Governance Information • Apr 27, 2020
Governance Information
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ANNUAL FINANCIAL REPORT 2019 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 | 18 |
| Group Management Report | 24 |
| Consolidated Financial Statements | 44 |
| Segment Reporting | 53 |
| Notes to the Consolidated Financial Statements | 64 |
| Risk Report | 118 |
| Approval for publication | 133 |
| Declaration of the legal representatives | 134 |
| Audit Opinion | 135 |
Consolidated Corporate Governance Report
UNIQA has been committed to compliance with the Austrian Code of Corporate Governance since 2004 and publishes the declaration of conformity both in the Group report and on www.uniqagroup.com in the Investor Relations section. The Austrian Code of Corporate Governance is also publicly available at www.uniqagroup.com and www.corporate-governance.at.
The Corporate Governance Report and the Consolidated Corporate 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 Commercial Code.
Implementation and compliance with the individual rules in the Austrian Code of Corporate Governance, with the exception 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 Austrian Code of Corporate Governance can also be found at www.uniqagroup.com.
UNIQA also declares its continued willingness to comply with the Austrian Code of Corporate Governance as currently amended. However, UNIQA deviates from the provisions of the Code as amended with regard to the following C rules (comply or explain rules), and the explanations are set out below.
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 reasons of company policy and competition law. All transactions are in any case entered into and processed on an arm's length basis.
| Name | Responsible for | Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements |
|---|---|---|
| Andreas Brandstetter, Chief Executive Officer (CEO) * 1969, appointed 1 January 2002 until 30 June 2024 |
Strategy & Transformation, UNIQA Ventures, New Business Areas (Health), Group General Secretary, Auditing, Art Insurance, Strategic Personnel Management, Operating Personnel Management, Brand & Communication, Ethics & Sustainability, Works Council, Asset Management (UCM/UREM), Digitalisation |
Member of the Supervisory Board of STRABAG SE, Villach |
| Erik Leyers, Data & IT * 1969, appointed 1 June 2016 until 30 June 2024 |
Data Management, UITS, UIP project, Group Service Centre (Nitra) |
Member of the Supervisory Board of Raiffeisen Informatik GmbH, Vienna (until 26 September 2019) Member of the Supervisory Board of Raiffeisen Informatik Geschäftsführungs GmbH, Vienna (since 26 September 2019) |
| 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 Affairs, Reinsurance, Auditing |
Member of the Supervisory Board of CEESEG Aktiengesellschaft, Vienna Member of the Supervisory Board of Wiener Börse AG, Vienna |
The work of the members of the Management Board of UNIQA Insurance Group AG is regulated by the rules of procedure. The division of the business 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 activities. The rules of procedure also specify a list of activities that require consent from the Supervisory Board. The Management Board generally holds meetings every two weeks in which the members of the Management Board report on the current course of business, determine what steps should be taken and make strategic corporate decisions. The meetings of the Management Boards for UNIQA Österreich Versicherungen AG and UNIQA International AG are usually scheduled in between the meetings of UNIQA Insurance Group AG. In addition, there is a continuous exchange of information between the members of the Management Board regarding relevant activities and events.
The Management Board of UNIQA Insurance Group AG meets, whenever possible, every 14 days as the Group Executive Board together with the respective chairmen of the Management Boards of UNIQA Österreich Versicherungen AG (acting concurrently as CFO/CRO of UNIQA Insurance Group AG) and UNIQA International AG, along with the member of the Management Board of UNIQA Österreich Versicherungen AG responsible for Raiffeisen bank sales in Austria and, until 31 January 2019, with Mark-Alexander Bockelmann, member of the Management Board of UNIQA Österreich Versicherungen AG and UNIQA International AG responsible for digitalisation, each of whom has an advisory vote. From 1 January 2020, all members of the Management Boards of UNIQA Österreich Versicherungen AG and UNIQA International AG will participate in the meetings of UNIQA Insurance Group AG with an advisory vote (Group Executive Board). The Management Boards of UNIQA Insurance Group AG, UNIQA Österreich Versicherungen AG and UNIQA International AG represent in their entirety the future Management Board of the company emerging from the planned new Group structure as of 1 January 2020.
| Management and monitoring functions in significant subsidiaries | Number of UNIQA shares held |
|---|---|
| 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 President of the Board of Directors of UNIQA Re AG, Zurich |
as at 31 December 2019: 50,219 shares |
| Member of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Management Board of UNIQA International AG, Vienna Member of the Executive Management of UNIQA internationale Beteiligungs-Verwaltungs GmbH, Vienna (until 18 December 2019) Member of the Supervisory Board of UNIQA Asigurari S.A., Bucharest Member of the Supervisory Board of UNIQA Asigurari de Viata S.A., Bucharest Member of the Supervisory Board of UNIQA Towarzystwo Ubezpieczen´ S.A., Lodz Member of the Supervisory Board of UNIQA Biztosító Zrt., Budapest Member of the Supervisory Board of UNIQA pojišt'ovna, a.s., Prague 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 |
as at 31 December 2019: 6,885 shares |
| Chairman of the Management Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Management Board of UNIQA International AG, Vienna Member of the Executive Management of UNIQA internationale Beteiligungs-Verwaltungs GmbH, Vienna (until 18 December 2019) Member of the Supervisory Board of UNIQA Asigurari S.A., Bucharest (until 24 July 2019) Member of the Supervisory Board of UNIQA Asigurari de Viata S.A., Bucharest (until 24 July 2019) President of the Board of Directors of UNIQA Versicherung AG, Vaduz Vice President of the Board of Directors of UNIQA Re AG, Zurich |
as at 31 December 2019: 16,097 shares |
The Management Board informs the Supervisory Board at regular 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 addition, the Chairman of the Supervisory Board is in regular contact with the CEO to discuss the company's strategy, business performance and risk management.
| Name | Supervisory Board appointments in domestic and foreign listed companies |
Management and monitoring tasks in significant subsidiaries |
Number of UNIQA shares held |
|---|---|---|---|
| Walter Rothensteiner, Chairman * 1953, appointed 3 July 1995 until the 24th AGM (2023) |
|||
| Christian Kuhn, 1st Vice-Chairman * 1954, appointed 15 May 2006 until the 24th AGM (2023) |
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| Erwin Hameseder, 2nd Vice-Chairman * 1956, appointed 21 May 2007 until the 24th AGM (2023) |
Chairman of the Supervisory Board of Raiffeisen Bank International AG, Vienna Chairman of the Supervisory Board of AGRANA Beteiligungs-Aktiengesellschaft, Vienna Vice-Chairman of the Supervisory Board of STRABAG SE, Villach 2nd Vice-Chairman of the Supervisory Board of Südzucker AG, Mannheim |
||
| Burkhard Gantenbein, 3rd Vice-Chairman * 1963, appointed 29 May 2017 until the 24th AGM (2023) |
Chairman of the Supervisory Board of UNIQA Österreich Versicherungen AG, Vienna Member of the Supervisory Board of UNIQA International AG, Vienna |
as at 31 December 2019: 10,250 shares |
|
| Markus Andréewitch, Member * 1955, appointed 26 May 2014 until the 24th AGM (2023) |
|||
| Marie-Valerie Brunner, Member * 1967, appointed 28 May 2018 until the 24th AGM (2023) |
as at 31 December 2019: 1,750 shares |
||
| Anna Maria D'Hulster (since 20 May 2019), Member * 1964, appointed 20 May 2019 until the 24th AGM (2023) |
|||
| Elgar Fleisch, Member * 1968, appointed 28 May 2018 until the 24th AGM (2023) |
|||
| Martin Grüll (since 20 May 2019), Member * 1959, appointed 20 May 2019 until the 24th AGM (2023) |
|||
| Jutta Kath, Member * 1960, appointed 30 May 2016 until the 24th AGM (2023) |
Member of the Board of Directors of UNIQA Re AG, Zurich |
||
| Rudolf Könighofer (until 20 May 2019), Member * 1962, appointed 30 May 2016 until 20 May 2019 |
Member of the Supervisory Board of Raiffeisen International AG, Vienna |
||
| Kory Sorenson (until 20 May 2019), Member * 1968, appointed 26 May 2014 until 20 May 2019 |
Member of the Board of Directors of SCOR SE, Paris Member of the Board of Directors of Phoenix Group Holdings, Cayman Islands Member of the Board of Directors of Pernod Ricard, Paris Member of the Board of Directors of Prometic Life Sciences Inc., Québec (until 31 March 2019) |
as at 20 May 2019: 10,000 shares |
| Sabine Andre (since 20 May 2019) * 1966, since 20 May 2019 |
|
|---|---|
| Peter Gattinger * 1976, from 10 April 2013 until 26 May 2015 and since 30 May 2016 |
|
| Heinrich Kames | as at 31 December 2019: |
| * 1962, since 10 April 2013 | 56 shares |
| Harald Kindermann | as at 31 December 2019: |
| * 1969, since 26 May 2015 | 750 shares |
| Franz-Michael Koller | as at 31 December 2019: |
| * 1956, since 17 September 1999 | 912 shares |
| Friedrich Lehner (until 20 May 2019) * 1952, from 31 May 2000 until 1 September 2008 and from 15 April 2009 until 20 May 2019 |
as at 31 December 2019: 1,162 shares |
| Committee | Chairpeople | Vice Chairman | Members | Delegated by the Central Works Council |
|---|---|---|---|---|
| Committee for Board Affairs | Walter Rothensteiner |
Christian Kuhn | Burkhard Gantenbein, Erwin Hameseder | |
| Working Committee | Walter Rothensteiner |
Christian Kuhn | Marie-Valerie Brunner (until 20 May 2019), Elgar Fleisch, Burkhard Gantenbein, Martin Grüll (since 20 May 2019), Erwin Hameseder |
Peter Gattinger, Heinrich Kames, Franz-Michael Koller |
| Audit Committee | Walter Rothensteiner |
Christian Kuhn | Anna Maria D'Hulster (since 20 May 2019), Burkhard Gantenbein, Erwin Hameseder, Jutta Kath, Kory Sorenson (until 20 May 2019) |
Peter Gattinger, Heinrich Kames, Franz-Michael Koller |
| Investment Committee | Martin Grüll (since 20 May 2019) Kory Sorenson (until 20 May 2019) |
Christian Kuhn | Marie-Valerie Brunner, Anna Maria D'Hulster (since 20 May 2019), Burkhard Gantenbein, Jutta Kath, Rudolf Könighofer (until 20 May 2019) |
Peter Gattinger, Heinrich Kames, Franz-Michael Koller |
| IT Committee | Markus Andréewitch |
Jutta Kath | Marie-Valerie Brunner (since 20 May 2019), Elgar Fleisch, Rudolf Könighofer (until 20 May 2019) |
Heinrich Kames, Franz-Michael Koller |
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 supervising the management of the company by the Management Board. It is comprised of ten shareholder representatives and five employee representatives, and it convened for seven meetings in 2019. 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 2019 financial year in person.
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 Remuneration Committee and is composed of the members of the Executive Committee of the Supervisory Board. In the seven meetings which took place in 2019, the Committee dealt intensively with the development of the UNIQA 3.0 strategy programme, interviewing candidates for management positions in the Group, filling Management Board positions, the remuneration strategy and succession planning.
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 decisions on any issue that is the responsibility of the Supervisory 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 2019. 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 convened for three meetings, which were also attended by the auditor of the (consolidated) financial statements. The meetings dealt with all the documents relating to the financial statements, the Corporate Governance Report and the appropriation of profit proposed by the Management Board (each for the 2018 financial year). Furthermore, the audit of the 2019 financial statements of the companies of the
consolidated group was planned, and the auditor reported on the results of preliminary audits. In particular, the Audit Committee received quarterly reports from Internal Auditing concerning audit areas and material findings based on the audits conducted.
The Investment Committee advises the Management Board with regard to its investment policy; it has no decision-making authority. 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 (new core system) over the course of five meetings.
The chairmen of the respective committees informed the full Supervisory Board about the meetings and their committees' 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.
All members of the Supervisory Board elected during the Annual General Meeting have declared their independence under Rule 53 of the Austrian Code of Corporate Governance. Anna Maria D'Hulster (since 20 May 2019), Kory Sorenson (until 20 May 2019) and Jutta Kath also satisfy the criteria of Rule 54 of the Austrian Code of Corporate Governance in that they are neither shareholders with a participation of more than 10 per cent nor do they represent the interests of such shareholders.
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 material conflict of interest and is therefore capable of influencing the behaviour of the member concerned.
UNIQA has established the following additional criteria for determining the independence of a Supervisory Board member:
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.
UNIQA is convinced that a high degree of diversity can enhance its success on a sustainable basis. Diversity makes us successful together and has a positive influence on corporate culture. In this context, diversity means different nationalities, cultures and a collective of men and women, especially in executive positions. Together, they contribute to "Diversity of Thought".
With Marie-Valerie Brunner, Anna Maria D'Hulster and Jutta Kath, three women have been elected to join the Supervisory Board of UNIQA Insurance Group AG. The proportion of female Supervisory Board members among the elected
members (capital representatives) therefore amounts to the legally required 30 per cent. Sabine Andre was appointed to the group of employee representatives on the Supervisory Board on 20 May 2019. A total of eleven members of the Management Board, including one woman, were appointed to the Management Boards of UNIQA Insurance Group AG, UNIQA Österreich Versicherungen AG and UNIQA International AG in Austria in 2019.
Of a total of 549 managers at the Austrian location, 163 are women, which corresponds to a share of 29.7 per cent. In the UNIQA International AG companies outside Austria, 329 of a total of 699 managers are currently female, which amounts to 47.1 per cent. In the entire UNIQA Group, the average number of female managers is 39.4 per cent (492 of a total of 1,248 persons).
A comprehensive diversity concept is currently being developed at UNIQA. Over the next few years, it is planned to concentrate on four selected priorities:
Women in management – more women in management positions
Compensation fairness – equal pay for work of equal value
Generation management – old and young contribute together to the success of the company
People with disabilities –
integrate, promote and offer positions where they can use their strengths
UNIQA has launched a new initiative called "Get ready" in 2019. Within this framework, a dialogue was opened with regard to the selected diversity priorities, in order to raise awareness of these important topics throughout UNIQA. The first two events in 2019 focused on the promotion of women and were dedicated to the topics "Pension gap – needs and reality" and "Women & careers at UNIQA".
In May 2019 the Group HR department, in cooperation with 14 female managers from Austria and abroad, worked out and prioritised the most important focus areas relating to the promotion of women. Measures that will be elaborated further for achieving these goals include the promotion of
a mindset open to diversity and inclusion, the continuous development of models for flexible working time and transparent career paths.
In October 2019 the first workshop on the topic of unconscious bias was held with the members of the Management Board. In the course of the workshop, it was shown how organisations can benefit from diverse teams. Top managers could also reflect on their unconscious thinking patterns and perception filters.
Eighty senior managers and experts across the Group completed a one-week comprehensive leadership development programme at the Harvard Business School with the title "Leading Transformation at UNIQA" in 2019. The proportion of women in this programme in the context of the strategic transformation UNIQA 3.0 was 20 per cent.
The NEXT AT management programme for all Austrian managers ended in mid-2019. By that time, 547 people had participated in it since 2017. The overall share of female participants in this programme was 25 per cent. The most frequently chosen training courses were "Motivation 3.0", "Conflict Management" and "Leading in dynamic working environments". Accompanying individual coaching was taken up by 80 participants.
Thanks to the cooperation with the Female Founders, which has been in place since 2017, four female executives were able to participate in the three-month digital leadership programme Lead F in 2019. Since 2019 UNIQA has also been a partner of the women's platform Business Riots, which aims to break up traditional forms of work and living environments from the perspective of women. Female employees can attend events and further their professional and personal development.
Enabling employees to achieve a work-life balance and providing them with easy access to services that make everyday life easier, especially for mothers, are key factors in promoting women. UNIQA offers a comprehensive range of services known as "Freiraum" (Latitude) that addresses these needs. Within the scope of the mental health hotline KEEP BALANCE, a cooperation with Hilfswerk Austria, completely anonymous advice and support is offered for all professional and personal problems.
UNIQA also relies on flexible working hours. In addition to the long-established option for teleworking, which 13.5 per cent of employees use in Austria in the administrative departments, "mobile work" has been consistently implemented since the end of 2018. Employees are able to work up to eight days a month from home, on the road or at other suitable locations. A total of 172 employees practice the classic teleworking, and 391 employees – mobile working.
In the 2019 employee survey in Austria, the effect of the increased flexibility of working hours was clearly reflected in a very high level of agreement with the statement "I am very satisfied with my working hours model".
UNIQA wants to bind all committed and qualified employees – no matter what gender – in the same manner to the company on a long-term basis. Therefore, equal opportunities in working conditions and equal pay are a major concern for UNIQA. The clear objective is to achieve comprehensive gender-independent compensation fairness. To this end, the valid regulations regarding remuneration at UNIQA for employees were summarised and communicated internally in the summer of 2019. In the course of salary increases at the end of 2019, a special focus was placed on female employees. In addition, a survey of internal compensation fairness is planned for 2020.
Making use of the age diversity throughout the company in a more targeted way, optimising the transfer of knowledge and promoting intergenerational cooperation even further were some of the main questions of the future UNIQA dealt with intensively during 2019. For this purpose, the offer of a demography consultancy was also taken up, to help establish an age-appropriate working environment.
Several concrete pilot events were held for managers, teams and for employees of the 45+ generation. Topics such as intergenerational knowledge transfer, reverse mentoring and generation-sensitive leadership were developed with existing teams. The feedback on these pilot projects was very positive.
In 2019 initial contacts were made with potential cooperation partners, and events were evaluated that contribute to raising awareness of this important topic and provide informal access to unusual situations in order to reduce reservations that people might have.
The members of the Management Board of UNIQA Insurance Group AG received remuneration of €3.2 million in 2019.
| In € thousand | 2019 | 2018 |
|---|---|---|
| The expenses attributable to the financial year in question for the remu neration of the members of the Management Board amounted to: |
||
| Fixed remuneration1) | 1,574 | 1,612 |
| Variable remuneration | 1,609 | 1,745 |
| Current remuneration | 3,183 | 3,356 |
| Termination benefit entitlements | 0 | 0 |
| Total | 3,183 | 3,356 |
| of which proportionately recharged to operating subsidiaries | 2,249 | 1,663 |
| Paid to former members of the Management Board and their surviving dependants |
2,766 | 2,492 |
1) The fixed salary components include remuneration in kind equivalent to €34,787 (2018: €34,788).
The breakdown of the total Management Board remuneration among the individual members of the Management Board was as follows:
| Member of the | |||||
|---|---|---|---|---|---|
| Management Board In € thousand |
Fixed remuneration |
Variable remuneration1) |
Multi-year share-based remuneration (LTI)2) |
Total current remuneration |
Total for the year |
| Andreas Brandstetter | 669 | 478 | 267 | 1,414 | 1,414 |
| Erik Leyers | 349 | 269 | 0 | 618 | 618 |
| Kurt Svoboda | 555 | 395 | 200 | 1,150 | 1,150 |
| Total 2019 | 1,574 | 1,141 | 468 | 3,183 | 3,183 |
| Total 2018 | 1,612 | 1,295 | 450 | 3,356 | 3,356 |
1) The short-term incentive (STI) comprises a variable remuneration component which is paid beginning with the 2017 financial year, partly in
the following year and partly after three years (the deferred component). 2) The long-term incentive (LTI) corresponds with a share-based remuneration agreement first introduced in 2013, with the beneficiary entitled
to receive a cash settlement following a four-year term. Details can be found in the notes to the consolidated financial statements.
In the past financial year, the members of the Management Board of UNIQA Insurance Group AG received variable remuneration and multi-year share-based payments amounting to €1.6 million. Payments (STI) in the amount of €0.4 million are expected to be made in subsequent years for the 2017 financial year. For the 2018 financial year, payments (STI) in the amount of €0.4 million are expected to be made in 2022. For the 2019 financial year, payments (STI) in the amount of €1.6 million are expected to be made in the years 2020 and 2023. As part of the multi-year share-based payment (LTI), payments of €0.5 million were made to the members of the Management Board
of UNIQA Insurance Group AG in 2019. For the subsequent years 2020 to 2023, a payment of €2.5 million is expected for the virtual shares allocated up to 31 December 2019.
In addition to the above-mentioned employee benefits, the following pension fund contributions were made for the existing pension commitments to the members of the Management Board during the financial year. The compensation payments arise if a member of the Management Board steps down before the age of 65 because pension entitlements are generally funded in full until the age of 65 to avoid over-financing.
| Pension funds contributions In € thousand |
Current contributions |
Total for the year |
|---|---|---|
| Andreas Brandstetter | 84 | 84 |
| Erik Leyers | 170 | 170 |
| Kurt Svoboda | 105 | 105 |
| Total 2019 | 359 | 359 |
| Total 2018 | 359 | 359 |
The remuneration paid to the members of the Supervisory Board for their work in the 2018 financial year amounted to €739,375. Provisions of €745,000 have been set aside for the remuneration to be paid for work completed in 2019. In 2019 a total of €72,100 was paid to cover attendance fees and outof-pocket expenses (2018: €67,400).
| 72 | 67 |
|---|---|
| 745 | 739 |
| 2019 | 2018 |
The breakdown of the total remuneration (including attendance fees and out-of-pocket expenses to employee representatives) paid to the individual members of the Supervisory Board was as follows:
| Member of the Supervisory Board In € thousand |
20191) | 2018 |
|---|---|---|
| Walter Rothensteiner | 104 | 104 |
| Christian Kuhn | 106 | 106 |
| Erwin Hameseder | 89 | 88 |
| Burkhard Gantenbein | 106 | 84 |
| Markus Andréewitch | 52 | 50 |
| Marie-Valerie Brunner | 65 | 40 |
| Anna Maria D'Hulster | 40 | 0 |
| Elgar Fleisch | 65 | 40 |
| Martin Grüll | 41 | 0 |
| Jutta Kath | 81 | 80 |
| Rudolf Könighofer | 24 | 65 |
| Kory Sorenson | 25 | 65 |
| Klemens Breuer | 0 | 26 |
| Eduard Lechner | 0 | 40 |
| Out-of-pocket expenses to employee representatives | 23 | 21 |
| Total | 817 | 807 |
1) The Management Board and Supervisory Board intend to propose the remuneration of €745,000 to the 2020 Annual General Meeting for resolution.
Burkhard Gantenbein received Supervisory Board remuneration (including attendance fees) of €17,000 for his activities on the Supervisory Boards of UNIQA Österreich Versicherungen AG and UNIQA International AG in addition to the Supervisory Board remuneration of UNIQA Insurance Group AG. Besides Supervisory Board remuneration (including attendance fees) from UNIQA
Insurance Group AG, Jutta Kath also received Supervisory Board remuneration of 18,000 Swiss francs for her work on the Supervisory Board of UNIQA Re AG.
Former members of the Supervisory Board did not receive any remuneration.
The disclosures in accordance with Section 239(1) of the Austrian Commercial Code in conjunction with Section 80b of the Austrian Insurance Supervision Act must be included in the notes to the consolidated financial statements for the financial statements to be in accordance with IFRSs and to release the company from the requirement to prepare financial statements in accordance with the Austrian Commercial Code. The disclosures are defined more broadly for the separate financial statements in accordance with the provisions of the Austrian Commercial Code. The separate financial statements include not only the remuneration for the decision-making functions (Management Board) of UNIQA Insurance Group AG, but also the remuneration paid to the Management Boards of the subsidiaries if such remuneration is based on a contract with UNIQA Insurance Group AG.
A short-term incentive (STI) is offered in which a one-off payment is made based on the relevant earnings situation if the specified individual objectives for the payment of the incentive have been met. The STI comprises a variable remuneration component which is paid beginning with the 2017 financial year, partly in the following year and partly after three years (the deferred component). A long-term incentive (LTI) is also provided in parallel as a share-based payment arrangement with cash settlement, and this provides for one-off payments after a period of four years in each case based on virtual investments in UNIQA shares each year and the performance of UNIQA shares, the P&C net combined ratio, and the return on risk capital over the period. Maximum limits are agreed. This LTI is subject to an obligation on the members of the Management Board to make an annual investment in UNIQA shares with a holding period of four years in each case. The system complies with Rule 27 of the Austrian Code of Corporate Governance.
Following the Solvency II requirements for remuneration policy for board members, payment of the STI shall be made in two stages. One part will be paid out directly after the determination of earnings, and the remainder will be allocated. Upon a positive sustainability audit for the vesting period, this amount will be paid out three years later. The STI is thereby designed to ensure an appropriate balance between fixed and variable remuneration elements.
UNIQA has agreed retirement pensions, occupational disability benefits and surviving dependants' pensions for the members of the Management Board. The beneficiaries' actual pension entitlements are a contractual arrangement with Valida Pension AG, which is responsible for managing the pensions. The retirement pension generally becomes due for payment when the beneficiary reaches 65 years of age. The pension entitlement is reduced in the event of an earlier retirement, with the pension eligible for payment once the beneficiary reaches the age of 60 at the earliest. In the case of the occupational disability pension and survivor's benefits, basic amounts are provided as a minimum pension.
The pension fund at Valida Pension AG is funded by UNIQA through ongoing contributions from management board members. Compensation payments to Valida Pension AG are mandatory if members of the Management Board resign before reaching 65 years of age (calculated duration of premium payments to avoid over-financing).
Termination payments have been agreed based on the former provisions of the Austrian Salaried Employee Act. These termination payments, which are made if the employment contract of a member of the Management Board is terminated prematurely, comply with the criteria set out in Rule 27a of the Austrian Code of Corporate Governance. Generally, the pension entitlements remain in force if his or her position is terminated, but the entitlements are subject to curtailment rules.
Essential principles of remuneration policy for the companies included in the consolidation (UNIQA Österreich Versicherungen AG, UNIQA International AG and all international insurance subsidiaries) Bearing in mind the UNIQA business strategy, as well as legal and regulatory requirements, UNIQA's remuneration policy aims to create a direct connection between the company's economic goals and board member remuneration. Thus, in addition to the base salary, there is a performance-based, variable remuneration component (STI) which is regularly compared to the external market. This is a bonus payment that depends on the attainment of agreed qualitative and quantitative objectives in the relevant financial year. An essential criterion for determining and formulating the objectives is that they support UNIQA's Group strategy and are therefore in harmony with the overall strategic orientation. The structure of the total remuneration – the ratio of the basic salary to the variable salary – depends on the respective position.
In principle, the variable portion of the total remuneration increases with the size of the area of responsibility. The sustainability of the business activity and its contribution to sustainable corporate growth is an essential component. This is incentivised by delaying the payment of a portion of the STI.
The Solvency II requirements for the remuneration policy for board members are met by the above. Furthermore, the Management Boards of UNIQA Österreich Versicherungen AG and UNIQA International AG (insofar as they do not have a claim as an identical board member of UNIQA Insurance Group AG) are included in the longterm incentive programme described above.
The remuneration paid to the Supervisory Board is approved at the Annual General Meeting as a total amount for the work in the previous financial year. The remuneration applicable to the individual Supervisory Board members is based on their position within the Supervisory Board and the number of committee positions held.
UNIQA has taken out directors' & officers' (D&O) insurance for the members of the Management Board, Supervisory Board and senior executives (including Group companies). The costs are borne by UNIQA.
A comprehensive risk report (Rules 69 and 70 of the Austrian 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
Implementation of, and compliance with, the individual rules in the Austrian Code of Corporate Governance were evaluated by PwC Wirtschaftsprüfung GmbH for the 2019 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 2019 – 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 2019 financial year. Some of the rules were not applicable to UNIQA in the evaluation period.
Vienna, 20 March 2020
Andreas Brandstetter Chairman of the Management Board
Erik Leyers Member of the Management Board
Kurt Svoboda Member of the Management Board
Ladies and gentlemen, dear shareholders,
The Report of the Supervisory Board of UNIQA Insurance Group AG for the 2019 financial year is divided into three sections:
The activities of the Supervisory Board and its committees intensified further in 2019. Put simply, our meetings lasted longer and were held more frequently than in previous years. With Anna Maria D'Hulster, Martin Grüll and Sabine Andre, our 15-member Supervisory Board counts three new members since the Annual General Meeting in May 2019. Thanks to the broad diversity of expertise represented on the Supervisory Board, we were able to focus our attention on the two major topics of the financial year in depth and at length:
Once again the economic environment proved to be challenging for UNIQA in the past financial year. In the eurozone, growth continued to decline slightly, and Brexit was still causing uncertainty. However, the lowest point seems to have been reached, and sentiment indicators are again pointing to moderate economic expansion. Growth also slowed in Central and Eastern Europe (CEE), but is still significantly higher than in Western Europe or the global economy as a whole. CEE, which is one of UNIQA's core markets, is thus one of the fastest expanding growth regions in the world. Austria is likely to benefit from this as well. There was little movement as regards interest rates in 2019, even though the European Central Bank (ECB) launched new measures to stimulate the economy and inflation in September 2019: despite new bond purchases with a volume of €20 billion per month, inflation growth remains slow, meaning that a normalisation of monetary policy and interest rates is unlikely to be on the cards for the next
few years.
Despite these rather difficult conditions, UNIQA managed to continue with the plan for the concluding implementation of the long-term strategic programme, UNIQA 2.0. I would like to highlight three points that were already particularly important in 2018:
In 2019 the Supervisory Board and its committees discussed the strategic future of the UNIQA Group intensively. Three questions were and still are of central importance here:
What are our assumptions as regards the world, civil society and its ways of living for 2030?
Under item 2 of this report, I will go into more detail about the main focal points of the deliberations of the Supervisory Board and its committees. In each of these sessions, the challenge of "ambidexterity" was always at the centre of attention: how can we manage to make UNIQA's existing, proven business model simpler, more customer-centred and more efficient, while at the same time providing enough strength, capital and (new) talent for disruptive innovation?
It soon became clear that it would be necessary to streamline the company's organisational structure in order to successfully shape the future for UNIQA while at the same time radically aligning it towards more customer focus. Three customer-centred key departments were set up with so-called end-to-end responsibility for all customer processes: Customers & Markets Austria, Customers & Markets Bancassurance Austria and Customers & Markets International. These three are in turn assisted by six service and support units.
We realise that our decision to fill the Management Board, which has been reduced from eleven to nine members, at the Austrian location exclusively with men raised critical questions in times of indisputable importance of diversity. The Supervisory Board was aware of this consequence, but made its decision following a structured, months-long process after detailed discussions with numerous male and female candidates selected solely on the basis of their professional qualifications and management skills had been held.
I would like to strongly emphasise that the promotion of diversity throughout the company is a major concern for both the Supervisory Board and the Management Board.
During 2019 the Supervisory Board was regularly 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 Management 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 information about those measures requiring our approval.
The members of our Supervisory Board are regularly invited to participate in informational events on relevant topics. Three seminars were held in 2019 with a special focus on "IFRS 9 and 17", "Cherrisk" (our Hungarian digital start-up), "Innovative, alternative forms of selling" and "UIP (UNIQA Insurance Platform) & IT Strategy".
The Supervisory Board met on seven occasions in 2019. Our meetings focused on the respective earnings situation within our Group and its further strategic development. We also made one decision by way of circular resolution.
The Supervisory Board meeting on 9 April focused on the audit of the annual financial statements and consolidated financial statements for the year ended 31 December 2018 and on the reports from the Management Board with up-to-date information on the performance of the Group in the first quarter of 2019. We also discussed the agenda for the 20th Annual General Meeting held on 20 May 2019, in particular the proposal to the Annual General Meeting to elect PwC Wirtschaftsprüfung GmbH as auditors for the 2020 financial year. The report by auditors PwC Wirtschaftsprüfung GmbH and lawyers Schönherr Rechtsanwälte GmbH regarding compliance with the provisions of the Austrian Code of Corporate Governance (ÖCGK) in the 2018 financial year was also acknowledged.
Our meeting held on 15 May was dedicated to a discussion of the Group's earnings situation in the first quarter of 2019 as well as to discussions on the Solvency and Financial Condition Report (SFCR) 2018.
In addition to the Audit Committee required by law, we have set up four more committees in order to ensure that the work of our Supervisory Board is structured effectively.
The Working Committee did not hold any meetings in the past financial year. A decision on a real estate project was made by way of circular resolution.
The various chairs of the committees then informed the members of the Supervisory Board in detail about the meetings and their committee's work.
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 2019 were audited by PwC Wirtschaftsprüfung GmbH; the statutory auditor also verified that a separate consolidated non-financial report and a consolidated corporate governance report had been prepared for the 2019 financial year. The audit raised no objections. The separate and consolidated financial statements were each awarded an unqualified audit opinion for 2019.
The Supervisory Board acknowledged and approved the findings of the audit.
The evaluation of UNIQA's compliance with the rules of the Austrian Code of Corporate Governance in the 2019 financial 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 Rechtsanwälte GmbH. The audits found that UNIQA had complied with the rules of the Austrian Code of Corporate Governance in the 2019 financial year to the extent that the rules were included in UNIQA's declaration of conformity.
The Supervisory Board acknowledged the consolidated financial statements for 2019 and approved the 2019 annual financial statements of UNIQA Insurance Group AG. It also endorsed both the Management Report and the Group Management Report. The 2019 annual financial statements were thereby adopted in accordance with Section 96(4) of the Austrian Stock Corporation Act.
The Supervisory Board reserves the right to review and/or approve the proposal for the appropriation of profit submitted by the Management Board due to the COVID-19 crisis until further notice.
Once again this year on behalf of the entire Supervisory Board, I would like to thank all the employees of UNIQA Insurance Group AG and all Group companies for their major personal commitment in the 2019 financial year and wish them every continued success for their future.
Vienna, April 2020
On behalf of the Supervisory Board
Walter Rothensteiner Chairman of the Supervisory Board
| Group Management Report | 24 |
|---|---|
| Consolidated Financial Statements | 44 |
| General information | 44 |
| Consolidated Statement of Financial Position | 46 |
| Consolidated Income Statement | 47 |
| Consolidated Statement of Comprehensive Income | 48 |
| Consolidated Statement of Cash Flows | 49 |
| Consolidated Statement of Changes in Equity | 50 |
| Segment Reporting | 53 |
| Notes to the Consolidated Financial Statements | 64 |
| Investments | 64 |
| Technical items | 75 |
| Other non-current assets | 87 |
| Other current assets | 95 |
| Taxes | 97 |
| Social capital | 99 |
| Equity | 102 |
| Subordinated liabilities | 103 |
| Other current and non-current liabilities | 104 |
| Other non-technical income and expenses | 105 |
| Other disclosures | 106 |
| Significant events after the reporting date | 117 |
| Risk report | 118 |
| Approval for publication | 133 |
| Declaration of the legal representatives | 134 |
| Audit opinion | 135 |
GROUP MANAGEMENT REPORT
The macroeconomic environment continued to cool down in 2019. According to forecasts (OECD), the world economy grew by 2.9 per cent, its lowest rate since the 2008/2009 financial crisis. World trade is stagnating despite a deescalation in the US/China trade conflict ("Phase One" deal). The United Kingdom left the European Union on 31 January 2020, although uncertainty over their future trading relationship is continuing to weigh on the economy. Many countries, including Germany, are finding that industry is their weakest link, while their service sectors are flourishing. The downward trend in business confidence reached a first low point at the beginning of 2020. The economic impact of the spread of the coronavirus is still uncertain in March 2020, but there are already signs of a radical impairment of economic activity. Its extent will depend on the duration of the crisis and the public measures to prevent the spread on the one hand, and on the attempts to bridge the temporary losses of income for companies and households on the other.
Gross domestic product (GDP) in the eurozone rose by 1.2 per cent in 2019. This means that growth was slower compared with the previous year. Consumption by private households continued to be bolstered by a healthy labour market: at the end of 2019, the unemployment rate in the eurozone was at a precorona low (7.4 per cent). The Austrian economy put in a solid performance in 2019. Despite growing international risks facing the economy, GDP growth for the year amounted to 1.6 per cent. Although here, too, the economy had cooled off compared with previous years, there were increasing signs of stabilisation on a path of modest growth towards the end of the year. However, a decline in international trade and the demand for industrial goods were curbing growth in the manufacturing sector. By contrast, the trend in the service sector was still very pleasing at the start of 2020, while demand amongst private consumers remained brisk thanks to the robust labour market. Both employment and wages were on the rise, while unemployment was at a very low 4.2 per
cent. Disruptions of economic activity caused by people not working, interrupted supply chains, slumps in sectors directly affected by the impact of the coronavirus such as tourism and transport, and the influence of government measures to contain the further spread of the disease are expected to have a major, albeit temporary, effect on the development of the Austrian economy.
The European Central Bank (ECB) performed something of a U-turn in September 2019, bringing a temporary phase of monetary normalisation to an end with new measures to stimulate the economy and push up inflation. It reduced the interest rate on deposits to –0.5 per cent and, in November 2019, the ECB launched another unlimited programme of monthly bond purchases worth €20 billion. Despite this comprehensive monetary policy stimulus, inflation growth remains weak, meaning that a normalisation of monetary policy and interest rates is unlikely to be on the cards for the next few years under the ECB's new president Christine Lagarde as well. A strategic review will be carried out from 2020 onwards to assess the effectiveness and appropriateness of the monetary policy instruments being deployed, amongst other things. The Federal Reserve, the US central bank, completed its midcycle adjustment with three interest rate cuts in 2019. In March 2020 central banks and governments around the world responded to the emerging consequences of the coronavirus spread. In two emergency meetings of the Open Market Committee, the Fed cut key interest rates by a total of 150 basis points. Its target range for key interest rates is thus 0 to 0.25 per cent. Furthermore, both the Fed and the ECB decided on new large-volume bond purchases and extensive measures to supply the money and capital markets with liquidity.
Last year Austria benefited from the still highly favourable economic conditions in Central and Eastern Europe (CEE). Economic growth in UNIQA's core markets in CEE stood at 3.7 per cent (not including Russia) according to forecasts, down slightly on 2018. Nevertheless, CEE is amongst the growth regions enjoying the most rapid
expansion and has so far shown itself to be highly resistant to the economic slowdown in the eurozone, an important trading partner for the region. However, negative contagion effects have adversely affected industry and the demand for exports in some countries. In the Czech Republic and Slovakia, economic growth slowed in 2019, with GDP rising by 2.4 and 2.3 per cent respectively according to forecasts. Poland and Hungary, meanwhile, are still enjoying something of a boom (GDP growth of 4.1 and 4.9 per cent respectively). Unemployment hit historic lows in CEE, with the healthy labour market underpinning strong domestic demand.
The Russian economy proved stable, although it offers relatively little potential for growth in the medium term. The planned delivery of national infrastructure projects presents opportunities for some upward movement. Ukraine's economy, meanwhile, was on the road to recovery: inflation fell sharply in 2019, paving the way for more favourable financing conditions. The central banks in both Russia and Ukraine have begun cycles of interest rate cuts.
GDP growth rates in the economies of Southeastern Europe are around 3.4 per cent on average, with the positive trends continuing on the employment markets and inflation at modest levels. The Balkan countries also offer stable economic conditions as a whole. While there are signs of a temporary interruption of the solid economic development due to the effects of the coronavirus, with economic growth in CEE outstripping that in Western Europe by some margin, the process of income and wealth convergence in the region should continue in line with expectations.
Premium revenues in Austrian property and casualty insurance were strong in 2019 with 4.2 per cent growth to €9.9 billion. Growth was driven by the comprehensive vehicle and passengers' accident insurance (+6.4 per cent) business lines as well as fire, including business interruption (+7.2 per cent). The vehicle liability insurance business line, by contrast, only managed a slight increase in premiums (+1.7 per cent).
The premium attrition trend continued in life insurance, with premiums shrinking by some 2.2 per cent year on year to just under €5.5 billion. As in the previous year, the main reason was the 4.6 per cent drop in single-premium insurance to €0.7 billion. The life insurance business with recurring premiums also experienced a decline, although this was more modest at around 1.9 per cent to just under €4.8 billion.
Health insurance performed slightly less well in 2019 than in the previous year, with growth in premiums of 3.8 per cent to €2.3 billion.
As mentioned above, the macroeconomic environment in CEE is in very fine form. Like in previous years, the Eastern European insurance markets were able to capitalise on this sustained positive economic trend again in 2019. According to the results currently available, total premium volumes rose in Central and Eastern Europe (not including Russia) by around 5.0 per cent to an estimated €35 billion. This equates to growth of some €1.5 billion year on year in absolute terms. All CEE markets posted premium growth in 2019 despite the characteristic diversity between them. Growth rates in the individual countries ranged from just under 2 per cent in Poland to some 17 per cent in Bulgaria and Ukraine and are expected to remain well above the eurozone average in 2020– 2021 as well.
Increased demand for insurance products fuelled by the sustained economic growth resulted in a marked rise in premiums in the year just passed – particularly in property insurance, where the figure was over 7 per cent. Stimulus for growth came in particular from the household and homeowner sectors as well as from health insurance and the vehicle insurance business lines. The vehicle business lines experienced substantial premium increases, mainly due to higher vehicle inventories as a result of a significant overall rise in new registrations as well as higher average premiums in certain countries.
Developments in the life insurance markets in Central and Eastern Europe, by contrast, were mixed. Following robust premium growth in 2017 and a fall in 2018, however, life insurance once again posted slight premium growth overall in CEE.
Growth in the region depends largely on the trend of the life insurance market in Poland, where the sharp decline in the insurance business involving short-term, single-premium products – which has fallen by some €600 million in all, i.e. about 50 per cent, over the past two years – has cut aggregate growth on the life insurance markets significantly in recent times. This contrasts with
another trend of the past few years, which demonstrates that extraordinary premium growth is very likely in some Southeastern European countries on account of their still-underdeveloped life insurance markets.
The next few years should see demand for life insurance in Eastern Europe recover across the board as people will still need their own, independent provision on top of their state pension. Many insurers have also responded to the persistently low interest rates by launching new provision solutions.
CEE remains a region with high growth potential for UNIQA, as can be seen from the positive performance in the insurance markets overall over the last few years. The sustained positive economic performance in Central and Eastern Europe should lead to further increases in income over the next few years and to higher consumer spending by households. Rising levels of wealth and growing purchasing power also mean greater demand for insurance solutions – and this in a market with some 155 million potential customers (not including Russia).
Both premiums per capita (insurance density) and the share of GDP contributed by the insurance industry (insurance penetration) in CEE are still well below the Western European market average, illustrating quite clearly the immense catch-up potential that these insurance markets continue to offer.
With a premium volume written (including savings portions from unit-linked and index-linked life insurance) of €5,372.6 million, the UNIQA Group is among the leading insurance groups in Central and Eastern Europe. The savings portion from the unit-linked and index-linked life insurance in the amount of €309.8 million was set off against the change in insurance provision, pursuant to FAS 97 (US GAAP). Without taking the savings portion from the unit-linked and index-linked life insurance into consideration, the premium volume written amounted to €5,062.8 million.
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 insurance group in Austria, with a presence in 15 countries of the CEE growth region: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Kosovo, Montenegro, North Macedonia, Poland, Romania, Russia, Serbia, Slovakia and Ukraine. In addition, insurance 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 international Group companies, in order to take best advantage of synergy effects and to implement the Group's long-term corporate strategy consistently.
UNIQA International AG manages the international activities of the Group. This entity is also responsible for the ongoing monitoring and analysis of the international target markets and for acquisitions and post-merger integration.
The property and casualty insurance line includes property insurance for private individuals and companies, as well as private casualty insurance. The UNIQA Group received premiums written in property and casualty insurance in the amount of €2,846.8 million in 2019 (2018: €2,774.4 million) – which is 53.0 per cent (2018: 52.3 per cent) of 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 requirements and also make this business segment attractive as a result.
Health insurance in Austria includes voluntary health insurance for private customers, commercial preventive healthcare and optout 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, in 2019, premiums written totalled €1,130.8 million, (2018: €1,086.4 million) – which is 21.0 per cent (2018: 20.5 per cent) of total premium volume. UNIQA is the undisputed market leader in this strategically important business line in Austria, with around 46 per cent of market share. The overwhelming majority comes from Austria with around 93 per cent of premiums, with the remaining 7 per cent from international business.
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, longterm care needs or death. The life insurance business model is oriented towards the long term: policy terms are 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 €1,394.9 million Group-wide in 2019 (2018: €1,448.6 million) – which is 26.0 per cent (2018: 27.3 per cent) of total premium volume.
In addition to the annual financial statements of UNIQA Insurance Group AG, the consolidated financial statements include the financial statements of all subsidiaries in Austria and abroad as well as those of the investment funds under the Group's control. Including UNIQA Insurance Group AG, the basis of consolidation comprised 33 Austrian (2018: 34) and 57 international (2018: 59) subsidiaries along with six Austrian (2018: 6) and one international (2018: 1) investment fund under the Group's control. The associates are five domestic (2018: 5) and one international company (2018: 1) that were included in the consolidated financial statements using equity method accounting.
Details on the consolidated companies and associates are contained in the corresponding overview in the consolidated financial statements. The accounting and measurement methods are also described in the consolidated financial statements.
Errors were corrected in accordance with IAS 8 as part of the process for preparing the consolidated annual financial statements. This resulted in adjustments to the values for the 2018 financial year. See note 37 in the consolidated financial statements for further details.
UNIQA's comprehensive risk report is included in the notes to the 2019 consolidated financial statements.
Since 2004, UNIQA has pledged to comply with the Austrian Code of Corporate Governance. UNIQA publishes its consolidated Corporate Governance Report at www.uniqagroup.com in the Investor Relations section.
Pursuant to Section 267a(6) of the Austrian Commercial Code, UNIQA Insurance Group AG prepares its consolidated non-financial statement as a separate consolidated non-financial report. The separate consolidated non-financial report is prepared and signed by all of the statutory corporate representatives. It is submitted to the Supervisory Board for review and published together with the Group Management Report pursuant to Section 280 of the Austrian Commercial Code.
| UNIQA Group | |||
|---|---|---|---|
| In € million | 2019 | 2018 | 2017 |
| Premiums written including savings portions from unit linked and index-linked life insurance |
5,372.6 | 5,309.5 | 5,293.3 |
| Cost ratio (after reinsurance) | 27.2% | 25.9% | 25.0% |
| Combined ratio (after reinsurance) | 96.4% | 96.8% | 97.5% |
| Earnings before taxes | 295.7 | 294.6 | 264.6 |
| Consolidated profit/(loss) (proportion of the net profit for the period attributable to the shareholders of UNIQA |
|||
| Insurance Group AG) | 232.4 | 243.3 | 171.8 |
In the area of insurance policies with recurring premium payments, there was an encouraging rise of 1.4 per cent to €5,267.9 million (2018: €5,196.7 million). In the single premium business, however, the premium volume decreased by 7.2 per cent to €104.6 million (2018: €112.7 million) in line with the strategy.
UNIQA's total premium volume, including savings portions from unit-linked and index-linked life insurance in the amount of €309.8 million (2018: €320.5 million), increased by 1.2 per cent to €5,372.6 million in 2019 (2018: €5,309.5 million).
Premiums written in property and casualty insurance increased by 2.6 per cent to €2,846.8 million in 2019 (2018: €2,774.4 million). In health insurance, premiums written in the reporting period rose by 4.1 per cent to €1,130.8 million (2018: €1,086.4 million). In life insurance, premiums written including savings portions from unit-linked and index-linked life insurance fell by 3.7 per cent overall to €1,394.9 million (2018: €1,448.6 million). Reasons for this included the strategic withdrawal from the single-premium business and subdued demand due to persistently low interest rates.
The Group premiums earned, including savings portions from unit-linked and index-linked life insurance (after reinsurance) in the amount of €309.8 million (2018: €320.9 million), rose by 1.8 per cent to €5,170.8 million (2018: €5,081.7 million). The volume of premiums earned (net, in accordance with IFRSs) increased by as much as 2.1 per cent to €4,861.1 million (2018: €4,760.7 million).
In the 2019 financial year, insurance benefits before reinsurance (see note 8 in the consolidated financial statements) dropped by 1.2 per cent to €3,756.3 million (2018: €3,800.2 million). Consolidated net insurance benefits rose less sharply than premiums earned, increasing by 0.6 per cent to €3,657.1 million in the past year (2018: €3,633.7 million).
In € million
The loss ratio after reinsurance in property and casualty insurance fell to 64.2 per cent in 2019 (2018: 65.4 per cent) on the back of a favourable trend in basic losses. The combined ratio after reinsurance thus improved to 96.4 per cent (2018: 96.8 per cent) despite a higher cost ratio at Group level.
Total consolidated operating expenses (see note 9 in the consolidated financial statements) less reinsurance commission and share of profit from reinsurance ceded rose by 7.0 per cent to €1,407.1 million in the 2019 financial year (2018: €1,314.7 million). Expenses for the acquisition of insurance less reinsurance commission and share of profit from reinsurance ceded in the amount of €17.9 million (2018: €13.6 million) rose by 6.5 per cent to €907.4 million (2018: €851.9 million) due to increased amortisation of deferred acquisition costs in life insurance. Other operating expenses increased by 8.0 per cent to €499.7 million (2018: €462.7 million) as a result of higher staff and IT costs. This line item includes expenses for the innovation and investment programme amounting to around €51 million (2018: approx. €43 million).
The cost ratio after reinsurance, i.e. the ratio of total operating expenses 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 indexlinked life insurance, increased to 27.2 per cent during the past year (2018: 25.9 per cent) as a result of the developments mentioned above. The cost ratio before reinsurance rose to 26.7 per cent (2018: 25.2 per cent).
| Property and casualty insurance | |||
|---|---|---|---|
| In € million | 2019 | 2018 | 2017 |
| Premiums written | 2,846.8 | 2,774.4 | 2,639.7 |
| Insurance benefits (net) | –1,719.5 | –1,690.1 | –1,644.8 |
| Loss ratio (after reinsurance) | 64.2% | 65.4% | 65.9% |
| Operating expenses (net) | –861.2 | –811.0 | –788.5 |
| Cost ratio (after reinsurance) | 32.2% | 31.4% | 31.6% |
| Combined ratio (after reinsurance) | 96.4% | 96.8% | 97.5% |
| Net investment income | 122.1 | 128.1 | 119.7 |
| Earnings before taxes | 116.0 | 120.3 | 95.1 |
| Technical provisions (net) | 3,061.3 | 2,970.6 | 2,939.7 |
| Health insurance In € million |
2019 | 2018 | 2017 |
|---|---|---|---|
| Premiums written | 1,130.8 | 1,086.4 | 1,042.0 |
| Insurance benefits (net) | –960.3 | –908.0 | –877.6 |
| Operating expenses (net) | –187.8 | –183.9 | –168.0 |
| Cost ratio (after reinsurance) | 16.7% | 17.0% | 16.2% |
| Net investment income | 109.0 | 103.4 | 116.4 |
| Earnings before taxes | 94.9 | 96.2 | 109.7 |
| Technical provisions (net) | 3,359.1 | 3,190.9 | 3,037.7 |
The technical result of the UNIQA Group deteriorated by a substantial 25.2 per cent to €99.5 million in 2019 (2018: €133.1 million) due to the increased cost burden. Operating profit improved slightly by 1.4 per cent to €354.9 million (2018: €350.1 million).
Earnings before taxes at UNIQA remained virtually unchanged despite
The UNIQA Group's investment portfolio (including investment property, financial assets accounted for using the equity method and other investments) expanded by €1,287.7 million to €20,624.8 million in the 2019 financial year (31 December 2018: €19,337.1 million). This was mainly due to the general fall in interest rates on the international financial markets.
Net investment income remained on a par with the previous year at €585.2 million (2018: €585.0 million) despite the persistently low interest rates, thanks mainly to increased gains from the sale of real estate and fixedincome securities. The recognition of the 14.3 per cent equity-accounted holding in STRABAG SE also contributed €57.4 million to net income in 2019 (2018: €51.4 million). The previous year's figure had included a capital gain of €47.4 million from the sale of the indirect holding in Casinos Austria Aktiengesellschaft. A detailed description of net investment income can be found in the consolidated financial statements (see note 4 in the consolidated financial statements).
Other income rose by 8.5 per cent to €192.4 million in 2019 (2018: €177.3 million), while other operating expenses fell by 8.9 per cent to €191.1 million in the reporting year (2018: €209.7 million).
the poorer technical result, rising slightly by 0.4 per cent to €295.7 million (2018: €294.6 million). This was possible because the weaker technical result was offset by a rise in other comprehensive income. The profit/(loss) for the period rose by 0.6 per cent to €236.5 million (2018: €235.1 million). Income tax expense fell to €59.2 million in 2019 (2018: €59.5 million), while the tax burden was 20.0 per cent (2018: 20.2 per cent).
The consolidated profit, i.e. the proportion of the net profit for the period attributable to the shareholders of UNIQA Insurance Group AG, amounted to €232.4 million (2018: €243.3 million). This pushed earnings per share down slightly to €0.76 (2018: €0.79).
Operating return on equity (earnings before taxes and amortisation of goodwill and impairment losses in relation to average equity, including non-controlling interests and excluding the accumulated profits of the valuation of financial instruments available for sale) came to 10.6 per cent in 2019 (2018: 10.5 per cent). The return on equity (after tax and non-controlling interests) declined to 7.3 per cent in the reporting year (2018: 7.9 per cent).
1) Proposal to the Annual General Meeting
Total equity attributable to the shareholders of UNIQA Insurance Group AG increased by €428.9 million to €3,401.0 million in the past financial year (31 December 2018: €2,972.1 million). This was due to the increased measurement of financial instruments available for sale caused by the general fall in interest rates. Noncontrolling interests came to €19.4 million (31 December 2018: €14.4 million). Total assets amounted to €28,728.4 million at 31 December 2019 (31 December 2018: €28,503.8 million).
Operating return on equity In per cent
On this basis, the Management Board will propose a dividend of €0.54 per share to the Supervisory Board and the Annual General Meeting (2018: €0.53 per share).
| Life insurance | |||
|---|---|---|---|
| In € million | 2019 | 2018 | 2017 |
| Premiums written including savings portions from unit-linked and index-linked life insurance |
1,394.9 | 1,448.6 | 1,611.6 |
| Insurance benefits (net) | –977.3 | –1,035.7 | –1,025.0 |
| Operating expenses (net) | –358.1 | –319.8 | –319.5 |
| Cost ratio (after reinsurance) | 26.1% | 22.6% | 20.3% |
| Net investment income | 354.1 | 353.5 | 336.0 |
| Earnings before taxes | 84.8 | 78.2 | 59.9 |
| Technical provisions (net) | 15,666.7 | 15,483.4 | 15,815.9 |
| of which technical provisions for unit-linked and index-linked life insurance (net) |
4,646.0 | 4,721.8 | 4,727.4 |
working part time. The average age in the past year was 44 years (2018: 44 years).
In Austria almost all employees have a share in the company's success through some form of variable participation programme. This will be either a bonus for managers and selected key employees or an employee participation programme. In 2019 14 per cent (2018: 14 per cent) of employees participated in the bonus system for managers and selected key employees – a variable
remuneration system that is tied both to the success of the company and to personal performance. In 2019 a total of 79 per cent took part in the employee participation programme (2018: 76 per cent) in the form of a bonus. Everyone who has an employment relationship for the entire financial year is entitled to participate. Whether an employee participation bonus is paid depends on whether a profit target is met and to what extent other important corporate goals are achieved.
In addition, UNIQA offers young people in training the opportunity to get to know foreign cultures and make international contacts. Currently 81 apprentices are being trained.
UNIQA's net cash flow from operating activities amounted to €519.9 million in 2019 (2018: €–4.8 million). The cash flow from investing activities was €–526.9 million (2018: €210.0 million) while net cash flow from financing activities came to €–958.9 million (2018: €588.9 million). Overall, cash and cash equivalents fell by €964.8 million to €479.6 million in the 2019 financial year (2018: €1,444.4 million).
In 2019 the average number of employees (full-time equivalents, or FTEs) at UNIQA rose slightly to 13,038 (2018: 12,818). These included 4,202 (2018: 4,271) field sales employees. The number of employees in administration amounted to 8,836 (2018: 8,547).
In 2019 the Group had an average of 2,766 FTEs (2018: 2,708) in the Central Europe (CE) region – Poland, Slovakia, the Czech Republic and Hungary – as well as 2,278 FTEs (2018: 2,242) in the Southeastern Europe (SEE) region – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia and Serbia – and 1,647 FTEs (2018: 1,654) in the Eastern Europe (EE) region – Romania and Ukraine. There were 112 FTEs (2018: 108) working in Russia (RU). The average number of FTEs in the Western European markets in 2019 was 42 (2018: 48). A total of 6,193 FTEs were employed in Austria (2018: 6,058). Including the employees of the general agencies working exclusively for UNIQA, the total number of people working for the Group amounts to about 19,200.
In 2019 women made up 55 per cent of the staff working in administrative positions at UNIQA in Austria (2018: 55 per cent). In sales the ratio was 82 per cent men to 18 per cent women (2018: 83 per cent men to 17 per cent women). 15.4 per cent (2018: 14.6 per cent) of employees were
| UNIQA Austria | |||
|---|---|---|---|
| In € million | 2019 | 2018 | 2017 |
| Premiums written including savings portions from unit-linked and index-linked life insurance |
3,800.8 | 3,734.4 | 3,656.6 |
| Cost ratio (after reinsurance) | 20.8% | 18.6% | 18.3% |
| Combined ratio (after reinsurance) | 93.9% | 91.6% | 91.8% |
| Earnings before taxes | 168.6 | 231.7 | 262.5 |
At UNIQA Austria, premiums written including savings portions from unit-linked and index-linked life insurance increased by 1.8 per cent to €3,800.8 million in 2019 (2018: €3,734.4 million). Recurring premiums also rose by 1.8 per cent to €3,775.7 million (2018: €3,707.4 million). In contrast, single-premium business fell slightly by 7.1 per cent to €25.1 million (2018: €27.0 million).
Including savings portions from unit-linked and indexlinked life insurance, the volume of premiums earned at UNIQA Austria amounted to €3,057.0 million (2018: €3,031.8 million). The volume of premiums earned (net, in accordance with IFRSs) rose by 1.2 per cent to €2,845.4 million in 2019 (2018: €2,811.6 million).
While premiums written in property and casualty insurance rose by a very pleasing 3.4 per cent to €1,760.7 million (2018: €1,703.5 million), they increased even more strongly in health insurance, up by 4.7 per cent to €1,056.3 million (2018: €1,008.9 million). In life insurance (including savings portions from unit-linked and index-linked life insurance), by contrast, they fell by 3.7 per cent to €983.9 million (2018: €1,022.0 million).
| Property and casualty insurance | |||
|---|---|---|---|
| In € million | 2019 | 2018 | 2017 |
| Premiums written | 1,760.7 | 1,703.5 | 1,621.8 |
| Insurance benefits (net) | –688.3 | –691.2 | –675.8 |
| Loss ratio (after reinsurance) | 65.6% | 66.9% | 67.6% |
| Operating expenses (net) | –297.4 | –255.4 | –241.8 |
| Cost ratio (after reinsurance) | 28.3% | 24.7% | 24.2% |
| Combined ratio (after reinsurance) | 93.9% | 91.6% | 91.8% |
| Net investment income | 33.7 | 39.0 | 43.0 |
| Earnings before taxes | 83.1 | 112.8 | 110.2 |
| Technical provisions (net) | 1,099.3 | 1,090.3 | 1,056.1 |
In property and casualty insurance, premiums earned (net, according to IFRSs) rose by 1.6 per cent to €1,049.8 million (2018: €1,033.1 million); in health insurance, they increased by 4.2 per cent to €1,050.6 million (2018: €1,008.1 million). However, in life insurance, they fell by 3.3 per cent to €744.9 million (2018: €770.4 million). Including savings portions from unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €956.6 million (2018: €990.6 million).
Net insurance benefits at UNIQA Austria increased slightly by 1.1 per cent to €2,417.3 million in 2019 (2018: €2,390.3 million). They fell 0.4 per cent in property and casualty insurance to €688.3 million (2018: €691.2 million). As a result, the loss ratio in property and casualty insurance fell to 65.6 per cent in the 2019 financial year (2018: 66.9 per cent). Nevertheless, the combined ratio in the UNIQA Austria segment increased after reinsurance to 93.9 per cent (2018: 91.6 per cent) due to the higher cost ratio. Net insurance benefits in health insurance increased
by 6.3 per cent to €918.7 million (2018: €864.4 million). However, in life insurance, they fell by 2.9 per cent to €810.3 million (2018: €834.7 million).
Operating expenses less reinsurance commission and share of profit from reinsurance ceded, which amounted to €190.5 million (2018: €183.2 million), increased by 12.5 per cent to €635.7 million in the 2019 financial year (2018: €564.9 million) as a result of higher staff and IT costs. In property and casualty insurance, they rose by 16.4 per cent to €297.4 million (2018: €255.4 million). In health insurance, they also grew 8.9 per cent to reach €153.3 million (2018: €140.9 million). In life insurance, too, they increased by 9.7 per cent to €185.1 million (2018: €168.6 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 rose to 20.8 per cent during the past year (2018: 18.6 per cent).
Net investment income in the UNIQA Austria segment rose by 1.4 per cent to €424.1 million in 2019 (2018: €418.3 million).
| Health insurance | |||
|---|---|---|---|
| In € million | 2019 | 2018 | 2017 |
| Premiums written | 1,056.3 | 1,008.9 | 979.7 |
| Insurance benefits (net) | –918.7 | –864.4 | –849.5 |
| Operating expenses (net) | –153.3 | –140.9 | –128.7 |
| Cost ratio (after reinsurance) | 14.6% | 14.0% | 13.1% |
| Net investment income | 101.2 | 103.0 | 117.7 |
| Earnings before taxes | 80.0 | 107.0 | 116.8 |
| Technical provisions (net) | 3,311.3 | 3,151.4 | 3,005.2 |
In € million
| Life insurance | |||
|---|---|---|---|
| In € million | 2019 | 2018 | 2017 |
| Premiums written including savings portions | |||
| from unit-linked and index-linked life insurance | 983.9 | 1,022.0 | 1,055.2 |
| Insurance benefits (net) | –810.3 | –834.7 | –814.5 |
| Operating expenses (net) | –185.1 | –168.6 | –177.9 |
| Cost ratio (after reinsurance) | 19.3% | 17.0% | 17.6% |
| Net investment income | 289.1 | 276.3 | 291.7 |
| Earnings before taxes | 5.5 | 12.0 | 35.6 |
| Technical provisions (net) | 14,018.1 | 13,910.8 | 14,089.6 |
Earnings before taxes at UNIQA Austria declined by 27.2 per cent to €168.6 million in the reporting year (2018: €231.7 million), mainly due to higher costs. They fell by 26.3 per cent in property and casualty insurance to €83.1 million (2018: €112.8 million). In health insurance, they decreased by 25.3 per cent to €80.0 million (2018: €107.0 million). Earnings before taxes also dropped in life insurance, in this case by 54.0 per cent to €5.5 million (2018: €12.0 million).
In € million
| UNIQA International In € million |
2019 | 2018 | 2017 |
|---|---|---|---|
| Premiums written including savings portions from unit-linked and index-linked life insurance |
1,561.2 | 1,564.6 | 1,608.5 |
| Cost ratio (after reinsurance) | 38.3% | 35.6% | 31.2% |
| Combined ratio (after reinsurance) | 95.0% | 95.5% | 97.1% |
| Earnings before taxes | 70.6 | 55.1 | 42.8 |
In the UNIQA International segment, premiums written including savings portions from unit-linked and index-linked life insurance fell slightly by 0.2 per cent to €1,561.2 million in the 2019 financial year (2018: €1,564.6 million). While recurring premiums rose by 0.2 per cent to €1,481.8 million (2018: €1,479.0 million), single premiums decreased as planned by 7.2 per cent to €79.5 million (2018: €85.7 million). That means that in 2019 the international companies contributed a total of 29.1 per cent (2018: 29.5 per cent) to total Group premiums.
Including savings portions from unit-linked and indexlinked life insurance, UNIQA International's volume of premiums earned amounted to €1,082.6 million (2018: €1,059.1 million). The volume of premiums earned (net, in accordance with IFRSs) increased in 2019 by 2.7 per cent to €984.5 million (2018: €958.4 million).
Premiums written in property and casualty insurance increased by 0.9 per cent to €1,076.9 million (2018: €1,067.4 million), whereas they fell in health insurance by 3.9 per cent to €74.6 million (2018: €77.6 million). In life insurance, premiums written including savings portions from unit-linked and index-linked life insurance fell by 2.4 per cent to €409.8 million (2018: €419.7 million) due to the planned withdrawal from the single-premium business.
In property and casualty insurance, premiums earned (net, according to IFRSs) rose by 5.0 per cent to €614.1 million (2018: €584.8 million); in health insurance, they increased by 1.7 per cent to €67.0 million (2018: €65.8 million). However, in life insurance, they fell by 1.4 per cent to €303.5 million (2018: €307.7 million). Including savings portions from unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €401.6 million (2018: €408.4 million).
In the Central Europe region (CE) – Poland, Slovakia, the Czech Republic and Hungary – premiums written including savings portions from unit-linked and index-linked life insurance increased by 1.0 per cent to €943.7 million in the 2019 financial year (2018: €934.0 million). In Eastern
| Property and casualty insurance | |||
|---|---|---|---|
| In € million | 2019 | 2018 | 2017 |
| Premiums written | 1,076.9 | 1,067.4 | 997.3 |
| Insurance benefits (net) | –347.6 | –339.2 | –316.2 |
| Loss ratio (after reinsurance) | 56.6% | 58.0% | 58.1% |
| Operating expenses (net) | –235.7 | –219.6 | –212.5 |
| Cost ratio (after reinsurance) | 38.4% | 37.5% | 39.0% |
| Combined ratio (after reinsurance) | 95.0% | 95.5% | 97.1% |
| Net investment income | 25.3 | 23.8 | 28.2 |
| Earnings before taxes | 24.1 | 17.5 | 15.5 |
| Technical provisions (net) | 678.6 | 653.7 | 631.8 |
(2018: €79.2 million), benefits in Russia were down 12.6 per cent year on year. It was similar in Western Europe, where they fell to €0.8 million (2018: €13.7 million).
Operating expenses less reinsurance commission and share of profit from reinsurance ceded, which amounted to €133.0 million (2018: €130.6 million), increased by 10.2 per cent to €414.9 million in the 2019 financial year (2018: €376.6 million). In prop-
Europe (EE) – Romania and Ukraine – they rose sharply by 13.8 per cent to €201.5 million (2018: €177.0 million). In Southeastern Europe (SEE), comprising Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia and Serbia, the premiums written including savings portions from unit-linked and index-linked life insurance increased by 4.0 per cent to €319.4 million (2018: €307.0 million) in the 2019 financial year. In Russia (RU), by contrast, they fell by 10.8 per cent to €88.5 million (2018: €99.2 million). They also declined in Western Europe (WE) – Liechtenstein and Switzerland – in this case to €8.1 million (2018: €47.3 million).
Net insurance benefits at UNIQA International fell by 3.6 per cent to €541.6 million in 2019 (2018: €561.8 million). They rose 2.5 per cent in property and casualty insurance to €347.6 million (2018: €339.2 million). In health insurance, they fell by 5.8 per cent to €38.8 million (2018: €41.3 million). They also decreased in life insurance, down by 14.5 per cent to €155.1 million (2018: €181.4 million). This pushed the loss ratio in property and casualty insurance down to 56.6 per cent in 2019 (2018: 58.0 per cent), while the combined ratio after reinsurance in the UNIQA International segment improved to 95.0 per cent (2018: 95.5 per cent).
In the Central Europe region, insurance benefits rose by 2.3 per cent to €278.4 million in 2019 (2018: €272.2 million); in the Eastern Europe region, however, they fell by 11.2 per cent to €55.6 million (2018: €62.7 million). In Southeastern Europe, meanwhile, they increased by 2.6 per cent to €137.5 million (2018: €134.0 million). At €69.2 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 38.3 per cent during the past year (2018: 35.6 per cent).
erty and casualty insurance, they rose by 7.4 per cent to €235.7 million (2018: €219.6 million); in health insurance, by contrast, they fell by 13.6 per cent to €21.3 million (2018: €24.7 million). In life insurance, they increased 19.3 per cent to reach €157.9 million (2018: €132.4 million).
In Central Europe, operating expenses less reinsurance commission and share of profit from reinsurance ceded rose by 0.7 per cent to €190.9 million in the reporting year (2018: €189.6 million). In Eastern Europe, they rose by 46.9 per cent to €83.5 million (2018: €56.9 million), and in Southeastern Europe they increased by 8.9 per cent to €101.3 million (2018: €93.1 million). In Russia, costs rose by 17.9 per cent to €16.4 million (2018: €13.9 million), while they fell in Western Europe by 35.3 per cent to €2.1 million (2018: €3.2 million). In administration (UNIQA International AG), costs increased by 3.3 per cent to €20.7 million (2018: €20.0 million).
| Health insurance | |||
|---|---|---|---|
| In € million | 2019 | 2018 | 2017 |
| Premiums written | 74.6 | 77.6 | 62.8 |
| Insurance benefits (net) | –38.8 | –41.3 | –36.3 |
| Operating expenses (net) | –21.3 | –24.7 | –21.8 |
| Cost ratio (after reinsurance) | 31.8% | 37.5% | 38.1% |
| Net investment income | 0.4 | 0.5 | 0.3 |
| Earnings before taxes | 7.1 | 0.2 | –0.1 |
| Technical provisions (net) | 44.8 | 37.2 | 32.3 |
| Life insurance In € million |
2019 | 2018 | 2017 |
|---|---|---|---|
| Premiums written including savings portions from unit-linked and index-linked life insurance |
409.8 | 419.7 | 548.4 |
| Insurance benefits (net) | –155.1 | –181.4 | –185.2 |
| Operating expenses (net) | –157.9 | –132.4 | –121.7 |
| Cost ratio (after reinsurance) | 39.3% | 32.4% | 22.6% |
| Net investment income | 35.9 | 57.5 | 42.9 |
| Earnings before taxes | 39.4 | 37.5 | 27.4 |
| Technical provisions (net) | 1,654.4 | 1,577.7 | 1,647.4 |
Earnings before taxes in the UNIQA International segment rose by 28.1 per cent to €70.6 million in the reporting year (2018: €55.1 million) on account of the better technical result. Earnings before taxes in property and casualty insurance improved to €24.1 million (2018: €17.5 million); in health insurance, they increased to €7.1 million (2018: €0.2 million). Lastly, in life insurance, earnings before
Net investment income in the segment dropped by 24.6 per cent to €61.6 million in 2019 (2018: €81.7 million).
| Reinsurance | |||
|---|---|---|---|
| In € million | 2019 | 2018 | 2017 |
| Premiums written | 1,129.2 | 1,098.3 | 1,091.6 |
| Insurance benefits (net) | –700.4 | –682.4 | –692.5 |
| Operating expenses (net) | –303.7 | –299.6 | –320.2 |
| Cost ratio (after reinsurance) | 29.5% | 30.4% | 31.9% |
| Earnings before taxes | 33.5 | 20.9 | 3.2 |
| Technical provisions (net) | 1,406.4 | 1,352.1 | 1,458.2 |
In the reinsurance segment, the premium volume written rose by 2.8 per cent to €1,129.2 million in 2019 (2018: €1,098.3 million).
Premiums written including savings portions from unit-linked and index-linked life insurance Reinsurance In € million
The volume of premiums earned (net, in accordance with IFRSs) rose by 4.4 per cent to €1,029.3 million (2018: €985.6 million).
Net insurance benefits rose by 2.6 per cent to €700.4 million in 2019 (2018: €682.4 million).
Operating expenses, less reinsurance commission and share of profit from reinsurance ceded in the amount of €10.1 million (2018: €8.6 million), increased by 1.4 per cent to €303.7 million (2018: €299.6 million).
Net investment income climbed to €29.5 million in 2019 (2018: €23.5 million).
This brought earnings before taxes in the reinsurance segment up by 60.4 per cent to €33.5 million (2018: €20.9 million).
| Group functions In € million |
2019 | 2018 | 2017 |
|---|---|---|---|
| Operating expenses (net) | –48.5 | –68.4 | –55.3 |
| Net investment income | 356.3 | 309.8 | 267.2 |
| Earnings before taxes | 255.0 | 185.6 | 153.7 |
In the Group functions segment, operating expenses dropped by 29.1 per cent to €48.5 million (2018: €68.4 million).
Net investment income amounted to €356.3 million (2018: €309.8 million).
Earnings before taxes rose to €255.0 million (2018: €185.6 million) in the 2019 financial year.
| Consolidation In € million |
2019 | 2018 | 2017 |
|---|---|---|---|
| Net investment income | –286.2 | –248.3 | –247.6 |
| Earnings before taxes | –232.1 | –198.7 | –197.6 |
Net investment income in the consolidation segment in 2019 amounted to €–286.2 million (2018: €–248.3 million).
Earnings before taxes amounted to €–232.1 million (2018: €–198.7 million).
On 7 February 2020, UNIQA Österreich Versicherungen AG signed a purchase agreement with AXA S.A. and Société Beaujon for the acquisition of shares in the AXA subsidiaries and branches in Poland, the Czech Republic and Slovakia. The purchase price is around €1 billion. The objects of purchase are life and non-life insurance companies, including their branches, as well as securities companies, pension funds and service companies of the AXA Group in the aforementioned countries. This expansion in the growth region of Central and Eastern Europe will see some five million customers move over to UNIQA. The completion of the transaction is subject to all necessary regulatory approvals.
On 19 February 2020, the Management Board and Supervisory Board of UNIQA Insurance Group AG decided to merge UNIQA International AG as the assigning company with UNIQA Österreich Versicherungen AG as the receiving company in the course of 2020, subject to obtaining all regulatory approvals. UNIQA Insurance Group AG will continue to exist as a holding company. However, it will transfer other functions and its holdings in certain service companies – in particular, all internal Group services – to UNIQA Österreich Versicherungen AG. UNIQA Insurance Group AG is to surrender its reinsurance licence and transfer its reinsurance business to UNIQA Österreich Versicherungen AG and UNIQA Re AG. This agreed restructuring will simplify and streamline the Group's structure, enable more efficient Group management and a leaner management structure, and strengthen the customeroriented organisation.
Since early 2020, a massive spread of the coronavirus (COVID-19) has been observed throughout Europe. Analyses have shown that for UNIQA, as an insurer in the potentially affected segments health insurance, life insurance and business interruption insurance, no significant effects are to be expected with regard to insurance benefits at this time. The overall economic effects of the spread of the coronavirus are still uncertain – in particular, the development of the capital markets as a whole is not yet foreseeable and the consequences for UNIQA cannot therefore be conclusively assessed at present.
The economic slowdown in Austria was mild in 2019. The domestic economy was showing a solid development with an expected GDP increase of 1.6 per cent, and towards the end of the year there were increasing signs of stabilisation on a moderate growth path. Nevertheless, Austria is not completely immune to the international economic risks. For example, a decline in international trade and the demand for industrial goods are curbing growth in the manufacturing sector. By contrast, the trend in the service sector was still very pleasing, and the demand amongst private consumers remained brisk thanks to the robust labour market: Austria recorded both employment and wage growth, and the unemployment rate was at a very low level of 4.5 per cent at the beginning of 2020. Austria has also been profiting from the continuing favourable economic situation in the neighbouring countries of Central and Eastern Europe.
Economic growth in UNIQA's core markets in CEE (not including Russia) stood at 3.7 per cent in 2019 according to forecasts and has thus slowed down compared with 2018. Nevertheless, CEE is amongst the growth regions enjoying the most rapid expansion and has so far shown itself to be highly resistant to the economic slowdown in the eurozone – an important trading partner.
At the beginning of 2020, economic growth in Austria was expected to be comparable to that of the previous year, although the massive spread of the coronavirus is overshadowing developments. Disruptions of economic activities caused by people not working, interrupted supply chains,
slumps in sectors directly affected by the impact of the coronavirus such as tourism and transport, and the influence of government measures to contain the further spread of the disease are expected to have a major, albeit temporary, effect on the development of the Austrian economy.
According to forecasts by the Austrian Insurance Association, total premium revenues in Austria are expected to increase again by 1.9 per cent to around €18 billion in 2020. Growth of 3.5 per cent is forecast for property insurance; personal insurance is only likely to grow by 0.3 per cent. Life insurance continues to hold back performance with a decline of an estimated –1.6 per cent, especially in the area of single premiums (–4.0 per cent). Health insurance, on the other hand, is expected to grow by 3.5 per cent.
The sustained positive economic performance in Central and Eastern Europe should also lead to further increases in income over the next few years and to increased consumer spending by households. The fact that the insurance industry still needs to catch up in CEE is reflected in the so-called insurance density (annual per capita spending on insurance products). In Ukraine, per capita insurance spending is just €36; in the countries of Southeastern Europe this number is around €130, and in Central Europe it is around €400. In comparison, the insurance density in Austria is just under €2,000 and is at €2,150 for the EU as a whole.
UNIQA expects long-term growth dynamism in the CEE markets and therefore assumes that the insurance industry in this region will continue to develop more dynamically in 2020 than in Western Europe and Austria.
At the beginning of 2020, the coronavirus (COVID-19) spread rapidly throughout Europe. The impact on public health systems, public life, macroeconomic development and global capital markets is enormous. The consequences for the insurance industry cannot be estimated at the moment. Due to the uncertainties associated with the current situation and the ongoing development of the UNIQA 3.0 strategic programme, UNIQA is not giving a profit outlook for 2020 at present.
with 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). As at 31 December 2019, the company held 2,034,739 treasury shares. 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 Gesellschaft m.b.H. as the transferring company, with UNIQA Insurance Group AG as acquiring company (payment 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.
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 functional systems cannot guarantee absolute security with regard to the identification and management of risks.
The aim of the internal control system in the accounting process is to guarantee sufficient security by means of implementing 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.
The company's accounting process is incorporated into the UNIQA Group accounting process. In addition to the SAP S/4HANA accounting system, a harmonised insurance-specific IT system is also used for the company's purposes. Compliance guidelines and manuals for company organisation, accounting and consolidation exist for the purpose of guaranteeing secure processes.
An inventory and appropriate control measures were conducted 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 corrective measures. The procedure for the identification and control of risks is evaluated on a regular basis by an external independent auditor.
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.
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 changes requires constant monitoring of the effectiveness of all systems. The foundations for this are:
In the context of compliance and internal control and risk management systems, the Management Board reports regularly to the Supervisory Board and the Audit Committee by means of Internal Audit department reports and the separate engagement of external auditors.
The separate financial statements of UNIQA Insurance Group AG, prepared in accordance with the Austrian Commercial Code and the Insurance Supervisory Act, report an annual net profit for the 2019 financial year in the amount of €168,233,424.34 (2018: €164,365,414.37). The Management Board will propose to the Annual General Meeting on 25 May 2020 that this net profit be used for a dividend of 54 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, 20 March 2020
Andreas Brandstetter Chairman of the Management Board
Erik Leyers Member of the Management Board
Kurt Svoboda Member of the Management Board
UNIQA Insurance Group AG (UNIQA) is a company domiciled 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 authorities (Financial Market Authority, European Insurance and Occupational Pensions Authority). The requirements include in particular the quantitative and qualitative solvency requirements.
Unless otherwise stated, these consolidated financial statements are prepared in thousand euros; rounding differences may occur through the use of automated calculation tools when totalling rounded amounts and percentages. The functional currency at UNIQA is the euro.
UNIQA's reporting date is 31 December.
The consolidated financial statements were prepared in line with the International Financial Reporting Standards (IFRSs) as well as the provisions of the International Financial 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.
The consolidated financial statements require the Group Management Board to make discretionary decisions, estimates 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 assumptions 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 determining 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 (determination of fair values)
Note 5: Technical provisions (assumptions and models used in calculating actuarial provisions)
Note 11: Intangible assets (assumptions used in determining goodwill)
Note 15: Deferred taxes (assessment of the ability to realise deferred tax assets)
Note 17: Defined benefit plans (calculation of the present value of the defined benefit obligations)
The following table provides a summary of the measurement standards for the individual balance sheet items in the assets and liabilities:
| Assets | |
|---|---|
| Property, plant and equipment | At lower of amortised cost or recoverable amount |
| Intangible assets | |
| - with determinable useful life | At lower of amortised cost or recoverable amount |
| - with indeterminable useful life | At lower of acquisition cost or recoverable amount |
| Investments | |
| Investment property | At lower of amortised cost or recoverable amount |
| 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 and cash equivalents | Amortised cost |
| Assets in disposal groups held for sale | Lower of carrying amount and fair value less cost to sale |
| 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 |
| Assets In € thousand |
Notes | 31/12/2019 | 31/12/2018 |
|---|---|---|---|
| Property, plant and equipment | 10 | 351,780 | 311,062 |
| Intangible assets | 11 | 1,641,116 | 1,618,885 |
| Investments | |||
| Investment property | 1 | 1,137,444 | 1,104,146 |
| Financial assets accounted for using the equity method | 2 | 642,414 | 599,105 |
| Other investments | 3 | 18,844,939 | 17,633,815 |
| Unit-linked and index-linked life insurance investments | 6 | 4,680,403 | 4,751,183 |
| Reinsurers' share of technical provisions | 5 | 350,022 | 413,361 |
| Reinsurers' share of technical provisions for unit-linked and index-linked life insurance | 6 | 113 | 101 |
| Receivables, including insurance receivables | 12 | 546,659 | 540,709 |
| Income tax receivables | 16 | 48,660 | 52,308 |
| Deferred tax assets | 15 | 5,237 | 5,758 |
| Cash and cash equivalents | 13 | 479,621 | 1,444,391 |
| Assets in disposal groups held for sale | 14 | 0 | 28,976 |
| Total assets | 28,728,409 | 28,503,801 | |
| Equity and liabilities In € thousand Equity |
Notes | 31/12/2019 | 31/12/2018 |
| Portion attributable to shareholders of UNIQA Insurance Group AG | |||
| Subscribed capital and capital reserves | 20 | 1,789,923 | 1,789,923 |
| Treasury shares | 21 | ‒16,614 | ‒16,614 |
| Accumulated results | 1,627,714 | 1,198,803 | |
| 3,401,023 | 2,972,112 | ||
| Non-controlling interests | 23 | 19,399 | 14,438 |
| 3,420,422 | 2,986,550 | ||
| Liabilities | |||
| Subordinated liabilities | 870,110 | 869,832 | |
| Technical provisions | 5 | 17,791,006 | 17,336,358 |
| Technical provisions for unit-linked and index-linked life insurance | 6 | 4,646,152 | 4,721,904 |
| Financial liabilities | 24 | 75,516 | 798,484 |
| Other provisions | 17 | 685,709 | 662,998 |
| Liabilities and other items classified as liabilities | 25 | 803,095 | 807,210 |
| Income tax liabilities | 16 | 60,669 | 64,378 |
| Deferred tax liabilities | 15 | 375,729 | 254,999 |
| Liabilities in disposal groups held for sale | 14 | 0 | 1,088 |
| 25,307,986 | 25,517,251 | ||
| Total equity and liabilities | 28,728,409 | 28,503,801 |
| In € thousand | Notes | 1‒12/2019 | 1‒12/2018 adjusted |
|---|---|---|---|
| Premiums earned (net) | 7 | ||
| Gross | 5,034,721 | 4,950,079 | |
| Reinsurers' share | ‒173,651 | ‒189,335 | |
| 4,861,071 | 4,760,744 | ||
| Technical interest income | 331,238 | 335,586 | |
| Other insurance income | |||
| Gross | 21,438 | 32,302 | |
| Reinsurers' share | 75 | 92 | |
| 21,514 | 32,395 | ||
| Insurance benefits | 8 | ||
| Gross | ‒3,756,264 | ‒3,800,194 | |
| Reinsurers' share | 99,186 | 166,447 | |
| ‒3,657,078 | ‒3,633,748 | ||
| Operating expenses | 9 | ||
| Expenses for the acquisition of insurance | ‒925,258 | ‒865,546 | |
| Other operating expenses | ‒499,741 | ‒462,706 | |
| Reinsurance commission and share of profit from reinsurance ceded | 17,883 | 13,599 | |
| ‒1,407,116 | ‒1,314,653 | ||
| Other technical expenses | |||
| Gross | ‒46,360 | ‒41,525 | |
| Reinsurers' share | ‒3,742 | ‒5,725 | |
| ‒50,102 | ‒47,250 | ||
| Technical result | 99,526 | 133,074 | |
| Net investment income | 4 | ||
| Income from investments | 768,959 | 917,575 | |
| Expenses from investments | ‒248,143 | ‒441,735 | |
| Financial assets accounted for using the equity method | 64,428 | 109,189 | |
| 585,244 | 585,029 | ||
| Other income | 26 | 192,359 | 177,258 |
| Reclassification of technical interest income | ‒331,238 | ‒335,586 | |
| Other expenses | 27 | ‒191,019 | ‒209,683 |
| Non-technical result | 255,346 | 217,018 | |
| Operating profit/(loss) | 354,872 | 350,092 | |
| Amortisation of goodwill and impairment losses | ‒4,562 | ‒2,674 | |
| Finance cost | ‒54,643 | ‒52,800 | |
| Earnings before taxes | 295,667 | 294,618 | |
| Income taxes | 16 | ‒59,172 | ‒59,470 |
| Profit/(loss) for the period | 236,496 | 235,148 | |
| of which attributable to shareholders of UNIQA Insurance Group AG | 232,360 | 243,274 | |
| of which attributable to non-controlling interests | 4,135 | ‒8,126 | |
| Earnings per share (in €)1) | 0.76 | 0.79 | |
| 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).
| In € thousand | 1‒12/2019 | 1‒12/2018 |
|---|---|---|
| Profit/(loss) for the period | 236,496 | 235,148 |
| Items not reclassified to profit or loss in subsequent periods | ||
| Revaluations of defined benefit obligations | ||
| Gains (losses) recognised in equity | ‒66,648 | ‒17,517 |
| Gains (losses) recognised in equity ‒ deferred tax | 16,651 | 4,379 |
| Other income from financial assets accounted for using the equity method | ||
| Gains (losses) recognised in equity | 459 | 4,283 |
| ‒49,538 | ‒8,855 | |
| Items reclassified to profit or loss in subsequent periods | ||
| Currency translation | ||
| Gains (losses) recognised in equity | 10,294 | ‒7,155 |
| Recognised in the consolidated income statement | 10 | 0 |
| Measurement of financial instruments available for sale | ||
| Gains (losses) recognised in equity | 1,003,627 | ‒345,092 |
| Gains (losses) recognised in equity ‒ deferred tax | ‒136,544 | 61,103 |
| Gains (losses) recognised in equity ‒ deferred profit participation | ‒447,828 | 101,135 |
| Recognised in the consolidated income statement | ‒46,216 | ‒99,926 |
| Recognised in the consolidated income statement ‒ deferred tax | 13,724 | ‒1,525 |
| Recognised in the consolidated income statement ‒ deferred profit participation | 16,336 | 31,140 |
| Other income from financial assets accounted for using the equity method | ||
| Gains (losses) recognised in equity | 1,550 | ‒5,443 |
| Recognised in the consolidated income statement | 0 | 148 |
| 414,952 | ‒265,614 | |
| Other comprehensive income | 365,414 | ‒274,469 |
| Total comprehensive income | 601,910 | ‒39,320 |
| of which attributable to shareholders of UNIQA Insurance Group AG | 591,889 | ‒28,677 |
| of which attributable to non-controlling interests | 10,020 | ‒10,643 |
| In € thousand | Notes | 1‒12/2019 | 1‒12/2018 |
|---|---|---|---|
| Profit/(loss) for the period | 236,496 | 235,148 | |
| Impairment losses, amortisation of goodwill and other intangible assets, and depreciation of property, plant and equipment |
59,673 | 42,397 | |
| Impairment losses/reversal of impairment losses on other investments | 70,616 | 61,040 | |
| Gain/loss on the disposal of investments | ‒74,458 | ‒40,202 | |
| Change in deferred acquisition costs | 28,299 | ‒18,939 | |
| Change in securities at fair value through profit or loss | 110,137 | 143,880 | |
| Change in direct insurance receivables | ‒44,131 | 79,230 | |
| Change in other receivables | 51,724 | ‒43,006 | |
| Change in direct insurance liabilities | ‒2,603 | ‒270,341 | |
| Change in other liabilities | ‒11,103 | 56,505 | |
| Change in technical provisions | 10,731 | ‒16,238 | |
| Change in defined benefit obligations | ‒27,965 | ‒111,585 | |
| Change in deferred tax assets and deferred tax liabilities | 13,921 | 25,795 | |
| Change in other statement of financial position items | 98,525 | ‒148,439 | |
| Net cash flow from operating activities | 519,864 | ‒4,755 | |
| Proceeds from disposal of intangible assets and property, plant and equipment | 4,615 | 8,170 | |
| Payments for acquisition of intangible assets and property, plant and equipment | ‒165,074 | ‒122,833 | |
| Proceeds from disposal of consolidated companies | 0 | 56,887 | |
| Payments for acquisition of consolidated companies | ‒4,523 | ‒7,971 | |
| Proceeds from disposal and maturity of other investments | 3,810,353 | 5,826,647 | |
| Payments for acquisition of other investments | ‒4,243,088 | ‒5,834,229 | |
| Change in unit-linked and index-linked life insurance investments | 70,779 | 283,310 | |
| Net cash flow from investing activities | ‒526,938 | 209,981 | |
| Dividend payments | 20 | ‒164,809 | ‒158,143 |
| Transactions between owners | ‒54 | ‒1,438 | |
| Proceeds from other financing activities | 0 | 772,196 | |
| Payments from other financing activities | 24 | ‒794,017 | ‒23,704 |
| Net cash flow from financing activities | ‒958,880 | 588,911 | |
| Change in cash and cash equivalents | ‒965,954 | 794,137 | |
| of which due to acquisitions or disposals of consolidated subsidiaries | 58 | 1,894 | |
| Change in cash and cash equivalents due to movements in exchange rates | 1,185 | ‒54 | |
| Cash and cash equivalents at beginning of year | 13 | 1,444,391 | 650,307 |
| Cash and cash equivalents at end of period | 13 | 479,621 | 1,444,391 |
| Income taxes paid (Net cash flow from operating activities) | 45,053 | ‒31,229 | |
| Interest paid (Net cash flow from operating activities) | ‒60,945 | ‒58,876 | |
| Interest received (Net cash flow from operating activities) | 401,064 | 404,984 | |
| Dividends received (Net cash flow from operating activities) | 52,218 | 57,961 |
Accumulated In thousand Notes Subscribed capital and capital reserves Treasury shares Measurement of financial instruments available for sale Revaluations of defined benefit obligations At 1 January 2018 1,789,923 ‒16,614 420,649 ‒251,203 Change in basis of consolidation Dividends to shareholders Total comprehensive income ‒250,742 ‒13,690 Profit/(loss) for the period Other comprehensive income ‒250,742 ‒13,690 At 31 December 2018 1,789,923 ‒16,614 169,907 ‒264,893 At 1 January 2019 1,789,923 ‒16,614 169,907 ‒264,893 Change in basis of consolidation Dividends to shareholders 20 Total comprehensive income 398,051 ‒49,967 Profit/(loss) for the period Other comprehensive income 398,051 ‒49,967 At 31 December 2019 1,789,923 ‒16,614 567,958 ‒314,860
| Differences from currency translation |
Other accumulated results |
Portion attributable to shareholders of UNIQA Insurance Group AG |
Non-controlling interests |
Total equity |
|---|---|---|---|---|
| 3,249,386 | ||||
| ‒65,372 | ||||
| ‒158,143 | ||||
| ‒6,508 | 242,263 | ‒28,677 | ‒10,643 | ‒39,320 |
| 243,274 | 243,274 | ‒8,126 | 235,148 | |
| ‒6,508 | ‒1,011 | ‒271,951 | ‒2,518 | ‒274,469 |
| ‒179,722 | 1,473,511 | 2,972,112 | 14,438 | 2,986,550 |
| ‒179,722 | 1,473,511 | 2,972,112 | 14,438 | 2,986,550 |
| ‒287 | ‒287 | ‒2,942 | ‒3,228 | |
| ‒162,692 | ‒162,692 | ‒2,117 | ‒164,809 | |
| 9,436 | 234,369 | 591,889 | 10,020 | 601,910 |
| 232,360 | 232,360 | 4,135 | 236,496 | |
| 9,436 | 2,009 | 359,529 | 5,885 | 365,414 |
| ‒170,286 | 1,544,902 | 19,399 | 3,420,422 | |
| ‒173,214 | 1,388,456 ‒656 ‒156,552 |
3,157,998 ‒656 ‒156,552 3,401,023 |
91,388 ‒64,716 ‒1,591 |
results
The accounting and measurement methods of the segments 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 account: summation of the IFRS profits in the individual companies, taking the elimination of net investment income in the various segments and impairment of goodwill into consideration. All other consolidation effects (profit/(loss) for the period at associates, elimination of interim results, and other overall effects) are included in "Consolidation". 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:
as well as the Austrian holding company UNIQA International AG. This segment is divided on a regional basis into the following main areas:
| UNIQA Austria | UNIQA International | Reinsurance | |||||
|---|---|---|---|---|---|---|---|
| In € thousand | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | |
| Premiums written (gross), including savings portions from unit-linked and index-linked life insurance |
3,800,819 | 3,734,400 | 1,561,242 | 1,564,649 | 1,129,178 | 1,098,345 | |
| Premiums earned (net), including savings portions from unit-linked and index-linked life insurance |
3,057,035 | 3,031,811 | 1,082,632 | 1,059,062 | 1,029,297 | 985,588 | |
| Savings portions from unit-linked and index-linked life insurance (gross) |
211,683 | 219,802 | 98,083 | 100,712 | 0 | 0 | |
| Savings portions from unit-linked and index-linked life insurance (net) |
211,683 | 220,214 | 98,083 | 100,712 | 0 | 0 | |
| Premiums written (gross) | 3,589,137 | 3,514,598 | 1,463,159 | 1,463,937 | 1,129,178 | 1,098,345 | |
| Premiums earned (net) | 2,845,352 | 2,811,597 | 984,549 | 958,350 | 1,029,297 | 985,588 | |
| Premiums earned (net) ‒ intragroup | ‒704,769 | ‒662,714 | ‒381,412 | ‒387,285 | 1,084,309 | 1,044,792 | |
| Premiums earned (net) ‒ external | 3,550,121 | 3,474,312 | 1,365,961 | 1,345,636 | ‒55,012 | ‒59,203 | |
| Technical interest income | 300,108 | 309,474 | 31,130 | 26,112 | 0 | 0 | |
| Other insurance income | 3,842 | 12,213 | 20,576 | 21,921 | 216 | 251 | |
| Insurance benefits | ‒2,417,314 | ‒2,390,251 | ‒541,556 | ‒561,788 | ‒700,442 | ‒682,442 | |
| Operating expenses | ‒635,734 | ‒564,868 | ‒414,880 | ‒376,591 | ‒303,674 | ‒299,601 | |
| Other technical expenses | ‒14,873 | ‒14,768 | ‒40,075 | ‒34,419 | ‒15,430 | ‒12,100 | |
| Technical result | 81,383 | 163,398 | 39,745 | 33,585 | 9,966 | ‒8,303 | |
| Net investment income | 424,126 | 418,322 | 61,587 | 81,720 | 29,450 | 23,493 | |
| Income from investments | 539,199 | 512,177 | 89,737 | 96,550 | 43,163 | 35,801 | |
| Expenses from investments | ‒133,651 | ‒112,433 | ‒28,319 | ‒15,035 | ‒13,713 | ‒12,308 | |
| Financial assets accounted for using the equity | |||||||
| method | 18,578 | 18,578 | 169 | 206 | 0 | 0 | |
| Other income Reclassification of technical interest income |
1,565 ‒300,108 |
1,204 ‒309,474 |
23,334 ‒31,130 |
10,814 ‒26,112 |
2,540 0 |
12,897 0 |
|
| Other expenses | ‒11,470 | ‒14,739 | ‒15,400 | ‒39,724 | ‒5,544 | ‒4,298 | |
| Non-technical result | 114,113 | 95,312 | 38,392 | 26,699 | 26,446 | 32,092 | |
| Operating profit/(loss) | 195,495 | 258,710 | 78,136 | 60,283 | 36,412 | 23,788 | |
| Amortisation of goodwill and impairment losses | ‒1,786 | ‒1,913 | ‒2,777 | ‒761 | 0 | 0 | |
| Finance cost | ‒25,102 | ‒25,080 | ‒4,743 | ‒4,410 | ‒2,901 | ‒2,900 | |
| Earnings before taxes | 168,608 | 231,716 | 70,617 | 55,112 | 33,511 | 20,888 | |
| Combined ratio (property and casualty insurance, after reinsurance) |
93.9% | 91.6% | 95.0% | 95.5% | 97.4% | 99.6% | |
| Cost ratio (after reinsurance) | 20.8% | 18.6% | 38.3% | 35.6% | 29.5% | 30.4% |
| UNIQA Austria | UNIQA International | Reinsurance | |||||
|---|---|---|---|---|---|---|---|
| In € thousand | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | |
| Goodwill | |||||||
| Impairments | 0 | 0 | ‒2,053 | ‒35 | 0 | 0 | |
| Investments | |||||||
| Impairments | ‒6,631 | ‒2,813 | 0 | ‒168 | 0 | 0 | |
| Reversal of impairment losses | 54 | 173 | 1 | 24 | 0 | 0 |
| Group | Consolidation | Group functions | |||
|---|---|---|---|---|---|
| 1‒12/2018 adjusted |
1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 adjusted |
1‒12/2019 |
| 5,309,469 | 5,372,550 | ‒1,087,925 | ‒1,118,689 | 0 | 0 |
| 5,081,670 | 5,170,836 | 5,208 | 1,872 | 0 | 0 |
| 320,513 | 309,766 | 0 | 0 | 0 | 0 |
| 320,925 | 309,766 | 0 | 0 | 0 | 0 |
| 4,988,955 | 5,062,785 | ‒1,087,925 | ‒1,118,689 | 0 | 0 |
| 4,760,744 | 4,861,071 | 5,208 | 1,872 | 0 | 0 |
| 0 | 0 | 5,208 | 1,872 | 0 | 0 |
| 4,760,744 335,586 |
4,861,071 331,238 |
0 0 |
0 0 |
0 0 |
0 0 |
| 32,395 | 21,514 | ‒3,743 | ‒3,469 | 1,753 | 349 |
| ‒3,633,748 | ‒3,657,078 | ‒1,806 | ‒1,120 | 2,539 | 3,354 |
| ‒1,314,653 | ‒1,407,116 | ‒5,183 | ‒4,315 | ‒68,410 | ‒48,513 |
| ‒47,250 | ‒50,102 | 14,203 | 17,931 | ‒166 | 2,345 |
| 133,074 | 99,526 | 8,680 | 10,898 | ‒64,285 | ‒42,466 |
| 585,029 | 585,244 | ‒248,319 | ‒286,202 | 309,813 | 356,284 |
| 917,575 | 768,959 | ‒320,284 | ‒385,839 | 593,331 | 482,698 |
| ‒441,735 | ‒248,143 | 32,624 | 58,495 | ‒334,583 | ‒130,954 |
| 109,189 | 64,428 | 39,341 | 41,141 | 51,065 | 4,540 |
| 177,258 | 192,359 | ‒5,340 | ‒29,351 | 157,683 | 194,271 |
| ‒335,586 | ‒331,238 | 0 | 0 | 0 | 0 |
| ‒209,683 | ‒191,019 | 2,457 | 27,952 | ‒153,378 | ‒186,557 |
| 217,018 | 255,346 | ‒251,202 | ‒287,601 | 314,118 | 363,997 |
| 350,092 | 354,872 | ‒242,522 | ‒276,703 | 249,833 | 321,532 |
| ‒2,674 | ‒4,562 | 0 | 0 | 0 | 0 |
| ‒52,800 | ‒54,643 | 43,792 | 44,614 | ‒64,201 | ‒66,511 |
| 294,618 | 295,667 | ‒198,730 | ‒232,089 | 185,632 | 255,021 |
| 96.8% | 96.4% | n/a | n/a | n/a | n/a |
| 25.9% | 27.2% | n/a | n/a | n/a | n/a |
| Group | Consolidation | Group functions | ||||
|---|---|---|---|---|---|---|
| 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | |
| ‒35 | ‒2,053 | 0 | 0 | 0 | 0 | |
| ‒29,992 1,002 |
‒22,138 62 |
0 0 |
0 0 |
‒27,011 805 |
‒15,507 7 |
| Property and casualty insurance In € thousand |
UNIQA Austria | UNIQA International | Reinsurance | ||||
|---|---|---|---|---|---|---|---|
| 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | ||
| Premiums written (gross) | 1,760,672 | 1,703,527 | 1,076,924 | 1,067,373 | 1,089,855 | 1,051,342 | |
| Premiums earned (net) | 1,049,839 | 1,033,105 | 614,061 | 584,844 | 1,012,808 | 961,811 | |
| Technical interest income | 0 | 0 | 1,590 | 0 | 0 | 0 | |
| Other insurance income | 2,459 | 8,018 | 16,889 | 16,994 | 199 | 196 | |
| Insurance benefits | ‒688,258 | ‒691,172 | ‒347,571 | ‒339,160 | ‒684,346 | ‒660,503 | |
| Operating expenses | ‒297,358 | ‒255,395 | ‒235,704 | ‒219,552 | ‒302,111 | ‒297,363 | |
| Other technical expenses | ‒8,297 | ‒9,693 | ‒36,631 | ‒31,973 | ‒12,197 | ‒8,751 | |
| Technical result | 58,384 | 84,863 | 12,634 | 11,153 | 14,353 | ‒4,612 | |
| Net investment income | 33,744 | 38,966 | 25,306 | 23,751 | 23,203 | 14,267 | |
| Income from investments | 73,677 | 65,330 | 33,641 | 30,491 | 36,916 | 26,575 | |
| Expenses from investments | ‒40,226 | ‒26,657 | ‒8,504 | ‒6,946 | ‒13,713 | ‒12,308 | |
| Financial assets accounted for using the equity method |
293 | 293 | 169 | 206 | 0 | 0 | |
| Other income | 679 | 771 | 5,209 | 4,517 | 2,521 | 12,838 | |
| Other expenses | ‒9,678 | ‒11,841 | ‒10,681 | ‒17,139 | ‒5,452 | ‒4,268 | |
| Non-technical result | 24,745 | 27,896 | 18,244 | 11,130 | 20,272 | 22,837 | |
| Operating profit/(loss) | 83,129 | 112,760 | 30,878 | 22,283 | 34,624 | 18,225 | |
| Amortisation of goodwill and impairment losses | 0 | 0 | ‒2,401 | ‒454 | 0 | 0 | |
| Finance cost | 0 | 0 | ‒4,352 | ‒4,330 | ‒2,901 | ‒2,900 | |
| Earnings before taxes | 83,129 | 112,760 | 24,125 | 17,498 | 31,724 | 15,325 |
| Health insurance In € thousand |
UNIQA Austria UNIQA International |
Reinsurance | |||||
|---|---|---|---|---|---|---|---|
| 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | ||
| Premiums written (gross) | 1,056,263 | 1,008,859 | 74,558 | 77,586 | 5,747 | 6,574 | |
| Premiums earned (net) | 1,050,575 | 1,008,141 | 66,972 | 65,821 | 5,407 | 6,238 | |
| Technical interest income | 86,386 | 83,976 | 2 | 0 | 0 | 0 | |
| Other insurance income | 1,212 | 2,653 | 118 | 124 | 0 | 0 | |
| Insurance benefits | ‒918,743 | ‒864,356 | ‒38,842 | ‒41,256 | ‒5,962 | ‒4,681 | |
| Operating expenses | ‒153,324 | ‒140,855 | ‒21,314 | ‒24,662 | ‒387 | ‒1,039 | |
| Other technical expenses | ‒429 | ‒38 | ‒515 | ‒251 | 0 | 0 | |
| Technical result | 65,677 | 89,522 | 6,421 | ‒224 | ‒942 | 518 | |
| Net investment income | 101,237 | 103,049 | 352 | 460 | 0 | 0 | |
| Income from investments | 124,051 | 129,492 | 663 | 1,103 | 0 | 0 | |
| Expenses from investments | ‒30,564 | ‒34,193 | ‒310 | ‒643 | 0 | 0 | |
| Financial assets accounted for using the equity | |||||||
| method | 7,750 | 7,750 | 0 | 0 | 0 | 0 | |
| Other income | 555 | 95 | 3,146 | 2,994 | 0 | 21 | |
| Reclassification of technical interest income | ‒86,386 | ‒83,976 | ‒2 | 0 | 0 | 0 | |
| Other expenses | ‒1,122 | ‒1,719 | ‒2,821 | ‒3,067 | ‒68 | 0 | |
| Non-technical result | 14,284 | 17,449 | 675 | 387 | ‒68 | 21 | |
| Operating profit/(loss) | 79,961 | 106,971 | 7,096 | 163 | ‒1,011 | 539 | |
| Finance cost | ‒1 | 0 | 0 | 0 | 0 | 0 | |
| Earnings before taxes | 79,960 | 106,971 | 7,096 | 163 | ‒1,011 | 539 |
| Group functions | Consolidation | Group | |||
|---|---|---|---|---|---|
| 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 |
| 0 | 0 | ‒1,080,668 | ‒1,047,807 | 2,846,783 | 2,774,435 |
| 0 | 0 | 1,729 | 4,319 | 2,678,436 | 2,584,079 |
| 0 | 0 | 0 | 0 | 1,590 | 0 |
| 299 | 981 | ‒3,403 | ‒3,553 | 16,443 | 22,635 |
| 99 | 249 | 609 | 514 | ‒1,719,467 | ‒1,690,073 |
| ‒25,539 | ‒33,500 | ‒530 | ‒5,170 | ‒861,241 | ‒810,980 |
| 920 | ‒36 | 12,317 | 8,582 | ‒43,889 | ‒41,872 |
| ‒24,220 | ‒32,306 | 10,722 | 4,691 | 71,872 | 63,789 |
| 321,995 | 293,266 | ‒282,171 | ‒242,106 | 122,077 | 128,145 |
| 388,007 | 424,615 | ‒298,470 | ‒258,948 | 233,770 | 288,064 |
| ‒68,438 | ‒180,633 | 11,587 | 8,060 | ‒119,295 | ‒218,484 |
| 2,426 | 49,284 | 4,712 | 8,782 | 7,601 | 58,565 |
| 12,093 | 12,028 | ‒1,894 | ‒4,088 | 18,607 | 26,066 |
| ‒13,616 | ‒12,327 | 1,208 | 993 | ‒38,219 | ‒44,581 |
| 320,471 | 292,967 | ‒282,857 | ‒245,200 | 100,875 | 109,630 |
| 296,251 | 260,661 | ‒272,136 | ‒240,510 | 172,747 | 173,419 |
| 0 | 0 | 0 | 0 | ‒2,401 | ‒454 |
| ‒59,239 | ‒57,652 | 12,142 | 12,183 | ‒54,349 | ‒52,699 |
| 237,012 | 203,009 | ‒259,994 | ‒228,326 | 115,997 | 120,266 |
Group functions Consolidation Group
| 1‒12/2019 1‒12/2018 adjusted 1,130,821 1,086,444 139 1,123,027 1,080,339 0 86,388 83,976 0 1,331 3,167 48 ‒960,275 ‒907,955 1,070 ‒187,813 ‒183,856 1 ‒143 ‒288 1,257 62,515 75,383 |
1‒12/2018 ‒6,574 |
1‒12/2019 ‒5,747 73 0 |
1‒12/2018 adjusted 0 0 |
1‒12/2019 0 0 |
|---|---|---|---|---|
| 0 | 0 | |||
| 0 | 389 | 0 | ||
| 17 | 2,290 | 3,255 | ||
| ‒14 | ‒18,370 | ‒12,773 | ||
| 52 | 0 | 750 | ||
| 129 | ‒15,691 | ‒8,769 | ||
| 109,034 103,379 |
‒7,855 | ‒12,584 | 7,725 | 20,029 |
| 129,957 210,408 |
‒28,497 | ‒41,109 | 108,310 | 46,352 |
| 8,839 ‒43,075 ‒126,582 |
14,454 | ‒100,585 | ‒26,656 | |
| 22,153 19,553 |
11,803 | 14,070 | 0 | 333 |
| 157,234 145,956 |
‒1,191 | ‒27,398 | 144,037 | 180,931 |
| 0 ‒86,388 ‒83,976 |
0 | 0 | 0 | |
| 344 ‒147,494 ‒144,476 |
27,509 | ‒140,033 | ‒170,992 | |
| 32,387 20,883 |
‒8,703 | ‒12,473 | 11,729 | 29,969 |
| 94,902 96,266 |
‒7,446 | ‒12,344 | ‒3,962 | 21,200 |
| 72 ‒44 ‒101 |
0 | ‒173 | ‒44 | |
| ‒7,374 94,858 96,165 |
| Life insurance In € thousand |
UNIQA Austria | UNIQA International | Reinsurance | ||||
|---|---|---|---|---|---|---|---|
| 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | ||
| Premiums written (gross), including savings portions | |||||||
| from unit-linked and index-linked life insurance | 983,884 | 1,022,014 | 409,760 | 419,691 | 33,576 | 40,429 | |
| Premiums earned (net), including savings portions | |||||||
| from unit-linked and index-linked life insurance | 956,620 | 990,565 | 401,599 | 408,397 | 11,083 | 17,539 | |
| Savings portions from unit-linked and | |||||||
| index-linked life insurance (gross) | 211,683 | 219,802 | 98,083 | 100,712 | 0 | 0 | |
| Savings portions from unit-linked and | |||||||
| index-linked life insurance (net) | 211,683 | 220,214 | 98,083 | 100,712 | 0 | 0 | |
| Premiums written (gross) | 772,201 | 802,212 | 311,677 | 318,979 | 33,576 | 40,429 | |
| Premiums earned (net) | 744,938 | 770,352 | 303,516 | 307,685 | 11,083 | 17,539 | |
| Technical interest income | 213,722 | 225,498 | 29,538 | 26,112 | 0 | 0 | |
| Other insurance income | 171 | 1,542 | 3,569 | 4,803 | 17 | 55 | |
| Insurance benefits | ‒810,312 | ‒834,724 | ‒155,143 | ‒181,372 | ‒10,134 | ‒17,257 | |
| Operating expenses | ‒185,051 | ‒168,619 | ‒157,862 | ‒132,377 | ‒1,176 | ‒1,198 | |
| Other technical expenses | ‒6,146 | ‒5,037 | ‒2,928 | ‒2,195 | ‒3,233 | ‒3,348 | |
| Technical result | ‒42,678 | ‒10,987 | 20,690 | 22,655 | ‒3,444 | ‒4,210 | |
| Net investment income | 289,144 | 276,306 | 35,929 | 57,509 | 6,248 | 9,226 | |
| Income from investments | 341,472 | 317,355 | 55,433 | 64,955 | 6,248 | 9,226 | |
| Expenses from investments | ‒62,861 | ‒51,583 | ‒19,504 | ‒7,446 | 0 | 0 | |
| Financial assets accounted for using the equity | |||||||
| method | 10,534 | 10,534 | 0 | 0 | 0 | 0 | |
| Other income | 331 | 337 | 14,980 | 3,304 | 19 | 38 | |
| Reclassification of technical interest income | ‒213,722 | ‒225,498 | ‒29,538 | ‒26,112 | 0 | 0 | |
| Other expenses | ‒670 | ‒1,179 | ‒1,898 | ‒19,519 | ‒24 | ‒31 | |
| Non-technical result | 75,083 | 49,966 | 19,472 | 15,182 | 6,242 | 9,234 | |
| Operating profit/(loss) | 32,405 | 38,979 | 40,162 | 37,837 | 2,798 | 5,024 | |
| Amortisation of goodwill and impairment losses | ‒1,786 | ‒1,913 | ‒375 | ‒307 | 0 | 0 | |
| Finance cost | ‒25,101 | ‒25,080 | ‒391 | ‒80 | 0 | 0 | |
| Earnings before taxes | 5,518 | 11,985 | 39,396 | 37,451 | 2,798 | 5,024 |
| Group functions | Consolidation | Group | |||
|---|---|---|---|---|---|
| 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 |
| 0 | 0 | ‒32,273 | ‒33,544 | 1,394,946 | 1,448,590 |
| 0 | 0 | 70 | 750 | 1,369,372 | 1,417,251 |
| 0 | 0 | 0 | 0 | 309,766 | 320,513 |
| 0 | 0 | 0 | 0 | 309,766 | 320,925 |
| 0 | 0 | ‒32,273 | ‒33,544 | 1,085,180 | 1,128,076 |
| 0 | 0 | 70 | 750 | 1,059,607 | 1,096,326 |
| 0 | 0 | 0 | 0 | 243,260 | 251,610 |
| 50 | 382 | ‒67 | ‒189 | 3,740 | 6,593 |
| 0 | 0 | ‒1,746 | ‒2,367 | ‒977,335 | ‒1,035,721 |
| ‒10,202 | ‒16,541 | ‒3,771 | ‒1,083 | ‒358,062 | ‒319,817 |
| 675 | ‒130 | 5,562 | 5,621 | ‒6,071 | ‒5,089 |
| ‒9,476 | ‒16,288 | 48 | 2,732 | ‒34,861 | ‒6,098 |
| 14,260 | 8,821 | 8,553 | 1,642 | 354,133 | 353,505 |
| 48,339 | 60,405 | ‒46,260 | ‒32,839 | 405,232 | 419,103 |
| ‒35,861 | ‒53,365 | 32,454 | 15,725 | ‒85,773 | ‒96,670 |
| 1,781 | 1,781 | 22,359 | 18,756 | 34,674 | 31,071 |
| 1,247 | 1,618 | ‒59 | ‒61 | 16,517 | 5,236 |
| 0 | 0 | 0 | 0 | ‒243,260 | ‒251,610 |
| ‒1,950 | ‒1,018 | ‒765 | 1,120 | ‒5,307 | ‒20,626 |
| 13,557 | 9,422 | 7,729 | 2,701 | 122,084 | 86,505 |
| 4,080 | ‒6,867 | 7,777 | 5,433 | 87,223 | 80,407 |
| 0 | 0 | 0 | 0 | ‒2,161 | ‒2,220 |
| ‒7,229 | ‒6,376 | 32,472 | 31,536 | ‒249 | 0 |
| ‒3,148 | ‒13,242 | 40,249 | 36,970 | 84,813 | 78,187 |
| In € thousand | Premiums earned (net) | Net investment income | |||
|---|---|---|---|---|---|
| 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | ||
| Poland | 167,831 | 171,878 | 9,543 | 11,027 | |
| Slovakia | 89,432 | 87,323 | 3,311 | 4,133 | |
| Czech Republic | 183,097 | 169,564 | 7,372 | 3,161 | |
| Hungary | 75,540 | 72,088 | 4,790 | 3,922 | |
| Central Europe (CE) | 515,901 | 500,853 | 25,015 | 22,244 | |
| Romania | 55,246 | 53,256 | 4,308 | 3,994 | |
| Ukraine | 90,442 | 65,608 | 1,144 | 4,363 | |
| Eastern Europe (EE) | 145,688 | 118,864 | 5,452 | 8,357 | |
| Russia | 87,098 | 95,276 | 6,557 | 29,337 | |
| Russia (RU) | 87,098 | 95,276 | 6,557 | 29,337 | |
| Albania | 34,400 | 31,544 | 432 | 970 | |
| Bosnia and Herzegovina | 28,895 | 27,655 | 4,848 | 2,430 | |
| Bulgaria | 46,499 | 48,612 | 1,534 | 1,460 | |
| Kosovo | 11,693 | 9,655 | 203 | 176 | |
| Croatia | 49,240 | 47,779 | 13,967 | 12,212 | |
| Montenegro | 10,830 | 10,684 | 787 | 793 | |
| North Macedonia | 13,647 | 12,157 | 356 | 360 | |
| Serbia | 39,470 | 38,860 | 3,592 | 3,988 | |
| Southeastern Europe (SEE) | 234,673 | 226,946 | 25,718 | 22,390 | |
| Liechtenstein | 1,189 | 16,412 | 16 | 404 | |
| Switzerland | 0 | 0 | ‒21 | ‒16 | |
| Western Europe (WE) | 1,189 | 16,412 | ‒6 | 389 | |
| Austria | 0 | 0 | ‒1,150 | ‒995 | |
| Administration | 0 | 0 | ‒1,150 | ‒995 | |
| UNIQA International | 984,549 | 958,350 | 61,587 | 81,720 | |
| Of which: | |||||
| Earnings before taxes insurance companies | |||||
| Impairment of goodwill |
| Insurance benefits | Operating expenses | Earnings before taxes | |||
|---|---|---|---|---|---|
| 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 | 1‒12/2019 | 1‒12/2018 |
| ‒99,535 | ‒103,981 | ‒60,215 | ‒61,300 | 15,010 | 14,613 |
| ‒47,675 | ‒46,442 | ‒37,874 | ‒37,537 | 5,247 | 5,135 |
| ‒107,601 | ‒97,710 | ‒59,459 | ‒53,794 | 22,499 | 20,147 |
| ‒23,609 | ‒24,083 | ‒33,371 | ‒36,939 | 6,263 | 4,599 |
| ‒278,420 | ‒272,216 | ‒190,919 | ‒189,570 | 49,019 | 44,494 |
| ‒18,212 | ‒29,297 | ‒35,897 | ‒23,331 | 3,500 | ‒475 |
| ‒37,423 | ‒33,363 | ‒47,646 | ‒33,534 | 6,687 | 3,157 |
| ‒55,636 | ‒62,659 | ‒83,543 | ‒56,865 | 10,187 | 2,682 |
| ‒69,211 | ‒79,199 | ‒16,413 | ‒13,924 | 19,480 | 16,483 |
| ‒69,211 | ‒79,199 | ‒16,413 | ‒13,924 | 19,480 | 16,483 |
| ‒14,959 | ‒11,281 | ‒16,356 | ‒15,288 | 1,227 | 1,451 |
| ‒19,109 | ‒18,337 | ‒11,431 | ‒10,621 | 1,394 | 1,044 |
| ‒24,052 | ‒31,584 | ‒19,973 | ‒16,502 | 3,476 | 1,720 |
| ‒6,387 | ‒4,628 | ‒5,270 | ‒4,492 | 255 | 785 |
| ‒34,989 | ‒31,694 | ‒20,939 | ‒20,767 | 8,079 | 6,137 |
| ‒5,686 | ‒5,759 | ‒5,139 | ‒5,068 | 501 | 495 |
| ‒7,187 | ‒5,588 | ‒6,896 | ‒5,722 | ‒498 | 433 |
| ‒25,096 | ‒25,166 | ‒15,292 | ‒14,595 | 2,007 | 1,908 |
| ‒137,465 | ‒134,037 | ‒101,296 | ‒93,055 | 16,439 | 13,973 |
| ‒824 | ‒13,677 | ‒2,050 | ‒3,169 | ‒1,585 | ‒477 |
| 0 | 0 | 0 | 0 | 169 | 131 |
| ‒824 | ‒13,677 | ‒2,050 | ‒3,169 | ‒1,417 | ‒346 |
| 0 | 0 | ‒20,659 | ‒20,008 | ‒23,092 | ‒22,173 |
| 0 | 0 | ‒20,659 | ‒20,008 | ‒23,092 | ‒22,173 |
| ‒541,556 | ‒561,788 | ‒414,880 | ‒376,591 | 70,617 | 55,112 |
| 93,540 | 77,154 | ||||
| ‒2,053 | ‒35 |
| In € thousand | Property and casualty insurance | Health insurance | |||
|---|---|---|---|---|---|
| 31/12/2019 | 31/12/2018 | 31/12/2019 | 31/12/2018 | ||
| Assets | |||||
| Property, plant and equipment | 192,493 | 158,803 | 37,855 | 44,866 | |
| Intangible assets | 682,015 | 614,853 | 281,368 | 266,520 | |
| Investments | |||||
| Investment property | 214,693 | 227,191 | 242,077 | 235,225 | |
| Financial assets accounted for using the equity method | 72,436 | 66,289 | 220,089 | 205,735 | |
| Other investments | 4,864,151 | 4,627,839 | 3,554,843 | 3,081,666 | |
| Unit-linked and index-linked life insurance investments | 0 | 0 | 0 | 0 | |
| Reinsurers' share of technical provisions | 219,739 | 286,045 | 1,591 | 2,204 | |
| Reinsurers' share of technical provisions for unit-linked and index-linked life insurance | 0 | 0 | 0 | 0 | |
| Receivables, including insurance receivables | 238,194 | 356,008 | 357,724 | 241,476 | |
| Income tax receivables | 42,759 | 48,058 | 1,596 | 967 | |
| Deferred tax assets | 1,803 | 1,660 | 0 | 0 | |
| Cash and cash equivalents | 280,748 | 249,265 | 71,129 | 167,959 | |
| Assets in disposal groups held for sale | 0 | 0 | 0 | 0 | |
| Total assets by business line | 6,809,031 | 6,636,012 | 4,768,272 | 4,246,618 | |
| Liabilities | |||||
| Subordinated liabilities | 870,110 | 875,602 | 0 | 0 | |
| Technical provisions | 3,295,437 | 3,273,160 | 3,360,686 | 3,193,024 | |
| Technical provisions for unit-linked and index-linked life insurance | 0 | 0 | 0 | 0 | |
| Financial liabilities | 94,009 | 169,111 | 31,674 | 22,167 | |
| Other provisions | 356,183 | 392,017 | 313,899 | 288,397 | |
| Liabilities and other items classified as liabilities | 655,029 | 499,908 | 101,640 | 95,172 |
Income tax liabilities 55,336 61,056 3,612 2,553 Deferred tax liabilities 74,547 48,910 152,403 100,795 Liabilities in disposal groups held for sale 0 0 0 0 Total liabilities by business line 5,400,650 5,319,763 3,963,914 3,702,108
| Life insurance | Consolidation | Group | |||
|---|---|---|---|---|---|
| 31/12/2019 | 31/12/2018 | 31/12/2019 | 31/12/2018 | 31/12/2019 | 31/12/2018 |
| 121,432 | 107,393 | 0 | 0 | 351,780 | 311,062 |
| 722,793 | 779,084 | ‒45,060 | ‒41,572 | 1,641,116 | 1,618,885 |
| 680,674 | 641,731 | 0 | 0 | 1,137,444 | 1,104,146 |
| 349,889 | 327,080 | 0 | 0 | 642,414 | 599,105 |
| 10,976,431 | 10,639,240 | ‒550,486 | ‒714,930 | 18,844,939 | 17,633,815 |
| 4,680,403 | 4,751,183 | 0 | 0 | 4,680,403 | 4,751,183 |
| 128,644 | 136,617 | 49 | ‒11,505 | 350,022 | 413,361 |
| 113 | 101 | 0 | 0 | 113 | 101 |
| 160,986 | 82,773 | ‒210,244 | ‒139,548 | 546,659 | 540,709 |
| 4,305 | 3,283 | 0 | 0 | 48,660 | 52,308 |
| 3,434 | 4,098 | 0 | 0 | 5,237 | 5,758 |
| 127,745 | 1,027,166 | 0 | 0 | 479,621 | 1,444,391 |
| 0 | 28,976 | 0 | 0 | 0 | 28,976 |
| 17,956,847 | 18,528,725 | ‒805,742 | ‒907,555 | 28,728,409 | 28,503,801 |
| 410,741 | 410,741 | ‒410,741 | ‒416,511 | 870,110 | 869,832 |
| 11,149,313 | 10,897,500 | ‒14,431 | ‒27,326 | 17,791,006 | 17,336,358 |
| 4,646,152 | 4,721,904 | 0 | 0 | 4,646,152 | 4,721,904 |
| 49,363 | 942,278 | ‒99,530 | ‒335,073 | 75,516 | 798,484 |
| 17,133 | 19,771 | ‒1,505 | ‒37,186 | 685,709 | 662,998 |
| 325,767 | 303,506 | ‒279,341 | ‒91,375 | 803,095 | 807,210 |
| 1,722 | 769 | 0 | 0 | 60,669 | 64,378 |
| 148,780 | 105,294 | 0 | 0 | 375,729 | 254,999 |
| 0 | 1,088 | 0 | 0 | 0 | 1,088 |
| 16,748,971 | 17,402,850 | ‒805,549 | ‒907,471 | 25,307,986 | 25,517,251 |
| Consolidated equity and non-controlling interests | 3,420,422 | 2,986,550 | |||
| Total equity and liabilities | 28,728,409 | 28,503,801 | |||
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 respective segment.
Land and buildings, including buildings on third-party land, held as long-term investments to generate rent revenue and/or for the purpose of capital appreciation are measured in accordance with the cost model. The investment property held as financial investments is subject to straight line depreciation over the useful life of 5 to 80 years and is recognised under the item "Net investment income".
The fair value is determined using reports prepared by independent experts. These experts' reports are prepared based on earned value and asset value methods or by weighted earned value and net asset value. It requires making assumptions about the future, principally concerning the discount rate, the exit yield, the expected utilisation (vacancy rate), the development of future rental charges, and the condition of the land and buildings. The construction and, if necessary, property value, location, useable 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 parameters 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 buildings 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 current prevailing market conditions.
| At 1 January 2018 | 1,877,084 |
|---|---|
| Currency translation | ‒978 |
| Change in basis of consolidation | 32,509 |
| Additions | 18,813 |
| Disposals | ‒75,636 |
| Reclassifications | ‒1,726 |
| Reclassifications held for sale | ‒152,160 |
| At 31 December 2018 | 1,697,905 |
| At 1 January 2019 | 1,697,905 |
| Currency translation | 3,242 |
| Additions | 61,998 |
| Disposals | ‒41,908 |
| Reclassifications | 10,596 |
| Reclassifications held for sale | 78,049 |
| At 31 December 2019 | 1,809,883 |
In thousand
| At 1 January 2018 | ‒643,188 |
|---|---|
| Currency translation | 290 |
| Additions from depreciation | ‒31,863 |
| Additions from impairment | ‒16,923 |
| Disposals | 50,959 |
| Reclassifications | 1,812 |
| Reversal of impairment | 413 |
| Reclassifications held for sale | 44,741 |
| At 31 December 2018 | ‒593,759 |
| At 1 January 2019 | ‒593,759 |
| Currency translation | ‒1,569 |
| Additions from depreciation | ‒40,013 |
| Additions from impairment | ‒1,848 |
| Disposals | 20,129 |
| Reversal of impairment | 3,981 |
| Reclassifications held for sale | ‒59,360 |
| At 31 December 2019 | ‒672,439 |
| Carrying amounts In € thousand |
Property and casualty insurance |
Health insurance |
Life insurance |
Total |
|---|---|---|---|---|
| At 1 January 2018 | 254,494 | 237,163 | 742,239 | 1,233,896 |
| At 31 December 2018 | 227,191 | 235,225 | 641,731 | 1,104,146 |
| At 31 December 2019 | 214,693 | 242,077 | 680,674 | 1,137,444 |
| Fair values In € thousand |
Property and casualty insurance |
Health insurance |
Life insurance |
Total |
|---|---|---|---|---|
| At 31 December 2018 | 427,588 | 562,563 | 1,095,942 | 2,086,093 |
| At 31 December 2019 | 434,938 | 576,950 | 1,246,974 | 2,258,862 |
Investments in associates are accounted for using the equity method. They are initially recognised at acquisition cost, which also includes transaction costs. After the firsttime 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 carrying amount of the associate and the corresponding recoverable amount and recognised separately in profit/(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.
| Reconciliation of summarised financial information In € thousand |
STRABAG SE | material on a stand-alone basis | Associated companies not | |
|---|---|---|---|---|
| 20191) 2) | 20182) | 2019 | 2018 | |
| Net assets at 1 January | 3,542,415 | 3,333,379 | 151,166 | 135,004 |
| Dividends | ‒133,380 | ‒133,380 | ‒9,633 | ‒910 |
| Profit/(loss) after taxes | 375,535 | 336,513 | 17,731 | 22,210 |
| Other comprehensive income | 4,870 | 5,903 | 3,620 | ‒5,138 |
| Net assets at 31 December | 3,789,440 | 3,542,415 | 162,884 | 151,166 |
| Shares in associated companies | 14.26% | 14.26% | Various investment amounts | |
| Carrying amount | 579,218 | 541,460 | 63,196 | 57,638 |
1) Estimate for 31 Dec. 2019 based on financial information as at 30 July 2019 on STRABAG SE available as at the reporting date
2) The carrying amounts are calculated based on the shares in circulation. 2019: 15.29%, 2018: 15.29%
At 31 December 2019, UNIQA held 14.3 per cent of STRABAG SE's share capital (31 December 2018: 14.3 per cent). UNIQA treats STRABAG SE as an associate due to contractual arrangements. As part of the accounting using the equity method, an assessment of the share in STRA-BAG SE was made, based on the financial information published at 30 June 2019, for the period up until 31 December 2019. At 31 December 2019, the fair value amounts to €486,156 thousand (2018: €402,255 thousand).
In thousand
STRABAG SE1)
| 1‒6/2019 | 1‒6/2018 | |
|---|---|---|
| Revenue | 6,979,073 | 6,307,354 |
| Depreciation | ‒233,738 | ‒180,348 |
| Interest income | 15,403 | 25,111 |
| Interest expenses | ‒34,898 | ‒32,552 |
| Income taxes | ‒27,563 | ‒9,716 |
| Profit/(loss) for the period | 13,942 | 2,873 |
| Other comprehensive income | 2,167 | ‒6,903 |
| Total comprehensive income | 16,109 | ‒4,030 |
1) STRABAG SE Semi-Annual Report 2019 as published in August 2019
STRABAG SE1)
1) STRABAG SE Semi-Annual Report 2019 as published in August 2019
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 accounting using the equity method, and have been adjusted based on any essential transactions between the relevant reporting date and 31 December 2019.
| Summary of information on associated companies not material on a stand-alone |
1‒12/2019 | 1‒12/2018 |
|---|---|---|
| basis In € thousand |
||
| Group's share of profit from continuing operations |
6,693 | 8,597 |
| Group's share of other comprehensive income |
1,453 | ‒2,062 |
| Group's share of total comprehensive income |
8,145 | 6,535 |
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 contractual rights to cash flows from an asset expire or the rights
to receive the cash flows in a transaction in which all major 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, hedge funds 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. Unrealised gains and losses are recognised in profit/(loss) for the period.
Derivatives are used within the limits permitted under the Austrian Insurance Supervisory Act for hedging investments and for increasing earnings. All fluctuations in value 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 under financial liabilities.
Available-for-sale financial assets are initially measured at fair value plus directly attributable transaction costs. Subsequently, available-for-sale financial assets are measured at fair value. Corresponding value changes are, with the exception of impairment and foreign exchange differences in the case of available-for-sale debt securities, recognised in the accumulated profits in equity. When an asset is derecognised, the accumulated other comprehensive income 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 period is the difference between the acquisition cost, net of any redemptions and amortisations and current fair value, less any impairment loss previously recognised in profit or loss. 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 occurring after the impairment was recognised, the impairment is reversed, with the amount of the reversal recognised in profit or loss. Reversals of impairment losses of equity
instruments held at fair value cannot be recognised in profit/(loss) for the period.
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 framework of an internal impairment process. If objective indicators suggest that the value currently attributed is not tenable, an impairment is recognised.
Objective indications that financial assets are impaired are:
other observable data that indicate a significant decrease in the expected payments from a group of financial assets.
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 decline 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 interest rate of the asset. Losses are recognised in profit/ (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.
Investments are broken down into the following classes and categories of financial instruments:
| At 31 December 2019 | Variable-income securities |
Fixed-income securities |
Loans and other |
Derivative financial |
Investments under |
Total |
|---|---|---|---|---|---|---|
| In € thousand | investments | instruments | investment contracts |
|||
| Financial assets at fair value through profit or loss | 7,345 | 201,234 | 0 | 21,981 | 58,547 | 289,106 |
| Available-for-sale financial assets | 909,764 | 16,992,181 | 0 | 0 | 0 | 17,901,946 |
| Loans and receivables | 0 | 114,050 | 539,837 | 0 | 0 | 653,887 |
| Total | 917,109 | 17,307,466 | 539,837 | 21,981 | 58,547 | 18,844,939 |
| of which fair value option | 7,345 | 201,234 | 0 | 0 | 0 | 208,579 |
| At 31 December 2018 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 | 24,538 | 308,029 | 0 | 20,804 | 56,395 | 409,767 |
| Available-for-sale financial assets | 840,857 | 15,702,491 | 0 | 0 | 0 | 16,543,348 |
| Loans and receivables | 0 | 172,985 | 507,715 | 0 | 0 | 680,701 |
| Total | 865,396 | 16,183,505 | 507,715 | 20,804 | 56,395 | 17,633,815 |
| of which fair value option | 24,538 | 308,029 | 0 | 0 | 0 | 332,567 |
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 control framework with regard to the determination of fair value. This includes a measurement team, which bears general responsibility for monitoring all major measurements of fair value, including Level 3 fair values, and reports directly to the respective Member of the Management Board.
A review of the major unobservable inputs and the measurement adjustments is carried out regularly. If information from third parties (e.g. price quotations from brokers 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 measurement techniques, the fair values are assigned to different levels in the fair value hierarchy.
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 assigned 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:
For the measurement of capital investments, techniques best suited for the establishment of corresponding value are applied. The following standard measurement techniques 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 comparable assets and liabilities.
Income approach
The income approach corresponds to the method whereby 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.
| 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 |
| In € thousand | Level 1 | Level 2 | Level 3 | Total | ||||
|---|---|---|---|---|---|---|---|---|
| 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018 | ||||||||
| Available-for-sale financial assets | ||||||||
| Variable-income securities | 729,829 | 695,196 | 20,298 | 1,135 | 159,637 | 144,526 | 909,764 | 840,857 |
| Fixed-income securities | 13,170,835 | 12,567,999 | 2,941,560 | 2,633,039 | 879,787 | 501,453 | 16,992,181 | 15,702,491 |
| Total | 13,900,664 13,263,195 | 2,961,858 | 2,634,175 | 1,039,424 | 645,979 17,901,946 16,543,348 | |||
| Financial assets at fair value through profit or loss | ||||||||
| Variable-income securities | 0 | 0 | 2,077 | 14,445 | 5,267 | 10,094 | 7,345 | 24,538 |
| Fixed-income securities | 108,261 | 197,100 | 51,098 | 48,235 | 41,876 | 62,694 | 201,234 | 308,029 |
| Derivative financial instruments | 261 | 12 | 3,695 | 5,205 | 18,025 | 15,587 | 21,981 | 20,804 |
| Investments under investment contracts | 49,977 | 49,008 | 3,727 | 932 | 4,843 | 6,456 | 58,547 | 56,395 |
| Total | 158,498 | 246,120 | 60,597 | 68,816 | 70,011 | 94,830 | 289,106 | 409,767 |
| In € thousand | Level 1 | Level 2 | Level 3 | Total | ||||
| 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018 | ||||||||
| Financial liabilities | ||||||||
| Derivative financial instruments | 0 | 0 | 669 | 13,345 | 1 | 0 | 670 | 13,345 |
| Total | 0 | 0 | 669 | 13,345 | 1 | 0 | 670 | 13,345 |
| In € thousand | Level 1 | Level 2 | Level 3 | Total | ||||
|---|---|---|---|---|---|---|---|---|
| 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018 | ||||||||
| Investment property | 0 | 0 | 0 | 0 | 2,258,862 | 2,086,093 | 2,258,862 | 2,086,093 |
| Loans and receivables | ||||||||
| Loans and other investments | 0 | 0 | 384,350 | 395,016 | 155,488 | 112,700 | 539,837 | 507,715 |
| Fixed-income securities | 16,276 | 30,789 | 112,957 | 123,862 | 0 | 31,443 | 129,233 | 186,094 |
| Total | 16,276 | 30,789 | 497,307 | 518,878 | 155,488 | 144,143 | 669,070 | 693,809 |
| In € thousand | Level 1 | Level 2 | Level 3 | Total | ||||
|---|---|---|---|---|---|---|---|---|
| 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018 31/12/2019 31/12/2018 | ||||||||
| Financial liabilities | ||||||||
| Liabilities from collateral received for securities | ||||||||
| lending | 0 | 0 | 0 | 0 | 0 | 772,196 | 0 | 772,196 |
| Liabilities from loans | 0 | 0 | 0 | 0 | 74,846 | 12,943 | 74,846 | 12,943 |
| Total | 0 | 0 | 0 | 0 | 74,846 | 785,139 | 74,846 | 785,139 |
| Subordinated liabilities | 1,051,425 | 959,400 | 0 | 0 | 0 | 0 | 1,051,425 | 959,400 |
In the reporting period transfers from Level 1 to Level 2 were made in the amount of €492,529 thousand (2018: €443,997 thousand) and from Level 2 to Level 1 in the amount of €144,533 thousand (2018: €234,586 thousand). These are attributable primarily to changes in trading frequency and trading activity.
The following table shows the changes to the fair values of financial instruments whose measurement techniques are not based on observable inputs.
| In € thousand | Fixed-income securities |
Other | Total | |||
|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |
| At 1 January | 501,453 | 308,578 | 239,356 | 282,743 | 740,809 | 591,321 |
| Transfers from Level 3 to Level 1 | 0 | ‒24 | 0 | ‒6 | 0 | ‒29 |
| Transfers from Level 3 to Level 2 | 0 | 0 | ‒4,218 | 0 | ‒4,218 | 0 |
| Transfers to Level 3 | 0 | 772 | 0 | 0 | 0 | 772 |
| Gains and losses recognised in profit or loss | ‒2,432 | 1,630 | ‒1,539 | ‒12,527 | ‒3,971 | ‒10,897 |
| Gains and losses recognised in other comprehensive income | 46,002 | ‒14,445 | ‒1,500 | 3,290 | 44,502 | ‒11,155 |
| Additions | 343,940 | 217,244 | 32,645 | 43,676 | 376,585 | 260,920 |
| Disposals | ‒9,206 | ‒12,273 | ‒35,078 | ‒77,814 | ‒44,284 | ‒90,087 |
| Changes from currency translation | 30 | ‒29 | ‒19 | ‒6 | 11 | ‒35 |
| At 31 December | 879,787 | 501,453 | 229,648 | 239,356 | 1,109,434 | 740,809 |
For the most important financial instruments in Level 3, an increase in the discount rate by 100 basis points results in a reduction in value of 6.2 per cent (2018: 5.7 per cent). A reduction in the discount rate by 100 basis points results in a 7.5 per cent increase in value (2018: 6.4 per cent).
| Transfer of financial assets In € thousand |
Fair value | |
|---|---|---|
| 31/12/2019 31/12/2018 | ||
| Transferred financial assets from securities lending | 0 | 772,406 |
| Liabilities from collateral received for securities lending |
0 | 772,196 |
| Net position | 0 | 210 |
The carrying amounts of the transferred financial assets from securities lending transactions and liabilities from collateral received for securities lending transactions are equal to the fair values. There were no open securities lending transactions as at 31 December 2019.
| Loans | ||
|---|---|---|
| Loans to affiliated unconsolidated companies | 4,400 | 4,382 |
| Mortgage loans | 9,931 | 14,100 |
| Loans and advance payments on policies | 12,827 | 13,481 |
| Other loans | 103,094 | 54,986 |
| Total | 130,251 | 86,950 |
| Other investments | ||
| Bank deposits | 384,350 | 395,016 |
| Deposits retained on assumed reinsurance | 25,236 | 25,750 |
| Total | 409,586 | 420,766 |
| Total sum | 539,837 | 507,715 |
31/12/2019 31/12/2018
The carrying amounts of the loans and other investments 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 |
31/12/2019 31/12/2018 | ||||
|---|---|---|---|---|---|
| At 1 January | ‒3,657 | ‒6,339 | |||
| Allocation | 0 | ‒114 | |||
| Use | 502 | 1,870 | |||
| Reversal | 439 | 933 | |||
| Currency translation | 3 | ‒7 | |||
| At 31 December | ‒2,713 | ‒3,657 |
| Up to 1 year | 3,096 | 4,227 |
|---|---|---|
| More than 1 year and up to 5 years | 16,059 | 16,703 |
| More than 5 years up to 10 years | 103,478 | 56,240 |
| More than 10 years | 7,619 | 9,780 |
| Total | 130,251 | 86,950 |
| Classified by business line In € thousand |
Property and casualty insurance |
Health insurance | Life insurance | Total | ||||
|---|---|---|---|---|---|---|---|---|
| 1‒12/2019 1‒12/2018 1‒12/2019 1‒12/2018 adjusted |
1‒12/2019 1‒12/2018 1‒12/2019 1‒12/2018 adjusted |
|||||||
| Investment property | 15,278 | 9,117 | 12,983 | 9,621 | 54,047 | 32,475 | 82,308 | 51,213 |
| Financial assets accounted for using the equity method | 7,601 | 58,565 | 22,153 | 19,553 | 34,674 | 31,071 | 64,428 | 109,189 |
| Variable-income securities | 4,422 | 16,450 | 9,576 | 9,022 | 1,487 | 19,284 | 15,484 | 44,756 |
| Available for sale | 6,333 | 14,807 | 8,861 | 8,902 | 1,185 | 19,194 | 16,379 | 42,903 |
| At fair value through profit or loss | ‒1,912 | 1,642 | 715 | 120 | 302 | 90 | ‒894 | 1,853 |
| Fixed-income securities | 119,094 | 77,511 | 69,321 | 83,104 | 247,904 | 253,456 | 436,319 | 414,071 |
| Available for sale | 112,090 | 81,459 | 60,868 | 85,447 | 247,768 | 252,528 | 420,726 | 419,434 |
| At fair value through profit or loss | 7,004 | ‒3,948 | 8,454 | ‒2,343 | 136 | 928 | 15,593 | ‒5,363 |
| Loans and other investments | 6,033 | 3,667 | 3,932 | 2,092 | 26,879 | 34,174 | 36,843 | 39,933 |
| Loans | 967 | 450 | 1,637 | 1,754 | 6,394 | 10,142 | 8,999 | 12,345 |
| Other investments | 5,066 | 3,217 | 2,294 | 339 | 20,485 | 24,032 | 27,845 | 27,588 |
| Derivative financial instruments | ‒10,416 | ‒16,586 | 311 | ‒10,485 | 422 | ‒918 | ‒9,682 | ‒27,989 |
| Investment administration expenses, interest paid and | ||||||||
| other investment expenses | ‒19,935 | ‒20,579 | ‒9,241 | ‒9,528 | ‒11,280 | ‒16,037 | ‒40,456 | ‒46,144 |
| Total | 122,077 | 128,145 | 109,034 | 103,379 | 354,133 | 353,505 | 585,244 | 585,029 |
| Of which: | ||||||||
| Current income/expenses | 107,685 | 107,340 | 86,621 | 83,623 | 336,775 | 336,692 | 531,081 | 527,656 |
| Gains/losses from disposals and changes in value | 14,391 | 20,805 | 22,414 | 19,756 | 17,358 | 16,813 | 54,163 | 57,374 |
Impairments ‒11,992 ‒13,062 ‒6,941 ‒1,280 ‒3,204 ‒15,650 ‒22,138 ‒29,992
31/12/2019 31/12/2018
| Classified by type of income In € thousand |
Current income/expenses |
Gains/losses from disposals and changes in value |
Total | of which impairment |
|||||
|---|---|---|---|---|---|---|---|---|---|
| 1‒12/2019 1‒12/2018 1‒12/2019 1‒12/2018 adjusted |
1‒12/2019 1‒12/2018 adjusted |
1‒12/2019 1‒12/2018 | |||||||
| Financial assets at fair value through profit or loss | 1,414 | 2,124 | 3,603 | ‒33,624 | 5,017 | ‒31,500 | 0 | 0 | |
| Variable-income securities (within the framework of fair value option) |
595 | 763 | ‒1,490 | 1,090 | ‒894 | 1,853 | 0 | 0 | |
| Fixed-income securities (within the framework of fair value option) |
2,572 | 1,510 | 13,022 | ‒6,873 | 15,593 | ‒5,363 | 0 | 0 | |
| Derivative financial instruments | ‒1,752 | ‒149 | ‒7,930 | ‒27,841 | ‒9,682 | ‒27,989 | 0 | 0 | |
| Investments under investment contracts1) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Available-for-sale financial assets | 390,453 | 392,045 | 46,651 | 70,292 | 437,104 | 462,337 | ‒20,258 | ‒12,980 | |
| Variable-income securities | 29,015 | 36,555 | ‒12,636 | 6,348 | 16,379 | 42,903 | ‒12,385 | ‒10,175 | |
| Fixed-income securities | 361,438 | 355,490 | 59,287 | 63,944 | 420,726 | 419,434 | ‒7,873 | ‒2,805 | |
| Loans and receivables | 37,234 | 39,116 | ‒391 | 817 | 36,843 | 39,933 | ‒32 | ‒89 | |
| Fixed-income securities | 5,959 | 7,921 | ‒349 | 1,272 | 5,610 | 9,193 | 0 | 0 | |
| Loans and other investments | 31,275 | 31,195 | ‒42 | ‒455 | 31,233 | 30,740 | ‒32 | ‒89 | |
| Investment property | 78,007 | 78,781 | 4,300 | ‒27,568 | 82,308 | 51,213 | ‒1,848 | ‒16,923 | |
| Financial assets accounted for using the equity method | 64,428 | 61,733 | 0 | 47,456 | 64,428 | 109,189 | 0 | 0 | |
| Investment administration expenses, interest paid and | |||||||||
| other investment expenses | ‒40,456 | ‒46,144 | 0 | 0 | ‒40,456 | ‒46,144 | 0 | 0 | |
| Total | 531,081 | 527,656 | 54,163 | 57,374 | 585,244 | 585,029 | ‒22,138 | ‒29,992 |
In thousand
1) Income from investments under investment contracts is not stated due to its transitory character.
Positive currency effects from investments amounting to €1,304 thousand (2018: positive currency effects amounting to €9,558 thousand) were recognised directly in equity.
dollar ‒7,755 ‒11,965
| Financial assets at fair value through profit or loss | ||
|---|---|---|
| Recognised in profit/(loss) for the period | 5,017 | ‒31,500 |
| Available-for-sale financial assets | ||
| Recognised in profit/(loss) for the period | 437,104 | 462,337 |
| of which reclassified from equity to consolidated | ||
| income statement | ‒46,216 | ‒99,926 |
| Recognised in other comprehensive income | 957,411 | ‒445,017 |
| Net income | 1,394,515 | 17,320 |
| Loans and receivables | ||
| Recognised in profit/(loss) for the period | 36,843 | 39,933 |
| Financial liabilities measured at amortised cost | ||
| Recognised in profit/(loss) for the period | ‒54,643 | ‒52,800 |
Insurance and reinsurance contracts along with investment contracts with a discretionary participation feature fall within the scope of IFRS 4 (Insurance Contracts). 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 insurance 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 insurance industry, amounts dedicated to the cover funds are subject to a limitation as regards availability in the Group.
Insurance contracts are contracts through which a significant insurance risk is assumed. Investment contracts, i.e. 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).
Ceded reinsurance is stated in a separate item under assets. The profit and loss items (premiums and payments) are deducted openly from the corresponding items in the gross account, while commission income is reported separately as its own item. Reinsurance acquired (indirect business) is recognised as an insurance contract.
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 exactly to the day. If they are attributable to life insurance, they are included in insurance provision.
Insurance provisions are essentially established in the life and health insurance lines. Their carrying amount is determined 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 individual contract basis. Insurance provisions are also established in the property and casualty lines that cover lifelong obligations (accident pensions as well as pensions in motor vehicle liability insurance). The insurance provision of the life insurer is calculated by taking into account contractually agreed calculation principles, which are explained in more detail under the underwriting risks in chapter 44, "Risk profile". These calculation principles take into account assumptions related to costs, mortality, invalidity and interest rate changes. Reasonable safety margins are included here in order to account for the risk of adjustments, 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).
The provision for unsettled claims includes both the provision 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 determined 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 assumptions made are reviewed continuously and adjusted if necessary. Examples of material assumptions include growth in claims frequency and in average claims expenses. Another material assumption is the settlement patterns 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 statistical methods individual loss provisions are set aside.
Discounting of claims reserves only takes place with respect 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 directly 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 underlying 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 consideration 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.
The provision for premium refunds includes the amounts for profit-related and non-profit-related profit
participation to which the policyholders are entitled on the basis of statutory or contractual provisions.
In life insurance, policies with a discretionary participation feature, differences between local measurement 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 measurement differences. The amount of the provision for deferred profit participation generally comes to 85 per cent of the measurement differentials after tax.
This item contains provision for contingent losses for acquired reinsurance portfolios as well as provision for expected cancellations and premium defaults.
The Liability Adequacy Test evaluates whether the established IFRS reserves are sufficient. For life insurance portfolios, a best estimate reserve is compared with the IFRS reserve less deferred acquisition costs plus unearned revenue liability (URL). This calculation is done separately each quarter for mixed insurance policies, pension policies, risk insurance policies, and unit-linked and indexlinked 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. Business 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.
| 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 2019 | 592,185 | 12,301 | 2,599,264 | 29,251 | 1,319 | 11,843 | 3,246,163 |
| Foreign exchange differences | 4,188 | ‒323 | 6,492 | ‒46 | 10 | 3 | 10,325 |
| Portfolio changes | 999 | ‒4,331 | ‒1 | 16 | ‒3,318 | ||
| Additions | 606 | 1,499 | 284 | 3,714 | 6,103 | ||
|---|---|---|---|---|---|---|---|
| Disposals | ‒204 | ‒133 | ‒564 | ‒4,600 | ‒5,501 | ||
| Premiums written | 2,846,783 | 2,846,783 | |||||
| Premiums earned | ‒2,826,030 | ‒2,826,030 | |||||
| Claims reporting year | 1,815,775 | 1,815,775 | |||||
| Claims payments reporting year | ‒957,048 | ‒957,048 | |||||
| Change in claims previous years | ‒57,330 | ‒57,330 | |||||
| Claims payments previous years | ‒794,890 | ‒794,890 | |||||
| At 31 December 2019 | 618,125 | 12,380 | 2,607,932 | 30,572 | 1,049 | 10,975 | 3,281,033 |
| Health insurance | |||||||
|---|---|---|---|---|---|---|---|
| At 1 January 2019 | 12,894 | 2,932,119 | 183,216 | 13,082 | 50,894 | 715 | 3,192,921 |
| Foreign exchange differences | 700 | 47 | 386 | ‒12 | 0 | ‒3 | 1,117 |
| Portfolio changes | 0 | 99 | ‒11 | 88 | |||
| Additions | 144,544 | 10,764 | 21,019 | 22 | 176,349 | ||
| Disposals | ‒1,276 | ‒9,203 | ‒21,206 | ‒30 | ‒31,715 | ||
| Premiums written | 1,130,821 | 1,130,821 | |||||
| Premiums earned | ‒1,123,558 | ‒1,123,558 | |||||
| Claims reporting year | 741,288 | 741,288 | |||||
| Claims payments reporting year | ‒556,796 | ‒556,796 | |||||
| Change in claims previous years | ‒12,149 | ‒12,149 | |||||
| Claims payments previous years | ‒157,705 | ‒157,705 | |||||
| At 31 December 2019 | 20,857 | 3,075,435 | 198,338 | 14,630 | 50,707 | 693 | 3,360,660 |
| Life insurance | ||||||
|---|---|---|---|---|---|---|
| At 1 January 2019 | 9,979,484 | 199,684 | 4,931 | 707,819 | 5,357 | 10,897,274 |
| Foreign exchange differences | 22,185 | 1,221 | ‒15 | 774 | ‒85 | 24,080 |
| Change in basis of consolidation | 95 | 0 | 95 | |||
| Portfolio changes | 1,642 | ‒282 | ‒582 | 779 | ||
| Additions | 239,543 | 2,496 | 453,260 | 1,161 | 696,460 | |
| Disposals | ‒435,531 | ‒231 | ‒15,071 | ‒1,483 | ‒452,316 | |
| Claims reporting year | 1,168,680 | 1,168,680 | ||||
| Claims payments reporting year | ‒1,018,554 | ‒1,018,554 | ||||
| Change in claims previous years | ‒14,337 | ‒14,337 | ||||
| Claims payments previous years | ‒152,847 | ‒152,847 | ||||
| At 31 December 2019 | 9,807,418 | 183,565 | 7,181 | 1,146,200 | 4,950 | 11,149,313 |
| Total | |||||||
|---|---|---|---|---|---|---|---|
| At 1 January 2019 | 605,079 | 12,923,904 | 2,982,164 | 47,264 | 760,032 | 17,915 | 17,336,358 |
| Foreign exchange differences | 4,888 | 21,909 | 8,098 | ‒73 | 784 | ‒86 | 35,521 |
| Change in basis of consolidation | 95 | 0 | 95 | ||||
| Portfolio changes | 999 | 1,642 | ‒4,515 | ‒583 | 5 | ‒2,451 | |
| Additions | 384,694 | 14,758 | 474,563 | 4,898 | 878,912 | ||
| Disposals | ‒437,011 | ‒9,566 | ‒36,841 | ‒6,114 | ‒489,532 | ||
| Premiums written | 3,977,604 | 3,977,604 | |||||
| Premiums earned | ‒3,949,588 | ‒3,949,588 | |||||
| Claims reporting year | 3,725,742 | 3,725,742 | |||||
| Claims payments reporting year | ‒2,532,397 | ‒2,532,397 | |||||
| Change in claims previous years | ‒83,816 | ‒83,816 | |||||
| Claims payments previous years | ‒1,105,442 | ‒1,105,442 | |||||
| At 31 December 2019 | 638,982 | 12,895,233 | 2,989,835 | 52,383 | 1,197,955 | 16,618 | 17,791,006 |
| Property and casualty insurance At 1 January 2019 27,557 22 245,429 2,600 275,608 Foreign exchange differences 614 ‒1 1,723 ‒10 2,327 Change in basis of consolidation ‒1 ‒1 Portfolio changes 732 3,834 4,566 Additions 1,489 1,489 Disposals ‒10 ‒1,618 ‒1,627 Premiums written 146,668 146,668 Premiums earned ‒146,105 ‒146,105 Claims reporting year 168,497 168,497 Claims payments reporting year ‒105,582 ‒105,582 Change in claims previous years ‒18,558 ‒18,558 Claims payments previous years ‒107,544 ‒107,544 At 31 December 2019 29,467 12 187,799 2,462 219,739 Health insurance At 1 January 2019 624 566 863 4 2,057 Foreign exchange differences 56 111 0 167 Portfolio changes 1 1 Disposals ‒46 ‒3 ‒48 Premiums written 2,557 2,557 Premiums earned ‒3,029 ‒3,029 Claims reporting year 1,289 1,289 Claims payments reporting year ‒1,045 ‒1,045 Change in claims previous years ‒65 ‒65 Claims payments previous years ‒293 ‒293 At 31 December 2019 207 520 862 1 1,591 Life insurance At 1 January 2019 130,590 5,089 17 135,696 Foreign exchange differences 122 21 0 143 Portfolio changes ‒42 ‒721 34 ‒729 Additions 6,877 4 6,880 Disposals ‒13,361 0 ‒13,361 Claims reporting year 25,348 25,348 Claims payments reporting year ‒22,101 ‒22,101 Change in claims previous years 1,312 1,312 Claims payments previous years ‒4,497 ‒4,497 At 31 December 2019 124,186 4,451 55 128,692 Total At 1 January 2019 28,181 131,178 251,381 2,621 413,361 Foreign exchange differences 670 121 1,856 ‒10 2,637 Change in basis of consolidation ‒1 ‒1 Portfolio changes 732 ‒42 3,115 34 3,839 Additions 6,877 1,493 8,370 Disposals ‒13,416 ‒1,620 ‒15,036 Premiums written 149,225 149,225 Premiums earned ‒149,134 ‒149,134 Claims reporting year 195,134 195,134 Claims payments reporting year ‒128,727 ‒128,727 Change in claims previous years ‒17,311 ‒17,311 Claims payments previous years ‒112,334 ‒112,334 At 31 December 2019 29,674 124,717 193,113 2,518 350,022 |
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 |
|---|---|---|---|---|---|---|---|---|
| _ | |
|---|---|
| ٠ | |
| ., | |
| × | |
| ٠ | |
| ۰, | |
| v | |
| ۰. | |
| 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 2019 | 564,628 | 12,279 | 2,353,835 | 29,251 | 1,319 | 9,243 | 2,970,555 |
| Foreign exchange differences | 3,574 | ‒322 | 4,768 | ‒46 | 10 | 13 | 7,998 |
| Change in basis of consolidation | 1 | 1 | |||||
| Portfolio changes | 267 | ‒8,166 | ‒1 | 16 | ‒7,884 | ||
| Additions | 606 | 1,499 | 284 | 2,225 | 4,614 | ||
| Disposals | ‒194 | ‒133 | ‒564 | ‒2,983 | ‒3,873 | ||
| Premiums written | 2,700,115 | 2,700,115 | |||||
| Premiums earned | ‒2,679,925 | ‒2,679,925 | |||||
| Claims reporting year | 1,647,278 | 1,647,278 | |||||
| Claims payments reporting year | ‒851,466 | ‒851,466 | |||||
| Change in claims previous years | ‒38,771 | ‒38,771 | |||||
| Claims payments previous years | ‒687,346 | ‒687,346 | |||||
| At 31 December 2019 | 588,659 | 12,369 | 2,420,132 | 30,572 | 1,049 | 8,514 | 3,061,294 |
| Health insurance | |||||||
|---|---|---|---|---|---|---|---|
| At 1 January 2019 | 12,270 | 2,931,554 | 182,353 | 13,082 | 50,894 | 711 | 3,190,864 |
| Foreign exchange differences | 644 | 47 | 274 | ‒12 | 0 | ‒3 | 950 |
| Portfolio changes | 0 | 97 | ‒11 | 87 | |||
| Additions | 144,544 | 10,764 | 21,019 | 22 | 176,349 | ||
| Disposals | ‒1,230 | ‒9,203 | ‒21,206 | ‒27 | ‒31,667 | ||
| Premiums written | 1,128,264 | 1,128,264 | |||||
| Premiums earned | ‒1,120,529 | ‒1,120,529 | |||||
| Claims reporting year | 739,999 | 739,999 | |||||
| Claims payments reporting year | ‒555,751 | ‒555,751 | |||||
| Change in claims previous years | ‒12,084 | ‒12,084 | |||||
| Claims payments previous years | ‒157,412 | ‒157,412 | |||||
| At 31 December 2019 | 20,649 | 3,074,915 | 197,475 | 14,630 | 50,707 | 692 | 3,359,069 |
| Life insurance | ||||||
|---|---|---|---|---|---|---|
| At 1 January 2019 | 9,848,894 | 194,595 | 4,931 | 707,819 | 5,340 | 10,761,578 |
| Foreign exchange differences | 22,063 | 1,200 | ‒15 | 774 | ‒85 | 23,937 |
| Change in basis of consolidation | 95 | 0 | 95 | |||
| Portfolio changes | 1,685 | 439 | ‒582 | ‒34 | 1,507 | |
| Additions | 232,667 | 2,496 | 453,260 | 1,158 | 689,579 | |
| Disposals | ‒422,170 | ‒231 | ‒15,071 | ‒1,483 | ‒438,955 | |
| Claims reporting year | 1,143,333 | 1,143,333 | ||||
| Claims payments reporting year | ‒996,453 | ‒996,453 | ||||
| Change in claims previous years | ‒15,650 | ‒15,650 | ||||
| Claims payments previous years | ‒148,350 | ‒148,350 | ||||
| At 31 December 2019 | 9,683,232 | 179,114 | 7,181 | 1,146,200 | 4,894 | 11,020,621 |
| 576,898 | 12,792,727 | 2,730,783 | 47,264 | 760,032 | 15,294 | 16,922,997 |
|---|---|---|---|---|---|---|
| 4,218 | 21,788 | 6,242 | ‒73 | 784 | ‒75 | 32,884 |
| 95 | 1 | 0 | 96 | |||
| 267 | 1,685 | ‒7,629 | ‒583 | ‒29 | ‒6,290 | |
| 377,817 | 14,758 | 474,563 | 3,405 | 870,542 | ||
| ‒423,595 | ‒9,566 | ‒36,841 | ‒4,493 | ‒474,496 | ||
| 3,828,380 | 3,828,380 | |||||
| ‒3,800,454 | ‒3,800,454 | |||||
| 3,530,609 | 3,530,609 | |||||
| ‒2,403,670 | ‒2,403,670 | |||||
| ‒66,505 | ‒66,505 | |||||
| ‒993,108 | ‒993,108 | |||||
| 609,308 | 12,770,516 | 2,796,722 | 52,383 | 1,197,955 | 14,100 | 17,440,984 |
| 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 2018 | 563,515 | 12,550 | 2,492,366 | 28,242 | 1,771 | 14,308 | 3,112,751 |
| Foreign exchange differences | ‒3,499 | ‒383 | ‒7,791 | ‒52 | 1 | ‒75 | ‒11,799 |
| Portfolio changes | ‒515 | ‒808 | ‒2,269 | ‒3,592 | |||
| Additions | 319 | 1,186 | 501 | 3,015 | 5,020 | ||
| Disposals | ‒185 | ‒124 | ‒954 | ‒3,136 | ‒4,399 | ||
| Premiums written | 2,774,435 | 2,774,435 | |||||
| Premiums earned | ‒2,741,750 | ‒2,741,750 | |||||
| Claims reporting year | 1,769,180 | 1,769,180 | |||||
| Claims payments reporting year | ‒863,108 | ‒863,108 | |||||
| Change in claims previous years | ‒46,449 | ‒46,449 | |||||
| Claims payments previous years | ‒744,127 | ‒744,127 | |||||
| At 31 December 2018 | 592,185 | 12,301 | 2,599,264 | 29,251 | 1,319 | 11,843 | 3,246,163 |
| 10,727 | 2,799,040 | 165,494 | 11,580 | 51,545 | 657 | 3,039,042 |
|---|---|---|---|---|---|---|
| ‒200 | ‒105 | 81 | ‒12 | 0 | ‒2 | ‒238 |
| 492 | 97 | ‒158 | 431 | |||
| 133,208 | 10,571 | 20,000 | 218 | 163,997 | ||
| ‒23 | ‒9,056 | ‒20,651 | ‒29,730 | |||
| 1,086,444 | 1,086,444 | |||||
| ‒1,084,569 | ‒1,084,569 | |||||
| 741,200 | 741,200 | |||||
| ‒571,444 | ‒571,444 | |||||
| ‒8,868 | ‒8,868 | |||||
| ‒143,344 | ‒143,344 | |||||
| 12,894 | 2,932,119 | 183,216 | 13,082 | 50,894 | 715 | 3,192,921 |
| 10,207,610 | 169,477 | 4,829 | 843,708 | 4,655 | 11,230,279 |
|---|---|---|---|---|---|
| ‒14,236 | ‒1,063 | ‒14 | ‒776 | ‒98 | ‒16,187 |
| 50,017 | ‒422 | ‒3,307 | ‒102 | 46,186 | |
| 147,563 | 164 | 26,881 | 1,397 | 176,006 | |
| ‒411,471 | ‒49 | ‒158,687 | ‒495 | ‒570,701 | |
| 1,224,385 | 1,224,385 | ||||
| ‒1,044,615 | ‒1,044,615 | ||||
| 11,324 | 11,324 | ||||
| ‒159,402 | ‒159,402 | ||||
| 9,979,484 | 199,684 | 4,931 | 707,819 | 5,357 | 10,897,274 |
| Total | |||||||
|---|---|---|---|---|---|---|---|
| At 1 January 2018 | 574,242 | 13,019,200 | 2,827,337 | 44,650 | 897,024 | 19,620 | 17,382,072 |
| Foreign exchange differences | ‒3,699 | ‒14,724 | ‒8,772 | ‒78 | ‒775 | ‒175 | ‒28,224 |
| Portfolio changes | ‒24 | 50,017 | ‒1,133 | ‒3,307 | ‒2,529 | 43,025 | |
| Additions | 281,090 | 11,921 | 47,382 | 4,630 | 345,023 | ||
| Disposals | ‒411,679 | ‒9,230 | ‒180,291 | ‒3,631 | ‒604,831 | ||
| Premiums written | 3,860,879 | 3,860,879 | |||||
| Premiums earned | ‒3,826,319 | ‒3,826,319 | |||||
| Claims reporting year | 3,734,766 | 3,734,766 | |||||
| Claims payments reporting year | ‒2,479,167 | ‒2,479,167 | |||||
| Change in claims previous years | ‒43,993 | ‒43,993 | |||||
| Claims payments previous years | ‒1,046,874 | ‒1,046,874 | |||||
| At 31 December 2018 | 605,079 | 12,923,904 | 2,982,164 | 47,264 | 760,032 | 17,915 | 17,336,358 |
| 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 2018 | 25,903 | 12 | 145,312 | 1,791 | 173,019 | ||
| Foreign exchange differences | 223 | 0 | 173 | ‒22 | 374 | ||
| Portfolio changes | 17 | ‒856 | ‒839 | ||||
| Additions | 10 | 831 | 841 | ||||
| Premiums written | 157,498 | 157,498 | |||||
| Premiums earned | ‒156,085 | ‒156,085 | |||||
| Claims reporting year | 142,869 | 142,869 | |||||
| Claims payments reporting year | ‒18,784 | ‒18,784 | |||||
| Change in claims previous years | ‒699 | ‒699 | |||||
| Claims payments previous years | ‒22,587 | ‒22,587 | |||||
| At 31 December 2018 | 27,557 | 22 | 245,429 | 2,600 | 275,608 | ||
| Health insurance | |||||||
| At 1 January 2018 | 200 | 1,159 | 31 | 1,391 | |||
| Foreign exchange differences | 3 | ‒68 | ‒2 | ‒67 | |||
| Portfolio changes | 466 | ‒457 | 456 | 464 | |||
| Additions | 4 | 4 | |||||
| Disposals | ‒68 | ‒68 | |||||
| Premiums written | 3,611 | 3,611 | |||||
| Premiums earned | ‒3,656 | ‒3,656 | |||||
| Claims reporting year | 789 | 789 | |||||
| Claims payments reporting year | ‒391 | ‒391 | |||||
| Change in claims previous years | 872 | 872 | |||||
| Claims payments previous years | ‒891 | ‒891 | |||||
| At 31 December 2018 | 624 | 566 | 863 | 4 | 2,057 | ||
| Life insurance | |||||||
| At 1 January 2018 | 136,223 | 5,477 | 17 | 141,716 | |||
| Foreign exchange differences | ‒85 | ‒18 | ‒104 | ||||
| Portfolio changes | ‒192 | ‒1 | ‒193 | ||||
| Additions | 237 | 0 | 238 | ||||
| Disposals | ‒5,593 | ‒5,593 | |||||
| Claims reporting year | 22,023 | 22,023 | |||||
| Claims payments reporting year | ‒19,685 | ‒19,685 | |||||
| Change in claims previous years | 2,463 | 2,463 | |||||
| Claims payments previous years | ‒5,169 | ‒5,169 | |||||
| At 31 December 2018 | 130,590 | 5,089 | 17 | 135,696 | |||
| Total | |||||||
| At 1 January 2018 | 26,103 | 137,394 | 150,820 | 1,808 | 316,126 | ||
| Foreign exchange differences | 227 | ‒154 | 153 | ‒22 | 204 | ||
| Portfolio changes | 483 | ‒649 | ‒401 | ‒567 | |||
| Additions | 248 | 835 | 1,083 | ||||
| Disposals | ‒5,661 | ‒5,661 | |||||
| Premiums written | 161,109 | 161,109 | |||||
| Premiums earned | ‒159,741 | ‒159,741 | |||||
| Claims reporting year | 165,681 | 165,681 | |||||
| Claims payments reporting year | ‒38,860 | ‒38,860 | |||||
| Change in claims previous years | 2,637 | 2,637 | |||||
| Claims payments previous years | ‒28,647 | ‒28,647 |
At 31 December 2018 28,181 131,178 251,381 2,621 413,361
| 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 2018 | 537,612 | 12,538 | 2,347,053 | 28,242 | 1,771 | 12,516 | 2,939,732 |
| Foreign exchange differences | ‒3,722 | ‒382 | ‒7,964 | ‒52 | 1 | ‒53 | ‒12,173 |
| Portfolio changes | ‒532 | 48 | ‒2,269 | ‒2,753 | |||
| Additions | 308 | 1,186 | 501 | 2,184 | 4,179 | ||
| Disposals | ‒185 | ‒124 | ‒954 | ‒3,136 | ‒4,399 | ||
| Premiums written | 2,616,937 | 2,616,937 | |||||
| Premiums earned | ‒2,585,666 | ‒2,585,666 | |||||
| Claims reporting year | 1,626,311 | 1,626,311 | |||||
| Claims payments reporting year | ‒844,324 | ‒844,324 | |||||
| Change in claims previous years | ‒45,750 | ‒45,750 | |||||
| Claims payments previous years | ‒721,540 | ‒721,540 | |||||
| At 31 December 2018 | 564,628 | 12,279 | 2,353,835 | 29,251 | 1,319 | 9,243 | 2,970,555 |
| Health insurance | |||||||
|---|---|---|---|---|---|---|---|
| At 1 January 2018 | 10,526 | 2,797,881 | 165,463 | 11,580 | 51,545 | 657 | 3,037,651 |
| Foreign exchange differences | ‒203 | ‒37 | 83 | ‒12 | 0 | ‒2 | ‒172 |
| Portfolio changes | 26 | 457 | ‒359 | ‒158 | ‒34 | ||
| Additions | 133,208 | 10,571 | 20,000 | 214 | 163,993 | ||
| Disposals | 45 | ‒9,056 | ‒20,651 | ‒29,662 | |||
| Premiums written | 1,082,834 | 1,082,834 | |||||
| Premiums earned | ‒1,080,912 | ‒1,080,912 | |||||
| Claims reporting year | 740,411 | 740,411 | |||||
| Claims payments reporting year | ‒571,052 | ‒571,052 | |||||
| Change in claims previous years | ‒9,741 | ‒9,741 | |||||
| Claims payments previous years | ‒142,453 | ‒142,453 | |||||
| At 31 December 2018 | 12,270 | 2,931,554 | 182,353 | 13,082 | 50,894 | 711 | 3,190,864 |
| Life insurance | ||||||
|---|---|---|---|---|---|---|
| At 1 January 2018 | 10,071,387 | 164,000 | 4,829 | 843,708 | 4,638 | 11,088,563 |
| Foreign exchange differences | ‒14,151 | ‒1,045 | ‒14 | ‒776 | ‒98 | ‒16,083 |
| Portfolio changes | 50,209 | ‒421 | ‒3,307 | ‒102 | 46,379 | |
| Additions | 147,326 | 164 | 26,881 | 1,396 | 175,768 | |
| Disposals | ‒405,878 | ‒49 | ‒158,687 | ‒495 | ‒565,108 | |
| Claims reporting year | 1,202,363 | 1,202,363 | ||||
| Claims payments reporting year | ‒1,024,930 | ‒1,024,930 | ||||
| Change in claims previous years | 8,861 | 8,861 | ||||
| Claims payments previous years | ‒154,234 | ‒154,234 | ||||
| At 31 December 2018 | 9,848,894 | 194,595 | 4,931 | 707,819 | 5,340 | 10,761,578 |
| Total | |||||||
|---|---|---|---|---|---|---|---|
| At 1 January 2018 | 548,138 | 12,881,806 | 2,676,517 | 44,650 | 897,024 | 17,812 | 17,065,946 |
| Foreign exchange differences | ‒3,926 | ‒14,570 | ‒8,925 | ‒78 | ‒775 | ‒153 | ‒28,428 |
| Portfolio changes | ‒507 | 50,666 | ‒731 | ‒3,307 | ‒2,529 | 43,593 | |
| Additions | 280,842 | 11,921 | 47,382 | 3,795 | 343,940 | ||
| Disposals | ‒406,018 | ‒9,230 | ‒180,291 | ‒3,631 | ‒599,169 | ||
| Premiums written | 3,699,770 | 3,699,770 | |||||
| Premiums earned | ‒3,666,578 | ‒3,666,578 | |||||
| Claims reporting year | 3,569,085 | 3,569,085 | |||||
| Claims payments reporting year | ‒2,440,306 | ‒2,440,306 | |||||
| Change in claims previous years | ‒46,630 | ‒46,630 | |||||
| Claims payments previous years | ‒1,018,226 | ‒1,018,226 | |||||
| At 31 December 2018 | 576,898 | 12,792,727 | 2,730,783 | 47,264 | 760,032 | 15,294 | 16,922,997 |
The interest rates used as an accounting basis for the insurance provision were as follows:
| In per cent | Health insurance | Life insurance |
|---|---|---|
| 2019 | ||
| For insurance provision | 1.50‒5.50 | 0.00‒4.00 |
| For deferred acquisition costs | 1.50‒5.50 | 2.41‒2.59 |
| 2018 | ||
| For insurance provision | 1.50‒5.50 | 0.00‒4.00 |
| For deferred acquisition costs | 1.50‒5.50 | 2.39‒2.59 |
| At 1 January | 645,937 | 771,927 |
|---|---|---|
| Fluctuation in value, available-for-sale | ||
| securities | 431,492 | ‒132,275 |
| Revaluations through profit or loss | 481 | 6,284 |
| At 31 December | 1,077,910 | 645,937 |
| Claims payments In € thousand |
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Financial year | 751,599 | 773,996 | 714,267 | 778,329 | 798,573 | 729,222 | 734,691 | 746,846 | 814,664 | 844,675 | 883,465 | |
| 1 year later | 1,130,543 1,138,253 1,068,406 1,142,524 1,174,639 1,106,066 1,106,222 1,118,644 1,233,210 1,285,373 | |||||||||||
| 2 years later | 1,228,232 1,229,475 1,177,160 1,255,972 1,285,030 1,204,327 1,202,760 1,231,387 1,361,592 | |||||||||||
| 3 years later | 1,286,633 1,276,504 1,225,202 1,308,792 1,334,305 1,251,179 1,251,488 1,284,981 | |||||||||||
| 4 years later | 1,311,375 1,300,643 1,251,970 1,339,606 1,362,980 1,278,898 1,280,522 | |||||||||||
| 5 years later | 1,327,499 1,318,705 1,266,660 1,358,361 1,380,369 1,305,351 | |||||||||||
| 6 years later | 1,341,509 1,329,655 1,278,874 1,372,186 1,391,295 | |||||||||||
| 7 years later | 1,350,716 1,338,526 1,289,116 1,383,713 | |||||||||||
| 8 years later | 1,358,874 1,346,403 1,294,229 | |||||||||||
| 9 years later | 1,366,121 1,350,826 | |||||||||||
| 10 years later | 1,372,460 | |||||||||||
| Cumulated payments | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |
| and provision for un | ||||||||||||
| settled claims In € thousand |
||||||||||||
| Financial year | 1,392,902 1,401,783 1,337,566 1,444,917 1,489,270 1,475,068 1,476,130 1,515,928 1,615,166 1,719,067 1,682,362 | |||||||||||
| 1 year later | 1,405,975 1,395,983 1,348,006 1,436,610 1,472,322 1,457,929 1,449,504 1,495,915 1,606,939 1,701,089 | |||||||||||
| 2 years later | 1,410,426 1,404,598 1,350,674 1,449,431 1,495,723 1,437,879 1,429,766 1,479,026 1,600,861 | |||||||||||
| 3 years later | 1,407,144 1,392,071 1,353,309 1,454,301 1,489,480 1,413,637 1,417,989 1,464,752 | |||||||||||
| 4 years later | 1,401,274 1,394,923 1,353,437 1,447,394 1,474,842 1,399,226 1,414,173 | |||||||||||
| 5 years later | 1,402,704 1,401,018 1,351,386 1,447,991 1,470,199 1,395,541 | |||||||||||
| 6 years later | 1,405,034 1,399,677 1,349,836 1,449,843 1,464,810 | |||||||||||
| 7 years later | 1,411,355 1,397,935 1,346,159 1,450,138 | |||||||||||
| 8 years later | 1,412,051 1,395,533 1,342,375 | |||||||||||
| 9 years later | 1,420,703 1,393,770 |
| Settlement gains/losses | ‒1,477 | 1,762 | 3,783 | ‒296 | 5,390 | 3,685 | 3,816 | 14,274 | 6,079 | 17,977 | 54,994 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Settlement gains/losses before 2009 |
‒7,114 | ||||||||||
| Total settlement gains/losses | 47,880 | ||||||||||
| Provision for unsettled claims for accident years before 2009 |
|||||||||||
| Provision for unsettled claims | 49,721 | 42,944 | 48,146 | 66,425 | 73,515 | 90,190 | 133,651 | 179,771 | 239,269 | 415,716 | 798,897 2,138,245 |
| 292,628 |
Plus other reserve components (components not in triangle, internal claims regulation costs, etc.) 177,059 Provisions for unsettled claims (gross at 31 December 2019) 2,607,932
This item relates to insurance provisions and remaining technical provisions for obligations from life insurance policies where the value or income is determined by investments 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 corresponds 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 investment 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.
Technical provisions for unit-linked and index-linked life insurance In thousand 31/12/2019 31/12/2018
| Gross | 4,646,152 | 4,721,904 |
|---|---|---|
| Reinsurers' share | ‒113 | ‒101 |
| Total | 4,646,039 | 4,721,803 |
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 indexlinked life insurance, only the premiums decreased by the savings portion are stated in the item "Premiums written".
In thousand
1‒12/2019 1‒12/2018
| Premiums written ‒ gross | 5,062,785 | 4,988,955 |
|---|---|---|
| Premiums written ‒ reinsurer's share | ‒175,330 | ‒191,957 |
| Premiums written ‒ net | 4,887,455 | 4,796,998 |
| Change in premiums earned ‒ gross | ‒28,063 | ‒38,876 |
| Change in premiums earned ‒ reinsurers' share | 1,679 | 2,623 |
| Premiums earned | 4,861,071 | 4,760,744 |
In thousand
1‒12/2019 1‒12/2018
| Property and casualty insurance | 2,806,564 | 2,731,141 |
|---|---|---|
| Health insurance | 1,127,991 | 1,081,893 |
| Life insurance | 1,081,627 | 1,119,394 |
| Total | 5,016,182 | 4,932,428 |
| Of which: | ||
| Austria | 3,573,023 | 3,503,782 |
| remaining EU member states and other states which are party to the Agreement on the European |
||
| Economic Area | 1,081,618 | 1,087,462 |
| other countries | 361,541 | 341,184 |
| Total | 5,016,182 | 4,932,428 |
| Indirect insurance In € thousand |
1‒12/2019 1‒12/2018 | |||
|---|---|---|---|---|
| Property and casualty insurance | 40,219 | 43,294 | ||
| Health insurance | 2,830 | 4,551 | ||
| Life insurance | 3,553 | 8,682 |
Total 46,602 56,527
In thousand
| Direct insurance | ||
|---|---|---|
| Fire and business interruption insurance | 252,819 | 254,239 |
| Liability insurance | 260,012 | 255,031 |
| Household insurance | 195,086 | 191,159 |
| Motor TPL insurance | 604,372 | 600,528 |
| Legal expense insurance | 96,687 | 91,288 |
| Marine, aviation and transport insurance | 67,244 | 66,412 |
| Other motor insurance | 573,887 | 549,919 |
| Other property insurance | 288,910 | 272,899 |
| Other forms of insurance | 79,056 | 74,762 |
| Casualty insurance | 388,491 | 374,904 |
| Total | 2,806,564 | 2,731,141 |
| Indirect insurance | ||
|---|---|---|
| Fire and business interruption insurance | 19,566 | 25,860 |
| Motor TPL insurance | 5,580 | 5,408 |
| Other forms of insurance | 15,072 | 12,026 |
| Total | 40,219 | 43,294 |
| Total direct and indirect insurance | ||
| (amount consolidated) | 2,846,783 | 2,774,435 |
| Reinsurance premiums ceded In € thousand |
1‒12/2019 1‒12/2018 | ||
|---|---|---|---|
| Property and casualty insurance | 146,668 | 157,498 | |
| Health insurance | 2,557 | 3,611 | |
| Life insurance | 26,106 | 30,848 | |
| Total | 175,330 | 191,957 |
In thousand
1‒12/2019 1‒12/2018
| Property and casualty insurance | 2,678,436 | 2,584,079 |
|---|---|---|
| Gross | 2,822,991 | 2,738,915 |
| Reinsurers' share | ‒144,555 | ‒154,836 |
| Health insurance | 1,123,027 | 1,080,339 |
| Gross | 1,126,022 | 1,083,991 |
| Reinsurers' share | ‒2,994 | ‒3,651 |
| Life insurance | 1,059,607 | 1,096,326 |
| Gross | 1,085,708 | 1,127,174 |
| Reinsurers' share | ‒26,102 | ‒30,848 |
| Total | 4,861,071 | 4,760,744 |
In thousand
In thousand
| Recognised simultaneously | 19,464 | 15,016 |
|---|---|---|
| Recognised with a delay of up to 1 year | ‒18,218 | ‒1,233 |
| Posted after more than 1 year | 140 | 462 |
| Property and casualty insurance | 1,386 | 14,245 |
| Recognised simultaneously | 4,015 | 2,283 |
| Recognised with a delay of up to 1 year | 23 | 2,269 |
| Health insurance | 4,038 | 4,551 |
| Recognised simultaneously | ‒5,570 | ‒9,334 |
| Recognised with a delay of up to 1 year | ‒128 | ‒3,417 |
| Life insurance | ‒5,698 | ‒12,751 |
| Total | ‒274 | 6,045 |
1‒12/2019 1‒12/2018
| Property and casualty insurance | 62,763 | ‒23,163 |
|---|---|---|
| Health insurance | 13,405 | 661 |
| Life insurance | 17,499 | 4,903 |
| Total | 93,667 | ‒17,600 |
| In € thousand | Gross | Reinsurers' share | Net | |||
|---|---|---|---|---|---|---|
| 1‒12/2019 1‒12/2018 adjusted |
1‒12/2019 1‒12/2018 1‒12/2019 1‒12/2018 | adjusted | ||||
| Property and casualty insurance | ||||||
| Claims expenses | ||||||
| Claims paid | 1,751,937 | 1,675,648 | ‒142,187 | ‒41,371 | 1,609,750 | 1,634,277 |
| Change in provision for unsettled claims | 6,508 | 115,482 | 59,797 | ‒100,800 | 66,305 | 14,682 |
| Total | 1,758,445 | 1,791,129 | ‒82,390 | ‒142,171 | 1,676,055 | 1,648,959 |
| Change in insurance provision | 410 | 134 | 10 | ‒10 | 420 | 123 |
| Change in other technical provisions | ‒3,993 | ‒3,035 | 0 | 0 | ‒3,993 | ‒3,035 |
| Non-profit-related and profit-related premium refund expenses | 46,985 | 44,026 | 0 | 0 | 46,985 | 44,026 |
| Total benefits | 1,801,848 | 1,832,254 | ‒82,380 | ‒142,181 | 1,719,467 | 1,690,073 |
| Health insurance | ||||||
| Claims expenses | ||||||
| Claims paid | 771,718 | 728,257 | ‒750 | ‒1,283 | 770,969 | 726,974 |
| Change in provision for unsettled claims | 13,989 | 17,584 | 114 | ‒378 | 14,102 | 17,206 |
| Total | 785,707 | 745,841 | ‒636 | ‒1,661 | 785,071 | 744,180 |
| Change in insurance provision | 143,265 | 133,192 | 46 | 68 | 143,310 | 133,260 |
| Change in other technical provisions | 19 | ‒9 | 0 | 0 | 19 | ‒9 |
| Non-profit-related and profit-related premium refund expenses | 31,875 | 30,524 | 0 | 0 | 31,875 | 30,524 |
| Total benefits | 960,866 | 909,547 | ‒590 | ‒1,593 | 960,275 | 907,955 |
| Life insurance | ||||||
| Claims expenses | ||||||
| Claims paid | 1,182,199 | 1,211,405 | ‒22,543 | ‒24,854 | 1,159,656 | 1,186,551 |
| Change in provision for unsettled claims | ‒17,270 | 31,699 | 656 | 368 | ‒16,615 | 32,067 |
| Total | 1,164,928 | 1,243,104 | ‒21,887 | ‒24,485 | 1,143,041 | 1,218,618 |
| Change in insurance provision | ‒208,217 | ‒215,945 | 5,672 | 1,813 | ‒202,545 | ‒214,132 |
| Change in other technical provisions | 232 | 0 | 0 | 0 | 232 | 0 |
| Non-profit-related and profit-related premium refund expenses and/or (deferred) | ||||||
| benefit participation expenses | 36,607 | 31,234 | 0 | 0 | 36,607 | 31,234 |
| Total benefits | 993,550 | 1,058,393 | ‒16,215 | ‒22,673 | 977,335 | 1,035,721 |
| Total | 3,756,264 | 3,800,194 | ‒99,186 | ‒166,447 | 3,657,078 | 3,633,748 |
| In € thousand 1‒12/2019 |
1‒12/2018 |
|---|---|
| Property and casualty insurance | |
| Acquisition costs | |
| Payments 614,472 |
589,686 |
| Change in deferred acquisition costs ‒10,117 |
‒13,515 |
| Other operating expenses 269,600 |
246,931 |
| Reinsurance commission and share of profit from reinsurance ceded ‒12,713 |
‒12,123 |
| 861,241 | 810,980 |
| Health insurance | |
| Acquisition costs | |
| Payments 107,054 |
109,335 |
| Change in deferred acquisition costs ‒14,504 |
‒11,431 |
| Other operating expenses 95,733 |
86,522 |
| Reinsurance commission and share of profit from reinsurance ceded ‒470 |
‒570 |
| 187,813 | 183,856 |
| Life insurance | |
| Acquisition costs | |
| Payments 172,103 |
166,617 |
| Change in deferred acquisition costs 56,252 |
24,853 |
| Other operating expenses 134,408 |
129,253 |
| Reinsurance commission and share of profit from reinsurance ceded ‒4,700 |
‒906 |
| 358,062 | 319,817 |
| Total 1,407,116 |
1,314,653 |
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 5 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 reporting 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.
For the first-time application of IFRS 16 (Leases), UNIQA uses the modified retrospective method.
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 which estimates had to be made regarding their duration and the exercise of termination options. The terms used to calculate these contracts are up to 60 years. The average contract term of the remaining contracts is between three and five years.
The discount rate used to determine the liability is composed of the risk-free interest rate adjusted by the country risk, creditworthiness, quality of the collateral and an amortisation factor. The weighted average of the discount rate applied to the first-time recognition of the lease liability amounts to 1.5 per cent.
| 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 2018 | 408,767 | 0 | 236,817 | 0 | 645,583 |
| Currency translation | ‒1,250 | 0 | ‒150 | 0 | ‒1,401 |
| Additions | 3,838 | 0 | 28,712 | 0 | 32,550 |
| Disposals | ‒2,791 | 0 | ‒14,585 | 0 | ‒17,376 |
| Reclassifications | 2,811 | 0 | ‒1,084 | 0 | 1,726 |
| At 31 December 2018 | 411,374 | 0 | 249,709 | 0 | 661,083 |
| At 1 January 2019 | 411,374 | 0 | 249,709 | 0 | 661,083 |
| Currency translation | ‒364 | 25 | 269 | 9 | ‒61 |
| Change in basis of consolidation | 0 | ‒25 | 275 | ‒9 | 240 |
| Additions | 6,141 | 70,977 | 20,696 | 1,773 | 99,588 |
| Disposals | ‒2,511 | ‒394 | ‒21,964 | ‒16 | ‒24,884 |
| Reclassifications | ‒56 | 0 | ‒10,556 | 0 | ‒10,612 |
| At 31 December 2019 | 414,585 | 70,584 | 238,429 | 1,757 | 725,355 |
| 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 2018 | ‒165,367 | 0 | ‒169,606 | 0 | ‒334,973 |
| Currency translation | 395 | 0 | 20 | 0 | 415 |
| Additions from depreciation | ‒10,723 | 0 | ‒16,182 | 0 | ‒26,904 |
| Additions from impairment | ‒158 | 0 | 0 | 0 | ‒158 |
| Disposals | 1,990 | 0 | 11,414 | 0 | 13,403 |
| Reclassifications | ‒1,939 | 0 | 127 | 0 | ‒1,812 |
| Reversal of impairment | 0 | 0 | 8 | 0 | 8 |
| At 31 December 2018 | ‒175,801 | 0 | ‒174,219 | 0 | ‒350,021 |
| At 1 January 2019 | ‒175,801 | 0 | ‒174,219 | 0 | ‒350,021 |
| Currency translation | 170 | 0 | ‒102 | 0 | 68 |
| Change in basis of consolidation | 0 | 0 | 11 | 0 | 11 |
| Additions from depreciation | ‒10,874 | ‒10,254 | ‒15,004 | ‒659 | ‒36,791 |
| Additions from impairment | ‒13 | 0 | 0 | 0 | ‒13 |
| Disposals | 471 | 317 | 12,364 | 16 | 13,167 |
| Reclassifications | 0 | 0 | 4 | 0 | 4 |
| Reversal of impairment | 0 | 0 | 1 | 0 | 1 |
| At 31 December 2019 | ‒186,048 | ‒9,937 | ‒176,947 | ‒643 | ‒373,575 |
| Land and buildings for own use |
for own use | Other property, plant and equipment |
Usage rights from other property, plant and equipment |
Total |
|---|---|---|---|---|
| 243,400 | 0 | 67,210 | 0 | 310,610 |
| 235,573 | 0 | 75,489 | 0 | 311,062 |
| 228,537 | 60,647 | 61,482 | 1,114 | 351,780 |
| Usage rights from land and buildings |
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 2018 | 205,776 | 30,386 | 165,722 | 401,884 |
| At 31 December 2019 | 208,991 | 31,076 | 185,784 | 425,851 |
Other property, plant and equipment refers mainly to technical systems and operating and office equipment.
| Amounts recognised in the consolidated income statement | |
|---|---|
| Interest on lease liabilities | 1,074 |
| Expenses relating to short-term leases | 1,717 |
| Expenses relating to leases of low-value assets, excluding short term leases of low-value assets |
5,200 |
| Amounts recognised in the consolidated statement of cash flows |
|
| Cash outflows for leases | ‒10,628 |
| Future lease payments from operating leases | |
|---|---|
| at 31 December 2018 | 20,636 |
| Omission of short-term leases | ‒1,717 |
| Omission of leases for low-value assets | ‒13,001 |
| Estimate for termination and extension option | 66,477 |
| Lease liability at 1 January 2019 | 72,396 |
Based on US GAAP, deferred acquisition costs are accounted 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 unearned premiums. In life insurance, the deferred
acquisition costs are amortised in line with the pattern of expected 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 contract. If they are attributable to property and casualty insurance, they are amortised over the probable contractual 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 present 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 "Operating expenses".
Values of life, property and casualty insurance policies relate to expected future margins from purchased operations. They are recognised at the fair value at the acquisition date.
The amortisation of the current value of insurance contracts follows the progression of the estimated gross margins. The amortisation of the value of insurance contracts is recognised in the profit/(loss) for the period under "Amortisation of goodwill and impairment losses".
For the purpose of the impairment test, UNIQA has allocated the goodwill to cash-generating units (CGUs) below, which coincide with the countries in which UNIQA operates. An exception to this was the SIGAL Group, in which the three countries of Albania, Kosovo and North Macedonia were combined as one CGU due to their similar development and organisational connection:
| Albania/Kosovo/North Macedonia as subgroup of | ||
|---|---|---|
| the SIGAL Group | 23,299 | 22,863 |
| Bulgaria | 55,812 | 55,812 |
| Poland | 27,927 | 27,638 |
| Romania | 98,460 | 100,983 |
| Serbia | 19,998 | 19,898 |
| Czech Republic | 8,347 | 8,244 |
| Hungary | 16,179 | 16,660 |
| UNIQA Austria | 37,737 | 37,737 |
| Other | 3,567 | 5,677 |
| Total | 291,327 | 295,513 |
The impairment test was carried out in the fourth quarter of 2019. 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, the proportional net assets and any capital increases. The impairment of goodwill is recognised in profit/(loss) for the period under the item "Amortisation of goodwill and impairment losses".
The recoverable amount of the CGUs with goodwill allocated is calculated on the basis of value in use by applying generally accepted measurement principles by means of the discounted cash flow method (DCF). 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 business line, which are then totalled to yield the value for the entire company.
Phase 1: five-year company planning
The detailed company planning generally encompasses a period of five years. The company plans used for the calculation are the result of a structured and standardised management 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 Management Board and also include material assumptions regarding the combined ratio, capital earnings, market shares and the like.
The last year of the detailed planning phase is used as the basis for determining cash flows in phase 2. The growth in the start-up phase leading up to phase 2 was determined using a projection of the growth in insurance markets. This start-up phase denotes a period that is required for the insurance market to achieve a penetration rate equal to the Austrian level. It was assumed that the insurance markets would come into line with the Austrian level in terms of density and penetration in 40 to 60 years. 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).
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 (German treasury bonds with a maturity of 30 years) was used as a base interest rate.
The beta factor was determined on the basis of the monthly betas over the last five years for a defined peer group. The betas for the non-life, life and health insurance segments were determined using the revenues in the relevant segments of the individual peer group companies. The health insurance segment, which is strongly focused on the Austrian market, is operated in a manner similar to life insurance. A uniform beta factor for personal insurance is therefore used in relation to the health and life insurance lines.
The determination of the market risk premium was adjusted according to the recommendation of the Chamber of Tax Consultants and Auditors. It was derived from a dividend discount model. The necessary market data is retrieved from Bloomberg. 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 accordance 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 difference between equity and bond markets.
The calculation also factored in the inflation differential for countries outside the eurozone. In general, the inflation differential represents inflation trends in different countries and is used as a key indicator in assessing competitiveness. In order to calculate the inflation differential, 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 2019 In per cent |
Discount factor | Discount factor perpetuity | |||
|---|---|---|---|---|---|
| Property/ casualty |
Life & health |
Property/ casualty |
Life & health |
Property/casualty Life & health |
|
| Albania/Kosovo/North Macedonia as subgroup of the SIGAL Group1) |
12.7‒15.0 | 13.1‒15.4 | 12.9‒15.0 | 13.3‒15.4 | 6.2‒6.8 |
| Bosnia and Herzegovina | 16.3 | 16.7 | 16.8 | 17.2 | 6.3 |
| Bulgaria | 11.9 | 12.3 | 10.7 | 11.1 | 5.6 |
| Montenegro | 13.3 | 13.7 | 14.0 | 14.4 | 6.0 |
| Austria | 8.5 | 8.9 | 8.5 | 8.9 | 1.0 |
| Poland | 9.9 | 10.3 | 9.2 | 9.6 | 4.8 |
| Romania | 13.7 | 14.1 | 11.3 | 11.7 | 5.7 |
| Russia | 14.7 | 15.1 | 13.2 | 13.6 | 6.5 |
| Serbia | 13.7 | 14.1 | 13.7 | 14.1 | 6.2 |
| Slovakia | 9.1 | 9.5 | 9.1 | 9.5 | 4.5 |
| Czech Republic | 10.3 | 10.7 | 8.7 | 9.1 | 4.2 |
| Hungary | 12.8 | 13.2 | 11.7 | 12.2 | 5.1 |
1) The discount rate ranges listed for the SIGAL Group and the regions relate to the spread over the respective countries grouped under these headings.
| Capitalisation rate 2018 In per cent |
Discount factor | Discount factor perpetuity | |||
|---|---|---|---|---|---|
| Property/ casualty |
Life & health |
Property/ casualty |
Life & health |
Property/casualty Life & health |
|
| Albania/Kosovo/North Macedonia as subgroup of the SIGAL Group1) |
12.1‒13.6 | 12.6‒14.0 | 11.6‒13.7 | 12.1‒14.1 | 6.4‒7.0 |
| Bosnia and Herzegovina | 15.1 | 15.6 | 15.0 | 15.5 | 6.6 |
| Bulgaria | 10.5 | 11.0 | 9.8 | 10.3 | 5.8 |
| Montenegro | 14.3 | 14.7 | 12.9 | 13.3 | 6.1 |
| Austria | 8.6 | 9.1 | 8.6 | 9.1 | 1.0 |
| Poland | 9.4 | 9.8 | 9.0 | 9.4 | 4.8 |
| Romania | 12.8 | 13.3 | 11.1 | 11.6 | 5.8 |
| Russia | 12.7 | 13.1 | 12.4 | 12.8 | 6.7 |
| Serbia | 13.1 | 13.6 | 12.6 | 13.1 | 6.4 |
| Slovakia | 9.2 | 9.6 | 9.2 | 9.6 | 4.6 |
| Czech Republic | 9.0 | 9.5 | 8.3 | 8.8 | 4.4 |
| Hungary | 11.7 | 12.2 | 11.0 | 11.5 | 5.3 |
1) The discount rate ranges listed for the SIGAL Group and the regions relate to the spread over the respective countries grouped under these headings.
Due to the assumed development of cash flows an impairment was made for the CGU Slovakia amounting to €120 thousand, and for the CGU Montenegro amounting to €81 thousand. There was also an impairment amounting to €1,852 thousand recognised in the financial year for the CGU Bosnia on account of an increased retention requirement.
In order to substantiate the results of the calculation and estimation of the value in use, random 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 markets, as well as the associated implementation of the individual profit goals. These forecasts and the related assessment of how the situation in the markets will develop in the future, under the influence of the continuing financial crisis in individual markets, are the largest uncertainties 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. Despite slower economic growth, income expectations have not changed significantly compared to previous years.
A sensitivity analysis shows that if there was a rise in interest rates of 50 basis points or a change in the underlying cash flow by –5 per cent, the CGU Bulgaria's value could fall below its carrying amount.
Other intangible assets include both purchased and internally generated 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.
Rights of use for leased intangible assets are not recognised.
The amortisation of the other intangible assets is 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".
The carrying amounts of UNIQA's non-financial assets – excluding deferred tax assets – are reviewed at every reporting 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 assets under construction are tested for impairment annually.
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 |
Deferred acquisition costs |
Insurance contract portfolio |
Goodwill | Other intangible assets |
Total |
|---|---|---|---|---|---|
| At 1 January 2018 | 1,133,156 | 112,903 | 377,814 | 247,420 | 1,871,293 |
| Currency translation | ‒3,307 | ‒7 | ‒36 | ‒1,115 | ‒4,465 |
| Additions | 0 | 0 | 0 | 90,726 | 90,726 |
| Disposals | 0 | 0 | 0 | ‒4,954 | ‒4,954 |
| Interest capitalised | 2,922 | 0 | 0 | 0 | 2,922 |
| Capitalisation | 167,613 | 0 | 0 | 0 | 167,613 |
| Portfolio additions and disposals | 22,267 | 0 | 0 | 0 | 22,267 |
| Amortisation | ‒170,555 | 0 | 0 | 0 | ‒170,555 |
| At 31 December 2018 | 1,152,095 | 112,896 | 377,779 | 332,076 | 1,974,845 |
| At 1 January 2019 | 1,152,095 | 112,896 | 377,779 | 332,076 | 1,974,845 |
| Currency translation | 2,738 | ‒701 | ‒2,068 | ‒90 | ‒121 |
| Change in basis of consolidation | 0 | 0 | ‒109 | 0 | ‒109 |
| Additions | 0 | 0 | 0 | 77,886 | 77,886 |
| Disposals | 0 | 0 | 0 | ‒2,917 | ‒2,917 |
| Reclassifications | 0 | 0 | 0 | 15 | 15 |
| Interest capitalised | ‒8,399 | 0 | 0 | 0 | ‒8,399 |
| Capitalisation | 238,513 | 0 | 0 | 0 | 238,513 |
| Portfolio additions and disposals | 145 | 0 | 0 | 0 | 145 |
| Amortisation | ‒261,297 | 0 | 0 | 0 | ‒261,297 |
| At 31 December 2019 | 1,123,795 | 112,195 | 375,601 | 406,970 | 2,018,561 |
| Accumulated amortisation and impairment losses In € thousand |
Deferred acquisition costs |
Insurance contract portfolio |
Goodwill | Other intangible assets |
Total |
|---|---|---|---|---|---|
| At 1 January 2018 | ‒99,591 | ‒82,230 | ‒159,924 | ‒341,745 | |
| Currency translation | 24 | 0 | 788 | 812 | |
| Additions from amortisation | ‒2,639 | ‒35 | ‒12,668 | ‒15,342 | |
| Disposals | 0 | 0 | 314 | 314 | |
| At 31 December 2018 | ‒102,206 | ‒82,265 | ‒171,490 | ‒355,961 | |
| At 1 January 2019 | ‒102,206 | ‒82,265 | ‒171,490 | ‒355,961 | |
| Currency translation | 687 | 0 | 285 | 973 | |
| Change in basis of consolidation | 0 | 44 | 0 | 44 | |
| Additions from amortisation | ‒2,509 | ‒2,053 | ‒18,862 | ‒23,425 | |
| Disposals | 0 | 0 | 927 | 927 | |
| Reversal of impairment | 0 | 0 | ‒1 | ‒1 | |
| Reclassifications | 0 | 0 | ‒4 | ‒4 | |
| At 31 December 2019 | ‒104,028 | ‒84,274 | ‒189,145 | ‒377,446 |
| Carrying amounts In € thousand |
Deferred acquisition costs |
Insurance contract portfolio |
Goodwill | Other intangible assets |
Total |
|---|---|---|---|---|---|
| At 1 January 2018 | 1,133,156 | 13,313 | 295,584 | 87,496 | 1,529,548 |
| At 31 December 2018 | 1,152,095 | 10,690 | 295,513 | 160,587 | 1,618,885 |
| At 31 December 2019 | 1,123,795 | 8,168 | 291,327 | 217,826 | 1,641,116 |
Other intangible assets mainly comprise software.
| In € thousand | 31/12/2019 | 31/12/2018 |
|---|---|---|
| Reinsurance receivables | ||
| Receivables from reinsurance business | 50,912 | 32,179 |
| 50,912 | 32,179 | |
| Insurance receivables | ||
| from policyholders | 250,196 | 231,222 |
| from insurance intermediaries | 22,941 | 20,455 |
| from insurance companies | 12,419 | 7,968 |
| 285,557 | 259,645 | |
| Other receivables | ||
| Receivables from services | 69,070 | 73,546 |
| Other tax refund claims | 14,654 | 19,108 |
| Remaining receivables | 73,434 | 112,439 |
| 157,158 | 205,092 | |
| Subtotal | 493,627 | 496,916 |
| of which receivables with a remaining maturity of |
||
| up to 1 year | 491,049 | 494,462 |
| more than 1 year | 2,578 | 2,455 |
| 493,627 | 496,916 | |
| of which receivables with values not yet impaired |
||
| up to 3 months overdue | 8,177 | 11,792 |
| more than 3 months overdue | 8,034 | 8,971 |
| Other assets | 53,033 | 43,793 |
| Total receivables including insurance | ||
| receivables | 546,659 | 540,709 |
Other assets basically comprise the balance of the deferred income from the settlement of indirect business.
The fair values are essentially equal to the carrying amounts.
| Impairments | Reinsurance receivables | Insurance receivables1) | Other receivables | |||
|---|---|---|---|---|---|---|
| In € thousand | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 |
| At 1 January | ‒2,329 | ‒525 | ‒17,187 | ‒18,858 | ‒6,694 | ‒7,942 |
| Allocation | 0 | ‒1,804 | ‒1,957 | ‒4,078 | ‒1,312 | ‒829 |
| Use | 2,304 | 0 | 779 | 1,239 | 609 | 439 |
| Reversal | 25 | 0 | 6,380 | 3,943 | 1,009 | 1,816 |
| Currency translation | 0 | 0 | ‒91 | 567 | ‒582 | ‒178 |
| At 31 December | 0 | ‒2,329 | ‒12,076 | ‒17,187 | ‒6,971 | ‒6,694 |
1) Impairment losses related to policyholders are shown under the cancellation provision.
There are no material overdue receivables that have not been impaired.
| In € thousand | 31/12/2019 31/12/2018 | ||
|---|---|---|---|
| Cash collateral in connection with securities lending transactions |
0 | 772,196 | |
| Current bank balances, cheques and cash-in-hand | 479,621 | 672,195 | |
| Total | 479,621 | 1,444,391 |
Cash and cash equivalents are measured at the exchange rate in effect on the reporting date. The item "Cash and cash equivalents" in the consolidated statement of cash flows corresponds to the item with the same name in the consolidated statement of financial position.
Non-current assets and liabilities are classified as held for sale if it is highly probable that they will be realised through sale rather than continued use.
These assets or disposal groups are recognised at the lower of their carrying amounts or fair values less costs to sell. Any impairment loss of a disposal group is firstly allocated to goodwill and then to the remaining assets and liabilities on a proportional basis. No loss is allocated to financial assets, deferred tax assets, assets in connection with employee benefits or investment property that continues to be measured based on the Group's other accounting policies. Impairment losses on the first-time classification as held for sale and any subsequent impairment losses are recognised in profit or loss.
Intangible assets held for sale and property, plant and equipment are no longer amortised or depreciated. Investments recognised using the equity method are no longer equity-accounted.
Following the closing of the sale of Medial Beteiligungs-Gesellschaft m.b.H on 15 January 2018, the items previously reported under assets in disposal groups held for sale were derecognised.
Since the third quarter of 2018, sales talks have been held on the sale of 19 commercial properties. This is a portfolio of specialist stores and shopping centres in Austria. They have therefore been reported under assets in disposal groups held for sale (health and life business lines). In the course of the financial year, 18 real estate properties were sold. As at 31 December 2019, one property with a carrying amount of €13,778 thousand was returned to the item "Investment property", following a change in estimates of its saleability.
| Income tax In € thousand |
1‒12/2019 1‒12/2018 | |
|---|---|---|
| Actual tax ‒ reporting year | 33,647 | 11,059 |
| Actual tax ‒ previous years | 11,345 | 21,087 |
| Deferred tax | 14,180 | 27,324 |
| Total | 59,172 | 59,470 |
The basic corporate income tax rate applied for all segments was 25 per cent. National tax regulations in conjunction with life insurance profit participation may lead to a different calculated income tax rate.
| Reconciliation statement In € thousand |
1‒12/2019 1‒12/2018 | |
|---|---|---|
| Earnings before taxes | 295,667 | 294,618 |
| Expected tax expenses1) | 73,917 | 73,655 |
| Adjusted by tax effects from | ||
| Tax-free investment income | ‒17,250 | ‒17,807 |
| Amortisation of goodwill and impairment losses | 513 | ‒35 |
| Tax-neutral consolidation effect | 27 | ‒81 |
| Other non-deductible expenses/other tax-exempt | ||
| income | 994 | 2,749 |
| Changes in tax rates | ‒20 | 0 |
| Deviations in tax rates | ‒18,069 | ‒12,329 |
| Tax deducted at source | 1,356 | 328 |
| Taxes for previous years | 8,532 | 21,758 |
| Lapse of loss carried forward and other | 9,171 | ‒8,767 |
| Income tax expenses | 59,172 | 59,470 |
| Average effective tax burden | ||
| (in per cent) | 20.0 | 20.2 |
1) Earnings before taxes multiplied by the corporate income tax rate
UNIQA exercises in Austria the option of forming a group of companies for tax purposes. There are three taxable groups of companies with the parent groups UNIQA Insurance 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.
The calculation of deferred tax is based on the specific tax rates of each country, which were between 9 and 25 per cent in the financial year (2018: between 5 and 25 per cent). Changes in tax rates in effect at 31 December 2019 are taken into account.
The deferred tax assets and deferred tax liabilities stated in the consolidated statement of financial position performed as follows:
| At 1 January 2018 | ‒287,403 |
|---|---|
| Changes recognised in profit/(loss) | ‒27,324 |
| Changes recognised in other comprehensive income | 63,957 |
| Reclassifications held for sale | 1,088 |
| Foreign exchange differences | 441 |
| At 31 December 2018 | ‒249,241 |
| At 1 January 2019 | ‒249,241 |
| Changes recognised in profit/(loss) | ‒14,180 |
| Changes recognised in other comprehensive income | ‒106,170 |
| Reclassifications held for sale | ‒1,088 |
| Foreign exchange differences | 186 |
| At 31 December 2019 | ‒370,492 |
Changes recorded in other comprehensive income essentially relate to measurements of financial instruments available for sale and revaluation 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 | 31/12/2019 31/12/2018 | |
|---|---|---|
| Deferred tax assets (gross) | ||
| Technical items | 57,568 | 54,249 |
| Investments | 22,349 | 26,678 |
| Actuarial gains and losses on defined benefit | ||
| obligations | 61,891 | 45,316 |
| Loss carried forward | 12,471 | 14,043 |
| Other items | 22,212 | 12,773 |
| Total | 176,490 | 153,059 |
| Deferred tax liabilities (gross) | ||
| Technical items | ‒311,477 | ‒298,358 |
| Investments | ‒211,903 | ‒60,737 |
| Actuarial gains and losses on defined benefit | ||
| obligations | ‒1 | ‒1 |
| Other items | ‒23,600 | ‒43,203 |
| Total | ‒546,982 | ‒402,300 |
| Net deferred tax | ‒370,492 | ‒249,241 |
The temporary differences in connection with shares in subsidiaries and associates for which no deferred tax liabilities were recognised amounted to €1,657,532 thousand (2018: €2,821,988 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 forecasts are based on business plans that are prepared, reviewed and approved using a uniform procedure throughout the company. Especially convincing evidence regarding 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 €12,471 thousand (2018: €14,043 thousand) attributable to tax loss carryforwards.
These tax assets from loss carryforwards are forfeited as follows:
| In € thousand | 31/12/2019 31/12/2018 | |||
|---|---|---|---|---|
| Up to 1 year | 11,187 | 4,784 | ||
| 2 to 5 years | 19,604 | 13,275 | ||
| More than 5 years | 101,338 | 136,578 | ||
| Total | 132,128 | 154,637 |
Deferred tax assets from loss carryforwards in the amount of €10,577 thousand (2018: €11,922 thousand) were not recognised, as a realisation of these in the near future cannot be assumed, taking maturities into account.
There are individual contractual pension obligations, individual contractual bridge payments, and pension allowances in accordance with association recommendations.
The calculation of defined benefit obligations is carried out annually using the projected unit credit (PUC) method. 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.
Revaluations of net liabilities from defined benefit plans are recognised directly in other comprehensive income. The revaluation includes the actuarial gains and losses, the income from plan assets (not including projected interest income) and the effect of any asset ceiling. Net interest expenses (income) on net liabilities (assets) from defined benefit plans are calculated for the reporting period by applying the discount rate. The discount rate was used to measure the defined benefit obligation at the start of the annual reporting period. This discount 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 contribution and benefit payments over the course of the reporting period are taken into account. Net interest expenses and other expenses for defined benefit plans are recognised through profit or loss in profit/(loss) for the period.
If a plan's defined benefits are changed or a plan is curtailed, the resulting change in the benefit relating to past service costs and the gain or loss on the curtailment is recognised 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 benefit obligations are stated under the balance sheet item "Other provisions".
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 individual entitled to the claim receives a pension at 60, 50 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 generally guaranteed. The pensions that are based on individual policies or on association recommendations are financed through provisions. The final pension contribution which guarantees a fixed cash value for when the beneficiary begins their retirement is set aside during the contribution phase and transferred to the pension fund at the time of retirement. The financing is specified in the pension fund's business plan, in the works council agreement and in the pension fund contract.
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 terminated, unless the employee resigns, leaves without an important reason or is dismissed.
| Defined benefit obligations In € thousand |
Defined benefit obligations for pensions |
Plan assets at fair value |
Net defined benefit obligations for pensions |
Termination benefits |
Total defined benefit obligations |
|---|---|---|---|---|---|
| At 1 January 2019 | 439,983 | ‒90,102 | 349,881 | 143,687 | 493,568 |
| Current service costs | 16,203 | 0 | 16,203 | 3,180 | 19,383 |
| Interest expense/income | 7,158 | ‒1,376 | 5,782 | 1,387 | 7,169 |
| Past service costs and gains or losses from settlements | ‒1,378 | 0 | ‒1,378 | 0 | ‒1,378 |
| Components of defined benefit obligations recognised in the | |||||
| income statement | 21,983 | ‒1,376 | 20,608 | 4,567 | 25,175 |
| Return on plan assets recognised in other comprehensive income | 0 | ‒5,971 | ‒5,971 | 288 | ‒5,683 |
| Actuarial gains and losses that arise from changes in demographic assumptions |
51 | 0 | 51 | 690 | 741 |
| Actuarial gains and losses that arise from changes in financial | |||||
| assumptions | 55,527 | 0 | 55,527 | 7,738 | 63,266 |
| Actuarial gains and losses that arise from experience adjustments | 7,367 | 0 | 7,367 | 3,679 | 11,046 |
| Other comprehensive income | 62,946 | ‒5,971 | 56,974 | 12,395 | 69,369 |
| Changes from currency translation | 6 | 0 | 6 | 1 | 7 |
| Payments | ‒19,433 | 0 | ‒19,433 | ‒26,078 | ‒45,511 |
| Contribution to plan assets | 0 | ‒8,116 | ‒8,116 | 0 | ‒8,116 |
| Transfer in | 7 | 0 | 7 | ‒254 | ‒247 |
| Transfer out | ‒7,022 | 5,029 | ‒1,993 | 0 | ‒1,993 |
| At 31 December 2019 | 498,469 | ‒100,536 | 397,933 | 134,318 | 532,251 |
| Defined benefit obligations In € thousand |
Defined benefit obligations for pensions |
Plan assets at fair value |
Net defined benefit obligations for pensions |
Termination benefits |
Total defined benefit obligations |
|---|---|---|---|---|---|
| At 1 January 2018 | 503,814 | ‒84,175 | 419,639 | 167,998 | 587,637 |
| Current service costs | 16,466 | 0 | 16,466 | 4,661 | 21,126 |
| Interest expense/income | 7,489 | ‒1,203 | 6,285 | 1,378 | 7,663 |
| Past service costs and gains or losses from settlements | ‒9,267 | 0 | ‒9,267 | 0 | ‒9,267 |
| Components of defined benefit obligations recognised in the income statement |
14,687 | ‒1,203 | 13,483 | 6,038 | 19,522 |
| Return on plan assets recognised in other comprehensive income | 0 | 6,612 | 6,612 | 78 | 6,689 |
| Actuarial gains and losses that arise from changes in demographic assumptions |
24,532 | 0 | 24,532 | 220 | 24,752 |
| Actuarial gains and losses that arise from changes in financial assumptions |
‒11,473 | 0 | ‒11,473 | ‒3,352 | ‒14,825 |
| Actuarial gains and losses that arise from experience adjustments | 4,052 | 0 | 4,052 | ‒506 | 3,546 |
| Other comprehensive income | 17,110 | 6,612 | 23,722 | ‒3,561 | 20,161 |
| Changes from currency translation | ‒14 | 0 | ‒14 | 0 | ‒14 |
| Payments | ‒88,160 | 0 | ‒88,160 | ‒26,659 | ‒114,819 |
| Contribution to plan assets | 0 | ‒19,429 | ‒19,429 | ‒135 | ‒19,563 |
| Transfer in | 2,446 | 0 | 2,446 | 5 | 2,452 |
| Transfer out | ‒9,900 | 8,093 | ‒1,807 | 0 | ‒1,807 |
| At 31 December 2018 | 439,983 | ‒90,102 | 349,881 | 143,687 | 493,568 |
The plan assets for the defined benefit obligations are comprised as follows:
| In per cent | 31/12/2019 | 31/12/2018 | ||
|---|---|---|---|---|
| Listed | Unlisted | Listed | Unlisted | |
| Bonds ‒ euro | 29.4 | 0.1 | 13.4 | 0.0 |
| Bonds ‒ euro high yield | 0.3 | 0.0 | 0.6 | 0.0 |
| Corporate bonds ‒ euro | 20.1 | 0.0 | 20.2 | 0.0 |
| Equities ‒ euro | 6.8 | 0.0 | 4.6 | 0.0 |
| Equities ‒ non-euro | 6.1 | 0.0 | 4.0 | 0.0 |
| Equities ‒ emerging markets |
3.0 | 0.0 | 4.0 | 0.0 |
| Alternative investment | ||||
| instruments | 0.5 | 3.7 | 0.5 | 2.7 |
| Land and buildings | 0.0 | 5.0 | 0.0 | 5.2 |
| Cash | 0.0 | 24.0 | 0.0 | 42.1 |
| HTM bonds/term deposits | 1.2 | 0.0 | 2.6 | 0.0 |
| Total | 67.2 | 32.8 | 49.9 | 50.1 |
Contributions to plan assets are expected for the coming year in the amount of €6,580 thousand.
The measurement of the defined benefit obligations is based on the following actuarial calculation parameters:
| Calculation factors applied In per cent |
2019 | 2018 |
|---|---|---|
| Discount rate in termination benefits |
0.3 | 1.2 |
| Discount rate in pensions |
0.8 | 1.7 |
| Valorisation of remuneration | 3.0 | 3.0 |
| Valorisation of pensions | 0.8 | 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 | Termination benefits |
|---|---|---|
| 31 December 2019 | 14.6 | 7.7 |
| 31 December 2018 | 12.9 | 7.6 |
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:
| In per cent | 2019 | 2018 | 2019 | 2018 |
|---|---|---|---|---|
| Remaining life expectancy | ||||
| Change in DBO (+ 1 year) | 3.8 | 3.4 | ||
| Change in DBO (‒ 1 year) | ‒4.0 | ‒3.5 | ||
| Discount rate | ||||
| Change in DBO (+1 percentage point) | ‒12.1 | ‒11.3 | ‒7.1 | ‒7.2 |
| Change in DBO (-1 percentage point) | 15.1 | 13.9 | 8.1 | 8.2 |
| Future salary increase rate | ||||
| Change in DBO (+ 0.75%) | 4.3 | 1.5 | 5.8 | 5.9 |
| Change in DBO (‒ 0.75%) | ‒3.8 | ‒1.5 | ‒5.3 | ‒5.4 |
| Future pension increase rate | ||||
| Change in DBO (+ 0.25%) | 3.6 | 3.3 | ||
| Change in DBO (‒ 0.25%) | ‒3.4 | ‒3.2 | ||
Obligations for contributions to defined contribution plans are recognised as expenses through profit or loss as soon as the associated work is performed. Prepaid contributions are recognised as assets if an entitlement to refund or reduction of future payments arises. The defined contribution plan is financed largely by UNIQA.
Board members, special policyholders and active employees 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 for retirement when they begin their retirement. This obligation is to be classified 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 transfer to the oldage pension or of an incapacity to work or the death as a participant. UNIQA has no obligations during the benefit phase.
Under the defined contribution company pension scheme, the employer pays the fixed amounts into company pension funds. The insurance contributions to company pension funds amounted to €4,231 thousand (2018: €3,318 thousand). The employer has satisfied their obligation by making these contributions.
| Personnel expenses In € thousand |
1‒12/2019 1‒12/2018 | |
|---|---|---|
| Salaries | 454,780 | 424,290 |
| Expenses for termination benefits | 4,567 | 6,038 |
| Pension expenses | 20,608 | 13,483 |
| Expenditure on mandatory social security contributions as well as income-based charges and compulsory contributions |
128,921 | 121,413 |
| Other social expenditures | 7,040 | 7,131 |
| Total | 615,916 | 572,356 |
| of which sales | 120,436 | 118,949 |
| of which administration | 493,351 | 458,730 |
| of which retirees | 2,129 | ‒5,323 |
| Average number of employees | 31/12/2019 31/12/2018 | |
|---|---|---|
| Total | 13,038 | 12,818 |
| of which sales | 4,202 | 4,271 |
|---|---|---|
| of which administration | 8,836 | 8,547 |
The share capital is comprised of 309,000,000 no-parvalue bearer shares. Capital reserves include unallocated capital reserves, which primarily result from share premiums.
A dividend of €0.53 per share was paid on 3 June 2019. This corresponds with a distribution amounting to €162,692 thousand. Subject to the approval of the Annual General Meeting, a dividend payment in the amount of €0.54 per share is planned for the financial year, which equates to a distribution in the amount of €165,761 thousand.
| Treasury shares | 31/12/2019 31/12/2018 | ||||
|---|---|---|---|---|---|
| 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 | 5,774 | 5,774 | |||
| Share of subscribed capital in % | 0.39 | 0.39 | |||
| Total | 2,034,739 | 2,034,739 |
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 Supervisory 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 28 May 2018, 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 29 May 2018. The proportion of the
share capital represented by newly acquired shares, together with the proportion of other treasury shares that the company has already acquired 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 shares held via UNIQA Österreich Versicherungen AG stem from the merger of BL Syndikat Beteiligungs Gesellschaft m.b.H., the transferring company, with UNIQA Insurance Group AG, the acquiring company. These shares held are not to be counted towards the 10 per cent limit.
Capital requirements are influenced by business performance resulting from organic growth and by acquisitions. In the context of Group management, the appropriate coverage of the solvency capital requirement in accordance with Solvency II on a consolidated basis is constantly monitored.
Quantitative and qualitative information related to capital management according to Solvency II are included in the "Solvency and Financial Condition Report" (SFCR).
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 transactions with non-controlling interests.
| Non-controlling interests In € thousand |
31/12/2019 | 31/12/2018 | |
|---|---|---|---|
| In measurement of financial instruments available for sale |
4,255 | ‒792 | |
| In actuarial gains and losses on defined | |||
| benefit plans | ‒207 | ‒177 | |
| In retained profit | 5,129 | 16,770 | |
| In other equity | 10,221 | ‒1,364 | |
| Total | 19,399 | 14,438 |
In July 2013, UNIQA Insurance Group AG successfully placed a supplementary capital bond with a volume of €350 million with institutional investors in Europe. The bond has a maturity period of 30 years and may only be terminated after 10 years. The coupon equals 6.875 per cent per annum during the first ten years; after that a variable interest rate applies. The supplementary capital bond meets 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 preparation 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 Solvency 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 amounts to 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.
| At 1 January 2018 | 869,349 | |||
|---|---|---|---|---|
| Amortisation of transaction costs | 335 | |||
| Additions from accrued interests | 23,139 | |||
| Disposals from accrued interests | ‒22,991 | |||
| At 31 December 2018 | 869,832 | |||
| At 1 January 2019 | 869,832 | |||
| Amortisation of transaction costs | 355 | |||
| Additions from accrued interests | 23,061 | |||
| Disposals from accrued interests | ‒23,139 | |||
| At 31 December 2019 | 870,110 | |||
| Maturity In € thousand |
2019 long term |
2019 short term |
2018 long term |
2018 short term |
| Subordinated liabilities | 847,034 | 23,075 | 846,693 | 23,139 |
|---|---|---|---|---|
| Carrying amounts In € thousand |
Liabilities from collateral received for securities lending |
Liabilities from loans |
Derivative financial instruments |
Lease liabilities | Total |
|---|---|---|---|---|---|
| At 1 January 2018 | 0 | 13,837 | 26,514 | 0 | 40,352 |
| Additions | 772,196 | 0 | 324 | 0 | 772,520 |
| Disposals | 0 | 0 | ‒12,010 | 0 | ‒12,010 |
| Changes from currency translation | 0 | 0 | ‒1 | 0 | ‒1 |
| Profit or loss from changes of exchange rates | 0 | 0 | ‒1,389 | 0 | ‒1,389 |
| Additions from accrued interests | 0 | 0 | 1,612 | 0 | 1,612 |
| Disposals from accrued interests | 0 | 0 | ‒1,706 | 0 | ‒1,706 |
| Ordinary amortisation | 0 | ‒894 | 0 | 0 | ‒894 |
| At 31 December 2018 | 772,196 | 12,943 | 13,345 | 0 | 798,484 |
| At 1 January 2019 | 772,196 | 12,943 | 13,345 | 0 | 798,484 |
| Additions | 0 | 3 | 37 | 75,179 | 75,219 |
| Disposals | ‒772,196 | 0 | ‒11,015 | ‒3,404 | ‒786,614 |
| Changes from currency translation | 0 | 0 | 7 | 0 | 7 |
| Profit or loss from changes of exchange rates | 0 | 0 | ‒1,413 | 0 | ‒1,413 |
| Additions from accrued interests | 0 | 0 | 30 | 859 | 890 |
| Disposals from accrued interests | 0 | 0 | ‒322 | 0 | ‒322 |
| Ordinary amortisation | 0 | ‒942 | 0 | ‒9,793 | ‒10,735 |
| At 31 December 2019 | 0 | 12,004 | 670 | 62,842 | 75,516 |
| Maturity In € thousand |
2019 long term |
2019 short term |
2018 long term |
2018 short term |
|---|---|---|---|---|
| Liabilities from collateral received for securities lending | 0 | 0 | 0 | 772,196 |
| Liabilities from loans | 11,104 | 900 | 12,943 | 0 |
| Derivative financial instruments | 1 | 669 | 12,456 | 889 |
| Lease liabilities | 57,861 | 4,980 | 0 | 0 |
| Total | 68,966 | 6,550 | 25,399 | 773,085 |
| Changes in financial liabilities In € thousand |
Subordinated liabilities | Financial liabilities | Changes in financial liabilities |
|---|---|---|---|
| At 1 January 2018 | 869,349 | 40,352 | 909,700 |
| Proceeds from other financing activities | 0 | 772,196 | 772,196 |
| Payments from other financing activities | 0 | ‒23,704 | ‒23,704 |
| Currency translation | 0 | ‒1 | ‒1 |
| Change in basis of consolidation | 0 | 22,810 | 22,810 |
| Other changes | 483 | ‒13,168 | ‒12,685 |
| At 31 December 2018 | 869,832 | 798,484 | 1,668,316 |
| At 1 January 2019 | 869,832 | 798,484 | 1,668,316 |
| Payments from other financing activities | 0 | ‒794,017 | ‒794,017 |
| Currency translation | 0 | 7 | 7 |
| Change in basis of consolidation | 0 | 10,255 | 10,255 |
| Other changes | 278 | 60,787 | 61,065 |
| At 31 December 2019 | 870,110 | 75,516 | 945,625 |
| In € thousand | 31/12/2019 31/12/2018 | |
|---|---|---|
| Reinsurance liabilities | ||
| Deposits retained on assumed reinsurance | 123,578 | 129,963 |
| Reinsurance settlement liabilities | 37,321 | 43,501 |
| 160,899 | 173,464 | |
| Insurance liabilities | ||
| to policyholders | 161,586 | 165,610 |
| to insurance brokers | 57,225 | 49,565 |
| to insurance companies | 16,279 | 9,953 |
| 235,091 | 225,129 | |
| Liabilities to credit institutions | 3,501 | 3,505 |
| Other liabilities | ||
| Personnel-related obligations | 87,763 | 102,688 |
| Liabilities from services | 86,813 | 87,493 |
| Liabilities from investment contracts | 59,368 | 56,446 |
| Other tax liabilities (without income tax) | 79,858 | 69,432 |
| Other liabilities | 67,424 | 72,164 |
| 381,227 | 388,223 | |
| Subtotal | 780,717 | 790,321 |
| of which liabilities with a maturity of | ||
| up to 1 year | 707,468 | 758,923 |
| more than 1 year and up to 5 years | 16,233 | 10,045 |
| more than 5 years | 57,017 | 21,353 |
| 780,717 | 790,321 | |
| Other debt | 22,378 | 16,889 |
| Total liabilities and other items classified as liabilities |
803,095 | 807,210 |
The item "Other debt" basically comprises the balance of the deferred income from the settlement of indirect business.
| In € thousand | 1‒12/2019 1‒12/2018 adjusted |
|
|---|---|---|
| Property and casualty insurance | 18,607 | 26,066 |
| Health insurance | 157,234 | 145,956 |
| Life insurance | 16,517 | 5,236 |
| Of which: | ||
| Medical services | 154,877 | 144,037 |
| Other services | 9,837 | 11,036 |
| Changes in exchange rates | 16,208 | 15,307 |
| Other | 11,437 | 6,878 |
| Total | 192,359 | 177,258 |
Revenues from medical services are almost always realised at the time of purchase.
| In € thousand | 1‒12/2019 1‒12/2018 adjusted |
|
|---|---|---|
| Property and casualty insurance | 38,219 | 44,581 |
| Health insurance | 147,494 | 144,476 |
| Life insurance | 5,307 | 20,626 |
| Of which: | ||
| Medical services | 142,959 | 139,838 |
| Other services | 19,925 | 19,959 |
| Exchange rate losses | 9,449 | 26,324 |
| Other | 18,686 | 23,562 |
| Total | 191,019 | 209,683 |
UNIQA's Group holding company is UNIQA Insurance Group AG. In addition to its duties as Group holding company, this company also performs the duties of a group reinsurer.
| Remuneration of the Management | 1‒12/2019 1‒12/2018 |
|---|---|
| Board | |
| In € thousand |
| Fixed remuneration1) | 1,574 | 1,612 |
|---|---|---|
| Variable remuneration2) | 1,141 | 1,295 |
| Multi-year share-based remuneration3) | 468 | 450 |
| Current remuneration | 3,183 | 3,356 |
1) The fixed salary components include remuneration in kind equivalent to 35 thousand (2018: 35 thousand).
2) The Short-Term Incentive (STI) comprises a variable remuneration component which is paid beginning with the 2017 financial year, partly in the following year and partly after three years (the "deferred component").
3) The Long-Term Incentive (LTI) corresponds to a share-based remuneration agreement first introduced in 2013, with the beneficiary entitled to receive a cash settlement following a four-year term.
For the 2017 financial year, expected payments of €423 thousand will be made for variable remuneration (STI) in subsequent years. For the 2018 financial year, payments of €437 thousand are expected to be made in the year 2022. For the 2019 financial year, payments of €1,585 thousand are expected to be made in the years 2020 and 2023.
As part of the multi-year long-term incentive plan (LTI), payments of €468 thousand were made to the members of the Management Board of UNIQA Insurance Group AG in 2019. For the subsequent years 2020 to 2023, a payment of €2,559 thousand is expected for the virtual shares allocated up to 31 December 2019.
Existing pension contributions for the members of the Management Board amounted to €359 thousand in the reporting year (2018: €359 thousand). The amount expended on pensions in the reporting year for former members of the Management Board and their survivors was €2,766 thousand (2018: €2,492 thousand).
The compensation to the members of the Supervisory Board for their work in the 2018 financial year was €739 thousand. Provisions of €745 thousand have been recognised for the remuneration to be paid for their work in 2019. The amount paid out in attendance fees and cash
expenditures in the financial year was €72 thousand (2018: €67 thousand).
In the 2013 financial year, UNIQA introduced a sharebased remuneration programme for members of the Management Board of UNIQA Insurance Group AG and for the members of the Management Board of UNIQA Österreich Versicherungen AG and UNIQA International AG. In accordance with this programme, entitled employees were conditionally awarded virtual UNIQA shares effective 1 January of the relevant financial year which give them the right to a cash payment after the end of the benefit period of four years in each case, provided certain key performance targets are met; maximum limits were also agreed.
The selected key performance targets are aimed at ensuring 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 property 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 period of six months before the end of the performance period.
C = degree of target achievement at the end of the performance 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 period 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 2019 a total of 1,066,194 virtual shares (2018: 1,103,954 shares) were relevant for the measurement. The fair value of share-based remuneration at the reporting date amounts to €7,169 thousand (2018: €6,690 thousand).
Companies in the UNIQA Group maintain various relationships 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 nonconsolidated subsidiaries, associates and joint ventures of UNIQA.
Related persons include the members of management holding key positions along with their close family members. This covers in particular the members of management 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.
| Transactions 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 2019 | |||||
| Premiums written (gross) | 897 | 52 | 1,232 | 49,371 | 51,551 |
| Income from investments | 8,583 | 526 | 22,785 | 5,313 | 37,207 |
| Expenses from investments | ‒929 | 0 | 0 | ‒2,078 | ‒3,007 |
| Other income | 164 | 7,487 | 1,953 | 555 | 10,159 |
| Other expenses | ‒3,265 | ‒8,841 | ‒2,674 | ‒38,896 | ‒53,675 |
| At 31 December 2019 | |||||
| Investments | 211,065 | 29,901 | 644,941 | 45,172 | 931,078 |
| Cash and cash equivalents | 301,093 | 0 | 0 | 235,372 | 536,465 |
| Receivables, including insurance receivables | 27 | 2,727 | 39 | 3,752 | 6,545 |
| Liabilities and other items classified as liabilities | 0 | 906 | 245 | 4,399 | 5,550 |
| 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 2018 | |||||
| Premiums written (gross) | 2,079 | 357 | 1,725 | 55,329 | 59,491 |
| Income from investments | 3,358 | 570 | 20,705 | 6,238 | 30,871 |
| Expenses from investments | ‒1,047 | 0 | 0 | ‒1,396 | ‒2,444 |
| Other income | 117 | 6,687 | 1,944 | 330 | 9,078 |
| Other expenses | ‒1 | ‒7,831 | ‒2,733 | ‒23,031 | ‒33,596 |
| At 31 December 2018 | |||||
| Investments | 225,221 | 13,393 | 653,388 | 46,367 | 938,369 |
| Cash and cash equivalents | 1,160,656 | 0 | 0 | 152,130 | 1,312,786 |
| Receivables, including insurance receivables | 13 | 2,129 | 67 | 4,685 | 6,894 |
| Financial liabilities | 772,196 | 0 | 0 | 0 | 772,196 |
| Liabilities and other items classified as liabilities | 273 | 751 | 196 | 5,183 | 6,403 |
| Premiums written (gross) | 529 | 505 |
|---|---|---|
| Salaries and short-term benefits 1) | ‒5,382 | ‒4,711 |
| Pension expenses | ‒1,420 | ‒940 |
| Compensation on termination of employment | ||
| contract | ‒158 | ‒151 |
| Expenditures for share-based payments | ‒1,255 | ‒1,112 |
| Other income | 213 | 228 |
1) This item includes fixed and variable Management Board remuneration paid in the financial year and remuneration of the Supervisory Board.
There are bilateral option agreements in place between UNIQA and the two remaining non-controlling shareholders in UNIQA Insurance Company, Private Joint Stock Company (Kiev, Ukraine) to acquire additional company shares in 2020 based on previously agreed purchase price formulas.
There is also the possibility of exercising a mutual option between UNIQA and the minority shareholders in the SIGAL Group for the purchase of additional company shares in the option window between 1 July 2020 and 30 June 2021 based on previously agreed purchase price formulas.
The auditor fees in the financial year were €2,439 thousand (2018: €1,530 thousand); of which €369 thousand (2018: €368 thousand) is attributable to the annual audit, €1,146 thousand (2018: €1,133 thousand) to other auditing services and €924 thousand (2018: €29 thousand) to other general services.
Subsidiaries are entities controlled by UNIQA. UNIQA is regarded as controlling an entity if:
The financial statements of subsidiaries are included in the consolidated financial statements from the date control begins until the date control ends.
If UNIQA loses control of a subsidiary, the subsidiary's assets and liabilities and all associated non-controlling interests and other equity components are derecognised. 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.
Associates are all the entities over which UNIQA has significant 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 consolidation is based on the proportionate equity (equity method).
Controlled 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:
1‒12/2019 1‒12/2018
| Consolidated companies | ||
|---|---|---|
| Austria | 33 | 34 |
| Other countries | 57 | 59 |
| Associates | ||
| Austria | 5 | 5 |
| Other countries | 1 | 1 |
| Consolidated investment funds | ||
| Austria | 6 | 6 |
| Other countries | 1 | 1 |
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 available for sale and stated under the item "Other investments".
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 period. Transaction costs are recognised as expenses immediately.
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.
Intragroup balances and transactions and all income and expenses from intragroup transactions are eliminated when consolidated financial statements are prepared.
In June 2019 UNIQA Linzer Straße 104 GmbH & Co KG (formerly WLIN104 Immobilien GmbH &Co KG), Vienna, and in April 2019 Zabłocie Park sp. z o.o. (Warsaw, Poland) were acquired.
UNIPARTNER s.r.o. (Bratislava, Slovakia) was merged with UNIQA InsService spol. s r.o. (Bratislava, Slovakia) as the absorbing company in January 2019. In October 2019 UNIQA Group Audit GmbH, Vienna, was merged with UNIQA Insurance Group AG as the absorbing company. In December 2019 UNIQA internationale Beteiligungs-Verwaltungs GmbH, Vienna, was merged with UNIQA Österreich International AG, Vienna, as the absorbing company.
In October 2019 LEGIWATON INVESTMENTS Limited Company (Limassol, Cyprus) was liquidated.
In January 2019 SH.A.F.P SIGAL LIFE UNIQA Group AUSTRIA sh.a. (Tirana, Albania) was deconsolidated.
| Company | Type of consolidation | Location | Equity interest at 31/12/2019 In per cent |
Equity interest at 31/12/2018 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 |
| SK Versicherung Aktiengesellschaft | Equity method | Vienna | 25.0 | 25.0 |
| Foreign insurance companies | ||||
| Raiffeisen Life Insurance Company LLC | Fully consolidated | Russia, Moscow | 75.0 | 75.0 |
| SH.A.F.P SIGAL LIFE UNIQA Group AUSTRIA sh.a. | Fully consolidated | Albania, Tirana | 0.0 | 44.3 |
| (Deconsolidation: 1/1/2019) | ||||
| 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 | 99.6 |
| 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 poisovòa a.s. | Fully consolidated | Slovakia, Bratislava | 99.9 | 99.9 |
| UNIQA pojišovna, a.s. | Fully consolidated | Czech Republic, Prague | 100.0 | 100.0 |
| UNIQA Re AG | Fully consolidated | Switzerland, Zurich | 100.0 | 100.0 |
| UNIQA Towarzystwo Ubezpieczeñ na ¯ycie S.A. | Fully consolidated | Poland, Lodz | 99.8 | 99.8 |
| UNIQA Towarzystwo Ubezpieczeñ S.A. | Fully consolidated | Poland, Lodz | 98.6 | 98.6 |
| 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. |
Fully consolidated | Vienna | 100.0 | 100.0 |
| Assistance Beteiligungs-GesmbH | Fully consolidated | Vienna | 64.0 | 64.0 |
| call us Assistance International GmbH | Fully consolidated | Vienna | 50.2 | 50.2 |
| UNIQA Capital Markets GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Group Audit GmbH (Merger: 1/10/2019) | Fully consolidated | Vienna | 0.0 | 100.0 |
| UNIQA International AG | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA internationale Beteiligungs-Verwaltungs GmbH (Merger: 18/12/2019) |
Fully consolidated | Vienna | 0.0 | 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 |
| Group foreign service companies | ||||
| DEKRA-Expert Mûszaki Szakértõi Kft. | Equity method | Hungary, Budapest | 50.0 | 50.0 |
| sTech d.o.o. | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0 |
| Company | Type of consolidation | Location | Equity interest at 31/12/2019 In per cent |
Equity interest at 31/12/2018 In per cent |
|---|---|---|---|---|
| UNIPARTNER s.r.o. (Merger: 1/1/2019) | Fully consolidated | Slovakia, Bratislava | 0.0 | 99.9 |
| UNIQA GlobalCare SA (formerly: UNIQA Assurances SA) |
Fully consolidated | Switzerland, Geneva | 100.0 | 100.0 |
| UNIQA Group Service Center Slovakia, spol. s r.o. (formerly: InsData spol. s r.o.) |
Fully consolidated | Slovakia, Nitra | 100.0 | 98.0 |
| UNIQA Ingatlanhasznosító Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0 |
| UNIQA InsService spol. s r.o. | Fully consolidated | Slovakia, Bratislava | 99.9 | 99.9 |
| UNIQA Raiffeisen Software Service Kft. | Fully consolidated | Hungary, Budapest | 60.0 | 60.0 |
| UNIQA Raiffeisen Software Service S.R.L. | Fully consolidated | Romania, Cluj-Napoca | 60.0 | 60.0 |
| UNIQA Számitástechnikai Szolgáltató Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0 |
| Vitosha Auto OOD | Fully consolidated | Bulgaria, Sofia | 99.9 | 99.8 |
| Financial and strategic domestic shareholdings | ||||
| Diakonissen & Wehrle Privatklinik GmbH | Fully consolidated | Gallneukirchen | 90.0 | 90.0 |
| Goldenes Kreuz Privatklinik BetriebsGmbH | Fully consolidated | Vienna | 100.0 | 75.0 |
| 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 Management Services GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| PremiQaMed Privatkliniken GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| STRABAG SE | Equity method | Villach | 14.3 | 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
| 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 |
| 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 | Fully consolidated | Vienna | 100.0 | 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 |
| LEGIWATON INVESTMENTS Limited Company (Deconsolidation: 1/10/2019) |
Fully consolidated | Cyprus, Limassol | 0.0 | 100.0 |
| Praterstraße Eins Hotelbetriebs GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| PremiQaMed Immobilien GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| 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 | Fully consolidated | Ukraine, Kiev | 100.0 | 100.0 |
| R-FMZ Immobilienholding GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Software Park Kraków Sp. z o.o. (Initial consolidation: 4/12/2018) |
Fully consolidated | Poland, Warsaw | 100.0 | 0.0 |
| UNIQA Immobilien-Projekterrichtungs GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Linzer Straße 104 GmbH & Co KG (Initial consolidation: 1/4/2019) |
Fully consolidated | Vienna | 100.0 | 0.0 |
| UNIQA Plaza Irodaház és Ingatlankezelõ 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 | Fully consolidated | Bulgaria, Sofia | 100.0 | 100.0 |
| UNIQA Real Estate BV | Fully consolidated | Netherlands, Hoofddorp | 100.0 | 100.0 |
| UNIQA Real Estate CZ, s.r.o. | Fully consolidated | Czech Republic, Prague | 100.0 | 100.0 |
| UNIQA Real Estate d.o.o. | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0 |
| UNIQA Real Estate GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Company | Type of consolidation | Location | Equity interest at 31/12/2019 In per cent |
Equity interest at 31/12/2018 In per cent |
|---|---|---|---|---|
| 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 (formerly: UNIQA Real Estate Dritte Beteiligungsverwaltung 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 (formerly: Raiffeisen-Fachmarktzentrum VIER 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. (Initial consolidation: 1/4/2019) |
Fully consolidated | Poland, Warsaw | 100.0 | 0.0 |
| Investment funds | ||||
| SSG Valluga Fund | Fully consolidated | Ireland, Dublin | 100.0 | 100.0 |
| UNIQA Corporate Bond | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Diversified Bond Fund | Fully consolidated | Vienna | 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 | 99.7 | 99.7 |
| UNIQA World Selection | Fully consolidated | Vienna | 100.0 | 100.0 |
With the exception of the following changes, the outlined accounting policies were consistently applied to all periods presented in these consolidated financial statements.
The Group applied the following amendments to standards with the initial application date of 1 January 2019. 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 16 | Leases | 1 January 2019 | Yes |
| IFRIC 23 | Uncertainty over Income Tax Treatments | 1 January 2019 | No |
| IAS 28 | Long-term Interests in Associates and Joint Ventures | 1 January 2019 | No |
| Miscellaneous | Annual Improvements Project 2015‒2017 | 1 January 2019 | Yes |
| IAS 19 | Plan Amendment, Curtailment or Settlement | 1 January 2019 | Yes |
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 31/12/2019 |
Likely to be relevant for UNIQA |
|---|---|---|---|---|
| New standards | ||||
| IFRS 9 | Financial Instruments | 1 January 20221) | Yes | Yes |
| IFRS 9 | Amendments to IFRS 9 ‒ Prepayment Features with Negative Compensation | 1 January 20221) | Yes | Yes |
| IFRS 17 | Insurance Contracts | 1 January 20221) | No | Yes |
| Amended standards | ||||
| Updated Framework | 1 January 2020 | Yes | Yes | |
| IFRS 3 | Definition of a Business ‒ Amendments to IFRS 3 | 1 January 2020 | No | Yes |
| IAS 1, IAS 8 | Definition of Material ‒ Amendments to IAS 1 and IAS 8 | 1 January 2020 | Yes | Yes |
| IFRS 9, IAS 39, IFRS 7 | Interest Rate Benchmark Reform | 1 January 2020 | Yes | Yes |
1) Preliminary decision of the IASB to defer the date of IFRS 17 coming into force and to extend the temporary exemption of IFRS 9 by one year
The following standards to be applied in future are expected to have a significant impact on reporting at UNIQA:
Since UNIQA's business is predominantly insurance-related and UNIQA has not yet adopted IFRS 9 in any other version, a deferral to apply IFRS 9 for the first time is permitted until 1 January 2022 (see Footnote 1 to the table above). The use of UNIQA's deferral approach requires the publication of additional information in the notes for the period up to the initial application of IFRS 9.
The future classification and measurement of financial assets under IFRS 9 is derived from the business model criterion and the SPPI criterion (solely payments of principal and interest). Depending on the principle-based
classification rules, IFRS 9 requires that subsequent measurement be carried out at amortised cost or at fair value.
UNIQA has already completed the technical development and implementation of an IT-system-based assessment of the SPPI criterion for the entire portfolio of relevant assets.
Fixed-income securities make up a large portion of the investment portfolio. Given that these securities tend to follow the principal/interest payment structure in most cases, they largely fulfil the criteria of the SPPI test. If an instrument meets the requirements of the SPPI test, there are two options: it can then be measured at amortised cost, or it can be measured at fair value through other comprehensive income. The portion of the UNIQA portfolio that does not fulfil the SPPI criteria will in future be measured at fair value through profit or loss.
| Requirements for SPPI fulfilled based on carry ing amounts in per cent1) |
Variable-income securities |
Fixed-income securities |
Loans and other investments |
Derivative financial instruments |
Investments under investment contracts |
|---|---|---|---|---|---|
| Financial assets at fair value | |||||
| through profit or loss | 0.0 | 0.2 | - | 0.0 | 0.0 |
| Available-for-sale financial assets | 0.0 | 92.8 | - | - | - |
| Loans and receivables | - | 0.6 | 99.9 | - | - |
| Total | 0.0 | 93.5 | 99.9 | 0.0 | 0.0 |
1) Classification according to IAS 39
| other investments In € thousand |
at fair value through other comprehensive income | |||||
|---|---|---|---|---|---|---|
| Carrying amount | Fair value Change in fair value over the period |
Carrying amount | Fair value Change in fair value | over the period | ||
| Government bonds | 10,103,593 | 9,982,758 | 552,212 | 7,209 | 7,170 | 7,170 |
| Corporate bonds | 3,393,165 | 3,379,349 | 499,434 | 211,925 | 213,272 | 34,090 |
| Covered bonds | 2,691,043 | 2,670,983 | ‒58,776 | 0 | 0 | 0 |
| Loans | 129,775 | 129,577 | 42,628 | 476 | 468 | 468 |
| Other | 0 | 0 | 0 | 900,530 | 899,983 | 95,105 |
| Total | 16,317,577 | 16,162,666 | 1,035,498 | 1,120,140 | 1,120,894 | 136,834 |
At amortised cost or
In addition, the logic for the business models in accordance with IFRS 9 was prepared for sub-areas, and they were also subject to a validation of their plausibility. As expected, on the basis of current indications, the "hold-andsell" business model accounts for a large part of UNIQA's business. This may result in changes due to the interactions with IFRS 17 that cannot yet be fully assessed at the time the financial statements are being prepared.
The new provisions of IFRS 9 concerning impairment must be applied in future to financial assets measured at amortised cost or at fair value through other comprehensive income. Under IFRS 9, the impairment calculation to be applied is based on a forward-looking model for the recognition of expected credit losses.
The logic of the model according to which future credit losses will be determined and its implementation in the IT systems is, at the time the financial statements are being prepared, in a development and analysis phase. On the basis of simplified assumptions, initial simulations were carried out with regard to the assessment of the default risk on financial assets within the scope of the new impairment provisions in accordance with IFRS 9. For the purpose of assessing the default risk, recourse was made to the definition in IFRS 9 of financial instruments with a low default risk at the reporting date. An external investment grade rating can therefore be used to assess whether a financial instrument has a low default risk.
At fair value through profit or loss
| Financial instruments by rating In € thousand |
Government bonds | Corporate bonds | Covered bonds | Loans | Other | Total |
|---|---|---|---|---|---|---|
| AAA | 1,890,830 | 101,117 | 1,778,171 | 0 | 0 | 3,770,117 |
| AA | 3,065,488 | 304,548 | 693,407 | 0 | 0 | 4,063,442 |
| A | 2,665,597 | 1,328,247 | 118,660 | 0 | 0 | 4,112,504 |
| BBB | 1,897,359 | 1,236,370 | 0 | 10,111 | 0 | 3,143,840 |
| BB | 319,527 | 59,715 | 22,544 | 0 | 0 | 401,785 |
| B | 250,331 | 8,703 | 0 | 0 | 0 | 259,033 |
| ≤ CCC | 2,836 | 1 | 0 | 0 | 0 | 2,837 |
| Not rated | 11,627 | 354,465 | 78,263 | 119,664 | 0 | 564,019 |
| Total | 10,103,593 | 3,393,165 | 2,691,043 | 129,775 | 0 | 16,317,577 |
The fair value of the instruments which do not feature a low default risk (non-investment grade) amounts to €664 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 a holistic
view, interactions with IFRS 17 must also be taken into account in this context. For the further course of the project, the focus is on the parallel phase in order to analyse the financial effects of the differences between IAS 39 and IFRS 9.
Asset allocation of
IFRS 17 establishes principles relating to recognition, measurement, presentation and disclosures of insurance contracts.
An essential element of the standard is a general measurement model, according to which all insurance contracts are to be valued on the basis of a prospective model. This involves combining current values (best estimate cash flows) plus a risk margin with a mode for distributing the future profit from the contracts (contractual service margin). According to the current state of analysis, the general measurement model will be applicable to approximately 15 per cent of the insurance business.
The contractual service margin is the equivalent of the expected future profit from contracts held in the respective portfolio and thus creates a high degree of transparency with regard to UNIQA's future profitability. This margin is a residual figure and its amount depends significantly on the best estimate of future cash flows, the discount rate and the method used to determine the risk margin.
For short-term insurance contracts, there is an option to use a simplified measurement model. According to current estimates, 45 per cent of the entire UNIQA portfolio, mainly from the property and casualty insurance area, can be measured and accounted for using this premium allocation approach.
There is a mandatory special model (variable fee approach) for participating contracts and contracts of unit-linked and index-linked life insurance. The variable fee approach is expected to be applied at UNIQA in health insurance and in life insurance. The current assessment here is that the portfolios of life and health insurance will predominantly be measured using the variable fee approach, which corresponds to around 40 per cent of the total portfolio.
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 objective behind the application of this option is to reduce volatility in the financial position and income statement.
Since IFRS 17 is expected to lead to significant changes in the accounting and measurement of UNIQA's core business, a separate project team consisting of actuaries, accountants, controllers and IT experts has been appointed, and it reports to a central programme management. This organisation was set up concurrently in all affected UNIQA subsidiaries in order to provide support in defining the requirements of the respective local characteristics and the product features for the entire UNIQA Group.
In order to adequately reflect the complexity of the standard, UNIQA decided to implement an insurance subledger. In the course of its implementation, characteristic sample business transactions, so-called use cases, were developed for all existing product groups in the entire UNIQA portfolio. These sample business transactions reflect the technical interpretation of IFRS 17 from UNIQA's point of view and illustrate the configuration plan for the insurance subledger. They are the core of the new software solution.
The sample business transactions were created in close cooperation with the actuaries, accountants and the technical implementation team and shared with the UNIQA Group subsidiaries in a two-stage feedback process. In the course of numerous workshops and feedback rounds, specific features of the product landscapes of the individual subsidiaries were updated and integrated in the pool of use cases. This meant that a large part of the professional and technical design for the core of the professional and technical reporting and process environment required by IFRS 17 was developed in the 2019 financial year.
In addition to the use cases, various IFRS 17 technical concepts in the actuarial and accounting areas were shared with the subsidiaries in 2019 and expanded to include their features and specifics. In the second half of 2019, UNIQA also began considering the various possible transition methods from IFRS 4 to IFRS 17 based on the available data granularity.
In the past financial year, the effects and interaction of IFRS 9 and IFRS 17 on the financial position and income statement of UNIQA Österreich Versicherungen AG were analysed. This analysis was based on several simplifications and assumptions. For example, in the health and life insurance segments, the future expected cash flows were based on the results of the market consistent embedded value (MCEV). Furthermore, a full
cost approach was applied in the analysis. The risk adjustment was derived in accordance with the requirements of the Solvency II risk margin.
Despite simplifications and estimates, important lessons have been learned:
In the course of the impact analysis, all three measurement models described above (general measurement model, variable fee approach and premium allocation approach) were applied specifically to the portfolio of UNIQA Österreich Versicherungen AG. Due to the limited scope of this impact analysis, no conclusions can be drawn about the impact of IFRS 17 on the Group as a whole.
As part of the conversion of the UNIQA accounting system to a new IT system, an error was identified in the allocation of the PremiQaMed Group's revenue and expenses to the items in the consolidated income statement. UNIQA was showing the profit that the PremiQaMed companies generated with UNIQA policyholders as a reduction in (gross) insurance benefits. In doing so, PremiQaMed internal leases were not fully consolidated, resulting in a total increase of €7,106 thousand in the allocated profits.
Furthermore, income and related expenses resulting from settlements with other service recipients were netted and reported under other income. This resulted in a reduction of €140,414 thousand in the item "Other income" and an understatement of €137,147 thousand in the item "Other expenses".
The real estate used by the PremiQaMed Group is shown in the consolidated statement of financial position under the item "Investment property". Accordingly, up until now the resulting expenses (depreciation and amortisation) were shown under "Expenses from investments". However, like all other expenses of the PremiQaMed Group, the depreciation and amortisation amounting to €3,839 thousand should be allocated to other non-technical expenses.
In thousand
1‒12/2018 published PremiQaMed Gruppe 1‒12/2018 adjusted
| Insurance benefits | |||
|---|---|---|---|
| Gross | ‒3,793,089 | ‒7,106 | ‒3,800,194 |
| Reinsurers' share | 166,447 | 0 | 166,447 |
| ‒3,626,642 | ‒7,106 ‒3,633,748 | ||
| Technical result | 140,180 | ‒7,106 | 133,074 |
| Net investment income | |||
| Income from investments | 917,575 | 0 | 917,575 |
| Expenses from investments | ‒445,574 | 3,839 | ‒441,735 |
| Financial assets accounted for | |||
| using the equity method | 109,189 | 0 | 109,189 |
| 581,191 | 3,839 | 585,029 | |
| Other income | 36,844 | 140,414 | 177,258 |
| Other expenses | ‒72,536 | ‒137,147 | ‒209,683 |
| Non-technical result | 209,913 | 7,106 | 217,018 |
| Profit/(loss) for the period | 235,148 | 0 | 235,148 |
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 economic environment in which the subsidiary operates (functional currency). The consolidated financial statements are prepared in euros which is UNIQA's reporting currency.
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 remeasurement, 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. Nonmonetary 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 comprehensive income to profit/(loss) for the period.
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. Income and expenses from foreign operations are translated at the monthly closing rates.
Currency translation differences 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. Currency translation differences from the share of the carrying amount in the consolidated income statement 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 | ||
|---|---|---|---|---|
| 31/12/2019 31/12/2018 | 1‒12/2019 | 1‒12/2018 | ||
| Czech koruna (CZK) | 25.4080 | 25.7240 | 25.6638 | 25.6703 |
| Hungarian forint (HUF) |
330.5300 | 320.9800 | 325.3846 | 319.2831 |
| Polish z³oty (PLN) | 4.2568 | 4.3014 | 4.2992 | 4.2620 |
| Romanian leu (RON) | 4.7830 | 4.6635 | 4.7434 | 4.6555 |
| Ukrainian hryvnia (UAH) |
26.6796 | 31.7750 | 28.9962 | 32,2048 |
| Russian rouble (RUB) | 69.9563 | 79.7153 | 72.7949 | 73.7887 |
| US dollar (USD) | 1.1234 | 1.1450 | 1.1214 | 1.1803 |
On 7 February 2020, UNIQA signed a purchase agreement with the AXA Group for the acquisition of shares in the AXA subsidiaries and branches in Poland, the Czech Republic and Slovakia. The purchase price is around €1 billion. The objects of purchase are life and non-life insurance companies, including their branches, as well as securities companies, pension funds and service companies of the AXA Group in the aforementioned countries. With the expansion in the growth region of Central and Eastern Europe, around five million customers are changing to UNIQA. The completion of the transaction is subject to all necessary regulatory approvals.
On 19 February 2020, the Management Board and Supervisory Board of UNIQA Insurance Group AG decided to merge UNIQA International AG as the assigning company with UNIQA Österreich Versicherungen AG as the receiving company in the course of 2020, subject to obtaining all regulatory approvals. UNIQA Insurance Group AG will continue to exist as a holding company. However, it will transfer other functions and its holdings in certain service companies – in particular, all internal Group services – to UNIQA Österreich Versicherungen AG. Furthermore, the plan is for UNIQA Insurance Group AG to transfer the reinsurance business within the Group and surrender its reinsurance licence. This agreed restructuring will not only streamline the Group and its management structure, it will also result in more efficient Group management and strengthen the customer-oriented organisation.
Starting in early 2020, the coronavirus (COVID-19) spread throughout Europe. Analyses have shown that for UNIQA, as an insurer in the potentially affected segments health insurance, life insurance and business interruption insurance, no significant effects are to be expected with regard to insurance benefits at this time. The overall economic effects of the spread of the coronavirus are still uncertain: in particular, developments in the capital markets are not yet foreseeable, and the consequences for UNIQA cannot be therefore conclusively assessed at present.
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.
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 ensures 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 subsidiaries.
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 longterm objectives are not put in danger.
At the centre of the risk decisions is UNIQA's economic capital model (ECM), by means of which risks are quantified and own economic capital is determined. The ECM is based on the standard model according to Solvency II and also reflects the company's own risk assessment. This is expressed in the quantification of the risks from the nonlife sectors such as market risks, in which the focus is placed on a stochastic cash flow model. UNIQA also uses this model for the regulatory risk calculations according to the Solvency II framework. Based on this model, UNIQA strives to maintain the risk capital cover (capital requirement ratio) within the range of 155 to 190 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 2019, including a detailed analysis of changes, can be found in the Group Economic Capital report.
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 provide a sufficient early warning system for the company to initiate prompt corrective action in the event of any deviation from targets. UNIQA counters risks that fall outside the defined risk appetite, such as reputational risk, with proactive measures, transparency and careful assessment.
Risk also means opportunity. UNIQA analyses trends and risks that influence the society and thus customers and the company itself. Employees throughout the company are involved in order to recognise and analyse trends at an early stage, produce suitable action plans and develop innovative approaches.
The focus of risk management with management structures 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
guidelines are approved by the CFO/CRO and the full Management 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 Guidelines at company level were approved by the Management Board of the UNIQA Group companies and are consistent with UNIQA's Risk Management Guidelines.
The detailed setup of the process and organisational structure of risk management is set out in UNIQA's Risk Management Guidelines. They reflect the principles embodied in the concept of "three lines of defence" and the clear differences between the individual lines of defence.
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.
The risk management function and the supervisory functions, such as controlling, must monitor business activities without encroaching on operational activities.
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).
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.
UNIQA's risk management process delivers periodic information about the risk profile and enables the top management to make the decisions for the long-term achievement of objectives.
The process concentrates on risks relevant to the company and is defined for the following classes of risk:
A Group-wide, standardised risk management process regularly identifies, evaluates and reports on risks to UNIQA and its Group companies within these classes of risk.
Risk identification is the starting point for the risk management 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 classes of risk, subsidiaries, processes and systems are included.
The risk categories of market risk, underwriting risk and default risk are evaluated at UNIQA by means of quantitative 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 represented (in accordance with the Company's Own Risk and Solvency Assessment (ORSA)). All other classes of risk are evaluated quantitatively or qualitatively with their own risk scenarios.
Based on external and internal developments, activities in 2019 focused on the following:
UNIQA took a crucial step towards a "shared services" model in March 2018 with the establishment of UNIQA 4WARD as a branch of UNIQA Insurance Group AG. The purpose of this branch located in Bratislava is to overcome resource shortages more effectively, to pool know-how and support the local companies, especially with regard to Group requirements. UNIQA 4WARD forms the basis for meeting future additional requirements in good time and based on the requisite quality. In 2019 the main focus was on the further expansion of UNIQA 4WARD's areas of activity. In addition to the activities in the areas of actuarial, risk and security management, the scope of UNIQA 4WARD's activities was expanded to include financial services in the second half of 2019.
The topic of security and the associated risks are of great importance to UNIQA. Therefore, a campaign launched by UNIQA aiming at deepening the understanding of the topic was started in 2019 under the title "UNIQA Protection". It covers the areas of security management, data protection, compliance and IDD. The campaign served primarily to raise awareness of the above-mentioned issues within the company. The focus was on security (of UNIQA, employees, customers and business partners), data protection and the correct implementation of compliance and insurance guidelines in the context of elearning, classroom training and a competition.
The major structural changes in the Group (UIP, TOM) and adjustments in the value chain associated with these resulted in the need to restructure the ICS within the Group and adapt it to the new conditions.
As part of the ICS project launched subsequently, an analysis of the current situation was carried out at an initial stage in order to identify the essential action areas. Building on this, the concept of the "New ICS" was then developed as part of a design phase. The key alteration involves the harmonisation of a Group-wide risk catalogue and a focus on the operational risks and controls relevant to the Group and the Group companies.
In 2019 the focus was on the roll-out of the new concept throughout the Group. The first processes were started in Austria, Poland, Hungary, Serbia and Russia. The challenges were due in particular to the fact that a large number of processes within the Group are affected by the ICS, and the rollout therefore required appropriate coordination effort on the one hand, along with assurances that the knowledge and expertise was passed onto the employees of the relevant companies on the other.
In recent years UNIQA also worked intensively on developing the partial internal model (which was approved in December 2017 for property and casualty insurance). Specifically, the model was expanded to include the market risk module. Following the successful completion of the model in 2018, the focus in 2019 was on integrating it into the regular risk assessment process. The model was submitted to the FMA in 2019 for approval, which was granted at the end of 2019. This means the official SCR calculation now includes the results of the partial internal model for the market risk module.
One of the topics that will continue to accompany UNIQA in 2020 is the ongoing review of the Solvency II Directive. EIOPA already published extensive consultation papers in 2019, containing a total of 19 topics, which are divided into two consultation waves. These waves dealt with both qualitative (e.g. Group supervision, macro-prudential issues, reporting and disclosure) and quantitative topics (e.g. risk-free rate, risk margin, SCR, own funds). The review of Solvency II does not yet have a binding character because the focus is still on consultation and proposals for amendments. These initial proposals will determine the direction in which the entire Solvency II framework will change. This topic therefore represents a great challenge for UNIQA. There will also be a project to go with it in 2020: a group of experts will analyse the effects of this review on the company. This will ensure timely mitigation of the risk of being unable to meet future regulatory requirements.
The current corporate strategy UNIQA 2.0 expires in 2020. At present UNIQA is working intensively on the design of the new corporate strategy under the working title "UNIQA 3.0". With this, the company aims to put a strong focus on the customer and try to become more efficient and deliver relevant innovations quickly. In conjunction with the revision of the corporate strategy, the current risk strategy will also have to be revised and adjusted accordingly in order to adequately reflect the adjusted circumstances.
As mentioned in the section on activities, work was done on designing the internal control system. As a further step, this will be realised in an IT solution. In order to support the implementation of the ICS from a systemic point of view, the introduction of a governance, risk and compliance (GRC) tool will be one of the focal points in 2020. The implementation challenges are mainly due to the fact that the requirements of four areas (compliance, security management, data protection and risk management) have to be coordinated and then mapped in the GRC tool.
UNIQA has started a project to revise the Group-wide tool for risk reporting ("heat map"). The goal of the project is to create an intuitive overview of UNIQA's current and overall risk profile and to ensure comparability with the risk strategy. One challenge in 2020 will be to map and test the developed concept in the IT tool risk2value and to implement it throughout the Group.
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.
UNIQA also takes the potential impact on the rating by recognised rating agencies into account in the capital management process. S&P currently applies a credit rating of "A–" to UNIQA Insurance Group AG. In the S&P capital model, however, UNIQA achieves significant 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 bonds issued in 2013 (€350.0 million Tier 2, first call date: 31 July 2023) and subordinated capital bond issued in 2015 (€500.0 million Tier 2, first call date: 27 July 2026) are rated "BBB" by S&P. The agency rates the outlook for all companies as "stable".
UNIQA's risk profile is very heavily influenced by life insurance and health insurance portfolios in 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 segment as well as in the life and health insurance segment. The insurance business predominantly relates to the property and casualty sectors in the CEE region.
This structure is important to UNIQA, because it creates a high level of diversification from the life and health insurance lines dominated by the Austrian companies.
The distinctive risk features of the regions are also reflected in the risk profiles determined by using the internal measurement approach.
The characteristics of the market and credit risks depend on the structure of the capital investment and allocation of this into the different categories of investment. The table below shows investments classified by asset category.
| Asset allocation In € thousand |
31/12/2019 31/12/2018 | ||
|---|---|---|---|
| Fixed-income securities | 16,473,243 | 15,461,745 | |
| Real estate assets | 1,137,444 | 1,104,146 | |
| Pension fund | 834,227 | 721,760 | |
| Equity investments and other stocks | 794,450 | 734,817 | |
| Shares and equity funds | 765,038 | 729,683 | |
| Time deposits | 384,762 | 395,016 | |
| Other investments | 235,631 | 189,899 | |
| Total | 20,624,797 19,337,067 |
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 guaranteed 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 |
31/12/2019 31/12/2018 | ||
|---|---|---|---|
| Long-term life insurance contracts with | |||
| guaranteed interest and profit participation | 12,251,003 | 12,612,019 | |
| Long-term unit-linked and index-linked life | |||
| insurance contracts | 4,680,403 | 4,751,183 | |
| Long-term health insurance contracts | 4,068,651 | 3,591,681 | |
| Short-term property and casualty insurance | |||
| contracts | 5,073,948 | 4,813,330 | |
| Total | 26,074,005 25,768,212 |
These values refer to the following items:
31/12/2019 31/12/2018
| In € thousand | ||
|---|---|---|
| Long-term life insurance contracts with | ||
| guaranteed interest and profit participation | 11,143,552 | 10,890,862 |
| Long-term unit-linked and index-linked life | ||
| insurance contracts | 4,646,152 | 4,721,904 |
| Long-term health insurance contracts | 3,359,589 | 3,191,419 |
| Short-term property and casualty insurance | ||
| contracts | 3,061,309 | 2,970,578 |
| Total | 22,210,602 21,774,763 |
These values refer to the following items:
Reinsurers' share of technical provisions for unit-linked and index-linked life insurance
The interest rate risk arises on all asset and liability items of the statement of financial position whose value fluctuates as a result of changes in risk-free yield curves or associated volatility. Given the high proportion of interestbearing securities in the investment, 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 fixedincome securities.
| Exposure by term In € thousand |
31/12/2019 31/12/2018 | |
|---|---|---|
| Up to 1 year | 673,476 | 770,848 |
| More than 1 year up to 3 years | 1,888,393 | 1,892,686 |
| More than 3 years up to 5 years | 2,468,311 | 2,557,814 |
| More than 5 years up to 7 years | 2,323,011 | 2,443,177 |
| More than 7 years up to 10 years | 3,067,014 | 2,800,238 |
| More than 10 years up to 15 years | 2,503,197 | 2,141,868 |
| More than 15 years | 3,549,841 | 2,855,114 |
| Total | 16,473,243 15,461,745 |
In comparison with this, the next table shows the insurance provision before reinsurance in health and life insurance and the gross provision for unsettled claims in nonlife insurance, broken down into annual brackets. In health and life insurance the breakdown takes place using expected cash flows from the ALM process.
In thousand
31/12/2019 31/12/2018
| Up to 1 year | 1,133,007 | 1,138,678 |
|---|---|---|
| More than 1 year up to 3 years | 1,085,507 | 1,359,578 |
| More than 3 years up to 5 years | 994,309 | 1,007,618 |
| More than 5 years up to 7 years | 1,127,128 | 1,074,549 |
| More than 7 years up to 10 years | 1,490,459 | 1,578,545 |
| More than 10 years up to 15 years | 2,433,869 | 2,455,407 |
| More than 15 years | 7,226,506 | 6,896,491 |
| Total | 15,490,785 15,510,867 |
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 €453.0 million, and that of liabilities €563.0 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.
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 interest rate beginning 1 January 2017 is 0.5 per cent per year. However, the portfolio also includes older contracts with different discount rates. In the relevant markets of the UNIQA Group, these rates amount to as much as 4.0 per cent per year. The following table provides an overview of the average discount rates by region and currency.
| Austria (AT) | 2.3 | ||
|---|---|---|---|
| Central Europe (CE) | 3.5 | 3.0 | |
| Eastern Europe (EE) | 3.5 | 3.6 | 3.3 |
| Southeastern Europe (SEE) | 2.2 | 1.9 | 0.8 |
| Russia (RU) | 2.7 | 2.7 | 4.0 |
As these discount rates are guaranteed by the insurance company, the financial risk lies in not being able to generate 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 company. 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 appropriate securities will be available at the time the premium is received. In the same way, 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 offer products to its key markets that are only 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 0.0 per cent.
The credit 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 securities 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 fixedincome securities that are neither overdue nor written down, based on their ratings.
| Exposure by rating In € thousand |
31/12/2019 31/12/2018 | ||
|---|---|---|---|
| AAA | 3,770,117 | 3,854,062 | |
| AA | 4,063,442 | 3,988,504 | |
| A | 4,135,223 | 3,640,541 | |
| BBB | 3,191,344 | 2,524,826 | |
| BB | 421,238 | 712,052 | |
| B | 271,218 | 240,932 |
Equity risk arises from movements in the value of equities and similar investments as a result of fluctuations in international stock markets, and therefore, stems in particular 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.
≤ CCC 2,837 6,090 Not rated 617,825 494,739 Total 16,473,243 15,461,745
Foreign currency risk is caused by fluctuations in exchange rates and associated volatility. Given the international nature of the insurance business, UNIQA invests in securities denominated in different currencies, thus following the principle of ensuring matching liabilities with assets in the same currency to cover liabilities at the coverage 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 currency.
In thousand
31/12/2019
| Assets | Provisions and liabilities |
|
|---|---|---|
| EUR | 24,914,175 | 22,255,561 |
| USD | 315,363 | 92,359 |
| CZK | 651,244 | 530,656 |
| HUF | 492,803 | 576,893 |
| PLN | 993,648 | 804,969 |
| RON | 379,563 | 203,371 |
| Other | 981,612 | 844,177 |
| Total | 28,728,409 | 25,307,986 |
In thousand
31/12/2018
| Assets | Provisions and liabilities |
|
|---|---|---|
| EUR | 24,776,455 | 22,526,995 |
| USD | 437,881 | 128,123 |
| CZK | 598,874 | 475,748 |
| HUF | 494,772 | 568,962 |
| PLN | 948,421 | 789,665 |
| RON | 289,381 | 213,284 |
| Other | 958,016 | 814,473 |
| Total | 28,503,801 | 25,517,251 |
UNIQA strives to keep the market concentration risk as low as possible. Throughout the investment period, the company continuously checks whether the investment volumes in securities of individual issuers exceed certain limits in relation to the total investment volume, defined according to the respective credit rating. If this is the case, a risk premium will be added to the portfolio items that are in excess of the limit.
Stress tests and sensitivity analyses are used in particular to measure and manage market and credit risk, in addition to figures from the established market and credit risk models (MCEV, SCR, etc.).
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. Depending 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 calculated 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.
31/12/2019 31/12/2018
| Interest rate risk In € thousand |
31/12/2019 | 31/12/2018 | |||
|---|---|---|---|---|---|
| + 100 basis points | ‒100 basis points | + 100 basis points | ‒100 basis points | ||
| Government bonds | ‒854,656 | 1,033,307 | ‒736,457 | 851,479 | |
| Corporate bonds (incl. covered) | ‒381,292 | 426,367 | ‒316,143 | 375,514 | |
| Other | ‒46,957 | 58,958 | ‒35,852 | 15,855 | |
| Total | ‒1,282,905 | 1,518,632 | ‒1,088,451 | 1,242,848 | |
| Of which income statement | ‒951 | 2,292 | 1,781 | ‒1,127 | |
| Of which equity | ‒1,281,954 | 1,516,340 | ‒1,090,232 | 1,243,975 |
| Credit spread risk In € thousand |
31/12/2019 | 31/12/2018 | Equity risk In € thousand |
31/12/2019 | 31/12/2018 |
|---|---|---|---|---|---|
| + 100 basis points | + 100 basis points | ‒30% | ‒30% | ||
| Income statement | ‒1,784 | ‒2,743 | Income statement | ‒126,609 | ‒305,289 |
| Equity | ‒1,275,863 | ‒1,111,082 | Equity | ‒107,515 | ‒69,897 |
| Total | ‒1,277,647 | ‒1,113,826 | Total | ‒234,124 | ‒375,186 |
In thousand
| 10% | ‒10% | 10% | ‒10% | |
|---|---|---|---|---|
| PLN | 51,970 | ‒51,970 | 48,526 | ‒48,526 |
| USD | 24,921 | ‒50,962 | 20,855 | ‒20,855 |
| CZK | 40,396 | ‒30,432 | 38,422 | ‒38,422 |
| RUB | 26,206 | ‒26,206 | 18,673 | ‒18,673 |
| HUF | 17,283 | ‒17,283 | 15,703 | ‒15,703 |
| Other | 53,026 | ‒57,559 | 56,569 | ‒54,950 |
| Total | 213,802 | ‒234,412 | 198,747 | ‒197,128 |
| Of which income statement | 203,222 | ‒223,833 | 186,416 | ‒184,798 |
| Of which equity | 10,580 | ‒10,580 | 12,330 | ‒12,330 |
In life 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 €6.62 million. A –100 bp reduction in this assumption results in a net effect of €–7.21 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 non-life insurance, the provision for unsettled insurance 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 sensibly 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 uncertainty 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 reserving 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 assessment, 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 insurance is a suitable instrument for quantifying the volatility involved in processing. Pursuant to analysis of these model results, it was determined that a deviation of 5 per
cent from the basic provision determined may represent a realistic scenario. Based on the current provision for unsettled claims of €2,608 million (excluding additional provisions such as provisions for claim settlement) in the Group on a gross basis, this would mean an increase in claims
incurred by €128 million.
Health insurance similar to life technique is now also affected by the period of low interest rates. Since 1 January 2018 only tariffs with the 1.0 per cent discount rate are being sold. That fact, together with the tariffs sold in 2017 at the discount rate of 1.75 per cent, further reduces the average discount rate. A reduction in the capital earnings by 100 bp (based on investment results 2019) would reduce the earnings before taxes by €35.6 million.
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 securities portfolio is listed in liquid markets and can be sold quickly and without significant markdowns if cash is required.
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 €565,916 thousand (2018: €601,415 thousand).
| Contractual maturities at 31 December 2019 In € thousand |
Liabilities from collateral received for securities lending |
Liabilities from loans |
Derivative financial instruments |
Lease liabilities | Total |
|---|---|---|---|---|---|
| 2020 | 0 | 900 | 436 | 8,888 | 10,224 |
| 2021 | 0 | 11,104 | 233 | 7,757 | 19,094 |
| 2022 | 0 | 0 | 0 | 7,334 | 7,334 |
| 2023 | 0 | 0 | 0 | 5,801 | 5,801 |
| 2024 | 0 | 0 | 0 | 4,452 | 4,452 |
| > 2025 | 0 | 0 | 1 | 33,514 | 33,515 |
| Contractual maturities at 31 December 2018 In € thousand |
Liabilities from collateral received for securities lending |
Liabilities from loans |
Derivative financial instruments |
Lease liabilities | Total |
|---|---|---|---|---|---|
| 2019 | 772,196 | 936 | 803 | 0 | 773,934 |
| 2020 | 0 | 900 | 2,459 | 0 | 3,359 |
| 2021 | 0 | 11,107 | 0 | 0 | 11,107 |
| 2022 | 0 | 0 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 | 0 | 0 |
| > 2024 | 0 | 0 | 10,084 | 0 | 10,084 |
| Contractual maturities at 31 December 2019 In € thousand |
Notional amount1) | Coupon payments | Total |
|---|---|---|---|
| 2020 | 54,063 | 54,063 | |
| 2021 | 54,063 | 54,063 | |
| 2022 | 54,063 | 54,063 | |
| 2023 | 350,000 | 54,063 | 404,063 |
| 2024 | 0 | 30,000 | 30,000 |
| > 2025 | 500,000 | 60,000 | 560,000 |
| Contractual maturities at 31 December 2018 In € thousand |
Notional amount1) | Coupon payments | Total |
|---|---|---|---|
| 2019 | 54,063 | 54,063 | |
| 2020 | 54,063 | 54,063 | |
| 2021 | 54,063 | 54,063 | |
| 2022 | 54,063 | 54,063 | |
| 2023 | 350,000 | 54,063 | 404,063 |
| > 2024 | 500,000 | 90,000 | 590,000 |
1) Contractual maturities based on the first possible termination date
UNIQA strives to keep concentration risks as low as possible. These could arise, for example, from the transfer of insurance 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 nonpayment) by an individual reinsurer. UNIQA controls such risks with an internal reinsurance company that is responsible for selecting external reinsurance parties, taking into account strict guidelines for avoiding material concentration risks.
The underwriting risks are divided into non-life, life and health insurance.
The underwriting risk in non-life 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 concerned. Such a loss may also be caused in insurance operations by exceptionally significant, but rare loss events, known as major claims or shock losses. Natural disasters represent a further threat from events that are infrequent 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 actuarial 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 operations. For example, Group policy specifies that new products may only be launched if they satisfy certain profitability criteria. Major claims and losses from natural disasters are appropriately managed by means of special risk management in the underwriting process (primarily 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 recognising such reserves in accordance with IFRSs. A quarterly monitoring system and an internal validation 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 class at both company and Group levels.
In life insurance, the underwriting risk is generally defined as the risk of loss or adverse developments affecting the value of insurance liabilities. It is divided into the following categories: mortality, longevity, disabilitymorbidity, 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 mortality 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 expenditure 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 cancellation, termination, renewal, capital selection and surrender rates of insurance policies. Overall, it represents the uncertainty regarding customer behaviour.
The expense risk refers to adverse effects due to fluctuations in the administrative costs of insurance and reinsurance contracts.
The revision risk results from fluctuations in the revision rates for annuities due to changes in the legal environment.
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 dramatic increase in mortality rates: in this case, death benefits 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 participations or a corresponding premium adjustment as well as additional reinsurance policies, which are carried out in compliance with legal and contractual framework
conditions. These measures are crucial for the underlying risk models and contain detailed information and regulations, particularly with regard to profit participation. In practice, profitable new business supports the risk-bearing capacity of the existing portfolio, whereby careful risk selection (e.g. health checks) and cautiously chosen calculation principles for premiums are essential cornerstones when designing products. By including premium adjustment clauses, the potential to reduce risk can be improved, especially in the risk and occupational disability portfolio.
The health 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 according to the "similar to life technique".
The risk categories of the underwriting risk in health insurance by type of life insurance are based on the subdivisions of life insurance already described above, with minor deviations.
Analogous to life insurance, the main techniques for risk mitigation are the adjustment of future profit participations or a corresponding premium adjustment which is carried out in compliance with legal and contractual framework conditions. These measures are crucial for the underlying risk models and contain detailed information and regulations, particularly with regard to profit participation. In practice, classic risk-mitigation techniques are also relevant here.
For health insurance they include:
In addition to these classic risk mitigation techniques, an ongoing process for managing portfolios has been
established. This process is carried out annually by determining and evaluating the need for rate adjustments. The effectiveness of the risk mitigation techniques described for the health business is assessed by comparing invoiced and actual benefits as well as by calculating contribution margin calculations.
Operational risk includes losses that are caused by insufficient 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 interpretation 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 responsible for compliance throughout all Group companies.
A distinctive feature of operational risk is that it can surface in all processes and departments. This is why operational 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 financial service provider – forms part of the critical infrastructure 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 special responsibility of management and must be dealt with professionally, efficiently and as quickly as possible.
UNIQA has implemented a business continuity management system covering the issues of crisis prevention, crisis management and business recovery (including business continuity plans). The UNIQA BCM model is based on international rules and standards and is developed on a continuous basis.
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 increasing interdependencies between them, which may lead to a growing concentration of risk. In addition, a changing business environment – the further development of regulatory rules, the increased expectations of stakeholders and the shift in risk perception – must be taken into account.
The reputational risk describes the risk of loss that arises due to possible damage to the company's reputation, a deterioration in prestige, or a negative overall impression due to negative perception by customers, business partners, shareholders or supervisory agencies.
Reputational risks that occur in the course of core processes such as claim processing or advising and service quality are identified, evaluated and managed as operational risks in the Group companies.
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 prevent the risk of infection.
The strategic risk refers to the risk that results from management decisions or insufficient implementation of management 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.
Sustainability risks are not currently classified as a separate risk category but are allocated among the existing categories. Up until now, UNIQA has identified potential sustainability risks with the following topics from the materiality analysis: clear evaluation of damage and rapid assistance, process for handling data and new technologies, customer information and financing, complaints management, avoidance of critical investment, employee satisfaction as well as ethics and compliance. UNIQA's risk identification process is subject to continuous development and will also ascertain in the future whether an identified risk is relevant from a sustainability point of view. According to the definition used by UNIQA this is the case if a risk exists in relation to ecological and/or social aspects of the sustainability topics.
The Group Management Board determines, directly and indirectly, the strategic contents of 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 optimisation 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 characteristics 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 responsible for and guarantees the implementation of reinsurance policies 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 commitment. Extensive data are used to assess risk capital requirements for the units in question and their reinsurance programmes are structured in a targeted manner.
For the property and casualty insurer, promises of performance for protection against losses resulting from natural hazards frequently represent the greatest stress on risk capital by far due to the volatile nature of such claims and the conceivable amount of catastrophic damages. 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 substantially 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 reporting period. Only in the life insurance line was a portion of the necessary cessions given directly to external reinsurance partners. The Group assumes reasonable deductibles in the retrocession programmes based on riskand value-based approaches.
These consolidated financial statements were prepared by the Management Board as at the date of signing and approved for publication.
Vienna, 20 March 2020
Andreas Brandstetter Chairman of the Management Board
Erik Leyers Member of the Management Board
Kurt Svoboda Member of the Management Board
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 position, financial performance and cash flows of the Group, and that the Group management report describes the relevant risks and uncertainties which the Group faces.
Vienna, 20 March 2020
Andreas Brandstetter Chairman of the Management Board
Erik Leyers Member of the Management Board
Kurt Svoboda Member of the Management Board
We have audited the enclosed consolidated financial statements of UNIQA Insurance Group AG, Vienna, and its subsidiaries (the Group), consisting of the consolidated statement of financial position as at 31 December 2019, the consolidated income statement from 1 January until 31 December 2019, the consolidated statement of comprehensive income, the consolidated statement of cash flows and the consolidated statement of changes in equity for the financial year ending on this reporting date as well as the notes to the consolidated financial statements.
In our opinion, the attached consolidated financial statements comply with the legal requirements and provide a true and fair view of the financial position at 31 December 2019 and of the Group's earnings position and cash flows for the financial year ending on this reporting date, in accordance with the International Financial Reporting Standards (IFRSs) as applicable in the EU and the additional requirements of Section 245a of the Austrian Commercial Code and the supplementary provisions of Section 138(8) of the Austrian Insurance Supervision Act.
We have conducted an audit of these financial statements in accordance with Regulation (EU) No. 537/2014 (hereafter the EU Regulation) and following the Austrian principles of proper auditing of financial statements. These principles require the application of the international audit standards (International Standards on Auditing, ISAs). Our responsibilities according to these regulations and standards are outlined in detail in the section of our audit opinion entitled "Responsibilities of the auditor in auditing the consolidated financial statements". Our work has been completed independently of the Group and is in line with Austrian company law and professional regulations, and our other professional duties have been discharged in line with these regulations. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our audit assessment.
Particularly relevant data related to the audit are data that, in our judgement, had a significant impact on our audit of the consolidated financial statements for the reporting year. These areas were taken into account in connection with our audit of the
consolidated financial statements as a whole and in forming our audit opinion; we will not issue a separate opinion on these areas.
Our discussion of these particularly important data is structured as follows:
Relevant facts
The principles used to evaluate insurance provision and the completion of the LAT require numerous assumptions, estimates and discretionary decisions. Minor alterations to these assumptions or the methodologies used could produce a significant change in the measurement.
Based on the relevant facts as described, in our audit we paid particular attention to the measurement of the insurance provision and deferred acquisition costs.
evaluated processes and tested key controls,
involved actuarial specialists from PwC and compared the models and assumptions used with industry-specific knowledge and our professional experience with recognised actuarial practices,
The recognition and measurement of other intangible assets related to the IT systems require discretionary decisions and assumptions with regard to said recognition and measurement, as well as continuous monitoring, particularly where the total costs deviate from planned costs. Furthermore, company-internal contributions require an exact distinction to be made between capitalisable and non-capitalisable cost factors.
Based on the relevant facts as described, in our audit we paid particular attention to the recognition and measurement of other intangible assets in our audit.
accounting regulations of IAS 38, based on our knowledge of the industry and our experience,
The accounting and measurement methods used are consistent with IFRSs. We believe the assumptions and measurement parameters to be transparent and justifiable.
The company's management is responsible for the preparation of the consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU and the additional requirements under Section 245a of the Austrian Commercial Code and the supplemental regulations under Section 138(8) of the Austrian Insurance Supervision Act that accurately reflects the Group's assets, financial position and profitability. The legal representatives are additionally responsible for the internal controls which they consider to be required in order to enable the preparation of consolidated financial statements that are free from material intentional or unintentional false representations.
The legal representatives are responsible as part of the preparation of consolidated financial statements to assess the Group's ability to continue its business activities, to provide pertinent data related to the continuation of business activities and to apply relevant accounting standards to the continuation of business activities unless the legal representatives intend to liquidate the Group or discontinue business activities or have no other realistic alternative than to do so.
The Audit Committee is responsible for monitoring the Group's accounting processes.
Our goal is to secure an adequate level of certainty that the consolidated financial statements, as a whole, are basically free of erroneous representations, whether intentional or unintentional, and to provide a report containing our audit opinion. This adequate level of certainty provides a high degree of certainty, though not a full guarantee, that an audit conducted fully in line with the EU Regulation and with the Austrian principles of proper auditing of financial statements, which stipulate the application of ISA rules, will in each case reveal any essentially false representation that may exist. False representations may be an instance of fraud or may be a result of errors and will in principal be identified as such in cases in which there is a reasonable expectation that a single instance or group of these could influence decisions taken by readers on the basis of information provided by the consolidated financial statements.
As part of any audit of financial statements that has been executed in compliance with the EU Regulation and the Austrian principles of proper auditing of financial statements, which require the application of the ISAs, we exercise due
discretion and maintain a critical stance throughout the entire process of the audit.
We communicate with the Audit Committee regarding, among other things, the intended scope and scheduling of the audit and significant findings of the audit, including any significant shortcomings in the internal system of monitoring that we were able to identify over the course of our audit.
We provide the Audit Committee with a statement to the effect that we maintained the requirements for professional conduct and independence and provided said committee with information regarding all circumstances and facts which could reasonably be seen to have a possible effect on our independence and – when relevant – related precautionary measures.
We certify that the data that we shared with the Audit Committee were the most pertinent data in auditing the reporting year's consolidated financial statements and therefore represented particularly significant audit data. We describe this data in our audit opinion unless there are laws or other legal regulations that preclude sharing this information or we have determined, in a very small number of cases, that any the benefit of sharing certain information in the audit opinion in the interest of serving the public interest is outweighed by the probable negative effects of publication.
Pursuant to statutory provisions, the Group Management Report is to be audited as to whether it is consistent with the consolidated financial statements and whether it was prepared in line with applicable legal requirements.
The legal representatives are responsible for preparing the Group Management Report in line with Austrian company law and insurance supervisory regulations.
We prepared our audit in line with professional principles related to conducting audits of management reports.
In our opinion, the Group Management Report has been prepared in line with applicable legal requirements, contains appropriate disclosures in accordance with Section 243a of the Austrian Commercial Code, and is consistent with the consolidated financial statements.
Based on the data collected during the audit of the consolidated financial statements and familiarity with the Group and its circumstances, we have identified no erroneous information in the Group Management Report.
The legal representatives are responsible for all other information. Other information includes all information in the annual report, excluding the consolidated financial statements, the Group Management Report and the audit opinion. The annual report was only provided to us after the date of the audit opinion.
Our audit opinion on the consolidated financial statements does not cover this other information, and we can offer no assurances of any kind with respect to it.
In conjunction with our audit of the consolidated financial statements, it is our responsibility to review this other information as soon as it is made available and determine whether it contradicts or compromises the validity of any of the findings of the audit in an essential way.
We were selected as the statutory auditor by the Annual General Meeting on 28 May 2018. We were appointed by the Supervisory Board on 13 November 2018. We have acted as statutory auditors continuously since 31 December 2013.
We hereby declare that the audit opinion in the section "Report on the consolidated financial statements" is in accordance with the additional report to the Audit Committee pursuant to Article 11 of the EU Regulation.
We hereby declare that we have not provided any prohibited non-audit services (Article 5(1) of the EU Regulation) and that we maintained our independence from the company audited in carrying out our audit of the consolidated financial statements.
The public accountant responsible for this project is Werner Stockreiter.
Vienna, 20 March 2020
PwC Wirtschaftsprüfung GmbH
signed:
Werner Stockreiter Chartered Accountant
Publication and duplication of the consolidated financial statements together with the audit opinion in a form differing from the version audited by us is not permitted. This audit opinion refers exclusively to the German version of the complete consolidated financial statements and the Group Management Report. For differing versions, the regulations of Section 281(2) Austrian Commercial Code apply.
UNIQA Insurance Group AG Commercial registry no.: 92933t
be.public Corporate & Financial Communications GmbH / www.bepublic.at Rosebud, Inc. / www.rosebud-inc.com Translation and linguistic consulting ASI GmbH / www.asint.at Photography and image editing Kurt Keinrath Paper Cover: Munken Polar, 240 g/m2 Interior: Munken Polar, 100 g/m2 Printed by Gerin Druck GmbH Editorial deadline 15 April 2020
UNIQA Insurance Group AG Investor Relations Untere Donaustrasse 21, 1029 Vienna, Austria Phone: (+43) 01 21175-3773 E-mail: [email protected]
UNIQA's Group Report is published in German and English and can be downloaded as a PDF file from the Investor Relations area on our Group website. The interactive online version is also available at reports.uniqagroup.com.
This is a translation of the German Group Report of UNIQA Group. In case of any divergences, the German original is legally binding.
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 information given.
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