are essentially established in the life and health insurance lines. Their carrying amount is de- termined based on actuarial principles on the basis of the present value determined prospectively of future benefits to be paid by the insurer less the present value of future net premiums the insurer expects to receive on an indi- vidual contract basis. Insurance provisions are also estab- lished in the property and casualty lines that cover life- long obligations (accident pensions as well as pensions in motor vehicle liability insurance). The insurance provi- sion of the life insurer is calculated by taking into account contractually agreed calculation principles, which are explained in more detail under the actuarial risks in Chap- ter 44, “Risk profile”. These calculation principles take into account assumptions related to costs, mortality, inva- lidity and interest rate changes. Reasonable safety margins are included here in order to account for the risk of ad- justments, errors and contingencies over the term of the contract. For policies that are mainly of investment character (e.g. unit-linked life insurance), the provisions of FAS 97 are used to measure insurance provision. Insurance provision is arrived at by combining the invested amounts, the change in value of the underlying investments and the withdrawals under the policy. Insurance provisions for health insurance are determined based on calculation principles that correspond to the “best estimate”, taking into account safety margins. Once calculation principles have been determined, they have to be applied to the corresponding partial portfolio for the whole duration (locked-in principle). 93 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Provisions for unsettled claims The provision for unsettled claims includes both the pro- vision for claims already reported by the reporting date as well as the provision for damage that has not yet been reported but which has already occurred. The provision in property and casualty insurance is de- termined based on a best estimate. Standard actuarial models are used to calculate the claim reserves with the parameters for these based on historical data. The as- sumptions made are reviewed continuously and adjusted if necessary. Examples of material assumptions include growth in claims frequency and in average claims expens- es. Another material assumption is the settlement pat- terns for the individual lines of business which can be impacted by various factors. Assumptions regarding the future progress of claims inflation are only made to the extent that the future development is extrapolated based on historical observations. In insurance lines in which past experience does not allow the application of statisti- cal methods, calculations are made on the basis of market data or expert assessments. Discounting of claims reserves only takes place with re- spect to a small section of the annuity reserves for which an insurance provision is also formed. Recourse payments expected in future are deducted from the provision for unsettled claims. Costs of settling the claim that are di- rectly attributable to the claim event, such as costs of an expert report, are already included in the calculation for the provision. Provisions for internal settlement expense are determined in a separate calculation procedure. The calculation of the provision for unsettled claims involves uncertainty on account of the contingency risk in the un- derlying assumptions. Further information on this can be found in Chapter 44, “Risk profile”. For health insurance, provisions for unsettled claims are estimated on the basis of past experience, taking into con- sideration the known arrears in claim payments. Life insurance is calculated on an individual loss basis with the exception of the provision for unreported claims. Provision for the assumed reinsurance business generally complies with the figures of the cedents. Provisions for premium refunds and profit participation The provision for premium refunds includes the amounts for profit-related and non-profit-related profit participa- tion to which the policyholders are entitled on the basis of statutory or contractual provisions. In health and life insurance, policies with a discretionary participation feature, differences between local measure- ment and measurement in accordance with IFRSs are presented with deferred profit participation taken into account, whereby this is also reported in profit/(loss) for the period or in other comprehensive income depending on the recognition of the change in the underlying meas- urement differences. The amount of the provision for deferred profit participation generally comes to 85 per cent of the measurement differentials after tax. Other technical provisions This item essentially contains provisions for contingent losses for acquired reinsurance portfolios as well as provi- sions for expected cancellations and premium defaults. Liability Adequacy Test The Liability Adequacy Test evaluates whether the estab- lished IFRS reserves are sufficient. For life insurance port- folios, a best estimate reserve is compared with the IFRS reserve less deferred acquisition costs plus unearned rev- enue liability (URL). This calculation is done separately each quarter for mixed insurance policies, pension poli- cies, risk insurance policies, and unit-linked and index- linked policies. Because UNIQA already uses the best estimate approach for calculating loss reserves in non-life insurance, only the premiums to be expected in the future will be tested. Busi- ness lines that feature a surplus in the annual calculation of less than 5 per cent from future premiums less claims and costs expected in future are reviewed each quarter. In non-life insurance, the business lines tested are motor vehicle liability insurance, general liability insurance and other. Consolidated Financial Statements 94 Gross In € thousand Unearned premiums Insurance provision Provision for unsettled claims Provision for non-profit- related premium refunds Provision for profit-related premium refunds and/or policyholder profit participation Other technical provisions Total Property and casualty insurance At 1 January 2021 912,121 11,528 3,134,012 41,612 741 21,231 4,121,245 Foreign exchange differences 4,374 –135 3,676 –18 40 304 8,241 Portfolio changes 0 –32,667 –1 –32,668 Additions 83 1,677 981 19,611 22,353 Disposals –229 –6,293 –19,844 –26,366 Premiums written 3,489,533 3,489,533 Premiums earned –3,469,209 –3,469,209 Claims reporting year 2,206,981 2,206,981 Claims payments reporting year –1,163,699 –1,163,699 Change in claims previous years –37,812 –37,812 Claims payments previous years –748,501 –748,501 At 31 December 2021 936,819 11,248 3,361,990 36,979 1,761 21,301 4,370,098 Health insurance At 1 January 2021 19,098 3,244,673 207,236 16,807 134,848 1,213 3,623,875 Foreign exchange differences 1,068 412 619 –6 1 2,093 Portfolio changes –65 –65 Additions 192,460 10,266 43,397 1,916 248,039 Disposals –32,533 –10,551 –21,617 –1,030 –65,731 Premiums written 1,226,458 1,226,458 Premiums earned –1,212,057 –1,212,057 Claims reporting year 758,575 758,575 Claims payments reporting year –628,905 –628,905 Change in claims previous years 10,677 10,677 Claims payments previous years –147,150 –147,150 At 31 December 2021 34,567 3,405,012 200,987 16,515 156,628 2,100 3,815,808 Life insurance At 1 January 2021 9,812,856 243,527 14,982 1,372,760 6,497 11,450,622 Foreign exchange differences 29,430 2,384 44 942 19 32,820 Portfolio changes 613 32,851 –11,039 22,426 Additions 256,552 5,026 82,420 5,205 349,203 Disposals –285,480 –10,999 –599,759 –5,540 –901,779 Claims reporting year 1,233,828 1,233,828 Claims payments reporting year –1,032,022 –1,032,022 Change in claims previous years 18,452 18,452 Claims payments previous years –185,351 –185,351 At 31 December 2021 9,813,972 313,669 9,053 845,324 6,180 10,988,198 Total At 1 January 2021 931,220 13,069,057 3,584,775 73,401 1,508,349 28,940 19,195,741 Foreign exchange differences 5,442 29,707 6,679 21 982 323 43,154 Portfolio changes 0 613 118 –11,039 –10,308 Additions 449,095 16,969 126,798 26,732 619,594 Disposals –318,242 –27,843 –621,376 –26,414 –993,876 Premiums written 4,715,991 4,715,991 Premiums earned –4,681,266 –4,681,266 Claims reporting year 4,199,384 4,199,384 Claims payments reporting year –2,824,626 –2,824,626 Change in claims previous years –8,682 –8,682 Claims payments previous years –1,081,002 –1,081,002 At 31 December 2021 971,387 13,230,231 3,876,646 62,547 1,003,713 29,581 19,174,105 94 Gross In € thousand Unearned premiums Insurance provision Provision for unsettled claims Provision for non-profit- related premium refunds Provision for profit-related premium refunds and/or policyholder profit participation Other technical provisions Total Property and casualty insurance At 1 January 2021 912,121 11,528 3,134,012 41,612 741 21,231 4,121,245 Foreign exchange differences 4,374 –135 3,676 –18 40 304 8,241 Portfolio changes 0 –32,667 –1 –32,668 Additions 83 1,677 981 19,611 22,353 Disposals –229 –6,293 –19,844 –26,366 Premiums written 3,489,533 3,489,533 Premiums earned –3,469,209 –3,469,209 Claims reporting year 2,206,981 2,206,981 Claims payments reporting year –1,163,699 –1,163,699 Change in claims previous years –37,812 –37,812 Claims payments previous years –748,501 –748,501 At 31 December 2021 936,819 11,248 3,361,990 36,979 1,761 21,301 4,370,098 Health insurance At 1 January 2021 19,098 3,244,673 207,236 16,807 134,848 1,213 3,623,875 Foreign exchange differences 1,068 412 619 –6 1 2,093 Portfolio changes –65 –65 Additions 192,460 10,266 43,397 1,916 248,039 Disposals –32,533 –10,551 –21,617 –1,030 –65,731 Premiums written 1,226,458 1,226,458 Premiums earned –1,212,057 –1,212,057 Claims reporting year 758,575 758,575 Claims payments reporting year –628,905 –628,905 Change in claims previous years 10,677 10,677 Claims payments previous years –147,150 –147,150 At 31 December 2021 34,567 3,405,012 200,987 16,515 156,628 2,100 3,815,808 Life insurance At 1 January 2021 9,812,856 243,527 14,982 1,372,760 6,497 11,450,622 Foreign exchange differences 29,430 2,384 44 942 19 32,820 Portfolio changes 613 32,851 –11,039 22,426 Additions 256,552 5,026 82,420 5,205 349,203 Disposals –285,480 –10,999 –599,759 –5,540 –901,779 Claims reporting year 1,233,828 1,233,828 Claims payments reporting year –1,032,022 –1,032,022 Change in claims previous years 18,452 18,452 Claims payments previous years –185,351 –185,351 At 31 December 2021 9,813,972 313,669 9,053 845,324 6,180 10,988,198 Total At 1 January 2021 931,220 13,069,057 3,584,775 73,401 1,508,349 28,940 19,195,741 Foreign exchange differences 5,442 29,707 6,679 21 982 323 43,154 Portfolio changes 0 613 118 –11,039 –10,308 Additions 449,095 16,969 126,798 26,732 619,594 Disposals –318,242 –27,843 –621,376 –26,414 –993,876 Premiums written 4,715,991 4,715,991 Premiums earned –4,681,266 –4,681,266 Claims reporting year 4,199,384 4,199,384 Claims payments reporting year –2,824,626 –2,824,626 Change in claims previous years –8,682 –8,682 Claims payments previous years –1,081,002 –1,081,002 At 31 December 2021 971,387 13,230,231 3,876,646 62,547 1,003,713 29,581 19,174,105 95 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Reinsurers’ share In € thousand Unearned premiums Insurance provision Provision for unsettled claims Provision for non-profit- related premium refunds Provision for profit-related premium refunds and/or policyholder profit participation Other technical provisions Total Property and casualty insurance At 1 January 2021 82,259 1,378 302,912 20 2,561 389,131 Foreign exchange differences –591 0 –1,268 0 –13 –1,872 Portfolio changes 0 1,101 1,101 Additions 1,544 1,544 Disposals –4 –20 –1,681 –1,705 Premiums written 225,376 225,376 Premiums earned –258,781 –258,781 Claims reporting year 182,955 182,955 Claims payments reporting year –18,063 –18,063 Change in claims previous years 58,091 58,091 Claims payments previous years –98,866 –98,866 At 31 December 2021 48,263 1,374 426,864 2,411 478,912 Health insurance At 1 January 2021 370 467 273 1 1,110 Foreign exchange differences 12 16 0 28 Portfolio changes 303 303 Additions 3 3 Disposals –62 –62 Premiums written 4,937 4,937 Premiums earned –3,617 –3,617 Claims reporting year 1,353 1,353 Claims payments reporting year –724 –724 Change in claims previous years 231 231 Claims payments previous years –538 –538 At 31 December 2021 1,702 405 913 4 3,023 Life insurance At 1 January 2021 117,021 6,950 57 124,028 Foreign exchange differences 118 33 1 151 Portfolio changes 0 –181 –181 Additions 4,573 70 4,644 Disposals –19,205 –31 –19,236 Claims reporting year 22,500 22,500 Claims payments reporting year –20,707 –20,707 Change in claims previous years 2,517 2,517 Claims payments previous years –3,981 –3,981 At 31 December 2021 102,507 7,132 97 109,736 Total At 1 January 2021 82,629 118,865 310,135 20 2,619 514,268 Foreign exchange differences –579 118 –1,219 0 –12 –1,693 Portfolio changes 0 0 1,223 1,223 Additions 4,573 1,617 6,191 Disposals –19,270 –20 –1,713 –21,003 Premiums written 230,313 230,313 Premiums earned –262,398 –262,398 Claims reporting year 206,809 206,809 Claims payments reporting year –39,494 –39,494 Change in claims previous years 60,840 60,840 Claims payments previous years –103,385 –103,385 At 31 December 2021 49,965 104,286 434,908 2,512 591,671 Consolidated Financial Statements 96 Net In € thousand Unearned premiums Insurance provision Provision for unsettled claims Provision for non-profit- related premium refunds Provision for profit-related premium refunds and/or policyholder profit participation Other technical provisions Total Property and casualty insurance At 1 January 2021 829,862 10,150 2,831,099 41,592 741 18,669 3,732,114 Foreign exchange differences 4,965 –135 4,944 –18 40 316 10,113 Portfolio changes 0 –33,768 –1 –33,769 Additions 83 1,677 981 18,066 20,808 Disposals –225 –6,273 –18,163 –24,660 Premiums written 3,264,157 3,264,157 Premiums earned –3,210,428 –3,210,428 Claims reporting year 2,024,026 2,024,026 Claims payments reporting year –1,145,636 –1,145,636 Change in claims previous years –95,903 –95,903 Claims payments previous years –649,636 –649,636 At 31 December 2021 888,556 9,874 2,935,127 36,979 1,761 18,890 3,891,186 Health insurance At 1 January 2021 18,729 3,244,206 206,963 16,807 134,848 1,212 3,622,765 Foreign exchange differences 1,056 412 603 –6 1 2,066 Portfolio changes –368 –368 Additions 192,460 10,266 43,397 1,914 248,036 Disposals –32,471 –10,551 –21,617 –1,030 –65,669 Premiums written 1,221,521 1,221,521 Premiums earned –1,208,440 –1,208,440 Claims reporting year 757,222 757,222 Claims payments reporting year –628,181 –628,181 Change in claims previous years 10,447 10,447 Claims payments previous years –146,612 –146,612 At 31 December 2021 32,865 3,404,607 200,073 16,515 156,628 2,096 3,812,785 Life insurance At 1 January 2021 9,695,835 236,578 14,982 1,372,760 6,439 11,326,594 Foreign exchange differences 29,313 2,351 44 942 18 32,668 Portfolio changes 613 33,031 –11,039 22,606 Additions 251,979 5,026 82,420 5,135 344,559 Disposals –266,275 –10,999 –599,759 –5,509 –882,543 Claims reporting year 1,211,328 1,211,328 Claims payments reporting year –1,011,315 –1,011,315 Change in claims previous years 15,935 15,935 Claims payments previous years –181,370 –181,370 At 31 December 2021 9,711,465 306,538 9,053 845,324 6,083 10,878,462 Total At 1 January 2021 848,591 12,950,192 3,274,640 73,381 1,508,349 26,321 18,681,473 Foreign exchange differences 6,021 29,590 7,899 20 982 335 44,847 Portfolio changes 0 613 –1,105 –11,039 –11,531 Additions 444,522 16,969 126,798 25,114 613,403 Disposals –298,971 –27,823 –621,376 –24,702 –972,872 Premiums written 4,485,678 4,485,678 Premiums earned –4,418,868 –4,418,868 Claims reporting year 3,992,575 3,992,575 Claims payments reporting year –2,785,132 –2,785,132 Change in claims previous years –69,521 –69,521 Claims payments previous years –977,618 –977,618 At 31 December 2021 921,421 13,125,945 3,441,738 62,547 1,003,713 27,069 18,582,433 96 Net In € thousand Unearned premiums Insurance provision Provision for unsettled claims Provision for non-profit- related premium refunds Provision for profit-related premium refunds and/or policyholder profit participation Other technical provisions Total Property and casualty insurance At 1 January 2021 829,862 10,150 2,831,099 41,592 741 18,669 3,732,114 Foreign exchange differences 4,965 –135 4,944 –18 40 316 10,113 Portfolio changes 0 –33,768 –1 –33,769 Additions 83 1,677 981 18,066 20,808 Disposals –225 –6,273 –18,163 –24,660 Premiums written 3,264,157 3,264,157 Premiums earned –3,210,428 –3,210,428 Claims reporting year 2,024,026 2,024,026 Claims payments reporting year –1,145,636 –1,145,636 Change in claims previous years –95,903 –95,903 Claims payments previous years –649,636 –649,636 At 31 December 2021 888,556 9,874 2,935,127 36,979 1,761 18,890 3,891,186 Health insurance At 1 January 2021 18,729 3,244,206 206,963 16,807 134,848 1,212 3,622,765 Foreign exchange differences 1,056 412 603 –6 1 2,066 Portfolio changes –368 –368 Additions 192,460 10,266 43,397 1,914 248,036 Disposals –32,471 –10,551 –21,617 –1,030 –65,669 Premiums written 1,221,521 1,221,521 Premiums earned –1,208,440 –1,208,440 Claims reporting year 757,222 757,222 Claims payments reporting year –628,181 –628,181 Change in claims previous years 10,447 10,447 Claims payments previous years –146,612 –146,612 At 31 December 2021 32,865 3,404,607 200,073 16,515 156,628 2,096 3,812,785 Life insurance At 1 January 2021 9,695,835 236,578 14,982 1,372,760 6,439 11,326,594 Foreign exchange differences 29,313 2,351 44 942 18 32,668 Portfolio changes 613 33,031 –11,039 22,606 Additions 251,979 5,026 82,420 5,135 344,559 Disposals –266,275 –10,999 –599,759 –5,509 –882,543 Claims reporting year 1,211,328 1,211,328 Claims payments reporting year –1,011,315 –1,011,315 Change in claims previous years 15,935 15,935 Claims payments previous years –181,370 –181,370 At 31 December 2021 9,711,465 306,538 9,053 845,324 6,083 10,878,462 Total At 1 January 2021 848,591 12,950,192 3,274,640 73,381 1,508,349 26,321 18,681,473 Foreign exchange differences 6,021 29,590 7,899 20 982 335 44,847 Portfolio changes 0 613 –1,105 –11,039 –11,531 Additions 444,522 16,969 126,798 25,114 613,403 Disposals –298,971 –27,823 –621,376 –24,702 –972,872 Premiums written 4,485,678 4,485,678 Premiums earned –4,418,868 –4,418,868 Claims reporting year 3,992,575 3,992,575 Claims payments reporting year –2,785,132 –2,785,132 Change in claims previous years –69,521 –69,521 Claims payments previous years –977,618 –977,618 At 31 December 2021 921,421 13,125,945 3,441,738 62,547 1,003,713 27,069 18,582,433 97 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Gross In € thousand Unearned premiums Insurance provision Provision for unsettled claims Provision for non-profit- related premium refunds Provision for profit-related premium refunds and/or policyholder profit participation Other technical provisions Total Property and casualty insurance At 1 January 2020 618,125 12,380 2,607,932 30,572 1,049 10,975 3,281,033 Foreign exchange differences –22,320 –1,075 –36,545 –139 –30 –312 –60,422 Change in basis of consolidation 290,145 475,485 2,167 767,797 Portfolio changes –105 –31,846 156 –205 1,671 –30,328 Additions 1,783 39,036 16 13,197 54,032 Disposals –1,559 –28,012 –89 –6,468 –36,129 Premiums written 3,010,327 3,010,327 Premiums earned –2,984,051 –2,984,051 Claims reporting year 1,753,449 1,753,449 Claims payments reporting year –908,651 –908,651 Change in claims previous years 26,839 26,839 Claims payments previous years –752,651 –752,651 At 31 December 2020 912,122 11,528 3,134,012 41,612 741 21,231 4,121,245 Health insurance At 1 January 2020 20,857 3,075,435 198,338 14,630 125,574 693 3,435,527 Foreign exchange differences –2,083 –498 –811 –53 0 –8 –3,453 Portfolio changes –35 0 –68 32 –32 0 –103 Additions 200,896 11,459 28,000 1,192 241,548 Disposals –31,160 –9,262 –18,693 –664 –59,780 Premiums written 1,167,554 1,167,554 Premiums earned –1,167,195 –1,167,195 Claims reporting year 688,708 688,708 Claims payments reporting year –556,435 –556,435 Change in claims previous years 38,597 38,597 Claims payments previous years –161,093 –161,093 At 31 December 2020 19,098 3,244,673 207,236 16,807 134,848 1,213 3,623,875 Life insurance At 1 January 2020 9,807,418 183,565 7,181 1,068,226 4,950 11,071,340 Foreign exchange differences –67,719 –2,740 –216 –2,585 –352 –73,611 Change in basis of consolidation 156,291 53,136 7,726 764 1,264 219,182 Portfolio changes 329 –583 –1,508 –1,762 Additions 465,383 1,742 389,295 1,320 857,739 Disposals –548,846 –1,451 –81,434 –685 –632,415 Claims reporting year 1,049,951 1,049,951 Claims payments reporting year –893,296 –893,296 Change in claims previous years –13,540 –13,540 Claims payments previous years –132,965 –132,965 At 31 December 2020 9,812,856 243,527 14,982 1,372,760 6,497 11,450,622 Total At 1 January 2020 638,981 12,895,233 2,989,835 52,383 1,194,849 16,618 17,787,899 Foreign exchange differences –24,403 –69,292 –40,096 –408 –2,615 –672 –137,485 Change in basis of consolidation 290,145 156,291 528,622 7,726 764 3,431 986,979 Portfolio changes –139 329 –32,498 188 –1,745 1,671 –32,192 Additions 668,062 52,237 417,311 15,709 1,153,318 Disposals –581,565 –38,726 –100,216 –7,817 –728,324 Premiums written 4,177,881 4,177,881 Premiums earned –4,151,245 –4,151,245 Claims reporting year 3,492,107 3,492,107 Claims payments reporting year –2,358,382 –2,358,382 Change in claims previous years 51,896 51,896 Claims payments previous years –1,046,710 –1,046,710 At 31 December 2020 931,220 13,069,057 3,584,775 73,401 1,508,349 28,940 19,195,742 Consolidated Financial Statements 98 Reinsurers’ share In € thousand Unearned premiums Insurance provision Provision for unsettled claims Provision for non-profit- related premium refunds Provision for profit-related premium refunds and/or policyholder profit participation Other technical provisions Total Property and casualty insurance At 1 January 2020 29,467 12 187,799 2,462 219,739 Foreign exchange differences –1,335 –1 –2,632 –78 –4,047 Change in basis of consolidation 67,314 110,667 177,981 Portfolio changes –94 –91 –184 Additions 1,368 20 1,786 3,175 Disposals –1 –1,609 –1,610 Premiums written 161,744 161,744 Premiums earned –174,836 –174,836 Claims reporting year 55,995 55,995 Claims payments reporting year –22,813 –22,813 Change in claims previous years 51,222 51,222 Claims payments previous years –77,234 –77,234 At 31 December 2020 82,259 1,378 302,912 20 2,561 389,131 Health insurance At 1 January 2020 207 520 862 1 1,591 Foreign exchange differences –21 –115 0 –136 Portfolio changes 20 –461 –440 Disposals –54 0 –54 Premiums written 2,596 2,596 Premiums earned –2,433 –2,433 Claims reporting year 637 637 Claims payments reporting year –424 –424 Change in claims previous years 44 44 Claims payments previous years –271 –271 At 31 December 2020 370 467 273 1 1,110 Life insurance At 1 January 2020 124,186 4,451 55 128,692 Foreign exchange differences –226 –61 0 –287 Change in basis of consolidation 219 1,402 1,621 Portfolio changes –784 20 –764 Additions 68,875 6 68,881 Disposals –75,249 –3 –75,252 Claims reporting year 21,801 21,801 Claims payments reporting year –19,838 –19,838 Change in claims previous years 1,592 1,592 Claims payments previous years –2,418 –2,418 At 31 December 2020 117,021 6,950 57 124,028 Total At 1 January 2020 29,674 124,717 193,113 2,518 350,022 Foreign exchange differences –1,357 –227 –2,808 –79 –4,470 Change in basis of consolidation 67,314 219 112,069 179,602 Portfolio changes –73 –784 –532 –1,389 Additions 70,243 20 1,792 72,055 Disposals –75,304 –1,612 –76,916 Premiums written 164,340 164,340 Premiums earned –177,269 –177,269 Claims reporting year 78,433 78,433 Claims payments reporting year –43,075 –43,075 Change in claims previous years 52,858 52,858 Claims payments previous years –79,923 –79,923 At 31 December 2020 82,629 118,865 310,135 20 2,619 514,268 98 Reinsurers’ share In € thousand Unearned premiums Insurance provision Provision for unsettled claims Provision for non-profit- related premium refunds Provision for profit-related premium refunds and/or policyholder profit participation Other technical provisions Total Property and casualty insurance At 1 January 2020 29,467 12 187,799 2,462 219,739 Foreign exchange differences –1,335 –1 –2,632 –78 –4,047 Change in basis of consolidation 67,314 110,667 177,981 Portfolio changes –94 –91 –184 Additions 1,368 20 1,786 3,175 Disposals –1 –1,609 –1,610 Premiums written 161,744 161,744 Premiums earned –174,836 –174,836 Claims reporting year 55,995 55,995 Claims payments reporting year –22,813 –22,813 Change in claims previous years 51,222 51,222 Claims payments previous years –77,234 –77,234 At 31 December 2020 82,259 1,378 302,912 20 2,561 389,131 Health insurance At 1 January 2020 207 520 862 1 1,591 Foreign exchange differences –21 –115 0 –136 Portfolio changes 20 –461 –440 Disposals –54 0 –54 Premiums written 2,596 2,596 Premiums earned –2,433 –2,433 Claims reporting year 637 637 Claims payments reporting year –424 –424 Change in claims previous years 44 44 Claims payments previous years –271 –271 At 31 December 2020 370 467 273 1 1,110 Life insurance At 1 January 2020 124,186 4,451 55 128,692 Foreign exchange differences –226 –61 0 –287 Change in basis of consolidation 219 1,402 1,621 Portfolio changes –784 20 –764 Additions 68,875 6 68,881 Disposals –75,249 –3 –75,252 Claims reporting year 21,801 21,801 Claims payments reporting year –19,838 –19,838 Change in claims previous years 1,592 1,592 Claims payments previous years –2,418 –2,418 At 31 December 2020 117,021 6,950 57 124,028 Total At 1 January 2020 29,674 124,717 193,113 2,518 350,022 Foreign exchange differences –1,357 –227 –2,808 –79 –4,470 Change in basis of consolidation 67,314 219 112,069 179,602 Portfolio changes –73 –784 –532 –1,389 Additions 70,243 20 1,792 72,055 Disposals –75,304 –1,612 –76,916 Premiums written 164,340 164,340 Premiums earned –177,269 –177,269 Claims reporting year 78,433 78,433 Claims payments reporting year –43,075 –43,075 Change in claims previous years 52,858 52,858 Claims payments previous years –79,923 –79,923 At 31 December 2020 82,629 118,865 310,135 20 2,619 514,268 99 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Net In € thousand Unearned premiums Insurance provision Provision for unsettled claims Provision for non-profit- related premium refunds Provision for profit-related premium refunds and/or policyholder profit participation Other technical provisions Total Property and casualty insurance At 1 January 2020 588,658 12,369 2,420,132 30,572 1,049 8,514 3,061,293 Foreign exchange differences –20,984 –1,074 –33,913 –139 –30 –234 –56,375 Change in basis of consolidation 222,831 364,819 2,167 589,816 Portfolio changes –11 –31,755 156 –205 1,671 –30,143 Additions 414 39,016 16 11,411 50,857 Disposals –1,558 –28,012 –89 –4,860 –34,519 Premiums written 2,848,583 2,848,583 Premiums earned –2,809,215 –2,809,215 Claims reporting year 1,697,454 1,697,454 Claims payments reporting year –885,837 –885,837 Change in claims previous years –24,383 –24,383 Claims payments previous years –675,417 –675,417 At 31 December 2020 829,862 10,151 2,831,100 41,592 741 18,670 3,732,115 Health insurance At 1 January 2020 20,649 3,074,915 197,475 14,630 125,574 692 3,433,936 Foreign exchange differences –2,062 –498 –696 –53 0 –8 –3,317 Portfolio changes –55 0 393 32 –32 0 337 Additions 200,896 11,459 28,000 1,192 241,548 Disposals –31,107 –9,262 –18,693 –664 –59,726 Premiums written 1,164,958 1,164,958 Premiums earned –1,164,762 –1,164,762 Claims reporting year 688,071 688,071 Claims payments reporting year –556,012 –556,012 Change in claims previous years 38,553 38,553 Claims payments previous years –160,822 –160,822 At 31 December 2020 18,729 3,244,206 206,963 16,807 134,848 1,212 3,622,765 Life insurance At 1 January 2020 9,683,232 179,114 7,181 1,068,226 4,894 10,942,648 Foreign exchange differences –67,493 –2,679 –216 –2,585 –351 –73,324 Change in basis of consolidation 156,072 51,734 7,726 764 1,264 217,561 Portfolio changes 1,113 –603 –1,508 –998 Additions 396,508 1,742 389,295 1,314 788,858 Disposals –473,597 –1,451 –81,434 –682 –557,163 Claims reporting year 1,028,150 1,028,150 Claims payments reporting year –873,458 –873,458 Change in claims previous years –15,133 –15,133 Claims payments previous years –130,548 –130,548 At 31 December 2020 9,695,835 236,578 14,982 1,372,760 6,439 11,326,594 Total At 1 January 2020 609,307 12,770,516 2,796,722 52,383 1,194,849 14,100 17,437,877 Foreign exchange differences –23,046 –69,066 –37,288 –408 –2,615 –593 –133,015 Change in basis of consolidation 222,831 156,072 416,553 7,726 764 3,431 807,377 Portfolio changes –66 1,113 –31,966 188 –1,745 1,671 –30,804 Additions 597,818 52,217 417,311 13,917 1,081,263 Disposals –506,262 –38,726 –100,216 –6,205 –651,408 Premiums written 4,013,541 4,013,541 Premiums earned –3,973,976 –3,973,976 Claims reporting year 3,413,675 3,413,675 Claims payments reporting year –2,315,307 –2,315,307 Change in claims previous years –962 –962 Claims payments previous years –966,787 –966,787 At 31 December 2020 848,591 12,950,192 3,274,640 73,381 1,508,349 26,321 18,681,474 Consolidated Financial Statements 100 The interest rates used as an accounting basis for the in- surance provision were as follows: In per cent Health insurance Life insurance 2021 For insurance provision 1.30–5.50 0.00–4.00 For deferred acquisition costs 1.30–5.50 2.48–2.79 2020 For insurance provision 1.30–5.50 0.00–4.00 For deferred acquisition costs 1.30–5.50 2.31–2.51 Development of the provi- sion for deferred profit participation In € thousand 31/12/2021 31/12/2020 At 1 January 1,382,410 1,074,803 Fluctuation in value, available-for-sale securities –579,292 303,069 Remeasurement through profit or loss 31,897 4,538 At 31 December 835,015 1,382,410 Claims payments In € thousand 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total Financial year 714,267 778,329 798,573 729,222 734,691 746,846 814,664 844,675 1,033,986 957,846 1,079,437 1 year later 1,068,406 1,142,524 1,174,639 1,106,066 1,106,222 1,118,644 1,233,210 1,481,070 1,491,304 1,366,649 2 years later 1,177,160 1,255,972 1,285,030 1,204,327 1,202,760 1,231,387 1,569,429 1,618,802 1,620,685 3 years later 1,225,202 1,308,792 1,334,305 1,251,179 1,251,488 1,464,279 1,636,436 1,684,099 4 years later 1,251,970 1,339,606 1,362,980 1,278,898 1,435,597 1,493,126 1,671,505 5 years later 1,266,660 1,358,361 1,380,369 1,438,378 1,466,811 1,512,850 6 years later 1,278,874 1,372,186 1,523,376 1,453,604 1,479,722 7 years later 1,289,116 1,494,991 1,530,573 1,461,991 8 years later 1,381,323 1,503,368 1,543,503 9 years later 1,387,501 1,507,804 10 years later 1,392,590 Cumulated payments and provision for unsettled claims In € thousand 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Financial year 1,337,566 1,444,917 1,489,270 1,475,068 1,476,130 1,515,928 1,615,166 1,719,067 1,933,668 1,881,282 2,110,190 1 year later 1,348,006 1,436,610 1,472,322 1,457,929 1,449,504 1,495,915 1,606,939 1,972,501 1,959,874 1,836,103 2 years later 1,350,674 1,449,431 1,495,723 1,437,879 1,429,766 1,479,026 1,871,458 1,933,021 1,938,245 3 years later 1,353,309 1,454,301 1,489,480 1,413,637 1,417,989 1,699,464 1,883,684 1,938,548 4 years later 1,353,437 1,447,394 1,474,842 1,399,226 1,612,176 1,699,511 1,893,018 5 years later 1,351,386 1,447,991 1,470,199 1,563,394 1,627,982 1,708,784 6 years later 1,349,836 1,449,843 1,620,378 1,553,798 1,612,707 7 years later 1,346,159 1,578,290 1,614,232 1,556,081 8 years later 1,445,372 1,581,023 1,621,120 9 years later 1,445,308 1,572,550 10 years later 1,440,848 Settlement gains/losses 4,459 8,473 –6,888 –2,284 15,275 –9,274 –9,334 –5,527 21,629 45,179 61,711 Settlement gains/losses before 2011 –1,669 Total settlement gains/losses 60,042 Provision for unsettled claims 48,259 64,746 77,617 94,090 132,985 195,934 221,512 254,450 317,560 469,454 1,030,753 2,907,359 Provision for unsettled claims for accident years before 2011 346,851 Plus other reserve components (components not in triangle, internal claims regulation costs, etc.) 107,780 Provisions for unsettled claims (gross at 31 December 2021) 3,361,990 100 The interest rates used as an accounting basis for the in- surance provision were as follows: In per cent Health insurance Life insurance 2021 For insurance provision 1.30–5.50 0.00–4.00 For deferred acquisition costs 1.30–5.50 2.48–2.79 2020 For insurance provision 1.30–5.50 0.00–4.00 For deferred acquisition costs 1.30–5.50 2.31–2.51 Development of the provi- s ion for deferred profit p articipation In € thousand 31/12/2021 31/12/2020 At 1 January 1,382,410 1,074,803 Fluctuation in value, available-for-sale securities –579,292 303,069 Remeasurement through profit or loss 31,897 4,538 At 31 December 835,015 1,382,410 Claims payments In € thousand 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total Financial year 714,267 778,329 798,573 729,222 734,691 746,846 814,664 844,675 1,033,986 957,846 1,079,437 1 year later 1,068,406 1,142,524 1,174,639 1,106,066 1,106,222 1,118,644 1,233,210 1,481,070 1,491,304 1,366,649 2 years later 1,177,160 1,255,972 1,285,030 1,204,327 1,202,760 1,231,387 1,569,429 1,618,802 1,620,685 3 years later 1,225,202 1,308,792 1,334,305 1,251,179 1,251,488 1,464,279 1,636,436 1,684,099 4 years later 1,251,970 1,339,606 1,362,980 1,278,898 1,435,597 1,493,126 1,671,505 5 years later 1,266,660 1,358,361 1,380,369 1,438,378 1,466,811 1,512,850 6 years later 1,278,874 1,372,186 1,523,376 1,453,604 1,479,722 7 years later 1,289,116 1,494,991 1,530,573 1,461,991 8 years later 1,381,323 1,503,368 1,543,503 9 years later 1,387,501 1,507,804 10 years later 1,392,590 Cumulated payments and provision for u nsettled claims In € thousand 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Financial year 1,337,566 1,444,917 1,489,270 1,475,068 1,476,130 1,515,928 1,615,166 1,719,067 1,933,668 1,881,282 2,110,190 1 year later 1,348,006 1,436,610 1,472,322 1,457,929 1,449,504 1,495,915 1,606,939 1,972,501 1,959,874 1,836,103 2 years later 1,350,674 1,449,431 1,495,723 1,437,879 1,429,766 1,479,026 1,871,458 1,933,021 1,938,245 3 years later 1,353,309 1,454,301 1,489,480 1,413,637 1,417,989 1,699,464 1,883,684 1,938,548 4 years later 1,353,437 1,447,394 1,474,842 1,399,226 1,612,176 1,699,511 1,893,018 5 years later 1,351,386 1,447,991 1,470,199 1,563,394 1,627,982 1,708,784 6 years later 1,349,836 1,449,843 1,620,378 1,553,798 1,612,707 7 years later 1,346,159 1,578,290 1,614,232 1,556,081 8 years later 1,445,372 1,581,023 1,621,120 9 years later 1,445,308 1,572,550 10 years later 1,440,848 Settlement gains/losses 4,459 8,473 –6,888 –2,284 15,275 –9,274 –9,334 –5,527 21,629 45,179 61,711 Settlement gains/losses before 2011 –1,669 Total settlement gains/losses 60,042 Provision for unsettled claims 48,259 64,746 77,617 94,090 132,985 195,934 221,512 254,450 317,560 469,454 1,030,753 2,907,359 Provision for unsettled claims for accident years before 2011 346,851 Plus other reserve components (components not in triangle, internal claims regulation costs, etc.) 107,780 Provisions for unsettled claims (gross at 31 December 2021) 3,361,990 101 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS 6. Technical provisions for unit-linked and index-linked l ife insurance This item relates to insurance provisions and remaining technical provisions for obligations from life insurance policies where the value or income is determined by in- vestments for which the policyholder bears the risk or for which the benefit is index-linked. The investments in question are collected in asset pools, recognised at their fair value and kept separately from the other investments. As a general rule, the measurement of the provisions cor- responds with the item “Unit-linked and index-linked life insurance investments”. The policyholders are entitled to all income from these investments. The unrealised gains and losses from fluctuations in the fair values of the in- vestment pools are thus offset by the appropriate changes in these provisions. The reinsurers’ share corresponds to a liability for deposits in the same amount. An unearned revenue liability allocated to future year premium shares (such as preliminary fees) is calculated for unit-linked and index-linked life insurance contracts in accordance with FAS 97 and amortised correspondingly to deferred acquisition costs over the contract period. T echnical provisions for unit-linked and index-linked life insurance In € thousand 31/12/2021 31/12/2020 Gross 5,028,507 5,115,506 Reinsurers’ share 0 –131 Total 5,028,507 5,115,375 7. Premiums The item “Premiums written – gross” includes those amounts that have been called due, either once or on an ongoing basis in the financial year for the purposes of providing the insurance coverage. In the event of payment in instalments, premiums written are increased by the charges added during the year and the ancillary charges in line with the tariffs. In the case of unit-linked and index- linked life insurance, only the premiums decreased by the savings portion are stated in the item “Premiums written”. Premiums In € thousand 1–12/2021 1–12/2020 Premiums written – gross 6,033,405 5,261,224 Premiums written – reinsurer’s share –266,794 –190,549 Premiums written – net 5,766,610 5,070,675 Change in premiums earned – gross –36,181 –29,693 Change in premiums earned – reinsurers’ share –32,857 –11,443 Premiums earned 5,697,572 5,029,539 Direct insurance In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 3,420,488 2,952,952 Health insurance 1,218,993 1,164,558 Life insurance 1,308,767 1,079,697 Total 5,948,249 5,197,208 Of which: Austria 3,683,416 3,613,820 remaining EU member states and other states which are party to the Agreement on the European Economic Area 1,901,728 1,254,479 other countries 363,106 328,909 Total 5,948,249 5,197,208 Indirect insurance In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 69,044 57,375 Health insurance 7,465 2,996 Life insurance 8,647 3,646 Total 85,156 64,016 Consolidated Financial Statements 102 Property and casualty insurance premiums written In € thousand 1–12/2021 1–12/2020 Direct insurance Fire and business interruption insurance 291,938 273,683 Liability insurance 312,973 275,426 Household insurance 238,533 209,275 Motor TPL insurance 871,813 671,080 Legal expense insurance 102,339 99,178 Marine, aviation and transport insurance 81,662 62,908 Other motor insurance 683,252 587,090 Other property insurance 334,134 299,740 Other forms of insurance 96,724 73,040 Casualty insurance 407,121 401,532 Total 3,420,488 2,952,952 Indirect insurance Fire and business interruption insurance 25,030 27,268 Motor TPL insurance 5,459 7,123 Other forms of insurance 38,555 22,983 Total 69,044 57,375 Total direct and indirect insurance (amount consolidated) 3,489,533 3,010,327 Reinsurance premiums ceded In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 225,376 161,744 Health insurance 4,937 2,596 Life insurance 36,481 26,209 Total 266,794 190,549 Premiums earned In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 3,203,865 2,808,954 Gross 3,462,699 2,982,095 Reinsurers’ share –258,835 –173,141 Health insurance 1,213,262 1,163,614 Gross 1,217,624 1,166,261 Reinsurers’ share –4,363 –2,648 Life insurance 1,280,446 1,056,972 Gross 1,316,900 1,083,175 Reinsurers’ share –36,454 –26,203 Total 5,697,572 5,029,539 Premiums earned – indirect insurance In € thousand 1–12/2021 1–12/2020 Recognised simultaneously 56,035 51,926 Recognised with a delay of up to 1 year 226 2,976 Posted after more than 1 year 127 108 Property and casualty insurance 56,388 55,009 Recognised simultaneously 5,829 2,990 Recognised with a delay of up to 1 year 1,641 6 Health insurance 7,470 2,996 Recognised simultaneously 8,408 3,405 Recognised with a delay of up to 1 year 150 240 Posted after more than 1 year 89 0 Life insurance 8,647 3,646 Total 72,504 61,651 Earnings – indirect insurance In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 3,218 8,533 Health insurance 2,529 –111 Life insurance –2,738 –1,900 Total 3,009 6,522 102 Property and casualty insurance p remiums written In € thousand 1–12/2021 1–12/2020 Direct insurance Fire and business interruption insurance 291,938 273,683 Liability insurance 312,973 275,426 Household insurance 238,533 209,275 Motor TPL insurance 871,813 671,080 Legal expense insurance 102,339 99,178 Marine, aviation and transport insurance 81,662 62,908 Other motor insurance 683,252 587,090 Other property insurance 334,134 299,740 Other forms of insurance 96,724 73,040 Casualty insurance 407,121 401,532 Total 3,420,488 2,952,952 Indirect insurance Fire and business interruption insurance 25,030 27,268 Motor TPL insurance 5,459 7,123 Other forms of insurance 38,555 22,983 Total 69,044 57,375 Total direct and indirect insurance (amount consolidated) 3,489,533 3,010,327 Reinsurance premiums ceded In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 225,376 161,744 Health insurance 4,937 2,596 Life insurance 36,481 26,209 Total 266,794 190,549 Premiums earned In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 3,203,865 2,808,954 Gross 3,462,699 2,982,095 Reinsurers’ share –258,835 –173,141 Health insurance 1,213,262 1,163,614 Gross 1,217,624 1,166,261 Reinsurers’ share –4,363 –2,648 Life insurance 1,280,446 1,056,972 Gross 1,316,900 1,083,175 Reinsurers’ share –36,454 –26,203 Total 5,697,572 5,029,539 Premiums earned – indirect i nsurance In € thousand 1–12/2021 1–12/2020 Recognised simultaneously 56,035 51,926 Recognised with a delay of up to 1 year 226 2,976 Posted after more than 1 year 127 108 Property and casualty insurance 56,388 55,009 Recognised simultaneously 5,829 2,990 Recognised with a delay of up to 1 year 1,641 6 Health insurance 7,470 2,996 Recognised simultaneously 8,408 3,405 Recognised with a delay of up to 1 year 150 240 Posted after more than 1 year 89 0 Life insurance 8,647 3,646 Total 72,504 61,651 Earnings – indirect insurance In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 3,218 8,533 Health insurance 2,529 –111 Life insurance –2,738 –1,900 Total 3,009 6,522 103 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS 8. Insurance benefits Gross Reinsurers’ share Net In € thousand 1–12/2021 1–12/2020 1–12/2021 1–12/2020 1–12/2021 1–12/2020 Property and casualty insurance Claims expenses Claims paid 1,912,200 1,711,589 –116,929 –100,048 1,795,271 1,611,541 Change in provision for unsettled claims 256,969 117,850 –124,118 –7,169 132,851 110,681 Total 2,169,169 1,829,439 –241,047 –107,217 1,928,123 1,722,222 Change in insurance provision –394 212 1 1 –393 213 Change in other technical provisions 62 –95 –28 –2 34 –97 Non-profit-related and profit-related premium refund expenses 37,359 52,781 0 0 37,359 52,781 Total benefits 2,206,196 1,882,337 –241,074 –107,218 1,965,123 1,775,119 Health insurance Claims expenses Claims paid 771,163 745,499 –1,262 –694 769,901 744,804 Change in provision for unsettled claims –6,803 9,783 –322 14 –7,125 9,797 Total 764,360 755,282 –1,584 –680 762,776 754,602 Change in insurance provision 166,713 169,727 62 –46 166,775 169,682 Non-profit-related and profit-related premium refund expenses 68,176 38,772 0 0 68,176 38,772 Total benefits 999,249 963,782 –1,522 –726 997,727 963,056 Life insurance Claims expenses Claims paid 1,217,373 1,073,882 –24,688 –22,256 1,192,685 1,051,626 Change in provision for unsettled claims 34,907 11,204 –330 –1,137 34,577 10,067 Total 1,252,280 1,085,086 –25,018 –23,393 1,227,263 1,061,693 Change in insurance provision –150,750 –145,657 6,354 6,163 –144,395 –139,493 Change in other technical provisions –44 –161 0 0 –44 –161 Non-profit-related and profit-related premium refund expenses and/or (deferred) benefit participation expenses 58,595 34,365 –64 0 58,531 34,365 Total benefits 1,160,081 973,634 –18,727 –17,230 1,141,354 956,404 Total 4,365,526 3,819,752 –261,323 –125,174 4,104,204 3,694,579 Consolidated Financial Statements 104 9. Operating expenses In € thousand 1–12/2021 1–12/2020 Property and casualty insurance Acquisition costs Payments 760,723 671,155 Change in deferred acquisition costs –47,561 –26,506 Other operating expenses 340,115 340,144 Reinsurance commission and share of profit from reinsurance ceded –15,514 –14,068 1,037,763 970,724 Health insurance Acquisition costs Payments 115,621 115,654 Change in deferred acquisition costs –20,124 –14,930 Other operating expenses 112,135 124,594 Reinsurance commission and share of profit from reinsurance ceded –1,008 –352 206,624 224,966 Life insurance Acquisition costs Payments 237,112 175,891 Change in deferred acquisition costs 6,979 32,114 Other operating expenses 167,111 166,808 Reinsurance commission and share of profit from reinsurance ceded –7,063 –4,104 404,140 370,708 Total 1,648,527 1,566,399 104 9. Operating expenses In € thousand 1–12/2021 1–12/2020 Property and casualty insurance Acquisition costs Payments 760,723 671,155 Change in deferred acquisition costs –47,561 –26,506 Other operating expenses 340,115 340,144 Reinsurance commission and share of profit from reinsurance ceded –15,514 –14,068 1,037,763 970,724 Health insurance Acquisition costs Payments 115,621 115,654 Change in deferred acquisition costs –20,124 –14,930 Other operating expenses 112,135 124,594 Reinsurance commission and share of profit from reinsurance ceded –1,008 –352 206,624 224,966 Life insurance Acquisition costs Payments 237,112 175,891 Change in deferred acquisition costs 6,979 32,114 Other operating expenses 167,111 166,808 Reinsurance commission and share of profit from reinsurance ceded –7,063 –4,104 404,140 370,708 Total 1,648,527 1,566,399 105 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Other non-current assets 1 0. Deferred acquisition costs and v alue of business in force Deferred acquisition costs related to insurance contracts Based on US GAAP, deferred acquisition costs are ac- counted for in accordance with IFRS 4. In the case of property and casualty insurance contracts, costs directly attributable to the acquisition are deferred and distributed over the expected contract term or according to the un- earned premiums. In life insurance, the deferred acquisi- tion costs are amortised in line with the pattern of ex- pected gross profits or margins. Deferred acquisition costs for insurance activities that are directly related to new business and/or to extensions of existing policies and that vary in line with that business are capitalised. They are amortised over the term of the respective insurance con- tracts. If they are attributable to property and casualty insurance, they are amortised over the probable contrac- tual term. For long-term health insurance contracts, the amortisation of acquisition costs is measured in line with the proportionate share of earned premiums in the pre- sent value of expected future premium income. In life insurance, the acquisition costs are amortised over the duration of the contract in the same proportion as the actuarial profit margin of each individual year is realised in comparison to the total margin to be expected from the contracts. The changes in deferred acquisition costs are recognised as part of profit/(loss) for the period under the item “Operating expenses”. Non-insurance deferred acquisition costs Deferred acquisition costs not related to contracts are accounted for in accordance with IFRS 15. These are es- sentially contracts for the management of pension and investment funds. They recognise costs that would not have been incurred if the contract had not been concluded. The amortisation is carried out pro rata temporis over the term of the underlying contracts. Value of business in force Values of life, property and casualty insurance policies as well as pension fund contracts relate to expected future margins from purchased operations. They are recognised at their fair value at the acquisition date. The redemption of the current value of business in force follows the progression of the estimated gross margins. The amortisation of the value of business in force is recog- nised in the profit/(loss) for the period under “Amortisa- tion of VBI and impairment of goodwill”. Acquisition costs In € thousand Deferred acquisition costs V alue of business in force Total At 1 January 2020 1,123,795 112,195 1,235,990 Currency translation –17,174 –579 –17,753 Change in basis of consolidation 0 349,389 349,389 Disposals 0 –2,634 –2,634 Interest capitalised –366 0 –366 Capitalisation 367,275 0 367,275 Portfolio additions and disposals –199 0 –199 Amortisation –357,128 0 –357,128 At 31 December 2020 1,116,203 458,371 1,574,573 At 1 January 2021 1,116,203 458,371 1,574,573 Currency translation 3,443 4,708 8,152 Disposals 0 –2,486 –2,486 Interest capitalised 9,290 0 9,290 Capitalisation 360,661 0 360,661 Amortisation –306,587 0 –306,587 At 31 December 2021 1,183,011 460,593 1,643,603 Consolidated Financial Statements 106 Accumulated amortisation and impairment losses In € thousand Deferred acquisition costs V alue of business in force Total At 1 January 2020 –104,028 –104,028 Currency translation 534 534 Additions from amortisation –20,064 –20,064 Disposals 134 134 At 31 December 2020 –123,424 –123,424 At 1 January 2021 –123,424 –123,424 Currency translation 208 208 Additions from amortisation –58,832 –58,832 Disposals 532 532 At 31 December 2021 –181,516 –181,516 Carrying amounts In € thousand Deferred acquisition costs V alue of business in force Total At 1 January 2020 1,123,795 8,168 1,131,963 At 31 December 2020 1,116,203 334,947 1,451,149 At 31 December 2021 1,183,011 279,077 1,462,087 106 Accumulated amortisation and impairment losses In € thousand Deferred acquisition costs V alue of business in force Total At 1 January 2020 –104,028 –104,028 Currency translation 534 534 Additions from amortisation –20,064 –20,064 Disposals 134 134 At 31 December 2020 –123,424 –123,424 At 1 January 2021 –123,424 –123,424 Currency translation 208 208 Additions from amortisation –58,832 –58,832 Disposals 532 532 At 31 December 2021 –181,516 –181,516 Carrying amounts In € thousand Deferred acquisition costs V alue of business in force Total At 1 January 2020 1,123,795 8,168 1,131,963 At 31 December 2020 1,116,203 334,947 1,451,149 At 31 December 2021 1,183,011 279,077 1,462,087 107 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS 11. Intangible assets Goodwill Ascertainment and allocation of goodwill For the purpose of the impairment test, UNIQA has allo- cated the goodwill to cash-generating units (CGUs) below, which coincide with the countries in which UNIQA oper- ates. An exception to this was the SIGAL Group, in which the three countries of Albania, Kosovo and North Mace- donia were combined as one CGU due to their similar development and organisational connection:  UNIQA Austria  Albania/Kosovo/North Macedonia as subgroup of the SIGAL Group (SEE)  Bulgaria (SEE)  Poland (CE)  Russia (RU)  Czech Republic (CE)  Hungary (CE) Goodwill by CGU In € thousand 31/12/2021 31/12/2020 Albania/Kosovo/North Macedonia as subgroup of the SIGAL Group 18,055 17,689 Bulgaria 5,412 17,512 Poland 41,534 41,873 Czech Republic 232,363 219,871 Hungary 14,485 14,696 UNIQA Austria 37,737 37,737 Other 3,467 3,544 Total 353,054 352,922 Impairment test for goodwill The impairment test was performed during the preparation of the financial statements. In order to test the impairment for goodwill, the recoverable amount of the CGUs is determined. Impairment is recognised when the recoverable amount of a CGU is less than its value to be covered, consisting of goodwill and the proportional net assets. The impairment of goodwill is recognised in prof- it/(loss) for the period under the item “Amortisation of VBI and impairment of goodwill”. Determination of the recoverable amount The recoverable amount of the CGUs with goodwill allo- cated is calculated on the basis of value in use by applying generally accepted measurement principles by means of the dividend discount method. The budget projections (detailed planning phase) of the CGUs, the estimate of the long-term net profits achievable by the CGUs and long- term growth rates (perpetuity) are used as the starting point for determination of the capitalised value. The capitalised value is determined by discounting the future profits with a suitable capitalisation rate after assumed retention to strengthen the capital base. In the process, the capitalised values are separated by the three business lines, which are then totalled to yield the value for the entire company. Cash flow forecast (multi-phase model) Phase 1: five-year company planning The detailed company planning generally encompasses a period of five years. The company plans used for the calcu- lation are the result of a structured and standardised man- agement dialogue. This includes an integrated reporting and documentation process integrated into this dialogue and takes into account empirical values from previous planning periods. The plans are formally approved by the Group Manage- ment Board and also include material assumptions regard- ing the combined ratio, capital earnings, market shares and the like. Phase 2: perpetuity growth rate The last year of the detailed planning phase is used as the basis for determining cash flows in phase 2. From the 2020 financial year, the perpetuity growth rate is based on medium-term growth forecasts of the respective national economy and is not derived based on the insurance density as before. The underlying growth assumptions depend on the geographical location and range from 1 to 4 per cent. Various studies and statistical analyses were used as sources to provide a basis for determining the growth rates in order to consistently and realistically reflect the market situation and macroeconomic development. The reference sources include our own research, as well as country risks, growth rate estimations and multiples published by Damodaran (NYU Stern). Consolidated Financial Statements 108 Determining the capitalisation rate The assumptions with regard to risk-free interest rate, market risk premium and business line betas made for determining the capitalisation rate are consistent with the parameters used in the UNIQA planning and controlling process. They are based on the capital asset pricing model. In order to depict the economic situation of income values as accurately as possible, considering the volatility on the markets, the capitalisation rate was calculated as follows: a uniform, risk-free interest rate according to the Svensson method (a 30-year spot rate for German federal bonds) was used as a base interest rate. The beta factor was determined on the basis of the month- ly betas over the last ten years for a defined peer group. The betas for the non-life, life and health insurance busi- ness lines were determined using the revenues in the rele- vant business lines of the individual peer group compa- nies. The health insurance business line, which is strongly focused on the Austrian market, is operated in a manner similar to life insurance. A uniform beta factor for person- al insurance is therefore used in relation to the health and life insurance lines. In Austrian measurement practice, the market risk premi- um is derived at the reporting date from the implied mar- ket return based on capital market data. The growth factor is derived in the same manner as the growth in the profit from ordinary activities in the impairment test. An additional country risk premium was defined in ac- cordance with Professor Damodaran’s models. The basic principles for calculation of the country risk premium in accordance with the Damodaran method are as follows: the spread of credit default swap spreads in a rating class of “risk-free” US government bonds is determined starting from the rating of the country concerned (Moody’s). Then the spread is adjusted by the amount of the volatility dif- ference between equity and bond markets. The calculation also factored in the inflation differential for countries outside the eurozone. In general, the infla- tion differential represents inflation trends in different countries and is used as a key indicator in assessing com- petitiveness. In order to calculate the inflation differen- tial, the deviation of the inflation forecast for the country of the CGU in question in relation to the inflation forecast for a risk-free environment (Germany, in this case) was used. This is adjusted annually in the detailed planning by the expected inflation, and is subsequently applied for perpetuity with the value of the last year of the detailed planning phase. Capitalisation rate 2021 Discount factor Discount factor perpetuity In per cent Property/ casualty Life & health Property/ casualty Life & health Albania/Kosovo/North Macedonia as subgroup of the SIGAL Group 1) 12.8–13.8 13.5–14.5 12.1–14 12.8–14.7 Bulgaria 10.5 11.2 10.1 10.8 Austria 8.9 9.6 8.9 9.6 Poland 11.2 11.9 9.9 10.6 Russia 14.0 14.7 12.7 13.4 Czech Republic 9.9 10.6 9.1 9.8 Hungary 12.5 13.2 11.4 12.1 1) The discount rate ranges listed for the SIGAL Group relate to the spread over the respective countries grouped under these headings. 108 Determining the capitalisation rate The assumptions with regard to risk-free interest rate, market risk premium and business line betas made for determining the capitalisation rate are consistent with the parameters used in the UNIQA planning and controlling process. They are based on the capital asset pricing model. In order to depict the economic situation of income values as accurately as possible, considering the volatility on the markets, the capitalisation rate was calculated as follows: a uniform, risk-free interest rate according to the Svensson method (a 30-year spot rate for German federal bonds) was used as a base interest rate. The beta factor was determined on the basis of the month- ly betas over the last ten years for a defined peer group. The betas for the non-life, life and health insurance busi- ness lines were determined using the revenues in the rele- vant business lines of the individual peer group compa- nies. The health insurance business line, which is strongly focused on the Austrian market, is operated in a manner similar to life insurance. A uniform beta factor for person- al insurance is therefore used in relation to the health and life insurance lines. In Austrian measurement practice, the market risk premi- um is derived at the reporting date from the implied mar- ket return based on capital market data. The growth factor is derived in the same manner as the growth in the profit from ordinary activities in the impairment test. An additional country risk premium was defined in ac- cordance with Professor Damodaran’s models. The basic principles for calculation of the country risk premium in accordance with the Damodaran method are as follows: the spread of credit default swap spreads in a rating class of “risk-free” US government bonds is determined starting from the rating of the country concerned (Moody’s). Then the spread is adjusted by the amount of the volatility dif- ference between equity and bond markets. The calculation also factored in the inflation differential for countries outside the eurozone. In general, the infla- tion differential represents inflation trends in different countries and is used as a key indicator in assessing com- petitiveness. In order to calculate the inflation differen- tial, the deviation of the inflation forecast for the country of the CGU in question in relation to the inflation forecast for a risk-free environment (Germany, in this case) was used. This is adjusted annually in the detailed planning by the expected inflation, and is subsequently applied for perpetuity with the value of the last year of the detailed planning phase. Capitalisation rate 2021 Discount factor Discount factor perpetuity In per cent Property/ casualty Life & health Property/ casualty Life & health Albania/Kosovo/North Macedonia as subgroup of the SIGAL Group 1) 12.8–13.8 13.5–14.5 12.1–14 12.8–14.7 Bulgaria 10.5 11.2 10.1 10.8 Austria 8.9 9.6 8.9 9.6 Poland 11.2 11.9 9.9 10.6 Russia 14.0 14.7 12.7 13.4 Czech Republic 9.9 10.6 9.1 9.8 Hungary 12.5 13.2 11.4 12.1 1) The discount rate ranges listed for the SIGAL Group relate to the spread over the respective countries grouped under these headings. 109 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Capitalisation rate 2020 Discount factor Discount factor perpetuity In per cent Property/ casualty Life & health Property/ casualty Life & health Albania/Kosovo/North Macedonia as subgroup of the SIGAL Group 1) 12.1–13.2 12.9–14.0 11.7–13.4 12.5 - 14.1 Bulgaria 10.3 11.1 9.7 10.5 Austria 8.6 9.4 8.6 9.4 Poland 10.0 10.8 9.7 10.4 Russia 12.8 13.5 12.1 12.9 Czech Republic 9.2 10.0 8.6 9.4 Hungary 12.1 12.8 11.1 11.9 1) The discount rate ranges listed for the SIGAL Group relate to the spread over the respective countries grouped under these headings. Impairments for the financial year At the end of 2021, it became known that a significant distribution channel in the CGU Bulgaria will be eliminat- ed. For this reason, there is a significantly adjusted plan compared to the previous year, resulting in the need for impairment of €12.1 million. Sensitivity analyses In order to substantiate the results of the calculation and estimation of the value in use, sensitivity analyses with regard to the capitalisation rate and the main value drivers are performed. These analyses show that sustained surpluses on the part of the individual CGUs are highly dependent on the actual development of these assumptions within the individual national or regional economies (GDP, insurance density, purchasing power parities particularly in the CEE mar- kets) as well as the associated implementation of the indi- vidual profit goals. These forecasts and the related as- sessment of how the situation in the markets will develop in the future, under the influence of the continuing finan- cial crisis in individual markets, are the largest uncertain- ties in connection with measurement results. In the event that the insurance markets develop entirely differently from the assumptions made in those business plans and forecasts, the individual goodwill amounts may incur impairment losses. A sensitivity analysis shows that if a rise in interest rates of 50 basis points is assumed, the CGU Bulgaria’s value in use would fall below €1.6 million. An assumed interest rate increase of 100 basis points would mean that the value in use for the CGU Bulgaria would fall below €3.1 million, and below €0.3 million for the CGU SIGAL Group. An adjustment in the underlying cash flow by –5 per cent would mean the value in use for the CGU Bulgaria could fall below the carrying amount of €1.8 million. A change in cash flows of –10 per cent would result in a shortfall of €3.7 million, and of €2.4 million for the CGU SIGAL Group. Other intangible assets Other intangible assets include both purchased and inter- nally developed software, which is depreciated on a straight-line basis over its useful economic life of 2 to 20 years. Costs that are incurred at the research stage for internally generated software are recognised through profit or loss for the period in which they were incurred. Costs that are incurred in the development phase are deferred provided that it is foreseeable that the software will be completed, there is the intention and ability for future internal use, and this will result in a future economic benefit. The amortisation of the other intangible assets is recog- nised in profit/(loss) for the period on the basis of allocat- ed operating expenses under the items “Insurance bene- fits”, “Operating expenses” and “Net investment income”. Measurement of non-financial assets The carrying amounts of UNIQA’s non-financial assets – excluding deferred tax assets – are reviewed at every re- porting date to determine whether there is an indication of impairment. If this is the case, the recoverable amount of the asset is estimated. The goodwill and intangible as- sets under development are tested for impairment annual- ly, unless a triggering event occurs. Consolidated Financial Statements 110 An impairment loss on goodwill is not reversed. In the case of other assets, an impairment loss is reversed only to the extent that it does not increase the carrying amount of the asset above the carrying amount that would have been determined net of depreciation or amortisation had no impairment loss been recognised. Acquisition costs In € thousand Goodwill Intangible assets under development Other intangible assets Total At 1 January 2020 358,446 38,529 368,440 765,415 Currency translation 2,181 0 –4,717 –2,536 Change in basis of consolidation 219,767 0 8,907 228,674 Additions 0 46,270 49,879 96,148 Disposals –171,752 0 –3,385 –175,138 Reclassifications 0 –9,241 9,220 –20 At 31 December 2020 408,641 75,558 428,344 912,543 At 1 January 2021 408,641 75,558 428,344 912,543 Currency translation 12,313 –12 990 13,291 Change in basis of consolidation –58 0 9,760 9,702 Additions 0 76,958 188,584 265,542 Disposals 1,398 –35,985 –159,529 –194,116 Reclassifications 0 –12,131 12,127 –4 At 31 December 2021 422,294 104,389 480,275 1,006,958 Accumulated amortisation and im- pairment losses In € thousand Goodwill Intangible assets under development Other intangible assets Total At 1 January 2020 –121,719 0 –189,144 –310,863 Currency translation 0 0 3,538 3,538 Additions from amortisation 0 0 –24,355 –24,355 Additions from impairment –105,752 0 0 –105,752 Disposals 171,752 0 748 172,500 Reversal of impairment 0 0 9 9 At 31 December 2020 –55,719 0 –209,205 –264,924 At 1 January 2021 –55,719 0 –209,205 –264,924 Currency translation 0 0 –848 –848 Change in basis of consolidation 4 0 0 4 Additions from amortisation 0 0 –33,048 –33,048 Additions from impairment –12,100 0 0 –12,100 Disposals –1,425 0 17,669 16,244 Reclassifications 0 0 1 1 At 31 December 2021 –69,240 0 –225,431 –294,671 Carrying amounts In € thousand Goodwill Intangible assets under development Other intangible assets Total At 1 January 2020 236,727 38,529 179,296 454,553 At 31 December 2020 352,922 75,558 219,139 647,619 At 31 December 2021 353,054 104,389 254,844 712,287 Intangible assets under development and other intangible assets mainly comprise software. 110 An impairment loss on goodwill is not reversed. In the case of other assets, an impairment loss is reversed only to the extent that it does not increase the carrying amount of the asset above the carrying amount that would have been determined net of depreciation or amortisation had no impairment loss been recognised. Acquisition costs In € thousand Goodwill Intangible assets under development Other intangible assets Total At 1 January 2020 358,446 38,529 368,440 765,415 Currency translation 2,181 0 –4,717 –2,536 Change in basis of consolidation 219,767 0 8,907 228,674 Additions 0 46,270 49,879 96,148 Disposals –171,752 0 –3,385 –175,138 Reclassifications 0 –9,241 9,220 –20 At 31 December 2020 408,641 75,558 428,344 912,543 At 1 January 2021 408,641 75,558 428,344 912,543 Currency translation 12,313 –12 990 13,291 Change in basis of consolidation –58 0 9,760 9,702 Additions 0 76,958 188,584 265,542 Disposals 1,398 –35,985 –159,529 –194,116 Reclassifications 0 –12,131 12,127 –4 At 31 December 2021 422,294 104,389 480,275 1,006,958 Accumulated amortisation and im- p airment losses In € thousand Goodwill Intangible assets under development Other intangible assets Total At 1 January 2020 –121,719 0 –189,144 –310,863 Currency translation 0 0 3,538 3,538 Additions from amortisation 0 0 –24,355 –24,355 Additions from impairment –105,752 0 0 –105,752 Disposals 171,752 0 748 172,500 Reversal of impairment 0 0 9 9 At 31 December 2020 –55,719 0 –209,205 –264,924 At 1 January 2021 –55,719 0 –209,205 –264,924 Currency translation 0 0 –848 –848 Change in basis of consolidation 4 0 0 4 Additions from amortisation 0 0 –33,048 –33,048 Additions from impairment –12,100 0 0 –12,100 Disposals –1,425 0 17,669 16,244 Reclassifications 0 0 1 1 At 31 December 2021 –69,240 0 –225,431 –294,671 Carrying amounts In € thousand Goodwill Intangible assets under development Other intangible assets Total At 1 January 2020 236,727 38,529 179,296 454,553 At 31 December 2020 352,922 75,558 219,139 647,619 At 31 December 2021 353,054 104,389 254,844 712,287 Intangible assets under development and other intangible assets mainly comprise software. 111 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS 12. Property, plant and equipment Property, plant and equipment are accounted for using the cost model. Gains on the disposal of property, plant and equipment are recorded under the item “Other insurance income”, while losses are recorded under “Other technical expenses”. If the use of a property changes and an owner-occupied property becomes an investment property, the property is reclassified as investment land and buildings with the carrying amount at the date of the change. Property, plant and equipment are depreciated on a straight line basis over a useful life for buildings of 15 to 80 years and for technical systems and operating and office equipment of 2 to 20 years. Depreciation methods, useful lives and residual values are reviewed on every re- porting date and adjusted if necessary. The depreciation charges for property, plant and equipment are recognised in profit/(loss) for the period on the basis of allocated operating expenses under the items “Insurance benefits”, “Operating expenses” and “Net investment income” so that the expenses and earnings are distributed on the basis of their causation. Leases There are around 1,200 contracts throughout the entire Group which fall within the scope of the standard and for which UNIQA is lessee. Nearly all contracts are simple standard contracts. They mainly relate to real estate and in part to operating and office equipment. A significant portion of the capitalised rights of use consists of a small number of contracts concluded for an indefinite period. For these contracts, estimates were made on the basis of the most probable assumptions regarding the term and the exercise of termination options. The terms used to calcu- late these contracts are up to 40 years. The average term of the remaining contracts is between 3 and 5 years. The discount rate used to determine the liability consists of the risk-free interest rate adjusted for country risk, creditworthiness, the quality of collateral and a repayment factor. Leases with a contractual term of less than twelve months and low value assets were not recognised. Leases where the underlying asset value does not exceed a new value of €5 thousand and those with a contract term of less than twelve months were not recognised. Acquisition costs In € thousand Land and buildings for own use Usage rights from land and buildings for own use Other property, plant and equipment Usage rights from other property, plant and equipment Total At 1 January 2020 414,585 70,584 238,429 1,757 725,355 Currency translation –5,268 –409 –2,776 –62 –8,514 Change in basis of consolidation 0 27,332 3,128 2,584 33,044 Additions 1,907 31,106 21,331 119 54,463 Disposals –33,048 –29,498 –8,831 –249 –71,626 Reclassifications 14,355 0 73 0 14,428 At 31 December 2020 392,532 99,115 251,354 4,148 747,149 At 1 January 2021 392,532 99,115 251,354 4,148 747,149 Currency translation 660 442 709 36 1,847 Change in basis of consolidation 0 0 920 0 920 Additions 2,668 46,290 23,963 533 73,454 Disposals –3,013 –17,920 –20,272 –327 –41,532 Reclassifications –24,858 0 4 0 –24,854 At 31 December 2021 367,988 127,928 256,679 4,390 756,984 Consolidated Financial Statements 112 Accumulated depreciation and impairment losses In € thousand Land and buildings for own use Usage rights from land and buildings for own use Other property, plant and equipment Usage rights from other property, plant and equipment Total At 1 January 2020 –186,048 –9,937 –176,947 –643 –373,575 Currency translation 1,910 112 1,694 27 3,745 Additions from depreciation –11,142 –13,066 –16,673 –736 –41,617 Disposals 27,637 599 6,561 235 35,031 Reclassifications –5,986 0 –9 0 –5,994 At 31 December 2020 –173,628 –22,292 –185,373 –1,117 –382,410 At 1 January 2021 –173,628 –22,292 –185,373 –1,117 –382,410 Currency translation –216 –100 –511 3 –823 Change in basis of consolidation 0 0 1 0 1 Additions from depreciation –8,164 –16,491 –17,456 –1,210 –43,321 Disposals 1,949 9,590 14,386 273 26,198 Reclassifications 8,866 0 –1 0 8,865 At 31 December 2021 –171,192 –29,294 –188,955 –2,050 –391,491 Carrying amounts In € thousand Land and buildings for own use Usage rights from land and buildings for own use Other property, plant and equipment Usage rights from other property, plant and equipment Total At 1 January 2020 228,537 60,647 61,482 1,114 351,780 At 31 December 2020 218,904 76,823 65,981 3,031 364,739 At 31 December 2021 196,796 98,634 67,723 2,340 365,493 The fair values of the land and buildings for own use are derived from expert reports and are comprised as follows: Fair values In € thousand Property and casualty insurance Health insurance Life insurance Total At 31 December 2020 189,887 38,566 205,250 433,703 At 31 December 2021 192,028 16,346 199,205 407,578 Other property, plant and equipment refers mainly to technical systems and operating and office equipment. Amounts recognised in consolidated financial statements In € thousand 2021 2020 Amounts recognised in the consolidated income statement Interest on lease liabilities 998 759 Expenses relating to short-term leases 2,317 1,405 Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets 2,764 4,838 Amounts recognised in the consolidated statement of cash flows Cash outflows for leases –16,906 –13,768 112 Accumulated depreciation and i mpairment losses In € thousand Land and buildings for own use Usage rights from land and buildings for own use Other property, plant and equipment Usage rights from other property, plant and equipment Total At 1 January 2020 –186,048 –9,937 –176,947 –643 –373,575 Currency translation 1,910 112 1,694 27 3,745 Additions from depreciation –11,142 –13,066 –16,673 –736 –41,617 Disposals 27,637 599 6,561 235 35,031 Reclassifications –5,986 0 –9 0 –5,994 At 31 December 2020 –173,628 –22,292 –185,373 –1,117 –382,410 At 1 January 2021 –173,628 –22,292 –185,373 –1,117 –382,410 Currency translation –216 –100 –511 3 –823 Change in basis of consolidation 0 0 1 0 1 Additions from depreciation –8,164 –16,491 –17,456 –1,210 –43,321 Disposals 1,949 9,590 14,386 273 26,198 Reclassifications 8,866 0 –1 0 8,865 At 31 December 2021 –171,192 –29,294 –188,955 –2,050 –391,491 Carrying amounts In € thousand Land and buildings for own use Usage rights from land and buildings for own use Other property, plant and equipment Usage rights from other property, plant and equipment Total At 1 January 2020 228,537 60,647 61,482 1,114 351,780 At 31 December 2020 218,904 76,823 65,981 3,031 364,739 At 31 December 2021 196,796 98,634 67,723 2,340 365,493 The fair values of the land and buildings for own use are derived from expert reports and are comprised as follows: Fair values In € thousand Property and casualty insurance Health insurance Life insurance Total At 31 December 2020 189,887 38,566 205,250 433,703 At 31 December 2021 192,028 16,346 199,205 407,578 Other property, plant and equipment refers mainly to technical systems and operating and office equipment. Amounts recognised in consolidated financial statements In € thousand 2021 2020 Amounts recognised in the consolidated income statement Interest on lease liabilities 998 759 Expenses relating to short-term leases 2,317 1,405 Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets 2,764 4,838 Amounts recognised in the consolidated statement of cash flows Cash outflows for leases –16,906 –13,768 113 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Other current assets 1 3. Receivables, including insurance receivables In € thousand 31/12/2021 31/12/2020 Reinsurance receivables Receivables from reinsurance business 95,762 76,757 95,762 76,757 Insurance receivables from policyholders 301,426 324,837 from insurance intermediaries 28,594 29,547 from insurance companies 9,857 13,741 339,877 368,124 Other receivables Receivables from services 95,224 81,788 Receivables from investment transactions 11,047 0 Other tax refund claims 13,360 14,150 Remaining receivables 159,555 143,431 279,185 239,368 Subtotal 714,823 684,249 of which receivables with a remaining maturity of up to 1 year 694,048 680,264 more than 1 year 20,775 3,985 714,823 684,249 of which receivables with values not yet impaired up to 3 months overdue 18,374 6,939 more than 3 months overdue 5,810 4,880 Total receivables including insurance receivables 714,823 684,249 The fair values are essentially equal to the carrying amounts. Impairments Reinsurance receivables Insurance receivables 1) Other receivables In € thousand 2021 2020 2021 2020 2021 2020 At 1 January –342 0 –72,684 –12,076 –6,084 –6,971 Change in basis of consolidation 0 –380 0 –64,028 0 –625 Allocation –309 0 –10,430 –2,684 –5,895 –1,587 Use 0 38 3,330 2,481 868 2,149 Reversal 0 0 2,560 2,861 36 207 Currency translation 3 0 –225 763 –413 743 At 31 December –648 –342 –77,449 –72,684 –11,488 –6,084 1) Impairment losses related to policyholders are shown under the cancellation provision. Consolidated Financial Statements 114 14. Cash Cash in foreign currencies is measured at the exchange rate in effect on the reporting date. The item “Cash” in the consolidated statement of cash flows corresponds to the item in the consolidated statement of financial position. Taxes 1 5. Income tax Income tax In € thousand 1–12/2021 1–12/2020 Actual tax – reporting year 88,255 46,378 Actual tax – previous year 10,919 –8,736 Deferred tax –34,789 –4,867 Total 64,385 32,775 The basic corporate income tax rate applied for all seg- ments was 25 per cent. National tax regulations in con- junction with life insurance profit participation may lead to a different calculated income tax rate. In January 2022, the decision was taken in Austria to re- duce the corporate tax rate to 24 per cent in 2023 and to 23 per cent from 2024. If the new corporate tax rates were applied to the deferred tax assets or liabilities recognised at 31 December 2021 in respect of Austrian Group compa- nies (in total, surplus of deferred tax liabilities), the sur- plus of deferred tax liabilities would be reduced by €10,271 thousand and €20,543 thousand, respectively. Reconciliation statement In € thousand 1–12/2021 1–12/2020 Earnings before taxes 382,289 57,056 Expected tax expenses 1) 95,572 14,264 Adjusted by tax effects from Tax-free investment income –21,196 –17,873 Amortisation of value of business in force 3,025 26,438 Tax-neutral consolidation effect 9 –79 Other non-deductible expenses/other tax-exempt income –16,264 16,001 Changes in tax rates –5 2,024 Deviations in tax rates –35,556 –26,063 Tax deducted at source 1,476 1,562 Taxes for previous years 12,311 8,206 Lapse/impairment of loss carryforwards and other 25,014 8,293 Income tax expenses 64,385 32,775 Average effective tax burden (in per cent) 16.8 57.4 1) Earnings before taxes multiplied by the corporate income tax rate Group taxation In Austria, UNIQA exercises the option of forming a group of companies for tax purposes. There are three taxable groups of companies with the parent groups UNIQA In- surance Group AG, PremiQaMed Holding GmbH and R- FMZ Immobilienholding GmbH. The group members are generally charged, or relieved by, the corporation tax amounts attributable to them by the parent group through the distribution of their tax burden in the tax group. Losses from foreign group members are also included within the scope of taxable profits. The tax realisation for these losses is accompanied by a future tax obligation to pay income taxes at an unspecified point in time. A corresponding provision is therefore formed for future subsequent taxation of foreign losses. 16. Deferred taxes The calculation of deferred taxes is based on the specific tax rates of each country, which were between 9 and 25 per cent in the financial year (2020: between 9 and 25 per cent). 114 14. Cash Cash in foreign currencies is measured at the exchange rate in effect on the reporting date. The item “Cash” in the consolidated statement of cash flows corresponds to the item in the consolidated statement of financial position. Taxes 15 . Income tax Income tax In € thousand 1–12/2021 1–12/2020 Actual tax – reporting year 88,255 46,378 Actual tax – previous year 10,919 –8,736 Deferred tax –34,789 –4,867 Total 64,385 32,775 The basic corporate income tax rate applied for all seg- ments was 25 per cent. National tax regulations in con- junction with life insurance profit participation may lead to a different calculated income tax rate. In January 2022, the decision was taken in Austria to re- duce the corporate tax rate to 24 per cent in 2023 and to 23 per cent from 2024. If the new corporate tax rates were applied to the deferred tax assets or liabilities recognised at 31 December 2021 in respect of Austrian Group compa- nies (in total, surplus of deferred tax liabilities), the sur- plus of deferred tax liabilities would be reduced by €10,271 thousand and €20,543 thousand, respectively. Reconciliation statement In € thousand 1–12/2021 1–12/2020 Earnings before taxes 382,289 57,056 Expected tax expenses 1) 95,572 14,264 Adjusted by tax effects from Tax-free investment income –21,196 –17,873 Amortisation of value of business in force 3,025 26,438 Tax-neutral consolidation effect 9 –79 Other non-deductible expenses/other tax-exempt income –16,264 16,001 Changes in tax rates –5 2,024 Deviations in tax rates –35,556 –26,063 Tax deducted at source 1,476 1,562 Taxes for previous years 12,311 8,206 Lapse/impairment of loss carryforwards and other 25,014 8,293 Income tax expenses 64,385 32,775 Average effective tax burden (in per cent) 16.8 57.4 1) Earnings before taxes multiplied by the corporate income tax rate Group taxation In Austria, UNIQA exercises the option of forming a group of companies for tax purposes. There are three taxable groups of companies with the parent groups UNIQA In- surance Group AG, PremiQaMed Holding GmbH and R- FMZ Immobilienholding GmbH. The group members are generally charged, or relieved by, the corporation tax amounts attributable to them by the parent group through the distribution of their tax burden in the tax group. Losses from foreign group members are also included within the scope of taxable profits. The tax realisation for these losses is accompanied by a future tax obligation to pay income taxes at an unspecified point in time. A corresponding provision is therefore formed for future subsequent taxation of foreign losses. 16. Deferred taxes The calculation of deferred taxes is based on the specific tax rates of each country, which were between 9 and 25 per cent in the financial year (2020: between 9 and 25 per cent). 115 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS The deferred tax assets and deferred tax liabilities stated in the consolidated statement of financial position per- formed as follows: Net deferred tax In € thousand At 1 January 2020 –352,302 Changes recognised in profit/(loss) 4,867 Changes recognised in other comprehensive income –50,057 Changes due to changes in basis of consolidation –18,964 Foreign exchange differences 1,166 At 31 December 2020 –415,291 At 1 January 2021 –415,291 Changes recognised in profit/(loss) 34,789 Changes recognised in other comprehensive income 87,526 Changes due to changes in basis of consolidation –3,917 Foreign exchange differences –346 At 31 December 2021 –297,240 Changes recorded in other comprehensive income essen- tially relate to measurements of financial instruments available-for-sale and remeasurements of defined benefit obligations. The differences between the tax carrying amounts and the carrying amounts in the IFRS consolidated statement of financial position have the following effect: In € thousand 31/12/2021 31/12/2020 Deferred tax assets Technical items 72,087 54,528 Investments 50,820 54,482 Actuarial gains and losses on defined benefit obligations 54,909 73,309 Loss carried forward 43,890 17,046 Other items 62,604 89,675 Total 284,309 289,040 Netting effect –199,400 –280,447 Total after netting 84,909 8,594 Deferred tax liabilities Technical items 310,970 358,749 Investments 217,444 316,586 Actuarial gains and losses on defined benefit obligations 1 1 Other items 53,134 28,994 Total 581,549 704,331 Netting effect –199,400 –280,447 Total after netting 382,149 423,884 Net deferred tax –297,240 –415,291 The temporary differences in connection with shares in subsidiaries and associates for which no deferred tax lia- bilities were recognised amounted to €2,050,441 thousand (2020: €1,778,691 thousand). An assessment of the ability to realise deferred tax assets for tax losses not yet used, tax credits not yet used and deductible temporary differences requires an estimate of the amount of future taxable profits. The resulting fore- casts are based on business plans that are prepared, re- viewed and approved using a uniform procedure through- out the company. Especially convincing evidence regard- ing the value and future chance of realisation of deferred tax assets is required under internal Group policies if the relevant Group company has suffered a loss in the current or a prior period. The deferred tax assets stated include €43,890 thousand (2020: €17,046 thousand) attributable to tax loss carryfor- wards. Deferred tax assets from loss carryforwards in the amount of €33,009 thousand (2020: €11,023 thousand) were not recognised, as a realisation of these in the near future cannot be assumed, taking maturities into account. The tax loss carryforwards of €328,011 thousand (2020: €139,365 thousand) are forfeited as follows, with “more than 5 years” also including tax loss carryforwards with no forfeit date of €301,429 thousand (2020: €112,986 thousand). In € thousand 31/12/2021 31/12/2020 Up to 1 year 1) 4,227 8,358 2 to 5 years 2) 7,832 12,336 More than 5 years 3) 315,952 118,671 Total 328,011 139,365 1) Loss carryforwards for which no deferred tax assets have been recognised amount to €1,456 thousand at 31 December 2021 (31 December 2020: €1,081 thousand). 2) Loss carryforwards for which no deferred tax assets have been recognised amount to €2,754 thousand at 31 December 2021 (31 December 2020: €5,455 thousand). 3) Loss carryforwards for which no deferred tax assets have been recognised amount to €140,206 thousand at 31 December 2021 (31 December 2020: €53,409 thousand). The tax loss carryforwards include both loss carryforwards on which deferred tax assets have been recognised and loss carryforwards on which no deferred tax assets have been recognised. Consolidated Financial Statements 116 Social capital 1 7. Defined benefit plans There are individual contractual pension obligations, in- dividual contractual bridge payments, and pension allow- ances in accordance with association recommendations. The calculation of defined benefit obligations is carried out annually using the projected unit credit (PUC) meth- od. If the calculation results in a potential asset, the asset recognised is limited to the present value of any economic benefit available in the form of future refunds from the plan or reductions in future contributions to the plan. Any valid minimum funding requirements are included in the calculation of the present value of the economic benefit. Remeasurement of net liabilities from defined benefit plans are recognised directly in other comprehensive in- come. The remeasurement includes the actuarial gains and losses, the income from plan assets (not including projected interest income) and the effect of any asset ceil- ing. Net interest expenses (income) on net liabilities (as- sets) from defined benefit plans are calculated for the reporting period by applying the discount rate. The dis- count rate was used to measure the defined benefit obliga- tion at the start of the annual reporting period. This dis- count rate is applied to net liabilities (assets) from defined benefit plans on this date. Any changes in net liabilities (assets) from defined benefit plans resulting from contri- bution and benefit payments over the course of the report- ing period are taken into account. Net interest expenses and other expenses for defined benefit plans are recog- nised through profit or loss in profit/(loss) for the period. If a plan’s defined benefits are changed or a plan is cur- tailed, the resulting change in the benefit relating to past service costs or the gain or loss on the curtailment is rec- ognised directly in profit/(loss) for the period. Gains and losses from the settlement of a defined benefit plan are recognised at the date of the settlement. The defined bene- fit obligations are stated under the balance sheet item “Other provisions”. Pension entitlements Individuals who hold an individual contractual agreement can generally claim a pension when they reach the age of 60 or 65, subject to certain conditions. The amount of the pension generally depends on the number of their years of service and their last salary before leaving their active employment. In the event of death, the spouse of the indi- vidual entitled to the claim receives a pension at 60 per cent, 50 per cent or 40 per cent depending on the policy. The pensions are suspended for any period in which a termination benefit is paid, and their value is gen- erally guaranteed. The pensions that are based on individ- ual policies or on association recommendations are fi- nanced through provisions. The final pension contribution which guarantees a fixed cash value for when the benefi- ciary begins their retirement is set aside during the con- tribution phase and transferred to the pension fund at the time of retirement. The financing is specified in the pen- sion fund’s business plan, in the works council agreement and in the pension fund contract. Termination benefit entitlements In the case of employees of Austrian companies whose employment began prior to 31 December 2002 and lasted three years without interruption, the employee is entitled to termination benefits when the employment is termi- nated, unless the employee resigns, leaves without an important reason or is dismissed. 116 Social capital 17. Defined benefit plans There are individual contractual pension obligations, in- dividual contractual bridge payments, and pension allow- ances in accordance with association recommendations. The calculation of defined benefit obligations is carried out annually using the projected unit credit (PUC) meth- od. If the calculation results in a potential asset, the asset recognised is limited to the present value of any economic benefit available in the form of future refunds from the plan or reductions in future contributions to the plan. Any valid minimum funding requirements are included in the calculation of the present value of the economic benefit. Remeasurement of net liabilities from defined benefit plans are recognised directly in other comprehensive in- come. The remeasurement includes the actuarial gains and losses, the income from plan assets (not including projected interest income) and the effect of any asset ceil- ing. Net interest expenses (income) on net liabilities (as- sets) from defined benefit plans are calculated for the reporting period by applying the discount rate. The dis- count rate was used to measure the defined benefit obliga- tion at the start of the annual reporting period. This dis- count rate is applied to net liabilities (assets) from defined benefit plans on this date. Any changes in net liabilities (assets) from defined benefit plans resulting from contri- bution and benefit payments over the course of the report- ing period are taken into account. Net interest expenses and other expenses for defined benefit plans are recog- nised through profit or loss in profit/(loss) for the period. If a plan’s defined benefits are changed or a plan is cur- tailed, the resulting change in the benefit relating to past service costs or the gain or loss on the curtailment is rec- ognised directly in profit/(loss) for the period. Gains and losses from the settlement of a defined benefit plan are recognised at the date of the settlement. The defined bene- fit obligations are stated under the balance sheet item “Other provisions”. Pension entitlements Individuals who hold an individual contractual agreement can generally claim a pension when they reach the age of 60 or 65, subject to certain conditions. The amount of the pension generally depends on the number of their years of service and their last salary before leaving their active employment. In the event of death, the spouse of the indi- vidual entitled to the claim receives a pension at 60 per cent, 50 per cent or 40 per cent depending on the policy. The pensions are suspended for any period in which a termination benefit is paid, and their value is gen- erally guaranteed. The pensions that are based on individ- ual policies or on association recommendations are fi- nanced through provisions. The final pension contribution which guarantees a fixed cash value for when the benefi- ciary begins their retirement is set aside during the con- tribution phase and transferred to the pension fund at the time of retirement. The financing is specified in the pen- sion fund’s business plan, in the works council agreement and in the pension fund contract. Termination benefit entitlements In the case of employees of Austrian companies whose employment began prior to 31 December 2002 and lasted three years without interruption, the employee is entitled to termination benefits when the employment is termi- nated, unless the employee resigns, leaves without an important reason or is dismissed. 117 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Defined benefit obligations In € thousand Defined benefit obligations for pensions Plan assets at fair value Net defined benefit obligations for pensions T ermination benefits T otal defined benefit obligations At 1 January 2021 527,562 –100,632 426,930 140,560 567,490 Current service costs 21,268 0 21,268 4,480 25,748 Interest expense/income 1,826 –284 1,542 –111 1,432 Past service costs and gains or losses from settlements –2,997 0 –2,997 –4,060 –7,057 Components of defined benefit obligations recognised in the income statement 20,097 –284 19,813 310 20,123 Return on plan assets recognised in other comprehensive income 0 –6,150 –6,150 0 –6,150 Actuarial gains and losses that arise from changes in demographic assumptions 52 0 52 –57 –5 Actuarial gains and losses that arise from changes in financial assumptions –38,127 0 –38,127 –3,681 –41,808 Actuarial gains and losses that arise from experience adjustments –16,076 0 –16,076 –867 –16,943 Other comprehensive income –54,151 –6,150 –60,301 –4,605 –64,906 Changes from currency translation –1 0 –1 115 115 Payments –17,973 630 –17,343 –20,784 –38,127 Contribution to plan assets 0 –11,227 –11,227 0 –11,227 Transfer in 298 0 298 1,718 2,015 Transfer out –21,721 21,333 –388 –4,968 –5,356 Change in basis of consolidation –348 0 –348 –3,851 –4,199 At 31 December 2021 453,764 –96,329 357,434 108,493 465,927 Defined benefit obligations In € thousand Defined benefit obligations for pensions Plan assets at fair value Net defined benefit obligations for pensions T ermination benefits T otal defined benefit obligations At 1 January 2020 498,469 –100,536 397,933 134,318 532,251 Current service costs 20,936 0 20,936 10,524 31,460 Interest expense/income 3,901 –713 3,188 378 3,567 Past service costs and gains or losses from settlements –2,156 0 –2,156 0 –2,156 Components of defined benefit obligations recognised in the income statement 22,682 –713 21,969 10,902 32,871 Return on plan assets recognised in other comprehensive income 0 10 10 0 10 Actuarial gains and losses that arise from changes in demographic assumptions 57 0 57 –62 –5 Actuarial gains and losses that arise from changes in financial assumptions 32,306 0 32,306 3,822 36,129 Actuarial gains and losses that arise from experience adjustments 941 0 941 –694 248 Other comprehensive income 33,305 10 33,315 3,066 36,381 Changes from currency translation –43 0 –43 27 –16 Payments –17,171 624 –16,547 –7,537 –24,085 Contribution to plan assets 91 –9,831 –9,741 0 –9,741 Transfer in 75 0 75 –217 –142 Transfer out –9,846 9,816 –31 0 –31 At 31 December 2020 527,562 –100,632 426,930 140,560 567,490 Consolidated Financial Statements 118 The plan assets for the defined benefit obligations are comprised as follows: In per cent 31/12/2021 31/12/2020 Listed Unlisted Listed Unlisted Bonds – euro 22.2 1.6 22.4 1.3 Corporate bonds – euro 24.2 1.1 30.4 1.0 Equities – euro 11.9 0.1 9.5 0.0 Equities – non-euro 11.1 0.4 7.2 0.0 Equities – emerging markets 4.5 0.0 4.1 0.0 Alternative investment instruments 8.1 2.1 4.2 10.1 Land and buildings 0.0 5.1 0.0 4.9 Cash 2.7 4.7 0.0 4.7 T otal 85.0 15.0 78.0 22.0 Contributions to plan assets are expected for the coming year in the amount of €5,765 thousand. The measurement of the defined benefit obligations is based on the following actuarial calculation parameters: Calculation factors applied In per cent 2021 2020 Discount rate in termination benefits 0.4 0.8 Discount rate in pensions 1.0 1.0 Valorisation of remuneration 3.0 2.9 Valorisation of pensions 2.0 2.0 Employee turnover rate dependent on years of service dependent on years of service Calculation principles AVÖ 2018 P – salaried employees AVÖ 2018 P – salaried employees Weighted average duration in years Pensions T ermination benefits 31 December 2021 13.7 7.4 31 December 2020 13.4 7.1 The essential risks from the benefit plan are limited to the investment risk, the interest rate risk, life expectancy as well as salary risk. The sensitivity of the defined benefit obligations on changes in the weighted actuarial calculation parameters is: Sensitivity analysis In per cent Pensions Termination benefits 2021 2020 2021 2020 Remaining life expectancy Change in DBO (+ 1 year) 3.0 3.1 Change in DBO (–1 year) –3.1 –3.3 Discount rate Change in DBO (+ 1 percentage point) –11.6 –12.5 –6.0 –6.6 Change in DBO (–1 percentage point) 14.6 15.7 6.8 7.5 Future salary increase rate Change in DBO (+ 0.75%) 4.8 4.6 4.8 5.3 Change in DBO (–0.75%) –4.2 –3.9 –4.5 –4.9 Future pension increase rate Change in DBO (+ 0.25%) 3.4 3.7 Change in DBO (–0.25%) –3.3 –3.5 118 The plan assets for the defined benefit obligations are comprised as follows: In per cent 31/12/2021 31/12/2020 Listed Unlisted Listed Unlisted Bonds – euro 22.2 1.6 22.4 1.3 Corporate bonds – euro 24.2 1.1 30.4 1.0 Equities – euro 11.9 0.1 9.5 0.0 Equities – non-euro 11.1 0.4 7.2 0.0 Equities – emerging markets 4.5 0.0 4.1 0.0 Alternative investment instruments 8.1 2.1 4.2 10.1 Land and buildings 0.0 5.1 0.0 4.9 Cash 2.7 4.7 0.0 4.7 T otal 85.0 15.0 78.0 22.0 Contributions to plan assets are expected for the coming year in the amount of €5,765 thousand. The measurement of the defined benefit obligations is based on the following actuarial calculation parameters: Calculation factors applied In per cent 2021 2020 Discount rate in termination benefits 0.4 0.8 Discount rate in pensions 1.0 1.0 Valorisation of remuneration 3.0 2.9 Valorisation of pensions 2.0 2.0 Employee turnover rate dependent on years of service dependent on years of service Calculation principles AVÖ 2018 P – salaried employees AVÖ 2018 P – salaried employees Weighted average duration i n years Pensions T ermination benefits 31 December 2021 13.7 7.4 31 December 2020 13.4 7.1 The essential risks from the benefit plan are limited to the investment risk, the interest rate risk, life expectancy as well as salary risk. The sensitivity of the defined benefit obligations on changes in the weighted actuarial calculation parameters is: Sensitivity analysis In per cent Pensions Termination benefits 2021 2020 2021 2020 Remaining life expectancy Change in DBO (+ 1 year) 3.0 3.1 Change in DBO (–1 year) –3.1 –3.3 Discount rate Change in DBO (+ 1 percentage point) –11.6 –12.5 –6.0 –6.6 Change in DBO (–1 percentage point) 14.6 15.7 6.8 7.5 Future salary increase rate Change in DBO (+ 0.75%) 4.8 4.6 4.8 5.3 Change in DBO (–0.75%) –4.2 –3.9 –4.5 –4.9 Future pension increase rate Change in DBO (+ 0.25%) 3.4 3.7 Change in DBO (–0.25%) –3.3 –3.5 119 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS 18. Defined contribution plans Obligations for contributions to defined contribution plans are recognised as expenses through profit or loss as soon as the associated work is performed. Prepaid contri- butions are recognised as assets if an entitlement to re- fund or reduction of future payments arises. The defined contribution plan is financed largely by UNIQA. Pension entitlements Board members, special policyholders and active employ- ees in Austria are subject to a basic defined contribution pension fund scheme. The beneficiaries are also entitled to a final pension fund contribution which guarantees them a fixed cash value when they begin their retirement. Since the first pension to be paid out to the beneficiaries has a fixed benefit amount, this commitment is to be clas- sified as a defined benefit in the contribution phase. The works council agreement states the extent to which a final pension fund contribution is provided to the beneficiary’s individual assurance cover account in the event of a trans- fer to the old-age pension or of an incapacity to work or the death of a participant. UNIQA has no obligations dur- ing the benefit phase. Contributions to company pension funds Under the defined contribution company pension scheme, the employer pays the fixed amounts into company pen- sion funds. The insurance contributions to company pen- sion funds amounted to €4,501 thousand (2020: €4,537 thousand). The employer has satisfied their obliga- tion by making these contributions. 19. Restructuring measures In November 2020, the Supervisory Board agreed on re- structuring measures, which mainly involved reducing the number of employees at the Austrian site. The restructur- ing provision formed for this purpose in the previous year was reduced to €57.2 million by the release of unused pro- visions amounting to €3.4 million and by the utilisation of €38.0 million in the current year. The provision for restructuring measures is stated under the balance sheet item “Other provisions”. 20. Employees Personnel expenses In € thousand 1–12/2021 1–12/2020 Salaries 520,048 444,997 Expenses for termination benefits 310 10,902 Pension expenses 19,813 21,969 Expenditure on mandatory social security contributions as well as income-based charges and compulsory contributions 140,293 127,861 Other social expenditures 7,016 5,631 Personnel-related restructuring expenses 0 96,319 Total 687,480 707,679 of which sales 123,044 133,748 of which administration 563,693 574,322 of which retirees 742 –391 Average number of employees 31/12/2021 31/12/2020 Total 14,849 13,408 of which sales 4,005 4,138 of which administration 10,844 9,271 Equity 2 1. Subscribed capital and capital reserves The share capital is comprised of 309,000,000 no-par val- ue bearer shares. Capital reserves include unallocated capital reserves, which primarily result from share premi- ums. A dividend of €0.18 per share was paid on 14 June 2021. This corresponds with a distribution amounting to €55,254thousand. Subject to the approval of the Annual General Meeting, a dividend payment in the amount of €0.55 per share is planned for the financial year, which equates to a distribution in the amount of €168,831 thousand. 22. Treasury shares T reasury shares 31/12/2021 31/12/2020 UNIQA Insurance Group AG Number of shares 819,650 819,650 Cost in € thousand 10,857 10,857 Share of subscribed capital in % 0.27 0.27 UNIQA Österreich Versicherungen AG Number of shares 1,215,089 1,215,089 Cost in € thousand 5,756 5,756 Share of subscribed capital in % 0.39 0.39 Total 2,034,739 2,034,739 Consolidated Financial Statements 120 Authorisations of the Management Board In accordance with the resolution of the Annual General Meeting dated 20 May 2019, the Management Board is authorised to increase the company’s share capital up to and including 30 June 2024 with the approval of the Su- pervisory Board by a total of up to €80,000,000 by issuing up to 80,000,000 no-par-value bearer or registered shares in exchange for payment in cash or in kind, one time or several times. In accordance with the resolution of the Annual General Meeting dated 25 May 2020, the Group Management Board was again authorised to acquire, with the approval of the Supervisory Board, treasury shares for a period of 30 months from 30 November 2020 (the authorisation granted in accordance with the resolution of the Annual General Meeting on 28 May 2018 expired at 29 November 2020). The proportion of the share capital represented by newly acquired shares, together with the proportion of other treasury shares that the company has already ac- quired and still holds, may not exceed 10 per cent of the share capital. The authorisation to acquire treasury shares also includes the acquisition of shares in the company by subsidiaries of the company. The treasury equities held via UNIQA Österreich Versi- cherungen AG stem from the merger of BL Syndikat Be- teiligungs Gesellschaft m.b.H., the assigning company, with UNIQA Insurance Group AG, the acquiring company. These shares held are not to be counted towards the 10 per cent limit. 23. Capital management Capital management takes place with due regard to the regulatory and statutory requirements. After Solvency II came into force on 1 January 2016, the definitions and methods used to calculate available own funds, as well as risk capital requirements and management standards, were replaced by Solvency II standards. The eligible own funds comprise the consolidated Tier 1 capital, which essentially consisted of the subscribed share capital including the allocated share premium account and the reconciliation reserve. The Tier 2 capital consists en- tirely of subordinated liabilities. Tier 3 own fund items are mainly net deferred tax assets. In the context of Group management, the appropriate coverage of the solvency capital requirement in accord- ance with Solvency II on a consolidated basis is constantly monitored. Active capital management is implemented in order to ensure that the individual Group companies and the Group as a whole have a reasonable capital base at all times. Aside from the five-year planning, another objective of active capital management is also to actively guarantee UNIQA’s financial capacity, including under difficult eco- nomic conditions, in order to safeguard the continued existence of the insurance business. In addition to the regulatory requirements to meet sol- vency capital/minimum capital requirements, UNIQA has also set itself a target capitalisation for the Group in the form of a solvency capital ratio – i.e. the eligible own funds in relation to the solvency capital requirement – of at least 170 per cent. The solvency capital ratio is managed using strategic measures which result in a reduction in the capi- tal requirements and/or increase the amount of existing capital. UNIQA also takes the potential impact on the rating by recognised rating agencies into account in the capital management process. Standard & Poor’s (S&P) currently applies a credit rating of “A–” to UNIQA Insurance Group AG. In the S&P capital model UNIQA achieves sig- nificant surplus coverage for the current level. UNIQA assumes that it will secure its surplus coverage of the AA level at a minimum in the long term and will also improve the rating in line with the corporate strategy as a result. UNIQA Österreich Versicherungen AG and UNIQA Re AG each have a rating of “A”. The supplementary capital bond issued in 2013 (initially: €350.0 million, open amount remaining: €148.7 million, Tier 2, first call date: 31 July 2023), is rated “BBB” by S&P. In addition, the subordinated capital bond issued in 2015 (initially: €500.0 million, open amount remaining: €326.3 million, Tier 2, first call date: 27 July 2026), the bond issued in 2020 (€200.0 million, Tier 2, first call date: 9 July 2025) and the bond issued in 2021 (€375.0 million, Tier 2, first call date: 9 June 2031) are rated “BBB” by S&P. The agency rates the outlook for all companies as “stable”. 120 Authorisations of the Management Board In accordance with the resolution of the Annual General Meeting dated 20 May 2019, the Management Board is authorised to increase the company’s share capital up to and including 30 June 2024 with the approval of the Su- pervisory Board by a total of up to €80,000,000 by issuing up to 80,000,000 no-par-value bearer or registered shares in exchange for payment in cash or in kind, one time or several times. In accordance with the resolution of the Annual General Meeting dated 25 May 2020, the Group Management Board was again authorised to acquire, with the approval of the Supervisory Board, treasury shares for a period of 30 months from 30 November 2020 (the authorisation granted in accordance with the resolution of the Annual General Meeting on 28 May 2018 expired at 29 November 2020). The proportion of the share capital represented by newly acquired shares, together with the proportion of other treasury shares that the company has already ac- quired and still holds, may not exceed 10 per cent of the share capital. The authorisation to acquire treasury shares also includes the acquisition of shares in the company by subsidiaries of the company. The treasury equities held via UNIQA Österreich Versi- cherungen AG stem from the merger of BL Syndikat Be- teiligungs Gesellschaft m.b.H., the assigning company, with UNIQA Insurance Group AG, the acquiring company. These shares held are not to be counted towards the 10 per cent limit. 23. Capital management Capital management takes place with due regard to the regulatory and statutory requirements. After Solvency II came into force on 1 January 2016, the definitions and methods used to calculate available own funds, as well as risk capital requirements and management standards, were replaced by Solvency II standards. The eligible own funds comprise the consolidated Tier 1 capital, which essentially consisted of the subscribed share capital including the allocated share premium account and the reconciliation reserve. The Tier 2 capital consists en- tirely of subordinated liabilities. Tier 3 own fund items are mainly net deferred tax assets. In the context of Group management, the appropriate coverage of the solvency capital requirement in accord- ance with Solvency II on a consolidated basis is constantly monitored. Active capital management is implemented in order to ensure that the individual Group companies and the Group as a whole have a reasonable capital base at all times. Aside from the five-year planning, another objective of active capital management is also to actively guarantee UNIQA’s financial capacity, including under difficult eco- nomic conditions, in order to safeguard the continued existence of the insurance business. In addition to the regulatory requirements to meet sol- vency capital/minimum capital requirements, UNIQA has also set itself a target capitalisation for the Group in the form of a solvency capital ratio – i.e. the eligible own funds in relation to the solvency capital requirement – of at least 170 per cent. The solvency capital ratio is managed using strategic measures which result in a reduction in the capi- tal requirements and/or increase the amount of existing capital. UNIQA also takes the potential impact on the rating by recognised rating agencies into account in the capital management process. Standard & Poor’s (S&P) currently applies a credit rating of “A–” to UNIQA Insurance Group AG. In the S&P capital model UNIQA achieves sig- nificant surplus coverage for the current level. UNIQA assumes that it will secure its surplus coverage of the AA level at a minimum in the long term and will also improve the rating in line with the corporate strategy as a result. UNIQA Österreich Versicherungen AG and UNIQA Re AG each have a rating of “A”. The supplementary capital bond issued in 2013 (initially: €350.0 million, open amount remaining: €148.7 million, Tier 2, first call date: 31 July 2023), is rated “BBB” by S&P. In addition, the subordinated capital bond issued in 2015 (initially: €500.0 million, open amount remaining: €326.3 million, Tier 2, first call date: 27 July 2026), the bond issued in 2020 (€200.0 million, Tier 2, first call date: 9 July 2025) and the bond issued in 2021 (€375.0 million, Tier 2, first call date: 9 June 2031) are rated “BBB” by S&P. The agency rates the outlook for all companies as “stable”. 121 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS 24. Non-controlling interests Non-controlling interests are measured at the acquisition date with their proportionate share in the identifiable net assets of the acquired entity. Changes in the share in a subsidiary that do not result in a loss of control are recognised directly as equity transac- tions with non-controlling interests. Share of equity In € thousand Sigal Group 1) Raiffeisen Life Insurance Company LLC Non-controlling interests that are not material on a stand-alone basis Total At 1 January 2020 4,473 13,170 1,756 19,399 Profit/(loss) for the period 621 4,177 78 4,876 Other comprehensive income –47 –2,405 –1,655 –4,107 Other changes in equity 75 –1,651 6,169 4,593 At 31 December 2020 5,122 13,290 6,348 24,760 At 1 January 2021 5,122 13,290 6,348 24,760 Profit/(loss) for the period 610 3,410 –812 3,207 Other comprehensive income 722 –4,369 –536 –4,182 Other changes in equity –1,001 –2,630 –477 –4,108 At 31 December 2021 5,454 9,701 4,523 19,678 1 ) Albania/Kosovo/North Macedonia as subgroup of the SIGAL Group Share of assets and liabilities 2) In € thousand Sigal Group 1) Raiffeisen Life Insurance Company LLC Non-controlling interests that are not material on a stand-alone basis Total 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 31/12/2021 31/12/2020 Assets Current assets 2,251 1,768 1,561 1,098 1,855 2,478 5,666 5,344 Non-current assets 17,259 16,485 80,170 80,159 21,441 24,464 118,870 121,108 Cash 419 340 1,264 802 2,018 2,755 3,701 3,897 19,929 18,593 82,995 82,059 25,314 29,697 128,238 130,348 Liabilities Current liabilities 1,192 1,167 1,702 1,628 1,592 2,042 4,486 4,836 Non-current liabilities 13,283 12,303 71,592 67,141 19,199 21,307 104,075 100,751 14,475 13,470 73,294 68,769 20,791 23,349 108,560 105,588 Net assets 5,454 5,122 9,701 13,290 4,523 6,348 19,678 24,760 1 ) Albania/Kosovo/North Macedonia as subgroup of the SIGAL Group 2 ) The summarised financial information corresponds to the amounts before intercompany eliminations. Consolidated Financial Statements 122 Financial debts 2 5. Subordinated liabilities In July 2013, UNIQA Insurance Group AG successfully placed a supplementary capital bond to the value of €350 million with institutional investors in Europe. The bond has a maturity period of 30 years and cannot be ter- minated until after 10 years. The coupon equals 6.875 per cent per annum during the first ten years, after which a variable interest rate applies. The supplementary capital bond satisfies the requirements for equity netting as Tier 2 capital under the Solvency II regime. The issue was also aimed at replacing older supplementary capital bonds from Austrian insurance groups and at bolstering UNIQA’s capital resources and capital structure in prepa- ration for Solvency II and optimising these over the long term. The supplementary capital bond has been listed on the Luxembourg Stock Exchange since the end of July 2013. The issue price was set at 100 per cent. In July 2015, UNIQA Insurance Group AG successfully placed a subordinated capital bond (Tier 2) to the value of €500 million with institutional investors in Europe. The bond is eligible for netting as Tier 2 capital under Solven- cy II. The bond is scheduled for repayment after a period of 31 years and subject to certain conditions, and can only be cancelled by UNIQA after eleven years have elapsed and under certain conditions. The coupon equals 6.00 per cent per annum during the first eleven years, after which a variable interest rate applies. The bond has been listed on the Vienna Stock Exchange since July 2015. The issue price was set at 100 per cent. In July 2020 a subordinated bond was also issued in the amount of €200 million at an issue price of 99.507 per cent of the nominal amount. With a term of 15.25 years, it may be terminated for the first time after 5.25 years subject to certain conditions. The annual interest rate is fixed at 3.25 per cent for the first 5.25 years, after which a variable interest rate applies. The bond is eligible for netting as Tier 2 capital under Solvency II. By issuing a green bond, UNIQA has committed to finance or refinance suitable assets in accordance with the Green Bond Framework at the same level as the issue proceeds. The bond issue has been listed on the Vienna Stock Exchange since July 2020. UNIQA repurchased subordinated bonds with a total nom- inal value of €375 million in December 2021. The buy-back relates to €201.3 million subordinated bonds placed in 2013 and €173.7 million subordinated bonds placed in 2015. At the same time, a new subordinated bond with a nominal amount of €375 million was placed. This bond is scheduled for repayment after a period of 20 years, is sub- ject to certain conditions, and can only be cancelled by UNIQA after ten years have elapsed and under certain conditions. During the first ten years, the interest rate is fixed at 2.375 per cent per annum, after which a variable interest rate applies. The issue price was set at 99.316 per cent of the nominal amount. The subordinated bond is eligible as Tier 2 basic own funds in accordance with the regulatory requirements. By issuing a green bond, UNIQA has committed to making investments in accord- ance with the Green Bond Framework at the same level as the issue proceeds. The buy-back premium associated with the buy-back amounts to approximately €65 million and was recognised in the finance costs. 122 Financial debts 2 5. Subordinated liabilities In July 2013, UNIQA Insurance Group AG successfully placed a supplementary capital bond to the value of €350 million with institutional investors in Europe. The bond has a maturity period of 30 years and cannot be ter- minated until after 10 years. The coupon equals 6.875 per cent per annum during the first ten years, after which a variable interest rate applies. The supplementary capital bond satisfies the requirements for equity netting as Tier 2 capital under the Solvency II regime. The issue was also aimed at replacing older supplementary capital bonds from Austrian insurance groups and at bolstering UNIQA’s capital resources and capital structure in prepa- ration for Solvency II and optimising these over the long term. The supplementary capital bond has been listed on the Luxembourg Stock Exchange since the end of July 2013. The issue price was set at 100 per cent. In July 2015, UNIQA Insurance Group AG successfully placed a subordinated capital bond (Tier 2) to the value of €500 million with institutional investors in Europe. The bond is eligible for netting as Tier 2 capital under Solven- cy II. The bond is scheduled for repayment after a period of 31 years and subject to certain conditions, and can only be cancelled by UNIQA after eleven years have elapsed and under certain conditions. The coupon equals 6.00 per cent per annum during the first eleven years, after which a variable interest rate applies. The bond has been listed on the Vienna Stock Exchange since July 2015. The issue price was set at 100 per cent. In July 2020 a subordinated bond was also issued in the amount of €200 million at an issue price of 99.507 per cent of the nominal amount. With a term of 15.25 years, it may be terminated for the first time after 5.25 years subject to certain conditions. The annual interest rate is fixed at 3.25 per cent for the first 5.25 years, after which a variable interest rate applies. The bond is eligible for netting as Tier 2 capital under Solvency II. By issuing a green bond, UNIQA has committed to finance or refinance suitable assets in accordance with the Green Bond Framework at the same level as the issue proceeds. The bond issue has been listed on the Vienna Stock Exchange since July 2020. UNIQA repurchased subordinated bonds with a total nom- inal value of €375 million in December 2021. The buy-back relates to €201.3 million subordinated bonds placed in 2013 and €173.7 million subordinated bonds placed in 2015. At the same time, a new subordinated bond with a nominal amount of €375 million was placed. This bond is scheduled for repayment after a period of 20 years, is sub- ject to certain conditions, and can only be cancelled by UNIQA after ten years have elapsed and under certain conditions. During the first ten years, the interest rate is fixed at 2.375 per cent per annum, after which a variable interest rate applies. The issue price was set at 99.316 per cent of the nominal amount. The subordinated bond is eligible as Tier 2 basic own funds in accordance with the regulatory requirements. By issuing a green bond, UNIQA has committed to making investments in accord- ance with the Green Bond Framework at the same level as the issue proceeds. The buy-back premium associated with the buy-back amounts to approximately €65 million and was recognised in the finance costs. 123 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS 26. Financial liabilities In July 2020 UNIQA Insurance Group AG issued a senior bond in the amount of €600 million at an issue price of 99.436 per cent of the nominal amount. It has a term of ten years at a nominal interest rate of 1.375 per cent. The proceeds are used to finance the purchase of former AXA companies in Poland, the Czech Republic and Slovakia. Carrying amounts In € thousand Long term Short term Total 2021 2020 2021 2020 2021 2020 Subordinated liabilities 1,042,838 1,045,451 14,721 24,469 1,057,559 1,069,920 Financial liabilities Liabilities from bonds and loans 595,534 606,142 3,955 3,955 599,490 610,098 Derivative financial instruments 11,828 292 10,015 1,617 21,843 1,908 Lease liabilities 93,979 73,609 8,005 7,951 101,984 81,560 Total 701,341 680,043 21,975 13,523 723,317 693,566 Changes in financial liabili- ties In € thousand Subordinated liabilities Liabilities from bonds and loans Provisions for derivative business Lease liabilities Financial liabilities Total Changes in financial liabilities At 1 January 2020 870,110 12,004 670 62,842 75,516 945,625 Proceeds from other financing activities 197,826 595,045 0 0 595,045 792,871 Payments from other financing activities 0 –9,046 0 –13,768 –22,815 –22,815 Currency translation 0 0 –7 –343 –350 –350 Change in basis of consolidation 0 8,140 0 29,744 37,883 37,883 Other changes 1,984 3,955 1,246 3,086 8,287 10,271 of which interest expenses 57,762 6,236 0 759 6,995 64,758 of which interest payments (presented as net cash flow from operating activities) –55,701 0 0 –759 –759 –56,460 At 31 December 2020 1,069,920 610,098 1,908 81,560 693,566 1,763,485 At 1 January 2021 1,069,920 610,098 1,908 81,560 693,566 1,763,485 Proceeds from other financing activities 370,323 0 0 0 0 370,323 Payments from other financing activities –375,000 –35,954 0 –16,906 –52,860 –427,860 Currency translation 0 0 13 424 438 438 Change in basis of consolidation 0 24,856 0 0 24,856 24,856 Other changes –7,683 490 19,921 36,906 57,317 49,634 of which interest expenses 124,429 9,335 0 998 10,333 134,762 of which interest payments (presented as net cash flow from operating activities) –134,408 –8,250 0 –998 –9,248 –143,656 At 31 December 2021 1,057,559 599,490 21,843 101,984 723,317 1,780,876 Consolidated Financial Statements 124 27. Liabilities and other items classified as liabilities In € thousand 31/12/2021 31/12/2020 Reinsurance liabilities Deposits retained on assumed reinsurance 101,274 116,113 Reinsurance settlement liabilities 61,438 46,555 162,712 162,668 Insurance liabilities to policyholders 161,395 183,672 to insurance brokers 77,063 83,254 to insurance companies 27,047 17,411 265,505 284,337 Other liabilities Personnel-related obligations 111,540 86,839 Liabilities from services 135,858 122,152 Liabilities from investment contracts 137,477 122,807 Other tax liabilities (without income tax) 71,003 55,964 Other liabilities 133,103 159,453 588,981 547,216 Subtotal 1,017,197 994,221 of which liabilities with a maturity of up to 1 year 859,557 889,166 more than 1 year and up to 5 years 37,067 30,600 more than 5 years 120,573 74,454 1,017,197 994,221 Total liabilities and other items classified as liabilities 1,017,197 994,221 Other non-technical income and expenses 2 8. Other income In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 30,264 46,685 Health insurance 155,902 144,693 Life insurance 114,215 25,171 Of which: Revenues from medical services 153,092 142,676 Revenues from pension and investment funds 100,840 10,440 Revenues from other services 15,033 17,069 Changes in exchange rates 13,507 30,471 Other 17,909 15,893 Total 300,381 216,548 Revenues from medical services are almost always realised at the time of purchase. Pension and investment fund revenues include fees charged by the funds to fund holders for managing the fund’s assets. These are time-period-related benefits that concern the period of one year. 29. Other expenses In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 44,153 38,518 Health insurance 154,754 146,556 Life insurance 51,711 45,423 Of which: Expenses for medical services 150,348 142,455 Expenses of pension and investment funds 27,191 7,630 Expenses for other services 26,572 20,667 Exchange rate losses 15,331 35,437 Other 31,176 24,309 Total 250,619 230,497 124 27. Liabilities and other items classified as liabilities In € thousand 31/12/2021 31/12/2020 Reinsurance liabilities Deposits retained on assumed reinsurance 101,274 116,113 Reinsurance settlement liabilities 61,438 46,555 162,712 162,668 Insurance liabilities to policyholders 161,395 183,672 to insurance brokers 77,063 83,254 to insurance companies 27,047 17,411 265,505 284,337 Other liabilities Personnel-related obligations 111,540 86,839 Liabilities from services 135,858 122,152 Liabilities from investment contracts 137,477 122,807 Other tax liabilities (without income tax) 71,003 55,964 Other liabilities 133,103 159,453 588,981 547,216 Subtotal 1,017,197 994,221 of which liabilities with a maturity of up to 1 year 859,557 889,166 more than 1 year and up to 5 years 37,067 30,600 more than 5 years 120,573 74,454 1,017,197 994,221 Total liabilities and other items classified as liabilities 1,017,197 994,221 Other non-technical income and expenses 2 8. Other income In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 30,264 46,685 Health insurance 155,902 144,693 Life insurance 114,215 25,171 Of which: Revenues from medical services 153,092 142,676 Revenues from pension and investment funds 100,840 10,440 Revenues from other services 15,033 17,069 Changes in exchange rates 13,507 30,471 Other 17,909 15,893 Total 300,381 216,548 Revenues from medical services are almost always realised at the time of purchase. Pension and investment fund revenues include fees charged by the funds to fund holders for managing the fund’s assets. These are time-period-related benefits that concern the period of one year. 29. Other expenses In € thousand 1–12/2021 1–12/2020 Property and casualty insurance 44,153 38,518 Health insurance 154,754 146,556 Life insurance 51,711 45,423 Of which: Expenses for medical services 150,348 142,455 Expenses of pension and investment funds 27,191 7,630 Expenses for other services 26,572 20,667 Exchange rate losses 15,331 35,437 Other 31,176 24,309 Total 250,619 230,497 125 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Other disclosures 3 0. Group holding company UNIQA’s Group holding company is UNIQA Insurance Group AG. In addition to its duties as Group holding com- pany, this company also performs the duties of a reinsurer. 31. Remuneration for the Management Board and S upervisory Board The members of the Management Board of UNIQA Insur- ance Group AG assume a dual operational role in their function, as they also hold the Management Board func- tion at UNIQA Österreich Versicherungen AG. This iden- tical composition of the Management Board in both com- panies enables efficient control of the UNIQA Group. From 1 July 2020 all employment contracts of the mem- bers of the Management Board are with UNIQA Insurance Group AG, which pays out all remuneration from this date. Remuneration of the Management Board In € thousand 1–12/2021 1–12/2020 Fixed remuneration 1) 4,675 4,377 Variable remuneration 2) 806 2,217 Multi-year share-based remuneration 3) 1,140 2,137 Current remuneration 6,621 8,731 1) The fixed salary components include remuneration in kind equivalent to €103 thousand (2020: €110 thousand). 2 ) The variable remuneration solely includes the deferred components from the short-term incentive (STI) of the 2017 financial year. The deferred components of the STI comprises 40% of the entitlement and is paid out after three financial years. 3 ) The long-term incentive (LTI) as a variable remuneration component corresponds to a share-based payment agreement which entitles the holder to receive a cash settlement after a four-year term if agreed target values are reached. For the 2018 financial year, anticipated payments for the deferred component of the variable remuneration (STI) in 2022 will amount to €909 thousand. For the 2019 financial year, payments of €795 thousand are expected in the year 2023. For the 2020 financial year no short-term incentive was made, due to Covid-19. For the 2021 financial year, payments of €3,822 thousand are expected to be made in the years 2022 and 2025. For the 2021 financial year, pay- ments of €4,124 thousand will be made in subsequent years. As part of the multi-year share-based remuneration (long- term incentive plan – LTI), payments amounting to €1,140 thousand were made to the members of the Management Board of UNIQA Insurance Group AG in 2021 from the 2017 LTI allocation. For the subsequent years 2022 to 2025, a payment of €4,334 thousand is expected for the virtual shares allocated up to 31 December 2021. In the reporting year, a total of €1,245 thousand (2020: €1,024 thousand) was paid for pension commitments and reinsurance for members of the Management Board (the premium for reinsurance amounts to €463 thousand). The amount expended on pensions in the reporting year for former members of the Management Board and their sur- vivors was €2,043 thousand (2020: €2,084 thousand). The remuneration of the members of the Supervisory Board for their work in the 2020 financial year was €790 thousand. Provisions of €835 thousand have been recognised for the remuneration to be paid for their work in the 2021 financial year. The amount paid out in attend- ance fees and cash expenditures in the financial year was €65 thousand (2020: €75 thousand). Since 14 April 2020, the members of the Supervisory Board of UNIQA Insur- ance Group AG who are also members of the Supervisory Board of UNIQA Österreich Versicherungen AG have re- ceived their daily allowances and remuneration exclusive- ly from UNIQA Insurance Group AG despite their dual function. These daily allowances and remunerations therefore also cover the Supervisory Board activities at UNIQA Österreich Versicherungen AG. Consolidated Financial Statements 126 32. Share-based payment agreement w ith cash settlement A share-based remuneration programme has been in place for the members of the Management Boards of UNIQA Insurance Group AG and UNIQA Österreich Versicher- ungen AG since the 2013 financial year. As part of this programme, UNIQA virtual shares are granted condition- ally for each financial year on the basis of allocation values defined in the service contract, based on the average price of UNIQA ordinary shares in the period of six months prior to the start of the performance period. Cash pay- ments subject to agreed limits are provided for at the end of a performance period of four years for the individual annual tranches or depending on certain key performance targets. The selected key performance targets are aimed at ensur- ing a relative market-based performance measurement and absolute performance measurement in accordance with the individual corporate objectives of the UNIQA Group. These defined equally-weighted key performance targets include the total shareholder return (TSR) of the UNIQA ordinary share compared with the TSR of the shares in the companies on the DJ EURO STOXX TMI Insurance, the P&C Net Combined Ratio in UNIQA’s prop- erty and casualty business and the return on risk capital (the return on equity required). The programme stipulates annual investments in UNIQA shares with a holding period also of four years in each case. The cash settlement is calculated as follows for each tranche of shares: payment = A × B × C A = number of virtual shares awarded for the performance period. B = average price of the UNIQA ordinary share in the peri- od of six months before the end of the performance period. C = degree of target achievement at the end of the perfor- mance period. The maximum target achievement is 200 per cent. The fair value on the date that share-based payment awards are granted is recognised as expense over the peri- od in which the unconditional entitlement to the award is obtained. The fair value is based on expectations with respect to achievement of the defined key performance targets. Changes in measurement assumptions result in an adjustment of the recognised provision amounts affecting income. Obligations from share-based remuneration are stated under “Other provisions”. As at 31 December 2021 a total of 1,189,267 virtual shares (2020: 1,139,469 shares) were relevant for the measure- ment. The fair value of share-based remuneration (exclud- ing non-wage labour costs) at the reporting date amounts to €5,463 thousand (2020: €3,993 thousand). 33. Relationships with related companies and persons Companies in the UNIQA Group maintain various rela- tionships with related companies and persons. Related companies refer to companies which exercise either a controlling or a significant influence on UNIQA. The group of related companies also includes the non- consolidated subsidiaries, associates and joint ventures of UNIQA. Related persons include the members of management holding key positions along with their close family mem- bers. This covers in particular the members of manage- ment in key positions at those companies which exercise either a controlling or a significant influence on the UNIQA Group, along with their close family members. 126 32. Share-based payment agreement wi th cash settlement A share-based remuneration programme has been in place for the members of the Management Boards of UNIQA Insurance Group AG and UNIQA Österreich Versicher- ungen AG since the 2013 financial year. As part of this programme, UNIQA virtual shares are granted condition- ally for each financial year on the basis of allocation values defined in the service contract, based on the average price of UNIQA ordinary shares in the period of six months prior to the start of the performance period. Cash pay- ments subject to agreed limits are provided for at the end of a performance period of four years for the individual annual tranches or depending on certain key performance targets. The selected key performance targets are aimed at ensur- ing a relative market-based performance measurement and absolute performance measurement in accordance with the individual corporate objectives of the UNIQA Group. These defined equally-weighted key performance targets include the total shareholder return (TSR) of the UNIQA ordinary share compared with the TSR of the shares in the companies on the DJ EURO STOXX TMI Insurance, the P&C Net Combined Ratio in UNIQA’s prop- erty and casualty business and the return on risk capital (the return on equity required). The programme stipulates annual investments in UNIQA shares with a holding period also of four years in each case. The cash settlement is calculated as follows for each tranche of shares: payment = A × B × C A = number of virtual shares awarded for the performance period. B = average price of the UNIQA ordinary share in the peri- od of six months before the end of the performance period. C = degree of target achievement at the end of the perfor- mance period. The maximum target achievement is 200 per cent. The fair value on the date that share-based payment awards are granted is recognised as expense over the peri- od in which the unconditional entitlement to the award is obtained. The fair value is based on expectations with respect to achievement of the defined key performance targets. Changes in measurement assumptions result in an adjustment of the recognised provision amounts affecting income. Obligations from share-based remuneration are stated under “Other provisions”. As at 31 December 2021 a total of 1,189,267 virtual shares (2020: 1,139,469 shares) were relevant for the measure- ment. The fair value of share-based remuneration (exclud- ing non-wage labour costs) at the reporting date amounts to €5,463 thousand (2020: €3,993 thousand). 33. Relationships with related companies and persons Companies in the UNIQA Group maintain various rela- tionships with related companies and persons. Related companies refer to companies which exercise either a controlling or a significant influence on UNIQA. The group of related companies also includes the non- consolidated subsidiaries, associates and joint ventures of UNIQA. Related persons include the members of management holding key positions along with their close family mem- bers. This covers in particular the members of manage- ment in key positions at those companies which exercise either a controlling or a significant influence on the UNIQA Group, along with their close family members. 127 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS T ransactions and balances with related companies In € thousand Companies with significant influence on UNIQA Group Affiliated but not consolidated companies Associated companies of UNIQA Group Other related parties Total Transactions in 2021 Premiums written (gross) 985 35 615 30,317 31,951 Income from investments 8,750 433 109,564 355 119,102 Expenses from investments –1,622 0 0 –301 –1,923 Other income 196 7,364 1,511 396 9,467 Other expenses –2,339 –6,294 –3,278 –30,389 –42,301 At 31 December 2021 Investments 221,559 10,226 656,393 93,278 981,456 Cash 201,367 0 0 51,432 252,799 Receivables, including insurance receivables 0 3,456 1 2,910 6,366 Liabilities and other items classified as liabilities 0 2,466 158 4,481 7,105 In € t h ousan d Companies with significant influence on UNIQA Group Affiliated but not consolidated companies Associated companies of UNIQA Group Other related parties Total Transactions in 2020 Premiums written (gross) 966 34 1,238 21,151 23,389 Income from investments 1,695 566 14,116 4,299 20,677 Expenses from investments –1,647 0 0 –2,491 –4,138 Other income 157 7,384 1,922 385 9,847 Other expenses –2,574 –8,886 –2,092 –25,576 –39,128 At 31 December 2020 Investments 182,630 16,270 689,036 47,409 935,345 Cash 293,184 0 0 45,422 338,606 Receivables, including insurance receivables 112 10,161 1 3,687 13,961 Liabilities and other items classified as liabilities 0 4,222 135 5,133 9,489 T ransactions with related persons In € thousand 1–12/2021 1–12/2020 Premiums written (gross) 850 898 Salaries and short-term benefits 1) –9,707 –4,915 Pension expenses –2,128 –2,015 Compensation on termination of employment contract –172 –174 Expenditures for share-based payments –2,685 0 Other income 262 275 Other expenses –130 –144 1) This item includes fixed and variable Management Board remuneration and remuneration of the Supervisory Board. 34. Other financial obligations and contingent l iabilities Options to purchase granted There is also the possibility to acquire the company shares held by the minority shareholders through exercising a mutual option between UNIQA and the minority share- holders in the SIGAL Group in accordance with previously agreed purchase price formulas. A new option period was agreed by extending the previous shareholders’ agree- ment, whereby the exercise period was agreed to be 1 July 2023 to 30 June 2024. Consolidated Financial Statements 128 35. Expenses for the auditor of the financial statements The auditor fees in the financial year were €1,843 thou- sand (2020: €2,340 thousand); of which €382 thousand (2020: €386 thousand) is attributable to the annual audit, €1,363 thousand (2020: €1,660 thousand) to other audit- ing services and €98 thousand (2020: €294 thousand) to other general services. 36. Basis of consolidation Subsidiaries Subsidiaries are entities controlled by UNIQA. A company is considered to be controlled if:  UNIQA is able to exercise power over the company,  UNIQA is exposed to fluctuating returns from the partic- ipation and  the level of returns can be influenced due to the power exercised. The financial statements of subsidiaries are included in the consolidated financial statements from the date con- trol begins until the date control ends. Loss of control If UNIQA loses control over a subsidiary, the subsidiary’s assets and liabilities and all associated non-controlling interests and other equity components are deleted from the accounts. Any resulting profit or loss is recognised in profit/(loss) for the period. Any retained interest in the former subsidiary is measured at fair value at the date of the loss of control. Investment in associates Associates are all the entities over which UNIQA has sig- nificant influence but does not exercise control or joint control over their financial and operating policies. This is generally the case as soon as there is a voting share of between 20 and 50 per cent or a comparable significant influence is guaranteed legally or in practice via other contractual regulations. Inclusion in the basis of consoli- dation is based on the proportionate equity (equity method). Pension and investment funds Controlled pension and investment funds are included in the consolidation unless the relevant fund volumes were considered to be immaterial when viewed separately and as a whole. A fund is regarded as controlled if:  UNIQA determines the relevant activities of the fund such as the determination of the investment strategy as well as short- and medium-term investment decisions,  UNIQA has the risk of and the rights to variable success- es of the fund in the form of distributions and partici- pates in the performance of the fund assets and  the determining power over the relevant activities is exercised in the interest of UNIQA by determining the investment objectives and the individual investment de- cisions. Basis of consolidation 31/12/2021 31/12/2020 Consolidated companies Austria 31 33 Other countries 58 66 Associates Austria 4 4 Other countries 1 1 Consolidated pension and investment funds Austria 5 5 Other countries 8 6 Shares in subsidiaries that are not consolidated, associates as well as joint ventures that are not accounted for using the equity method are classified as financial assets availa- ble-for-sale and stated under the item “Other invest- ments”. 37. Consolidation principles Business combinations If the Group has obtained control, it accounts for business combinations in line with the acquisition method. The consideration transferred for the acquisition and the identifiable net assets acquired are measured at fair value. Any profit from an acquisition at a price below the fair value of the net assets is recognised directly in profit/(loss) for the year. Transaction costs are recognised as expenses immediately. 128 35. Expenses for the auditor of the financial statements The auditor fees in the financial year were €1,843 thou- sand (2020: €2,340 thousand); of which €382 thousand (2020: €386 thousand) is attributable to the annual audit, €1,363 thousand (2020: €1,660 thousand) to other audit- ing services and €98 thousand (2020: €294 thousand) to other general services. 36. Basis of consolidation Subsidiaries Subsidiaries are entities controlled by UNIQA. A company is considered to be controlled if:  UNIQA is able to exercise power over the company,  UNIQA is exposed to fluctuating returns from the partic- ipation and  the level of returns can be influenced due to the power exercised. The financial statements of subsidiaries are included in the consolidated financial statements from the date con- trol begins until the date control ends. Loss of control If UNIQA loses control over a subsidiary, the subsidiary’s assets and liabilities and all associated non-controlling interests and other equity components are deleted from the accounts. Any resulting profit or loss is recognised in profit/(loss) for the period. Any retained interest in the former subsidiary is measured at fair value at the date of the loss of control. Investment in associates Associates are all the entities over which UNIQA has sig- nificant influence but does not exercise control or joint control over their financial and operating policies. This is generally the case as soon as there is a voting share of between 20 and 50 per cent or a comparable significant influence is guaranteed legally or in practice via other contractual regulations. Inclusion in the basis of consoli- dation is based on the proportionate equity (equity method). Pension and investment funds Controlled pension and investment funds are included in the consolidation unless the relevant fund volumes were considered to be immaterial when viewed separately and as a whole. A fund is regarded as controlled if:  UNIQA determines the relevant activities of the fund such as the determination of the investment strategy as well as short- and medium-term investment decisions,  UNIQA has the risk of and the rights to variable success- es of the fund in the form of distributions and partici- pates in the performance of the fund assets and  the determining power over the relevant activities is exercised in the interest of UNIQA by determining the investment objectives and the individual investment de- cisions. Basis of consolidation 31/12/2021 31/12/2020 Consolidated companies Austria 31 33 Other countries 58 66 Associates Austria 4 4 Other countries 1 1 Consolidated pension and investment funds Austria 5 5 Other countries 8 6 Shares in subsidiaries that are not consolidated, associates as well as joint ventures that are not accounted for using the equity method are classified as financial assets availa- ble-for-sale and stated under the item “Other invest- ments”. 37. Consolidation principles Business combinations If the Group has obtained control, it accounts for business combinations in line with the acquisition method. The consideration transferred for the acquisition and the identifiable net assets acquired are measured at fair value. Any profit from an acquisition at a price below the fair value of the net assets is recognised directly in profit/(loss) for the year. Transaction costs are recognised as expenses immediately. 129 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS The consideration transferred does not include any amounts associated with the fulfilment of pre-existing relationships. Such amounts are generally recognised in profit/(loss) for the year. Any contingent obligation to pay consideration is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, it is not revalued, and a settlement is accounted for within equity. Otherwise, later changes in the fair value of the contingent consideration are recognised in profit/(loss) for the period. The acquisition of AXA companies did not result in any subsequent adjustments to the recognised assets and liabilities for the twelve-month valuation period. Transactions eliminated on consolidation Intragroup balances and transactions and all income and expenses from intragroup transactions are eliminated when consolidated financial statements are prepared. Initial consolidation UCP Private Equity UNIQA Cap.Partn.S.A. (Munsbach, Luxembourg) and UCP Infrastructure Equity UNIQA Cap.Partn.S.A. (Munsbach, Luxembourg) were subject to initial consolidation in the first quarter of 2021. In the second quarter of 2021, Light Investment Cotroceni Srl (Bucharest, Romania) was consolidated for the first time. CherryHUB BSC Kft. (Budapest, Hungary), PremiaFIT Facility und IT Management und Service GmbH (Vienna) and Real Versicherungsvermittlung GmbH (Vienna) were subject to initial consolidation in the fourth quarter. The initial consolidation of these companies has no material impact on UNIQA. Acquisitions The share transfer for the option exercised in the previous year to acquire the remaining shares in the UNIQA Insur- ance Company, Private Joint Stock Company, (Kiev, Ukraine) took place in the first quarter. Restructuring processes UNIQA Towarzystwo Ubezpieczeń S.A. (Lodz, Poland) was merged with AXA Ubezpieczenia Towarzystwo Ubezpiec- zeń i Reasekuracji S.A. (Warsaw, Poland) as the absorbing company in the second quarter of 2021 and was renamed UNIQA Towarzystwo Ubezpieczeń S.A. In addition, UNIQA Towarzystwo Ubezpieczeń na Życie S.A. (Lodz, Poland) was merged with AXA Życie Towarzystwo Ub- ezpieczeń S.A. (Warsaw, Poland) and its name was changed to UNIQA Towarzystwo Ubezpieczeń na Życie S.A. AXA pojišťovna a.s. (Prague, Czech Republic), AXA životní pojišťovna a.s. (Prague, Czech Republic) and UNIQA poisťovňa a.s (Bratislava, Slovakia) were merged with UNIQA pojišťovna, a.s. (Prague, Czech Republic) as the acquiring company in the third quarter. Furthermore, UNIQA InsService spol. s r.o. (Bratislava, Slovakia) was merged with UNIQA Management Services s.r.o. (former- ly: AXA Management Services s.r.o.) (Prague, Czech Re- public) as the acquiring company. Also in the third quarter, Hotel Burgenland Betriebs GmbH (Vienna) was merged with UNIQA Real Estate GmbH (Vienna) as the acquiring company, Diakonissen & Wehrle Privatklinik GmbH (Vi- enna) was merged with PremiQaMed Privatkliniken GmbH (Vienna) as the acquiring company, and UNIQA Real Estate Bulgaria EOOD (Sofia, Bulgaria) was merged with UNIQA Real Estate CZ, s.r.o. (Prague, Czech Repub- lic) as the acquiring company. Agenta Risiko- und Finanzierungsberatung Ges.m.b.H. (Vienna) was merged with Real Versicherungsvermittlung GmbH (Vienna) as the acquiring company in the fourth quarter. All of the aforementioned mergers took place retroactively effective 1 January 2021. In addition, the merger of UNIQA Immobilien- Projekterrichtungs GmbH (Vienna) with UNIQA Insur- ance Group AG (Vienna) as the acquiring company took place in the fourth quarter with retroactive effect from 1 July 2021. Deconsolidation UNIQA Számítástechnikai Szolgáltató Kft. (Budapest, Hungary) was deconsolidated in the second quarter of 2021. Liquidations UNIQA Real Estate BV (Hoofddorp, Netherlands) was liquidated in the fourth quarter of 2021. Sales Reytarske LLC (Kiev, Ukraine) was sold in the fourth quarter. Consolidated Financial Statements 130 Company Type of consolidation Location Equity interest at 31/12/2021 in per cent Equity interest at 31/12/2020 In per cent Domestic insurance companies UNIQA Insurance Group AG (Group Holding Company) Vienna UNIQA Österreich Versicherungen AG Fully consolidated Vienna 100.0 100.0 Foreign insurance companies AXA pojišťovna a.s. (Merger: 1/1/2021) Fully consolidated Czech Republic, Prague 0.0 100.0 AXA životní pojišťovna a.s. (Merger: 1/1/2021) Fully consolidated Czech Republic, Prague 0.0 100.0 Raiffeisen Life Insurance Company LLC Fully consolidated Russia, Moscow 75.0 75.0 SIGAL LIFE UNIQA Group AUSTRIA sh.a Fully consolidated Kosovo, Pristina 86.9 86.9 SIGAL LIFE UNIQA Group AUSTRIA sh.a. Fully consolidated Albania, Tirana 86.9 86.9 SIGAL UNIQA Group AUSTRIA sh.a. Fully consolidated Albania, Tirana 86.9 86.9 SIGAL UNIQA Group AUSTRIA sh.a. Fully consolidated Kosovo, Pristina 86.9 86.9 UNIQA AD Skopje Fully consolidated North Macedonia, Skopje 86.9 86.9 UNIQA Asigurari de Viata S.A. Fully consolidated Romania, Bucharest 100.0 100.0 UNIQA Asigurari S.A. Fully consolidated Romania, Bucharest 100.0 100.0 UNIQA Biztosító Zrt. Fully consolidated Hungary, Budapest 100.0 100.0 UNIQA Insurance Company, Private Joint Stock Company Fully consolidated Ukraine, Kiev 100.0 100.0 UNIQA Insurance plc Fully consolidated Bulgaria, Sofia 99.9 99.9 UNIQA Life AD Skopje Fully consolidated North Macedonia, Skopje 86.9 86.9 UNIQA Life Insurance plc Fully consolidated Bulgaria, Sofia 99.8 99.8 UNIQA LIFE Private Joint Stock Company Fully consolidated Ukraine, Kiev 100.0 100.0 UNIQA neživotno osiguranje a.d. Fully consolidated Serbia, Belgrade 100.0 100.0 UNIQA neživotno osiguranje a.d. Fully consolidated Montenegro, Podgorica 100.0 100.0 UNIQA osiguranje d.d. Fully consolidated Croatia, Zagreb 100.0 100.0 UNIQA osiguranje d.d. Fully consolidated Bosnia and Herzegovina, Sarajevo 100.0 100.0 UNIQA poisťovňa a.s. (Merger: 1/1/2021) Fully consolidated Slovakia, Bratislava 0.0 100.0 UNIQA pojišťovna, a.s. Fully consolidated Czech Republic, Prague 100.0 100.0 UNIQA Re AG Fully consolidated Switzerland, Zurich 100.0 100.0 UNIQA Towarzystwo Ubezpieczeń na Życie S.A. (Merger: 1/1/2021) Fully consolidated Poland, Lodz 0.0 99.8 UNIQA Towarzystwo Ubezpieczeń na Życie S.A. (formerly: AXA Życie Towarzystwo Ubezpieczeń S.A.) Fully consolidated Poland, Warsaw 100.0 100.0 UNIQA Towarzystwo Ubezpieczeń S.A. (Merger: 1/1/2021) Fully consolidated Poland, Lodz 0.0 98.6 UNIQA Towarzystwo Ubezpieczeń S.A. (formerly: AXA Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji S.A.) Fully consolidated Poland, Warsaw 99.7 100.0 UNIQA Versicherung AG Fully consolidated Liechtenstein, Vaduz 100.0 100.0 UNIQA životno osiguranje a.d. Fully consolidated Serbia, Belgrade 100.0 100.0 UNIQA životno osiguranje a.d. Fully consolidated Montenegro, Podgorica 100.0 100.0 Group domestic service companies Agenta Risiko- und Finanzierungsberatung Gesellschaft m.b.H. (Merger: 1/10/2021) Fully consolidated Vienna 0.0 100.0 Assistance Beteiligungs-GesmbH Fully consolidated Vienna 64.0 64.0 call us Assistance International GmbH Fully consolidated Vienna 50.2 50.2 Real Versicherungsvermittlung GmbH (Initial consolidation: 1/10/2021) Fully consolidated Vienna 100.0 100.0 UNIQA 5 Star GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Capital Markets GmbH Fully consolidated Vienna 100.0 100.0 UNIQA IT Services GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Real Estate Finanzierungs GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Real Estate Management GmbH Fully consolidated Vienna 100.0 100.0 Valida Holding AG Equity method Vienna 40.1 40.1 Versicherungsmarkt-Servicegesellschaft m.b.H. Fully consolidated Vienna 100.0 100.0 130 Company Type of consolidation Location Equity interest at 31/12/2021 in per cent Equity interest at 31/12/2020 In per cent Domestic insurance companies UNIQA Insurance Group AG (Group Holding Company) Vienna UNIQA Österreich Versicherungen AG Fully consolidated Vienna 100.0 100.0 Foreign insurance companies AXA pojišťovna a.s. (Merger: 1/1/2021) Fully consolidated Czech Republic, Prague 0.0 100.0 AXA životní pojišťovna a.s. (Merger: 1/1/2021) Fully consolidated Czech Republic, Prague 0.0 100.0 Raiffeisen Life Insurance Company LLC Fully consolidated Russia, Moscow 75.0 75.0 SIGAL LIFE UNIQA Group AUSTRIA sh.a Fully consolidated Kosovo, Pristina 86.9 86.9 SIGAL LIFE UNIQA Group AUSTRIA sh.a. Fully consolidated Albania, Tirana 86.9 86.9 SIGAL UNIQA Group AUSTRIA sh.a. Fully consolidated Albania, Tirana 86.9 86.9 SIGAL UNIQA Group AUSTRIA sh.a. Fully consolidated Kosovo, Pristina 86.9 86.9 UNIQA AD Skopje Fully consolidated North Macedonia, Skopje 86.9 86.9 UNIQA Asigurari de Viata S.A. Fully consolidated Romania, Bucharest 100.0 100.0 UNIQA Asigurari S.A. Fully consolidated Romania, Bucharest 100.0 100.0 UNIQA Biztosító Zrt. Fully consolidated Hungary, Budapest 100.0 100.0 UNIQA Insurance Company, Private Joint Stock Company Fully consolidated Ukraine, Kiev 100.0 100.0 UNIQA Insurance plc Fully consolidated Bulgaria, Sofia 99.9 99.9 UNIQA Life AD Skopje Fully consolidated North Macedonia, Skopje 86.9 86.9 UNIQA Life Insurance plc Fully consolidated Bulgaria, Sofia 99.8 99.8 UNIQA LIFE Private Joint Stock Company Fully consolidated Ukraine, Kiev 100.0 100.0 UNIQA neživotno osiguranje a.d. Fully consolidated Serbia, Belgrade 100.0 100.0 UNIQA neživotno osiguranje a.d. Fully consolidated Montenegro, Podgorica 100.0 100.0 UNIQA osiguranje d.d. Fully consolidated Croatia, Zagreb 100.0 100.0 UNIQA osiguranje d.d. Fully consolidated Bosnia and Herzegovina, Sarajevo 100.0 100.0 UNIQA poisťovňa a.s. (Merger: 1/1/2021) Fully consolidated Slovakia, Bratislava 0.0 100.0 UNIQA pojišťovna, a.s. Fully consolidated Czech Republic, Prague 100.0 100.0 UNIQA Re AG Fully consolidated Switzerland, Zurich 100.0 100.0 UNIQA Towarzystwo Ubezpieczeń na Życie S.A. (Merger: 1/1/2021) Fully consolidated Poland, Lodz 0.0 99.8 UNIQA Towarzystwo Ubezpieczeń na Życie S.A. (formerly: AXA Życie Towarzystwo Ubezpieczeń S.A.) Fully consolidated Poland, Warsaw 100.0 100.0 UNIQA Towarzystwo Ubezpieczeń S.A. (Merger: 1/1/2021) Fully consolidated Poland, Lodz 0.0 98.6 UNIQA Towarzystwo Ubezpieczeń S.A. (formerly: AXA Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji S.A.) Fully consolidated Poland, Warsaw 99.7 100.0 UNIQA Versicherung AG Fully consolidated Liechtenstein, Vaduz 100.0 100.0 UNIQA životno osiguranje a.d. Fully consolidated Serbia, Belgrade 100.0 100.0 UNIQA životno osiguranje a.d. Fully consolidated Montenegro, Podgorica 100.0 100.0 Group domestic service companies Agenta Risiko- und Finanzierungsberatung Gesellschaft m.b.H. (Merger: 1/10/2021) Fully consolidated Vienna 0.0 100.0 Assistance Beteiligungs-GesmbH Fully consolidated Vienna 64.0 64.0 call us Assistance International GmbH Fully consolidated Vienna 50.2 50.2 Real Versicherungsvermittlung GmbH (Initial consolidation: 1/10/2021) Fully consolidated Vienna 100.0 100.0 UNIQA 5 Star GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Capital Markets GmbH Fully consolidated Vienna 100.0 100.0 UNIQA IT Services GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Real Estate Finanzierungs GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Real Estate Management GmbH Fully consolidated Vienna 100.0 100.0 Valida Holding AG Equity method Vienna 40.1 40.1 Versicherungsmarkt-Servicegesellschaft m.b.H. Fully consolidated Vienna 100.0 100.0 131 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Company Type of consolidation Location Equity interest at 31/12/2021 in per cent Equity interest at 31/12/2020 In per cent Group foreign service companies CherryHUB BSC Kft. (Initial consolidation: 31/12/2021) Fully consolidated Hungary, Budapest 100.0 100.0 DEKRA-Expert Műszaki Szakértői Kft. Equity method Hungary, Budapest 50.0 50.0 sTech d.o.o. Fully consolidated Serbia, Belgrade 100.0 100.0 UNIQA GlobalCare SA Fully consolidated Switzerland, Geneva 100.0 100.0 UNIQA Group Service Center Slovakia, spol. s r.o. Fully consolidated Slovakia, Nitra 100.0 100.0 UNIQA Ingatlanhasznosító Kft. Fully consolidated Hungary, Budapest 100.0 100.0 UNIQA InsService spol. s r.o. (Merger: 1/1/2021) Fully consolidated Slovakia, Bratislava 0.0 100.0 UNIQA investiční společnost, a.s. (formerly: AXA investiční společnost a.s.) Fully consolidated Czech Republic, Prague 100.0 100.0 UNIQA Management Services, s.r.o. (formerly: AXA Management Services s.r.o.) Fully consolidated Czech Republic, Prague 100.0 100.0 UNIQA Polska S.A. (formerly: AXA Polska S.A.) Fully consolidated Poland, Warsaw 100.0 100.0 UNIQA Raiffeisen Software Service Kft. Fully consolidated Hungary, Budapest 60.0 60.0 UNIQA Software Service S.R.L. Fully consolidated Romania, Cluj-Napoca 100.0 100.0 UNIQA Számítástechnikai Szolgáltató Kft. (Deconsolidation: 30/6/2021) Fully consolidated Hungary, Budapest 0.0 100.0 Vitosha Auto OOD Fully consolidated Bulgaria, Sofia 99.9 99.9 Financial and strategic domestic shareholdings Diakonissen & Wehrle Privatklinik GmbH (Merger: 1/1/2021) Fully consolidated Gallneukirchen 0.0 92.6 Goldenes Kreuz Privatklinik BetriebsGmbH Fully consolidated Vienna 100.0 100.0 PremiaFIT Facility und IT Management und Service GmbH (Initial consolidation: 31/12/2021) Fully consolidated Vienna 100.0 100.0 PremiQaMed Ambulatorien GmbH Fully consolidated Vienna 100.0 100.0 PremiQaMed Beteiligungs GmbH Fully consolidated Vienna 100.0 100.0 PremiQaMed Holding GmbH Fully consolidated Vienna 100.0 100.0 PremiQaMed Privatkliniken GmbH Fully consolidated Vienna 100.0 100.0 STRABAG SE Equity method Villach 15.3 14.3 UNIQA Beteiligungs-Holding GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Erwerb von Beteiligungen Gesellschaft m.b.H. Fully consolidated Vienna 100.0 100.0 UNIQA Leasing GmbH Equity method Vienna 25.0 25.0 UNIQA Ventures GmbH Fully consolidated Vienna 100.0 100.0 Real estate companies “Hotel am Bahnhof” Errichtungs GmbH & Co KG Fully consolidated Vienna 100.0 100.0 Asena LLC Fully consolidated Ukraine, Kiev 100.0 100.0 AVE-PLAZA LLC Fully consolidated Ukraine, Kharkiv 100.0 100.0 Black Sea Investment Capital LLC Fully consolidated Ukraine, Kiev 100.0 100.0 City One Park Sp. z o.o. (Formerly: Dabrine Investments Sp. z o.o.) Fully consolidated Poland, Warsaw 100.0 100.0 Design Tower GmbH Fully consolidated Vienna 100.0 100.0 DIANA-BAD Errichtungs- und Betriebs GmbH Equity method Vienna 33.0 33.0 EZL Entwicklung Zone Lassallestraße GmbH & Co. KG Fully consolidated Vienna 100.0 100.0 Floreasca Tower SRL Fully consolidated Romania, Bucharest 100.0 100.0 Hotel Burgenland Betriebs GmbH (Merger: 1/1/2021) Fully consolidated Vienna 0.0 100.0 IPM International Property Management Kft. Fully consolidated Hungary, Budapest 100.0 100.0 Knesebeckstraße 8-9 Grundstücksgesellschaft mbH Fully consolidated Germany, Berlin 100.0 100.0 Light Investment Cotroceni SRL (Initial consolidation: 30/6/2021) Fully consolidated Romania, Bucharest 100.0 0.0 Praterstraße Eins Hotelbetriebs GmbH Fully consolidated Vienna 100.0 100.0 PremiQaMed Immobilien GmbH Fully consolidated Vienna 100.0 100.0 Consolidated Financial Statements 132 Company Type of consolidation Location Equity interest at 31/12/2021 in per cent Equity interest at 31/12/2020 In per cent Pretium Ingatlan Kft. Fully consolidated Hungary, Budapest 100.0 100.0 Renaissance Plaza d.o.o. Fully consolidated Serbia, Belgrade 100.0 100.0 Reytarske LLC (Deconsolidation: 9/11/2021) Fully consolidated Ukraine, Kiev 0.0 100.0 R-FMZ Immobilienholding GmbH Fully consolidated Vienna 100.0 100.0 Software Park Kraków Sp. z o.o. Fully consolidated Poland, Warsaw 100.0 100.0 Treimorfa Hotel Sp. z o.o. Fully consolidated Poland, Krakow 85.0 85.0 Treimorfa Project Sp. z o.o. Fully consolidated Poland, Krakow 85.0 85.0 UNIQA Immobilien-Projekterrichtungs GmbH (Merger: 22/12/2021) Fully consolidated Vienna 0.0 100.0 UNIQA Linzer Straße 104 GmbH & Co KG Fully consolidated Vienna 100.0 100.0 UNIQA Plaza Irodaház és Ingatlankezelő Kft. Fully consolidated Hungary, Budapest 100.0 100.0 UNIQA poslovni centar korzo d.o.o. Fully consolidated Croatia, Rijeka 100.0 100.0 UNIQA Real Estate Bulgaria EOOD (Merger: 1/1/2021) Fully consolidated Bulgaria, Sofia 0.0 100.0 UNIQA Real Estate BV (Deconsolidation: 28/12/2021) Fully consolidated Netherlands, Hoofddorp 0.0 100.0 UNIQA Real Estate CZ, s.r.o. Fully consolidated Czech Republic, Prague 100.0 100.0 UNIQA Real Estate GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Real Estate Inlandsholding GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Real Estate Polska Sp. z o.o. Fully consolidated Poland, Warsaw 100.0 100.0 UNIQA Real Estate Property Holding GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Real III, spol. s r.o. Fully consolidated Slovakia, Bratislava 100.0 100.0 UNIQA Real s.r.o. Fully consolidated Slovakia, Bratislava 100.0 100.0 UNIQA Retail Property GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Szolgáltató Kft. Fully consolidated Hungary, Budapest 100.0 100.0 UNIQA-Invest Kft. Fully consolidated Hungary, Budapest 100.0 100.0 Zablocie Park Sp. z o.o. Fully consolidated Poland, Warsaw 100.0 100.0 Pension and investment funds SSG Valluga Fund Fully consolidated Ireland, Dublin 100.0 100.0 UNIQA Capital Partners S.A. SICAV-RAIF – Infrastructure Equity Select (initial consolidation: 30/6/2021) Fully consolidated Luxembourg, Munsbach 100.0 0.0 UNIQA Capital Partners S.A. SICAV-RAIF – Private Equity Select (initial consolidation: 30/6/2021) Fully consolidated Luxembourg, Munsbach 100.0 0.0 UNIQA Corporate Bond Fully consolidated Vienna 100.0 100.0 UNIQA d.d.s., a.s. (formerly: AXA d.d.s., a.s.) Fully consolidated Slovakia, Bratislava 100.0 100.0 UNIQA d.s.s., a.s. (formerly: AXA d.s.s., a.s.) Fully consolidated Slovakia, Bratislava 100.0 100.0 UNIQA Eastern European Debt Fund Fully consolidated Vienna 100.0 100.0 UNIQA Emerging Markets Debt Fund Fully consolidated Vienna 100.0 100.0 UNIQA Euro Government Bond Fund Fully consolidated Vienna 100.0 100.0 UNIQA penzijní společnost, a.s. (formerly: AXA penzijní společnost a.s.) Fully consolidated Czech Republic, Brno 100.0 100.0 UNIQA Powszechne Towarzystwo Emerytalne S.A. (formerly: AXA Powszechne Towarzystwo Emerytalne S.A.) Fully consolidated Poland, Warsaw 100.0 100.0 UNIQA Towarzystwo Funduszy Inwestycyjnych S.A. (formerly: AXA Towarzystwo Funduszy Inwestycyjnych S.A.) Fully consolidated Poland, Warsaw 100.0 100.0 UNIQA World Selection Fully consolidated Vienna 100.0 100.0 132 Company Type of consolidation Location Equity interest at 31/12/2021 in per cent Equity interest at 31/12/2020 In per cent Pretium Ingatlan Kft. Fully consolidated Hungary, Budapest 100.0 100.0 Renaissance Plaza d.o.o. Fully consolidated Serbia, Belgrade 100.0 100.0 Reytarske LLC (Deconsolidation: 9/11/2021) Fully consolidated Ukraine, Kiev 0.0 100.0 R-FMZ Immobilienholding GmbH Fully consolidated Vienna 100.0 100.0 Software Park Kraków Sp. z o.o. Fully consolidated Poland, Warsaw 100.0 100.0 Treimorfa Hotel Sp. z o.o. Fully consolidated Poland, Krakow 85.0 85.0 Treimorfa Project Sp. z o.o. Fully consolidated Poland, Krakow 85.0 85.0 UNIQA Immobilien-Projekterrichtungs GmbH (Merger: 22/12/2021) Fully consolidated Vienna 0.0 100.0 UNIQA Linzer Straße 104 GmbH & Co KG Fully consolidated Vienna 100.0 100.0 UNIQA Plaza Irodaház és Ingatlankezelő Kft. Fully consolidated Hungary, Budapest 100.0 100.0 UNIQA poslovni centar korzo d.o.o. Fully consolidated Croatia, Rijeka 100.0 100.0 UNIQA Real Estate Bulgaria EOOD (Merger: 1/1/2021) Fully consolidated Bulgaria, Sofia 0.0 100.0 UNIQA Real Estate BV (Deconsolidation: 28/12/2021) Fully consolidated Netherlands, Hoofddorp 0.0 100.0 UNIQA Real Estate CZ, s.r.o. Fully consolidated Czech Republic, Prague 100.0 100.0 UNIQA Real Estate GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Real Estate Inlandsholding GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Real Estate Polska Sp. z o.o. Fully consolidated Poland, Warsaw 100.0 100.0 UNIQA Real Estate Property Holding GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Real III, spol. s r.o. Fully consolidated Slovakia, Bratislava 100.0 100.0 UNIQA Real s.r.o. Fully consolidated Slovakia, Bratislava 100.0 100.0 UNIQA Retail Property GmbH Fully consolidated Vienna 100.0 100.0 UNIQA Szolgáltató Kft. Fully consolidated Hungary, Budapest 100.0 100.0 UNIQA-Invest Kft. Fully consolidated Hungary, Budapest 100.0 100.0 Zablocie Park Sp. z o.o. Fully consolidated Poland, Warsaw 100.0 100.0 Pension and investment funds SSG Valluga Fund Fully consolidated Ireland, Dublin 100.0 100.0 UNIQA Capital Partners S.A. SICAV-RAIF – Infrastructure Equity Select (initial consolidation: 30/6/2021) Fully consolidated Luxembourg, Munsbach 100.0 0.0 UNIQA Capital Partners S.A. SICAV-RAIF – Private Equity Select (initial consolidation: 30/6/2021) Fully consolidated Luxembourg, Munsbach 100.0 0.0 UNIQA Corporate Bond Fully consolidated Vienna 100.0 100.0 UNIQA d.d.s., a.s. (formerly: AXA d.d.s., a.s.) Fully consolidated Slovakia, Bratislava 100.0 100.0 UNIQA d.s.s., a.s. (formerly: AXA d.s.s., a.s.) Fully consolidated Slovakia, Bratislava 100.0 100.0 UNIQA Eastern European Debt Fund Fully consolidated Vienna 100.0 100.0 UNIQA Emerging Markets Debt Fund Fully consolidated Vienna 100.0 100.0 UNIQA Euro Government Bond Fund Fully consolidated Vienna 100.0 100.0 UNIQA penzijní společnost, a.s. (formerly: AXA penzijní společnost a.s.) Fully consolidated Czech Republic, Brno 100.0 100.0 UNIQA Powszechne Towarzystwo Emerytalne S.A. (formerly: AXA Powszechne Towarzystwo Emerytalne S.A.) Fully consolidated Poland, Warsaw 100.0 100.0 UNIQA Towarzystwo Funduszy Inwestycyjnych S.A. (formerly: AXA Towarzystwo Funduszy Inwestycyjnych S.A.) Fully consolidated Poland, Warsaw 100.0 100.0 UNIQA World Selection Fully consolidated Vienna 100.0 100.0 133 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS 38. Changes in major accounting policies as well as n ew and amended standards With the exception of the following changes, the outlined accounting policies were consistently applied to all peri- ods presented in these consolidated financial statements. Amendments and standards to be applied for the first time The Group adopted the following adjustments to stand- ards with the initial application date of 1 January 2021. None of the new regulations arising from this have any essential impact on UNIQA’s assets, liabilities, financial position and profit or loss. Standard Content First-time application by UNIQA Impact on UNIQA IFRS 4, IFRS 9 Amendments to IFRS 4 Insurance Contracts: Extension of the Temporary Exemption from Applying IFRS 9 1 January 2021 Yes IFRS 9, IAS 39, IFRS 7, IFRS 4, IFRS 16 Amendments to IFRS 9, IAS 39 and other IFRSs with regard to the effects of the IBOR reform (Phase 2) 1 January 2021 No New and amended standards to be applied in the future The IASB has also published a range of new standards that will be applicable in the future. UNIQA does not intend to adopt these standards early. Standard Content First-time application by UNIQA Endorsement by the EU at 31 December 2021 Likely to be relevant for UNIQA New standards IFRS 9 Financial Instruments 1 January 2023 Yes Yes IFRS 9 Amendments to IFRS 9– Prepayment Features with Negative Compensation 1 January 2023 Yes Yes IFRS 17 Insurance Contracts 1 January 2023 Yes Yes Amended standards IAS 1 Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current 1 January 2022 No Yes IFRS 3, IAS 16, IAS 37 Amendments to IFRS 3 for the purpose of updating a reference to the Conceptual Framework Amendments to IAS 16 relating to revenue before intended use Amendments to IAS 37 relating to onerous contracts 1 January 2022 Yes Yes The following standards to be applied in future are ex- pected to have a significant impact on reporting at UNIQA: IFRS 9– Financial Instruments Since UNIQA’s business is predominantly insurance- related and UNIQA has not yet adopted IFRS 9 in any oth- er version, a deferral to adopt IFRS 9 for the first time is permitted until 1 January 2023. The use of UNIQA’s defer- ral approach requires the publication of additional infor- mation in the notes for the period up to the first-time ap- plication of IFRS 9. Classification and measurement The classification and measurement of financial assets under IFRS 9 results from the business model and the SPPI criterion (Solely Payments of Principal and Interest). Based on current indications, a large part of UNIQA’s other investments is classified under the hold-and-sell business model. Investments without the intention to sell, such as time deposits and loans, are classified under the “hold” business model. Consolidated Financial Statements 134 This means that UNIQA will in future measure fixed- interest securities that meet the SPPI criterion at fair val- ue through other comprehensive income. Non-fixed- interest securities, in particular fund certificates, will in future be measured at fair value through profit or loss. However, UNIQA plans to use the FVOCI option for select- ed equity instruments and consequently to measure these instruments at fair value through other comprehensive income. All investments of unit-linked and index-linked life insur- ance investments will continue to be classified and meas- ured at fair value through profit or loss, unchanged from the current accounting under IAS 39. Other investments that fulfil the SPPI test 1) based on carrying amounts in per cent Variable-income securities Fixed-income securities Loans and other investments Derivative financial instruments Investments under investment contracts Available-for-sale financial assets 0.0 86.3 - - - Loans and receivables - 0.3 99.8 - - Total 0.0 86.6 99.8 0.0 0.0 1) The classification occurs in accordance with IAS 39. Investments classified as financial assets at fair value through profit or loss do not meet the requirements of the SPPI test. Asset allocation of other investments that fulfil the criteria of the SPPI test In € thousand At amortised cost or at fair value through other comprehensive income At fair value through profit or loss Carrying amount Fair value Change in fair value over the period Carrying amount Fair value Change in fair value over the period Government bonds 10,585,782 10,468,551 –157,724 6,843 6,812 119 Corporate bonds 3,171,914 3,145,809 –5,074 323,864 321,617 190,526 Covered bonds 1,837,218 1,819,700 –300,541 0 0 0 Loans 139,181 144,223 60,879 7,555 10,557 9,857 Other 283 282 282 2,092,646 2,092,452 546,678 Total 15,734,378 15,578,564 –402,177 2,430,908 2,431,438 747,179 Impairment In future, the calculation of expected credit losses accord- ing to the three-level model is to be carried out exclusively for financial assets measured at amortised cost or at fair value through other comprehensive income. Instruments with a low default risk (investment grade) are regularly allocated by UNIQA to Level 1 of the impairment model. 134 This means that UNIQA will in future measure fixed- interest securities that meet the SPPI criterion at fair val- ue through other comprehensive income. Non-fixed- interest securities, in particular fund certificates, will in future be measured at fair value through profit or loss. However, UNIQA plans to use the FVOCI option for select- ed equity instruments and consequently to measure these instruments at fair value through other comprehensive income. All investments of unit-linked and index-linked life insur- ance investments will continue to be classified and meas- ured at fair value through profit or loss, unchanged from the current accounting under IAS 39. Other investments that f ulfil the SPPI test 1) based on carrying amounts in per cent Variable-income securities Fixed-income securities Loans and other investments Derivative financial instruments Investments under investment contracts Available-for-sale financial assets 0.0 86.3 - - - Loans and receivables - 0.3 99.8 - - Total 0.0 86.6 99.8 0.0 0.0 1) The classification occurs in accordance with IAS 39. Investments classified as financial assets at fair value through profit or loss do not meet the requirements of the SPPI test. Asset allocation of o ther investments that fulfil the criteria of the SPPI test In € thousand At amortised cost or at fair value through other comprehensive income At fair value through profit or loss Carrying amount Fair value Change in fair value over the period Carrying amount Fair value Change in fair value over the period Government bonds 10,585,782 10,468,551 –157,724 6,843 6,812 119 Corporate bonds 3,171,914 3,145,809 –5,074 323,864 321,617 190,526 Covered bonds 1,837,218 1,819,700 –300,541 0 0 0 Loans 139,181 144,223 60,879 7,555 10,557 9,857 Other 283 282 282 2,092,646 2,092,452 546,678 Total 15,734,378 15,578,564 –402,177 2,430,908 2,431,438 747,179 Impairment In future, the calculation of expected credit losses accord- ing to the three-level model is to be carried out exclusively for financial assets measured at amortised cost or at fair value through other comprehensive income. Instruments with a low default risk (investment grade) are regularly allocated by UNIQA to Level 1 of the impairment model. 135 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Financial instruments by rating In € thousand Government bonds Corporate bonds Covered bonds Loans Other Total AAA 1,898,454 9,700 1,163,190 46,079 0 3,117,422 AA 3,348,120 231,925 532,870 0 0 4,112,915 A 3,008,584 1,588,179 103,476 10,111 0 4,710,350 BBB 1,731,347 941,402 8,274 9,757 0 2,690,779 BB 256,193 100,097 0 0 0 356,290 B 294,271 9,053 0 0 0 303,324 ≤ CCC 11,773 0 0 0 0 11,773 Not rated 37,041 291,558 29,408 73,234 283 431,525 Total 10,585,782 3,171,914 1,837,218 139,181 283 15,734,378 The fair value of the instruments which do not feature a low default risk (non-investment grade) amounts to €671 million. UNIQA expects effects from the conversion to IFRS 9 both as a result of the new classification and measurement rules and due to the new impairment model. In this re- gard, possible initial application and subsequent meas- urement effects are to be expected in the category “Varia- ble-income securities” in particular, as these financial assets will have to be measured at fair value through profit or loss in future. In a holistic view, interactions with IFRS 17 must also be taken into account in this context. In the 2022 financial year, a parallel phase for IFRS 9 will also take place in connection with IFRS 17 in order to be able to ensure the comparative figures required when adjusting the previous year’s figures. IFRS 17– Contracts On 25 June 2020, the IASB (International Accounting Standards Board) published the final accounting standard for insurance contracts – IFRS 17. The date of initial application of IFRS 17 was set for 1 January 2023. For insurance companies, the date of initial application of IFRS 9 is linked to that of IFRS 17. IFRS 17 became EU law through the adoption of Regulation (EU) No. 2021/2036 of 19 November 2021 by the EU Commission. IFRS 17 establishes principles relating to recognition, measurement, presentation and disclosures of insurance contracts. The general measurement model will be adopted for the long-term property and casualty insurance business as well as for life insurance contracts without profit participation. For short-term contracts – this is predominantly the case in the area of property and casualty insurance – UNIQA will adopt the premium allocation approach. The variable fee approach will be adopted for contracts in health insurance that involve profit participation and for contracts of unit-linked and index-linked life insurance. This classification is in line with the assumptions made so far for the initial application of IFRS 17. For both the general measurement model and the variable fee approach, UNIQA assumes at the time of publication of the Group report that the so-called OCI option will be applied where the respective allocated financial instruments on the asset side are also measured through other comprehensive income. The grouping for the valuation hierarchy and accounting of contracts according to IFRS 17 is as follows:  Portfolios: insurance contracts that are exposed to a similar risk and are managed together are combined into a portfolio.  Contract groups: portfolios are divided into contract groups.  Annual cohorts: contract groups are subdivided according to underwriting years (“annual cohorts“). For contracts in health and life insurance that involve profit participation, UNIQA will adopt the option to exempt the mandatory subdivision by underwriting year. In 2021, various IFRS 17 technical concepts were shared with the subsidiaries for local implementation and expanded to include their features and specific circumstances. Consolidated Financial Statements 136 The integration and preparation of the data required for the measurement of and accounting for contracts represents a key challenge in implementing IFRS 17. It was possible to largely complete this work in the 2021 financial year. Comprehensive tests were carried out both with regard to the actuarial subledger and the new and adapted interfaces for supplying the systems with the data. In the 2022 financial year, UNIQA will continue to work on the quality of the systems and data in order to ensure compliance with the requirements of IFRS 17. In the past financial year, the effects and interaction of IFRS 9 and IFRS 17 on the financial position and income statement of selected UNIQA companies were analysed. This analysis was based on several simplifications and assumptions. For example, in health and life insurance business lines, the future expected cash flows were based on the results of the market-consistent embedded value (MCEV). Furthermore, an approximate cost allocation according to IFRS 17 was applied in the analysis. A simplified approach was also used to derive the risk adjustment. Despite simplifications and estimates, important lessons have been learned:  The comparability of IFRS 4 and IFRS 17 is limited due to the fundamental differences between the two accounting standards.  Despite certain similarities with the solvency regulations under Solvency II, the interpretation of profits according to IFRS 17 is challenging due to the significantly increased complexity. In addition, the parameters for measuring the success of the company will change and new indicators such as the contractual service margin or loss component will be established.  For the measurement and accounting of contracts according to IFRS 17, much larger volumes of data need to be processed and validated compared to IFRS 4. In the course of the impact analysis, all three measurement models (general measurement model, variable fee approach and premium allocation approach) were applied specifically to the portfolio of selected UNIQA companies. Due to the continued limited scope of this impact analysis, no precise conclusions can be drawn yet regarding the impact of IFRS 17 on the Group as a whole. 39. Foreign currency translation Functional currency and reporting currency The items included in the financial statements for each operating subsidiary are measured based on the currency that corresponds with the currency of the primary eco- nomic environment in which the subsidiary operates (functional currency). The consolidated financial state- ments are prepared in euros which is UNIQA’s reporting currency. Transactions in foreign currencies Transactions in foreign currencies are translated into the functional currency of the Group entity at the exchange rate on the date of the transaction or, in the case of re- measurement, at the time of measurement. Monetary assets and liabilities denominated in a foreign currency on the reporting date are translated into the functional currency at the closing rate. Non-monetary assets and liabilities measured at fair value in a foreign currency are translated at the rate valid on the date the fair value is calculated. Currency translation differences are generally recognised in profit/(loss) for the period. Non-monetary items recognised in a foreign currency at historical cost are stated with the historical exchange rate. This results in no currency translation difference. Currency translation differences from equity instruments available for sale are recognised in other comprehensive income by way of derogation from the general principle. An exception to this are impairments for which currency translation differences are reclassified from other com- prehensive income to profit/(loss) for the period. Foreign operations Assets and liabilities from foreign operations, including the goodwill and fair value adjustments that result from the acquisition, are translated into euros at the closing rate on the reporting date. Currency translation differ- ences are reported in other comprehensive income and recognised in equity as a part of the accumulated profits in the item “Differences from currency translation” if the foreign exchange difference is not attributable to non- controlling interests. Income and expenses from foreign operations are trans- lated at the monthly closing rates. 136 The integration and preparation of the data required for the measurement of and accounting for contracts represents a key challenge in implementing IFRS 17. It was possible to largely complete this work in the 2021 financial year. Comprehensive tests were carried out both with regard to the actuarial subledger and the new and adapted interfaces for supplying the systems with the data. In the 2022 financial year, UNIQA will continue to work on the quality of the systems and data in order to ensure compliance with the requirements of IFRS 17. In the past financial year, the effects and interaction of IFRS 9 and IFRS 17 on the financial position and income statement of selected UNIQA companies were analysed. This analysis was based on several simplifications and assumptions. For example, in health and life insurance business lines, the future expected cash flows were based on the results of the market-consistent embedded value (MCEV). Furthermore, an approximate cost allocation according to IFRS 17 was applied in the analysis. A simplified approach was also used to derive the risk adjustment. Despite simplifications and estimates, important lessons have been learned:  The comparability of IFRS 4 and IFRS 17 is limited due to the fundamental differences between the two accounting standards.  Despite certain similarities with the solvency regulations under Solvency II, the interpretation of profits according to IFRS 17 is challenging due to the significantly increased complexity. In addition, the parameters for measuring the success of the company will change and new indicators such as the contractual service margin or loss component will be established.  For the measurement and accounting of contracts according to IFRS 17, much larger volumes of data need to be processed and validated compared to IFRS 4. In the course of the impact analysis, all three measurement models (general measurement model, variable fee approach and premium allocation approach) were applied specifically to the portfolio of selected UNIQA companies. Due to the continued limited scope of this impact analysis, no precise conclusions can be drawn yet regarding the impact of IFRS 17 on the Group as a whole. 39. Foreign currency translation Functional currency and reporting currency The items included in the financial statements for each operating subsidiary are measured based on the currency that corresponds with the currency of the primary eco- nomic environment in which the subsidiary operates (functional currency). The consolidated financial state- ments are prepared in euros which is UNIQA’s reporting currency. Transactions in foreign currencies Transactions in foreign currencies are translated into the functional currency of the Group entity at the exchange rate on the date of the transaction or, in the case of re- measurement, at the time of measurement. Monetary assets and liabilities denominated in a foreign currency on the reporting date are translated into the functional currency at the closing rate. Non-monetary assets and liabilities measured at fair value in a foreign currency are translated at the rate valid on the date the fair value is calculated. Currency translation differences are generally recognised in profit/(loss) for the period. Non-monetary items recognised in a foreign currency at historical cost are stated with the historical exchange rate. This results in no currency translation difference. Currency translation differences from equity instruments available for sale are recognised in other comprehensive income by way of derogation from the general principle. An exception to this are impairments for which currency translation differences are reclassified from other com- prehensive income to profit/(loss) for the period. Foreign operations Assets and liabilities from foreign operations, including the goodwill and fair value adjustments that result from the acquisition, are translated into euros at the closing rate on the reporting date. Currency translation differ- ences are reported in other comprehensive income and recognised in equity as a part of the accumulated profits in the item “Differences from currency translation” if the foreign exchange difference is not attributable to non- controlling interests. Income and expenses from foreign operations are trans- lated at the monthly closing rates. 137 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Currency translation differences from the proportion of the carrying amount in the Consolidated Income State- ment and attributable to the amortised cost are recognised in the item “Available-for-sale financial assets”. Major exchange rates EUR closing rates EUR average rates 31/12/2021 31/12/2020 1–12/2021 1–12/2020 Swiss franc (CHF) 1.0331 1.0802 1.0800 1.0720 Czech koruna (CZK) 24.8580 26.2420 25.6942 26.4138 Hungarian forint (HUF) 369.1900 363.8900 359.2377 352.2423 Polish złoty (PLN) 4.5969 4.5597 4.5736 4.4518 Romanian leu (RON) 4.9490 4.8683 4.9206 4.8379 Ukrainian hryvnia (UAH) 30.8866 34.6022 32.3684 30.9282 Russian rouble (RUB) 85.3004 91.4671 87.6021 83.1271 Albanian lek (ALL) 120.7600 123.2600 122.5062 124.0777 US dollar (USD) 1.1326 1.2271 1.1844 1.1452 Japanese yen (JPY) 130.3800 126.4900 130.0262 121.8885 Effects of Covid-19 Technical result In health insurance, there were reduced benefits in the financial year due to delays in the health system. No signif- icant catch-up effects are expected for subsequent years. In the area of life insurance there were visible effects of Covid-19 in the UNIQA International segment with regard to the increased mortality rate and thus insurance bene- fits. Net investment income The (city) hotel properties form a part (6 per cent) of the UNIQA real estate portfolio. As city trips continue to lag massively behind the level recorded in the 2019 financial year due to Covid-19, this resulted in reduced rental in- come of around €7 million in this area. Furthermore, im- pairments amounting to €7 million were made in this area. A reduction in rental income of around €3 million also had to be accepted for retail space compared to the pre-Covid- 19 level. Significant events after the reporting date The conflict between Ukraine and Russia, which has been going on for several years, escalated at the end of February 2022. UNIQA is represented in Ukraine by two insurance companies and three real estate companies. In Russia, UNIQA holds 75 per cent of a life insurance company (the remaining 25 per cent is held by JSC Raiffeisenbank). Due to the inability as yet to assess this constantly changing situation, it is not possible to make a conclusive assess- ment of the future effects on UNIQA at the time of prepar- ing the consolidated financial statements. This is a value- impacting event occurring in 2022 after the reporting date so there will be no impact on these consolidated financial statements as at 31 December 2021. In 2021, the premiums written in Ukraine amounted to around €110 million and in Russia to around €75 million – amounting to approximately 3 per cent of UNIQA’s total premiums written. The assets attributable to the insur- ance companies in Ukraine amount to around €140 million as at 31 December 2021, around €90 million of which are investments. The real estate companies in Ukraine had assets of around €20 million at the end of 2021. In Russia, the assets attributable to the share held by UNIQA amount to around €250 million, with around €230 million of this attributable to investments. Should there be a loss of control over the companies from a consolidation perspective without any consideration being received, there would be a negative effect on the consolidated income statement of the companies in Ukraine of around €95 million as at the end of 2021. The effect on the UNIQA share of the company in Russia would amount to around €43 million as at the end of 2021. In addition, other Group companies hold investments issued by Ukrainian and Russian issuers. The carrying amount of these investments was around €200 million as at 31 December 2021. Further developments in the situation are being moni- tored and appropriate measures will be implemented as necessary to keep the impact on UNIQA to a minimum. Consolidated Financial Statements 138 Risk report 4 0. Risk strategy Principles UNIQA’s strategic objectives are directly linked to the company’s risk strategy. The cornerstones of the risk strategy are based on the business strategy and the risks it entails. A clear definition of the risk preference creates the foundation for all business policy decisions. Organisation UNIQA’s core business is to relieve customers of risk, pool the risk to reduce it and thereby generate profit for the company. The focus is on understanding risks and their particular features. To ensure a strong focus on risk, UNIQA has created a separate risk function on the Group’s Management Board with a Group Chief Risk Officer (CRO) who is also acting concurrently as Group Chief Financial Officer (CFO). In the Group companies, the Chief Risk Officer is also a part of the Management Board. This en- sures that decision-making is risk-based in all relevant bodies. UNIQA has established processes that make it possible to identify, analyse and manage risks. The risk profile is regularly validated at all levels of the hierarchy and discussions are held in specially instituted committees with the members of the Management Board. Internal and external sources are consulted to obtain a complete picture of the risk situation. UNIQA regularly checks for new threats both in the Group and in the sub- sidiaries. Risk-bearing capacity and risk appetite UNIQA assumes risk in full awareness of its risk-bearing capacity. This is defined as the capacity to absorb potential losses from extreme events so that medium- and long- term objectives are not put in danger. The Solvency Capital Requirement (SCR) is at the centre of risk-related decisions. The SCR corresponds with a company-specific risk assessment based on a partial in- ternal model for market risks and non-life risks, as well as on the standard model according to Solvency II for the other categories of risk. As such, it corresponds with the regulatory risk calculations under the Solvency II frame- work. Based on this approach, we aim to achieve a solvency capital ratio above 170 per cent. Immediate steps will be taken to improve the capital position if the marginal value falls below 135 per cent. Details for the reporting date as at 31 December 2021, including a detailed analysis of changes, can be found in the “UNIQA Capital Report” presentation. Non-quantifiable risks, in particular operational risk, litigation risk and strategic risk are identified and assessed as part of the risk assessment process. This assessment is then used as the basis for implementing any necessary risk mitigation measures. UNIQA’s risk strategy specifies the risks the company intends to assume and those it plans to avoid. Within the scope of the strategy process, risk appetite is defined based on UNIQA’s risk-bearing capacity. This risk appetite is then used to determine tolerances and limits, which pro- vide a sufficient early warning system for the company to initiate prompt corrective action in the event of any devia- tion from targets. UNIQA counters risks that fall outside the defined risk appetite, such as reputational risk, with proactive measures, transparency and careful assessment. Opportunities Risk also means opportunity. UNIQA regularly analyses trends and risks that influence society and thus the cus- tomers and company UNIQA itself. Employees throughout the company are involved in order to recognise and ana- lyse trends at an early stage, produce suitable action plans and develop innovative approaches. 41. Risk management system The focus of risk management with management struc- tures and defined processes is the attainment of UNIQA’s and its Group companies’ strategic goals. UNIQA’s Risk Management Guidelines form the basis for a uniform standard at various company levels. The guide- lines are approved by the CFO/CRO and the Group Execu- tive Board and describe the minimum requirements in terms of organisational structure and process structure. In addition to the Group Risk Management Guidelines, similar guidelines have also been prepared and approved for the Group companies. The Risk Management Guide- lines at company level were approved by the Management Board of the UNIQA Group companies and are consistent with UNIQA’s Risk Management Guidelines. 138 Risk report 4 0. Risk strategy Principles UNIQA’s strategic objectives are directly linked to the company’s risk strategy. The cornerstones of the risk strategy are based on the business strategy and the risks it entails. A clear definition of the risk preference creates the foundation for all business policy decisions. Organisation UNIQA’s core business is to relieve customers of risk, pool the risk to reduce it and thereby generate profit for the company. The focus is on understanding risks and their particular features. To ensure a strong focus on risk, UNIQA has created a separate risk function on the Group’s Management Board with a Group Chief Risk Officer (CRO) who is also acting concurrently as Group Chief Financial Officer (CFO). In the Group companies, the Chief Risk Officer is also a part of the Management Board. This en- sures that decision-making is risk-based in all relevant bodies. UNIQA has established processes that make it possible to identify, analyse and manage risks. The risk profile is regularly validated at all levels of the hierarchy and discussions are held in specially instituted committees with the members of the Management Board. Internal and external sources are consulted to obtain a complete picture of the risk situation. UNIQA regularly checks for new threats both in the Group and in the sub- sidiaries. Risk-bearing capacity and risk appetite UNIQA assumes risk in full awareness of its risk-bearing capacity. This is defined as the capacity to absorb potential losses from extreme events so that medium- and long- term objectives are not put in danger. The Solvency Capital Requirement (SCR) is at the centre of risk-related decisions. The SCR corresponds with a company-specific risk assessment based on a partial in- ternal model for market risks and non-life risks, as well as on the standard model according to Solvency II for the other categories of risk. As such, it corresponds with the regulatory risk calculations under the Solvency II frame- work. Based on this approach, we aim to achieve a solvency capital ratio above 170 per cent. Immediate steps will be taken to improve the capital position if the marginal value falls below 135 per cent. Details for the reporting date as at 31 December 2021, including a detailed analysis of changes, can be found in the “UNIQA Capital Report” presentation. Non-quantifiable risks, in particular operational risk, litigation risk and strategic risk are identified and assessed as part of the risk assessment process. This assessment is then used as the basis for implementing any necessary risk mitigation measures. UNIQA’s risk strategy specifies the risks the company intends to assume and those it plans to avoid. Within the scope of the strategy process, risk appetite is defined based on UNIQA’s risk-bearing capacity. This risk appetite is then used to determine tolerances and limits, which pro- vide a sufficient early warning system for the company to initiate prompt corrective action in the event of any devia- tion from targets. UNIQA counters risks that fall outside the defined risk appetite, such as reputational risk, with proactive measures, transparency and careful assessment. Opportunities Risk also means opportunity. UNIQA regularly analyses trends and risks that influence society and thus the cus- tomers and company UNIQA itself. Employees throughout the company are involved in order to recognise and ana- lyse trends at an early stage, produce suitable action plans and develop innovative approaches. 41. Risk management system The focus of risk management with management struc- tures and defined processes is the attainment of UNIQA’s and its Group companies’ strategic goals. UNIQA’s Risk Management Guidelines form the basis for a uniform standard at various company levels. The guide- lines are approved by the CFO/CRO and the Group Execu- tive Board and describe the minimum requirements in terms of organisational structure and process structure. In addition to the Group Risk Management Guidelines, similar guidelines have also been prepared and approved for the Group companies. The Risk Management Guide- lines at company level were approved by the Management Board of the UNIQA Group companies and are consistent with UNIQA’s Risk Management Guidelines. 139 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Organisational structure (governance) The detailed setup of the process and organisational struc- ture of risk management is set out in UNIQA’s Risk Man- agement Guidelines. They reflect the principles embodied in the concept of “three lines” and the clear differences between the individual “lines”. First line: risk management within the business activity Those responsible for business activities must develop and put into practice an appropriate risk control environment to identify and monitor the risks that arise in connection with the business and processes. Second line: supervisory functions including risk man- agement functions The risk management function and the supervisory func- tions, such as controlling, must monitor business activities without encroaching on operational activities. Third line: internal audit This enables an independent review of the formation and effectiveness of the entire internal control system, which comprises risk management and compliance (e.g. internal auditing).    Consolidated Financial Statements 140   The relevant responsibilities are shown accordingly in the overview above. In addition, the Supervisory Board at UNIQA Insurance Group AG receives comprehensive risk reports at Supervisory Board meetings. Risk management process UNIQA’s risk management process delivers periodic in- formation about the risk profile and enables the top man- agement to make the decisions for the long-term achieve- ment of objectives. The process concentrates on risks relevant to the company and is defined for the following classes of risk:  Market risk/Asset Liability Management risk (ALM risk)  Credit risk/default risk  Liquidity risk  Concentration risk  Underwriting risk (property and casualty insurance, health and life insurance)  Operational risk  Emerging risk  Reputational risk  Contagion risk  Strategic risk 140   The relevant responsibilities are shown accordingly in the overview above. In addition, the Supervisory Board at UNIQA Insurance Group AG receives comprehensive risk reports at Supervisory Board meetings. Risk management process UNIQA’s risk management process delivers periodic in- formation about the risk profile and enables the top man- agement to make the decisions for the long-term achieve- ment of objectives. The process concentrates on risks relevant to the company and is defined for the following classes of risk:  Market risk/Asset Liability Management risk (ALM risk)  Credit risk/default risk  Liquidity risk  Concentration risk  Underwriting risk (property and casualty insurance, health and life insurance)  Operational risk  Emerging risk  Reputational risk  Contagion risk  Strategic risk 141 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS A Group-wide, standardised risk management process regularly identifies, evaluates and reports on risks to UNIQA and its Group companies within these categories of risk. Sustainability risks or ESG risks include risks related to the sustainability factors of environment, social/employee and governance (“ESG”). They are not considered as a separate risk category, but are taken into account as part of the existing ten risk categories. Risk identification is the starting point for the risk man- agement process, systematically recording all major risks and describing them in as much detail as possible. In order to conduct as complete a risk identification as possible, different approaches are used in parallel, and all catego- ries of risk, subsidiaries, processes and systems are includ- ed. The risk categories of market risk, underwriting risks and default risk are evaluated at UNIQA by means of quantita- tive methods either based on the Solvency II standard approach or the partial internal model (for non-life or market risks). Furthermore, risk drivers are identified for the results from the standard approach, and analysed to assess whether the risk situation is adequately represent- ed (in accordance with the Company’s Own Risk and Sol- vency Assessment (ORSA)). All other categories of risk are evaluated quantitatively or qualitatively with their own risk scenarios. 42. Activities and objectives in 2021 Based on external and internal developments, activities in 2021 focused on the following:  Covid-19 and capital market environment  Sustainability  AXA integration  Further development of the internal model  GRC tool rollout Covid-19 and capital market environment UNIQA already began to strictly monitor its own solvency position at the beginning of the Covid-19 crisis. In contrast to 2020, the economic environment was more stable in the following year. In 2021, the target capital position of the entity and its associated companies was maintained, showing that they were well prepared for unexpected shocks such as the Covid-19 crisis. UNIQA will continue to monitor the situation closely in order to be able to respond quickly to potential changes (triggered by another wave of Covid-19). The pandemic has affected UNIQA’s business development in some areas. It had both negative (business interruptions, event cancellations) and positive (lower claims frequency in motor and accident business, high demand for health insurance) effects. The development of the capital market environment, as well as the changes in fair values, were closely monitored. The company also carried out monthly solvency assessments. The year 2021 brought a positive interest rate development, which led to the strengthening of UNIQA’s capital situation. Sustainability Sustainability (or Environmental Social Governance (ESG)) is one of the topics that has become increasingly important in recent years, both in the applicable regula- tions as well as in terms of public perception. First steps for the integration of sustainability into the risk manage- ment framework have already been taken and further improvements are planned for next year. In 2021, the defi- nition of sustainability risks was anchored in the Group Risk Management Policy. Furthermore, the investment portfolio was examined on the basis of ESG criteria. The risk catalogue of the internal control system was also ex- panded to include risks from climate change. In principle, this year’s risk assessment process attempted to gather initial experience with the challenging task of measuring long-term climate scenarios. The objective of this meas- urement is to obtain as good a quantitative statement as possible. However, since this is not (yet) always possible in all aspects or is associated with great uncertainty, qualita- tive simplifications were also used last year. AXA integration At the end of 2020, UNIQA took full control of the AXA subsidiaries in Poland, the Czech Republic and Slovakia. For one and a half years, local project teams in Poland, the Czech Republic and Slovakia have been working on the integration under the leadership of central integration management in Vienna. In 2021, important milestones were reached from a risk management perspective. The acquired companies were successfully included in UNIQA’s risk management processes. Among other things, the integration into the risk capital calculation process was successfully carried out. Consolidated Financial Statements 142 Further development of the internal model Building on the expertise gained through the development of the partial internal model, it was decided to take further steps to expand the risk model into a full internal model. In the medium term, this internal model is to be approved by the regulator and used to determine the capital re- quirement ratio. The objective is to use the internal model to depict UNIQA’s specific risk situation more adequately than via the standard model and to take it into account in risk management accordingly. Another advantage of an internal model is that it is less vulnerable to future regula- tory adjustments to the Solvency II standard model. If approved, this would make UNIQA the first Austrian in- surance group to have a full internal model. The multi- year project started in 2021 with an initial development phase. GRC tool rollout UNIQA has been working intensively on expanding the concept of its internal control system (ICS) in recent years. A Governance, Risk & Compliance (GRC) tool was introduced in order to support implementation of the ICS through the systems. The GRC tool is used as a central element in managing operational risk. Rolling it out across the entire Group was one of the focal points and challeng- es in 2021. The focus was on training the staff in the new system on the one hand, and on migrating the data on the other. The full rollout within the Group should be com- pleted by the end of 2022. 43. Challenges and priorities in risk management f or 2022 Environmental Social Governance (ESG) The topic of sustainability was already of very high im- portance for UNIQA last year. The focus for risk manage- ment is particularly on managing and handling sustaina- bility risks. In 2022, we will therefore work hard to meas- ure the long-term climate scenarios and try to drive fur- ther progress and improvements here. The climate scenar- ios are also to become a constant component of the com- pany’s own risk and solvency assessment process (ORSA). After the expansion of the risk catalogue to include ESG risks, the process of identifying these risks will take place with the respective departments. To meet future regulato- ry requirements, work will also be done next year to inte- grate sustainability risks into the reporting framework. The risk management process in terms of sustainability with regard to UNIQA’s investment portfolio will also be improved in the coming year. The results of the ESG risk assessment are intended on the one hand to fulfil regula- tory requirements and on the other hand to support man- agement decisions about designing new products or about the company’s investment strategy. Exposure to ESG risks is a new performance characteristic and also a growth driver in the current environment. These have therefore become more significant for both investors and customers. Good ESG performance is de- fined, among other things, by a lower future cost of capital, as the company is more resilient to long-term risks. As a composite insurer, UNIQA has long-term obligations, which is why a long-term perspective must be considered. The results of the own-risk assessment show that climate risks can have an impact on both investments and tech- nical provisions. UNIQA has a system for evaluating the materiality of individual risks on the relevant balance sheet items with the aim of integrating the sustainability impacts into this existing materiality concept. UNIQA will therefore have a strong focus on the further development and management of climate risks in future, with the clear idea of identifying the need for adjustments in corporate planning and strategy in good time. Full internal model The further development of the partial internal model to a full internal model is one of the most important projects from a risk management perspective. In this way, UNIQA aims to more adequately reflect its own risk profile. This project will last several years. In 2021, the main focus was on developing the model. In 2022, the first model runs of the individual risk modules will take place. Work is also underway on the first validations and the lessons learned. During the year, several feedback loops between employ- ees and advisers are planned from the project perspective. Another important goal is to produce a draft of the docu- mentation necessary for approval of the model. In 2022 there will also be on-site audits by the Financial Market Authority. The objective is to obtain official approval of the full internal model by the end of 2023. 142 Further development of the internal model Building on the expertise gained through the development of the partial internal model, it was decided to take further steps to expand the risk model into a full internal model. In the medium term, this internal model is to be approved by the regulator and used to determine the capital re- quirement ratio. The objective is to use the internal model to depict UNIQA’s specific risk situation more adequately than via the standard model and to take it into account in risk management accordingly. Another advantage of an internal model is that it is less vulnerable to future regula- tory adjustments to the Solvency II standard model. If approved, this would make UNIQA the first Austrian in- surance group to have a full internal model. The multi- year project started in 2021 with an initial development phase. GRC tool rollout UNIQA has been working intensively on expanding the concept of its internal control system (ICS) in recent years. A Governance, Risk & Compliance (GRC) tool was introduced in order to support implementation of the ICS through the systems. The GRC tool is used as a central element in managing operational risk. Rolling it out across the entire Group was one of the focal points and challeng- es in 2021. The focus was on training the staff in the new system on the one hand, and on migrating the data on the other. The full rollout within the Group should be com- pleted by the end of 2022. 43. Challenges and priorities in risk management f or 2022 Environmental Social Governance (ESG) The topic of sustainability was already of very high im- portance for UNIQA last year. The focus for risk manage- ment is particularly on managing and handling sustaina- bility risks. In 2022, we will therefore work hard to meas- ure the long-term climate scenarios and try to drive fur- ther progress and improvements here. The climate scenar- ios are also to become a constant component of the com- pany’s own risk and solvency assessment process (ORSA). After the expansion of the risk catalogue to include ESG risks, the process of identifying these risks will take place with the respective departments. To meet future regulato- ry requirements, work will also be done next year to inte- grate sustainability risks into the reporting framework. The risk management process in terms of sustainability with regard to UNIQA’s investment portfolio will also be improved in the coming year. The results of the ESG risk assessment are intended on the one hand to fulfil regula- tory requirements and on the other hand to support man- agement decisions about designing new products or about the company’s investment strategy. Exposure to ESG risks is a new performance characteristic and also a growth driver in the current environment. These have therefore become more significant for both investors and customers. Good ESG performance is de- fined, among other things, by a lower future cost of capital, as the company is more resilient to long-term risks. As a composite insurer, UNIQA has long-term obligations, which is why a long-term perspective must be considered. The results of the own-risk assessment show that climate risks can have an impact on both investments and tech- nical provisions. UNIQA has a system for evaluating the materiality of individual risks on the relevant balance sheet items with the aim of integrating the sustainability impacts into this existing materiality concept. UNIQA will therefore have a strong focus on the further development and management of climate risks in future, with the clear idea of identifying the need for adjustments in corporate planning and strategy in good time. Full internal model The further development of the partial internal model to a full internal model is one of the most important projects from a risk management perspective. In this way, UNIQA aims to more adequately reflect its own risk profile. This project will last several years. In 2021, the main focus was on developing the model. In 2022, the first model runs of the individual risk modules will take place. Work is also underway on the first validations and the lessons learned. During the year, several feedback loops between employ- ees and advisers are planned from the project perspective. Another important goal is to produce a draft of the docu- mentation necessary for approval of the model. In 2022 there will also be on-site audits by the Financial Market Authority. The objective is to obtain official approval of the full internal model by the end of 2023. 143 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Security & Resilience Management Companies are increasingly exposed to a range of security risks, from data theft to ransomware and distributed deni- al of service (DDoS) attacks. UNIQA has planned a strong focus on these topics for 2022 and will implement corre- sponding measures. UNIQA’s assets that are relevant to its business operations will be identified and classified ac- cording to their need for protection. An example would be IT applications and their required IT infrastructure, data centres and key personnel needed to keep them running. One focus in 2022 will be to address the identified vulner- abilities as part of a Group-wide, centrally coordinated IT security programme. The security programme will cover the internally developed framework of security require- ments and the security controls already implemented along with any shortfalls. 44. Risk profile UNIQA’s risk profile is very heavily influenced by the life and health insurance portfolios of UNIQA Österreich Versicherungen AG. This situation means that market risk plays a central role in UNIQA’s risk profile. The Group companies in Central Europe operate in the property and casualty business lines as well as in the life and health insurance business lines. In the CEE region, the property and casualty sectors are the most dominant. This structure is important to UNIQA, because it offers a high level of diversification from the life and health insur- ance lines that dominate in the Austrian companies. The distinctive risk features of the regions are also reflected in the risk profiles determined by using the in- ternal measurement approach. Market and credit risk The strength of the market and credit risks depends on the structure of the capital investment and its allocation to the different asset categories. The table below shows invest- ments classified by asset category. Asset allocation In € thousand 31/12/2021 31/12/2020 Fixed-income securities 16,021,778 17,577,469 Real estate assets 1,241,860 1,219,213 Pension fund 2,059,540 1,373,557 Equity investments and other stocks 815,421 822,476 Shares and equity funds 1,224,155 840,135 Time deposits 272,172 279,315 Other investments 150,051 207,077 Total 21,784,976 22,319,241 However, the market and credit risks not only have an impact on the value of investments, but also influence the level of technical liabilities. Thus, there is – particularly in life insurance – a dependence between the (price) growth of assets and liabilities from insurance contracts. UNIQA manages the income expectations and risks of assets and liabilities arising from insurance contracts as part of the asset liability management (ALM) process. The objective is to ensure sufficient liquidity while retaining the greatest possible security and balanced risk in order to achieve a return on capital that is sustainably higher than the guar- anteed performance of the technical liabilities. To do this, assets and liabilities are allocated to different accounting groups. The following two tables show the main accounting groups generated by the various product categories. Assets In € thousand 31/12/2021 31/12/2020 Long-term life insurance contracts with guaranteed interest and profit participation 12,414,127 12,565,453 Long-term unit-linked and index-linked life insurance contracts 5,154,053 4,238,569 Long-term health insurance contracts 4,444,807 4,434,179 Short-term property and casualty insurance contracts 5,814,056 5,577,045 Total 27,827,042 26,815,246 Consolidated Financial Statements 144 These values refer to the following items:  Land and buildings for own use  Investment property  Financial assets accounted for using the equity method  Other investments  Unit-linked and index-linked life insurance investments  Cash T echnical provisions and liabilities (net) In € thousand 31/12/2021 31/12/2020 Long-term life insurance contracts with guaranteed interest and profit participation 10,979,313 11,243,000 Long-term unit-linked and index-linked life insurance contracts 5,028,507 4,208,512 Long-term health insurance contracts 3,813,196 3,519,993 Short-term property and casualty insurance contracts 3,891,198 3,147,659 Total 23,712,214 22,119,164 These values refer to the following items:  Technical provisions  Technical provisions for unit-linked and index-linked life insurance  Reinsurance liabilities (only securities account liabilities from reinsurance ceded)  Reinsurers’ share of technical provisions  Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance The market and credit risk is broken down into interest rate, credit spread, equity, currency and market concen- tration risk. The i nterest rate risk arises on all asset and liability items of the statement of financial position whose value fluctu- ates as a result of changes in risk-free yield curves or asso- ciated volatility. Given the high proportion of interest- bearing securities in the assets, interest rate risk forms an important part of market risk. The interest rate risk is actively managed as part of the ALM-based investment strategy. The following table shows the maturity structure of fixed- income securities. Exposure by term In € thousand 31/12/2021 31/12/2020 Up to 1 year 908,460 975,698 More than 1 year up to 3 years 1,481,601 1,668,822 More than 3 years up to 5 years 2,369,538 2,307,840 More than 5 years up to 7 years 2,521,545 2,579,998 More than 7 years up to 10 years 2,259,623 2,863,478 More than 10 years up to 15 years 2,640,465 2,635,322 More than 15 years 3,840,546 4,546,309 Total 16,021,779 17,577,469 In comparison with this, the next table shows the insur- ance provision before reinsurance in health and life insur- ance and the gross provision for unsettled claims in non- life insurance, broken down into annual brackets. In health and life insurance the breakdown takes place using expected cash flows from the ALM process. IFRS reserve by expected maturity date In € thousand 31/12/2021 31/12/2020 Up to 1 year 1,244,623 1,015,663 More than 1 year up to 3 years 1,244,715 1,122,053 More than 3 years up to 5 years 1,194,601 1,290,754 More than 5 years up to 7 years 1,002,338 1,074,151 More than 7 years up to 10 years 1,556,280 1,453,751 More than 10 years up to 15 years 2,167,754 2,233,169 More than 15 years 8,170,662 8,002,000 Total 16,580,974 16,191,540 Since the interest rate risk is particularly relevant in life insurance as a result of the long-term liabilities, the focus below is placed on this segment. Using UNIQA Österreich Versicherungen AG as an example, the average interest rate sensitivity of life insurance in the event of a change in interest rates of +/ –50 basis points for the assets is €479.7 million and that of liabilities is €602.0 million. The difference between these two values is used as the control basis for the interest rate risk or the duration gap. During the annual ALM process, it is determined from a strategic point of view which budgets for interest rate risk can be accepted at the operating company level. 144 These values refer to the following items:  Land and buildings for own use  Investment property  Financial assets accounted for using the equity method  Other investments  Unit-linked and index-linked life insurance investments  Cash T echnical provisions and li abilities (net) In € thousand 31/12/2021 31/12/2020 Long-term life insurance contracts with guaranteed interest and profit participation 10,979,313 11,243,000 Long-term unit-linked and index-linked life insurance contracts 5,028,507 4,208,512 Long-term health insurance contracts 3,813,196 3,519,993 Short-term property and casualty insurance contracts 3,891,198 3,147,659 Total 23,712,214 22,119,164 These values refer to the following items:  Technical provisions  Technical provisions for unit-linked and index-linked life insurance  Reinsurance liabilities (only securities account liabilities from reinsurance ceded)  Reinsurers’ share of technical provisions  Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance The market and credit risk is broken down into interest rate, credit spread, equity, currency and market concen- tration risk. The i nterest rate risk arises on all asset and liability items of the statement of financial position whose value fluctu- ates as a result of changes in risk-free yield curves or asso- ciated volatility. Given the high proportion of interest- bearing securities in the assets, interest rate risk forms an important part of market risk. The interest rate risk is actively managed as part of the ALM-based investment strategy. The following table shows the maturity structure of fixed- income securities. Exposure by term In € thousand 31/12/2021 31/12/2020 Up to 1 year 908,460 975,698 More than 1 year up to 3 years 1,481,601 1,668,822 More than 3 years up to 5 years 2,369,538 2,307,840 More than 5 years up to 7 years 2,521,545 2,579,998 More than 7 years up to 10 years 2,259,623 2,863,478 More than 10 years up to 15 years 2,640,465 2,635,322 More than 15 years 3,840,546 4,546,309 Total 16,021,779 17,577,469 In comparison with this, the next table shows the insur- ance provision before reinsurance in health and life insur- ance and the gross provision for unsettled claims in non- life insurance, broken down into annual brackets. In health and life insurance the breakdown takes place using expected cash flows from the ALM process. IFRS reserve by expected m aturity date In € thousand 31/12/2021 31/12/2020 Up to 1 year 1,244,623 1,015,663 More than 1 year up to 3 years 1,244,715 1,122,053 More than 3 years up to 5 years 1,194,601 1,290,754 More than 5 years up to 7 years 1,002,338 1,074,151 More than 7 years up to 10 years 1,556,280 1,453,751 More than 10 years up to 15 years 2,167,754 2,233,169 More than 15 years 8,170,662 8,002,000 Total 16,580,974 16,191,540 Since the interest rate risk is particularly relevant in life insurance as a result of the long-term liabilities, the focus below is placed on this segment. Using UNIQA Österreich Versicherungen AG as an example, the average interest rate sensitivity of life insurance in the event of a change in interest rates of +/ –50 basis points for the assets is €479.7 million and that of liabilities is €602.0 million. The difference between these two values is used as the control basis for the interest rate risk or the duration gap. During the annual ALM process, it is determined from a strategic point of view which budgets for interest rate risk can be accepted at the operating company level. 145 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS The discount rate that may be used in the costing when new business is written in most UNIQA companies takes into account a maximum discount rate imposed by the relevant local supervisory authority. In all those countries in which the maximum permissible discount rate is not imposed in this way, appropriate prudent, market-based assumptions are made by the actuaries responsible for the calculation. In our core market of Austria, the maximum permissible interest rate will be 0 per cent per annum from 1 July 2022. However, the portfolio also includes older contracts with different discount rates. In the rele- vant markets of the UNIQA Group, these rates amount to as much as 4 per cent per year. The following table pro- vides an overview of the average technical discount rates by region and currency. Average technical discount rates, core business by region and currency In per cent EUR USD Local currency Austria (AT) 2.1 Central Europe (CE) 3.2 2.9 Eastern Europe (EE) 3.4 3.5 3.1 Southeastern Europe (SEE) 2.1 1.5 0.4 Russia (RU) 2.3 2.3 3.9 As these interest rates are guaranteed by the insurance company, the financial risk lies in not being able to gener- ate these returns. Since classic life insurance business predominantly invests in interest-bearing securities, the unpredictability of long-term interest rate trends is the most significant financial risk for a life insurance compa- ny. Investment and reinvestment risk arises from the fact that premiums received in the future must be invested to achieve the rate of return guaranteed when a policy is written. However, it is entirely possible that no appropri- ate securities will be available at the time the premium is received. Likewise, future income must be reinvested to achieve a return equivalent to at least the original discount rate. For this reason, UNIQA has already decided to only offer products in its key markets that are based on a low or zero discount rate. One example of this in Austria is the sale of deferred pension products with a discount rate of 0 per cent. The c redit spread risk refers to the risk of changes in the price of asset or liability items in the financial statement, as a consequence of changes in credit risk premiums or associated volatility, and is ascertained for individual se- curities in accordance with their rating and duration. When investing in securities, UNIQA chooses securities with a wide variety of ratings, taking into consideration the potential risks and returns. The following table shows the credit quality of those fixed- income securities that are neither overdue nor written down, based on their ratings. Exposure by rating In € thousand 31/12/2021 31/12/2020 AAA 3,117,422 3,704,679 AA 4,112,915 4,337,744 A 4,714,695 4,957,442 BBB 2,708,020 3,051,150 BB 403,258 397,365 B 314,606 317,206 ≤ CCC 11,773 1 Not rated 639,089 811,881 Total 16,021,778 17,577,469 E quity risk arises from movements in the value of equities and similar investments as a result of fluctuations in in- ternational stock markets, and therefore, stems in particu- lar from the asset categories “Equity investments and other stocks” and “Equities”. The effective equity weighting is controlled by hedging with the selective use of derivative financial instruments. F oreign currency risk is caused by fluctuations in ex- change rates and associated volatility. Given the interna- tional nature of the insurance business, UNIQA invests in securities denominated in different currencies, thus fol- lowing the principle of ensuring matching liabilities with assets in the same currency to cover liabilities at the cov- erage fund or company level. Despite the selective use of derivative financial instruments for hedging purposes, it is not always possible on cost grounds or from an investment point of view to achieve complete and targeted currency matching between the assets and liabilities. The following tables show a breakdown of assets and liabilities by cur- rency. Consolidated Financial Statements 146 Currency risk 31/12/2021 In € thousand Assets Provisions and liabilities EUR 24,569,387 22,541,840 USD 572,248 367,172 CZK 1,450,892 1,238,123 HUF 457,405 365,382 PLN 3,035,889 2,550,947 RON 340,731 231,992 Other 1,121,230 929,041 Total 31,547,783 28,224,497 Currency risk 31/12/2020 In € thousand Assets Provisions and liabilities EUR 25,405,823 23,317,599 USD 307,258 130,128 CZK 1,372,728 1,009,002 HUF 461,516 573,488 PLN 3,017,455 2,343,060 RON 289,071 203,474 Other 1,046,284 877,670 Total 31,900,133 28,454,421 In addition to figures from the established market and credit risk models (MCEV, SCR, etc.), stress tests and sen- sitivity analyses are used to measure and manage market and credit risk and their components. The following tables show the most important market risks in the form of key sensitivity figures, along with their impact on equity and profit/(loss) for the period. Depend- ing on the measurement principle to be applied, any future losses from the measurement at fair value may result in different fluctuations in profit/(loss) for the period or in other comprehensive income. The key figures are calculat- ed theoretically on the basis of actuarial principles and do not take into consideration any diversification effects between the individual market risks or countermeasures taken in the various market scenarios. Sensitivities for other investments are determined by simulating each scenario for each individual item, keeping all other parameters constant in each case. Market value changes that have no effect on the balance sheet include reclassified bonds and loans in the case of interest rate and credit spread risk. Interest rate risk 31/12/2021 31/12/2020 1) In € thousand + 50 basis points –50 basis points + 50 basis points –50 basis points Government bonds –484,651 548,866 –564,293 633,667 Corporate bonds (incl. covered) –176,478 189,139 –198,932 207,914 Other –65,832 76,753 –32,159 38,838 Total –726,962 814,759 –795,383 880,419 Of which income statement –1,358 5,082 3,179 194 Of which equity –725,603 809,678 –798,563 880,225 Credit spread risk 31/12/2021 31/12/2020 1) In € thousand + 50 basis points + 50 basis points Income statement –374 503 Equity –785,327 –877,721 Total –785,701 –877,218 Equity risk 31/12/2021 31/12/2020 1) In € thousand –25% –25% Income statement –4,098 –33,160 Equity –301,161 –166,949 Total –305,259 –200,110 1) The adjustment to the sensitivity calculation was made as a result of the changed market environment and in line with current market practice. 146 Currency risk 31/12/2021 In € thousand Assets Provisions and liabilities EUR 24,569,387 22,541,840 USD 572,248 367,172 CZK 1,450,892 1,238,123 HUF 457,405 365,382 PLN 3,035,889 2,550,947 RON 340,731 231,992 Other 1,121,230 929,041 Total 31,547,783 28,224,497 Currency risk 31/12/2020 In € thousand Assets Provisions and liabilities EUR 25,405,823 23,317,599 USD 307,258 130,128 CZK 1,372,728 1,009,002 HUF 461,516 573,488 PLN 3,017,455 2,343,060 RON 289,071 203,474 Other 1,046,284 877,670 Total 31,900,133 28,454,421 In addition to figures from the established market and credit risk models (MCEV, SCR, etc.), stress tests and sen- sitivity analyses are used to measure and manage market and credit risk and their components. The following tables show the most important market risks in the form of key sensitivity figures, along with their impact on equity and profit/(loss) for the period. Depend- ing on the measurement principle to be applied, any future losses from the measurement at fair value may result in different fluctuations in profit/(loss) for the period or in other comprehensive income. The key figures are calculat- ed theoretically on the basis of actuarial principles and do not take into consideration any diversification effects between the individual market risks or countermeasures taken in the various market scenarios. Sensitivities for other investments are determined by simulating each scenario for each individual item, keeping all other parameters constant in each case. Market value changes that have no effect on the balance sheet include reclassified bonds and loans in the case of interest rate and credit spread risk. Interest rate risk 31/12/2021 31/12/2020 1) In € thousand + 50 basis points –50 basis points + 50 basis points –50 basis points Government bonds –484,651 548,866 –564,293 633,667 Corporate bonds (incl. covered) –176,478 189,139 –198,932 207,914 Other –65,832 76,753 –32,159 38,838 Total –726,962 814,759 –795,383 880,419 Of which income statement –1,358 5,082 3,179 194 Of which equity –725,603 809,678 –798,563 880,225 Credit spread risk 31/12/2021 31/12/2020 1) In € thousand + 50 basis points + 50 basis points Income statement –374 503 Equity –785,327 –877,721 Total –785,701 –877,218 Equity risk 31/12/2021 31/12/2020 1) In € thousand –25% –25% Income statement –4,098 –33,160 Equity –301,161 –166,949 Total –305,259 –200,110 1) The adjustment to the sensitivity calculation was made as a result of the changed market environment and in line with current market practice. 147 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Currency risk 31/12/2021 31/12/2020 In € thousand 10% –10% 10% –10% PLN 128,226 –128,015 146,247 –146,247 USD 57,494 –57,227 14,494 –40,788 CZK 64,740 –64,753 65,034 –65,098 RUB 24,046 –24,046 22,491 –22,491 HUF 14,479 –14,479 16,112 –16,112 Other 57,479 –57,479 43,532 –46,942 Total 346,464 –346,000 307,910 –337,678 Of which income statement 323,681 –323,554 183,189 –217,999 Of which equity 22,783 –22,446 124,721 –119,679 In l ife insurance the interest rate assumptions are the crucial influencing factor on the liability adequacy test and deferred acquisition costs. The impact of the implied new funds assumption (including reinvestment) is therefore stated below. If new funds are assumed with a + 100 bp increase, then the resulting net effect (after accounting for the deferred profit participation) amounts to €8 million. A –100 bp reduction in this assumption results in a net effect of € –10 million. The effects described relate to the changes in deferred acquisition costs along with the impact on the liability adequacy test. The results were determined using the traditional business in Austria which makes up the majority of insurance provision in the Group. In n on-life insurance, the provision for unsettled claims is formed based on reported claims and applying accepted statistical methods. One crucial assumption here is that the pattern of claims observed from the past can be sensi- bly extrapolated for the future. Additional adjustments need to be made in cases where this assumption is not possible. The calculation of claim provisions is associated with un- certainty based on the time required to process claims. In addition to the normal chance risk, there are also other factors that may influence the future processing of the claims that have already occurred. In particular, the re- serving process for court damages in property and casualty insurance should be mentioned here. A reserve estimate is prepared here for these damages based on expert assess- ment, although this estimate can be exposed to high levels of volatility specifically with major damage at the start of the process for collecting court costs. The partial internal model in property and casualty insur- ance is a suitable instrument for quantifying the volatility involved in processing. Pursuant to analysis of these mod- el results, it was determined that a deviation of 5 per cent from the basic provision calculated may represent a realis- tic scenario. Based on the current provision for unsettled claims of €3,254 million (excluding additional provisions such as provisions for claim settlement) in the Group on a gross basis, this would mean an increase in claims in- curred by €163 million. Consolidated Financial Statements 148 Health insurance similar to life technique is now also affected by the period of low interest rates. Since 1 July 2021 only tariffs with the 0.5 per cent discount rate are being sold. That fact, together with the tariffs sold in 2018 at the discount rate of 1 per cent, further reduces the aver- age discount rate. A reduction in the capital earnings by 100 bp (based on 2020 investment results) would reduce the earnings before taxes by €41 million. Liquidity risk Ongoing liquidity planning takes place in order to ensure that UNIQA is able to meet its payment obligations over the next twelve months. Obligations with a term of more than twelve months are covered by investments with matching maturities as far as possible within the framework of the ALM process and the strategic guidelines. In addition, a majority of the securi- ties portfolio is listed in liquid markets and can be sold quickly and without significant markdowns if cash is re- quired. There are underwriting obligations mainly in the form of funds from holdings in healthcare and investments in private debt, as well as in the infrastructure sector, amounting to €794,770 thousand (2020: €574,187 thousand). Financial liabilities Contractual maturities at 31 December 2021 In € thousand Liabilities from bonds and loans Derivative financial instruments Lease liabilities Total 2022 8,250 10,015 10,502 28,767 2023 8,250 0 9,026 17,276 2024 8,250 0 7,497 15,747 2025 8,250 0 10,877 19,127 2026 8,250 0 5,174 13,424 > 2027 633,000 11,828 60,154 704,982 Financial liabilities Contractual maturities at 31 December 2020 In € thousand Liabilities from bonds and loans Derivative financial instruments Lease liabilities Total 2021 19,348 1,617 14,210 35,174 2022 8,250 13 11,051 19,314 2023 8,250 278 9,601 18,129 2024 8,250 0 7,393 15,643 2025 8,250 0 6,936 15,186 > 2026 641,250 0 34,891 676,141 Subordinated liabilities Contractual maturities at 31 December 2021 In € thousand Notional amount 1) Coupon payments Total 2022 0 45,207 45,207 2023 148,700 45,207 193,907 2024 0 34,984 34,984 2025 200,000 34,984 234,984 2026 326,300 28,484 354,784 > 2027 375,000 44,531 419,531 1) Contractual maturities based on the first possible termination date 148 Health insurance similar to life technique is now also affected by the period of low interest rates. Since 1 July 2021 only tariffs with the 0.5 per cent discount rate are being sold. That fact, together with the tariffs sold in 2018 at the discount rate of 1 per cent, further reduces the aver- age discount rate. A reduction in the capital earnings by 100 bp (based on 2020 investment results) would reduce the earnings before taxes by €41 million. Liquidity risk Ongoing liquidity planning takes place in order to ensure that UNIQA is able to meet its payment obligations over the next twelve months. Obligations with a term of more than twelve months are covered by investments with matching maturities as far as possible within the framework of the ALM process and the strategic guidelines. In addition, a majority of the securi- ties portfolio is listed in liquid markets and can be sold quickly and without significant markdowns if cash is re- quired. There are underwriting obligations mainly in the form of funds from holdings in healthcare and investments in private debt, as well as in the infrastructure sector, amounting to €794,770 thousand (2020: €574,187 thousand). Financial liabilities C ontractual maturities at 31 December 2021 In € thousand Liabilities from bonds and loans Derivative financial instruments Lease liabilities Total 2022 8,250 10,015 10,502 28,767 2023 8,250 0 9,026 17,276 2024 8,250 0 7,497 15,747 2025 8,250 0 10,877 19,127 2026 8,250 0 5,174 13,424 > 2027 633,000 11,828 60,154 704,982 Financial liabilities C ontractual maturities at 31 December 2020 In € thousand Liabilities from bonds and loans Derivative financial instruments Lease liabilities Total 2021 19,348 1,617 14,210 35,174 2022 8,250 13 11,051 19,314 2023 8,250 278 9,601 18,129 2024 8,250 0 7,393 15,643 2025 8,250 0 6,936 15,186 > 2026 641,250 0 34,891 676,141 Subordinated liabilities C ontractual maturities at 31 December 2021 In € thousand Notional amount 1) Coupon payments Total 2022 0 45,207 45,207 2023 148,700 45,207 193,907 2024 0 34,984 34,984 2025 200,000 34,984 234,984 2026 326,300 28,484 354,784 > 2027 375,000 44,531 419,531 1) Contractual maturities based on the first possible termination date 149 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Subordinated liabilities Contractual maturities at 31 December 2020 In € thousand Notional amount 1) Coupon payments Total 2021 0 60,563 60,563 2022 0 60,563 60,563 2023 350,000 60,563 410,563 2024 0 36,500 36,500 2025 200,000 36,500 236,500 > 2026 500,000 30,000 530,000 1) Contractual maturities based on the first possible termination date Concentration risks UNIQA strives to keep c oncentration risks as low as pos- sible. These could arise, for example, from the transfer of insur- ance business to individual reinsurance companies to an inappropriate extent. This can have a material influence on UNIQA’s result in case of late payment (or non- payment) by an individual reinsurer. UNIQA controls such risks with an internal reinsurance company that is respon- sible for selecting external reinsurance parties, taking into account strict guidelines for avoiding material concentra- tion risks. However, concentration risk can also arise among other things from the composition of balance sheet items re- ported in the assets. Throughout the investment period, the company continuously checks to ensure that the in- vestment volumes in securities of individual issuers do not exceed certain limits in relation to the total investment volume, defined according to the respective credit rating. Underwriting risks The underwriting risks are divided into non-life, life and health insurance. The underwriting risk in n on-life insurance is broken down into the three risk categories of premium, reserve and catastrophe risk. Premium risk is defined as the risk that future benefits and expenses in connection with insurance operations will exceed the premiums collected for the insurance con- cerned. Such a loss may also be caused in insurance opera- tions by exceptionally significant, but rare loss events, known as major claims or shock losses. Natural catastro- phes represent a further threat from events that are infre- quent but that nevertheless cause substantial losses. This risk includes financial losses caused by natural hazards, such as floods, storms, hail or earthquakes. In contrast to major individual claims, insurance companies in this case refer to cumulative losses. Reserve risk refers to the risk that technical provisions recognised for claims that have already occurred will turn out to be inadequate. The loss in this case is referred to as settlement loss. The claim reserve is calculated using actu- arial methods. External factors, such as changes in the amount or frequency of claims, legal decisions, repair and/or handling costs, can lead to differences compared with the estimate. To counter and actively manage these risks, UNIQA runs a number of processes integrated into its insurance opera- tions. For example, a Group Policy specifies that new products may only be launched if they satisfy certain prof- itability criteria. Major claims and losses from natural catastrophes are appropriately managed by means of spe- cial risk management in the underwriting process (pri- marily in corporate activities) and by the provision of suitable reinsurance capacity. In connection with claim reserves, guidelines also specify the procedures to be followed by local units when recog- nising such reserves in accordance with IFRSs. A quarterly monitoring system and an internal review process safeguard the quality of the reserves recognised in the whole of the Group. An essential element in risk assessment and further risk management is the use of the non-life partial model. This risk model uses stochastic simulations to quantify the risk capital requirement for each risk category at both compa- ny and Group levels. Consolidated Financial Statements 150 In 2021, the entities acquired by AXA in Poland, the Czech Republic and Slovakia were integrated into the Group model. In l ife insurance, the underwriting risk is generally de- fined as the risk of loss or adverse developments affecting the value of insurance liabilities. It is divided into the cat- egories of mortality, longevity, disability-morbidity, lapse, expense, revision and catastrophe risk. The mortality risk depends on possible fluctuations in mortality rates due to an increase in deaths which would have an adverse effect on the expected benefits to pay on risk insurance policies. Longevity risk refers to the adverse effects of random fluctuations in mortality rates due to a decline in the mor- tality rate. The insurer is thereby exposed to the risk that the anticipated life expectancy in the calculation of the premium will be exceeded in reality and that the expendi- ture for pension payments will be higher than planned. The disability-morbidity risk is caused by possible adverse fluctuations in disability, sickness and morbidity rates compared to what they were at the time the premium was calculated. The lapse risk arises from the fluctuations in policy can- cellation, termination, renewal, capital selection and sur- render rates of insurance policies. Overall, it represents the uncertainty regarding customer behaviour. The expense risk refers to adverse effects due to fluctua- tions in the administrative costs of insurance and reinsur- ance contracts. The revision risk results from fluctuations in the revision rates for annuities due to changes in the legal environ- ment. The catastrophe risk results from significant uncertainty in relation to pricing and the assumptions made in the creation of provisions for extreme/exceptional events. The most relevant risk in this context is an immediate dra- matic increase in mortality rates: in this case, death bene- fits in the risk portfolio could not be fully financed by the risk premium collected. In the context of life insurance, the main techniques for risk mitigation are the adjustment of future profit partici- pations or a corresponding premium adjustment as well as additional reinsurance policies, which are carried out in compliance with legal and contractual framework condi- tions. These measures are crucial for the underlying risk models and contain detailed information and regulations, particularly with regard to profit participation. In prac- tice, profitable new business supports the risk-bearing capacity of the existing portfolio, whereby careful risk selection (e.g. health checks) and cautiously chosen calcu- lation principles for premiums are essential cornerstones when designing products. By including premium adjust- ment clauses, the potential to reduce risk can be improved, especially in the risk and occupational disability portfolio. The h ealth insurance business is operated primarily in Austria. As a result, risk management in this line focuses mainly on Austria. Health insurance is a loss insurance which is calculated under consideration of biometric risks and is operated in Austria mainly according to the similar to life technique. The main techniques for risk mitigation in health insur- ance are the adjustment of future profit participations and the premium adjustment which is carried out in compli- ance with legal and contractual framework conditions. These measures are crucial for the underlying risk models and contain detailed information and regulations, particu- larly with regard to profit participation. In practice, classic risk-mitigation techniques are also relevant here. 150 In 2021, the entities acquired by AXA in Poland, the Czech Republic and Slovakia were integrated into the Group model. In l ife insurance, the underwriting risk is generally de- fined as the risk of loss or adverse developments affecting the value of insurance liabilities. It is divided into the cat- egories of mortality, longevity, disability-morbidity, lapse, expense, revision and catastrophe risk. The mortality risk depends on possible fluctuations in mortality rates due to an increase in deaths which would have an adverse effect on the expected benefits to pay on risk insurance policies. Longevity risk refers to the adverse effects of random fluctuations in mortality rates due to a decline in the mor- tality rate. The insurer is thereby exposed to the risk that the anticipated life expectancy in the calculation of the premium will be exceeded in reality and that the expendi- ture for pension payments will be higher than planned. The disability-morbidity risk is caused by possible adverse fluctuations in disability, sickness and morbidity rates compared to what they were at the time the premium was calculated. The lapse risk arises from the fluctuations in policy can- cellation, termination, renewal, capital selection and sur- render rates of insurance policies. Overall, it represents the uncertainty regarding customer behaviour. The expense risk refers to adverse effects due to fluctua- tions in the administrative costs of insurance and reinsur- ance contracts. The revision risk results from fluctuations in the revision rates for annuities due to changes in the legal environ- ment. The catastrophe risk results from significant uncertainty in relation to pricing and the assumptions made in the creation of provisions for extreme/exceptional events. The most relevant risk in this context is an immediate dra- matic increase in mortality rates: in this case, death bene- fits in the risk portfolio could not be fully financed by the risk premium collected. In the context of life insurance, the main techniques for risk mitigation are the adjustment of future profit partici- pations or a corresponding premium adjustment as well as additional reinsurance policies, which are carried out in compliance with legal and contractual framework condi- tions. These measures are crucial for the underlying risk models and contain detailed information and regulations, particularly with regard to profit participation. In prac- tice, profitable new business supports the risk-bearing capacity of the existing portfolio, whereby careful risk selection (e.g. health checks) and cautiously chosen calcu- lation principles for premiums are essential cornerstones when designing products. By including premium adjust- ment clauses, the potential to reduce risk can be improved, especially in the risk and occupational disability portfolio. The h ealth insurance business is operated primarily in Austria. As a result, risk management in this line focuses mainly on Austria. Health insurance is a loss insurance which is calculated under consideration of biometric risks and is operated in Austria mainly according to the similar to life technique. The main techniques for risk mitigation in health insur- ance are the adjustment of future profit participations and the premium adjustment which is carried out in compli- ance with legal and contractual framework conditions. These measures are crucial for the underlying risk models and contain detailed information and regulations, particu- larly with regard to profit participation. In practice, classic risk-mitigation techniques are also relevant here. 151 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS For health insurance they include:  prudent setting of the discount rate at a level that is ex- pected to be earned in the long term;  risk selection, i.e. a targeted pre-selection of prospective customers for insurance products, for example through health checks;  careful selection of the termination rate probabilities (death and lapse) in order to calculate adequate premi- ums for the benefits to be expected;  the consideration of premium adjustment clauses in various health insurance products in order to be able to adjust premiums in line with changes in the calculation principles in case of changes in the expected values;  where necessary, reinsurance solutions are applied to partial portfolios. In addition to these classic risk mitigation techniques, an ongoing process for managing portfolios has been estab- lished. This process is carried out annually by determining and evaluating the need for rate adjustments. The effec- tiveness of the risk mitigation techniques described for the health business is assessed by comparing invoiced and actual benefits as well as by calculating contribution mar- gin calculations. Operational risk Operational risk includes losses that are caused by insuffi- cient or failed internal processes, as well as losses caused by systems, human resources or external events. The operational risk includes legal risk, but not reputation or strategic risk. Legal risk is the risk of uncertainty due to lawsuits or uncertainty in the applicability or interpreta- tion of contracts, laws or other legal requirements. At UNIQA, legal risks are monitored on an ongoing basis, and reports are made to the Group Management Board. UNIQA’s risk management process also defined the risk process for operational risks in terms of methodology, workflow and responsibilities. The risk manager is re- sponsible for compliance throughout all Group companies. A distinctive feature of operational risk is that it can sur- face in all processes and departments. This is why opera- tional risk is identified and evaluated in every operational company at a very broad level within UNIQA. Risks are identified with the help of a standardised risk catalogue that is regularly checked for completeness. According to international standards, UNIQA – as a finan- cial service provider – forms part of the critical infrastruc- ture of key importance to the national community. If this infrastructure were to fail or become impaired, it would cause considerable disruption to public safety and security or lead to other drastic consequences. As a rule, emergencies, crises and disasters are unexpected events for which it is impossible to plan, although systems and processes can be put in place to deal with such events. The systems and processes must then be treated as a spe- cial responsibility of management and must be dealt with professionally, efficiently and as quickly as possible. UNIQA has implemented a business continuity manage- ment system covering the issues of crisis prevention, crisis management and business recovery (including business emergency plans). The UNIQA BCM model is based on international rules and standards and is developed on a continuous basis. Emerging risk Emerging risk refers to newly arising or changing risks that are difficult to quantify and can have a significant impact on an organisation. Among the main drivers of the changing risk landscape are new economic, technological, socio-political and ecological developments and the in- creasing interdependencies between them, which may lead to a growing concentration of risk. In addition, a changing business environment – the further develop- ment of regulatory rules, the increased expectations of stakeholders and the shift in risk perception – must be taken into account. Reputational risk Reputational risk describes the risk of loss that arises because of possible damage to the company’s reputation, because of deterioration in prestige, or because of a nega- tive overall impression caused by negative perception by customers, business partners, shareholders or supervisory agencies. Reputational risks that occur in the course of core pro- cesses such as claim processing or advising and service quality are identified, evaluated and managed as opera- tional risks in the Group companies. Consolidated Financial Statements 152 Contagion risk Group risk management analyses whether the reputation risk observed in the Group or in another unit may occur, and whether the danger of “contagion” within the Group is possible. The analyses performed guard against contagion risk. Strategic risk Strategic risk refers to the risk that results from manage- ment decisions or insufficient implementation of man- agement decisions that may influence current or future income or solvency. This includes the risk that arises from management decisions that are inadequate because they ignore a changed business environment. Like operational and reputational risks, strategic risks are evaluated on an ongoing basis. 45. Reinsurance The Group Management Board determines, directly and indirectly, the strategic contents of its reinsurance policy with its decisions regarding risk and capital policy. The structure of the purchasing of external reinsurance is linked to the risk management process, thus enabling the risk capital to be relieved. Reinsurance structures support the continuous optimisa- tion of the required risk capital and the management of the use of this risk capital. Great importance is attached to the maximum use of diversification effects. Continuous analysis of reinsurance purchasing for efficiency charac- teristics is an essential component of internal risk management processes. UNIQA Re AG in Zurich, Switzerland, is responsible for the operational implementation of these tasks. It is re- sponsible for and guarantees the implementation of the reinsurance policy issued by the Group Management Board. UNIQA Re AG is available to all Group companies as the risk carrier for their reinsurance needs. The assessment of the exposure of the portfolios assumed by the Group companies is of central importance. Periodic risk assessments have been performed for years in the interest of a value-based management of the capital com- mitment. Extensive data are used to assess risk capital requirements for the units in question and their reinsur- ance programmes are structured in a targeted manner. For the property and casualty insurer, promises of per- formance for protection against losses resulting from natural hazards frequently represent by far the greatest stress on risk capital due to the volatile nature of such claims and the conceivable amount of catastrophic dam- ages. UNIQA has set up a specialised unit in order to deal with this problem. Exposure is constantly monitored and evaluated at the country and Group levels in cooperation with internal and external authorities. UNIQA substan- tially eases the pressure on its risk capital through the targeted utilisation of all applicable diversification effects and the launching of an efficient retrocession programme. UNIQA Re AG has assumed almost all of the UNIQA Group’s required reinsurance business ceded in the re- porting period. Only in the life insurance line was there a portion of the necessary cessions given directly to external reinsurance companies. The Group assumes reasonable deductibles in the retrocession programmes based on risk- and value-based approaches. 152 Contagion risk Group risk management analyses whether the reputation risk observed in the Group or in another unit may occur, and whether the danger of “contagion” within the Group is possible. The analyses performed guard against contagion risk. Strategic risk Strategic risk refers to the risk that results from manage- ment decisions or insufficient implementation of man- agement decisions that may influence current or future income or solvency. This includes the risk that arises from management decisions that are inadequate because they ignore a changed business environment. Like operational and reputational risks, strategic risks are evaluated on an ongoing basis. 45. Reinsurance The Group Management Board determines, directly and indirectly, the strategic contents of its reinsurance policy with its decisions regarding risk and capital policy. The structure of the purchasing of external reinsurance is linked to the risk management process, thus enabling the risk capital to be relieved. Reinsurance structures support the continuous optimisa- tion of the required risk capital and the management of the use of this risk capital. Great importance is attached to the maximum use of diversification effects. Continuous analysis of reinsurance purchasing for efficiency charac- teristics is an essential component of internal risk management processes. UNIQA Re AG in Zurich, Switzerland, is responsible for the operational implementation of these tasks. It is re- sponsible for and guarantees the implementation of the reinsurance policy issued by the Group Management Board. UNIQA Re AG is available to all Group companies as the risk carrier for their reinsurance needs. The assessment of the exposure of the portfolios assumed by the Group companies is of central importance. Periodic risk assessments have been performed for years in the interest of a value-based management of the capital com- mitment. Extensive data are used to assess risk capital requirements for the units in question and their reinsur- ance programmes are structured in a targeted manner. For the property and casualty insurer, promises of per- formance for protection against losses resulting from natural hazards frequently represent by far the greatest stress on risk capital due to the volatile nature of such claims and the conceivable amount of catastrophic dam- ages. UNIQA has set up a specialised unit in order to deal with this problem. Exposure is constantly monitored and evaluated at the country and Group levels in cooperation with internal and external authorities. UNIQA substan- tially eases the pressure on its risk capital through the targeted utilisation of all applicable diversification effects and the launching of an efficient retrocession programme. UNIQA Re AG has assumed almost all of the UNIQA Group’s required reinsurance business ceded in the re- porting period. Only in the life insurance line was there a portion of the necessary cessions given directly to external reinsurance companies. The Group assumes reasonable deductibles in the retrocession programmes based on risk- and value-based approaches. 153 CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS Approval for publication These consolidated financial statements were prepared by the Management Board as at the date of signing and approved for publication. Vienna, 9 March 2022 Andreas Brandstetter Chairman of the Management Board Peter Eichler Member of the Management Board Wolf-Christoph Gerlach Member of the Management Board Peter Humer Member of the Management Board Wolfgang Kindl Member of the Management Board René Knapp Member of the Management Board Erik Leyers Member of the Management Board Klaus Pekarek Member of the Management Board Kurt Svoboda Member of the Management Board Consolidated Financial Statements 154 Declaration of the legal representatives Pursuant to Section 82(4) of the Austrian Stock Exchange Act, the Management Board of UNIQA Insurance Group AG hereby confirms, that, to the best of our knowledge, the consolidated financial statements, which were prepared in accordance with the relevant accounting standards, give a true and fair view of the financial posi- tion, financial performance and cash flows of the Group, and that the Group management report describes the rele- vant risks and uncertainties which the Group faces. Vienna, 9 March 2022 Andreas Brandstetter Chairman of the Management Board Peter Eichler Member of the Management Board Wolf-Christoph Gerlach Member of the Management Board Peter Humer Member of the Management Board Wolfgang Kindl Member of the Management Board René Knapp Member of the Management Board Erik Leyers Member of the Management Board Klaus Pekarek Member of the Management Board Kurt Svoboda Member of the Management Board 154 Declaration of the legal representatives Pursuant to Section 82(4) of the Austrian Stock Exchange Act, the Management Board of UNIQA Insurance Group AG hereby confirms, that, to the best of our knowledge, the consolidated financial statements, which were prepared in accordance with the relevant accounting standards, give a true and fair view of the financial posi- tion, financial performance and cash flows of the Group, and that the Group management report describes the rele- vant risks and uncertainties which the Group faces. Vienna, 9 March 2022 Andreas Brandstetter Chairman of the Management Board Peter Eichler Member of the Management Board Wolf-Christoph Gerlach Member of the Management Board Peter Humer Member of the Management Board Wolfgang Kindl Member of the Management Board René Knapp Member of the Management Board Erik Leyers Member of the Management Board Klaus Pekarek Member of the Management Board Kurt Svoboda Member of the Management Board 155 KONZERNABSCHLUSS CONSOLIDATED FINANCIAL STATEMENTS We draw attention to the fact that the English translation of this auditor’s report according to section 274 UGB (Austrian Company Code) is presented for the convenience of the reader only and that the German wording is the only legally binding version. Auditor’s Report Report on the Consolidated Financial Statements A udit Opinion We have audited the consolidated financial statements of UNIQA Insurance Group AG, Vienna, and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at 31 December 2021, the consoli- dated income statement from 1 January until 31 December 2021, the consolidated statement of comprehensive in- come, the consolidated statement of cash flows and the consolidated statement of changes in equity for the finan- cial year then ended, and the notes to the consolidated financial statements. In our opinion, the accompanying consolidated financial statements comply with legal requirements and give a true and fair view of the financial position of the Group as at 31 December 2021, and of its financial performance and cash flows for the financial year then ended in accordance with International Financial Reporting Standards as adopted by the EU (IFRSs) and the additional regulations of section 245a Austrian Company Code and the supple- mentary provisions of section 138 para. 8 Austrian Insur- ance Supervision Act. Basis for Opinion We conducted our audit in accordance with Regulation (EU) No. 537/2014 (hereinafter EU Regulation) and Aus- trian Generally Accepted Standards on Auditing. Those standards require the application of the International Standards on Auditing (ISAs). Our responsibilities under those provisions and standards are further described in the “Auditor’s Responsibilities for the Audit of the Consol- idated Financial Statements” section of our report. We are independent of the Group in accordance with Austrian Generally Accepted Accounting Principles and profes- sional requirements, and we have fulfilled our other ethi- cal responsibilities in accordance with these require- ments. We believe that the audit evidence we have ob- tained until the date of the auditor’s report is sufficient and appropriate to provide a basis for our opinion by this date. Key Audit Matters Key audit matters are those matters that, in our profes- sional judgment, were of most significance in our audit of the consolidated financial statements of the financial year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have structured key audit matters as follows:  Description  Audit approach and key observations  Reference to related disclosures 1. Measurement of goodwill as well as of other intangi- ble assets  Description Goodwill in the amount of EUR 353,054k as well as intan- gible assets still under development in the amount of EUR 104,389k, which mainly relate to software development in the course of the renewal of the Group-wide IT systems, are tested for impairment at least once a year and addi- tionally whenever there is an indication for impairment. The impairment tests carried out for this purpose require the Management Board to make discretionary decisions, estimates and assumptions, which particularly includes budgeted cash flows in the individual cash-generating units, future market conditions, growth rates and capital costs. Changes in these assumptions as well as in the methods used may have a material impact on measure- ment. Due to the matter described, we considered the measure- ment of goodwill as well as of other intangible assets as a key audit matter in our audit. Consolidated Financial Statements 156  Audit approach and key observations We:  evaluated work flows and the measurement approach as well as tested selected key controls,  compared the accounting and measurement methods with the accounting provisions of IAS 38 and IAS 36,  examined whether the calculation method of the im- pairment test is appropriate and assessed the significant discretionary decisions and assumptions,  verified the derivation of the capital costs and juxtaposed it to a calculation we made ourselves and  compared the company planning approved by the Man- agement Board and Supervisory Board with the cash flows included in the impairment test, as well as  examined whether the respective disclosures in the notes were complete. The accounting and measurement methods applied are in accordance with IFRSs. We consider the underlying as- sumptions and measurement parameters to be plausible and reasonable.  Reference to related disclosures Refer to chapter “Use of discretionary decisions and esti- mates” under General information in the notes as well as “11. Intangible assets” in the notes to the consolidated financial statements 2. R efinancing of subordinated liabilities  Description In December of the financial year, UNIQA Insurance Group AG bought back two outstanding subordinated bonds at a total nominal amount of EUR 375 million in the capital market. The bonds were originally issued in Ju- ly 2013 with a first termination option for the Company in July 2023, and in July 2015 with a first termination option for the Company in July 2026. For the purposes of the partial buyback of the two bonds, additional refinancing costs in the form of call premiums were paid in the amount of EUR 65 million in the financial year and recorded as an expense in the financial year. In order to finance the partial buyback, a subordinated bond (Tier 2) was placed in the capital market at the same volume of EUR 375 million. Due to its material impact on the results, we considered this matter as a key audit matter in our audit.  Audit approach and key observations We:  obtained the Austrian Financial Market Authority’s ap- provals for the partial buyback of the two bonds and the issuing of the subordinated bond as well as the necessary internal organizational resolutions and approvals,  examined the presentation of the buyback of the two bonds and the financing costs incurring in this regard in the notes to the consolidated financial statements, and  examined the presentation of the newly issued bond as well as the related transaction cost in the notes to the consolidated financial statements. The accounting and measurement methods applied are in accordance with IFRSs. We consider the presentation of the above stated matter in the consolidated financial statements to be appropriate.  Reference to related disclosures Refer to chapter “Use of discretionary decisions and esti- mates” under General information in the notes as well as “25. Subordinated liabilities” in the notes to the consoli- dated financial statements Other Information Management is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements, the management report for the Group and our auditor’s report thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other infor- mation identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge ob- tained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other in- formation that we obtained prior to the date of this audi- 156  Audit approach and key observations We:  evaluated work flows and the measurement approach as well as tested selected key controls,  compared the accounting and measurement methods with the accounting provisions of IAS 38 and IAS 36,  examined whether the calculation method of the im- pairment test is appropriate and assessed the significant discretionary decisions and assumptions,  verified the derivation of the capital costs and juxtaposed it to a calculation we made ourselves and  compared the company planning approved by the Man- agement Board and Supervisory Board with the cash flows included in the impairment test, as well as  examined whether the respective disclosures in the notes were complete. The accounting and measurement methods applied are in accordance with IFRSs. We consider the underlying as- sumptions and measurement parameters to be plausible and reasonable.  Reference to related disclosures Refer to chapter “Use of discretionary decisions and esti- mates” under General information in the notes as well as “11. Intangible assets” in the notes to the consolidated financial statements 2. R efinancing of subordinated liabilities  Description In December of the financial year, UNIQA Insurance Group AG bought back two outstanding subordinated bonds at a total nominal amount of EUR 375 million in the capital market. The bonds were originally issued in Ju- ly 2013 with a first termination option for the Company in July 2023, and in July 2015 with a first termination option for the Company in July 2026. For the purposes of the partial buyback of the two bonds, additional refinancing costs in the form of call premiums were paid in the amount of EUR 65 million in the financial year and recorded as an expense in the financial year. In order to finance the partial buyback, a subordinated bond (Tier 2) was placed in the capital market at the same volume of EUR 375 million. Due to its material impact on the results, we considered this matter as a key audit matter in our audit.  Audit approach and key observations We:  obtained the Austrian Financial Market Authority’s ap- provals for the partial buyback of the two bonds and the issuing of the subordinated bond as well as the necessary internal organizational resolutions and approvals,  examined the presentation of the buyback of the two bonds and the financing costs incurring in this regard in the notes to the consolidated financial statements, and  examined the presentation of the newly issued bond as well as the related transaction cost in the notes to the consolidated financial statements. The accounting and measurement methods applied are in accordance with IFRSs. We consider the presentation of the above stated matter in the consolidated financial statements to be appropriate.  Reference to related disclosures Refer to chapter “Use of discretionary decisions and esti- mates” under General information in the notes as well as “25. Subordinated liabilities” in the notes to the consoli- dated financial statements Other Information Management is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements, the management report for the Group and our auditor’s report thereon. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated financial statements, our responsibility is to read the other infor- mation identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge ob- tained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed on the other in- formation that we obtained prior to the date of this audi- 157 KONZERNABSCHLUSS CONSOLIDATED FINANCIAL STATEMENTS tor’s report, we conclude that there is a material mis- statement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management and the Audit Com- mittee for the Consolidated Financial Statements Management is responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with International Financial Report- ing Standards as adopted by the EU (IFRSs) and the addi- tional regulations of section 245a Austrian Company Code and the supplementary provisions of section 138 para. 8 Austrian Insurance Supervision Act, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, man- agement is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going con- cern basis of accounting unless management either in- tends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. The Audit Committee is responsible for overseeing the Group’s financial reporting process. Auditor’s Responsibilities for the Audit of the Consoli- dated Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accord- ance with the EU Regulation and with Austrian Generally Accepted Standards on Auditing, which require the appli- cation of ISAs, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the ag- gregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with the EU Regulation and with Austrian Generally Accepted Standards on Audit- ing, which require the application of ISAs, we exercise professional judgment and maintain professional skepti- cism throughout the audit. We also:  identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures re- sponsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opin- ion. The risks of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of inter- nal control.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are ap- propriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.  evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and re- lated disclosures made by management.  conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast sig- nificant doubt on the Group’s ability to continue as a go- ing concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated fi- nancial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.  evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.  obtain sufficient appropriate audit evidence regarding the financial information of the entities or business ac- tivities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opin- ion. Consolidated Financial Statements 158 We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any signifi- cant deficiencies in internal control that we identify dur- ing our audit. We also provide the Audit Committee with a statement that we have complied with all relevant ethical require- ments regarding independence, and to communicate with them all relationships and other matters that may reason- ably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Audit Commit- tee, we determine those matters that were of most signifi- cance in the audit of the consolidated financial statements of the current period and are therefore the key audit mat- ters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public in- terest benefits of such communication. Report on Other Legal and Regulatory Requirements Comments on the Management Report for the Group Pursuant to Austrian Generally Accepted Accounting Principles, the management report for the Group is to be audited as to whether it is consistent with the consolidated financial statements and as to whether the management report for the Group was prepared in accordance with the applicable legal regulations. Management is responsible for the preparation of the management report for the Group in accordance with Austrian Generally Accepted Accounting Principles and the provisions of the Austrian Insurance Supervision Act. We conducted our audit in accordance with Austrian standards on auditing for the audit of the management report for the Group. Opinion In our opinion, the management report for the Group was prepared in accordance with the applicable legal regula- tions, comprising the details in accordance with section 243a UGB, and is consistent with the consolidated finan- cial statements. Statement Based on the findings during the audit of the consolidated financial statements and due to the obtained understand- ing concerning the Group and its circumstances no mate- rial misstatements in the management report for the Group came to our attention. 158 We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any signifi- cant deficiencies in internal control that we identify dur- ing our audit. We also provide the Audit Committee with a statement that we have complied with all relevant ethical require- ments regarding independence, and to communicate with them all relationships and other matters that may reason- ably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Audit Commit- tee, we determine those matters that were of most signifi- cance in the audit of the consolidated financial statements of the current period and are therefore the key audit mat- ters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public in- terest benefits of such communication. Report on Other Legal and Regulatory Requirements Comments on the Management Report for the Group Pursuant to Austrian Generally Accepted Accounting Principles, the management report for the Group is to be audited as to whether it is consistent with the consolidated financial statements and as to whether the management report for the Group was prepared in accordance with the applicable legal regulations. Management is responsible for the preparation of the management report for the Group in accordance with Austrian Generally Accepted Accounting Principles and the provisions of the Austrian Insurance Supervision Act. We conducted our audit in accordance with Austrian standards on auditing for the audit of the management report for the Group. Opinion In our opinion, the management report for the Group was prepared in accordance with the applicable legal regula- tions, comprising the details in accordance with section 243a UGB, and is consistent with the consolidated finan- cial statements. Statement Based on the findings during the audit of the consolidated financial statements and due to the obtained understand- ing concerning the Group and its circumstances no mate- rial misstatements in the management report for the Group came to our attention. 159 KONZERNABSCHLUSS CONSOLIDATED FINANCIAL STATEMENTS Additional Information in Accordance with Article 10 of the EU Regulation We were elected as statutory auditor at the ordinary gen- eral meeting dated 25 May 2020. We were appointed by the Supervisory Board on 30 November 2020. Besides that, we were elected as auditor for the following financial year by the ordinary general meeting on 31 May 2021 and appointed by the Supervisory Board on 6 December 2021. We have audited the Company for an uninterrupted period since 31 December 2013. We confirm that the audit opinion in the “Report on the Consolidated Financial Statements” section is consistent with the additional report to the Audit Committee re- ferred to in Article 11 of the EU Regulation. We declare that no prohibited non-audit services (Article 5 para. 1 of the EU Regulation) were provided by us and that we remained independent of the audited company in conducting the audit. Responsible Engagement Partner Responsible for the proper performance of the engage- ment is Mr. Werner Stockreiter, Austrian Certified Public Accountant. Vienna 9 March 2022 PwC Wirtschaftsprüfung GmbH Werner Stockreiter Austrian Certified Public Accountant signed This report is a translation of the original report in German, which is solely valid. Publication and sharing with third par- ties of the consolidated financial statements together with our auditor’s report is only allowed if the consolidated finan- cial statements and the management report for the Group are identical with the German audited version. This auditor’s report is only applicable to the German and complete consolidated financial statements with the management report for the Group. For deviating versions, the provisions of section 281 para. 2 UGB apply. Consolidated Financial Statements 160 Imprint Owner and publisher UNIQA Insurance Group AG Commercial registry no.: 92933t Concept, advice, editorial work and design Male Huber Friends GmbH / www.mhfriends.at Springer & Jacoby Österreich GmbH / sjaustria.com Translation and linguistic consulting ASI GmbH / www.asint.at Editorial deadline 31 March 2022 Contact UNIQA Insurance Group AG Investor Relations Untere Donaustrasse 21, 1029 Vienna, Austria Phone: (+43) 01 21175-3773 E-mail: investor.relations@UNIQA.at www.uniqagroup.com Information UNIQA’s Group Report is published in German and English and can be downloaded as a PDF file from the Investor Rela- tions section on our Group website. The interactive online version is also available at reports.uniqagroup.com. Clause regarding predictions about the future This report contains statements which refer to the future development of the UNIQA Group. 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 events may vary from the results currently expected. As a result, no guarantee can be provided for the informa- tion given. 161IMPRINT 162 www. uniqagroup.com