Uniqa Insurance Group AG

Quarterly Report • May 16, 2019

FIRST QUARTER REPORT 2019 / UNIQA GROUP

At the forefront.

Consolidated Key Figures

In € million	1–3/2019	1–3/2018	Change
Premiums written	1,466.4	1,460.4	+0.4%
Savings portions from unit-linked and index-linked life insurance
(before reinsurance)	63.6	75.0	–15.1%
Premiums written, including savings portions
from unit-linked and index-linked life insurance	1,530.0	1,535.4	–0.4%
of which property and casualty insurance	880.8	868.8	+ 1.4%
of which health insurance	288.8	280.1	+ 3.1%
of which life insurance	360.4	386.5	–6.8%
of which income from regular premiums	335.1	357.4	–6.3%
of which single premiums	25.3	29.1	–13.0%
Premiums written, including savings portions
from unit-linked and index-linked life insurance	1,530.0	1,535.4	–0.4%
of which UNIQA Austria	1,108.6	1,097.9	+ 1.0%
of which UNIQA International	409.7	428.0	–4.3%
of which reinsurance	358.1	360.2	–0.6%
of which consolidation	–346.4	–350.7	–1.2%
Premiums earned (net)	1,231.1	1,210.6	+1.7%
of which property and casualty insurance	666.1	642.4	+ 3.7%
of which health insurance	273.5	265.7	+ 2.9%
of which life insurance	291.6	302.5	–3.6%
Savings portions from unit-linked and index-linked life insurance (after reinsurance)	63.6	72.0	–11.6%
Premiums earned, including savings portions
from unit-linked and index-linked life insurance	1,294.8	1,282.6	+0.9%
Insurance benefits1)	–927.0	–933.8	–0.7%
of which property and casualty insurance	–431.0	–425.8	+ 1.2%
of which health insurance	–230.0	–226.4	+ 1.6%
of which life insurance2)	–266.1	–281.7	–5.5%
Operating expenses3)	–346.6	–319.9	+8.4%
of which property and casualty insurance	–210.6	–200.2	+ 5.2%
of which health insurance	–50.6	–47.6	+ 6.3%
of which life insurance	–85.5	–72.0	+ 18.7%
Net investment income	100.6	139.6	–28.0%
Earnings before taxes	42.3	71.1	–40.5%
Profit/(loss) for the period	33.3	50.7	–34.2%
Consolidated profit/(loss)	32.2	53.6	–39.9%
Investments	20,102.7	19,963.2	+0.7%
Shareholders' equity	3,172.5	3,170.9	+ 0.1%
Equity, including non-controlling interests	3,188.4	3,445.6	–7.5%
Insured sum in life insurance	82,442.4	79,724.4	+3.4%

1) Including expenditure for deferred profit participation and premium refunds

2) Including expenditure for (deferred) profit participation

3) Less reinsurance commissions and share of profit from reinsurance ceded

Foreword by the CEO

Dear shareholders,

With earnings before taxes amounting to €42 million for the first quarter, we started 2019 in line with our expectations.

Premiums written (including savings portions) fell slightly, by 0.4 per cent. The main reasons for this were the decline in international business with industrial customers and the continued strategic reduction of our life insurance business against single premium policies.

The technical result continues to develop positively with an increase of 35 per cent to €34 million compared with the previous year. Once again, the targeted reduction of low-margin business is paying off. In line with this, we were also able to improve the combined ratio in property and casualty insurance from 97.4 per cent to 96.3 per cent compared with the first quarter of 2018 – despite the increased cost burden from our long-term investment programme and increased damage due to the unusually large quantities of snow in Austria.

Net investment income, on the other hand, fell by 28 per cent to €101 million compared with the previous year. However, a direct comparison is not meaningful here because the figure for the first quarter of 2018 includes a capital gain of €47 million from the sale of UNIQA's holding in Casinos Austria Aktiengesellschaft.

The impact of the low interest rate environment on our industry as a whole is not likely to ease in the short term. The European Central Bank abandoned its plan to tighten its loose monetary policy again in the first quarter of 2019, so we can expect very low yields in the medium term as well. As a consequence, in the last full year of our UNIQA 2.0 strategy programme we will continue to focus on the optimisation of our existing business model, supplemented by targeted investments in innovations relevant to the future.

The positive result of the first three months of 2019 is a solid basis for the year as a whole. We can therefore confirm our outlook: overall, UNIQA expects an improvement in earnings before taxes for the 2019 financial year – adjusted for the one-off effect from the sale of Casinos Austria Aktiengesellschaft – and plans to increase the dividend payment per share again as part of UNIQA's unchanged progressive dividend policy.

Sincerely,

Andreas Brandstetter CEO UNIQA Group

Vienna, May 2019

Group Management Report

• PREMIUMS WRITTEN (INCLUDING SAVINGS PORTIONS) AT €1,530.0 MILLION IN THE FIRST QUARTER OF 2019
• COMBINED RATIO IMPROVED TO 96.3 PER CENT
• DECREASE IN NET INVESTMENT INCOME BY 28.0 PER CENT TO €100.6 MILLION
• EARNINGS BEFORE TAXES DECREASED BY 40.5 PER CENT TO €42.3 MILLION
• EARNINGS OUTLOOK FOR 2019 CONFIRMED

Economic environment

The global economy continues to expand, albeit at a slower pace. While global economic growth in 2018 was still around 3.7 per cent, an increase of between 3.3 and 3.5 per cent is expected for 2019. The economic trend therefore implies neither a dramatic slowdown nor a global recession, and both the industrialised countries and the emerging markets remain overall on an expansion path. However, the current economic cycle is characterised by many unpredictable factors. These include the uncertain course of the UK's withdrawal from the European Union (EU) and the trade dispute between the United States and China and the EU. Brexit will not occur as an isolated event, but rather as a process with an open outcome, and the future relations between Great Britain and the EU remain uncertain. Furthermore, the threat of further protectionist measures by the USA hangs like a sword of Damocles over the economy, clouding the mood among companies and investors.

Since the second half of 2018, the eurozone economy has been slowing down. However, supported by the positive trends on the European labour markets, domestic demand has so far remained relatively robust and gross domestic product (GDP) growth is moving to a more sustainable level following a solid increase of 2.5 per cent in 2018. One reason for this is that export dynamics are losing momentum. In addition, there are increasing signs that production in some euro countries is reaching its capacity limits. The unemployment rate throughout the eurozone has fallen to a level at which further declines would hardly be possible due to the economic tailwind alone. For the current year, economists generally expect GDP growth of 1.1 per cent in the eurozone as a whole.

While the normalisation of monetary policy is coming to an end, a prolonged low interest rate environment is continuing overall. The US Federal Reserve (Fed) has completed its cycle of interest rate hikes with a range for the key interest rate of 2.25–2.50 per cent and does not signal any further interest rate changes for 2019. The Fed's balance sheet reduction is expected to end in September with a balance sheet total of 3,500 billion US dollars. The European Central Bank (ECB) is maintaining a loose monetary policy as a result of the slowdown or the uncertain economic cycle and dampened inflation expectations. The main refinancing rate remains at zero and changes are not planned before 2020 at the earliest. In March 2019, the ECB also announced further long-term refinancing transactions at very favourable conditions for European banks.

With GDP growth of 2.7 per cent in 2018, the Austrian economy demonstrated a robust economic trend, but could not entirely avoid the slowdown. For 2019, Austria is expected to remain in the fast lane with a growth expectation of 1.4 per cent compared with the eurozone as a whole.

Central and Eastern Europe (CEE) as a whole is very resilient to an economic downturn, but not quite immune to it in the medium term. In 2018, economic growth in core CEE countries of the UNIQA Group totalled 3.0 per cent. When excluding the Russian economy, average GDP growth in 2018 was even as high as 4.3 per cent. This solid economic expansion should continue in 2019. As a result of the high level of economic integration, however, it can be assumed that in the medium term the region will not remain entirely unaffected by the economic slowdown of its most important trading partners in the eurozone.

The Central European countries (Poland, Slovakia, the Czech Republic and Hungary) recorded very high average GDP growth of 4.6 per cent in 2018. Despite their exposure to the eurozone economy, the current strong domestic demand continues to ensure a very positive business environment. Unemployment rates in the four Central European economies reached record lows of 3.8 per cent on average in 2018.

In Russia, macroeconomic conditions remain stable due to conservative economic policy and despite external risks (US sanctions), and economic growth close to production potential (around 1.5 per cent) is still expected. In Ukraine, the maintenance of the IMF Stand-By Arrangement after the presidential and parliamentary elections should continue to ensure financial stability and support the economic recovery.

Southeastern Europe (SEE) had a solid economic development in 2018 with GDP growth of 3.4 per cent on average, which continued at the beginning of 2019. While tourism is booming in Croatia, the Serbian economy is benefiting from brisk construction activity. In Montenegro, too, the construction sector has contributed significantly to economic growth in recent years. The name dispute with Greece, which for years overshadowed the economic development of North Macedonia with uncertainty, was settled.

As in the previous year, it can also be assumed for 2019 that all countries in which UNIQA is active will remain on a macroeconomic expansion course, and that CEE will continue its economic convergence – the process of catching up with per capita income in Western Europe.

UNIQA Group

Changes in premiums

The UNIQA Group's premiums written including savings portions from unit-linked and index-linked life insurance fell slightly by 0.4 per cent to €1,530.0 million (1–3/2018: €1,535.4 million) in the first quarter of 2019. While recurring premiums remained nearly stable at €1,504.7 million (1–3/2018: €1,506.3 million), single premiums in life insurance decreased in line with the Group strategy by 13.0 per cent to €25.3 million (1–3/2018: €29.1 million).

Premiums earned, including net savings portions of the premiums from unit-linked and index-linked life insurance totalling €63.6 million (1–3/2018: €72.0 million), rose by 0.9 per cent to €1,294.8 million in the first quarter of 2019 (1–3/2018: €1,282.6 million). The volume of premiums earned (net, in accordance with IFRSs) rose by 1.7 per cent to €1,231.1 million (1–3/2018: €1,210.6 million).

Premiums written in property and casualty insurance increased by 1.4 per cent to €880.8 million in the first three months of 2019 (1–3/2018: €868.8 million). The volume of premiums earned (net, in accordance with IFRSs) rose by 3.7 per cent to €666.1 million (1–3/2018: €642.4 million).

In health insurance, premiums written in the reporting period rose by 3.1 per cent to €288.8 million (1–3/2018: €280.1 million). The volume of premiums earned (net, in accordance with IFRSs) rose by 2.9 per cent to €273.5 million (1–3/2018: €265.7 million).

In life insurance, premiums written including savings portions from the unit-linked and index-linked life insurance decreased overall by 6.8 per cent to €360.4 million in the first three months of 2019 (1–3/2018: €386.5 million). The main driver of this trend was the decrease in demand caused by the persistently low interest rate environment. The single premium business declined in the first quarter of 2019 by 13.0 per cent to €25.3 million (1–3/2018: €29.1 million). Recurring premiums fell by 6.3 per cent to €335.1 million (1–3/2018: €357.4 million). As a result of this development, annual premium equivalent (APE) in life insurance declined by 6.3 per cent to €337.6 million (1–3/2018: €360.3 million). The APE calculation accounts for 10 per cent of single premiums because the average term of single premiums in Europe is ten years. As a result, annual fluctuations are smoothed out in this calculation. The risk premium portion accounted for in the premiums in unit-linked and index-linked life insurance amounted to €12.1 million (1–3/2018: €13.0 million) in the first quarter of 2019. The insured capital in life insurance totalled €82,442.4 million at 31 March 2019 (31 March 2018: €79,724.4 million). Including net savings portions of the premiums from unit-linked and index-linked life insurance, premiums earned in life insurance fell by 5.2 per cent to €355.2 million in the first three months of 2019 (1–3/2018: €374.5 million). Premiums earned (net, in accordance with IFRSs) decreased by 3.6 per cent to €291.6 million (1–3/2018: €302.5 million).

Insurance benefits

The total amount of net insurance benefits for the UNIQA Group decreased by 0.7 per cent to €927.0 million in the first quarter of 2019 (1–3/2018: €933.8 million). Insurance benefits before consideration of reinsurance also fell by 0.7 per cent to €943.4 million (1–3/2018: €950.2 million).

Net insurance benefits in property and casualty insurance increased moderately compared with the rise in premiums earned by 1.2 per cent to €431.0 million (1–3/2018: €425.8 million). The loss ratio after reinsurance therefore decreased in the first three months of 2019 to 64.7 per cent (1–3/2018: 66.3 per cent). The combined ratio after reinsurance also declined to 96.3 per cent (1–3/2018: 97.4 per cent). Before consideration of reinsurance, the combined ratio amounted to 94.0 per cent (1–3/2018: 94.6 per cent).

In health insurance, net insurance benefits (including the change in insurance provision) grew by 1.6 per cent to €230.0 million in the first quarter of 2019 (1–3/2018: €226.4 million).

In contrast, insurance benefits fell 5.5 per cent in life insurance, in line with the changes in premiums, to €266.1 million (1–3/2018: €281.7 million).

Operating expenses

Total operating expenses, less reinsurance commission received, rose in the first three months of 2019 by 8.4 per cent to €346.6 million (1–3/2018: €319.9 million). Expenses for the acquisition of insurance rose by 8.3 per cent to €226.3 million (1–3/2018: €208.9 million) due to an increase in amortisation of acquisition costs in life insurance. The reinsurance commission received amounting to €5.5 million (1–3/2018: €6.2 million) has already been deducted from the acquisition costs. Other operating expenses (administrative expenses) rose by 8.5 per cent to €120.4 million in the first quarter of 2019 (1–3/2018: €110.9 million) due to higher investments and additional resource and personnel requirements for strategic projects. This line item includes costs under the innovation and investment programme amounting to around €14 million (1–3/2018: approx. €6 million).

The total cost ratio, i.e. the ratio of total operating expenses to the premiums earned including net savings portions of the premiums from unit-linked and index-linked life insurance, increased to 26.8 per cent, taking into account the reinsurance commission received (1–3/2018: €24.9 per cent).

In property and casualty insurance, operating expenses less reinsurance commissions received rose by 5.2 per cent to €210.6 million in the first quarter of 2019 (1–3/2018: €200.2 million). The cost ratio after reinsurance increased slightly in this line of business to 31.6 per cent (1–3/2018: 31.2 per cent).

In health insurance, operating expenses less reinsurance commission received increased by 6.3 per cent to €50.6 million (1–3/2018: €47.6 million). The cost ratio after reinsurance amounted to 18.5 per cent (1–3/2018: €17.9 per cent).

In life insurance, operating expenses less reinsurance commission received increased by 18.7 per cent to €85.5 million (1–3/2018: €72.0 million) on account of the increase in amortisation of deferred acquisition costs. The cost ratio (after reinsurance) increased to 24.1 per cent (1–3/2018: 19.2 per cent).

Investments

The UNIQA Group's investment portfolio (including investment property, financial assets accounted for using the equity method and other investments) rose to €20,102.7 million at 31 March 2019 compared with the last reporting date (31 December 2018: €19,337.1 million).

Net investment income fell by 28.0 per cent to €100.6 million (1–3/2018: €139.6 million) in the first quarter of 2019, because the capital gain of €47.4 million from the sale of the indirect holding in Casinos Austria Aktiengesellschaft was included in the first quarter of 2018. Realised and unrealised gains and losses of around €8 million had a positive impact. Currency effects of around €6 million had a negative impact on the net investment income. The equity method accounting of the 14.3 per cent holding in the construction group STRABAG SE resulted in a negative contribution to earnings in the amount of €–18.7 million in the first quarter of 2019 (1–3/2018: €–18.2 million).

Earnings before taxes

The technical result of the UNIQA Group rose by 34.8 per cent to €34.0 million (1–3/2018: €25.2 million) in the first quarter of 2019, mainly due to the improved combined ratio in property and casualty insurance. However, operating profit decreased by 33.7 per cent to €56.1 million due to lower net investment income (1–3/2018: €84.5 million). The UNIQA Group's earnings before taxes dropped accordingly by 40.5 per cent to €42.3 million (1–3/2018: €71.1 million).

Profit/(loss) for the first three months of 2019 amounted to €33.3 million (1–3/2018: €50.7 million). Consolidated profit/(loss) (i.e. proportion of the net profit for the period attributable to the shareholders of UNIQA Insurance Group AG) decreased by 39.9 per cent to €32.2 million (1–3/2018: €53.6 million). Earnings per share amounted to €0.10 (1–3/2018: €0.17).

Annualised 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) increased to 6.1 per cent in the first quarter of 2019 (1 – 3/2018: 9.7 per cent). The annualised return on equity (after tax and non-controlling interests) for the reporting period was 4.2 per cent (1–3/2018: 6.8 per cent).

Group equity and total assets

Equity attributable to the shareholders of UNIQA Insurance Group AG increased to €3,172.5 million at 31 March 2019 (31 December 2018: €2,972.1 million). Noncontrolling interests came to €15.9 million (31 December 2018: €14.4 million). The Group's total assets increased to €29,533.8 million at 31 March 2019 (31 December 2018: €28,503.8 million).

Cash flow

Net cash flow from operating activities in the first quarter of 2019 amounted to €256.2 million (1 – 3/2018: €53.9 million). Cash flow from the UNIQA Group's investing activities, in line with investment of the revenues received in the reporting period, amounted to €–361.9 million (1–3/2018: €281.7 million); the net cash flow from financing activities amounted to €215.8 million (1–3/2018: €–0.2 million). Overall, cash and cash equivalents increased by €568.8 million to €1,554.7 million (1–3/2018: €985.9 million).

Employees

The average number of employees (full-time equivalents or FTEs) of the UNIQA Group rose slightly in the first three months of 2019 to 12,851 (1–3/2018: 12,810). These included 4,192 (1–3/2018: 4,351) field sales employees. The number of administrative employees increased to 8,659 (1–3/2018: 8,459).

Operating segments

UNIQA Austria

Premiums written including savings portions from unitlinked and index-linked life insurance at UNIQA Austria increased in the first quarter of 2019 by 1.0 per cent to €1,108.6 million (1–3/2018: €1,097.9 million). Recurring premiums rose by 1.2 per cent to €1,101.4 million (1–3/2018: €1,088.0 million). Single premiums fell by 27.7 per cent to €7.1 million (1–3/2018: €9.8 million).

Premiums earned including net savings portions of the premiums from unit-linked and index-linked life insurance rose by 0.5 per cent to €768.0 million (1–3/2018: €764.4 million). The volume of premiums earned (net, in accordance with IFRSs) increased by 0.3 per cent to €717.6 million (1–3/2018: €715.3 million).

Premiums written in property and casualty insurance rose by 3.8 per cent to €574.9 million (1–3/2018: €553.9 million) due to the continuing growth in vehicle and property insurance, and in health insurance UNIQA Austria also recorded premium growth of 1.8 per cent to €265.1 million (1–3/2018: €260.4 million).

Premiums written in life insurance including savings portions from unit-linked and index-linked life insurance decreased in the UNIQA Austria segment by 5.3 per cent to €268.6 million (1–3/2018: €283.6 million). Recurring premiums fell by 4.5 per cent to €261.5 million (1–3/2018: €273.8 million). Single premiums fell by 27.7 per cent to €7.1 million (1–3/2018: €9.8 million). Premium volume in the area of unit-linked and index-linked life insurance at UNIQA Austria fell by 5.6 per cent to €56.9 million in the first quarter of 2019 (1–3/2018: €60.2 million).

Net insurance benefits fell by 0.8 per cent to €608.2 million in the UNIQA Austria segment in the first three months of 2019 (1–3/2018: €613.2 million). In property and casualty insurance, the combined ratio after reinsurance increased to 95.9 per cent (1–3/2018: 92.1 per cent) due to a slight deterioration in the development of basic losses and snow pressure damage.

Operating expenses less reinsurance commission received rose by 18.0 per cent to €161.5 million in the first quarter of 2019 (1–3/2018: €136.8 million) due to higher investments and additional resource and personnel requirements for strategic projects. The cost ratio after reinsurance therefore rose to 21.0 per cent (1–3/2018: 17.9 per cent).

Net investment income rose by 2.6 per cent to €102.9 million in the first three months of 2019 (1–3/2018: €100.3 million). Earnings before taxes fell in the UNIQA Austria segment in the first quarter of 2019 by 26.2 per cent to €38.2 million (1–3/2018: €51.7 million).

UNIQA International

In the UNIQA International segment, premiums written including savings portions from unit-linked and indexlinked life insurance fell by 4.3 per cent to €409.7 million in the first three months of 2019 (1–3/2018: €428.0 million). Single premiums fell by 5.4 per cent to €18.2 million (1–3/2018: €19.2 million). Recurring premiums declined by 4.2 per cent to €391.5 million (1–3/2018: €408.8 million). This meant that the international companies contributed a total of 26.8 per cent to total Group premiums overall in the first quarter of 2019 (1–3/2018: 27.9 per cent).

Premiums earned including net savings portions of the premiums from unit-linked and index-linked life insurance remained stable at €252.7 million (1–3/2018: €252.9 million). On the other hand, the volume of premiums earned (net, in accordance with IFRSs) increased slightly by 4.1 per cent to €239.4 million (1–3/2018: €230.0 million).

In Central Europe (CE) – i.e. Poland, Slovakia, the Czech Republic and Hungary – premiums written including savings portions from unit-linked and index-linked life insurance fell by 3.5 per cent to €246.5 million in the first three months of 2019 (1–3/2018: €255.4 million). In the region of Eastern Europe (EE) – Romania and Ukraine – an increase of 13.1 per cent to €50.0 million was recorded (1–3/2018: €44.2 million). In Southeastern Europe (SEE), comprising Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia and Serbia, premiums written including savings portions from unit-linked and index-linked life insurance increased by 5.7 per cent to €83.6 million (1–3/2018: €79.0 million). In Russia (RU), the volume of premiums written fell by 19.6 per cent to €19.3 million (1–3/2018: €24.0 million). In Western Europe (WE) – Liechtenstein and Switzerland – they decreased by 59.8 per cent to €10.2 million (1–3/2018: €25.4 million).

In the UNIQA International segment, premiums written in property and casualty insurance dropped by 4.2 per cent to €294.5 million (1 – 3/2018: €307.4 million), mainly due to the portfolio restructuring of the international business with industrial customers in Liechtenstein. This meant the contribution of Group companies outside Austria to overall premiums in property and casualty insurance amounted to 33.4 per cent (1–3/2018: 35.4 per cent).

Premiums written rose in health insurance in the first quarter of 2019 by 20.1 per cent to €23.7 million (1–3/2018: €19.7 million). As such, the segment was responsible for 8.2 per cent (1–3/2018: 7.0 per cent) of health insurance premiums in the UNIQA Group.

In the international life insurance business, premiums written including savings portions of unit-linked and index-linked life insurance declined by 9.3 per cent to €91.5 million in the first three months of 2019 (1–3/2018: €100.9 million), driven primarily by the decline in premiums in Russia. Single premiums fell to €18.2 million (1–3/2018: €19.2 million). Recurring premiums fell by 10.3 per cent to €73.3 million (1–3/2018: €81.7 million). UNIQA International's share of overall life insurance premiums in the UNIQA Group was 25.4 per cent (1–3/2018: 26.1 per cent). Premiums from unit-linked and index-linked life insurance decreased sharply in the international segment by 31.9 per cent to €18.9 million (1–3/2018: €27.7 million).

Net insurance benefits in the UNIQA International segment increased by 2.5 per cent to €139.8 million (1–3/2018: €136.5 million) in the first quarter of 2019. In property and casualty insurance, the combined ratio after reinsurance improved to 94.0 per cent (1–3/2018: 96.2 per cent). In the CE region, benefits rose by 2.0 per cent to €70.1 million (1–3/2018: €68.7 million), and in the EE region they increased by 26.0 per cent to €18.4 million (1–3/2018: €14.6 million). In SEE, they rose by 5.1 per cent to €33.5 million (1–3/2018: €31.8 million). In Russia, benefits amounted to €14.7 million in the first quarter of 2019 (1–3/2018: €18.1 million). In Western Europe, the volume of benefits reached €3.2 million (1–3/2018: €3.3 million).

In the UNIQA International segment, operating expenses less reinsurance commissions received rose by 4.6 per cent to €92.2 million (1–3/2018: €88.2 million). The cost ratio (after reinsurance) increased due to the decline in premiums to 36.5 per cent (1–3/2018: 34.9 per cent). In CE, costs rose by 2.8 per cent to €44.4 million (1–3/2018: €45.7 million), and in EE they rose by 6.8 per cent to €15.2 million (1–3/2018: €14.2 million). In SEE, they increased by 7.5 per cent to €23.1 million (1–3/2018: €21.5 million). Costs in Russia showed an increase to €3.6 million in the first three months of 2019 (1–3/2018: €3.1 million). In Western Europe, they rose to €0.9 million (1–3/2018: €0.1 million). Costs in administration (UNIQA International AG) increased to €5.0 million (1–3/2018: €3.6 million).

Net investment income decreased in the UNIQA International segment by 35.2 per cent to €10.8 million (1–3/2018: €16.6 million). Earnings before taxes increased by 29.3 per cent to €18.9 million (1–3/2018: €14.6 million).

Reinsurance

Premiums written in reinsurance amounted to €358.1 million (1–3/2018: €360.2 million) in the first quarter of 2019. Premiums written in property and casualty insurance rose by 0.2 per cent to €349.6 million (1–3/2018: €348.9 million). In health insurance, they amounted to €0.4 million (1–3/2018: €0.7 million) and in life insurance to €8.1 million (1–3/2018: €10.6 million).

Net insurance benefits fell in the reinsurance segment by 2.4 per cent to €181.6 million (1–3/2018: €186.1 million). Operating expenses, less reinsurance commission received, fell by 0.5 per cent to €78.2 million (1–3/2018: €78.6 million). Net investment income amounted to €7.2 million (1–3/2018: €6.3 million). Earnings before taxes improved to €13.4 million (1–3/2018: €3.6 million).

Group functions

In the Group functions segment, operating expenses less reinsurance commission received fell in the first quarter of 2019 by 16.1 per cent to €11.9 million (1–3/2018: €14.2 million). Net investment income declined to €30.0 million (1–3/2018: €72.2 million). The main reason for the decrease was the fact that the capital gain from the sale of the indirect holding in Casinos Austria Aktiengesellschaft was recognised in the first quarter of 2018. As a result, earnings before taxes decreased to €8.1 million (1–3/2018: €45.5 million).

Capital market

UNIQA shares – key figures In €	1–3/2019	1–3/2018	Change
UNIQA share price as at 31 March	8.88	9.44	–5.9%
High	9.09	9.94	–
Low	7.84	9.00	–
Market capitalisation as at 31 March (in € million)	2,725.9	2,897.8	–5.9%
Earnings per share	0.10	0.17	–39.9%
Average number of shares in circulation	306,965,261	306,965,261	–

In the first quarter of 2019, the stock markets recorded a significant price increase, due mainly to the expectation of persistently low interest rate levels. The global stock market index MSCI World rose by 11.9 per cent in the first three months of 2019.

The US stock markets recorded the best first quarter in many years: the Dow Jones Industrial (DJI) was up by 11.2 per cent, the S&P 500 Index rose by 13.1 per cent and the technology-oriented NASDAQ Composite Index was up by 16.5 per cent. The decisive factor for the price gains was the turnaround in the Fed's interest rate policy, which abandoned its strategy of gradually raising interest rates. The easing of the US trade dispute with China also had a positive effect on the market.

The Euro Stoxx 50 rose by 14.1 per cent between January and March 2019, almost fully offsetting the correction of the previous quarter. The European markets also benefited from the reorientation of interest policy in the US and the slackening of the trade dispute, while uncertainty about the expiry and effects of Brexit had a negative impact.

With an increase of 9.6 per cent, the MSCI Emerging Markets Index performed slightly below average, which is surprising at first glance given the high dependence of the emerging markets on global interest rates and the resulting positive influence of the changed US interest rate policy. However, the correction of these markets in the last months of the previous year was significantly lower than the average for the stock markets, so the counter-reaction in the first months of the current year was also weaker. This effect also explains why the rise in the Eastern European index CECE in the first quarter of 2019 was relatively weak at 4.1 per cent.

In the first quarter of 2019, the Vienna Stock Exchange followed the positive market trend: the ATX, the leading index, was up by 10.5 per cent, which is remarkable given the focused interest of investors in the strongly performing US markets and other major stock exchanges.

In the first quarter of 2019, the UNIQA share price developed positively and stood at €8.88 on 31 March 2019. After this, the price continued to rise and the UNIQA share price reached €9.32 on 6 May 2019. Compared with the 2018 year-end price (€7.86), this equates to a gain of 18.6 per cent.

UNIQA shares – information

Ticker symbol	UQA
Reuters	UNIQ.VI
Bloomberg	UQA AV
ISIN	AT0000821103
Market segment	Vienna Stock Exchange – prime market
Trade segment	Official market
Indices	ATX, ATX FIN, MSCI Europe Small Cap
Number of shares	309,000,000

Significant events after the reporting date

No significant events subject to mandatory reporting occurred after the reporting date.

Outlook

UNIQA expects moderate growth in the total premium volume of approximately 1 per cent for 2019. Premium growth of around 2 per cent is expected in property and casualty insurance in 2019. In line with the long-term trend, UNIQA also anticipates growth of around 3 per cent in health insurance, driven primarily by business in Austria. In life insurance, on the other hand, a further decline can be expected due to the continuing low interest rate environment and the subdued demand for long-term provision products.

In 2016, UNIQA began the largest investment programme in the company's history and is currently investing around €500 million in redesigning the business model and developing the required staff competencies and necessary IT systems. This significant investment in the future will continue to impact earnings before taxes in the 2019 financial year.

Financial calendar

Annual General Meeting
Ex-dividend date
Dividend record date
Dividend payment date
Half-Year Financial Report 2019
First to Third Quarter Report 2019

UNIQA expects a decline in net investment income for 2019 compared with 2018, mainly due to the lack of the one-off effect from the sale of Casinos Austria Aktiengesellschaft.

UNIQA aims to improve the combined ratio (after reinsurance) further in 2019 compared with 2018. Increased profitability in the core technical business of property and casualty insurance should provide the basis for this.

Overall, UNIQA expects an improvement in earnings before taxes for the 2019 financial year – adjusted for the one-off effect from the sale of Casinos Austria Aktiengesellschaft. UNIQA also intends to continue increasing its annual distribution per share over the next few years as part of a progressive dividend policy.

Consolidated Interim Financial Statements

GENERAL DISCLOSURES

Accounting principles

The consolidated interim financial statements as at 31 March 2019 were prepared in accordance with the International Financial Reporting Standards (IFRSs) of the International Accounting Standards Board (IASB) recognised by the European Union (EU) as well as the interpretations of the IFRS Interpretations Committee. The additional requirements of Section 245a(1) of the Austrian Commercial Code and Section 138(8) of the Austrian Insurance Supervision Act were met. These interim consolidated financial statements do not constitute interim financial reporting in accordance with IAS 34.

The accounting, measurement and consolidation principles correspond to those applied in the consolidated financial statements as at 31 December 2018. The functional currency for UNIQA Insurance Group AG is the euro.

In preparing the consolidated interim financial statements, estimates and planning have been used to a greater extent than for annual reporting.

The consolidated interim financial statements were prepared in millions of euros (rounded based on commercial rounding methods). Rounding differences may occur when totalling rounded amounts and percentages.

Adoption of new and revised standards

Annual improvements to the IFRS cycle 2015–2017 IAS 12 Income taxes

The amendment relates to income tax consequences of dividend payments. The amendment was adopted by the EU on 14 March 2019 and is effective from 1 January 2019. This amendment is not relevant for UNIQA.

IAS 23 Borrowing costs

The amendment that specifies the determination of the interest rate for the capitalisation of borrowing costs is not relevant for UNIQA.

IFRS 3 Business combinations, IFRS 11 Joint agreements

On the one hand, the remeasurement of interests already held at fair value when control over a business operation was obtained was newly regulated. On the other hand, previously held interests shall not be remeasured when joint control is obtained. The new regulations are not relevant for UNIQA.

IAS 19 Employee benefits

The amendment to IAS 19 relating to plan amendment, curtailment and settlement was adopted by the EU on 13 March 2019 and is effective from 1 January 2019. The amendment to IAS 19 is not relevant for UNIQA.

IAS 28 Investment in associates

Long-term interests that are not accounted for using the equity method must be treated in accordance with IFRS 9. The adjustment applies to reporting periods beginning on or after 1 January 2019. For UNIQA, the date of first-time application of IFRS 9 will be postponed until IFRS 17 comes into force.

Consolidated Statement of Financial Position

Assets	Notes	31/3/2019	31/12/2018
In € million
Property, plant and equipment		371.0	311.1
Intangible assets		1,637.9	1,618.9
Investments
Investment property		1,097.5	1,104.1
Financial assets accounted for using the equity method		581.3	599.1
Other investments	1	18,423.9	17,633.8
Unit-linked and index-linked life insurance investments		4,769.5	4,751.2
Reinsurers' share of technical provisions		395.9	413.4
Reinsurers' share of technical provisions for unit-linked and index-linked life insurance		0.1	0.1
Receivables, including insurance receivables		618.5	540.7
Income tax receivables		48.2	52.3
Deferred tax assets		6.2	5.8
Cash and cash equivalents		1,554.7	1,444.4
Assets in disposal groups held for sale		29.0	29.0
Total assets		29,533.8	28,503.8

Equity and liabilities In € million	Notes	31/3/2019	31/12/2018
Total equity
Portion attributable to shareholders of UNIQA Insurance Group AG
Subscribed capital and capital reserves		1,789.9	1,789.9
Treasury shares		–16.6	–16.6
Accumulated results		1,399.2	1,198.8
		3,172.5	2,972.1
Non-controlling interests		15.9	14.4
		3,188.4	2,986.6
Liabilities
Subordinated liabilities	1	883.3	869.8
Technical provisions		17,815.3	17,336.4
Technical provisions for unit-linked and index-linked life insurance		4,739.8	4,721.9
Financial liabilities	1	1,004.7	798.5
Other provisions		642.6	663.0
Liabilities and other items classified as liabilities		901.2	807.2
Income tax liabilities		47.3	64.4
Deferred tax liabilities		310.1	255.0
Liabilities in disposal groups held for sale		1.1	1.1
		26,345.3	25,517.3
Total equity and liabilities		29,533.8	28,503.8

Consolidated Income Statement

In € million	Notes	1–3/2019	1–3/2018 adjusted
Premiums earned (net)	3	1,231.1	1,210.6
Technical interest income		82.4	79.7
Other insurance income		5.2	4.5
Insurance benefits	4	–927.0	–933.8
Operating expenses	5	–346.6	–319.9
Other technical expenses		–11.0	–15.9
Technical result		34.0	25.2
Net investment income	2	100.6	139.6
Income from investments		175.2	215.9
Expenses from investments		–55.7	–107.7
Financial assets accounted for using the equity method		–18.9	31.5
Other income		20.8	11.2
Reclassification of technical interest income		–82.4	–79.7
Other expenses		–16.9	–11.9
Non-technical result		22.0	59.3
Operating profit/(loss)		56.1	84.5
Amortisation of goodwill and impairment losses		–0.6	–0.6
Finance cost		–13.1	–12.7
Earnings before taxes		42.3	71.1
Income taxes		–9.0	–20.5
Profit/(loss) for the period		33.3	50.7
of which attributable to shareholders of UNIQA Insurance Group AG		32.2	53.6
of which attributable to non-controlling interests		1.1	–2.9
Earnings per share (in €)1)		0.10	0.17
Average number of shares in circulation		306,965,261	306,965,261

1) Diluted earnings per share equate to undiluted earnings per share. This is calculated on the basis of the consolidated profit/(loss).

Consolidated Statement of Comprehensive Income

In € million	1–3/2019	1–3/2018
		adjusted
Profit/(loss) for the period	33.3	50.7
Items not reclassified to profit or loss in subsequent periods
Revaluations of defined benefit obligations
Gains (losses) recognised in equity	–18.0	5.1
Gains (losses) recognised in equity – deferred tax	4.5	–1.2
	–13.5	4.0
Items reclassified to profit or loss in subsequent periods
Currency translation
Gains (losses) recognised in equity	1.2	–0.6
Valuation of financial instruments available for sale
Gains (losses) recognised in equity	454.4	–76.0
Gains (losses) recognised in equity – deferred tax	–56.8	11.8
Gains (losses) recognised in equity – deferred profit participation	–221.0	39.5
Recognised in the consolidated income statement	7.4	–29.5
Recognised in the consolidated income statement – deferred tax	3.7	5.8
Recognised in the consolidated income statement – deferred profit participation	–7.3	5.1
Other income from financial assets accounted for using the equity method
Gains (losses) recognised in equity	1.1	–0.5
Recognised in the consolidated income statement	0.0	0.1
	182.6	–44.3
Other comprehensive income	169.1	–40.3
Total comprehensive income	202.5	10.4
of which attributable to shareholders of UNIQA Insurance Group AG	199.9	13.2
of which attributable to non-controlling interests	2.6	–2.8

Consolidated Statement of Cash Flows

In € million	1–3/2019	1–3/2018 adjusted
Profit/(loss) for the period	33.3	50.7
Impairment losses, amortisation of goodwill and other intangible assets,
and depreciation of property, plant and equipment	13.5	8.3
Impairment losses/reversal of impairment losses on other investments	–44.6	25.8
Gain/loss on the disposal of investments	–25.0	–49.7
Change in deferred acquisition costs	–10.9	–46.6
Change in securities at fair value through profit or loss	20.2	–124.8
Change in direct insurance receivables	–74.5	–78.0
Change in other receivables	8.4	18.8
Change in direct insurance liabilities	–62.3	–17.8
Change in other liabilities	144.7	66.3
Change in technical provisions	285.9	22.5
Change in defined benefit obligations	–18.9	2.0
Change in deferred tax assets and deferred tax liabilities	6.1	17.8
Change in other statement of financial position items	–19.6	158.6
Net cash flow from operating activities	256.2	53.9
Proceeds from disposal of intangible assets and property, plant and equipment	2.3	2.2
Payments for acquisition of intangible assets and property, plant and equipment	–82.7	–18.6
Proceeds from disposal of consolidated companies	0.0	56.9
Payments for acquisition of consolidated companies	–0.1	0.0
Proceeds from disposal and maturity of other investments	1,236.9	1,395.5
Payments for acquisition of other investments	–1,500.0	–1,305.8
Change in unit-linked and index-linked life insurance investments	–18.3	151.5
Net cash flow from investing activities	–361.9	281.7
Transactions between owners	–0.1	0.0
Proceeds from other financing activities	216.0	0.0
Payments from other financing activities	–0.2	–0.2
Net cash flow from financing activities	215.8	–0.2
Change in cash and cash equivalents	110.1	335.4
Change in cash and cash equivalents due to movements in exchange rates	0.2	0.2
Cash and cash equivalents at beginning of year	1,444.4	650.3
Cash and cash equivalents at end of period	1,554.7	985.9
Income taxes paid (Net cash flow from operating activities)	–15.0	–6.9
Interest paid (Net cash flow from operating activities)	–0.8	–0.7
Interest received (Net cash flow from operating activities)	92.2	91.6
Dividends received (Net cash flow from operating activities)	7.6	7.9

Consolidated Statement of Changes in Equity

				Accumulated
In € million	Subscribed capital and capital reserves	Treasury shares	Valuation of financial instruments available for sale	Revaluations of defined benefit obligations
At 31 December 2017	1,789.9	–16.6	420.6	–251.2
IAS 8 restatement			0.0	0.0
At 1 January 2018	1,789.9	–16.6	420.6	–251.2
Change in basis of consolidation		0.0	0.0
Total comprehensive income			–43.5	4.0
Profit/(loss) for the period
Other comprehensive income			–43.5	4.0
At 31 March 2018	1,789.9	–16.6	377.1	–247.2
At 1 January 2019	1,789.9	–16.6	169.9	–264.9
Change in basis of consolidation
Total comprehensive income			179.3	–13.5
Profit/(loss) for the period
Other comprehensive income			179.3	–13.5
At 31 March 2019	1,789.9	–16.6	349.2	–278.4

Total equity	Non-controlling interests	Portion attributable to shareholders of UNIQA Insurance Group AG	Other accumulated results	Differences from currency translation
3,249.4	91.4	3,158.0	1,388.5	–173.2
0.0	0.0	0.0	0.0
3,249.4	91.4	3,158.0	1,388.5	–173.2
185.8	186.0	–0.3	–0.3
10.4	–2.8	13.2	53.3	–0.5
50.7	–2.9	53.6	53.6
–40.3	0.1	–40.4	–0.3	–0.5
3,445.6	274.7	3,170.9	1,441.5	–173.8
2,986.6	14.4	2,972.1	1,473.5	–179.7
–0.6	–1.1	0.5	0.5
202.5	2.6	199.9	33.3	0.8
33.3	1.1	32.2	32.2
169.1	1.4	167.7	1.1	0.8
3,188.4	15.9	3,172.5	1,507.3	–179.0

results

Segment Reporting

OPERATING SEGMENTS – CONSOLIDATED INCOME STATEMENT

		UNIQA Austria		UNIQA International
In € million 1–3/2019		1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted
Premiums written (gross), including savings portions from unit-linked and index-linked life insurance	1,108.6	1,097.9	409.7	428.0
Premiums earned (net), including savings portions from unit-linked and index-linked life insurance	768.0	764.4	252.7	252.9
Savings portions from unit-linked and index-linked life insurance (gross)	50.4	52.0	13.2	22.9
Savings portions from unit-linked and index-linked life insurance (net)	50.4	49.1	13.2	22.9
Premiums written (gross)	1,058.2	1,045.8	396.4	405.1
Premiums earned (net)	717.6	715.3	239.4	230.0
Premiums earned (net) – intragroup	–177.2	–170.2	–97.7	–96.2
Premiums earned (net) – external	894.9	885.6	337.1	326.1
Technical interest income	74.9	74.7	7.5	5.0
Other insurance income	1.5	0.6	4.4	4.8
Insurance benefits	–608.2	–613.2	–139.8	–136.5
Operating expenses	–161.5	–136.8	–92.2	–88.2
Other technical expenses	–5.1	–7.4	–8.9	–8.8
Technical result	19.2	33.2	10.4	6.4
Net investment income	102.9	100.3	10.8	16.6
Income from investments	128.6	128.1	21.1	23.5
Expenses from investments	–25.7	–27.8	–10.4	–6.8
Financial assets accounted for using the equity method	0.0	0.0	0.0	0.0
Other income	0.8	2.8	9.8	2.3
Reclassification of technical interest income	–74.9	–74.7	–7.5	–5.0
Other expenses	–3.2	–3.2	–3.4	–4.6
Non-technical result	25.6	25.2	9.7	9.3
Operating profit/(loss)	44.8	58.3	20.1	15.6
Amortisation of goodwill and impairment losses	–0.4	–0.4	–0.2	–0.2
Finance cost	–6.2	–6.2	–1.0	–0.8
Earnings before taxes	38.2	51.7	18.9	14.6
Combined ratio (property and casualty insurance, after reinsurance)	95.9%	92.1%	94.0%	96.2%
Cost ratio (after reinsurance)	21.0%	17.9%	36.5%	34.9%

Group		Consolidation		Group functions		Reinsurance
1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted	1–3/2019
1,535.4	1,530.0	–350.7	–346.4	0.0	0.0	360.2	358.1
1,282.6	1,294.8	1.7	3.9	0.0	0.0	263.6	270.2
75.0	63.6	0.0	0.0	0.0	0.0	0.0	0.0
72.0	63.6	0.0	0.0	0.0	0.0	0.0	0.0
1,460.4	1,466.4	–350.7	–346.4	0.0	0.0	360.2	358.1
1,210.6	1,231.1	1.7	3.9	0.0	0.0	263.6	270.2
0.0	0.0	1.7	3.9	0.0	0.0	264.7	271.1
1,210.6	1,231.1	0.0	0.0	0.0	0.0	–1.1	–0.9
79.7	82.4	0.0	0.0	0.0	0.0	0.0	0.0
4.5	5.2	–1.2	–1.0	0.1	0.1	0.2	0.2
–933.8	–927.0	–1.1	–1.0	3.1	3.6	–186.1	–181.6
–319.9	–346.6	–2.1	–2.8	–14.2	–11.9	–78.6	–78.2
–15.9	–11.0	4.1	5.3	–0.3	2.4	–3.6	–4.7
25.2	34.0	1.3	4.3	–11.2	–5.8	–4.4	5.9
139.6	100.6	–55.8	–50.3	72.2	30.0	6.3	7.2
215.9	175.2	–49.0	–37.1	103.0	52.9	10.3	9.7
–107.7	–55.7	9.1	5.8	–78.2	–22.9	–3.9	–2.5
31.5	–18.9	–15.9	–18.9	47.4	0.0	0.0	0.0
11.2	20.8	–1.1	–1.3	4.1	5.0	3.2	6.5
–79.7	–82.4	0.0	0.0	0.0	0.0	0.0	0.0
–11.9	–16.9	0.7	–0.3	–4.0	–4.6	–0.7	–5.4
59.3	22.0	–56.2	–51.9	72.2	30.4	8.8	8.2
84.5	56.1	–54.9	–47.6	61.0	24.6	4.3	14.1
–0.6	–0.6	0.0	0.0	0.0	0.0	0.0	0.0
–12.7	–13.1	10.5	11.2	–15.5	–16.5	–0.7	–0.7
71.1	42.3	–44.3	–36.3	45.5	8.1	3.6	13.4
97.4%	96.3%	n/a	n/a	n/a	n/a	100.5%	96.4%
24.9%	26.8%	n/a	n/a	n/a	n/a	29.8%	28.9%

OPERATING SEGMENTS – CLASSIFIED BY BUSINESS LINE

Property and casualty insurance		UNIQA Austria		UNIQA International
In € million	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted
Premiums written (gross)	574.9	553.9	294.5	307.4
Premiums earned (net)	252.5	243.5	143.2	139.1
Other insurance income	0.8	0.4	4.1	3.5
Insurance benefits	–168.9	–160.4	–82.1	–83.5
Operating expenses	–73.2	–63.9	–52.5	–50.3
Other technical expenses	–2.9	–2.5	–8.2	–8.0
Technical result	8.3	17.0	4.5	0.7
Net investment income	7.9	11.5	6.2	7.8
Income from investments	20.9	19.8	7.6	9.7
Expenses from investments	–13.0	–8.3	–1.4	–1.9
Financial assets accounted for using the equity method	0.0	0.0	0.0	0.0
Other income	0.4	2.7	2.1	1.2
Other expenses	–2.7	–2.4	–2.1	–2.6
Non-technical result	5.6	11.9	6.2	6.4
Operating profit/(loss)	13.9	28.9	10.7	7.2
Amortisation of goodwill and impairment losses	0.0	0.0	–0.1	–0.1
Finance cost	0.0	0.0	–0.7	–0.8
Earnings before taxes	13.9	28.9	9.9	6.3

Health insurance		UNIQA Austria		UNIQA International
In € million	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018
Premiums written (gross)	265.1	260.4	23.7	19.7
Premiums earned (net)	254.0	249.5	19.1	15.6
Technical interest income	21.3	20.9	0.0	0.0
Other insurance income	0.1	0.0	0.0	0.0
Insurance benefits	–220.8	–218.7	–12.7	–10.6
Operating expenses	–40.8	–38.2	–6.0	–5.2
Other technical expenses	–0.4	–0.3	–0.1	–0.1
Technical result	13.4	13.2	0.3	–0.3
Net investment income	31.3	24.3	0.1	0.0
Income from investments	36.8	33.3	0.2	0.2
Expenses from investments	–5.5	–9.0	–0.1	–0.1
Financial assets accounted for using the equity method	0.0	0.0	0.0	0.0
Other income	0.1	0.0	0.8	0.8
Reclassification of technical interest income	–21.3	–20.9	0.0	0.0
Other expenses	–0.3	–0.5	–0.7	–0.7
Non-technical result	9.7	2.9	0.3	0.1
Operating profit/(loss)	23.1	16.1	0.5	–0.1
Earnings before taxes	23.1	16.1	0.5	–0.1

Group		Consolidation		Group functions		Reinsurance
1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted	1–3/2019
868.8	880.8	–341.3	–338.1	0.0	0.0	348.9	349.6
642.4	666.1	1.5	3.3	0.0	0.0	258.4	267.1
3.1	4.1	–1.0	–1.0	0.1	0.0	0.2	0.2
–425.8	–431.0	–0.2	–0.4	0.1	0.0	–181.8	–179.6
–200.2	–210.6	–1.3	–2.5	–6.8	–4.3	–77.9	–78.0
–10.7	–10.1	2.6	3.9	–0.1	1.0	–2.7	–3.8
8.9	18.6	1.6	3.2	–6.7	–3.3	–3.8	5.8
67.4	31.8	–18.0	–10.5	62.1	22.5	4.0	5.5
67.3	57.6	–24.4	–13.2	54.3	34.2	8.0	8.1
–49.3	–25.3	4.4	3.3	–39.6	–11.7	–3.9	–2.5
49.4	–0.6	2.0	–0.6	47.4	0.0	0.0	0.0
9.3	10.8	–0.7	–0.9	3.0	2.8	3.2	6.5
–8.1	–13.8	0.5	–0.3	–3.0	–3.2	–0.7	–5.4
68.7	28.8	–18.2	–11.7	62.1	22.1	6.5	6.6
77.6	47.3	–16.6	–8.5	55.4	18.9	2.7	12.4
–0.1	–0.1	0.0	0.0	0.0	0.0	0.0	0.0
–12.7	–13.1	2.7	2.8	–13.9	–14.4	–0.7	–0.7
64.8	34.1	–13.9	–5.8	41.5	4.4	2.0	11.7

	Reinsurance		Group functions		Consolidation		Group
1–3/2019	1–3/2018	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018
0.4	0.7	0.0	0.0	–0.4	–0.7	288.8	280.1
0.3	0.6	0.0	0.0	0.0	0.0	273.5	265.7
0.0	0.0	0.0	0.0	0.0	0.0	21.3	20.9
0.0	0.0	0.0	0.0	0.0	0.0	0.1	0.1
0.0	–0.1	3.6	3.0	0.0	0.1	–230.0	–226.4
–0.1	–0.3	–4.1	–4.0	0.4	0.1	–50.6	–47.6
0.0	0.0	0.7	–0.1	0.0	0.0	0.1	–0.4
0.2	0.3	0.2	–1.1	0.4	0.1	14.5	12.2
0.0	0.0	3.0	3.8	–26.1	–16.2	8.3	11.9
0.0	0.0	8.4	32.3	–19.5	–11.3	25.9	54.4
0.0	0.0	–5.4	–28.4	0.5	2.0	–10.5	–35.6
0.0	0.0	0.0	0.0	–7.1	–6.9	–7.1	–6.9
0.0	0.0	2.2	1.1	–0.3	–0.3	2.8	1.6
0.0	0.0	0.0	0.0	0.0	0.0	–21.3	–20.9
0.0	0.0	–0.8	–0.7	0.1	0.1	–1.7	–1.8
0.0	0.0	4.4	4.2	–26.3	–16.4	–12.0	–9.2
0.1	0.3	4.6	3.1	–25.9	–16.3	2.5	3.0
0.1	0.3	4.5	3.1	–25.9	–16.3	2.5	3.0

26

Life insurance		UNIQA Austria		UNIQA International
In € million	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted
Premiums written (gross), including savings portions from unit-linked and index-linked life insurance	268.6	283.6	91.5	100.9
Premiums earned (net), including savings portions from unit-linked and index-linked life insurance	261.5	271.5	90.3	98.2
Savings portions from unit-linked and index-linked life insurance (gross)	50.4	52.0	13.2	22.9
Savings portions from unit-linked and index-linked life insurance (net)	50.4	49.1	13.2	22.9
Premiums written (gross)	218.2	231.6	78.2	78.0
Premiums earned (net)	211.1	222.4	77.0	75.3
Technical interest income	53.6	53.8	7.5	5.0
Other insurance income	0.5	0.1	0.3	1.3
Insurance benefits	–218.5	–234.1	–45.1	–42.4
Operating expenses	–47.5	–34.7	–33.7	–32.7
Other technical expenses	–1.7	–4.6	–0.5	–0.6
Technical result	–2.5	3.0	5.6	5.9
Net investment income	63.7	64.6	4.5	8.8
Income from investments	70.9	75.1	13.3	13.6
Expenses from investments	–7.2	–10.5	–8.9	–4.8
Financial assets accounted for using the equity method	0.0	0.0	0.0	0.0
Other income	0.3	0.0	6.8	0.2
Reclassification of technical interest income	–53.6	–53.8	–7.5	–5.0
Other expenses	–0.2	–0.4	–0.5	–1.3
Non-technical result	10.3	10.4	3.3	2.7
Operating profit/(loss)	7.8	13.4	8.8	8.6
Amortisation of goodwill and impairment losses	–0.4	–0.4	–0.1	–0.1
Finance cost	–6.2	–6.2	–0.2	0.0
Earnings before taxes	1.2	6.8	8.5	8.5

UNIQA INTERNATIONAL – REGIONS

			Premiums earned (net) Net investment income			Insurance benefits		Operating expenses		Earnings before taxes
In € million			1–3/2019 1–3/2018 1–3/2019 1–3/2018	adjusted		1–3/2019 1–3/2018 1–3/2019 1–3/2018 1–3/2019 1–3/2018				adjusted
Central Europe (CE)	125.5	122.0	5.3	7.9	–70.1	–68.7	–44.4	–45.7	11.8	11.5
Eastern Europe (EE)	34.2	26.3	2.0	0.2	–18.4	–14.6	–15.2	–14.2	2.3	–2.9
Russia (RU)	18.9	22.9	–2.9	4.1	–14.7	–18.1	–3.6	–3.1	4.3	5.1
Southeastern Europe (SEE)	57.1	55.0	6.6	4.6	–33.5	–31.8	–23.1	–21.5	6.3	4.6
Western Europe (WE)	3.8	3.8	0.1	–0.1	–3.2	–3.3	–0.9	–0.1	–0.1	0.3
Administration	0.0	0.0	–0.3	0.0	0.0	0.0	–5.0	–3.6	–5.6	–3.9
Total	239.4	230.0	10.8	16.6	–139.8	–136.5	–92.2	–88.2	18.9	14.6

Group		Consolidation		Group functions		Reinsurance
1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018	1–3/2019
386.5	360.4	–8.6	–7.9	0.0	0.0	10.6	8.1
374.5	355.2	0.2	0.6	0.0	0.0	4.6	2.8
75.0	63.6	0.0	0.0	0.0	0.0	0.0	0.0
72.0	63.6	0.0	0.0	0.0	0.0	0.0	0.0
311.5	296.7	–8.6	–7.9	0.0	0.0	10.6	8.1
302.5	291.6	0.2	0.6	0.0	0.0	4.6	2.8
58.8	61.1	0.0	0.0	0.0	0.0	0.0	0.0
1.3	0.9	–0.2	0.0	0.0	0.1	0.0	0.0
–281.7	–266.1	–1.0	–0.6	0.0	0.0	–4.2	–1.9
–72.0	–85.5	–0.8	–0.7	–3.3	–3.5	–0.4	–0.1
–4.8	–1.0	1.4	1.5	–0.1	0.7	–0.9	–0.9
4.1	1.0	–0.4	0.7	–3.4	–2.7	–0.9	–0.1
60.3	60.6	–21.6	–13.7	6.2	4.5	2.3	1.6
94.1	91.7	–13.3	–4.4	16.4	10.3	2.3	1.6
–22.8	–19.9	2.7	2.0	–10.3	–5.8	0.0	0.0
–11.0	–11.3	–11.0	–11.3	0.0	0.0	0.0	0.0
0.3	7.2	0.0	0.0	0.0	0.1	0.0	0.0
–58.8	–61.1	0.0	0.0	0.0	0.0	0.0	0.0
–1.9	–1.5	0.1	–0.1	–0.3	–0.6	0.0	0.0
–0.2	5.2	–21.6	–13.9	5.9	3.9	2.3	1.6
3.9	6.2	–22.0	–13.1	2.5	1.2	1.4	1.5
–0.5	–0.5	0.0	0.0	0.0	0.0	0.0	0.0
0.0	0.0	7.8	8.5	–1.6	–2.0	0.0	0.0
3.4	5.7	–14.2	–4.7	0.9	–0.8	1.4	1.5

CONSOLIDATED STATEMENT OF FINANCIAL POSITION – CLASSIFIED BY BUSINESS LINE

		Property and casualty insurance		Health insurance
In € million	31/3/2019	31/12/2018	31/3/2019	31/12/2018
Assets
Property, plant and equipment	200.8	158.8	47.9	44.9
Intangible assets	604.3	614.9	269.2	266.5
Investments
Investment property	225.7	227.2	234.0	235.2
Financial assets accounted for using the equity method	66.9	66.3	198.6	205.7
Other investments	5,152.3	4,627.8	3,254.6	3,081.7
Unit-linked and index-linked life insurance investments	0.0	0.0	0.0	0.0
Reinsurers' share of technical provisions	257.5	286.0	2.5	2.2
Reinsurers' share of technical provisions for unit-linked and index-linked life insurance	0.0	0.0	0.0	0.0
Receivables, including insurance receivables	410.4	356.0	296.1	241.5
Income tax receivables	43.8	48.1	1.2	1.0
Deferred tax assets	1.7	1.7	0.0	0.0
Cash and cash equivalents	319.6	249.3	77.0	168.0
Assets in disposal groups held for sale	0.0	0.0	0.0	0.0
Total assets by business line	7,283.1	6,636.0	4,381.1	4,246.6
Liabilities
Subordinated liabilities	883.3	875.6	0.0	0.0
Technical provisions	3,428.1	3,273.2	3,246.7	3,193.0
Technical provisions for unit-linked and index-linked life insurance	0.0	0.0	0.0	0.0
Financial liabilities	330.1	169.1	16.6	22.2
Other provisions	344.8	392.0	285.9	288.4
Liabilities and other items classified as liabilities	575.7	499.9	150.6	95.2
Income tax liabilities	44.1	61.1	2.5	2.6
Deferred tax liabilities	62.1	48.9	123.5	100.8
Liabilities in disposal groups held for sale	0.0	0.0	0.0	0.0
Total liabilities by business line	5,668.1	5,319.8	3,825.8	3,702.1

Group		Consolidation		Life insurance
31/12/2018	31/3/2019	31/12/2018	31/3/2019	31/12/2018	31/3/2019
311.1	371.0	0.0	0.0	107.4	122.3
1,618.9	1,637.9	–41.6	0.0	779.1	764.5
1,104.1	1,097.5	0.0	0.0	641.7	637.8
599.1	581.3	0.0	0.0	327.1	315.8
17,633.8	18,423.9	–714.9	–844.5	10,639.2	10,861.5
4,751.2	4,769.5	0.0	0.0	4,751.2	4,769.5
413.4	395.9	–11.5	–0.1	136.6	136.0
0.1	0.1	0.0	0.0	0.1	0.1
540.7	618.5	–139.5	–159.9	82.8	71.9
52.3	48.2	0.0	0.0	3.3	3.2
5.8	6.2	0.0	0.0	4.1	4.5
1,444.4	1,554.7	0.0	0.0	1,027.2	1,158.1
29.0	29.0	0.0	0.0	29.0	29.0
28,503.8	29,533.8	–907.6	–1,004.5	18,528.7	18,874.1
869.8	883.3	–416.5	–410.8	410.7	410.8
17,336.4	17,815.3	–27.3	–18.4	10,897.5	11,158.9
4,721.9	4,739.8	0.0	0.0	4,721.9	4,739.8
798.5	1,004.7	–335.1	–399.5	942.3	1,057.5
663.0	642.6	–37.2	–1.8	19.8	13.7
807.2	901.2	–91.4	–114.4	303.5	289.3
64.4	47.3	0.0	0.0	0.8	0.7
255.0	310.1	0.0	0.0	105.3	124.4
1.1	1.1	0.0	0.0	1.1	1.1
25,517.3	26,345.3	–907.5	–944.8	17,402.9	17,796.2
2,986.6	3,188.4		Consolidated equity and non-controlling interests
28,503.8	29,533.8	Total equity and liabilities

The amounts indicated for each business line have been adjusted to eliminate amounts resulting from internal transactions. Therefore, the balance of segment assets and segment equity and liabilities does not allow conclusions to be drawn with regard to the equity allocated to the respective business line.

Notes to the Condensed Consolidated Interim Financial Statements

1. Investments plus valuation hierarchies for fair value

measurements

Other investments are broken down into the following classes and categories of financial instruments:

At 31 March 2019	Variable-income securities	Fixed-income securities	Loans and other	Derivative financial	Investments under	Total
In € million			investments	instruments	investment contracts
Financial assets at fair value through profit or loss	21.7	292.8	0.0	9.1	59.2	382.9
Available-for-sale financial assets	853.3	16,429.7	0.0	0.0	0.0	17,283.0
Loans and receivables	0.0	173.2	584.6	0.0	0.0	757.9
Total	875.1	16,895.7	584.6	9.1	59.2	18,423.8
of which fair value option	21.7	292.8	0.0	0.0	0.0	314.5

At 31 December 2018	Variable-income securities	Fixed-income securities	Loans and other	Derivative financial	Investments under	Total
In € million			investments	instruments	investment contracts
Financial assets at fair value through profit or loss	24.5	308.0	0.0	20.8	56.4	409.8
Available-for-sale financial assets	840.9	15,702.5	0.0	0.0	0.0	16,543.3
Loans and receivables	0.0	173.0	507.7	0.0	0.0	680.7
Total	865.4	16,183.5	507.7	20.8	56.4	17,633.8
of which fair value option	24.5	308.0	0.0	0.0	0.0	332.6

Determination of fair value

A range of accounting policies and disclosures requires the determination of the fair value of financial and non-financial assets and liabilities. UNIQA has defined a 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 regular review is carried out of the major unobservable inputs and the measurement adjustments. 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, including the level in the fair value hierarchy to which these measurements are attributable.

Major items in the measurement are reported to the Audit Committee.

As far as possible, UNIQA uses data that are observable on the market when determining the fair value of an asset or a liability. Based on the inputs used in the valuation techniques, the fair values are assigned to different levels in the fair value hierarchy.

• Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities. At UNIQA, these primarily involve quoted shares, quoted bonds and quoted investment funds.
• Level 2: valuation parameters that are not quoted prices included in Level 1 but which can be observed for the asset or liability either directly (i.e. as a price) or indirectly (i.e. derived from prices), or are based on prices on markets that have been classified as inactive. The parameters that can be observed here include, for example, exchange

rates, yield curves and volatilities. At UNIQA, these include in particular quoted bonds that do not fulfil the conditions under Level 1, along with structured products.

Level 3: valuation parameters for assets or liabilities that are not based or are only partly based on observable market data. The valuations here primarily involve application of the discounted cash flow method, comparative procedures with instruments for which there are observable prices and other procedures. As there are no observable parameters here in many cases, the estimates used can have a significant impact on the result of the valuation. At UNIQA, it is primarily other equity investments, private equity and hedge funds, ABS and structured products that do not fulfil the conditions under Level 2 that are assigned to Level 3.

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.

Valuation process and methods

Financial instruments measured at fair value

For the valuation of capital investments, techniques best suited to the determination of value are applied. The following standard valuation techniques are applied for financial instruments which come under Levels 2 and 3:

Market approach

The valuation 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.

Non-financial assets and loans

The fair value of investment property is determined within the scope of the impairment test.

The loans are accounted for at amortised cost. Any required impairment is determined with due regard to the collateral and the debtor's creditworthiness.

Financial liabilities

The fair value of financial liabilities and subordinated liabilities is determined using the discounted cash flow method. Yield curves and CDS spreads are used as inputs.

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

Valuation techniques and inputs in the determination of fair values

Valuation hierarchy

Assets and liabilities measured at fair value

		Level 1		Level 2		Level 3		Total
In € million						31/3/2019 31/12/2018 31/3/2019 31/12/2018 31/3/2019 31/12/2018 31/3/2019 31/12/2018
Available-for-sale financial assets
Variable-income securities	711.7	695.2	1.2	1.1	140.4	144.5	853.3	840.9
Fixed-income securities	13,482.0	12,568.0	2,278.6	2,633.0	669.1	501.5	16,429.7	15,702.5
Total	14,193.7	13,263.2	2,279.7	2,634.2	809.6	646.0	17,283.0	16,543.3
Financial assets at fair value through profit or loss
Variable-income securities	0.0	0.0	14.5	14.4	7.3	10.1	21.7	24.5
Fixed-income securities	183.0	197.1	47.4	48.2	62.4	62.7	292.8	308.0
Derivative financial instruments	0.0	0.0	2.8	5.2	6.3	15.6	9.1	20.8
Investments under investment contracts	51.2	49.0	0.9	0.9	7.1	6.5	59.2	56.4
Total	234.2	246.1	65.6	68.8	83.1	94.8	382.9	409.8

		Level 1		Level 2		Level 3		Total
In € million		31/3/2019 31/12/2018 31/3/2019 31/12/2018 31/3/2019 31/12/2018 31/3/2019 31/12/2018
Financial liabilities
Derivative financial instruments	0.1	0.0	3.6	13.3	0.0	0.0	3.8	13.3
Total	0.1	0.0	3.6	13.3	0.0	0.0	3.8	13.3

Fair values of assets and liabilities measured at amortised cost

		Level 1		Level 2		Level 3		Total
In € million						31/3/2019 31/12/2018 31/3/2019 31/12/2018 31/3/2019 31/12/2018 31/3/2019 31/12/2018
Investment property	0.0	0.0	0.0	0.0	2,098.5	2,086.1	2,098.5	2,086.1
Loans and receivables
Loans and other investments	0.0	0.0	472.1	395.0	112.6	112.7	584.6	507.7
Fixed-income securities	31.5	30.8	124.6	123.9	31.5	31.4	187.6	186.1
Total	31.5	30.8	596.7	518.9	144.1	144.1	772.3	693.8

		Level 1		Level 2		Level 3		Total
In € million				31/3/2019 31/12/2018 31/3/2019 31/12/2018 31/3/2019 31/12/2018 31/3/2019 31/12/2018
Financial liabilities
Liabilities from collateral received for securities lending	0.0	0.0	0.0	0.0	920.9	772.2	920.9	772.2
Liabilities from loans	0.0	0.0	0.0	0.0	80.1	12.9	80.1	12.9
Total	0.0	0.0	0.0	0.0	1,001.0	785.1	1,001.0	785.1
Subordinated liabilities	982.0	959.4	0.0	0.0	0.0	0.0	982.0	959.4

Transfers between Levels 1 and 2

Transfers were made in the reporting period from Level 1 to Level 2 amounting to €60.7 million and from Level 2 to Level 1 amounting to €434.9 million. These are attributable primarily to changes in trading frequency and trading activity.

Level 3 financial instruments

In accordance with the hierarchy set forth in IFRS 13, Level 3 primarily includes fixed-income securities and other equity investments that come under the category "available for sale".

The following table shows the changes to the fair values of financial instruments whose valuation techniques are not based on observable inputs.

	Fixed-income securities			Other		Total
In € million	2019	2018	2019	2018	2019	2018
At 1 January	501.5	308.6	239.4	282.7	740.8	591.3
Transfers to Level 3	0.0	0.8	0.0	0.0	0.0	0.8
Gains and losses recognised in profit or loss	3.7	1.6	–9.1	–12.5	–5.4	–10.9
Gains and losses recognised in other comprehensive income	18.4	–14.4	–1.5	3.3	16.9	–11.2
Additions	187.8	217.2	3.8	43.7	191.6	260.9
Disposals	–42.2	–12.3	–8.9	–77.8	–51.2	–90.1
Changes from currency translation	0.0	0.0	–0.1	0.0	–0.1	0.0
At 31 March and/or 31 December	669.1	501.5	223.5	239.4	892.7	740.8

Sensitivities

For the most important financial instruments in Level 3, an increase in the discount rate by 100 basis points results in a 6.3 per cent reduction in the value. A reduction in the discount rate by 100 basis points results in a 7.7 per cent increase in value.

2. Net investment income

Classified by business line		Property and casualty insurance	Health insurance		Life insurance		Group
In € million		1–3/2019 1–3/2018 adjusted					1–3/2019 1–3/2018 1–3/2019 1–3/2018 1–3/2019 1–3/2018	adjusted
Investment property	0.9	1.6	1.4	1.3	9.2	9.6	11.6	12.6
Financial assets accounted for using the equity method	–0.6	49.4	–7.1	–6.9	–11.3	–11.0	–18.9	31.5
Variable-income securities	4.0	4.4	–4.5	3.2	3.4	5.5	2.9	13.1
Available for sale	5.4	4.4	–5.1	3.4	3.4	6.6	3.7	14.4
At fair value through profit or loss	–1.4	0.0	0.6	–0.2	0.0	–1.1	–0.8	–1.3
Fixed-income securities	34.8	18.1	19.6	16.2	53.3	55.0	107.7	89.4
Available for sale	30.7	18.3	14.4	16.4	53.1	55.1	98.2	89.8
At fair value through profit or loss	4.1	–0.2	5.3	–0.2	0.2	0.0	9.5	–0.4
Loans and other investments	1.2	–0.1	0.2	0.4	8.8	5.3	10.2	5.6
Loans	0.2	0.2	0.4	0.5	1.5	2.0	2.1	2.6
Other investments	1.1	–0.3	–0.3	0.0	7.3	3.4	8.1	3.0
Derivative financial instruments	–3.0	–2.1	–0.1	–0.3	0.0	–0.7	–3.1	–3.0
Investment administration expenses, interest paid and
other investment expenses	–5.6	–3.9	–1.3	–2.1	–2.9	–3.5	–9.8	–9.5
Total	31.8	67.4	8.3	11.9	60.6	60.3	100.6	139.6

Classified by type of income		Current income/expenses	Gains/losses from disposals and changes in value		Total		of which impairment
In € million		1–3/2019 1–3/2018 adjusted		1–3/2019 1–3/2018 1–3/2019 1–3/2018		adjusted		1–3/2019 1–3/2018
Financial assets at fair value through profit or loss	–1.8	1.1	7.3	–5.8	5.6	–4.7	0.0	0.0
Variable-income securities (within the framework of fair value option)	0.0	0.2	–0.8	–1.5	–0.8	–1.3	0.0	0.0
Fixed-income securities (within the framework of fair value option)	0.7	0.6	8.8	–0.9	9.5	–0.4	0.0	0.0
Derivative financial instruments	–2.5	0.3	–0.6	–3.4	–3.1	–3.0	0.0	0.0
Investments under investment contracts1)	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
Available-for-sale financial assets	92.4	96.1	9.6	8.1	101.9	104.1	–11.8	–3.7
Variable-income securities	7.6	8.0	–3.9	6.4	3.7	14.4	–10.9	–3.3
Fixed-income securities	84.8	88.1	13.5	1.7	98.2	89.8	–0.8	–0.5
Loans and receivables	10.3	5.9	–0.1	–0.3	10.2	5.6	0.0	0.0
Fixed-income securities	1.4	1.8	0.0	0.1	1.4	1.9	0.0	0.0
Loans and other investments	8.9	4.1	–0.1	–0.4	8.9	3.7	0.0	0.0
Investment property	20.2	21.8	–8.6	–9.3	11.6	12.6	0.0	0.0
Financial assets accounted for using the equity method	–18.9	–16.0	0.0	47.5	–18.9	31.5	0.0	0.0
Investment administration expenses, interest paid and other investment expenses	–9.8	–9.5	0.0	0.0	–9.8	–9.5	0.0	0.0
Total	92.3	99.4	8.2	40.2	100.6	139.6	–11.7	–3.7

1) Income from investments under investment contracts is not stated due to its transitory character.

Net profit/(loss) by

1–3/2019 1–3/2018

measurement category In € million

Financial assets at fair value through profit or loss
Recognised in profit/(loss) for the period	5.6	–4.7
Available-for-sale financial assets
Recognised in profit/(loss) for the period	101.9	104.1
of which reclassified from equity to consolidated
income statement	7.4	–29.5
Recognised in other comprehensive income	461.7	–105.5
Net income	563.6	–1.3
Loans and receivables
Recognised in profit/(loss) for the period	10.2	5.6
Financial liabilities measured at amortised cost
Recognised in profit/(loss) for the period	–13.1	–12.7

3. Premiums

Premiums earned In € million		1–3/2019 1–3/2018
Property and casualty insurance	666.1	642.4
Gross	699.9	675.2
Reinsurers' share	–33.8	–32.7
Health insurance	273.5	265.7
Gross	274.3	266.2
Reinsurers' share	–0.8	–0.6
Life insurance	291.6	302.5
Gross	297.7	311.4
Reinsurers' share	–6.1	–8.9
Total	1,231.1	1,210.6

Property and casualty insurance

1–3/2019 1–3/2018

The currency losses in net investment income amount to €5.7 million (1–3/2018: currency losses in the amount of €18.2 million). In addition, positive currency effects amounting to €1.2 million (1–3/2018: positive currency effects in the amount of €2.8 million) were recognised directly in equity.

premiums written In € million

Direct insurance
Fire and business interruption insurance	95.5	98.3
Liability insurance	101.2	101.1
Household insurance	50.3	50.1
Motor TPL insurance	173.8	174.3
Legal expense insurance	26.0	24.8
Marine, aviation and transport insurance	19.6	21.1
Other motor insurance	159.6	151.7
Other property insurance	105.2	98.2
Other forms of insurance	22.2	19.5
Casualty insurance	103.3	100.0
Total	856.7	839.1
Indirect insurance
Fire and business interruption insurance	12.5	19.5
Motor TPL insurance	2.7	1.9
Other forms of insurance	8.9	8.5
Total	24.1	29.8
Total direct and indirect insurance (amount consolidated)	880.8	868.8

4. Insurance benefits

		Gross		Reinsurers' share		Net
In € million	1–3/2019	1–3/2018 adjusted	1–3/2019	1–3/2018	1–3/2019	1–3/2018 adjusted
Property and casualty insurance
Claims expenses
Claims paid	432.9	423.2	–47.5	–8.5	385.4	414.8
Change in provision for unsettled claims	–2.0	0.7	37.4	0.1	35.4	0.8
Total	430.9	423.9	–10.0	–8.3	420.9	415.6
Change in insurance provision	0.0	–0.2	0.0	0.0	0.0	–0.2
Change in other technical provisions	0.2	0.0	–1.5	0.0	–1.3	0.0
Non-profit related and profit-related premium
refund expenses	11.4	10.3	0.0	0.0	11.4	10.3
Total benefits	442.5	434.1	–11.5	–8.3	431.0	425.8
Health insurance
Claims expenses
Claims paid	193.5	189.7	–0.2	0.0	193.3	189.7
Change in provision for unsettled claims	–1.8	–3.7	0.0	–0.1	–1.8	–3.7
Total	191.7	186.0	–0.2	–0.1	191.5	185.9
Change in insurance provision	37.8	37.3	0.0	0.0	37.8	37.3
Non-profit related and profit-related premium
refund expenses	0.7	3.1	0.0	0.0	0.7	3.1
Total benefits	230.1	226.4	–0.2	–0.1	230.0	226.4
Life insurance
Claims expenses
Claims paid	264.9	335.7	–5.9	–5.0	259.0	330.8
Change in provision for unsettled claims	–6.0	–10.2	0.2	–0.4	–5.8	–10.7
Total	259.0	325.5	–5.7	–5.4	253.2	320.1
Change in insurance provision	–5.9	–41.6	1.0	–2.6	–4.9	–44.1
Non-profit related and profit-related premium refund expenses and/or (deferred) benefit
participation expenses	17.8	5.7	0.0	0.0	17.8	5.7
Total benefits	270.8	289.6	–4.7	–7.9	266.1	281.7
Total	943.4	950.2	–16.4	–16.3	927.0	933.8

5. Operating expenses

In € million		1–3/2019 1–3/2018
Property and casualty insurance
Acquisition costs
Payments	173.6	167.5
Change in deferred acquisition costs	–23.4	–23.9
Other operating expenses	65.1	60.8
Reinsurance commission and share of profit from reinsurance ceded	–4.7	–4.3
	210.6	200.2
Health insurance
Acquisition costs
Payments	28.8	29.4
Change in deferred acquisition costs	–2.0	–1.5
Other operating expenses	24.0	19.9
Reinsurance commission and share of profit from reinsurance ceded	–0.2	–0.2
	50.6	47.6
Life insurance
Acquisition costs
Payments	39.4	41.0
Change in deferred acquisition costs	15.4	2.6
Other operating expenses	31.3	30.2
Reinsurance commission and share of profit from
reinsurance ceded	–0.6	–1.8
	85.5	72.0
Total	346.6	319.9

6. Employees

Average number of employees		1–3/2019 1–3/2018
Total	12,851	12,810
of which sales	4,192	4,351
of which administration	8,659	8,459

7. Basis of consolidation

The basis of consolidation – including UNIQA Insurance Group AG – includes 98 fully consolidated companies (31 December 2018: 100) and 6 associates (31 December 2018: 6) accounted for using the equity method.

UNIPARTNER s.r.o. (Bratislava, Slovakia) was merged with UNIQA InsService spol. s r.o. (Bratislava, Slovakia) as the absorbing company in January 2019. Furthermore, SH.A.F.P SIGAL LIFE UNIQA Group AUSTRIA sh.a. (Tirana, Albania) was deconsolidated in January 2019.

Declaration of the legal representatives

The Management Board of UNIQA Insurance Group AG hereby confirms that, to the best of its knowledge, the condensed consolidated interim financial statements, prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and that the interim Group Management Report gives a true and fair view of the Group's financial position with respect to significant events that occurred during the first three

months of the financial year and the impact on the condensed consolidated interim financial statements with respect to the significant risks and uncertainties for the remaining nine months of the financial year, and with respect to the material transactions with related companies or persons that are subject to disclosure.

These consolidated interim financial statements were neither audited in full nor reviewed by an auditor.

Vienna, May 2019

Andreas Brandstetter Chairman of the Management Board

Erik Leyers Member of the Management Board

Kurt Svoboda Member of the Management Board

IMPRINT Owner and Publisher UNIQA Insurance Group AG Commercial registry no.: 92933t

Typesetting Produced in-house using firesys

CONTACT

UNIQA Insurance Group AG Untere Donaustrasse 21, 1029 Vienna, Austria Tel.: (+43) 01 21175-3773 E-mail: investor.relations@uniqa.at

www.uniqagroup.com

Clause regarding predictions about the future

This report contains statements which refer to the future development of the UNIQA Group. These statements present estimations which were reached on the basis of all of the information available to the Group 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.

This is a translation of the German Interim Report of the UNIQA Group. In case of any divergences, the German original is legally binding.