Governance Information • Apr 15, 2015
Governance Information
Open in ViewerOpens in native device viewer
ANNUAL FINANCIAL REPORT 2014 ACCORDING TO SECTION 82 PARAGRAPH 4 OF THE AUSTRIAN STOCK EXCHANGE ACT UNIQA INSURANCE GROUP AG
| Corporate Governance Report 3 | |
|---|---|
| Report of the Supervisory Board 17 | |
| Group Management Report 20 | |
| Consolidated Financial Statements 38 | |
| Notes to the Consolidated Financial Statements 48 | |
| Auditor's Opinion 170 | |
| Statement by Legal Representatives 172 |
Since 2004, the UNIQA Group has pledged to comply with the Austrian Code of Corporate Governance and publishes the declaration of conformity both in the Group annual report and on the Group website at www.uniqagroup.com in the Investor Relations section. The Austrian Code of Corporate Governance is also publically available at www.corporate-governance.at.
Implementation and compliance with the individual rules in the Code are evaluated by PwC Wirtschaftsprüfung GmbH – with the exception of Rules 77 to 83. Compliance with Rules 77 to 83 of the Code of Corporate Governance is evaluated by Schönherr Rechtsanwälte GmbH. The evaluation is carried out largely using the questionnaire for the evaluation of compliance with the Code published by the Austrian Working Group for Corporate Governance (as amended July 2012). 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. In accordance with statutory requirements, UNIQA complies with the "L rules" (legal requirements) in the Code in full. 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 insurance assets, there are a number of contracts with companies related to the individual members of the Supervisory Board in which they discharge duties as members of governing bodies. If such contracts require approval by the Supervisory Board in accordance with Section 95 paragraph 5 no. 12 of the Austrian Stock Corporation Act (Rule 48), 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.
Andreas Brandstetter, Chief Executive Officer (CEO)
* 1969, appointed 1 January 2002 until 31 December 2016
Responsible for:
Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements:
Number of UNIQA shares held as at 31 December 2014: 21,819
* 1959, appointed 1 January 1998 until 31 December 2016
Responsible for:
Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements:
Number of UNIQA shares held as at 31 December 2014: 4,812
* 1966, appointed 1 July 2011 until 31 December 2016
• UNIQA International
Number of UNIQA shares held as at 31 December 2014: 4,812
* 1959, appointed 1 January 2013 until 31 December 2016
Responsible for:
Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements: Member of the Supervisory Board of Raiffeisen Informatik GmbH, Vienna
Number of UNIQA shares held as at 31 December 2014: 4,812
* 1967, appointed 1 July 2011 until 31 December 2016
Responsible for:
Number of UNIQA shares held as at 31 December 2014: 5,461
On 1 January 2015, Kurt Svoboda also took over the role of Chief Financial Officer (CFO) of UNIQA Insurance Group AG in addition to his responsibilities as Chief Risk Officer (CRO). Until 31 December 2014, Hannes Bogner held the role of CFO. Since 1 January 2015, responsibility for compliance has been held by Hannes Bogner (previously Kurt Svoboda).
The work of the members of the Management Board is regulated by the rules of procedure. The division of business responsibilities as decided by the full Management Board is approved by the Supervisory Board. The rules of procedure govern the obligations of the members of the Management Board to provide each other with information and approve each other's activities and the obligations of the Management Board to provide information to, and seek consent from, the Supervisory Board. The rules of procedure specify a list of activities that require consent from the Supervisory Board. The Management Board generally holds weekly meetings 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. In addition, there is a continuous exchange of information between the members of the Management Board regarding relevant activities and events.
The meetings of the Management Board of UNIQA Insurance Group AG are attended by the CEOs of UNIQA Österreich Versicherungen AG and Raiffeisen Versicherung AG – Hartwig Löger and Klaus Pekarek respectively – normally with an advisory vote. The resulting body is known as the Group Executive Board.
The Management Board informs the Supervisory Board at regular intervals, in a timely and comprehensive manner, about all relevant questions of business performance, 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.
Chairman
* 1953, appointed 3 July 1995 until the 16th AGM (2015)
Supervisory Board appointments in domestic and foreign listed companies • Chairman of the Supervisory Board of Raiffeisen Bank International AG, Vienna
* 1954, appointed 15 May 2006 until the 16th AGM (2015)
* 1943, appointed 17 September 1999 until the 15th AGM (2014)
Supervisory Board appointments in domestic and foreign listed companies
• First Vice Chairman of the Supervisory Board of Erste Group Bank AG, Vienna
* 1956, appointed 21 May 2007 until the 16th AGM (2015)
Supervisory Board appointments in domestic and foreign listed companies
Eduard Lechner (since 26 May 2014)
* 1956, appointed 25 May 2009 until the 16th AGM (2015)
* 1954, appointed 15 May 2006 until the 16th AGM (2015)
* 1954, appointed 23 May 2005 until 25 May 2009 and 31 May 2010 until the 16th AGM (2015)
Supervisory Board appointments in domestic and foreign listed companies • Member of the Supervisory Board of Raiffeisen International AG, Vienna
Ewald Wetscherek (until 26 May 2014)
* 1944, appointed 17 September 1999 until the 15th AGM (2014)
* 1955, appointed 26 May 2014 until the 16th AGM (2015)
* 1948, appointed 25 May 2009 until the 16th AGM (2015)
Supervisory Board appointments in domestic and foreign listed companies
• Vice Chairman of the Supervisory Board of Josef Manner & Comp. Aktiengesellschaft, Vienna
* 1962, appointed 29 May 2012 until the 16th AGM (2015)
* 1956, appointed 25 May 2009 until the 16th AGM (2015)
* 1970, appointed 29 May 2012 until the 16th AGM (2015)
Supervisory Board appointments in domestic and foreign listed companies
• Member of the Supervisory Board of Raiffeisen International AG, Vienna
* 1968, appointed 26 May 2014 until the 16th AGM (2015)
Supervisory Board appointments in domestic and foreign listed companies
* 1954, since 18 February 2008
Number of UNIQA shares held as at 31 December 2014: 106
Peter Gattinger * 1976, since 10 April 2013
Heinrich Kames * 1962, since 10 April 2013
Number of UNIQA shares held as at 31 December 2014: 56
*1956, since 17 September 1999
Number of UNIQA shares held as at 31 December 2014: 912
* 1952, from 31 May 2000 to 1 September 2008 and since 15 April 2009
Number of UNIQA shares held as at 31 December 2014: 912
The Supervisory Board of UNIQA Insurance Group AG held six meetings in 2014.
Committee for Board Affairs
• Walter Rothensteiner
• Christian Kuhn (since 26 May 2014)
• Georg Winckler (until 26 May 2014)
Chairman
• Walter Rothensteiner
• Walter Rothensteiner
• Erwin Hameseder
The Supervisory Board advises the Management Board in its strategic planning and projects. It participates in the decisions 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.
The Supervisory Board has comprised nine shareholder representatives since the Annual General Meeting held on 26 May 2014 (previously ten shareholder representatives). Georg Winckler, Ewald Wetscherek and Günther Reibersdorfer stepped down from the Board. Kory Sorenson, satisfying the criteria of Rule 54 of the Austrian Corporate Governance Code for companies with a free float of more than 20 per cent, and Markus Andréewitch were elected to the Supervisory Board during the Annual General Meeting. Nadine Gatzert withdrew her candidacy. The Chairman's Committee of the Supervisory Board was reduced in size from six to four shareholder representatives. The functions of the fourth and fifth Vice Chairmen were discontinued.
A Committee for Board Affairs was formed 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. In its three meetings, the Committee for Board Affairs dealt with personnel matters relating to Management Board members as well as with questions of remuneration policy and succession planning.
The appointed Working Committee is called upon to make decisions only 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 decisions 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 2014.
The Audit Committee of the Supervisory Board performs the duties assigned to it by law. The Audit Committee convened for three meetings in which the auditor of the consolidated financial statements also participated, dealt with all financial statement documents, the Corporate Governance Report and the Management Board's proposal on the appropriation of profit. Furthermore, the planning of the audit of the 2014 financial statements of the companies of the consolidated group was carried out and the Audit Committee was informed of the results of the preliminary audits. In particular, the Audit Committee was provided on a quarterly basis with the reports of the Internal Auditing department concerning audit areas and material findings based on the audits conducted.
Finally, 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 at which the members discussed the capital investment strategy, questions concerning capital structure and the focus of risk and asset liability management.
The various chairmen of the committees informed the members of the Supervisory Board about the meetings and the work of the respective committees.
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 elected members of the Supervisory Board have declared their independence under Rule 53 of the Austrian Code of Corporate Governance. Kory Sorenson satisfies the criteria in Rule 54 for companies with a free float of more than 20 per cent.
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 interests and is therefore capable of influencing the behaviour of the member concerned.
UNIQA has established the following points as additional criteria for determining the independence of a Supervisory Board member:
UNIQA is convinced that the Group can enhance the level of success on a sustainable basis by encouraging a high degree of diversity. Diversity at management levels has a positive impact on the corporate culture. UNIQA defines diversity in this context as different nationalities, cultures and a mix of women and men.
This diversity also reflects the make-up of our customer base in Austria and 18 European countries and helps us to understand them better so we can offer suitable products and services. People from more than 30 different countries are employed by UNIQA at the Vienna corporate head office alone.
Over the course of 2014, the proportion of women on Management Boards and in senior executive positions throughout the Group improved by one percentage point to 19 per cent. The equivalent figure at an international level remained at 25 per cent.
We are particularly pleased to welcome Kory Sorenson, the first woman to be appointed as a shareholder representative on the Supervisory Board of UNIQA Insurance Group AG. Her presence makes the Supervisory Board more diverse. Kory Sorenson combines professional expertise with many years of experience and an international dimension. UNIQA has therefore taken a further step in the right direction but still needs to keep improving in this regard, and certainly intends to do so.
Enabling employees to achieve a work-life balance and providing them with straightforward access to services that make everyday life easier – especially for mothers – are key factors. In Austria, UNIQA has created a comprehensive range of services known as "Freiraum" (Latitude) that addresses these needs. In conjunction with an external partner (KibisCare), this range of services includes a comprehensive childcare service on "bridging days" (between a public holiday and the weekend), an advisory and agency service for childcare, private tuition and for the support and care of family members, together with a broad range of health and sports activities.
UNIQA also supports flexible working hours and offers the option of teleworking. In 2014, 21 per cent of the administrative employees in Austria made use of part-time working while 8 per cent opted for teleworking.
In terms of professional development for managers, UNIQA believes that the most promising approach is to undertake joint development activities for both women and men. Cooperation between men and women then becomes a matter of course and also works much better on a day-today basis. The "INSPIRE" management development programme, which has been running since 2013, aims to put this joint development approach into practice: it brings together managers from all the markets in the UNIQA Group and a quarter of the participants are women. From a recruitment perspective however, UNIQA exercises positive discrimination, giving preference to female applicants where they have the same skills and qualifications.
The members of the Management Board receive their remuneration exclusively from UNIQA Insurance Group AG, the Group holding company.
| 2014 | 2013 |
|---|---|
| 2,468 | 2,458 |
| 876 | 2,465 |
| 3,344 | 4,923 |
| 0 | 0 |
| 3,344 | 4,923 |
| 2,173 | 4,176 |
| 2,706 | 2,699 |
1) The fixed salary components included remuneration in kind equivalent to €85,463 (2013: €73,088).
| Name of Mgt. Board member in € thousand |
Fixed remuneration |
Variable remuneration1) |
Total current remun. |
Termination benefit entitlements |
Total 2014 |
Total 2013 |
|---|---|---|---|---|---|---|
| Andreas Brandstetter | 608 | 218 | 826 | 0 | 826 | 1,164 |
| Hannes Bogner | 459 | 164 | 623 | 0 | 623 | 938 |
| Wolfgang Kindl | 459 | 166 | 624 | 0 | 624 | 900 |
| Thomas Münkel | 485 | 164 | 649 | 0 | 649 | 972 |
| Kurt Svoboda | 457 | 164 | 622 | 0 | 622 | 949 |
| Total 2014 | 2,468 | 876 | 3,344 | 0 | 3,344 | 0 |
| Total 2013 | 2,458 | 2,465 | 4,923 | 0 | 0 | 4,923 |
1) Including long-term incentive provision in the amount of €89,380.
In addition to the remuneration listed above, the following pension fund contributions were paid in the financial year for the existing pension commitments to the members of the Management Board. 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.
| Pension fund contributions in € thousand |
contributions | Regular Compensation payments |
Total for the year |
|---|---|---|---|
| Andreas Brandstetter | 84 | 0 | 84 |
| Hannes Bogner | 128 | 0 | 128 |
| Wolfgang Kindl | 119 | 0 | 119 |
| Thomas Münkel | 245 | 0 | 245 |
| Kurt Svoboda | 105 | 0 | 105 |
| Total 2014 | 681 | 0 | 681 |
| Total 2013 | 681 | 0 | 681 |
The remuneration paid to the members of the Supervisory Board for their work in the 2013 financial year was €380,000. Provisions amounting to €443,750 were set aside for the remuneration to be paid for this work in 2014. A total of €32,700 was paid out in 2014 to cover attendance fees and out-of-pocket expenses (2013: €31,320).
| in € thousand | 2014 | 2013 |
|---|---|---|
| Current financial year (provision) | 444 | 380 |
| Attendance fees | 33 | 31 |
| Total | 476 | 411 |
| Name of Supervisory Board member | Remuneration | Remuneration | |
|---|---|---|---|
| in € thousand | 2014 | 2013 | |
| Walter Rothensteiner | 72 | 71 | |
| Christian Kuhn | 61 | 51 | |
| Georg Winckler | 24 | 58 | |
| Erwin Hameseder | 62 | 57 | |
| Eduard Lechner | 53 | 23 | |
| Günther Reibersdorfer | 22 | 50 | |
| Ewald Wetscherek | 20 | 44 | |
| Markus Andréewitch | 20 | 0 | |
| Ernst Burger | 35 | 16 | |
| Peter Gauper | 35 | 16 | |
| Johannes Schuster | 35 | 16 | |
| Kory Sorenson | 27 | 0 | |
| Remuneration paid to employee representatives | 12 | 9 | |
| Total | 476 | 411 |
The breakdown of the total remuneration (including attendance fees) paid to the individual shareholder representatives on the Supervisory Board was as follows:
Former members of the Supervisory Board did not receive any remuneration.
The disclosures in accordance with Section 239 paragraph 1 of the Austrian Commercial Code in conjunction with Section 80b of the Austrian Insurance Supervisory Act, which must be included as mandatory disclosures in the notes to the financial statements for IFRS financial statements to release the Company from the requirement to prepare financial statements in accordance with the Austrian Commercial Code, 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 variable remuneration component is made available to the members of the Management Board in the form of bonus agreements and granted in the form of a one-off payment if the specified criteria for the entitlement to the bonus have been satisfied.
The system used to calculate the variable component of the remuneration for the Management Board was modified when the appointments to the Management Board were extended from the 2013 financial year. A short-term incentive (STI) is offered in which a one-off payment is made if the defined criteria for the payment of the incentive have been met, based on the Company's earnings situation and agreed individual objectives for each financial year. A long-term incentive (LTI) is also made available in parallel with the STI. The LTI is a share-based payment arrangement with cash settlement and provides for one-off payments after a period of four years based on a virtual investment in UNIQA shares each year and the performance of UNIQA shares, ROE and total shareholder return over the period. This incentive is subject to agreed upper limits and 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.
UNIQA has agreed retirement pensions, invalidity pension 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 meets the requirements for receiving a retirement pension as specified in the Austrian General Social Security Act. In event of an earlier retirement, the pension entitlement is reduced. In the case of the occupational invalidity pension and the pension for surviving dependants, basic amounts are provided as a minimum pension.
The pension plan at Valida Pension AG is funded by UNIQA through ongoing contributions for the individual members of the Management Board. Compensation payments must be made to Valida Pension AG if members of the Management Board step down before the age of 65 (imputed contribution payment duration to prevent overfunding).
Severance payments have been agreed based on the provisions of the Austrian Salaried Employee Act. These severance 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 The member of the Management Board generally retains his or her pension entitlements if his or her function is terminated, but the entitlements are subject to curtailment rules.
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 and, in connection with the implementation of the re-IPO in 2013, public offering of securities insurance (POSI) for the members of the Management Board, Supervisory Board and senior executives. The costs are borne by UNIQA.
A comprehensive risk report (Rule 67 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 for the 2014 financial year has been evaluated by PwC Wirtschaftsprüfung GmbH – with the exception of Rules 77 to 83. Compliance with Rules 77 to 83 was evaluated by Schönherr Rechtsanwälte GmbH. The evaluation is carried out largely using the questionnaire for the evaluation of compliance with the Code published by the Austrian Working Group for Corporate Governance (as amended July 2012).
On completion of the evaluation, PwC Wirtschaftsprüfung GmbH and Schönherr Rechtsanwälte GmbH were able to confirm that UNIQA – to the extent that these rules were covered by UNIQA's declaration of conformity – had complied with the rules of the Austrian Code of Corporate Governance in 2014. Some of the rules were not applicable to UNIQA in the evaluation period.
Vienna, 25 March 2015
Andreas Brandstetter Chairman of the Management Board
Thomas Münkel Member of the Management Board
Hannes Bogner Member of the Management Board
Kurt Svoboda Member of the Management Board
Wolfgang Kindl
Member of the Management Board
For UNIQA, the year 2014 continued to be dominated by the UNIQA 2.0 long-term strategic programme planned to run until 2020. This annual report gives an account of the programme's third full year. Despite tough capital market conditions, the Group was once again able to increase profit from ordinary activities.
As a consequence of the substantial uncertainty surrounding the medium-term economic trend in Europe, the political crisis in parts of Eastern Europe and the persistent low level of interest rates, UNIQA decided in the late autumn of 2014 to revise its planning for the 2015 financial year. However, the revised budgets are still based on a significant year-on-year increase in net profit.
UNIQA continues to adhere to the cornerstones of the UNIQA 2.0 strategic programme. It plans to increase the number of customers in the existing markets to 15 million by 2020 by focusing on its core expertise as a direct insurance company. The Company is aiming for further gradual improvement in its underwriting business in Austria and careful profitable growth in Central and Eastern Europe.
During 2014, 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 verbal and written reports. The Supervisory Board was given timely and comprehensive information about those measures requiring its approval.
The members of the Supervisory Board are regularly invited to participate in informative events on relevant topics. In 2014, there were two special seminars covering Solvency II and the new life insurance strategy.
The Supervisory Board met on six occasions in 2014. Discussions focused on the Group's earnings situation and its further strategic development.
At the meeting held on 27 February, the Supervisory Board mainly discussed the Group's preliminary results for 2013, the initial trends in 2014 and the future real estate strategy in the Group.
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 2013 and on the reports from the Management Board with up-to-date information on the performance of the Group in the first quarter of 2014. The Supervisory Board also discussed the agenda for the 15th Annual General Meeting to be held on 26 May 2014.
The meeting of the Supervisory Board held on 22 May was dedicated to a discussion of the
Group's earnings situation in the first quarter of 2014.
Following the retirement of members of the Supervisory Board and the election of new members, a constituent meeting of the Supervisory Board was held on 26 May. Given the membership changes and some changes in functions, new elections were held at this meeting for the positions of Vice Chairmen and for the members of the other committees appointed by the Supervisory Board. No successor appointments were made for the functions of the fourth and fifth Vice Chairmen in the Chairman's Committee of the Supervisory Board.
At its meeting on 4 September, the Supervisory Board discussed the Group's earnings situation in the first half of the year, the latest developments in the third quarter and the forecast for the whole of 2014. It also addressed the modification of the rules of procedure for the Supervisory Board and the Management Board.
The meeting of the Supervisory Board on 26 November held detailed discussions on the forecast for 2014 and on the planning for the 2015 financial year as well as receiving reports on the results of the Group in the first three quarters of 2014 and the latest performance information for the fourth quarter of 2014. The Supervisory Board also evaluated is activities in accordance with the Austrian Code of Corporate Governance.
In December 2014, the Supervisory Board consented to the sale of a property (Haas-Haus in Vienna) by adopting a written resolution circulated among the members.
To facilitate the work of the Supervisory Board and to improve its efficiency, committees have been set up in addition to the statutory Audit Committee.
The Working Committee did not hold any meetings in 2014, nor did it take any decisions by circulating a written resolution.
At its three meetings, the Committee for Board Affairs dealt with employment legalities concerning the members of the Management Board and with questions relating to remuneration policy and succession planning.
The Investment Committee held four meetings at which the members discussed the capital investment strategy, questions concerning capital structure and the focus of risk and asset liability management.
The Audit Committee held three meetings in 2014 and these meetings were also attended by the auditors of the (consolidated) financial statements. The meeting held on 9 April discussed all the documents relating to the financial statements and the appropriation of profit proposed by the Management Board. The annual activity report for 2013 in accordance with Section 13 paragraph 6 of the Austrian Regulation on Compliance for Issuers was also submitted to the meeting. At the meeting held on 22 May, the auditor presented the planning and strategy for the audits of the 2014 financial statements prepared by the companies in UNIQA Insurance Group AG's corporate group and coordinated this planning and strategy with the committee. At the meeting held on 26 November, the auditor informed the committee about the findings from its preliminary audits to date. The meeting acknowledged a report by the auditor on its assessment of the extent to which the risk management system was fully functioning. In addition, the Audit Committee received quarterly reports from Internal Audit on the areas audited by this department and any material findings that arose from these audits.
Each committee chairman informed the members of the Supervisory Board about the meetings and the work of the respective committees.
The separate financial statements prepared by the Management Board, the management report for UNIQA Insurance Group AG, the consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRSs) – as adopted by the EU – and the Group management report for the year ended 31 December 2014 were audited by PwC Wirtschaftsprüfung GmbH, which issued an unqualified audit opinion.
The Supervisory Board noted the findings of the audit with approval.
The audit of the compliance of the Corporate Governance Report with Section 243b of the Austrian Commercial Code and the evaluation of UNIQA's compliance with the rules of the Austrian Code of Corporate Governance (with the exception of Rules 77 to 83) in the 2014 financial year was carried out by PwC Wirtschaftsprüfung GmbH. Schönherr Rechtsanwälte GmbH audited UNIQA's compliance with Rules 77 to 83 of the Austrian Code of Corporate Governance. The audits found that UNIQA had complied with the rules of the Austrian Code of Corporate Governance in the 2014 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 2014, approved the 2014 annual financial statements of UNIQA Insurance Group AG and endorsed both the management report and the Group management report. The 2014 annual financial statements were thereby adopted in accordance with Section 96 paragraph 4 of the Austrian Stock Corporation Act.
The Supervisory Board reviewed and approved the proposal for the appropriation of profit submitted by the Management Board. Accordingly, a dividend distribution of €0.42 per share will be proposed to the Annual General Meeting on 26 May 2015.
The Supervisory Board would like to take this opportunity to thank all employees of the UNIQA Group for the immense personal commitment and dedication they have shown over the past year.
Vienna, April 2015 On behalf of the Supervisory Board
Walter Rothensteiner Chairman of the Supervisory Board
Overall economic momentum in the insurance industry remained restrained in 2014. Although there was no new recession, the economic recovery in the euro zone remained hesitant and the change in gross domestic product (GDP) at 0.9 per cent in real terms was below the expectations of economic researchers. Private consumption is only recovering slowly and corporate investments were too low in many euro zone countries to provide significant momentum for growth and employment. Monetary easing and historically low real interest rates have not yet resulted in the boost in demand which had been hoped for. The development of disposable income in many European countries also remains somewhat stagnant. These factors also contributed to the fact that economic growth of 0.3 per cent in Austria in 2014 fell somewhat below the average in the euro zone. Austrian households responded with a lower tendency towards saving, and at 7.4 per cent the savings rate fell in the 1st half of the year below the average over many years. Italy's economy also remained below expectations in 2014 with a slight recession.
The high unemployment rates continue to point to low utilisation of available economic capacity. However, there has been some relief for the labour markets recently with unemployment rates falling to 11.5 per cent at year-end in the euro zone. The unemployment rate in Austria in 2014 was 5 per cent and 12.9 per cent in Italy according to calculations by Eurostat.
The yields on fixed interest securities from euro zone issuers again reached new lows in the past year. The effective interest return of German government bonds with a 10-year maturity fell to less than 0.4 per cent at the start of 2015. The compression of interest rates and risk premiums ran through virtually the entire range of investments. European corporate bonds and mortgage bonds were also affected by this. Deflationary price developments reached the euro zone towards the end of the year and the rate of inflation was minus 0.3 per cent in February 2015. The European Central Bank continued its process of monetary easing. The key interest rate is virtually zero and the ECB's deposit rate is minus 0.2 per cent. The ECB also started its process of high-volume, unlimited bond purchases ("quantitative easing"). It can be expected that interest rates will generally remain very low for a longer period of time as a result of the slow recovery in the euro zone, low levels of inflation and this major monetary policy stimulus.
The general economic settings in Central and Eastern Europe are becoming increasingly heterogeneous. Central Europe (Poland, Slovakia, Czech Republic and Hungary) is one of the more stable regions. The upturn in domestic demand is providing real momentum, the labour markets are improving and low inflation and interest rates are bolstering the economy. Economic growth was around 3 per cent on average in real terms in Poland, Slovakia, the Czech Republic and Hungary.
The slowdown in the Russian economy intensified in 2014, with GDP only rising by 0.6 per cent in real terms. A rapid fall in the price of oil, the international economic sanctions and a more restrictive monetary policy by the Russian Central Bank compounded the downturn and could lead to a recession in Russia. The slump in the Ukrainian economy was largely caused by the unresolved conflict that is being carried out increasingly by military means in eastern Ukraine. The country remains dependent on international financial aid despite a standby arrangement agreed with the International Monetary Fund (IMF) and financial aid received from the European Union in the last year. The tense economic situation triggered a dramatic correction in the currency markets. Both the Russian rouble and the Ukrainian hryvnia lost more than 50 per cent of their values against the euro over the course of 2014.
The process of economic transformation is unfolding at differing speeds in the countries of Southeastern Europe. Romania recovered economically with growth in GDP of 3 per cent in real terms. Bulgaria's economy is slowly overcoming the stagnation of recent years. Croatia has so far been unable to make the most of its membership in the European Union. The country has to bear the consequences of several years of recession and will also barely emerge from stagnation in 2015. Events in 2014 in Serbia as well as Bosnia and Herzegovina were overshadowed by the flood disasters in May. The consequences of the bad weather are expected to be overcome gradually and investments in reconstruction could provide some economic stimulus. The southwestern Balkan countries (Albania, Kosovo, Macedonia and Montenegro) recently recorded economic growth which was slightly above the average for the region.
Overall, the process of convergence in the countries in Central and Eastern Europe is proceeding at a slower pace than that forecasted by the economic researchers, both after the 2008/09 financial crisis as well as after the 2011/12 euro crisis. The centre of conflict in eastern Ukraine and the tense geopolitical and economic situation in Ukraine and Russia are factors which are also expected to cast their shadow over the European economy in 2015. Positive effects are expected in the euro zone economy as a result of lower oil prices on the global market, the devaluation of the euro in relation to the currencies of important trading partners and in part through the quantitative easing by the ECB.
The growth in premiums in the Austrian insurance market continued in 2014 following the positive turnaround in 2013. The insurance industry recorded an overall increase of 3.3 per cent in 2014, particularly as a result of strong growth in the area of single premiums. However, a decline in single premiums is expected for 2015, with associated lower levels of overall growth.
Ongoing premium revenue in life insurance is falling further (2014: minus 3.9 per cent). UNIQA therefore issued a new life insurance product in 2014 with benefits for customers and insurers that it expects to provide new stimulus for the insurance market.
The property and casualty sector showed positive premium growth of 2.8 per cent in 2014. The vehicle liability insurance line of business remained flat as a result of the decrease in vehicle registrations, while the comprehensive insurance business continued to experience strong growth. A sideways movement is expected in property and casualty insurance for 2015, although casualty insurance is expected to exceed the EUR 1 billion limit.
In health insurance, the 2014 gains of 3.3 per cent were slightly weaker than those in the previous years, a trend which is expected to continue in 2015. Health insurance is experiencing stronger permanent growth than the property and casualty sector with steady growth rates of around three per cent.
Insurance penetration – i.e. the proportion of premium revenue in gross domestic product – will see moderate growth once again following the declines in 2015, although this will still remain below the European average.
The markets in the CEE region generally also experienced growth in 2014 which was mostly above the levels in Western Europe. The countries of Central Europe in particular – Poland, Slovakia, the Czech Republic and Hungary – recorded good GDP growth rates, which were also driven by strong domestic demand. UNIQA expects the convergence progress for the countries in Central and Eastern Europe to continue, albeit at a slower pace than previously predicted. A comparable trend is also expected for the insurance market in CEE.
Development in the insurance market for the region was only positive to a limited extent in 2014. The life insurance sector in particular recorded an overall decline in premium volumes, driven once again by heavy declines in business with short-term single premium products in Poland. However, the intense price competition, particularly in the vehicle and property insurance business in a series of markets in Central and Eastern Europe, also resulted in lower premium revenues in the non-life sector. In Ukraine, the political and economic events had a negative impact on the insurance market. In contrast, the Russian market remained virtually unaffected with growth in premium volumes both in the life as well as in the non-life sector.
The aggregate figures on market development were also impacted in 2014 by negative exchange rate trends in some of the major markets in Eastern Europe, such as in Russia, the Czech Republic, Ukraine and in Hungary.
The improvements in the economic situation should have a greater impact on consumer spending and investment activity by companies in 2015. The insurance markets in Central and Eastern Europe should therefore benefit from good growth figures and improved export opportunities. However, the additional effects of the current political crisis between Ukraine and Russia on the insurance industries of both these countries are extremely difficult to assess at the present time.
Despite the patchy development, the CEE region remains a growth region with high potential. The need to catch up for insurance products can also be seen, among other things, from the indicators which are still seriously lagging behind, such as those for insurance density and insurance penetration in the region: while the annual insurance premium in Southeastern Europe is only around €100 per capita for instance, it is more than €2,000 per person in Western Europe. Many people in CEE remain underinsured or have no insurance at all. Yet the higher economic growth in CEE as compared with Western Europe with the resulting increased prosperity in the population offers very good growth opportunities for the insurance industry that significantly surpass those in the already saturated insurance markets of Western Europe.
With a premium volume written (including the savings portion from the unit-linked and indexlinked life insurance) of €6,064.4 million, the UNIQA Group is among the leading insurance groups in Central and Eastern Europe. The savings portion from the unit-linked and indexlinked life insurance in the amount of €544.7 million was set off against the change in actuarial reserves, pursuant to FAS 97 (US-GAAP). Without taking the savings portion from the unitlinked and index-linked life insurance into consideration, the premium volume written amounted to €5,519.7 million.
UNIQA offers its products and services via all distribution channels (hired sales force, general agencies, brokers, banks and direct sales) and covers the entire range of insurance lines.
The listed holding company, UNIQA Insurance Group AG, manages the Group and also operates the indirect insurance business. In addition, it carries out numerous service functions for the Austrian and international insurance companies, in order to take best advantage of synergy effects and to consistently implement the Group's long-term corporate strategy.
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.
On 1 January 2015, Kurt Svoboda took over the role of Chief Financial Officer (CFO) in addition to his responsibilities as Chief Risk Officer (CRO). Hannes Bogner, who was the CFO up until that point, became the Chief Investment Officer (CIO) and his main responsibility is to focus on the area of Investments as well as Legal & Compliance.
In October 2014, the rating agency Standard & Poor's confirmed the rating of UNIQA Insurance Group AG as "A-". The ratings of UNIQA Österreich Versicherungen AG and the Group's reinsurer, UNIQA Re AG in Switzerland, also remained "A". UNIQA Versicherung AG in Liechtenstein was rated for the first time and received an "A-". The rating of the UNIQA supplementary capital bond continues to be "BBB". The outlook for all the companies is considered by Standard & Poor's to be "stable".
Standard & Poor's substantiates this confirmation of their ratings with the continued strong competitive position and the very strong capital base. The rating agency recognises an improvement in liquid funds: in this area the rating was raised from "strong" to "exceptional".
In addition to UNIQA Insurance Group AG, UNIQA's 2014 consolidated financial statements include 53 Austrian and 70 international companies. A total of 27 affiliated companies whose influence on a true and fair presentation of the financial position, financial performance and cash flows was immaterial were not included in the consolidated financial statements. In addition, nine Austrian companies were recognised as associates using equity method accounting. Seven associates were of minor importance, and shares held in these companies are recognised at fair value.
Details on the consolidated companies and associates are contained in the corresponding overview in the notes to the consolidated financial statements. The accounting policies are also described in the notes to the consolidated financial statements.
UNIQA's comprehensive risk report is included in the notes to the consolidated financial statements 2014.
Since 2004, UNIQA has pledged to comply with the Austrian Code of Corporate Governance and publishes the Corporate Governance Report at www.uniqagroup.com in the Investor Relations section.
UNIQA provides life and health insurance, and is active in almost all lines of property and casualty insurance. It serves about 10.0 million customers, over 19.2 million insurance contracts with a premium volume written (including the savings portion from the unit-linked and indexlinked life insurance) of about €6.1 billion (2013: €5.9 billion) and investments of €29.2 billion (2013: €27.4 billion). UNIQA is the second-largest insurer in Austria, has a strong network in Central and Eastern Europe with a presence in 15 countries and is additionally active in Italy, Liechtenstein and Switzerland.
UNIQA's total premium volume increased in 2014, taking into account the savings portions of the unit-linked and index-linked life insurance in the amount of €544.7 million (2013: €727.9 million), by 3.0 per cent to €6,064.4 million (2013: €5,885.5 million). The total consolidated premium volume written rose by 7.0 per cent to €5,519.7 million (2013: €5,157.6 million). The continuing noticeable decline in premiums in the unit-linked life insurance was a dampening factor. The main causes of this are subsequent effects of maturing life insurance policies in conjunction with the decision that was already made back in 2011 to withdraw completely from the German market and not to underwrite any more new business.
In the area of insurance policies with recurring premium payments, there was a deterioration of 1.9 per cent to €5,102.7 million (2013: 5,202.8 million). In the single premium business, on the other hand, the premium volume increased by 40.8 per cent to €961.6 million (2013: €682.8 million) due to very strong growth in Austria and Italy.
The Group premiums earned, including the savings portion from the unit-linked and indexlinked life insurance (after reinsurance) in the amount of €526.1 million (2013: €702.3 million), rose by 3.6 per cent to €5,839.0 million (2013: €5,640.9 million). The retained premiums earned (according to IFRSs) rose by 7.6 per cent to €5,312.9 million (2013: €4,938.6 million).
In the 2014 financial year, 43.2 per cent (2013: 44.0 per cent) of the premium volume written (including the savings portion from the unit-linked and index-linked life insurance) can be attributed to property and casualty insurance, 15.8 per cent (2013: 15.9 per cent) to health insurance and 40.9 per cent (2013: 40.1 per cent) to life insurance.
The insurance benefits before reinsurance (see Note 36 in the consolidated financial statements) rose in the 2014 financial year by 10.8 per cent to €4,517.7 million (2013: 4,078.1 million). Consolidated insurance benefits retained also rose in the past year by 10.7 per cent to €4,383.7 million (2013: €3,959.4 million), above all due to the sharp rise in the single premium business.
Total consolidated operating expenses (see Note 37 in the consolidated financial statements) less reinsurance commissions received and the share of profit from reinsurance ceded (see Note 33 in the consolidated financial statements) decreased clearly in the 2014 financial year by 5.8 per cent to €1,275.3 million (2013: €1,354.2 million). Expenses for the acquisition of insurance less reinsurance commissions received and the share of profit from reinsurance ceded in the amount of €26.0 million (2013: €28.3) fell by 0.2 per cent to €912.5 million (2013: €914.2 million). Other operating expenses decreased due to the systematic implementation of cost savings measures as part of the UNIQA 2.0 strategy programme by 17.5 per cent to €362.8 million (2013: €439.9 million). The figures from the past year include extraordinary expenses related to strategic projects in the amount of €25 million.
UNIQA's cost ratio after reinsurance, i.e. the relation of total operating expenses less reinsurance commissions received and the share of profit from reinsurance ceded to the Group premiums earned, including the savings portion from the unit-linked and index-linked life insurance, dropped to 21.8 per cent during the past year (2013: 24.0 per cent) as a result of the developments mentioned above. The cost ratio before reinsurance was 21.4 per cent (2013: 23.5 per cent).
Total investments including land and buildings used by the Group, investment property, shares in associates and investments of the unit-linked and index-linked life insurance and current cash held at banks and cash-in-hand rose in the 2014 financial year by €1,829.0 million to €29,212.7 million (31 December 2013: €27,383.6 million).
Net investment income rose despite the burden of the impairment of bonds of Hypo Alpe-Adria-Bank International AG in an amount of €35.4 million by 10.8 per cent to €864.4 million (2013: 780.0 million). Other drivers of this development were gains on the sale of property and fixed interest securities due to modifications of the strategic asset allocation for the economic optimisation of capital. A detailed description of the investment income can be found in the consolidated financial statements (Note 34).
Other income rose in 2014 mainly due to differences in the exchange rate of the US dollar by 53.8 per cent to €62.4 million (2013: €40.6 million). However, other expenses also rose in the reporting period due to exchange rate differences of the Russian rouble and Ukrainian hryvnia and amounted to €70.3 million (2013: €32.4 million).
The technical result of the UNIQA Group rose in 2014 clearly to €151.5 million (2013: €48.8 million). Operating profit increased to €447.6 million (2013: €347.2 million). Profit/(loss) from ordinary activities of UNIQA was very satisfactory, above all due to the welcome trend in the operative segments UNIQA Austria and Raiffeisen Versicherung AG, and rose by 22.9 per cent to €377.9 million (2013: €307.6 million). Net profit for the reporting period only rose by 1.7 per cent to €292.9 million (2013: €287.9 million), because the net profit for the previous year included a result from discontinued operations in the amount of €50.0 million that arose as a result of the reversal of an other provision related to the sale of the Mannheimer Group. The consolidated profit/(loss) amounted to €289.9 million (2013: €284.7 million). Earnings per share fell, however, due to the rise in the average number of shares in circulation to €0.94 (2013: €1.21). The return on equity after tax and non-controlling interests in the reporting period was 9.9 per cent (2013: 11.9 per cent).
The Management Board will therefore propose a dividend of €0.42 per share to the Supervisory Board and the Annual General Meeting.
The Group's total equity increased in the past financial year due to the rise in the revaluation reserve – driven by higher fair values in particular of fixed interest securities – by 11.4 per cent or €317.3 million to €3,102.4 million (31 December 2013: €2,785.1 million). This included noncontrolling interests in the amount of €20.2 million (31 December 2013: €22.0 million). The solvency ratio (Solvency I) increased accordingly to 295.4 per cent (31 December 2013: 286.7 per cent). The total assets of the Group rose in the reporting period by 6.6 per cent and amounted to €33,038.2 million on 31 December 2014 (31 December 2013: €31,001.7 million).
UNIQA's cash flows from operating activities amounted to €182.4 million in 2014 (2013: €628.0 million). The cash flow from investing activities amounted to €283.4 million (2013: minus €1,781.3 million). The financing cash flow dropped to minus €109.7 million (2013: €813.0 million).
In total, liquid funds changed by €356.0 million (2013: minus €340.3 million). Financial resources available at the end of 2014 amounted to €975.8 million (2013: €617.0 million).
In 2014, the average number of employees at UNIQA rose slightly as a result of the acquisition of the insurance companies in the Baloise Group in Croatia and Serbia to 14,336 (2013: 14,277). Of these, 5,821 (2013: 5,893) were employed in sales positions. The number of employees in administration amounted to 8,515 (2013: 8,384).
In the Central European region (CE) – Poland, Slovakia, Czech Republic and Hungary – the Group had 2,806 employees in the 2014 financial year (2013: 2,899), 2,412 people (2013: 2,028) were employed in the Southeastern Europe region (SEE) – Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Macedonia, Montenegro and Serbia – and 2,328 people (2013: 2,489) in the Eastern European region (EE) – Romania and Ukraine. There were 103 employees (2013: 94) in Russia. The average number of employees in the Western European markets rose slightly to 360 (2013: 348). A total of 6,327 people were employed in Austria (2013: 6,419). Including the employees of the general agencies working exclusively for UNIQA, the total number of people working for the Group amounts to about 22,000.
In 2014, 51 per cent of the staff working in administrative positions at UNIQA Insurance Group AG in Austria were women. In sales, the ratio was 80 per cent men to 20 per cent women. Twenty-one per cent (2013: 19 per cent) of the employees in administration were working part time. The average age in the past year was 43 years (2013: 42 years). In 2014, a total of 15.3 per cent (2013: 14.4 per cent) of the employees participated in UNIQA's bonus system – a variable remuneration system that is tied both to the success of the Company and to personal performance. In addition, UNIQA offers young people in training the opportunity to get to know foreign cultures and make international contacts. Currently, 28 apprentices are being trained. Ten new apprentices were accepted in 2014.
At UNIQA Austria, the premiums written, including the savings portion from the unit-linked and index-linked life insurance, decreased slightly in 2014 by 1.2 per cent to €2,773.5 million (2013: €2,806.7 million). This was due to the continued clear decrease in premiums in unitlinked life insurance. The main causes of this development are subsequent effects of maturing life insurance policies in conjunction with the decision that was already made back in 2011 to withdraw completely from the German market and not to underwrite any more new business. Recurring premiums decreased by 1.2 per cent to €2,741.7 million (2013: €2,774.6 million). Single premiums remained more or less at the level of the previous year of €31.9 million (2013: €32.1 million).
Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned at UNIQA Austria amounted to €2,137.0 million (2013: €2,196.2 million). Retained premiums earned (according to IFRS) declined slightly in 2014 by 0.3 per cent to €1,993.9 million (2013: €1,999.2 million).
Whereas premiums written in property and casualty insurance rose by 2.7 per cent to €1,362.6 million (2013: €1,326.2 million), they increased in health insurance by 2.4 per cent to €887.3 million (2013: €866.2 million). In contrast, in life insurance (including the savings portion from the unit-linked and index-linked life insurance), they decreased by 14.7 per cent to €523.7 million (2013: €614.2 million).
Retained premiums earned (according to IFRS) rose in property and casualty insurance by 0.7 per cent to €753.0 million (2013: €747.6 million); in health insurance, they increased by 2.5 per cent to €886.9 million (2013: €865.2 million). They fell 8.4 per cent in life insurance to €353.9 million (2013: €386.4 million). Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €497.0 million (2013: €583.5 million).
Retained insurance benefits at UNIQA Austria fell by 2.6 per cent in 2014 to €1,637.2 million (2013: €1,680.5 million). However, driven by settlement losses in marine hull insurance, they rose in property and casualty insurance by 4.7 per cent to €516.5 million (2013: €493.5 million) and in health insurance they increased by 1.1 per cent to €744.3 million (2013: €736.2 million). In contrast, they fell 16.5 per cent in life insurance, in line with the premiums earned, to €376.4 million (2013: €450.7 million). Consequently, in 2014 the loss ratio in property and casualty insurance amounted to 68.6 per cent (2013: 66.0 per cent).
Operating expenses, less reinsurance commissions received and the share of profit from reinsurance ceded, amounting to €175.8 million (2013: €179.4 million) decreased in the 2014 financial year by 5.8 per cent to €394.0 million (2013: €418.1 million). In the previous year, this figure contained extraordinary expenses related to strategic projects. They fell 9.3 per cent in property and casualty insurance to €173.1 million (2013: €190.9 million). In health insurance, they increased by 6.0 per cent to €130.0 million (2013: €122.6 million). The main driver of this development is the change in the cost allocation due to the new business model in Austria. On the other hand, in life insurance they fell 13.1 per cent to €90.9 million (2013: €104.6 million).
The cost ratio of UNIQA Austria after reinsurance, i.e. the relation of total operating expenses, less reinsurance commissions received and the share of profit from reinsurance ceded, to the premiums earned, including the savings portion from the unit-linked and index-linked life insurance, amounted to 18.4 per cent during the past year (2013: 19.0 per cent).
Net investment income in the UNIQA Austria segment dropped by 4.2 per cent to €363.0 million (2013: 379.1 million).
Profit/(loss) from ordinary activities of UNIQA Austria rose in the reporting period, driven by the solid profit development in property and casualty insurance as well as health insurance, by 18.6 per cent to €273.9 million (2013: €231.0 million). It rose in property and casualty insurance by 21.8 per cent to €100.7 million (2013: €82.7 million); in health insurance, profit increased by 37.6 per cent to €130.2 million (2013: €94.6 million). In contrast, profit/(loss) from ordinary activities fell by 19.9 per cent in life insurance to €43.0 million (2013: €53.7 million). The main reason for this development was net investment income, which was 25.1 per cent lower at €180.8 million (2013: €241.5 million).
The Raiffeisen Insurance segment increased the premiums written, including the savings portion from the unit-linked and index-linked life insurance in 2014, by 3.1 per cent to €905.3 million (2013: €878.5 million), despite the noticeable decline recorded in premiums in unit-linked life insurance. The main causes of this development are subsequent effects of maturing life insurance policies in conjunction with the decision that was already made back in 2011 to withdraw completely from the German market and not to underwrite any more new business. The strong trend in the Austrian core business with Raiffeisen as a partner bank was able to overcompensate for that deterioration. Although recurring premiums dropped by 8.6 per cent to €754.0 million (2013: €825.3 million), single premiums rose 184.7 per cent to €151.3 million (2013: €53.1 million).
Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned at Raiffeisen Versicherung AG amounted to €794.0 million (2013: €767.7 million). The volume of premiums earned (net, according to IFRS) rose in 2014 by 14.1 per cent to €650.8 million (2013: €570.6 million).
While premiums written rose in property and casualty insurance by 5.1 per cent to €153.2 million (2013: €145.7 million); in life insurance they increased by 2.6 per cent to €752.1 million (2013: €732.8 million). Health insurance is not offered in the Raiffeisen Insurance segment.
Retained premiums earned (according to IFRS) rose in property and casualty insurance by 3.9 per cent to €79.8 million (2013: €76.8 million); in life insurance, they increased by 15.6 per cent to €571.1 million (2013: €493.9 million). Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €714.2 million (2013: €690.9 million).
Retained insurance benefits in the Raiffeisen Insurance segment increased in 2014 by 8.8 per cent to €685.2 million (2013: €630.0 million). They rose 8.1 per cent in property and casualty insurance to €57.1 million (2013: €52.9 million). In life insurance, this increase was noticeably less than the premiums earned: they rose 8.8 per cent to €628.1 million (2013: €577.1 million). The previous year's figure was impacted as a result, among other things, of an increase in the free provision for premium refunds. This expense did not repeat itself to the same extent in the 2014 financial year. Overall, in 2014 the loss ratio in property and casualty insurance amounted to 71.6 per cent (2013: 68.8 per cent).
Operating expenses, not including reinsurance commissions received and the share of profit from reinsurance ceded, which amounted to €30.5 million (2013: €26.2 million), decreased in 2014 by 9.2 per cent to €101.5 million (2013: €111.7 million). They fell in property and casualty insurance by 27.9 per cent to €12.0 million (2013: €16.6 million); in life insurance, they increased by 6.0 per cent to €89.5 million (2013: €95.2 million).
The cost ratio in the Raiffeisen Insurance segment after reinsurance, i.e. the relation of total operating expenses, less reinsurance commissions received and the share of profit from reinsurance ceded, to the premiums earned, including the savings portion from the unit-linked and index-linked life insurance, fell to 12.8 per cent in 2014 (2013: 14.6 per cent).
Net investment income in the Raiffeisen Insurance segment rose in 2014 by 6.1 per cent to €267.0 million (2013: 251.6 million). Among other things, the gains from the disposal of property had a positive effect on net investment income in the 2014 financial year.
Profit/(loss) from ordinary activities in the Raiffeisen Insurance segment climbed by 68.2 per cent to €108.6 million (2013: €64.6 million). It rose in property and casualty insurance by 55.4 per cent to €14.1 million (2013: €9.1 million); in life insurance, profit increased by 70.3 per cent over the previous year's level to €94.6 million (2013: €55.5 million). The main drivers of this positive trend in profit or loss were the drop in expenses connected with the policyholders' dividend reserve, the reduced costs and the increase in net investment income.
UNIQA International increased the premiums written, including the savings portion from the unit-linked and index-linked life insurance, in 2014 by 8.8 per cent to €2,353.1 million (2013: €2,162.4 million). Recurring premiums fell here by 0.6 per cent to €1,574.6 million (2013: €1,564.9 million). Single premiums rose despite the decline in Poland and Hungary due to the very strong business in Italy, where they grew 30.3 per cent to reach €778.5 million (2013: €597.5 million). That means that in 2014 the international companies contributed a total of 38.8 per cent (2013: 36.7 per cent) to total Group premiums.
Including the savings portion from the unit-linked and index-linked life insurance, UNIQA International's volume of premiums earned amounted to €1,822.2 million (2013: 1,634.1 million). The volume of retained premiums earned (according to IFRS) rose in 2014 by 19.3 per cent to €1,582.3 million (2013: 1,325.9 million).
While premiums written in property and casualty insurance decreased slightly due to negative currency effects and the restraint in the highly competitive motor vehicle segment in CEE by 0.8 per cent to €1,084.9 million (2013: €1,093.7 million), they rose in health insurance by 3.0 per cent to €73.5 million (2013: 71.4 million). In life insurance (including the savings portion from the unit-linked and index-linked life insurance) they rose, driven by the positive course of business in Italy, by 19.8 per cent to €1,194.6 million (2013: €997.3 million).
Retained premiums earned (according to IFRS) fell in property and casualty insurance by 1.8 per cent to €588.2 million (2013: €599.2 million), in health insurance they rose by 2.7 per cent to €71.7 million (2013: €69.8 million) and in life insurance by 40.4 per cent to €922.5 million (2013: €656.8 million). Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €1,162.4 million (2013: €965.1 million).
In the Central Europe region (CE) – Poland, Slovakia, the Czech Republic and Hungary – premiums earned, including the savings portion from the unit-linked and index-linked life insurance, decreased in the 2014 financial year by 13.5 per cent to €524.7 million (2013: €606.8 million). The reduction of the very short-term-oriented single premium business in Poland, the marked withdrawal from single premium business in Hungary and the weaker exchange rate of the Czech koruna were the main factors responsible for this decrease. In Eastern Europe (EE) – comprising Romania and Ukraine – premiums earned, including the savings portion from the unit-linked and index-linked life insurance, fell above all due to the significant loss in value of the Ukrainian hryvnia and the restraint in the highly competitive Romanian motor vehicles business by 23.0 per cent to €117.4 million (2013: €152.5 million). In the Southeastern Europe region (SEE) – Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Macedonia, Montenegro and Serbia – in 2014 premium growth was generated in the amount of 29.6 per cent, to €205.7 million (2013: €158.7 million). One driver of this was the acquisition of the insurance companies in the Baloise Group in Croatia and Serbia. In Russia (RU), the premiums earned, including the savings portion from the unit-linked and index-linked life insurance, rose despite the decrease in value of the Russian rouble by 1.9 per cent to €65.6 million (2013: €64.3 million). In Western Europe (WE) – Italy, Liechtenstein and Switzerland – the premiums earned, including the savings portion from the unit-linked and index-linked life insurance, rose in particular due to the increase in single premiums in Italy by 39.2 per cent to €908.9 million (2013: €652.9 million).
Retained insurance benefits of UNIQA International increased in 2014 by 30.6 per cent to €1,253.6 million (2013: €960.1 million). In property and casualty insurance they rose by 1.8 per cent to €372.7 million (2013: €366.1 million); in health insurance, profit increased by 7.5 per cent to €45.7 million (2013: €42.5 million). They increased 51.4 per cent in life insurance to €835.2 million (2013: €551.5 million) due to the strong rise in premium revenue. In 2014 the loss ratio in property and casualty insurance rose 63.4 per cent (2013: 61.1 per cent).
In the CE region, benefits rose by 3.1 per cent in 2014 to €245.8 million (2013: €238.5 million); however, in the EE region they fell by 25.1 per cent to €69.6 million (2013: €92.9 million). In SEE, due to the acquisition of the insurance companies in the Baloise Group in Croatia and Serbia, they rose 33.8 per cent to €128.9 million (2013: €96.3 million). In Russia, benefits amounted to €44.2 million (2013: €40.4 million); and in Western Europe, the volume of benefits rose due to the strong growth in premiums in life insurance by 55.5 per cent to €765.2 million (2013: €492.0 million).
Operating expenses, not including reinsurance commissions received and the share of profit from reinsurance ceded, which amounted to €147.9 million (2013: €147.3 million), decreased in the 2014 financial year by 4.4 per cent to €434.8 million (2013: €454.7 million). They fell by 8.5 per cent in property and casualty insurance to €228.9 million (2013: €250.2 million). In health insurance, benefits rose on the other hand by 7.0 per cent to €30.7 million (2013: €28.7 million). They decreased by 0.3 per cent in life insurance to €175.3 million (2013: €175.8 million).
The cost ratio of UNIQA International after reinsurance, i.e. the relation of total operating expenses, less reinsurance commissions received and the share of profit from reinsurance ceded, to premiums earned, including the savings portion from the unit-linked and index-linked life insurance, decreased during the past year for the reasons mentioned above to 23.9 per cent (2013: 27.8 per cent).
In CE, operating expenses, not including reinsurance commissions received and the share of profit from reinsurance ceded, decreased in the reporting year by 10.9 per cent to €159.7 million (2013: €179.1 million) and in EE by 16.7 per cent to €64.9 million (2013: €77.9 million). In SEE, due to the acquisition of the insurance companies in the Baloise Group in Croatia and Serbia, they increased by 18.2 per cent to €89.7 million (2013: €75.9 million). In Russia, costs amounted to €16.8 million (2013: €24.4 million), while expenses increased in Western Europe by 11.0 per cent to €78.3 million (2013: €70.5 million). In administration (UNIQA International AG), costs decreased by 5.1 per cent to €25.4 million (2013: €26.8 million).
Net investment income rose during 2014 by 21.8 per cent to €174.3 million (2013: 143.1 million).
In the reporting period, profit/(loss) from ordinary activities in the UNIQA International segment amounted to minus €1.2 million (2013: €21.5 million). The main reason for this was the impairment of goodwill in Romania in the amount of €25 million. Profit (net of tax) in property and casualty insurance declined due to the impairment of goodwill mentioned above to minus €21.4 million (2013: €1.0 million). In health insurance, it came to minus €1.3 million (2013: €1.6 million). On the other hand, in life insurance the profit/(loss) from ordinary activities improved by 13.7 per cent to €21.5 million (2013: €18.9 million).
In the reinsurance segment, the premium volume written fell in 2014 by 27.2 per cent to €1,189.3 million (2013: €1,633.1 million). On the other hand, the volume of retained premiums earned (according to IFRS) rose slightly by 0.7 per cent to €1,080.9 million (2013: €1,073.6 million).
Retained insurance benefits increased in 2014 by 2.3 per cent to €800.8 million (2013: €782.5 million). This includes the burden of losses (retained) due to flood damage in Austria, Bosnia and Herzegovina and Serbia as well as an increased burden due to major claims amounting to about €96 million.
Operating expenses, not including reinsurance commissions received and the share of profit from reinsurance ceded, which amounted to €8.2 million (2013: €3.9 million), increased marginally by 0.5 per cent to €335.1 million (2013: €333.6 million).
Net investment income rose in 2014 to €31.3 million (2013: €21.8 million).
Due to the rise in the volume of benefits, profit/(loss) from ordinary activities in the reinsurance segment decreased to minus €30.5 million (2013: minus €18.0 million).
In the Group Functions and Consolidation segment, profit/(loss) from ordinary activities increased due to the rise in investment income to €27.0 million (2013: €8.4 million).
Net investment income rose in 2014 among other things due to gains from the sale of property to €28.7 million (2013: minus €15.6 million).
As a consequence of the decision made on 1 March 2015 by the Austrian Financial Market Authority (FMA) to impose a moratorium on debt and interest payments by Heta Asset Resolution AG, UNIQA anticipates that it will need to recognise an impairment loss in the first quarter of 2015 for senior bonds issued by former Hypo Alpe-Adria-Bank Internatinal AG. The amount of the impairment loss will be determined on the basis of the edict from the FMA and the change in the legal situation. However, the amounts will not be material.
UNIQA expects a moderate upturn in the euro zone in 2015, with positive momentum in terms of general demand as a result of the lower price of oil, a lower euro exchange rate and the quantitative easing by the ECB. The expectations for growth in CEE are now more heterogeneous. In Central Europe (CE), the economic structural conditions remain positive overall, with expectations in terms of economic growth above average when compared with the whole of Europe. The outlook for Russia has changed significantly: Russia's economy is expected to fall into a deep recession as a result of the fall in the price of oil, the western sanctions and a more restrictive monetary policy. Ukraine remains in recession and requires stabilising political measures and international financial aid. Structural problems prevent some countries in Southeastern Europe (SEE) from fully exploiting their growth potential. Romania is continuing its recovery as is Bulgaria, although at a more moderate pace. Politicians in Croatia and Serbia are faced with structural reforms and budget consolidation, which are expected to keep GDP growth at virtually zero.
The ECB announced an expanded bond acquisition programme in January 2015 (quantitative easing). As part of the expanded programme, the ECB will make monthly purchases of securities beginning in March from public and private issuers amounting to €60 billion. The programme is to run at least until September 2016 or even longer if the ECB sees no sustainable development in inflation, which is consistent with its mandate of achieving price stability.
The capital market has already to some extent anticipated the ECB programme: benchmark interest rates have reached new historic lows in the euro zone over the past year. Yields on German government bonds with 10 year maturities fell below 0.4 per cent in December 2014. UNIQA expects a long period of low interest rates as a result of the slow economic recovery, low inflation and major stimulus through monetary policy.
UNIQA expects moderate economic growth for 2015. The very low level of interest rates is also placing a strain on the insurance industry as a whole, with no reversal in this trend expected in the near future. UNIQA believes that there are exceptionally high levels of uncertainty in relation to medium-term economic developments in Europe in combination with the geopolitical tensions.
Nevertheless, UNIQA still expects growth in profit from ordinary activities in the doubledigit percentage range of 425 to 450 million euros for 2015 as compared with 2014, steady premium performance and further improvement in the combined ratio. UNIQA is continuing to focus its attention on increasing profitability in its core insurance market and to concentrate more heavily on cost and capital management.
The most important features of the internal control and risk management system with regard to the financial reporting process are described in the notes to the consolidated financial statements (Risk Report).
The individual accounts of UNIQA Insurance Group AG, prepared in accordance with the Austrian Commercial Code, report an annual net profit for the 2014 financial year in the amount of €130,571,950.61 (2013: €108,208,827.81). The Management Board will propose to the Annual General Meeting on 26 May 2015 that this net profit be used for a dividend of €0.42 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, 25 March 2015
Andreas Brandstetter Chairman of the Management Board
Wolfgang Kindl Member of the Management Board
Hannes Bogner
Member of the Management Board
Thomas Münkel Member of the Management Board
Kurt Svoboda
Member of the Management Board
| Assets | Notes | 31/12/2014 | 31/12/20131) | 01/01/20131) |
|---|---|---|---|---|
| in € thousand | ||||
| A. Property, plant and equipment | ||||
| I. Land and buildings for own use | 1 | 187,746 | 198,433 | 194,151 |
| II. Other property, plant and equipment | 2 | 95,760 | 88,156 | 112,604 |
| 283,506 | 286,589 | 306,755 | ||
| B. Investment property | 3 | 1,504,483 | 1,652,485 | 1,690,763 |
| C. Intangible assets | ||||
| I. Deferred acquisition costs | 4 | 998,952 | 994,501 | 931,981 |
| II. Goodwill | 5 | 490,059 | 510,174 | 523,753 |
| III. Other intangible assets | 6 | 28,046 | 24,455 | 25,170 |
| 1,517,058 | 1,529,131 | 1,480,903 | ||
| D. Investments in associates | 7 | 528,681 | 545,053 | 544,522 |
| E. Investments | ||||
| I. Variable-income securities | ||||
| 1. Available-for-sale | 9 | 625,189 | 863,810 | 1,399,352 |
| 2. At fair value through profit or loss | 98,005 | 131,264 | 371,262 | |
| 723,194 | 995,074 | 1,770,614 | ||
| II. Fixed-income securities | ||||
| 1. Available-for-sale | 9 | 18,016,323 | 15,136,246 | 13,186,622 |
| 2. Assessed at fair value through profit or loss | 364,630 | 439,374 | 441,623 | |
| 18,380,953 | 15,575,620 | 13,628,244 | ||
| III. Loans and other investments | ||||
| 1. Loans | 11 | 835,603 | 944,813 | 1,089,649 |
| 2. Bank balances | 12 | 390,046 | 1,273,852 | 1,189,217 |
| 3. Deposits retained on assumed reinsurance | 12 | 123,554 | 126,761 | 129,755 |
| 1,349,202 | 2,345,426 | 2,408,621 | ||
| IV. Derivative financial instruments (trading portfolio) | ||||
| 1. Variable-rate | 10 | 0 | 98 | 6,363 |
| 2. Fixed-rate | 10 | 122,340 | 73,283 | 55,844 |
| 122,340 | 73,381 | 62,206 | ||
| V. Investments under investment contracts | 53,664 | 48,590 | 43,064 | |
| 20,629,354 | 19,038,091 | 17,912,749 | ||
| F. Unit-linked and index-linked life insurance investments | 24 | 5,386,650 | 5,332,611 | 5,023,764 |
| G. Reinsurers' share of technical provisions | ||||
| I. Unearned premiums | 19 | 16,030 | 14,643 | 9,869 |
| II. Insurance provision | 20 | 394,307 | 413,385 | 434,379 |
| III. Provision for unsettled claims | 21 | 151,240 | 123,620 | 159,763 |
| IV. Other technical provisions | 1,964 | 1,604 | 1,836 | |
| 23 | 563,540 | 553,252 | 605,847 | |
| H. Reinsurers' share of technical provisions | ||||
| for unit-linked and index-linked life insurance | 24 | 332,974 | 389,206 | 408,818 |
| I. Receivables including insurance receivables | 13 | |||
| I. Reinsurance receivables | 45,883 | 84,821 | 42,623 | |
| II. Other receivables | 1,014,694 | 856,146 | 845,186 | |
| III. Other assets | 33,967 | 38,778 | 48,369 | |
| 1,094,544 | 979,746 | 936,179 | ||
| J. Income tax receivables | 14 | 53,917 | 69,881 | 55,098 |
| K. Deferred tax assets | 15 | 6,630 | 8,695 | 6,673 |
| L. Current bank balances and cash-in-hand | 975,764 | 616,976 | 960,065 | |
| M. Assets in disposal groups held for sale | 8 | 161,053 | 0 | 63,661 |
| Total assets | 33,038,153 | 31,001,715 | 29,995,797 |
1) Prior-year amounts have been adjusted in accordance with IAS 8.42.
| Equity and liabilities in € thousand |
Notes | 31/12/2014 | 31/12/20131) | 01/01/20131) |
|---|---|---|---|---|
| A. Total equity | ||||
| I. Shareholders' equity | 16 | |||
| 1. Subscribed capital and capital reserves | 1,789,920 | 1,789,920 | 1,064,594 | |
| 2. Retained earnings | 894,474 | 792,204 | 656,708 | |
| 3. Revaluation reserve | 410,778 | 177,133 | 309,232 | |
| 4. Actuarial gains and losses on defined benefit obligations | –143,503 | –116,081 | –95,260 | |
| 5. Consolidated profit | 130,572 | 119,951 | 78,258 | |
| 3,082,242 | 2,763,127 | 2,013,533 | ||
| II. Non-controlling interests | 17 | 20,193 | 22,012 | 20,675 |
| 3,102,434 | 2,785,139 | 2,034,208 | ||
| B. Subordinated liabilities | 18 | 600,000 | 600,000 | 450,000 |
| C. Technical provisions | ||||
| I. Unearned premiums | 19 | 626,641 | 631,588 | 629,480 |
| II. Insurance provision | 20 | 16,773,299 | 16,447,408 | 16,191,990 |
| III. Provision for unsettled claims | 21 | 2,584,844 | 2,367,882 | 2,365,841 |
| IV. Provision for non-profit related premium refunds | 22 | 49,743 | 46,479 | 44,578 |
| V. Provision for profit-related premium refunds and/or policyholder profit participation | 22 | 1,141,282 | 360,676 | 566,721 |
| VI. Other technical provisions | 44,260 | 46,182 | 48,929 | |
| 23 | 21,220,068 | 19,900,215 | 19,847,540 | |
| D. Technical provisions for unit-linked and | ||||
| index-linked life insurance | 24 | 5,306,000 | 5,251,035 | 4,939,966 |
| E. Financial liabilities | ||||
| I. Liabilities from loans | 25 | 16,692 | 18,535 | 27,494 |
| II. Derivative financial instruments | 10 | 32,489 | 8,301 | 7,471 |
| 49,181 | 26,836 | 34,965 | ||
| F. Other provisions | ||||
| I. Provisions for pensions and similar obligations | 26 | 611,670 | 586,757 | 566,620 |
| II. Other provisions | 27 | 222,245 | 249,924 | 304,389 |
| 833,914 | 836,681 | 871,009 | ||
| G. Liabilities and other items classified as equity and liabilities | 28 | |||
| I. Reinsurance liabilities | 758,583 | 834,056 | 887,405 | |
| II. Other liabilities | 583,539 | 505,022 | 613,707 | |
| III. Other items classified as equity and liabilities | 26,628 | 23,040 | 31,226 | |
| 1,368,751 | 1,362,117 | 1,532,338 | ||
| H. Income tax liabilities | 29 | 43,272 | 40,712 | 28,623 |
| I. Deferred tax liabilities | 30 | 355,424 | 198,980 | 245,956 |
| J. Liabilities in disposal groups held for sale | 8 | 159,107 | 0 | 11,191 |
| Total equity and liabilities | 33,038,153 | 31,001,715 | 29,995,797 |
1) Prior-year amounts have been adjusted in accordance with IAS 8.42.
| in € thousand | Notes | 2014 | 20131) |
|---|---|---|---|
| Premiums written (gross) | 31 | 5,519,700 | 5,157,576 |
| 1. Premiums earned (net) | 32 | ||
| a) Gross | 5,523,218 | 5,149,467 | |
| b) Reinsurers' share | –210,322 | –210,867 | |
| 5,312,896 | 4,938,600 | ||
| 2. Technical interest income | 560,384 | 489,799 | |
| 3. Other insurance income | |||
| a) Gross | 32,595 | 22,305 | |
| b) Reinsurers' share | 1,897 | 1,203 | |
| 34,492 | 23,508 | ||
| 4. Insurance benefits | 33 | ||
| a) Gross | –4,517,700 | –4,078,083 | |
| b) Reinsurers' share | 134,038 | 118,635 | |
| –4,383,662 | –3,959,448 | ||
| 5. Operating expenses | 34 | ||
| a) Expenses for the acquisition of insurance | –938,593 | –942,528 | |
| b) Other operating expenses | –362,782 | –439,941 | |
| c) Reinsurance commission and share of profit from reinsurance ceded | 26,044 | 28,302 | |
| –1,275,330 | –1,354,167 | ||
| 6. Other technical expenses | |||
| a) Gross | –71,304 | –56,921 | |
| b) Reinsurers' share | –25,994 | –32,600 | |
| –97,298 | –89,521 | ||
| 7. Technical result | 151,482 | 48,772 | |
| 8. Net investment income | 35 | 864,375 | 780,002 |
| of which profit from associates | 23,583 | 22,229 | |
| 9. Other income | 36 | 62,428 | 40,589 |
| 10. Reclassification of technical interest income | –560,384 | –489,799 | |
| 11. Other operating expenses | 37 | –70,334 | –32,413 |
| 12. Non-technical result | 296,084 | 298,379 | |
| 13. Operating profit/(loss) | 447,566 | 347,151 | |
| 14. Amortisation of goodwill and impairment losses | –32,292 | –7,301 | |
| 15. Finance costs | –37,343 | –32,281 | |
| 16. Profit/(loss) from ordinary activities | 377,932 | 307,569 | |
| 17. Income taxes | 38 | –85,055 | –69,711 |
| 18. Profit/(loss) from discontinued operations (after tax) | 0 | 50,000 | |
| 19. Profit for the year | 292,877 | 287,858 | |
| of which attributable to shareholders of UNIQA Insurance Group AG | 289,863 | 284,660 | |
| of which attributable to non-controlling interests | 3,014 | 3,198 | |
| Earnings per share (in €) 2) |
16 | 0.94 | 1.21 |
| Average number of shares in circulation | 308,180,350 | 235,294,119 | |
1) Prior-year amounts have been adjusted in accordance with IAS 8.42. 2) Diluted earnings per share equates to basic earnings per share. Calculated based on consolidated profit.
Profit/loss from discontinued operations in the previous year originates from the reversal of a provision for liability in connection with the sale of Mannheimer AG Holding and has been allocated entirely to the shareholders of the parent company.
| in € thousand | 2014 | 20131) |
|---|---|---|
| Profit for the year | 292,877 | 287,858 |
| Items not to be reclassified to profit or loss in subsequent periods | ||
| Actuarial gains and losses on defined benefit obligations | ||
| Gains (losses) recognised in equity | –46,042 | –32,157 |
| Gains (losses) recognised in equity - deferred taxes | 8,841 | 6,757 |
| Gains (losses) recognised in equity - deferred profit participation | 9,779 | 4,579 |
| –27,422 | –20,821 | |
| Items to be reclassified to profit or loss in subsequent periods | ||
| Currency translation | ||
| Gains (losses) recognised in equity | –64,364 | –24,897 |
| Recognised in the consolidated income statement | 0 | –6,332 |
| Unrealised gains and losses on investments | ||
| Gains (losses) recognised in equity | 1,318,234 | –170,192 |
| Gains (losses) recognised in equity - deferred taxes | –127,346 | 21,194 |
| Gains (losses) recognised in equity - deferred profit participation | –893,479 | 76,778 |
| Recognised in the consolidated income statement | –174,736 | –239,082 |
| Recognised in the consolidated income statement - deferred tax | 11,112 | 28,104 |
| Recognised in the consolidated income statement - deferred profit participation | 98,135 | 150,511 |
| Change from measurement under the equity method | ||
| Gains (losses) recognised in equity | –7,445 | –10,979 |
| Recognised in the consolidated income statement | 0 | –1,710 |
| Other changes 2) | 2,238 | –1,540 |
| 162,350 | –178,143 | |
| Other comprehensive income | 134,928 | –198,964 |
| Total comprehensive income | 427,805 | 88,894 |
| of which attributable to shareholders of UNIQA Insurance Group AG | 426,516 | 86,282 |
| of which attributable to non-controlling interests | 1,289 | 2,612 |
1) Prior-year amounts have been adjusted in accordance with IAS 8.42.
2) Diluted earnings per share equates to basic earnings per share. Calculated based on consolidated profit.
In the 2014 financial year the presentation of the income statement was expanded to include the key management indicator "technical result" as a subtotal.
The items other income and other expenses were split and recorded as other technical and other non-technical income and/or expenses.
The portion of the technical interest income that is financed from capital gains was also reclassified as technical income, since the corresponding expense is also included in the insurance benefits. The technical interest is the amount that we earned in insurance business from investing the assets that cover technical provisions.
The item Amortisation of goodwill and impairment losses has also been reclassified under operating profit/(loss).
The values as at 31 December 2013 and 2012 have been adjusted in accordance with IAS 8.42. Equity as at 31 December 2013 decreased by EUR 4,788 thousand, whereas equity as at 31December 2012 increased by EUR 4,258 thousand. The adjusted profit/(loss) for 2013 increased by EUR 1,081 thousand. The adjustments related to:
| Consolidated statement of financial position In € thousand |
31/12/2013 After adjustment |
31/12/2013 Before adjustment |
31/12/2013 Adjustment |
|---|---|---|---|
| Assets | |||
| C. Intangible assets | 1,529,131 | 1,462,530 | 66,601 |
| I. Deferred acquisition costs | 994,501 | 927,900 | 66,601 |
| E. Investments | 19,038,091 | 18,989,501 | 48,590 |
| V. Investments under investment contracts | 48,590 | 0 | 48,590 |
| F. Unit-linked and index-linked life insurance investments | 5,332,611 | 5,381,201 | –48,590 |
| K. Deferred tax assets | 8,695 | 142,215 | –133,520 |
| Total assets | 31,001,715 | 31,068,634 | –66,919 |
| Equity and liabilities | |||
| A. Total equity | 2,785,139 | 2,789,927 | –4,788 |
| I. Shareholders' equity | 2,763,127 | 2,767,717 | –4,590 |
| 3. Revaluation reserve |
177,133 | 193,465 | –16,331 |
| 5. Consolidated profit |
119,951 | 108,209 | 11,742 |
| II. Non-controlling interests | 22,012 | 22,210 | –199 |
| C. Technical provisions | 19,900,215 | 19,826,710 | 73,505 |
| I. Unearned premiums | 631,588 | 621,986 | 9,602 |
| II. Insurance provision | 16,447,408 | 16,409,428 | 37,980 |
| V. Provision for profit-related premium refunds and/or policyholder | |||
| profit participation | 360,676 | 334,753 | 25,922 |
| D. Technical provisions for unit-linked and | |||
| index-linked life insurance | 5,251,035 | 5,299,625 | –48,590 |
| G. Liabilities and other items classified as equity and liabilities | 1,362,117 | 1,313,527 | 48,590 |
| II. Other liabilities | 505,022 | 456,432 | 48,590 |
| I. Deferred tax liabilities | 198,980 | 334,616 | –135,636 |
| Total equity and liabilities | 31,001,715 | 31,068,634 | –66,919 |
| Consolidated income statement in € thousand |
2013 After adjustment |
2013 Before adjustment |
2013 Adjustment |
| 1. Premiums earned (net) | 4,938,600 | 4,935,888 | 2,712 |
| a) Gross | 5,149,467 | 5,146,755 | 2,712 |
| 4. Insurance benefits | –3,959,448 | –3,955,268 | –4,180 |
| a) Gross | –4,078,083 | –4,073,903 | –4,180 |
| 5. Operating expenses | –1,354,167 | –1,357,589 | 3,422 |
| a) Expenses for the acquisition of insurance | –942,528 | –945,950 | 3,422 |
| 7. Technical result | 48,772 | 46,817 | 1,955 |
| 13. Operating profit/(loss) | 347,151 | 345,195 | 1,955 |
| 16. Profit/(loss) from ordinary activities | 307,569 | 305,614 | 1,955 |
| 17. Income taxes | –69,711 | –68,837 | –874 |
| 19. Profit for the year | 287,858 | 286,777 | 1,081 |
| of which attributable to shareholders of UNIQA Insurance Group AG | 284,660 | 283,447 | 1,213 |
| of which attributable to non-controlling interests | 3,198 | 3,330 | –132 |
| Earnings per share (in €)2) | 1.21 | 1.20 | 0.01 |
| Consolidated statement of financial position In € thousand |
31/12/2012 After adjustment |
31/12/2012 Before adjustment |
31/12/2012 Adjustment |
|---|---|---|---|
| Assets | |||
| C. Intangible assets | 1,480,903 | 1,417,725 | 63,179 |
| I. Deferred acquisition costs | 931,981 | 868,802 | 63,179 |
| E. Investments | 17,912,749 | 17,869,686 | 43,064 |
| V. Investments under investment contracts | 43,064 | 0 | 43,064 |
| F. Unit-linked and index-linked life insurance investments | 5,023,764 | 5,066,828 | –43,064 |
| K. Deferred tax assets | 6,673 | 128,608 | –121,936 |
| Total assets | 29,995,797 | 30,054,554 | –58,757 |
| Equity and liabilities | |||
| A. Total equity | 2,034,208 | 2,029,950 | 4,258 |
| I. Shareholders' equity | 2,013,533 | 2,009,299 | 4,233 |
| 3. Revaluation reserve |
309,232 | 315,528 | –6,295 |
| 5. Consolidated profit |
78,258 | 67,729 | 10,529 |
| II. Non-controlling interests | 20,675 | 20,651 | 25 |
| C. Technical provisions | 19,847,540 | 19,790,921 | 56,618 |
| I. Unearned premiums | 629,480 | 617,165 | 12,315 |
| II. Insurance provision | 16,191,990 | 16,158,189 | 33,801 |
| V. Provision for profit-related premium refunds and/or policyholder | |||
| profit participation | 566,721 | 556,218 | 10,503 |
| D. Technical provisions for unit-linked and | |||
| index-linked life insurance | 4,939,966 | 4,983,029 | –43,064 |
| G. Liabilities and other items classified as equity and liabilities | 1,532,338 | 1,479,065 | 53,273 |
| II. Other liabilities | 613,707 | 560,434 | 53,273 |
| I. Deferred tax liabilities | 245,956 | 365,590 | –119,633 |
| Total equity and liabilities | 29,995,797 | 30,054,554 | –58,757 |
| in € thousand | 2014 | 2013 |
|---|---|---|
| Profit/(loss) for the year including share attributable to non-controlling interests | ||
| Profit for the year | 292,877 | 287,858 |
| of which interest and dividend payments | –25,372 | –12,261 |
| Non-controlling interests | –3,014 | –3,198 |
| Change in technical provisions (net) | 1,140,249 | 435,952 |
| Change in deferred acquisition costs | –4,451 | –62,520 |
| Change in direct insurance receivables and liabilities | 19,526 | –105,070 |
| Change in other receivables and liabilities | –110,874 | –116,718 |
| Change in securities at fair value through profit or loss | 59,044 | 231,072 |
| Gain/(loss) on the disposal of investments | –1,347,215 | –181,034 |
| Impairment losses/reversal of impairment losses on other investments | –13,490 | 195,233 |
| Change in pension and termination benefit provision | 24,913 | 20,137 |
| Change in deferred tax assets and liabilities | 156,461 | –42,104 |
| Change in other statement of financial position items | 12,615 | 20,406 |
| Change in goodwill and intangible assets | 52,260 | 14,293 |
| Other non-cash income and expenses as well as adjustments to profit for the year | –95,051 | –66,279 |
| Net cash flows from operating activities | 183,849 | 628,027 |
| of which cash flows from income taxes | –35,141 | –72,844 |
| Proceeds from disposal of consolidated companies | 34,303 | 17,659 |
| Payments for acquisition of consolidated companies | –72,247 | –7,988 |
| Proceeds from disposal and maturity of other investments | 9,614,624 | 5,393,791 |
| Payments for acquisition of other investments | –9,236,185 –6,875,941 | |
| Change in unit-linked and index-linked life insurance investments | –54,039 | –308,847 |
| Net cash flows used in investing activities | 286,457 –1,781,325 | |
| Increase in share capital | 0 | 725,326 |
| Change in treasury shares held | 0 | 0 |
| Dividend payments | –109,342 | –53,357 |
| Proceeds and payments from other financing activities | –1,843 | 141,041 |
| Net cash flows used in financing activities | –111,185 | 813,009 |
| Change in cash and cash equivalents | 359,121 | –340,289 |
| Change in cash and cash equivalents due to movements in exchange rates | –334 | –2,800 |
| Cash and cash equivalents at beginning of the year | 616,976 | 960,065 |
| Cash and cash equivalents at end of period | 975,764 | 616,976 |
| of which cash flow from income taxes | –35,141 | –72,844 |
Cash and cash equivalents correspond to item L. of the assets: Current bank balances and cashin-hand
| Subscribed capital and capital reserves |
Revaluation reserve | Actuarial gains and losses on defined benefit obligations |
|
|---|---|---|---|
| in € thousand At 31/12/2012 |
1,064,594 | 315,528 | –95,260 |
| IAS 8 restatement | 0 | –6,295 | 0 |
| At 1/1/2013 | 1,064,594 | 309,232 | –95,260 |
| Changes due to: | |||
| Increase in capital | 725,326 | ||
| Change in basis of consolidation | |||
| Dividends to shareholders | |||
| Total comprehensive income | –132,099 | –20,821 | |
| Currency translation | |||
| Unrealised gains and losses from measurement under the equity method | |||
| Unrealised gains and losses on investments | –132,099 | ||
| Actuarial gains and losses on defined benefit obligations | –20,821 | ||
| Profit for the year | |||
| Other | |||
| Change in retained earnings | |||
| At 31/12/2013 | 1,789,920 | 177,133 | –116,081 |
| Changes due to: | |||
| Change in basis of consolidation | |||
| Dividends to shareholders | |||
| Total comprehensive income | 233,645 | –27,422 | |
| Currency translation | |||
| Unrealised gains and losses from measurement under the equity method | |||
| Unrealised gains and losses on investments | 233,645 | ||
| Actuarial gains and losses on defined benefit obligations | –27,422 | ||
| Profit for the year | |||
| Other | |||
| Change in retained earnings | |||
| At 31/12/2014 | 1,789,920 | 410,778 | –143,503 |
Consolidated profit at 31 December 2014 corresponds with the separate financial statements of UNIQA Insurance Group AG and reflects the distribution potential of the listed Company. The change in retained earnings is the adjusting item in order to achieve this presentation.
| Total equity |
Non-controlling interests |
Shareholders' equity | Consolidated profit | Treasury shares |
Retained earnings including treasury share provision |
|---|---|---|---|---|---|
| 2,029,950 | 20,651 | 2,009,299 | 67,729 | –10,857 | 667,565 |
| 4,258 | 25 | 4,233 | 10,529 | 0 | 0 |
| 2,034,208 | 20,675 | 2,013,533 | 78,258 | –10,857 | 667,565 |
| 725,326 | 725,326 | ||||
| –8,824 | –168 | –8,656 | –8,656 | ||
| –54,465 | –1,108 | –53,357 | –53,357 | ||
| 88,894 | 2,612 | 86,282 | 284,660 | –45,458 | |
| –31,229 | –31,229 | –31,229 | |||
| –12,689 | 0 | –12,689 | –12,689 | ||
| –132,685 | –132,099 –586 |
0 | |||
| –20,821 | 0 | –20,821 | 0 | ||
| 287,858 | 3,198 | 284,660 | 284,660 | 0 | |
| –1,540 | –1,540 | 0 | –1,540 | ||
| 0 | 0 | –189,610 | 189,610 | ||
| 2,785,139 | 22,012 | 2,763,127 | 119,951 | –10,857 | 803,061 |
| –1,167 | –1,629 | 462 | 462 | ||
| –109,342 | –1,479 | –107,863 | –107,863 | ||
| 427,805 | 1,289 | 426,516 | 289,863 | –69,570 | |
| –64,364 | –64,364 | –64,364 | |||
| –7,445 | –7,445 | –7,445 | |||
| 231,920 | –1,725 | 233,645 | |||
| –27,422 | 0 | –27,422 | 0 | ||
| 292,877 | 3,014 | 289,863 | 289,863 | ||
| 2,238 | 2,238 | 2,238 | |||
| 0 | 0 | –171,379 | 171,379 | ||
| 3,102,434 | 20,193 | 3,082,242 | 130,572 | –10,857 | 905,332 |
UNIQA Insurance Group AG is a company domiciled in Austria. The address of the Company's registered office is Untere Donaustraße 21, 1029 Vienna. The Company's consolidated financial statements for the year ending 31 December 2014 cover UNIQA Insurance Group AG and its subsidiaries (together: the UNIQA Group). The Group primarily conducts business with property, casualty, health and life insurance.
UNIQA Insurance Group AG, as the parent company of the UNIQA Group, is domiciled in Vienna and 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 Vienna Stock Exchange.
The consolidated financial statements were prepared in line with the International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU). The additional requirements of Section 245a paragraph 1 of the Austrian Commercial Code (UGB) were also met. The consolidated financial statements were approved for publication by the Management Board on 25 March 2015.
They are presented in euros, the Company's functional currency. All financial information shown in euros has been rounded to the nearest thousand unless otherwise indicated.
With the exception of the changes described in the section titled "Changes in major accounting policies" (page 103), the Group applied the following accounting policies consistently to all periods presented in these consolidated financial statements.
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. All goodwill arising is tested for impairment annually. Any profit from an acquisition at a price below market value is recognised directly in profit or loss. Transaction costs are recognised as expenses immediately.
The consideration transferred includes no amounts associated with the fulfilment of preexisting relationships. Such amounts are generally recognised in profit or loss.
Any contingent obligation to pay consideration is measured at fair value as of the acquisition date. If the contingent consideration is classified as equity, it is not remeasured, and a settlement is accounted for within equity. Otherwise, later changes in the fair value of the contingent consideration are recognised in profit or loss.
Non-controlling interests are measured as at the acquisition date with their proportionate share in the identifiable net assets of the acquired entity.
Changes in the Group's share in a subsidiary that do not result in a loss of control are recognised directly in equity as equity transactions with non-controlling interests.
Subsidiaries are entities controlled by the Group. The Group controls a company if
The financial statements of subsidiaries are included in the consolidated financial statements from the date control begins until the date control ends.
If the Group loses control of a subsidiary, it derecognises the subsidiary's assets and liabilities and all associated non-controlling interests and other equity components. Any resulting profit or loss is recognised in the profit for the year. Any retained interest in the former subsidiary is measured at fair value as of the date of the loss of control.
Associates are entities over which the Group has significant influence, but not control or joint control, as regards financial and operating policies. This is generally provided once there is a voting share of between 20 and 50 per cent or a comparable crucial influence is guaranteed via other contractual regulations.
Investments in associates are equity-accounted. They are initially recognised at cost, which also includes transaction costs. After the first-time recognition, the consolidated financial statements include the Group's share in the comprehensive income of the financial investments recognised using the equity method until the date the significant influence or joint control ends.
Intragroup balances and transactions and all unrealised income and expenses from intragroup transactions are eliminated in the preparation of the consolidated financial statements.
A discontinued operation is a part of the Group whose operations and cash flows can be clearly distinguished from the rest of the Group and which
An operation is classified as discontinued when it is disposed of or as soon as the criteria for classification as "held for sale" are met, whichever is earlier.
If an operation is classified as a discontinued operation, the consolidated statement of comprehensive income for the comparative year is adjusted so that it were as if the operation had been discontinued from the start of the comparative year.
Non-current assets or disposal groups that include assets and liabilities are classified as held for sale if it is highly probably that they will be realised through sale rather than continued use.
In general, 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 attributed to goodwill and then to the remaining assets and liabilities on a proportional basis – with the exception that no loss is attributed 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 future profit or loss on remeasurement are recognised in the profit for the year.
As soon as they are classified as held for sale, intangible assets and property, plant and equipment are no longer amortised or depreciated and any investees recognised using the equity method are no longer equity-accounted.
Transactions in foreign currencies are translated into the functional currency of the Group entity at the spot exchange rate on the date of the transaction.
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 recognised in profit or loss for the period. Non-monetary items measured at historical cost in a foreign currency are not trans-lated.
For the following items, currency translation differences are recognised in other comprehensive income in deviation from the policy:
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 average rate for the year.
Currency translation differences are reported in other comprehensive income and recognised in the foreign currency translation as a part of the retained earnings in equity if the foreign exchange difference is not attributable to non-controlling interests.
On the disposal of a foreign operation that results in loss of control, joint control or significant influence, the corresponding cumulative amount recognised in the currency translation reserve up to this date is reclassified to profit or loss as part of the result on disposal. In the case of only partial disposal without loss of control over a subsidiary that includes a foreign operation, the corresponding portion of the cumulative exchange difference is attributed to the noncontrolling interests. If the Group partially disposes of an associated or jointly controlled company that includes a foreign operation, but retains significant influence or joint control respectively, the corresponding portion of the cumulative currency translation difference is reclassified to profit or loss.
If the settlement of monetary items in the form of receivables or liabilities from or to a foreign operation is neither planned nor probable in the foreseeable future, the resulting foreign currency gains and losses are considered part of the net investment in the foreign operation. The foreign currency gains and losses are then reported in other comprehensive income and recognised in the currency translation reserve in equity.
| EUR closing rates | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Swiss franc CHF | 1.2024 | 1.2276 |
| Czech koruna CZK | 27.7350 | 27.4270 |
| Hungarian forint HUF | 315.5400 | 297.0400 |
| Croatian kuna HRK | 7.6580 | 7.6265 |
| Polish zloty PLN | 4.2732 | 4.1543 |
| Bosnia and Herzegovina convertible mark BAM | 1.9558 | 1.9558 |
| Romanian leu RON | 4.4828 | 4.4710 |
| Bulgarian lev BGN | 1.9558 | 1.9558 |
| Ukranian hryvnia UAH | 19.1492 | 11.3252 |
| Serbian dinar RSD | 121.3495 | 114.5734 |
| Russian rouble RUB | 72.3370 | 45.3246 |
| Albanian lek ALL | 139.8700 | 140.4900 |
| Macedonian denar MKD | 61.4218 | 61.3938 |
UNIQA Insurance Group AG has applied IFRS 4 published in 2004 for insurance contracts since 1 January 2005. This standard demands that the accounting policies be largely unaltered with regard to the actuarial items.
The IFRSs contain no specific regulations that comprehensively govern the recognition and measurement of insurance and reinsurance policies and investment contracts with a discretionary participation feature. Therefore, 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. For balancing the accounts and evaluation of the insurance-specific entries of life insurance with profit sharing, 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 using suitable assets (cover funds). As is standard in the insurance industry, values dedicated to the cover funds are subject to a limitation as regards availability in the group.
Insurance contracts, i.e. contracts through which significant insurance risk is assumed, and investment contracts with a discretionary participation feature are treated in accordance with IFRS 4, i.e. under application of US GAAP. Investment contracts, i.e. contracts that do not transfer a significant insurance risk and that do not include a discretionary participation feature, fall under the scope of IAS 39 (Financial Instruments).
Assumed reinsurance (indirect business) is recognised as an insurance contract in accordance with IFRS 4.
Ceded reinsurance is also subject to the application of IFRS 4 and is presented in a separate item under assets in accordance with IFRS 4. 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.
Deferred acquisition costs are accounted for in accordance with IFRS 4 in conjunction with US GAAP. 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.
For short-term insurance contracts, such as most property and casualty insurance policies, the 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 amortisation of deferred acquisition costs.
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 the insurance provision.
Insurance provisions are established in the casualty, life and health insurance lines. Their carrying amount is determined based on actuarial principles on the basis of the present value of future benefits to be paid by the insurer less the present value of future net premiums the insurer expects to receive. The insurance provision of the life insurer is calculated by taking into account prudent and contractually agreed calculation principles.
For policies of a mainly investment character (e.g. unit-linked life insurance), the provisions of FAS 97 are used to measure the insurance provision. The insurance provision is arrived at by combining the invested amounts, the change in value of the underlying investments and the withdrawals under the policy. For unit-linked insurance policies in which the policyholder carries the sole risk of the value of the investment rising or falling, the insurance provision is listed as a separate liability entry under "Technical provisions for unit-linked and index-linked life insurance".
The 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 outstanding claims in the property and casualty insurance lines contains the actual and the expected amounts of future financial obligations, including the direct claims settlement expenses appertaining thereto, based on accepted statistical methods. This applies to claims already reported as well as for claims incurred but not yet reported (IBNR). In insurance lines in which past experience does not allow the application of statistical methods, individual loss provisions are set aside.
Life insurance is calculated on an individual loss basis with the exception of the provision for unreported claims.
As for health insurance, the provisions for outstanding claims are estimated on the basis of past experience, taking into consideration the known arrears in claim payments.
The 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 sharing 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 or loss or in the statement of 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 before tax.
This item basically contains the provision for contingent losses for acquired reinsurance portfolios as well as a provision for expected cancellations and premium defaults.
This item relates to the insurance provisions and the 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. As a general rule, the valuation corresponds with the unit-linked and index-linked life insurance investments written at current market values.
Obligations from short-term employee benefits are recognised as expenses as soon as the associated work is performed. A liability must be recognised for the expected amount to be paid if the Group currently has a legal or de facto obligation to pay this amount on the basis of work performed by the employee and the obligation can be reliably estimated.
Obligations for contributions to defined contribution plans are recognised as expenses 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 Group's net obligation with regard to defined benefit plans is calculated separately for each plan by estimating the future benefits that the employees have earned in the current and in earlier periods. This amount is discounted and the fair value of any plan assets is deducted.
The calculation of defined benefit obligations is carried out annually by a qualified actuary using the projected unit credit method. If the calculation results in a potential asset for the Group, 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.
Remeasurements of the net liability from defined benefit plans are recognised directly in other comprehensive income. The remeasurement includes the actuarial gains and losses, the income from plan assets (not including interest) and the effect of any asset ceiling (not including interest). The Group calculates net interest expenses (income) on the net liability (asset) from defined benefit plans for the reporting period by applying the discount rate 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 the 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 in profit or loss.
If a plan's benefits are changed or a plan is curtailed, the resulting change in the benefit relating to past service or the gain or loss on the curtailment is recognised directly in net profit for the year. The Group recognises gains and losses from the settlement of a defined benefit plan at the date of the settlement.
The Group's net obligation with regard to long-term employee benefits comprises the future benefits that the employees have earned in return for work performed in the current and in earlier periods. These benefits are discounted to determine their present value. Remeasurements are recognised in profit or loss in the period in which they arise.
Post-employment benefits are recognised as expenses on the earlier of the following dates: when the Group can no longer withdraw the offer of such benefits or when the Group recognises costs for restructuring. If benefits are not expected to be settled within twelve months of the end of the reporting period, they are discounted.
The fair value on the date share-based payment awards are granted to employees is recognised as expense over the period in which the employees become unconditionally entitled to the awards. The amount recognised as expense is adjusted in order to reflect the number of awards expected to fulfil the corresponding service conditions and non-market performance conditions, so that the expense recognised is ultimately based on the number of awards that fulfil the corresponding service conditions and non-market performance conditions at the end of the vesting period. Changes in measurement assumptions likewise result in an adjustment of the recognised provision amounts through profit or loss.
Tax expense includes actual and deferred tax. Actual tax and deferred tax is recognised in profit or loss, with the exception of any amount associated with a business combination or with an item recognised directly in equity or other comprehensive income.
Actual tax is the expected tax liability or tax receivable on taxable income for the financial year or the tax loss on the basis of interest rates that apply on the reporting date or will soon apply, plus all adjustments of the tax liability relating to previous years. Actual tax liabilities include all tax liabilities resulting from the determination of dividends.
Deferred taxes are recognised with regard to temporary differences between the carrying amounts of assets and liabilities for Group financial accounting purposes and the amounts used for tax purposes. Deferred taxes are not recognised for:
• Temporary differences on the first-time recognition of assets or liabilities in the event of a transaction that is not a business combination and that affects neither net profit before taxes nor taxable income,
A deferred tax asset is recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profit will be available for which they can be used. Deferred tax assets are reviewed on every reporting date and reduced to the extent that it is no longer probable that the associated tax advantage will be realised.
Deferred taxes are measured on the basis of the tax rates expected to be applied to temporary differences as soon as they reverse, and using tax rates that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred taxes reflects the tax consequences arising from the Group's expectation of the manner in which it will recover the carrying amounts of its assets or settle its liabilities on the reporting date. For investment property measured at fair value, the presumption that the carrying amount will be recovered through sale was not rebutted.
Deferred tax assets and debts are netted out if the conditions for a legal claim to offsetting are met and the deferred tax claims and liabilities relate to income tax that is levied by the same tax authority, either for the same taxable item or different taxable items, aimed at achieving a settlement on a net basis.
Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
If parts of an item of property, plant and equipment have different useful lives, they are recognised as separate items (main components) of property, plant and equipment.
Any gain or loss from the disposal of an item of property, plant and equipment is recognised in the net profit for the year.
If the use of a property changes and an owner-occupied property becomes an investment property, the property is reclassified as investment property with the carrying amount as at the date of the change.
Subsequent costs are only capitalised when it is probable that the future economic benefit associated with the expense will flow to the Group. Ongoing repairs and maintenance are recognised as expenses immediately.
The depreciation is calculated in order to write down the costs of property, plant and equipment less their estimated residual values on a straight-line basis over the period of their estimated useful lives. The depreciation is recognised in profit or loss. Land is not depreciated.
The estimated useful lives of significant property, plant and equipment for the current year and comparative years are as follows:
| • Buildings: | 10–80 years |
|---|---|
| • Plant and equipment: | 4–10 years |
| • Fixtures and fittings: | 4–10 years |
Depreciation methods, useful lives and residual values are reviewed on every reporting date and adjusted if necessary.
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 and amortised over the term of the insurance contracts they relate to. If they are attributable to property and casualty insurance, they are amortised over the probable contractual term, with a maximum of five years. In life insurance, the acquisition costs are amortised over the duration of the contract at 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. 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. The changes in deferred acquisition costs are shown as operating expenses.
The goodwill arising in the context of business combinations is measured at cost less accumulated impairment losses. Goodwill arises upon acquisition of subsidiaries and represents the surplus of the consideration transferred for acquisition of the company above the fair value of the Group's share in the identifiable assets acquired, the liabilities assumed, contingent liabilities and all non-controlling shares in the acquired company at the time of the acquisition.
Values of life, property and casualty insurance policies relate to expected future margins from purchased operations and are recognised at the fair value at the acquisition date.
With regard to life insurance business acquired, the amortisation of the current value follows the progression of the estimated gross margins.
Other intangible assets include both purchased and internally-developed software, which is depreciated on a straight-line basis over its useful economic life of 2 to 5 years.
Land and buildings, including buildings on third-party land, held as long-term investments to generate rental income and/or for the purpose of capital appreciation are measured at cost when they are acquired. Subsequent measurement follows the cost model in accordance with IAS 40.56.
The Group classifies non-derivative financial assets to the following categories: Financial assets measured at fair value through profit or loss, loans and receivables, and financial assets available for sale.
The Group categorises non-derivative financial liabilities as other financial liabilities.
With the exception of the mortgages and other loans, investments are listed at the current fair value, which is established by determining a market value or stock market price. In the case of investments for which no market value can be determined, the fair value is determined through internal valuation models or on the basis of estimates of what amounts could be achieved under current market conditions in event of proper liquidation.
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 the income statement.
Structured products are not split between the underlying transaction and derivative, but are accounted for as a unit. All the structured products can therefore be found in the "Financial instruments at fair value through profit or loss" item of the statement of financial position. Unrealised profits and losses are recognised in the income statement. In accordance with IAS 39 (11A), ABS bonds, structured bonds, hedge funds and a special annuity fund with a high share of derivatives are also recognised under the items for securities at fair value through profit or loss.
These investments concern life insurance contracts whose value or profit is determined by investments for which the policyholder carries the risk, i.e. the unit-linked or index-linked life insurance contracts. The investments in question are collected in asset pools, recognised at their current market value and kept separately from the remaining investments of the Company. The policyholders are entitled to all income from these investments. The amount of the recognised investments strictly corresponds to the insurance provisions (before reinsurance business ceded) for life insurance, to the extent that the investment risk is borne by the policyholders. The unrealised profits and losses from fluctuations in the current values of the investment pools are thus offset by the appropriate changes in these provisions.
The Group recognises loans, receivables and issued debt securities from the date on which they arise. All other financial assets and liabilities are recognised for the first time on the trade date. The Group derecognises a financial asset when the contractual rights to cash flows from an asset expire or it transfers 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. Derecognition also occurs when the Group neither transfers nor retains all major risks and opportunities connected with ownership and does not retain control over the transferred asset. Every share in such transferred financial assets that arise or remain in the Group is recognised as a separate asset or separate liability.
Financial liabilities are derecognised when the contractual obligation is fulfilled, extinguished or expired.
Financial assets and liabilities are set off and recognised in net amounts in the statement of financial position if the Group has a legal right to set off the reported amounts against each other and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
When first recognised, such assets are measured at their fair value plus directly attributable transaction costs. Subsequently, they are measured at amortised cost using the effective interest method.
In the consolidated cash flow statement, cash and cash equivalents includes bank balances available upon demand, which are a central component of the management of the Group's payment transactions.
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 and corresponding value changes are, with the exception of impairment and foreign exchange differences in the case of available-for-sale debt securities, recognised in other comprehensive income and in the revaluation reserve in equity. When an asset is derecognised, the accumulated other comprehensive income is reclassified to profit or loss.
When first recognised, non-derivative financial liabilities are measured at fair value less directly attributable transaction costs. Subsequently, these financial liabilities are measured at amortised cost using the effective interest method.
Financial assets not designated as at fair value through profit or loss, including interests in entities accounted for using the equity method, are tested on every reporting date to determine whether there is any objective indication of impairment.
Objective indications that financial assets are impaired are:
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. The Group considers a decline of 20 per cent as significant and a period of nine months as prolonged.
The Group considers indications of impairment for these financial assets both at the level of the individual assets and collectively. All assets significant in themselves are tested for specific impairment. Those that prove not to be specifically impaired are then collectively tested for impairment that has occurred but not yet been identified. Assets not significant in themselves are collectively tested for impairment by pooling assets with similar risk characteristics in one group.
When testing for collective impairment, the Group uses historical information on the timing of payments and the value of the incurred losses, adjusted by a judgement on the part of the Management Board on whether the current economic conditions and credit conditions are such that the actual losses are probably higher or lower than the losses to be expected on the basis of historical trends.
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 or loss. If the Group has no realistic hope of recovering the asset, the amounts are written off. If an event occurring after the recognition of impairment reduces the level of impairment, the reduction is recognised in profit or loss.
Impairment of available-for-sale financial assets is recognised by reclassifying the losses accumulated in the revaluation reserve accumulated in equity to profit or loss. The accumulated loss that is reclassified from equity to profit or loss is the difference between the acquisition cost, net of any redemptions, 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. In other cases, impairment reversal is recognised in other comprehensive income.
An impairment loss relating to an associate accounted for using the equity method is measured by comparing the recoverable amount of the shares with their carrying amount. An impairment loss is recognised in profit or loss. An impairment loss is reversed in the event of an advantageous change in the estimates used to determine the recoverable amount.
The carrying amounts of the Group's non-financial assets – excluding inventories and deferred tax assets – are tested on 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 with indefinite useful lives are tested for impairment annually.
In order to test for impairment, assets are grouped into the smallest groups of assets whose continued use generates cash flows that are to the greatest possible extent independent of cash flows from other assets or cash-generating units (CGUs). Goodwill acquired in a business combination is allocated to the CGUs or groups of CGUs expected to benefit from the synergies of the combination.
The recoverable amount of an asset or a CGU is the higher of its value in use or its fair value less costs to sell. When calculating value in use, the estimated future cash flows are discounted to their present value, whereby a pre-tax discount rate is used that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.
An impairment loss is recognised when the carrying amount of an asset or a CGU exceeds it recoverable amount.
Impairment losses are recognised in profit or loss. Impairment recognised for CGUs is first allocated to any goodwill allocated to the CGU and then allocated to the carrying amount of the other assets of the CGU (group of CGUs) on a proportional basis.
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.
The level of the provisions is calculated by discounting the expected future cash flows at a pretax interest rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost.
A range of Group accounting policies and disclosures require the determination of the fair value of financial and non-financial assets and liabilities. The Group 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 Management Board.
The measurement team carries out a regular review of the major unobservable input factors 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 measurement team examines the evidence obtained from the third parties for the conclusion that such measurements meet the requirements of IFRS, 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, the Group uses data that are observable on the market when determining the fair value of an asset or a liability. On the basis of the input factors used in the valuation techniques, the fair values are assigned to different levels in the fair value hierarchy:
If the input factors 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 level of the fair value hierarchy that corresponds to the lowest input factor significant for the measurement overall.
The Group recognises reclassifications between different levels of the fair value hierarchy at the end of the reporting period in which the change occurred.
Further information on the assumptions used in the determination of fair values is included in the following notes:
The Management Board of the UNIQA Insurance Group controls the Group based on the reporting for the following five operating segments:
Central Europe (CE Czech Republic, Hungary, Poland and Slovakia)
Eastern Europe (EE Romania and Ukraine)
• Reinsurance – includes UNIQA Re (Switzerland) and the reinsurance company of UNIQA Insurance Group AG
• Group functions and consolidation – this segment includes the remaining items for UNIQA Insurance Group AG (investment result and administrative costs) as well as all other remaining Austrian and foreign service companies.
With the exception of the following changes, the Group applied the accounting policies outlined consistently to all periods presented in these consolidated financial statements.
The Group applied the following new standards and amendments to standards, including all of the following amendments to other standards, with these first being applied as of 1 January 2014.
| IFRS | 10 | Consolidated Financial Statements |
|---|---|---|
| IFRS | 11 | Joint Arrangements |
| IFRS | 10-12 | Transition Guidance - Amendment to IFRS 10-12 |
| IFRS | 10, 12 | Investment Entities - Amendment to IFRS 10, 12 and IAS 27 |
| IFRS | 12 | Disclosures of Interests in Other Entities |
| IAS | 27 | Separate Financial Statements (2011) |
| IAS | 28 | Investments in Associates and Joint Ventures (2011) |
| IAS | 32 | Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32 |
| IAS | 39 | Novation of Derivatives and Continuation of Hedge Accounting (Amendment) |
| IFRIC | 21 | Levies |
Application of these new mandatory IFRSs has the following impact on the financial statements:
IFRS 10 "Consolidated financial statements" is based on the existing definition of control in terms of controlling subsidiaries to determine whether a company is to be included in the parent company's consolidated financial statements. The standard includes a series of additional features and application guidelines in complex cases in order to determine whether there is control.
The Group's basis of consolidation has not changed even under the new control model.
In the assessment as to whether there is joint management, IFRS 11 "Joint Arrangements" focuses on the parties' actual rights and obligations in relation to the entities involved. IFRS 11 makes a distinction between two types of joint arrangements: joint operations and joint ventures. Joint operations are provided if the shareholders acquire rights to the assets and obligations for the liabilities under the joint arrangement. A shareholder accounts for their share in the assets, liabilities, sales revenues and expenses managed jointly. In contrast, joint ventures are provided if the shareholder has rights to the net assets in the joint arrangement. Joint ventures are accounted for at equity
The Group does not currently have any joint arrangements to which IFRS 11 applies.
IFRS 12 "Disclosure of Interests in Other Entities" consolidates the revised disclosure obligations related to IAS 27, IFRS 10, IAS 31 and/or IFRS 11 and IAS 28 into one standard, including structured entities and other off-balance-sheet constructions.
Additional disclosures have been made based on the new application of IFRS 12 "Disclosure of Interests in Other Entities", essentially for associates (Table 7).
Any other new mandatory IFRSs were either inapplicable for the Group or had no material impact on it.
A series of new standards, amendments to standards and interpretations were due to be applied for the first time in the first reporting period of a financial year starting after 1 January 2014 and were not applied in preparing these consolidated financial statements. Those which could be relevant for the Group are outlined below. The Group does not intend to early apply these standards.
| IFRS | 9 | Financial Instruments | not yet adopted by the EU |
|---|---|---|---|
| IFRS | 14 | Regulatory Deferral Accounts | not yet adopted by the EU |
| IFRS | 15 | Revenue Recognition | not yet adopted by the EU |
IFRS 9 "Financial Instruments" is deals with the classification, recognition and measurement of financial assets and financial liabilities. The full version of IFRS 9 was published in July 2014. This standard replaces the regulations of those sections of the existing IAS 39 that address the classification and measurement of financial instruments. IFRS 9 adheres to a mixed measurement model, but it simplifies this and sets out three principal measurement categories for financial assets: measurement at amortised cost, measurement at fair value with value fluctuations recognised in profit and loss (fair value through profit and loss) and measurement at fair value with value fluctuations recognised in other comprehensive income (fair value through OCI). The classification depends directly on the company's business model as well as on the features of the contractually agreed payment flows for the financial assets. Shares of equity instruments must be measured at fair value, with fluctuations in fair value recognised in profit and loss, or with fluctuations in fair value recognised in other comprehensive income if the company irrevocably opts to do so upon first-time recognition of the equity instruments (with no subsequent reclassification in net profit for the year). There is also a new measurement model for impairments based on expected losses (expected credit losses model) which replaces the existing measurement model of actual losses incurred that was used in IAS 39 (incurred loss model). With financial liabilities there are no changes in the classification and measurement, with the exception of mandatory reporting of own creditworthiness risk in other comprehensive income for financial liabilities designated at fair value and recognised in profit and loss. IFRS 9 eases the requirements in relation to hedging effectiveness by removing the previous narrow limits of hedging effectiveness. There is now a requirement for an economic relationship between the underlying transaction and the hedging instrument, and also that the hedged part (hedged ratio) corresponds with the assumptions and conditions with which the Company manages the items as part of its risk management activities. Furthermore, hedging documentation must be prepared as currently prescribed, whereby it will differ from the documentation required under IAS 39. The standard applies to reporting periods beginning on or after 1 January 2018. Earlier application is permitted. The Group is currently ascertaining the impact of IFRS 9.
IFRS 15 "Revenue from Contracts with Customers" governs revenue recognition and sets out the basic principles for reporting of meaningful information on the type, amount, recognition date and uncertainties regarding revenues and payment flows from contracts with customers. Sales revenues are recorded if a customer has control over a delivered item or a service provided and has the ability to enjoy these goods and services and derive benefits from them. The standard replaces IAS 18 "Revenue" and IAS 11 "Construction Contracts" and the associated interpretations. The standard applies to reporting periods beginning on or after 1 January 2017. The Group is currently ascertaining the impact of IFRS 15.
There are no other standards or IFRIC interpretations that will have a material impact on UNIQA's consolidated financial statements from a current perspective.
The consolidated financial statements require the 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.
The items below carry a not insignificant level of risk that significant adjustments to assets or liabilities may be necessary in the following year:
Sensitivity analyses are shown in the Risk report in relation to the most significant uncertainties surrounding estimates.
In addition to the annual financial statement of UNIQA Insurance Group AG, the consolidated financial statements include the financial statements of all subsidiaries in Austria and abroad. In addition to UNIQA Insurance Group AG, the basis of consolidation included52 Austrian and 70 foreign subsidiaries. Page 203 shows a complete list of the subsidiaries and associates.
The associates relate to eight domestic and one foreign company that were included in the consolidated financial statements using equity method accounting.
In applying IAS 39, fully controlled investment funds were included in the consolidation, insofar as their fund volumes were not of minor importance when viewed separately and as a whole.
The group of consolidated companies was expanded with the following companies in the reporting period as a result of the acquisition of the insurance companies of the Baloise Group in Croatia and Serbia.
| in € thousand | Date of first-time inclusion |
Acquired shares (in per cent) |
Costs | Goodwill |
|---|---|---|---|---|
| Basler osiguranje Zagreb d.d. | 31/03/2014 | 100.0 | 67,000 | 15,733 |
| Neživotno osiguranje Basler a.d.o | 31/03/2014 | 100.0 | 5,000 | 199 |
| Životno osiguranje Basler a.d.o | 31/03/2014 | 100.0 | 3,000 | 340 |
| Poliklinika Medico | 31/03/2014 | 100.0 | 0 | 0 |
| Sedmi element d.o.o. | 31/03/2014 | 100.0 | 3 | 405 |
| Deveti element d.o.o. | 31/03/2014 | 100.0 | 152 | 53 |
UNIQA is consolidating its market position in the Southeastern Europe region (SEE) with the acquisition and integration of these companies,
Basler osiguranje Zagreb d.d. was merged with UNIQA osiguranje d.d. in the third quarter of 2014. In the fourth quarter, the Serbian companies Neživotno osiguranje Basler a.d.o were merged with UNIQA neživotno osiguranje a.d. and Životno osiguranje Basler a.d.o with UNIQA životno osiguranje a.d. In Italy, UNIQA Protezione S.p.A. was merged with UNIQA Assicurazioni S.p.A. effective retrospectively as of 1 January 2014. The initial consolidation of the Baloise Group in Croatia and Serbia which took place on 31 March 2014 was based on preliminary figures and was adjusted as at 31 December 2014 to reflect the final valuation of the incorporated assets and liabilities. The adjustment reflecting the final valuation mainly pertained to the items goodwill, the insurance contract portfolio, deferred acquisition costs and deferred taxes.
The sale of UNIQA Lebensversicherung AG, Vaduz, was decided in the fourth quarter of 2014. Until this transaction has been completed (expected completion in first half of 2015) the assets and liabilities for this company will be stated as separate items in the statement of financial position: see No. 8 of the notes to the consolidated financial statements for details.
The changes to the basis of consolidation stated above all relate to the UNIQA International segment.
Following the mergers in Croatia and Serbia described above, separate disclosure of the revenues and profits or losses of the acquired companies that are included in the consolidated statement of comprehensive income is no longer possible. The premiums earned along with the profit/(loss) on ordinary activities for Croatia and Serbia as a whole can be seen in the breakdown of the UNIQA International segment by region.
We have set ourselves ambitious goals in connection with our corporate strategy UNIQA 2.0. In summary, we are working towards sustainable and profitable growth. We are taking the initiative, optimising processes and building on innovations. We are doing this in order keep the promises we made to our customers, our shareholders and our employees. In addition, we make sure we have a business strategy that knows the right answer to all of our Company's risks. The Management Board has therefore adopted a risk strategy borne by four principles:
With these four principles, we will move confidently into the future and maintain a financial strength that allows us to achieve our corporate goals, keep our promises and fulfil our obligations even in turbulent times.
Our core business is to relieve our customers of risk, pool the risk to reduce it, and thereby generate profit for our Company. At the heart of this business is an understanding of risks and their specific attributes.
In order to ensure that we keep our focus on risk, we have created a separate risk function in the Group's Management Board with a Group Chief Risk Officer and made the function of Chief Risk Officer a part of the Management Board in our regional companies. This ensures that decision-making is risk-based in all relevant bodies. We have established processes that allow us to identify, analyse and manage risks. Our business involves a large range of different risk types, so we employ specialists to identify and manage them.
We regularly validate our risk profile at all levels of the hierarchy and hold discussions in specially instituted committees with the members of the Management Board. We draw on internal and external sources to obtain a complete picture of our risk position. We regularly check for new threats both in the Group and in our subsidiaries.
We take risks and do so in full knowledge of our risk-bearing capacity. We define risk-bearing capacity as our ability to absorb potential losses from extreme events so that our medium- and long-term objectives are not put in danger.
Our risk decisions centre on our economic capital model (ECM), which we use to quantify risk and determine economic capital. The ECM is based on the standard model according to Solvency II and also reflects our own risk assessment. This is expressed in the quantification of the risks from the non-life sectors, in which we focus on a stochastic cash flow model, additional capital requirements of government bonds and a mark-to-market valuation of asset-backed securities. Based on this model, we are aiming in the medium term for risk capital cover (capital ratio) of 150–160 per cent in 2015. In the medium term, the capital ratio should be at least 170 per cent.
We also seek external confirmation of the path we have chosen. Standard & Poor´s has given us a credit rating of A–. One of our key objectives is to maintain the rating at least at this level and to improve it over the long term as the corporate strategy is implemented.
Non-quantifiable risks, in particular operational risk, litigation risk and strategic risk are identified as part of the risk assessment process and then assessed using scenario-based techniques. This assessment is then used as the basis for implementing any necessary risk mitigation measures.
Our risk strategy specifies the risks we intend to assume and those we plan to avoid. As part of our strategy process, we define our risk appetite on the basis of our risk-bearing capacity. This risk appetite is then used to determine tolerances and operational limits, which provide us with an early warning system sufficient for us to initiate prompt corrective action should we deviate from our targets. We also consider risks outside our defined appetite. We counter risks that fall into this category, such as reputational risk, with proactive measures, transparency and careful assessment.
We focus on risks that we understand and can actively manage. We divest ourselves of any investments in which the business principles are inconsistent with our core business. We consciously take on risk associated with life, health and non-life underwriting in order to consistently generate our income from our core business. We aim for a balanced mix of risk to achieve the greatest possible effect from diversification.
We analyse our income and the underlying risk, optimizing our portfolio using value-based principles. We therefore strive for a balance between risk and return.
Risk also means opportunity. We regularly analyse trends, risks and phenomena that influence our society and thus our customers and ourselves. We involve our employees in the whole of the business to identify 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 the strategic goals of the UNIQA Group and its subsidiaries.
The UNIQA Group's Risk Management Guidelines form the basis for a uniform standard at various company levels. The guidelines are approved by the Group CRO and the full Management Board and describe the minimum requirements in terms of organisational structure and process structure. They also provide a framework for all risk management processes for the most important risk categories.
In addition to the Group Risk Management Guidelines, similar guidelines have also been prepared and approved for the Company's subsidiaries. The Risk Management Guidelines at subsidiary level were approved by the Management Board of the UNIQA subsidiaries and are consistent with the UNIQA Group Risk Management Guidelines.
They aim to ensure that risks relevant to the UNIQA Group are identified in advance and evaluated. If necessary, proactive measures are introduced to transfer or minimise the risk.
Intensive training on the content and utilisation of these guidelines is required in order to ensure that risk management is incorporated in everyday business activities. Very extensive informative and training measures have therefore been taken since 2012; they will be continued in the future and extended to additional target groups.
The detailed set-up of the process and organisational structure of risk management is set out in the UNIQA Group's Risk Management Guidelines. These 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 managerial accounting and financial control, 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).
• Prepares and monitors risk-bearing capacity and risk limits and the "value-creating units" in the Group • Defi nes capital allocation and sets coherent limits • Approves the model change (capital model, partial models)
| • Defi nes the UNIQA risk management process |
|---|
| • Conducts the uniform risk management process |
| • Coordinates the calculation of solvency capital requirements and |
| minimum capital requirements |
| • Defi nes minimum standards for all risk management processes |
| • Ensures the eff ective and timely reporting of risk management |
| information |
| • Prepares and monitors risk limits for the company |
1) Beginning 1 January 2015 in an interlocking directorate together with the CFO
Operating Companies (CRO, RM)
accordance with Group standards
• Prepares and monitors risk limits
eff ective and timely reporting
The UNIQA Group Management Board is responsible for establishing the business policy objectives and determining the associated risk strategy. The core components of the risk management system and the associated governance are embedded in the UNIQA Group Risk Management Policy adopted by the Management Board.
The function of Chief Risk Officer (CRO) is a separate area of responsibility at the Group Management Board level. This ensures that risk management is represented on the Management Board. The CRO is supported in the implementation and fulfilment of risk management duties by the following units: Group Risk Management, Group Actuarial and Group Financial Risk Management. During the course of 2015, refinements in the organisational structure will lead to a merger of these units so that the Company can progress as efficiently as possible in the final implementation phase of Solvency II.
A central component of the risk management organisation is the risk management committee for the UNIQA Group. This committee carries out monitoring and initiates appropriate action in relation to the current development as well as the short- and long-term management of the risk profile. The risk management committee establishes the risk strategy, monitors and controls compliance with risk-bearing capacity and limits, and therefore plays a central role in the management process implemented under the UNIQA Group's risk management system.
In the operative insurance companies, the CRO function has also been established at the Management Board level, with the functions of the risk manager at the next level down. A consistent, uniform risk management system has therefore been set up throughout the Group.
As at Group level, each of the operative insurance companies has its own risk management committee, which forms a central element of the risk management organisation. This committee is responsible for the management of the risk profile and the associated specification and monitoring of risk-bearing capacity and limits.
At its meetings, the Supervisory Board of the UNIQA Group receives comprehensive risk reports.
The UNIQA Group'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 risk categories:
A Group-wide, standardised risk management process regularly identifies, evaluates and reports on risks to the UNIQA Group and its subsidiaries within these risk categories.
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 risk categories, subsidiaries, processes and systems are included.
The risk categories of market risk, actuarial risk, counterparty default risk and concentration risk are evaluated in the UNIQA Group framework by means of a quantitative method based on the standard approach of Solvency II and the ECM approach (economic capital model) approach. 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 ORSA).
All other risk categories are evaluated quantitatively or qualitatively with their own risk scenarios.
One essential element of the risk management process is the derivation and development of risk scenarios based on the economic, internal and external risk situation of the UNIQA Group.
A scenario is a possible internal or external event that has a short-term or medium-term effect on consolidated profit or loss, the solvency position or sustainability. The scenario is formulated with respect to its inherent characteristic (e.g. the start of Greece's insolvency) and evaluated in terms of its financial effect on the UNIQA Group. The likelihood that the scenario will actually occur is also considered.
The limit and early warning system determines risk-bearing capacity (available equity according to IFRS, financial equity) and capital requirements on the basis of the risk situation at ongoing intervals, thereby deriving the level of coverage. If critical coverage thresholds are reached, then a precisely defined process is set in motion, the aim of which is to bring the level of solvency coverage back to a non-critical level.
A risk report is prepared twice a year for each operational company and for the UNIQA Group on the basis of detailed risk analysis and monitoring. The risk report for each individual UNIQA subsidiary and the UNIQA Group itself has the same structure, providing an overview of major risk indicators such as risk-bearing capacity, solvency requirements and risk profile. A reporting form is also available for the UNIQA Group and all subsidiaries, which provides the management with a monthly update regarding the most significant risks.
Based on external and internal developments, activities in 2014 focused on the following:
Solvency II is an EU-wide project, the objective of which is to achieve a fundamental reform of solvency regulations (capital requirements) for insurance companies. The existing static system for determining capital requirements is to be superseded by a risk-based system. One of the main changes in the new system is that it is to take greater account of qualitative elements such as internal risk management.
Following publication of the preparation guidelines by the European Insurance and Occupational Pensions Authority (EIOPA) in October 2013 and the implementation of these guidelines in the Austrian Insurance Supervision Act (VAG) of June 2014, there is now clarity regarding the necessary preparation work required before Solvency II comes into force on 1 January 2016. The following topics are addressed in the preparation guidelines:
1) "System of governance" (EIOPA-CP-13/008),
2) "Forward-looking assessment of the undertaking's own risks (based on the own risk and solvency assessment (ORSA) principles" (EIOPA-CP-13/009), 3) "Submission of information to national competent authorities" (EIOPA-CP-13/010), 4) "Pre-application for internal models" (EIOPA-CP-13/011)
In 2014, further specific preparatory steps were taken both in the UNIQA Group and in the operating units based on this information. The steps primarily consisted of modifications to the governance structure to satisfy the requirements for key functions under Solvency II, the preparation of an initial ORSA report (Own Risk and Solvency Assessment), which was submitted for information to the Supervisory Board in November 2014, and the preparation of the infrastructure to meet future reporting requirements. A significant portion of the preparatory work was also accounted for by the activities related to the partial internal model in connection with the actuarial risk arising from property/casualty insurance.
In addition, a comprehensive training programme for senior managers, other managers, and employees in key functions is a core component of a fully functioning Group-wide risk management framework. Understanding of the objectives and the impact of the risk management approach in the context of value-based management should be achieved. A great deal of importance is also attached to training the Supervisory Board of the UNIQA Group so that the members of the Supervisory Board are well informed about the ongoing developments in the management approach (economic management) and can take these developments into account with respect to their supervisory activities.
In both cases, the discussion about the use of the information from the risk capital models, in particular from the partial internal model relating to property/casualty insurance, is a relevant point, allowing users to make the connection between this information and the ongoing business.
In 2014, further development work was carried out on the ALM processes and associated governance developed over the last few years. The priority was on stabilising the processes that have been introduced and on implementing a project to gradually reduce the AL mismatch, especially in life insurance.
The option of running a regular/year-round procedure to draw up the risk profile and associated limits represents a key element of the ALM process in the UNIQA Group. Management is carried out on the basis of risk capital consumption and associated limits, which enables the Group to make strategic decisions on the basis of a value-based risk/return analysis.
In 2014, the Group focused not only on the necessary standard processes but also on scenario analyses, especially the possible changes in the liabilities profile depending on different interest rate situations. In this case, the analysis of the life insurance business plays a central role because it is difficult to predict a change in the lapse or surrender pattern for customer policies in response to a specific trend in interest rates. Associated risks were analysed and action implemented to cushion these risks.
The period of low interest rates continued throughout 2014, with rates falling to historically low levels in some cases. This situation has a particularly marked effect in life insurance. Depending on the investment strategy, the persistently low interest rates can lead to a situation in which the income generated is insufficient to finance the guarantees made to policyholders. The topic of low interest rates continues to be of concern to the entire European insurance industry and is leading to intensive discussions about how insurance companies can ensure that customer options and guarantees (in both existing and new business) are financed over the long term. Significant measures taken by the UNIQA Group within the defined life strategy have been to focus on implementing the ALM approach including stringent management rules (e.g. regarding the management of profit sharing) and to provide continuous portfolio management to support the new business strategy in the personal injury insurance business.
One specific issue is the question of requirements (which vary from country to country) to recognise supplementary discount rate provisions, i.e. requirements to set aside special provisions in the respective local accounting if interest rates are low. As at 31 December 2014, UNIQA had set aside a provision in the amount of €34.1 million in its Austrian companies because there is a statutory requirement in Austria to recognise this special provision. As the supplementary discount rate provision is to be built up over a period of 10 years in Austria, corresponding expenses are to be expected (in local accounting) over the coming years. This special provision in the local accounting is to be seen alongside the liability adequacy test (LAT) to check whether the provisions in the IFRS financial statements are adequate. Depending on the interest rate situation and the resulting planning of investment income, there is the fundamental risk in the future of a potential provision requirement as a consequence of the LAT.
With regard to the insurance market in CEE countries, the expected economic situation in the Eastern European markets poses a certain challenge to the Group to achieve disproportionately high growth in the short term and compared to the Western European insurance markets. For example, the Group was unable to record any premium growth in this region in 2014. The premium volume for the entire region contracted, mainly in the life insurance business, although this also continued to be attributable to a sharp drop in single premium business in Poland and a deliberate reduction in the volume of motor vehicle insurance in selected markets. Given this disappointing trend in the past year, expectations of higher premium revenue in 2015 remain moderate.
The continued political uncertainty in Ukraine caused by the separatist movement in the east of the country raises questions about whether the country will be able to go on servicing some of its borrowing. As at 31 December 2014, the UNIQA Group's portfolio of Ukrainian government bonds came to a nominal value of €34.1 million and a fair value of €25.2 million. Of these, a nominal value of €30.1 million are invested in the Ukrainian subsidiary.
The Ukrainian currency, the hryvnia (UAH), weakened by approximately 41 per cent against the euro during the course of 2014 (exchange rate as at 31 December 2014: 0.0523; as at 31 December 2013: 0.088). The total value of all the UAH securities in the UNIQA Group amounts to a fair value of €4.0 million.
Together with the fall in the price of oil in December 2014, the EU sanctions imposed on Russia caused an immediate and sharp drop in the value of the rouble against the euro (exchange rate as at 31 December 2014: 0.0142, as at 31 December 2013: 0.0221). In turn, this led to a volatile interest rate environment and the devaluation of government bonds. The total value of all the RUB securities in the UNIQA Group amounts to a fair value of €47.9 million, of which €37.7 million are invested in the Russian subsidiary. The nominal value of Russian government bonds in the UNIQA Group's portfolio amounts to €123.0 million (of which €55.7 million in the Russian subsidiary), with a fair value of €102.3 million.
In terms of actuarial risk, the further development of the motor business in CEE countries (comprehensive vehicle insurance, including liability insurance) continues to represent the greatest challenge because this business segment accounts for a considerable proportion of the property/casualty insurance in the CEE region. The most significant difficulties are, firstly, that there is a continuously changing legal environment leading to higher benefit payments in the event of personal injury claims and, secondly, that many markets are still subject to a price war as companies vie to win customer segments. UNIQA increasingly relies on a professional pricing approach. In addition to conducting ongoing market analyses, the Group carries out standardised profitability tests to ensure that pricing is appropriate. In addition, guidelines are intended to ensure that international insurance claims (known as green card claims) are settled within UNIQA affiliated companies or in conjunction with specified partners.
After the Solvency II Directive (Directive 2009/138/EC) has been implemented into Austrian law with the Insurance Supervision Act 2016, which is a complete revision of the existing Austrian legislation, new versions of all existing regulations will also be enacted. One of the main challenges in 2015 will be to provide detailed support for this process. The new Insurance Supervision Act was published in the Austrian Federal Gazette on 20 February 2015 and will come into force on 1 January 2016.
The preparatory work in connection with Solvency II is closely associated with the Insurance Supervision Act 2016. In addition to the new reporting obligations, the biggest challenge in this preparatory work is the project being undertaken by the UNIQA Group to promptly apply for a partial internal model relating to property/casualty insurance. This project is subject to a very narrow timeframe because of the late publication of the regulatory requirements. Sufficient resources must therefore be dedicated to the project to enable the Group to submit an approval application in a timely manner.
As regards operational risk, there is a need for some capital investment in the renewal of IT infrastructure and systems. In the short- and medium terms, the Group is faced in numerous instances with a switch between generations of technologies to enable it to maintain the proper operation of the business and respond to changing customer and market expectations.
A strategic question for 2015 is how to proceed with the handling of the changing circumstances in CEE countries in relation to associated partners. In February 2015, UNIQA's key partner in international banking sales (Raiffeisen Bank International) announced its intention to withdraw from the Polish and Slovenian markets. Even though the impact is immaterial because the business involved represents a small proportion of the Group's overall business, there remains the issue of the subsequent strategic direction of bank sales in these markets. Another ongoing challenge is the question of reputational risk. This is the risk of an unexpected adverse change in enterprise value caused by damage to UNIQA's reputation. The identification of reputational risk is an important part of the risk management process. These risks are discussed in the quarterly committee meetings and the Management Board initiates appropriate corrective action. A risk assessment in accordance with a risk map, i.e. a presentation of the key risks faced by the UNIQA Group across all risk classes, is also presented for information purposes to the Supervisory Board.
As in the past year, further preparatory work relating to Solvency II will continue to have a very high priority in 2015. In accordance with the transition guidelines that have been put in place (section 130c of the Insurance Supervision Act), the Group will have to meet a range of firsttime reporting obligations to the supervisory authorities in 2015. Quantitative information in connection with the solvency calculation and also qualitative information, particularly in relation to governance requirements, must be prepared at Group level by mid-July 2015. In addition, we will continue to expand our partial internal model as part of the advance approval process and adapt processes and models in line with the evolving Solvency II standards. The forwardlooking own risk and solvency assessment (ORSA) also forms a core component of the preparation for Solvency II. Whereas the ORSA requirements in 2014 were focused on the assessment of the overall solvency requirement, further elements will be added in 2015 to facilitate the presentation of a complete picture of the risk assessment: Firstly, an in-depth analysis of the extent to which the solvency requirements and technical provisions are satisfied on an ongoing basis; secondly, a review to establish whether the calculation used for the solvency capital requirement appropriately reflects the risk profile of the Company.
Further developments at UNIQA in connection with value-based management are also closely linked to the implementation of Solvency II. In the future, capital management and also the planning of estimated income will be extensively based on the risk capital position in the Group, the individual operating units and their areas of business. We have set ourselves the objective of achieving a transparent presentation of our approach to capital, the most significant risks and related stress, the associated target returns and an appropriate dividend policy. From the starting point of a defined risk-bearing capacity, the target returns are to be selected such that the return on risk capital permanently exceeds the cost of capital, ensuring ongoing dividend payments, while at the same time not jeopardising risk-bearing capacity.
A further priority for 2015 is to continue the strategic programmes relating to cost management, the further development of the life insurance strategy, including portfolio management (in-force management), capital investment from an ALM perspective and the associated internal processes. The use of the latest standards in underwriting the risk in the property and casualty insurance business, primarily in connection with international insurance claims (green card insurance), is another area of focus. All programmes are to make a contribution to enable the Group to achieve the planned profits in 2015 and sustain this level in the years ahead. Particularly in this period of low interest rates and significant volatility in capital markets, the successful implementation of projects that stabilise or improve net profit in the core operating business is central to our activities.
In life insurance, another important milestone was achieved in the area of new product design in December 2014. At UNIQA Österreich and Raiffeisen Versicherung AG, the lowering of the maximum permissible discount rate (as of 1 January 2015 to 1.50 per cent) was used to completely revise the products in the classic life insurance line, and give them a new title: "New Classic". The "New Classic" will give customers a 100 per cent capital guarantee on net premiums, high repurchase values from the beginning, along with the possibility of making variable additional payments and withdrawals during the term. In addition, costs and fees are spread out proportionally over the entire term and no longer taken from the premium but rather from the profit. The entire premium amount (excl. insurance tax) thus flows directly into the investment, resulting in a considerably higher savings premium from the beginning than is offered by conventional life insurance. This means the product offers customers much more transparency and flexibility.
From the Company's point of view, this product concept has the advantage that, among other things, the discount rate is set at 0 per cent, which leads, in particular on longer terms, to a reduction of the guarantee requirement. In addition, this new product concept also meets the future legal requirements concerning transparency and capital adequacy. The sales success in the first three months after the launch of this product are impressive proof that the concept has been understood and accepted by both customers and the sales people. The successful positioning of the product on the Austrian market and the transfer of the ideas on which it is based into other markets are a priority for 2015 – at the same time offering the opportunity to make life insurance future-oriented.
On the basis of the current regulatory requirements, available own funds and the risk capital requirement are calculated in accordance with Solvency I.
When Solvency II comes into force, the definitions and methods used to calculate available own funds as well as capital requirements and management standards will be replaced by Solvency II standards.
As at 31 December 2014, the solvency ratio on the basis of the regulatory provisions was 295.4 per cent. Eligible equity amounted to €3,442.2 million; which included eligible subordinated liabilities of €250.0 million up to half of the equity requirement and eligible subordinated liabilities of €286.5 million up to a quarter of the equity requirement. The solvency requirement is €1,165.2 million.
Risk capital requirements and available equity are currently calculated according to Solvency I regulations. These will be replaced when the Solvency II provisions take effect. In order to guarantee a smooth transition between these two different calculation methods, the UNIQA Group has performed parallel calculations since 2008. One consequence of these efforts is an early Group-wide introduction of the new methods and processes. Gaps and shortcomings will thus be identified early and promptly rectified.
The UNIQA Group defines its risk appetite on the basis of an economic capital model (ECM). The cover for quantifiable risks with eligible own funds (capital ratio) should lie between 150 and 160 per cent in 2015. In the medium term, the capital ratio should be at least 170 per cent.
As at 31 December 2013, the solvency ratio in accordance with the ECM was 160.9 per cent. Details for the reporting date of 31 December 2014, including a detailed analysis of changes, can be found in the ECM report.
In addition to regulatory and internal provisions, the Group also takes into account the capital requirements specified by an external rating agency to ensure that the Group's credit quality is presented objectively and can be compared with other entities. Therefore, the UNIQA Group is regularly rated by the rating agency Standard & Poor's. UNIQA Insurance Group AG has been given an "A–" credit rating by Standard & Poor's. UNIQA Österreich Versicherungen AG and UNIQA Re AG each have a rating of "A"; UNIQA Versicherung AG in Liechtenstein is rated with "A–" and the supplementary capital bond with "BBB". Standard & Poor's rates the outlook for all the companies as stable. The UNIQA Group includes the impact on its rating in its capital planning process with the objective of improving the rating over the long term as the corporate strategy is implemented.
The risk profile of the UNIQA Group is very strongly influenced by life insurance and health insurance portfolios in the Austrian life and health insurance companies UNIQA Österreich and Raiffeisen Versicherung AG. This situation means that market risk plays a central role in the UNIQA Group's risk profile. The composition of market risk is described in the section "Market risk".
The subsidiaries in Central Europe (CE: Hungary, Czech Republic, Slovakia and Poland) operate insurance business in the property and casualty segment and in the life and health insurance segment.
In the South Eastern Europe (SEE) and Eastern Europe (EE) regions, insurance business is currently conducted primarily in the property/casualty segment, in particular in the motor vehicle insurance segment.
This structure is important to the UNIQA Group, 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.
After every calculation for the life, non-life and composite insurers in the UNIQA Group, benchmark profiles are created and compared with the risk profile for each company. The benchmark profiles show that, for composite insurers, there is a balance between market and actuarial risk. Composite insurers are also in a position to achieve the highest diversification effect.
Based on the categories defined in the Solvency II standard formula, market risk comprises interest rate, spread, equity, real property, currency and liquidity risk. Market risk is very heavily influenced by interest rate risk, which arises if there is a mismatch between asset and liability maturities. This particularly affects life insurance business. UNIQA has considerably reduced interest rate risk in the last two years by establishing an ALM process as the foundation for creating an ALM-based asset allocation approach.
Aside from a substantial reduction in interest rate risk, the implementation of ALM-based asset allocation caused an increase in spread risk, which is now the greatest single risk faced by UNIQA. Spread risk is defined as the risk of price volatility from changes in credit risk premiums. In the case of fixed-income securities, this risk increases under the Solvency II standard formula depending on rating and duration.
In the last few years, the UNIQA Group has sharply reduced its equity risk, which now plays a rather subordinate role in the same way as currency and concentration risk.
All market risks are actively managed using the existing market risk management tools in the context of risk-bearing capacity and are integrated into company decision-making and management (for example, in quarterly ALM committee meetings at the highest management level).
| Asset allocation in € thousand |
31/12/2014 | 31/12/2013 |
|---|---|---|
| Fixed-income securities | 19,281,012 | 16,741,493 |
| Equities | 280,652 | 298,839 |
| Alternative investments | 41,087 | 59,077 |
| Equity investments | 830,185 | 896,285 |
| Loans | 119,946 | 125,156 |
| Real estate | 1,702,738 | 1,864,010 |
| Liquid funds | 1,359,072 | 1,890,828 |
| Total | 23,614,692 | 21,875,688 |
Interest rate risk arises on all statement of financial position asset and liability items whose value fluctuates as a result of changes in risk-free yield curves or associated volatility. Given the investment structure and the high proportion of interest-bearing securities in the asset allocation, interest rate risk forms an important part of market risk. The average coupon on fixed-income securities is 3.2 per cent.
The following table shows the maturity structure of interest-bearing securities and bonds reclassified as loans.
| Exposure by term in € thousand |
31/12/2014 | 31/12/2013 |
|---|---|---|
| Up to 1 year | 1,315,407 | 2,271,242 |
| More than 1 year up to 3 years | 2,874,526 | 2,084,284 |
| More than 3 years up to 5 years | 2,681,542 | 2,477,658 |
| More than 5 years up to 7 years | 3,388,525 | 1,598,831 |
| More than 7 years up to 10 years | 3,209,569 | 2,706,676 |
| More than 10 years up to 15 years | 2,553,315 | 1,647,191 |
| More than 15 years | 3,073,726 | 3,915,063 |
| Total | 19,096,609 | 16,700,944 |
Spread risk refers to the risk of changes in the price of statement of financial position asset or liability items as a consequence of changes in credit risk premiums or associated volatility. 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 structure for interest-bearing investments.
| Exposure by rating in € thousand |
31/12/2014 | 31/12/2013 | |
|---|---|---|---|
| AAA | 4,964,965 | 4,569,254 | |
| AA | 3,986,746 | 2,837,120 | |
| A | 4,130,316 | 3,519,567 | |
| BBB | 3,648,213 | 3,713,019 | |
| BB | 1,394,028 | 963,252 | |
| B | 363,890 | ||
| <=CCC | 158,390 | 113,790 | |
| Not rated | 450,061 | 369,076 | |
| Total | 19,096,609 | 16,700,944 |
Equity risk arises from movements in the value of equities and similar investments as a result of fluctuations in international stock markets. The effective equity weighting is controlled by hedging with the use of derivatives.
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 matching liabilities with assets in the same currency to cover liabilities created by the products. Despite the use of derivative financial instruments for hedging purposes, the currency risks of the investments do not always match the currency risks in the technical provisions and liabilities. The greatest component of this risk arises from investments in US dollars. The following table shows a breakdown of assets and liabilities by currency.
| 31/12/2014 | |||
|---|---|---|---|
| Assets | Provisions and liabilities | ||
| 29,492,947 | 27,734,138 | ||
| 960,329 | 50,569 | ||
| 450,157 | 411,716 | ||
| 463,492 | 434,998 | ||
| 906,474 | 804,231 | ||
| 183,090 | 121,490 | ||
| 581,380 | 378,291 | ||
| 33,037,868 | 29,935,434 | ||
| 31/12/2013 | |||
| Assets | Provisions and liabilities | ||
| 26,570,544 | 25,954,856 | ||
| 1,782,967 | 25,523 | ||
| 379,970 | 371,157 | ||
| 435,743 | 399,856 | ||
| 1,062,974 | 967,111 | ||
| 178,334 | 179,335 | ||
| 591,183 | 318,739 | ||
| 28,216,576 | |||
| 31,001,715 |
UNIQA has payment obligations that it must meet on a daily basis. It therefore carries out detailed liquidity planning covering a period of one year. A minimum liquidity balance is specified by the Management Board and is made available as a cash reserve on a day-to-day basis.
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. When investing in fixed-income securities and choosing the contractual maturities, UNIQA takes into account the existing contractual maturities in the business segment concerned.
In relation to private equity investments, there are further payment obligations amounting to €1.0 million (2013: €1.0 million).
Market and credit risk management is integrated as a fixed part of the structured investment process. Key figures used to measure, monitor and actively manage investment risk include, in particular, data from stress tests and sensitivity analyses in addition to figures from the established market and credit risk models (MCEV, SCR, ECR, etc.).
The following table shows the most important market risks in the form of key sensitivity figures. These key figures represent a snapshot on the reporting date and are only intended as an indication of future changes in fair value. Depending on the recognition and measurement principles that need to be applied, any future losses in fair value could lead to different changes in equity to be recognised in profit or loss 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 | ||||
|---|---|---|---|---|
| Interest rate risk | 31/12/2014 | 31/12/2013 | ||
| in € thousand | +100 basis points – 100 basis points +100 basis points –100 basis points | |||
| High grade | – 960,306 | 813,246 | –669,323 | 746,714 |
| Corporates | – 159,784 | 86,179 | –128,246 | 128,288 |
| Other | – 26,440 | 16,721 | –40,717 | 54,234 |
| Total | –1,146,530 | 916,146 | –838,286 | 929,236 |
| Spread risk: | 31/12/2014 | 31/12/2013 | ||
| in € thousand | + | – | + | – |
| AAA (0 basis points) | 0 | 0 | 0 | 0 |
| AA (25 basis points) | – 90,756 | 89,770 | –51,287 | 53,207 |
| A (50 basis points) | – 106,631 | 87,171 | –64,108 | 66,281 |
| BBB (75 basis points) | – 152,255 | 116,279 | –161,979 | 182,828 |
| BB (100 basis points) | – 40,909 | 19,747 | –29,373 | 31,249 |
| B (125 basis points) | – 11,567 | 7,480 | –9,622 | –437 |
| <=CCC (150 basis points) | – 28,209 | 8,239 | 16,910 | 26,417 |
| NR (100 basis points) | – 14,539 | 11,371 | 50,247 | –8,902 |
| Total | –444,866 | 340,058 | –249,213 | 350,644 |
| Equity risk | 31/12/2014 | 31/12/2013 | ||
| in € thousand | 30% | – 30% | 30% | –30% |
| Total | 206,603 | –134,989 | 165,785 | –143,457 |
| Currency risk | 31/12/2014 | 31/12/2013 | ||
| in € thousand | 10% | – 10% | 10% | –10% |
| USD | 30,688 | – 28,308 | 33,794 | –33,740 |
| HUF | 19,016 | – 19,042 | 8,079 | –8,108 |
| RON | 14,314 | – 14,337 | 5,749 | –5,769 |
| CZK | 30,455 | – 30,512 | 14,840 | –14,893 |
| PLN | 40,800 | – 40,877 | 20,663 | –20,737 |
| Other | 39,624 | – 37,819 | 26,458 | –26,554 |
| Total | 174,897 | –170,896 | 109,582 | –109,801 |
| 2014 in € thousand |
Interest rate shock (+100 bp) |
Interest rate shock (-100 bp) |
Spread shock (increase in spread) |
Spread shock (decrease in spread) |
Equity shock (+30%) |
Equity shock (-30%) |
Currency shock* (+10%) |
Currency shock* (-10%) |
|---|---|---|---|---|---|---|---|---|
| Income | ||||||||
| statement | 12,303 | –3,801 | 247 | 6,451 | 120,821 | –134,989 | 150,908 | –146,889 |
| Equity | –1,158,833 | 919,947 | –445,113 | 333,607 | 85,781 | 0 | 7,481 | –7,496 |
| Total | –1,146,530 | 916,146 | –444,866 | 340,058 | 206,603 | –134,989 | 158,390 | –154,385 |
* Currency shock from real estate amounting to €16.5 million (+10%) and €16.5 million (-10%) will not be incurred either on the income statement or in equity because real estate is recognised at the carrying amount and shocks on a fair value basis.
| 2013 in € thousand |
Interest rate shock (+100 bp) |
Interest rate shock (-100 bp) |
Spread shock (increase in spread) |
Spread shock (decrease in spread) |
Equity shock (+30%) |
Equity shock (-30%) |
Currency shock* (+10%) |
Currency shock* (-10%) |
|---|---|---|---|---|---|---|---|---|
| Income | ||||||||
| statement | 33,978 | –38,669 | 37,280 | –35,214 | 36,548 | –93,666 | 103.843 | –104.051 |
| Equity | –872,264 | 967,905 | –286,492 | 385,858 | 129,237 | –49,790 | 3.118 | –3.124 |
| Total | –838,286 | 929,236 | –249,213 | 350,644 | 165,785 | –143,457 | 106.961 | –107.175 |
* Currency shock from real estate amounting to €2.6 million (+10%) and €2.6 million (-10%) will not be incurred either on the income statement or in equity because real estate is recognised at the carrying amount and shocks on a fair value basis.
The market consistent embedded value (MCEV) is calculated in accordance with the market consistent embedded value principles defined by the CFO Forum and in accordance with the Basis For Conclusions published in the UNIQA Group in October 2009. The embedded value comprises the assets by fair value and the portfolio value of the insurance business. The portfolio value of the business equates to the present value of distributable profits after tax, net of the costs of capital. The MCEV corresponds to an actuarial valuation of the insurance company on a going concern basis, although the value of future new business is specifically excluded.
The assumptions used in the projection to determine the portfolio value are based on best estimates, i.e. realistic estimates using operating and economic assumptions based on future expectations and historical observations. An embedded value calculation requires a number of economic and operating assumptions. Although UNIQA believes these assumptions to be reasonable and sensible, they cannot be predicted with any certainty because of numerous influencing factors beyond the Company's control. For this reason, actual results may differ materially from the profits forecast in the assessment of embedded value.
The shareholder portion calculation takes into account all available income sources; in classic life insurance in Austria, the requirements of the Austrian Profit-Sharing Regulation are taken into account in particular. In all other countries for which the calculation is carried out, the most realistic growth in future profit participation is assumed, likewise taking into account the relevant legal framework. The projected profits are influenced by assumptions relating to mortality, policy cancellation, costs, capital selection, inflation and investment income.
The assumed interest rate depends on the capital market on the measurement date and is determined using the latest derivation method for yield curves under Solvency II. To facilitate an assessment of the impact from the interest rate assumption, two yield curve sensitivities were calculated in the embedded value, with +/- 100 bp applied to the capital market data for the interest rates. For the interest rate assumptions in accordance with the latest liquid market data, the calculation assumes a convergence within 40 years to a long-term interest rate of 4.2 per cent per cent. This corresponds to the latest requirements from EIOPA relating to the derivation method for risk-free interest rates and is also applied in the sensitivity analyses; consequently, the calculation does not produce mere parallel shifts in the yield curves.
The sensitivities specified below only relate to those companies in the UNIQA Group that have been measured using projection calculations (Austria, Italy, Czech Republic, Slovakia, Hungary, Poland, Russia). As at 31 December 2014, the scope of this measurement process covered more than 96 per cent of the life insurance business reserves in the UNIQA Group.
| Market consistent embedded value sensitivities | 2014 | 2013 | |
|---|---|---|---|
| Change in % of base value | |||
| Equities and real estate –10% | –5.82 | –5.01 | |
| Yield curve +1% | 8.82 | 4.98 | |
| Yield curve –1% | –19.60 | –10.08 | |
| Administration expenses –10% | 2.32 | 2.22 | |
| Rate of cancellations – 10% | 1.40 | 1.75 | |
| Mortality – endowment assurance and life insurance –5% | 1.51 | 1.33 | |
| Mortality – pension insurance –5% | –0.31 | –0.14 |
The investment in STRABAG SE, the portfolio of asset-backed securities and the assets related to Hypo Group Alpe Adria (HGAA) and HETA Asset Resolution AG (HETA) continue to be carefully monitored.
As at 31 December 2014, UNIQA held a 13.8 per cent stake in STRABAG SE (31 December 2013: 14.7 per cent). UNIQA is continuing to treat STRABAG SE as an associate due to contractual arrangements. The carrying amount of the investment in STRABAG SE at 31 December 2014 amounted to €456.5 million (31 December 2013: 471.4 million), which equated to €29.1 per share.
The UNIQA Group held 1.8 per cent (2013: 1.8 per cent) of its investments in asset-backed securities (ABSs). The valuation of ABSs is subject to model risk because most of the securities included in the direct portfolio and in the funds portfolio are priced using a mark-to-model method. There is a run-off in the ABS portfolio and, due to the general recovery of the asset class, carries a declining risk in comparison to previous years.
In 2014, the nationalised Hypo Alpe-Adria-Bank (HAA) was transferred to the "bad bank" Heta Asset Resolution AG, which is owned by the Republic of Austria. The function of this bad bank is to wind down the non-performing portion of HAA, which was nationalised in 2009, in the most effective way while at the same time preserving as much value as possible. In addition, the Austrian parliament passed the HAA Recovery and Resolution Act. This act wiped out HAA's subordinated debt, including debt guaranteed by the Austrian federal state of Carinthia. The bail-in affected subordinated bonds held by UNIQA with a nominal value of €36 million and a loss of €-34.1 million, which is a total impairment loss. Legal action was already initiated in 2014 to protect the interests of the beneficiaries of the cover pool and those of UNIQA.
As a consequence of the decision on 1 March 2015 issued by the Austrian Financial Market Authority (FMA) to impose a moratorium on debt and interest payments by Heta Asset Resolution AG, UNIQA anticipates that it will need to recognise an impairment loss in the first quarter of 2015 for senior bonds issued by the former HAA. At the end of 2014, UNIQA had still classified this debt as recoverable because of the guarantee from the state of Carinthia. The amount of the impairment loss will be determined on the basis of the edict from the FMA and the change to the legal position. Within UNIQA's portfolio, this affects bonds with a nominal value of €25 million and an amortised cost of €21.3 million.
Market and credit risks have different weightings and various degrees of seriousness, depending on the investment structure. The effects of the financial risks on the value of the investments also influence the level of technical liabilities. There is therefore – particularly in life insurance – a dependence between the growth of assets and debts from insurance contracts. UNIQA monitors the income expectations and risks of assets and liabilities arising from insurance policies as part of the asset liability management (ALM) process. The objective is to achieve a return on capital that is sustainably higher than the technical liabilities carried forward while retaining the greatest possible security. To do this, assets and debts are allocated to different accounting groups. The following table shows the main accounting groups generated by the various product categories.
| Investments in € thousand |
31/12/2014 | 31/12/2013 |
|---|---|---|
| Long-term life insurance contracts with guaranteed interest and profit sharing | 16,500,617 | 15,242,429 |
| Long-term unit-linked and index-linked life insurance contracts | 5,386,650 | 5,332,611 |
| Long-term health insurance contracts | 3,128,747 | 2,748,864 |
| Short-term property and casualty insurance contracts | 4,196,663 | 4,059,744 |
| Total | 29,212,677 | 27,383,649 |
These values refer to the following statement of financial position items:
| Technical provisions and liabilities (retained) in € thousand |
31/12/2014 | 31/12/2013 |
|---|---|---|
| Long-term life insurance contracts with guaranteed interest and profit sharing | 15,607,593 | 14,577,386 |
| Long-term unit-linked and index-linked life insurance contracts | 5,306,000 | 5,251,035 |
| Long-term health insurance contracts | 2,677,684 | 2,571,458 |
| Short-term property and casualty insurance contracts | 2,757,870 | 2,606,084 |
| Total | 26,349,146 | 25,005,963 |
These values relate to the following statement of financial position items:
Due to the particular importance of the ALM process in life insurance, the focus below is placed on this segment. For practical reasons, it is not possible to fully achieve the objective of matching cash flows for assets and liabilities. The duration of the assets in life insurance is 6.7 years (2013: 5.8 years), while for liabilities it is considerably longer. This is referred to as a duration gap. It gives rise to interest rate risk and this risk is backed by capital in the ECR model. The discount rate that may be used in the costing when new business is written is based in most UNIQA companies on 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 the core market of Austria, the maximum discount rate is currently 1.5 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 indication of the average discount rates for each region.
| Average technical discount rates, core business by region and currency | EUR | USD | CHF | Local currency |
|---|---|---|---|---|
| in per cent | ||||
| Austria (AT) | 2.5 | - | - | - |
| Western Europe (WE) | 2.0 | - | 2.6** | - |
| Central Europe (CE) | 3.6 | - | - | 3.3 |
| Southeastern Europe (SEE) | 3.1 | - | - | 2.9 |
| Eastern Europe (EE) | 3.4 | 4.0 | - | 3.5 |
| Russia (RU) | 3.0 | 3.0 | - | 4.0 |
Definition of regions:
AT - Austria WE - Italy, Liechtenstein
CE - Poland, Hungary, Czech Republic, Slovakia
SEE - Bulgaria, Serbia, Bosnia and Herzegovina, Croatia, Albania, Montenegro*, Kosovo, Macedonia
EE - Romania, Ukraine*
RU - Russia
*Not included ** 2.6 restated value in 2013
As these discount rates are guaranteed by the insurance company, the financial risk lies in not being able to generate these returns. Because classic life insurance business predominantly invests in interest-bearing securities (bonds, loans, etc.), 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.
The actuarial risk in the non-life segment 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. Appropriate distribution assumptions are made to ensure that these events are also adequately incorporated into risk modelling.
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 run-off loss. The claims 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 estimates.
To counter and actively manage these risks, UNIQA runs a number of processes integrated into its insurance operations. For example, Group guidelines specify 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 IFRS. 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 nonlife partial model. This risk model uses stochastic simulations to quantify the risk capital requirement for each risk class at both Company and Group levels. The model also produces further key figures that are then used as part of the risk- and value-based management of the insurance business.
The risk of an individual insurance contract lies in the occurrence of the insured event. The occurrence is considered random and therefore unpredictable. Various risks exist in life insurance, particularly in classic life insurance. The insurance company takes on this risk for a corresponding premium. When calculating the premium, the actuary refers to the following carefully selected calculation bases:
Carefully selecting the calculation bases gives rise to well-planned profits, an appropriate amount of which is credited to the policyholders as part of profit sharing.
The calculation of the premium is also based on the acceptance of a large, homogenous inventory of independent risks, so that the randomness inherent in an individual insurance policy is balanced out by the law of large numbers.
The following risks exist for a life insurance company:
| Long-term life insurance contracts with guaranteed interest and profit sharing in € thousand |
31/12/2014 | 31/12/2013 |
|---|---|---|
| Austria (AT) | 12,035,723 | 11,879,899 |
| Western Europe (WE) | 2,702,524 | 2,085,404 |
| Central Europe (CE) | 296,710 | 303,144 |
| Eastern Europe (EE) | 26,320 | 35,019 |
| Southeastern Europe (SEE) | 458,006 | 195,052 |
| Russia (RU) | 88,310 | 78,867 |
| 15,607,593 | 14,577,386 | |
| Long-term unit-linked and index-linked life insurance contracts in € thousand |
31/12/2014 | 31/12/2013 |
| Austria (AT) | 4,458,977 | 4,335,070 |
| Western Europe (WE) | 419,192 | 515,550 |
| Central Europe (CE) | 425,899 | 399,218 |
| Eastern Europe (EE) | 0 | 0 |
| Southeastern Europe (SEE) | 1,932 | 1,198 |
| Russia (RU) | 0 | 0 |
| 5,306,000 | 5,251,035 |
UNIQA's portfolio consists primarily of long-term insurance contracts. Short-term assurances payable at death play a minor role.
The table below shows the distribution of the premium portfolio by type and region.
| Premium portfolio in % | Endowment assurance Life insurance |
Pension insurance | ||||
|---|---|---|---|---|---|---|
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
| Austria (AT) | 46.3 | 43.9 | 9.0 | 9.0 | 14.1 | 16.1 |
| Western Europe (WE) | 72.2 | 73.3 | 8.0 | 8.5 | 16.3 | 16.5 |
| Central Europe (CE) | 18.2 | 20.5 | 2.8 | 3.2 | 0.2 | 0.2 |
| Southeastern Europe (SEE) | 85.4 | 81.7 | 5.1 | 6.6 | 0.6 | 0.4 |
| Eastern Europe (EE) | 53.8 | 49.3 | 9.1 | 21.8 | 0.0 | 0.0 |
| Russia (RU) | 94.4 | 90.9 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total | 49.2 | 46.4 | 7.7 | 8.0 | 11.3 | 13.5 |
| Premium portfolio in % | Unit-linked and index-linked | Residual debt insurance | Other | |||
|---|---|---|---|---|---|---|
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
| Austria (AT) | 29.6 | 30.1 | 0.0 | 0.0 | 1.1 | 0.9 |
| Western Europe (WE) | 3.5 | 1.8 | 0.0 | 0.0 | 0.0 | 0.0 |
| Central Europe (CE) | 56.1 | 55.6 | 10.9 | 7.5 | 11.8 | 13.1 |
| Southeastern Europe (SEE) | 1.4 | 1.5 | 0.8 | 0.9 | 6.7 | 8.8 |
| Eastern Europe (EE) | 0.0 | 0.0 | 30.4 | 28.9 | 6.7 | 0.0 |
| Russia (RU) | 0.0 | 0.0 | 5.6 | 9.1 | 0.0 | 0.0 |
| Total | 27.5 | 28.7 | 1.9 | 1.1 | 2.4 | 2.3 |
Definition of regions:
AT - Austria
WE - Italy, Liechtenstein CEE - Poland, Hungary, Czech Republic, Slovakia
EE - Romania, Ukraine*
SEE - Bulgaria, Serbia, Bosnia and Herzegovina, Croatia, Albania, Montenegro**, Kosovo*, Macedonia*
RU - Russia
* Not included in 2013 ** Not included in 2013 or 2014
With respect to assurance involving death risk, premiums are calculated based on an accounting table, implicitly allowing for the safety loading of risk premiums.
Using risk selection (health examinations) means that the mortality probabilities of the portfolio are consistently smaller than those of the overall population; In addition, the gradual improvement of mortality rates means that the real mortality probabilities are consistently smaller than the values shown in the accounting table. Analyses of mortality data carried out at Group level show that, historically, the level of premiums has been sufficient to cover the death benefits.
Due to the large number of lives insured by the UNIQA Group in the Austrian market, the development of mortality is of particular importance here. According to the 2010/2012 mortality table published by Statistics Austria, life expectancy has increased and is over 80 years for new-borns for the first time.
Life expectancy at birth
| Mortality table | Men | Women |
|---|---|---|
| 1970–72 | 66.6 | 73.7 |
| 1980–82 | 69.2 | 76.4 |
| 1990–92 | 72.5 | 79.0 |
| 2000–02 | 75.5 | 81.5 |
| 2010–12 | 78.0 | 83.3 |
The reduction in the probability of dying for any given age is causing a huge amount of uncertainty in the annuities business. Improvements in mortality rates as a result of medical progress and changed lifestyles are virtually impossible to extrapolate.
Attempts to predict this effect were made when producing the generation tables. However, such tables only exist for the Austrian population and this data cannot be applied to other countries. In the UNIQA Group, longevity risk relates mainly to the Austrian life insurance companies because very few pension products are sold in the regions covered by the international business.
An insurance company takes great pains to compose a portfolio of the most homogenous, independent risks possible, in accordance with the classic, deterministic approach to calculating premiums. Because this is virtually impossible in practice, a considerable risk arises for the insurer due to random fluctuations, in particular from the outbreak of epidemic illnesses, as not only could the calculated mortality probabilities prove to be too low, the independence of the risks can also no longer be assumed.
The portfolios of the UNIQA Group, above all in Austria, contain large quantities of risk insurance policies with a premium adjustment clause. This allows the insurer to raise the premiums in case of an (unlikely) worsening of the mortality behaviour. However, this presents the danger of possible antiselection behaviour, meaning that policies for good risks tend to be terminated while worse ones remain in the portfolio.
The right to choose pensions for deferred retirement annuities also results in antiselection. Only those policyholders who feel very healthy choose the annuity payment; all others choose partial or full capital payment. In this way, the pension portfolio tends to consist of mostly healthier people, i.e. from the insurer's point of view worse risks than the population average.
This phenomenon is countered by corresponding modifications to the retirement mortality tables. A further possibility exists in the requirement that the intention to exercise the right to choose annuity payments must be announced no later than one year in advance of the expiration.
Besides the risks discussed above, the cost risk must also be mentioned: the insurer guarantees that it will deduct only the calculated costs for the entire term of the policy. The business risk here is that the cost premiums are insufficient (e.g. due to cost increases resulting from inflation).
The health insurance business is operated primarily in Austria (92.4 per cent is domestic and 7.6 per cent is international). As a result, the focus lies on risk management in Austria.
Health insurance is a loss insurance which is calculated under consideration of biometric risks and is operated in Austria "similar to life insurance".
Terminations by the insurer are not possible except in the case of obligation violations by the insured. Premiums must therefore be calculated in such a way that the premiums are sufficient to cover the insurance benefits that generally increase with age, assuming probabilities that remain constant. The probabilities and cost structures can change frequently over time. For this reason, it is possible to adjust the premiums for health insurance as necessary to the changed calculation bases.
When taking on risks, the existing risk of the individual is also evaluated. If it is established that an illness already exists for which the cost risk is expected to be higher than for the calculated portfolio, then either this illness is excluded from the policy, an adequate risk surcharge is demanded or the risk is not underwritten.
In health insurance, assurance coverage ("aging provision") is built up through calculation according to the "type of life insurance" and reduced again in later years because this is used to finance an ever larger part of the benefits that increase with age.
The discount rate for this actuarial reserve is 3.0 or 2.5 per cent. If the discount rate of 3.0 per cent is not achieved by the investment, there are safety margins in the premiums that can be used to cover the insufficient investment results. Because a guideline was published by the FMA in October 2013 about the discount rate in health insurance, starting in January 2014 new business has been calculated with a discount rate of 2.5 per cent. This results in an improvement of the risk in cases where the investment results are insufficient. In addition, an additional sub-portfolio of business at older rates has been based on the discount rate of 2.5 per cent. The average discount rate was approximately 2.97 per cent as at 31 December 2014.
The legal risks arise primarily from the effects that changes to legislation have on the existing private health insurance business model. This includes, in particular, changes to the legal framework that make it harder or impossible to adapt to changed circumstances or that sharply reduce the income opportunities. Developments in this area will be observed by the insurance association, and an attempt will be made where necessary to react to negative developments from the perspective of the private health insurer.
The EU Directive on the equal treatment of men and women in insurance, which is implemented in Austria by the Insurance Amendment Act 2006 (VersRÄG 2006), was also taken into account in the calculation of premiums at the end of the 2nd quarter of 2007. This stipulated that the costs of birth and pregnancy be distributed across both sexes. No significant risk to profit has been identified here.
In the meantime, a European Court of Justice decision regarding insurance policies results in a new situation as of 21 December 2012: as of that date only completely identical premiums are allowed for men and women, excluding considerations such as age and individual preexisting conditions. Experience in 2013 and 2014 has shown that this has not resulted in any negative development of the portfolio structure of new business.
The risk of the health insurance business outside Austria is currently dominated primarily by UNIQA Assicurazioni in Milan (approx. €34.3 million in annual premiums). This Company presently has stable portfolios, meaning that insurance risk scarcely changes. For tariffs with outdated calculation bases, whose holdings are aging, the insured will be converted in the coming years to tariffs with a modern calculation basis. Because this affects tariffs that are not lifelong, the conversion problem is less significant than it is for life-long tariffs.
The remaining premiums (approx. €39.2 million) are divided among multiple companies and are of only minor importance there. Only in Switzerland (Geneva) is health insurance the primary business (approx. €8.6 million); however, the Swiss Solvency Test showed there was sufficient risk capital.
Life-long health insurance policies without termination options by the insurer rarely exist outside of Austria, meaning that the risk can be considered low for this reason as well.
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.
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.
The UNIQA Group'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 in all subsidiaries.
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 in the UNIQA Group. Risks are identified with the help of a standardised risk catalogue that is regularly checked for completeness. Scenarios are defined for evaluating these risks; these scenarios are meant to convey the likelihood of occurrence and the possible amount of the claim. The results are then presented by the risk manager in the form of a summarised risk report.
This process is usually conducted twice a year.
According to international standards, the UNIQA Group – 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. However, 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 (BCM) covering the issues of crisis prevention, crisis management and business recovery (including business continuity plans). The main objectives are as follows:
The UNIQA BCM model is based on international rules and standards and will continue to be implemented in 2015. The implementation of a BCM system forms part of UNIQA's response to the requirements imposed by relevant authorities (solvency, critical infrastructure) and the market (calls for tender). This holistic approach to a risk management system not only reduces potential losses following an event but also enhances the quality of day-to-day operations.
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 claims processing or advising and service quality are identified, evaluated and managed the same as operational risk in our subsidiaries.
The most important reputational risks are presented, like operational risks, in an aggregated form in the risk report.
Group risk management then analyses whether the risk observed in the Group or in another unit may occur, and whether the danger of "contagion" within the Group is possible.
Strategic risk describes the risk that results from management decisions or insufficient implementation of management decisions that may influence current/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 twice a year. Furthermore, important decisions in various committees, such as the Risk Committee, are discussed with the Management Board. As outlined in the explanation of the risk management process, the management receives a monthly update regarding the most significant risks in the form of a heat map.
Goodwill arises from company mergers and acquisitions. It represents the difference between the acquisition costs and the proportional and current corresponding net fair value of identifiable assets, debts and specific contingent liabilities. In accordance with IAS 36, goodwill is not subject to amortisation, but reported at the acquisition cost less any accrued impairments.
For the purpose of the impairment test, the UNIQA Group has allocated the goodwill into "cash-generating units" (CGUs). These CGUs are the smallest identifiable groups of assets that generate cash flows that are to the greatest possible extent independent from the cash generating units of other assets or other groups of assets. The impairment test involves a comparison between the amount that can be generated by selling or using each CGU, the present value of future cash flows with its value to be covered, consisting of goodwill, the proportional net assets and any capital increases and internal loans. If the resulting value exceeds the realisable value of the unit based on the discounted cash flow method, an impairment loss is recognised. The impairment test was carried out on 1 October 2014. If there were any particular deviations from the planned performance in the fourth quarter, the CGUs were updated individually. The UNIQA Group has allocated goodwill to the following CGUs, which coincide with the countries in which UNIQA is active, with the exception of the Sigal Group, in which the three countries of Albania, Kosovo and Macedonia were combined as one CGU due to their similar development and organisational connection:
| Cash-generating unit – insurance | 30/9/2014 | |
|---|---|---|
| in € thousand | ||
| Bosnia and Herzegovina | 1,887 | |
| Bulgaria | 55,811 | |
| Italy | 121,718 | |
| Croatia* | 32,206 | |
| Liechtenstein | - | |
| Montenegro | 81 | |
| UNIQA Österreich | 37,737 | |
| Poland | 28,457 | |
| Romania | 127,990 | |
| Russia | 72 | |
| Switzerland | - | |
| Serbia* | 19,829 | |
| "Sigal Group" | 20,253 | |
| Slovakia | 120 | |
| Czech Republic | 7,712 | |
| Ukraine | 18,774 | |
| Hungary | 17,219 | |
| UNIQA Re | - |
| Breakdown of total Group goodwill | 30/9/2014 30/9/2013 | ||
|---|---|---|---|
| Region in € thousand |
|||
| Austria (AT) | 37,737 | 37,737 | |
| Western Europe (WE) | 121,718 | 123,455 | |
| Central Europe (CE) | 53,508 | 54,411 | |
| Eastern Europe (EE) | 146,764 | 152,120 | |
| Southeastern Europe (SEE)* | 130,068 | 98,251 | |
| Russia (RU) | 72 | 87 | |
| Total | 489,867 | 466,061 |
*)Due to the final purchase price allocation from the acquisition of the Baloise Group, the goodwill for Croatia was reduced by €16,040 thousand and for Serbia increased by €10 thousand as at 31 December 2014. Consequently, the goodwill for the region of Southeastern Europe also decreased by €16, 030 thousand.
The UNIQA Group calculates the recoverable amount on the basis of value in use by applying generally accepted valuation 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 statement of financial position segments, which are then totalled to yield the value for the entire Company.
Taxes on operating income were set at the average effective tax rate of the past three years.
The assumptions with regard to risk-free interest rate, market risk premium and segment betas made for determination of the capitalisation rate are consistent with the parameters used in the UNIQA planning and controlling process and are based on the capital asset pricing model.
In order to depict the economic situation and the financial crisis in the income values as accurately as possible in consideration of 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 30 year maturities) was used as a base interest rate.
In the reporting period, the beta factor was determined for the first time 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 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 for personal injury insurance is therefore used in relation to the life and health insurance business.
The market risk premium was determined conservatively on the basis of the current standards issued by the Kammer der Wirtschaftstreuhänder (Austrian Chamber of Public Accountants and Tax Advisors). The calculations published by Damodaran were used to determine the country risk premium. The country risk premium in accordance with the Damodaran method is calculated as follows: starting from the rating of the country concerned (from Moody's), UNIQA obtains the yield spread from credit default swap spreads with the same rating as risk-free government bonds and adjusts this spread to reflect the volatility difference between equity and bond markets. UNIQA also assumes that country risk will decline over the next few years on the basis of subsequent trends.
The calculation in 2014 also factored in the inflation differential for countries outside the euro zone. 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 with the expected inflation and subsequently applied for perpetuity with the value of the last year of the detailed planning phase.
| Cash-generating unit | Discount factor | Discount factor perpetuity | ||
|---|---|---|---|---|
| in per cent | Property/ casualty | Life & health Property/ casualty | Life & health | |
| Bosnia and Herzegovina | 17.8 | 18.6 | 14.1 | 14.9 |
| Bulgaria | 8.4 | 9.2 | 10.6 | 11.4 |
| Italy | 11.2 | 11.9 | 10.1 | 10.9 |
| Croatia | 10.7 | 11.5 | 11.5 | 12.3 |
| Liechtenstein | 7.1 | 7.8 | 7.6 | 8.4 |
| Montenegro | 15.3 | 16.0 | 11.3 | 12.1 |
| UNIQA Austria | 8.3 | 9.1 | 8.3 | 9.1 |
| Poland | 8.5 | 9.2 | 10.2 | 10.9 |
| Romania | 11.9 | 12.6 | 11.7 | 12.5 |
| Russia | 16.7 | 17.4 | 12.9 | 13.7 |
| Switzerland | 7.1 | 7.8 | 7.6 | 8.4 |
| Serbia | 16.5 | 17.3 | 14.4 | 15.1 |
| "Sigal Group" | 14.2–15.5 | 14.9–16.3 | 11.5–13.4 | 12.2–14.1 |
| Slovakia | 9.6 | 10.4 | 9.4 | 10.1 |
| Czech Republic | 8.5 | 9.3 | 9.5 | 10.3 |
| Ukraine | 27.0 | 27.7 | 17.4 | 18.1 |
| Hungary | 10.9 | 11.7 | 12.0 | 12.8 |
| Regions | ||||
| Austria | 8.3 | 9.1 | 8.3 | 9.1 |
| Western Europe (WE) | 7.1–11.2 | 7.8–11.9 | 7.6–10.1 | 8.4–10.9 |
| Central Europe (CE) | 8.5–10.9 | 9.2–11.7 | 9.4–12.0 | 10.1–12.8 |
The discount rate ranges listed for the Sigal Group and the regions relate to the spread over the respective countries grouped under these headings. Source: Damodaran and derived factors
Eastern Europe (EE) including Russia 11.9–27.0 12.6–27.7 11.7–17.4 12.5–18.1 South Eastern Europe (SEE) 8.4–17.8 9.2–18.6 10.6–14.4 11.4–15.1 The following discount rates were applied in the previous year (reporting date impairment test 31 December 2013):
| Cash-generating unit | Discount factor | Discount factor perpetuity | ||
|---|---|---|---|---|
| in per cent | Property/ casualty | Life & health Property/ casualty | ||
| Albania | 15.1 | 16.4 | 15.5 | 16.7 |
| Bosnia and Herzegovina | 19.1 | 20.4 | 18.9 | 20.1 |
| Bulgaria | 11.5 | 12.7 | 11.5 | 12.7 |
| Italy | 10.5 | 11.7 | 10.6 | 11.8 |
| Kosovo | 14.4 | 15.6 | 13.9 | 15.2 |
| Croatia | 13.2 | 14.5 | 12.9 | 14.2 |
| Liechtenstein | 6.1 | 7.3 | 7.7 | 9.0 |
| Macedonia | 14.8 | 16.0 | 13.9 | 15.2 |
| Montenegro | 13.4 | 14.6 | 13.1 | 14.4 |
| UNIQA Austria | 8.0 | 9.2 | 8.9 | 10.1 |
| Poland | 9.2 | 10.4 | 10.9 | 12.2 |
| Romania | 12.6 | 13.8 | 13.3 | 14.5 |
| Russia | 14.7 | 15.9 | 12.4 | 13.6 |
| Switzerland | 6.1 | 7.3 | 7.7 | 9.0 |
| Serbia | 15.9 | 17.1 | 14.9 | 16.2 |
| Slovakia | 10.1 | 11.3 | 11.1 | 12.4 |
| Czech Republic | 10.0 | 11.3 | 10.7 | 12.0 |
| Ukraine | 22.3 | 23.6 | 19.7 | 20.9 |
| Hungary | 12.9 | 14.2 | 13.6 | 14.9 |
Source: Damodaran and derived factors
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 in the UNIQA Group with the participation of UNIQA International, in combination with the reporting and documentation process integrated into this dialogue. The plans are formally approved by the Management Board and also include material assumptions regarding the combined ratio, investment income, market shares and the like.
The last year of the detailed planning phase is used as the basis for determining the cash flows in phase 2. The growth in the start-up phase leading up to phase two was determined using a projection of the growth in insurance markets. 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 included the following studies and materials:
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 in particular 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 valuation results.
In the event that the recovery from the economic crisis turns out to be much weaker and slower than assumed in the business plans and fundamental forecasts, and the insurance market trends differ entirely from the assumptions made in those business plans and forecasts, the individual CGUs 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 is a rise in interest rates of 50 basis points in the countries of Bulgaria, Croatia and Romania, there could be a convergence between the value in use and the carrying amount or a value in use that is lower than the carrying amount. If there were a stronger rise in interest rates of 100 basis points or more, Bosnia/Herzegovina would also be affected. If the underlying cash flows change by -5.0 per cent, there will also be a risk of a convergence or a value in use that is lower than the carrying amount in the countries of Bulgaria, Croatia and Romania. This list expands to include Herzegovina when there is a deviation of more than -10.0 per cent in the cash flows.
In 2014, an impairment loss of €25 million was recognised for Romania.
Backtesting is regularly carried out on the planning for the individual countries. The objective is to obtain information for internal purposes on the extent to which the operating units plan their results accurately and on the extent to which details useful with regard to subsequent development are highlighted. This backtesting can also be used to draw conclusions to be applied to the latest round of planning, thereby enhancing planning accuracy in forthcoming financial plans.
The Management Board of the holding company determines, directly and indirectly, the strategic contents of reinsurance policy with its decisions regarding risk and capital policy. The following principles can be derived from external reinsurance to inform purchasing.
Reinsurance structures sustainably support the 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. Decisions regarding all reinsurance business ceded are taken with special consideration of their effects on the required risk capital. Continuous analysis of reinsurance purchasing for efficiency characteristics is an essential component of internal risk management processes.
UNIQA Re AG in Zurich is responsible for the operational implementation of these tasks. It is responsible for and guarantees the implementation of reinsurance policies issued by the Management Board of the holding company. It is responsible for issuing Group-wide guidelines governing all activities, organisation and questions regarding internal and external reinsurance relationships. UNIQA Re AG is available to all Group companies as the risk carrier for their reinsurance needs. Naturally, internal risk transfers are subject to the same requirements and valuation processes in terms of efficiency measurement, risk capital optimisation and diversification as retrocessions to external reinsurance partners.
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 affected units. Reinsurance programmes are consistently structured systematically in accordance with their influence on the cedent's risk situation.
For the property and casualty insurer, promises of performance for protection against losses resulting from natural disasters 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. The UNIQA Group has set up a specialised unit within UNIQA Re AG 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. The UNIQA Group substantially eases the pressure on its risk capital through the targeted utilisation of all applicable diversification effects and the launching of a highly 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's retrocessions in the nonlife insurance line were carried out on a non-proportional basis. The Group assumes reasonable deductibles in the affected programmes based on risk and value-based approaches.
| Property and casualty insurance | Health insurance | |||||
|---|---|---|---|---|---|---|
| in € thousand | 31/12/2014 | 31/12/2013 | 31/12/2014 | 31/12/2013 | ||
| Assets | ||||||
| A. Property, plant and equipment | 136,214 | 137,423 | 27,494 | 29,609 | ||
| B. Investment property | 219,380 | 216,642 | 312,145 | 287,568 | ||
| C. Intangible assets | 483,441 | 498,087 | 225,769 | 225,324 | ||
| D. Investment in associates | 43,374 | 43,397 | 173,520 | 192,025 | ||
| E. Investments | 4,013,081 | 3,840,288 | 2,507,148 | 2,177,347 | ||
| F. Unit-linked and index-linked life insurance investments | 0 | 0 | 0 | 0 | ||
| G. Reinsurers' share of technical provisions | 155,799 | 129,348 | 1,002 | 1,067 | ||
| H. Reinsurers' share of technical provisions | ||||||
| for unit-linked and index-linked life insurance | 0 | 0 | 0 | 0 | ||
| I. | Receivables including insurance receivables | 1,089,632 | 1,504,734 | 193,922 | 258,416 | |
| J. Income tax receivables | 38,209 | 53,146 | 1,111 | 164 | ||
| K. Deferred tax assets | 1,409 | 5,835 | 394 | 519 | ||
| L. Current bank balances and cash-in-hand | 234,646 | 242,382 | 143,859 | 107,219 | ||
| M. Assets in disposal groups held for sale | 0 | 0 | 0 | 0 | ||
| Total assets by segment | 6,415,185 | 6,671,282 | 3,586,364 | 3,279,258 | ||
| Equity and liabilities | ||||||
| B. Subordinated liabilities | 604,187 | 604,132 | 0 | 0 | ||
| C. Technical provisions | 2,914,745 | 2,737,773 | 2,677,800 | 2,571,539 | ||
| D. Technical provisions for unit-linked and | ||||||
| index-linked life insurance | 0 | 0 | 0 | 0 | ||
| E. Financial liabilities | 11,485 | 6,288 | 28,557 | 29,716 | ||
| F. Other provisions | 772,838 | 773,153 | 17,520 | 21,013 | ||
| G. Liabilities and other items classified as equity and | ||||||
| liabilities | 671,877 | 1,209,137 | 190,034 | 148,204 | ||
| H. Income tax liabilities | 30,774 | 28,775 | 597 | 1,572 | ||
| I. | Deferred tax liabilities | 77,773 | 41,183 | 141,392 | 92,563 | |
| J. Liabilities in disposal groups held for sale | 0 | 0 | 0 | 0 | ||
| Total equity and liabilities by segment | 5,083,679 | 5,400,440 | 3,055,901 | 2,864,606 |
| Group | Consolidation | Life insurance | ||||
|---|---|---|---|---|---|---|
| 31/12/2013 | 31/12/2014 | 31/12/2013 | 31/12/2014 | 31/12/2013 | 31/12/2014 | |
| 286,589 | 283,506 | 0 | 0 | 119,557 | 119,798 | |
| 1,652,485 | 1,504,483 | 0 | 0 | 1,148,275 | 972,958 | |
| 1,529,131 | 1,517,058 | –3,299 | 0 | 809,018 | 807,848 | |
| 545,053 | 528,681 | 0 | 0 | 309,631 | 311,788 | |
| 19,038,091 | 20,629,354 | –576,359 | –557,603 | 13,596,815 | 14,666,728 | |
| 5,332,611 | 5,386,650 | 0 | 0 | 5,332,611 | 5,386,650 | |
| 553,252 | 563,540 | 0 | 0 | 422,837 | 406,739 | |
| 389,206 | 332,974 | 0 | 0 | 389,206 | 332,974 | |
| 979,746 | 1,094,544 | –1,184,979 | –836,164 | 401,575 | 647,154 | |
| 69,881 | 53,917 | 0 | 0 | 16,571 | 14,596 | |
| 8,695 | 6,630 | 0 | 0 | 2,342 | 4,827 | |
| 616,976 | 975,764 | 0 | 0 | 267,375 | 597,258 | |
| 0 | 161,053 | 0 | 0 | 0 | 161,053 | |
| 31,001,715 | 33,038,153 | –1,764,637 | –1,393,767 | 22,815,812 | 24,430,371 | |
| 600,000 | 600,000 | –314,132 | –314,187 | 310,000 | 310,000 | |
| 19,900,215 | 21,220,068 | –3,867 | –1,178 | 14,594,771 | 15,628,701 | |
| 5,251,035 | 5,306,000 | 0 | 0 | 5,251,035 | 5,306,000 | |
| 26,836 | 49,181 | –255,699 | –258,173 | 246,531 | 267,312 | |
| 836,681 | 833,914 | 0 | 0 | 42,515 | 43,557 | |
| 1,362,117 | 1,368,751 | –1,198,664 | –818,840 | 1,203,440 | 1,325,680 | |
| 40,712 | 43,272 | 0 | 0 | 10,366 | 11,901 | |
| 198,980 | 355,424 | 0 | 0 | 65,234 | 136,259 | |
| 0 | 159,107 | 0 | 0 | 0 | 159,107 | |
| 28,216,576 | 29,935,719 | –1,772,362 | –1,392,378 | 21,723,892 | 23,188,517 | |
| 2,785,139 | 3,102,434 | Consolidated equity and non-controlling interests | ||||
| 31,001,715 | 33,038,153 | Total equity and liabilities | ||||
The amounts indicated have been adjusted to eliminate amounts resulting from segmentinternal transactions. Therefore, the balance of segment assets and segment liabilities does not allow conclusions to be drawn with regard to the equity allocated to the respective segment.
| UNIQA Austria | Raiffeisen Versicherung | UNIQA International | |||||
|---|---|---|---|---|---|---|---|
| in € thousand | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | |
| Premiums written (gross), including savings portion from | |||||||
| the unit-linked and index-linked life insurance. | 2,773,542 | 2,806,699 | 905,290 | 878,474 | 2,353,062 | 2,162,358 | |
| Premiums earned (net), including savings portion from the unit-linked and index-linked life insurance |
2,137,021 | 2,196,206 | 793,957 | 767,663 | 1,822,239 | 1,634,118 | |
| Savings portion in unit-linked and index-linked life insurance (gross) |
152,378 | 209,844 | 152,378 | 209,844 | 239,898 | 308,243 | |
| Savings portion in unit-linked and index-linked life insurance |
|||||||
| (net) | 143,121 | 197,015 | 143,121 | 197,015 | 239,898 | 308,243 | |
| Premiums written (gross) | 2,621,163 | 2,596,856 | 752,912 | 668,630 | 2,113,164 | 1,854,115 | |
| 1. Premiums earned (net) | 1,993,900 | 1,999,191 | 650,837 | 570,648 | 1,582,342 | 1,325,874 | |
| 2. Technical interest income | 229,055 | 242,023 | 219,626 | 209,939 | 96,615 | 85,966 | |
| 3. Other insurance income | 3,137 | 7,268 | 917 | 526 | 25,931 | 10,164 | |
| 4. Insurance benefits | –1,637,225 | –1,680,518 | –685,206 | –629,983 | –1,253,637 | –960,118 | |
| 5. Operating expenses | –393,975 | –418,113 | –101,457 | –111,748 | –434,847 | –454,669 | |
| 6. Other technical expenses | –37,881 | –40,762 | –14,841 | –15,978 | –50,823 | –40,345 | |
| 7. Technical result | 157,010 | 109,088 | 69,876 | 23,404 | –34,419 | –33,128 | |
| 8. Net investment income | 363,015 | 379,086 | 267,048 | 251,636 | 174,330 | 143,106 | |
| 9. Other income | 7,513 | 2,240 | 1,736 | 837 | 26,774 | 15,707 | |
| 10. Reclassification of technical interest income | –229,055 | –242,023 | –219,626 | –209,939 | –96,615 | –85,966 | |
| 11. Other operating expenses | –12,049 | –8,663 | –123 | –1,091 | –40,688 | –12,947 | |
| 12. Non-technical result | 129,424 | 130,640 | 49,035 | 41,443 | 63,800 | 59,900 | |
| 13. Operating profit/(loss) | 286,434 | 239,728 | 118,911 | 64,848 | 29,381 | 26,772 | |
| 14. Amortisation of goodwill and impairment losses | –1,875 | –1,916 | –189 | –261 | –30,228 | –5,124 | |
| 15. Finance costs | –10,627 | –6,812 | –10,094 | 0 | –317 | –109 | |
| 16. Profit/(loss) from ordinary activities | 273,932 | 231,001 | 108,628 | 64,587 | –1,164 | 21,539 | |
| Combined ratio (property and casualty insurance, after reinsurance) |
91.6% | 91.6% | 86.6% | 90.4% | 102.3% | 102.8% | |
| Cost ratio (after reinsurance) | 18.4% | 19.0% | 12.8% | 14.6% | 23.9% | 27.8% | |
| UNIQA Austria | Raiffeisen Versicherung | UNIQA International | ||||||
|---|---|---|---|---|---|---|---|---|
| in € thousand | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | ||
| Goodwill | ||||||||
| Change in impairment in current year | 0 | 0 | 0 | 0 | –25,000 | 0 | ||
| of which recognised in profit or loss | 0 | 0 | 0 | 0 | –25,000 | 0 | ||
| Investments | ||||||||
| Change in impairment in current year | –11,599 | –33,608 | –25,796 | –33,551 | –193 | –1,157 | ||
| of which recognised in profit or loss | –20,665 | –38,509 | –37,458 | –39,202 | –193 | –1,157 | ||
| of which reversed in profit or loss | 9,066 | 4,901 | 11,662 | 5,652 | 0 | 0 |
| Group | Group functions and consolidation |
Reinsurance | ||||
|---|---|---|---|---|---|---|
| 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | |
| 5,885,506 | 6,064,355 | –1,595,140 | –1,156,866 | 1,633,116 | 1,189,327 | |
| 5,640,873 | 5,839,035 | –30,739 | 4,932 | 1,073,625 | 1,080,886 | |
| 727,931 | 544,654 | 0 | 0 | 0 | 0 | |
| 702,272 | 526,139 | 0 | 0 | 0 | 0 | |
| 5,157,576 | 5,519,700 | –1,595,140 | –1,156,866 | 1,633,116 | 1,189,327 | |
| 4,938,600 | 5,312,896 | –30,739 | 4,932 | 1,073,625 | 1,080,886 | |
| 489,799 | 560,384 | –48,128 | 15,088 | 0 | 0 | |
| 23,508 | 34,492 | –3,784 | 3,392 | 9,333 | 1,115 | |
| –3,959,448 | –4,383,662 | 93,680 | –6,785 | –782,508 | –800,808 | |
| –1,354,167 | –1,275,330 | –36,081 | –9,943 | –333,557 | –335,108 | |
| –89,521 | –97,298 | 19,779 | 18,440 | –12,215 | –12,193 | |
| 48,772 | 151,482 | –5,272 | 25,124 | –45,321 | –66,109 | |
| 780,002 | 864,375 | –15,640 | 28,657 | 21,813 | 31,325 | |
| 40,589 | 62,428 | 15,964 | 21,135 | 5,842 | 5,270 | |
| –489,799 | –560,384 | 48,128 | –15,088 | 0 | 0 | |
| –32,413 | –70,334 | –9,402 | –16,499 | –311 | –975 | |
| 298,379 | 296,084 | 39,051 | 18,204 | 27,344 | 35,621 | |
| 347,151 | 447,566 | 33,779 | 43,328 | –17,976 | –30,488 | |
| –7,301 | –32,292 | 0 | 0 | 0 | 0 | |
| –32,281 | –37,343 | –25,360 | –16,304 | 0 | 0 | |
| 307,569 | 377,932 | 8,419 | 27,024 | –17,976 | –30,488 | |
| 99.8% | 99.5% | 103.6% | 104.8% | |||
| 24.0% | 21.8% | 31.1% | 31.0% | |||
| Reinsurance | Group functions and consolidation |
Group | |||
|---|---|---|---|---|---|
| 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 |
| 0 | 0 | 0 | 0 | –25,000 | 0 |
| 0 | 0 | 0 | 0 | –25,000 | 0 |
| 0 | 0 | –31,489 | –12,921 | –69,077 | –81,236 |
| 0 | 0 | –31,628 | –13,049 | –89,944 | –91,917 |
| 0 | 0 | 139 | 128 | 20,867 | 10,681 |
| Property and casualty insurance | UNIQA Austria | Raiffeisen Versicherung | UNIQA International | ||||
|---|---|---|---|---|---|---|---|
| in € thousand | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | |
| Premiums written (gross) | 1,362,614 | 1,326,241 | 153,154 | 145,664 | 1,084,898 | 1,093,683 | |
| 1. Premiums earned (net) | 753,037 | 747,573 | 79,775 | 76,779 | 588,155 | 599,210 | |
| 2. Technical interest income | 0 | 0 | 0 | 0 | 0 | 0 | |
| 3. Other insurance income | 2,278 | 3,896 | 139 | 169 | 19,818 | 6,000 | |
| 4. Insurance benefits | –516,544 | –493,546 | –57,140 | –52,852 | –372,714 | –366,053 | |
| 5. Operating expenses | –173,126 | –190,869 | –11,963 | –16,584 | –228,898 | –250,232 | |
| 6. Other technical expenses | –16,556 | –20,496 | –992 | –892 | –34,283 | –22,819 | |
| 7. Technical result | 49,089 | 46,559 | 9,820 | 6,619 | –27,921 | –33,894 | |
| 8. Net investment income | 58,264 | 44,010 | 3,539 | 3,521 | 38,178 | 39,071 | |
| 9. Other income | 4,886 | 1,543 | 827 | 2 | 13,385 | 7,237 | |
| 10. Reclassification of technical interest income | 0 | 0 | 0 | 0 | 0 | 0 | |
| 11. Other operating expenses | –11,516 | –7,663 | –120 | –1,090 | –16,851 | –8,731 | |
| 12. Non-technical result | 51,634 | 37,891 | 4,246 | 2,432 | 34,713 | 37,577 | |
| 13. Operating profit/(loss) | 100,723 | 84,450 | 14,066 | 9,051 | 6,791 | 3,683 | |
| 14. Amortisation of goodwill and impairment losses | 0 | 0 | 0 | 0 | –27,847 | –2,549 | |
| 15. Finance costs | 0 | –1,758 | 0 | 0 | –313 | –109 | |
| 16. Profit/(loss) from ordinary activities | 100,723 | 82,692 | 14,066 | 9,051 | –21,368 | 1,025 |
| Health insurance | UNIQA Austria | Raiffeisen Versicherung | UNIQA International | ||||
|---|---|---|---|---|---|---|---|
| in € thousand | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | |
| Premiums written (gross) | 887,275 | 866,218 | 0 | 0 | 73,547 | 71,413 | |
| 1. Premiums earned (net) | 886,949 | 865,169 | 0 | 0 | 71,725 | 69,821 | |
| 2. Technical interest income | 70,555 | 67,257 | 0 | 0 | 0 | 0 | |
| 3. Other insurance income | 118 | 556 | 0 | 0 | 1,406 | 65 | |
| 4. Insurance benefits | –744,309 | –736,231 | 0 | 0 | –45,724 | –42,522 | |
| 5. Operating expenses | –129,966 | –122,605 | 0 | 0 | –30,669 | –28,669 | |
| 6. Other technical expenses | –6,685 | –5,942 | 0 | 0 | –371 | –414 | |
| 7. Technical result | 76,662 | 68,203 | 0 | 0 | –3,632 | –1,719 | |
| 8. Net investment income | 123,906 | 93,588 | 0 | 0 | 1,714 | 1,596 | |
| 9. Other income | 193 | 85 | 0 | 0 | 2,039 | 2,193 | |
| 10. Reclassification of technical interest income | –70,555 | –67,257 | 0 | 0 | 0 | 0 | |
| 11. Other operating expenses | –21 | 0 | 0 | 0 | –1,380 | –434 | |
| 12. Non-technical result | 53,522 | 26,415 | 0 | 0 | 2,374 | 3,355 | |
| 13. Operating profit/(loss) | 130,185 | 94,618 | 0 | 0 | –1,258 | 1,636 | |
| 14. Amortisation of goodwill and impairment losses | 0 | 0 | 0 | 0 | 0 | 0 | |
| 15. Finance costs | 0 | 0 | 0 | 0 | 0 | 0 | |
| 16. Profit/(loss) from ordinary activities | 130,185 | 94,618 | 0 | 0 | –1,258 | 1,636 |
| Group | Group functions and consolidation |
Reinsurance | |||
|---|---|---|---|---|---|
| 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 |
| 2,590,529 | 2,620,922 | –1,553,211 | –1,115,771 | 1,578,152 | 1,136,028 |
| 2,441,490 | 2,482,938 | –29,965 | 6,325 | 1,047,894 | 1,055,646 |
| 0 | 0 | 0 | 0 | 0 | 0 |
| 14,101 | 26,674 | –4,954 | 3,807 | 8,990 | 631 |
| –1,633,846 | –1,723,584 | 34,995 | –1,205 | –756,390 | –775,981 |
| –803,236 | –746,065 | –16,506 | –1,529 | –329,045 | –330,550 |
| –38,666 | –47,791 | 13,301 | 11,716 | –7,761 | –7,677 |
| –20,159 | –7,828 | –3,130 | 19,115 | –36,313 | –57,930 |
| 98,614 | 134,696 | 2,354 | 15,182 | 9,658 | 19,532 |
| 21,692 | 35,119 | 7,088 | 10,785 | 5,822 | 5,237 |
| 0 | 0 | 0 | 0 | 0 | 0 |
| –23,446 | –36,061 | –5,669 | –6,649 | –293 | –926 |
| 96,860 | 133,753 | 3,773 | 19,318 | 15,187 | 23,843 |
| 76,702 | 125,926 | 643 | 38,433 | –21,126 | –34,088 |
| –2,549 | –27,847 | 0 | 0 | 0 | 0 |
| –26,891 | –37,104 | –25,025 | –36,791 | 0 | 0 |
| 47,261 | 60,975 | –24,382 | 1,642 | –21,126 | –34,088 |
| Reinsurance | Group functions and consolidation |
Group | |||
|---|---|---|---|---|---|
| 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 |
| 1,544 | 1,585 | –1,591 | –1,642 | 960,776 | 937,574 |
| 1,424 | 1,258 | –112 | –63 | 959,986 | 936,184 |
| 0 | 0 | 0 | 0 | 70,555 | 67,257 |
| 0 | 0 | 0 | 0 | 1,524 | 621 |
| –252 | –268 | 9,762 | 10,285 | –780,523 | –768,736 |
| –503 | –364 | –2,231 | –10,439 | –163,368 | –162,077 |
| 0 | 0 | –247 | –440 | –7,302 | –6,796 |
| 669 | 626 | 7,172 | –658 | 80,872 | 66,451 |
| 6 | 7 | –8,612 | –15,792 | 117,014 | 79,399 |
| 0 | 0 | 1,819 | 3,601 | 4,051 | 5,879 |
| 0 | 0 | 0 | 0 | –70,555 | –67,257 |
| 0 | 0 | 0 | 0 | –1,401 | –434 |
| 7 | 7 | –6,794 | –12,190 | 49,109 | 17,586 |
| 676 | 632 | 379 | –12,848 | 129,981 | 84,038 |
| 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | –234 | –298 | –234 | –298 |
| 676 | 632 | 144 | –13,146 | 129,747 | 83,740 |
| Life insurance | UNIQA Austria | Raiffeisen Versicherung | UNIQA International | |||||
|---|---|---|---|---|---|---|---|---|
| in € thousand | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | ||
| Premiums written (gross), including savings portion from the unit-linked and index-linked life insurance. |
523,653 | 614,240 | 752,137 | 732,810 | 1,194,618 | 997,262 | ||
| Premiums earned (net), including savings portion from the unit-linked and index-linked life insurance |
497,034 | 583,464 | 714,182 | 690,884 | 1,162,360 | 965,087 | ||
| Savings portion in unit-linked and index-linked life insurance (gross) |
152,378 | 209,844 | 152,378 | 209,844 | 239,898 | 308,243 | ||
| Savings portion in unit-linked and index-linked life insurance (net) |
143,121 | 197,015 | 143,121 | 197,015 | 239,898 | 308,243 | ||
| Premiums written (gross) | 371,274 | 404,396 | 599,758 | 522,966 | 954,720 | 689,019 | ||
| 1. Premiums earned (net) | 353,913 | 386,449 | 571,062 | 493,870 | 922,462 | 656,843 | ||
| 2. Technical interest income | 158,500 | 174,766 | 219,626 | 209,939 | 96,615 | 85,966 | ||
| 3. Other insurance income | 740 | 2,815 | 778 | 357 | 4,706 | 4,099 | ||
| 4. Insurance benefits | –376,372 | –450,741 | –628,066 | –577,131 | –835,200 | –551,543 | ||
| 5. Operating expenses | –90,884 | –104,638 | –89,494 | –95,163 | –175,280 | –175,769 | ||
| 6. Other technical expenses | –14,639 | –14,324 | –13,849 | –15,086 | –16,170 | –17,112 | ||
| 7. Technical result | 31,259 | –5,674 | 60,056 | 16,785 | –2,866 | 2,485 | ||
| 8. Net investment income | 180,845 | 241,488 | 263,509 | 248,115 | 134,437 | 102,439 | ||
| 9. Other income | 2,434 | 612 | 909 | 835 | 11,350 | 6,277 | ||
| 10. Reclassification of technical interest income | –158,500 | –174,766 | –219,626 | –209,939 | –96,615 | –85,966 | ||
| 11. Other operating expenses | –512 | –1,000 | -3 | 0 | –22,458 | –3,782 | ||
| 12. Non-technical result | 24,267 | 66,334 | 44,789 | 39,011 | 26,714 | 18,968 | ||
| 13. Operating profit/(loss) | 55,526 | 60,660 | 104,846 | 55,797 | 23,848 | 21,453 | ||
| 14. Amortisation of goodwill and impairment losses | –1,875 | –1,916 | –189 | –261 | –2,381 | –2,575 | ||
| 15. Finance costs | –10,627 | –5,054 | –10,094 | 0 | -5 | 0 | ||
| 16. Profit/(loss) from ordinary activities | 43,024 | 53,690 | 94,563 | 55,536 | 21,462 | 18,878 |
| Reinsurance | Group functions and consolidation |
Group | |||
|---|---|---|---|---|---|
| 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 | 1–12/2014 | 1–12/2013 |
| 51,755 | 53,379 | –39,505 | –40,288 | 2,482,657 | 2,357,403 |
| 23,815 | 24,474 | –1,280 | –710 | 2,396,111 | 2,263,199 |
| 0 | 0 | 0 | 0 | 544,654 | 727,931 |
| 0 | 0 | 0 | 0 | 526,139 | 702,272 |
| 51,755 | 53,379 | –39,505 | –40,288 | 1,938,002 | 1,629,472 |
| 23,815 | 24,474 | –1,280 | –710 | 1,869,971 | 1,560,927 |
| 0 | 0 | 15,088 | –48,128 | 489,829 | 422,542 |
| 484 | 344 | –415 | 1,171 | 6,294 | 8,786 |
| –24,574 | –25,850 | –15,342 | 48,400 | –1,879,555 | –1,556,865 |
| –4,056 | –4,147 | –6,183 | –9,136 | –365,897 | –388,854 |
| –4,516 | –4,454 | 6,970 | 6,918 | –42,205 | –44,058 |
| –8,848 | –9,633 | –1,163 | –1,484 | 78,438 | 2,479 |
| 11,787 | 12,148 | 22,087 | –2,202 | 612,665 | 601,989 |
| 33 | 20 | 8,532 | 5,275 | 23,258 | 13,019 |
| 0 | 0 | –15,088 | 48,128 | –489,829 | –422,542 |
| –49 | –18 | –9,851 | –3,732 | –32,872 | –8,533 |
| 11,771 | 12,150 | 5,680 | 47,469 | 113,222 | 183,932 |
| 2,924 | 2,517 | 4,517 | 45,985 | 191,660 | 186,411 |
| 0 | 0 | 0 | 0 | –4,445 | –4,752 |
| 0 | 0 | 20,721 | –38 | -5 | –5,092 |
| 2,924 | 2,517 | 25,238 | 45,947 | 187,210 | 176,568 |
| Premiums earned (net) | Net investment income | ||||
|---|---|---|---|---|---|
| in € thousand | 2014 | 2013 | 2014 | 2013 | |
| Switzerland | 8,592 | 7,817 | 251 | 219 | |
| Italy | 777,831 | 514,900 | 79,525 | 73,801 | |
| Liechtenstein | 1,223 | 2,342 | 1,616 | 2,288 | |
| Western Europe (WE) | 787,646 | 525,059 | 81,392 | 76,308 | |
| Czech Republic | 111,833 | 119,161 | 7,178 | 8,486 | |
| Hungary | 56,556 | 58,915 | 5,152 | 8,021 | |
| Poland | 181,181 | 192,406 | 15,136 | 14,907 | |
| Slovakia | 57,566 | 55,488 | 4,201 | 3,573 | |
| Central Europe (CE) | 407,136 | 425,970 | 31,667 | 34,988 | |
| Romania | 58,081 | 71,893 | 4,526 | 5,394 | |
| Ukraine | 59,278 | 80,576 | 9,766 | 5,883 | |
| Eastern Europe (EE) | 117,358 | 152,469 | 14,292 | 11,277 | |
| Albania | 20,229 | 17,360 | 733 | 778 | |
| Bosnia and Herzegovina | 22,683 | 21,448 | 2,404 | 2,044 | |
| Bulgaria | 38,715 | 35,696 | 649 | 1,322 | |
| Croatia | 54,445 | 23,745 | 17,282 | 6,207 | |
| Montenegro | 9,918 | 8,653 | 594 | 525 | |
| Macedonia | 9,977 | 9,343 | 343 | 323 | |
| Serbia | 37,400 | 31,821 | 6,579 | 3,066 | |
| Kosovo | 11,255 | 9,976 | 246 | 459 | |
| Southeastern Europe (SEE) | 204,623 | 158,044 | 28,828 | 14,723 | |
| Russia | 65,578 | 64,332 | 19,541 | 6,006 | |
| Russia (RU) | 65,578 | 64,332 | 19,541 | 6,006 | |
| Austria | 0 | 0 | –1,389 | –196 | |
| Administration | 0 | 0 | –1,389 | –196 | |
| UNIQA International | 1,582,342 | 1,325,874 | 174,330 | 143,106 | |
| of which |
Profit/(loss) from ordinary activities
Insurance
Impairment (Romania)
| Profit/(loss) from ordinary activities |
Operating expenses | Insurance benefits | ||||
|---|---|---|---|---|---|---|
| 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | |
| 460 | 910 | –3,010 | –3,162 | –6,493 | –6,718 | |
| 24,478 | 21,444 | –65,436 | –73,009 | –484,717 | –751,926 | |
| –88 | –4,656 | –2,098 | –2,125 | –811 | –6,527 | |
| 24,850 | 17,698 | –70,545 | –78,296 | –492,021 | –765,172 | |
| 10,823 | 10,283 | –47,992 | –39,182 | –69,026 | –68,989 | |
| 1,717 | –4,642 | –40,870 | –32,890 | –15,743 | –25,329 | |
| 9,423 | 9,852 | –68,988 | –67,078 | –122,167 | –116,624 | |
| 6,996 | 6,474 | –21,294 | –20,547 | –31,517 | –34,879 | |
| 28,958 | 21,967 | –179,143 | –159,698 | –238,454 | –245,821 | |
| –15,972 | –35,533 | –34,605 | –23,621 | –54,689 | –44,889 | |
| 5,914 | 7,273 | –43,316 | –41,279 | –38,178 | –24,697 | |
| –10,058 | –28,261 | –77,921 | –64,899 | –92,866 | –69,586 | |
| 907 | 3,225 | –9,682 | –9,602 | –7,795 | –8,179 | |
| 1,045 | 1,004 | –8,347 | –8,105 | –14,742 | –16,638 | |
| 329 | –4,587 | –16,418 | –17,907 | –19,957 | –25,887 | |
| 1,197 | 3,985 | –9,426 | –22,292 | –18,769 | –42,722 | |
| –1,162 | –334 | –5,255 | –5,088 | –4,736 | –5,312 | |
| –115 | 535 | –6,293 | –4,934 | –3,937 | –5,152 | |
| –3,371 | 2,820 | –14,815 | –17,153 | –21,989 | –20,218 | |
| 405 | 1,192 | –5,655 | –4,618 | –4,404 | –4,787 | |
| –766 | 7,840 | –75,891 | –89,699 | –96,329 | –128,895 | |
| 5,373 | 5,693 | –24,375 | –16,826 | –40,448 | –44,163 | |
| 5,373 | 5,693 | –24,375 | –16,826 | –40,448 | –44,163 | |
| –26,819 | –26,102 | –26,793 | –25,429 | 0 | 0 | |
| –26,819 | –26,102 | –26,793 | –25,429 | 0 | 0 | |
| 21,539 | –1,164 | –454,669 | –434,847 | –960,118 | –1,253,637 |
| 48,358 | 49,938 |
|---|---|
| 0 | –25,000 |
| in € thousand | Carrying amounts 31/12/2013 |
Currency difference |
Additions | Unrealised gains and losses |
|
|---|---|---|---|---|---|
| A. Property, plant and equipment | |||||
| I. Land and buildings for own use | 198,433 | –2,269 | 10,488 | 0 | |
| II. Other property, plant and equipment | |||||
| 1. Other property, plant and equipment | 59,496 | –1,293 | 20,221 | 0 | |
| 2. Inventories | 5,661 | 0 | |||
| 3. Other assets | 22,998 | 13,317 | |||
| Total A. II. | 88,156 | –1,293 | 33,539 | 0 | |
| Total A. | 286,589 | –3,562 | 44,026 | 0 | |
| B. Investment property | 1,652,485 | –23,126 | 57,482 | 0 | |
| C. Intangible assets | |||||
| I. Deferred acquisition costs | 994,501 | –18,263 | 265,859 | 0 | |
| II. Goodwill | |||||
| 1. Goodwill | 471,780 | –11,553 | 16,739 | 0 | |
| 2. Insurance contract portfolio | 38,394 | –34 | 7,025 | 0 | |
| Total C. II. | 510,174 | –11,587 | 23,764 | 0 | |
| III. Other intangible assets | |||||
| 1. Internally-developed software | 2,881 | –226 | 7,158 | 0 | |
| 2. Purchased intangible assets | 21,574 | –682 | 37,703 | 0 | |
| Total C. III. | 24,455 | –908 | 44,861 | 0 | |
| Total C. | 1,529,131 | –30,758 | 334,483 | 0 | |
| D. Investment in associates | 545,053 | 0 | 18 | –7,445 | |
| E. Investments | |||||
| I. Variable-income securities | |||||
| 1. Shares, units and other variable-income securities, including equity | |||||
| investments and shares in affiliated companies | 863,810 | –586 | 190,550 | –19,834 | |
| 2. At fair value through profit or loss | 131,264 | 0 | 16,705 | 0 | |
| Total E. I. | 995,074 | –586 | 207,255 | –19,834 | |
| II. Fixed-income securities | |||||
| 1. Debt securities and other fixed-income securities | 15,136,246 | –47,113 | 9,053,049 | 1,336,461 | |
| 2. At fair value through profit or loss | 439,374 | –30 | 110,607 | 0 | |
| Total E. II. | 15,575,620 | –47,142 | 9,163,656 | 1,336,461 | |
| III. Loans and other investments | |||||
| 1. Loans | |||||
| a) Debt securities issued by and loans to | |||||
| affiliated companies | 1,759 | 0 | 143 | 0 | |
| b) Debt securities issued by and loans to other long-term investees and | |||||
| investors | 1,955 | 0 | 57 | 0 | |
| c) Mortgage receivables | 42,831 | 0 | 2,920 | 0 | |
| d) Loans and advance payments on policies | 12,051 | 24 | 11,658 | 0 | |
| e) Other loan receivables and registered bonds | 886,217 | 167 | 3,518 | 3,057 | |
| Total E. III. 1. | 944,813 | 191 | 18,296 | 3,057 | |
| 2. Bank balances | 1,273,852 | –16,636 | 8,843 | –1,449 | |
| 3. Deposits retained on assumed reinsurance | 126,761 | 0 | 1,197 | 0 | |
| Total E. III. | 2,345,426 | –16,445 | 28,336 | 1,608 | |
| IV. Derivative financial instruments (trading portfolio) | 73,381 | 14 | 97,330 | 0 | |
| V. Investments under investment agreements | 48,590 | –557 | 5,631 | 0 | |
| Total E. | 19,038,091 | –64,716 | 9,502,208 | 1,318,234 | |
| F. Unit-linked and index-linked life insurance investments | 5,332,611 | –15,076 | 2,345,571 | 25,956 | |
| Grand total | 28,383,959 | –137,237 | 12,283,789 | 1,336,745 |
| Carrying amount 31/12/2014 |
Depreciation, amortisation and impairment losses |
Reversal of impairment losses |
Disposals | Reclassifications | Redemption |
|---|---|---|---|---|---|
| 187,746 | 8,268 | 0 | 7,216 | –3,421 | 0 |
| 54,138 | 16,462 | 0 | 3,674 | –4,151 | 0 |
| 5,307 | 354 | ||||
| 36,315 | 0 | ||||
| 95,760 | 16,462 | 0 | 4,028 | –4,151 | 0 |
| 283,506 | 24,731 | 0 | 11,244 | –7,573 | 0 |
| 1,504,483 | 79,066 | 38 | 110,905 | 7,573 | 0 |
| 998,952 | 243,145 | 0 | 0 | 0 | 0 |
| 451,966 | 25,000 | 0 | 0 | 0 | 0 |
| 38,093 | 7,292 | 0 | 0 | 0 | 0 |
| 490,059 | 32,292 | 0 | 0 | 0 | 0 |
| 4,014 | 637 | 0 | 5,161 | 0 | 0 |
| 24,032 | 30,103 | 0 | 4,461 | 0 | 0 |
| 28,046 | 30,740 | 0 | 9,621 | 0 | 0 |
| 1,517,058 | 306,177 | 0 | 9,621 | 0 | 0 |
| 528,681 | 1,781 | 21,390 | 28,554 | 0 | 0 |
| 625,189 | 28,335 | 6,315 | 392,988 | 6,257 | 1 |
| 98,005 | 11,891 | 10,851 | 48,803 | –121 | 0 |
| 723,194 | 40,226 | 17,166 | 441,792 | 6,136 | 1 |
| 18,016,323 | 29,901 | 121,530 | 7,529,555 | 279 | –24,674 |
| 364,630 | 58,249 | 32,833 | 159,566 | 121 | –460 |
| 18,380,953 | 88,149 | 154,363 | 7,689,121 | 400 | –25,134 |
| 1,800 | 0 | 0 | 101 | 0 | 0 |
| 0 | 0 | 0 | 2,012 | 0 | 0 |
| 34,651 | 1,019 | 642 | 10,723 | 0 | 0 |
| 14,236 | 9 | 0 | 9,488 | 0 | 0 |
| 784,916 | 4,279 | 931 | 100,031 | –7,056 | 2,391 |
| 835,603 | 5,306 | 1,574 | 122,356 | –7,056 | 2,391 |
| 390,046 | 1,096 | 8,096 | 881,524 | 0 | –41 |
| 123,554 | 0 | 0 | 4,405 | 0 | 0 |
| 1,349,202 | 6,402 | 9,670 | 1,008,285 | –7,056 | 2,350 |
| 122,340 | 39,993 | 46,657 | 55,049 | 0 | 0 |
| 53,664 | 0 | 0 | 0 | 0 | 0 |
| 20,629,354 | 174,770 | 227,857 | 9,194,247 | –520 | –22,783 |
| 5,386,650 | 104,321 | 269,202 | 2,467,813 | 520 | 0 |
| 29,849,731 | 690,845 | 518,487 | 11,822,385 | 0 | –22,783 |
| in € thousand | Carrying amount 31/12/2012 |
Currency difference |
Additions | Unrealised gains and losses |
|
|---|---|---|---|---|---|
| A. Property, plant and equipment | |||||
| I. Land and buildings for own use | 194,151 | –2,381 | 24,651 | 0 | |
| II. Other property, plant and equipment | |||||
| 1. Other property, plant and equipment | 58,342 | –375 | 19,303 | 0 | |
| 2. Inventories | 5,465 | 196 | |||
| 3. Other assets | 48,796 | 0 | |||
| Total A. II. | 112,604 | –375 | 19,499 | 0 | |
| Total A. | 306,755 | –2,756 | 44,150 | 0 | |
| B. Investment property | 1,690,763 | –5,772 | 61,315 | 0 | |
| C. Intangible assets | |||||
| I. Deferred acquisition costs | 931,981 | –4,117 | 265,135 | 0 | |
| II. Goodwill | |||||
| 1. Goodwill | 477,964 | –3,691 | 0 | 0 | |
| 2. Insurance contract portfolio | 45,789 | –94 | 0 | 0 | |
| Total C. II. | 523,753 | –3,785 | 0 | 0 | |
| III. Other intangible assets | |||||
| 1. Internally-developed software | 2,460 | –47 | 852 | 0 | |
| 2. Purchased intangible assets | 22,709 | –472 | 10,595 | 0 | |
| Total C. III. | 25,170 | –519 | 11,447 | 0 | |
| Total C. | 1,480,903 | –8,420 | 276,582 | 0 | |
| D. Investment in associates | 544,522 | 0 | 0 | –11,367 | |
| E. Investments | |||||
| I. Variable-income securities | |||||
| 1. Shares, units and other variable-income securities, including equity | |||||
| investments and shares in affiliated companies | 1,399,352 | –814 | 284,264 | –7,807 | |
| 2. At fair value through profit or loss | 371,262 | -2 | 89,534 | 0 | |
| Total E. I. | 1,770,614 | –816 | 373,797 | –7,807 | |
| II. Fixed-income securities | |||||
| 1. Debt securities and other fixed-income securities | 13,186,622 | –31,434 | 6,429,167 | –166,901 | |
| 2. At fair value through profit or loss | 441,623 | 1 | 33,259 | 0 | |
| Total E. II. | 13,628,244 | –31,433 | 6,462,426 | –166,901 | |
| III. Loans and other investments | |||||
| 1. Loans | |||||
| a) Debt securities issued by and loans to | |||||
| affiliated companies | 1,421 | -2 | 482 | 0 | |
| b) Debt securities issued by and loans to other long-term investees and | |||||
| investors | 552 | 0 | 4,082 | 0 | |
| c) Mortgage receivables | 51,399 | 0 | 1,045 | 0 | |
| d) Loans and advance payments on policies | 13,011 | -6 | 3,753 | 0 | |
| e) Other loan receivables and registered bonds | 1,023,265 | –366 | 7,880 | 3,636 | |
| Total E. III. 1. | 1,089,649 | –374 | 17,243 | 3,636 | |
| 2. Bank balances | 1,189,217 | –10,593 | 84,959 | 881 | |
| 3. Deposits retained on assumed reinsurance | 129,755 | 0 | 1,126 | 0 | |
| Total E. III. | 2,408,621 | –10,966 | 103,327 | 4,517 | |
| IV. Derivative financial instruments (trading portfolio) | 62,206 | –36 | 78,784 | 0 | |
| V. Investments under investment agreements | 43,064 | 0 | 5,526 | 0 | |
| Total E. | 17,912,749 | –43,252 | 7,023,861 | –170,192 | |
| F. Unit-linked and index-linked life insurance investments | 5,023,764 | –10,859 | 1,988,256 | 1,272 | |
| Grand total | 26,959,457 | –71,060 | 9,394,164 | –180,286 |
| Redemption | Reclassifications | Disposals | Reversal of impairment losses |
Depreciation, amortisation and impairment losses |
Carrying amounts 31/12/2013 |
|---|---|---|---|---|---|
| 0 | –10,673 | 229 | 0 | 7,087 | 198,433 |
| 0 | –376 | 2,297 | 0 | 15,101 | 59,496 |
| 0 | 5,661 | ||||
| 25,799 | 22,998 | ||||
| 0 | –376 | 28,095 | 0 | 15,101 | 88,156 |
| 0 | –11,049 | 28,324 | 0 | 22,188 | 286,589 |
| 0 | 11,045 | 41,142 | 0 | 63,723 | 1,652,485 |
| 0 | 0 | 0 | 0 | 198,498 | 994,501 |
| 0 0 |
0 0 |
2,493 0 |
0 0 |
0 7,301 |
471,780 38,394 |
| 0 | 0 | 2,493 | 0 | 7,301 | 510,174 |
| 0 | 351 | 102 | 0 | 633 | 2,881 |
| 0 | –347 | 2,091 | 21 | 8,842 | 21,574 |
| 0 | 3 | 2,193 | 21 | 9,474 | 24,455 |
| 0 | 3 | 4,687 | 21 | 215,272 | 1,529,131 |
| 0 | 0 | 7,964 | 24,471 | 4,609 | 545,053 |
| -5 | 0 | 778,690 | 3,954 | 36,443 | 863,810 |
| –339 | 0 | 329,133 | 15,688 | 15,746 | 131,264 |
| –344 | 0 | 1,107,823 | 19,643 | 52,189 | 995,074 |
| 2,199 1,848 |
–303 0 |
4,154,517 37,111 |
86,079 16,638 |
214,665 16,884 |
15,136,246 439,374 |
| 4,047 | –303 | 4,191,628 | 102,717 | 231,549 | 15,575,620 |
| 0 | 0 | 142 | 0 | 0 | 1,759 |
| 0 | 0 | 2,679 | 0 | 0 | 1,955 |
| 0 | –1,293 | 9,433 | 1,112 | 0 | 42,831 |
| 0 | 0 | 4,718 | 31 | 21 | 12,051 |
| 922 | 1,293 | 149,647 | 16 | 783 | 886,217 |
| 922 | 0 | 166,620 | 1,159 | 804 | 944,813 |
| 41 | 0 | 0 | 9,926 | 579 | 1,273,852 |
| 0 | 0 | 4,119 | 0 | 0 | 126,761 |
| 963 | 0 | 170,739 | 11,086 | 1,383 | 2,345,426 |
| 0 | 0 | 52,114 | 43,736 | 59,194 | 73,381 |
| 0 | 0 | 0 | 0 | 0 | 48,590 |
| 4,667 | –303 | 5,522,305 | 177,181 | 344,316 | 19,038,091 |
| 790 | 303 | 1,727,634 | 130,114 | 73,395 | 5,332,611 |
| 5,456 | 0 | 7,332,056 | 331,787 | 723,502 | 28,383,959 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Carrying amount by segment | ||
| Property and casualty insurance | 82,868 | 85,728 |
| Health insurance | 10,963 | 11,545 |
| Life insurance | 93,915 | 101,159 |
| 187,746 | 198,433 | |
| Fair value by segment | ||
| Property and casualty insurance | 105,658 | 115,391 |
| Health insurance | 13,849 | 14,648 |
| Life insurance | 150,082 | 148,060 |
| 269,589 | 278,098 | |
| Cost | 288,860 | 295,133 |
| Accumulated depreciation | –101,114 | –96,701 |
| Carrying amounts | 187,746 | 198,433 |
| Useful life of land and buildings | 10–80 years | 10–80 years |
| Additions from company acquisitions in € thousand |
31/12/2014 | 31/12/2013 |
| Land and buildings for own use | 4,589 | 0 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Other property, plant and equipment | 54,138 | 59,496 |
| Inventories | 5,307 | 5,661 |
| Other assets | 36,315 | 22,998 |
| Total | 95,760 | 88,156 |
| Changes in the financial year in € thousand |
|
|---|---|
| Cost at 31/12/2013 | 205,775 |
| Accumulated depreciation at 31/12/2013 | –146,278 |
| Carrying amount at 31/12/2013 | 59,496 |
| Changes due to currency translation | –1,293 |
| Additions | 20,221 |
| Disposals | –3,674 |
| Reclassifications | –4,151 |
| Depreciation, impairment losses and reversal of impairment losses | –16,462 |
| Carrying amount as at 31/12/2014 | 54,138 |
| Cost as at 31/12/2014 | 212,585 |
| Accumulated depreciation at 31/12/2014 | –158,447 |
| Carrying amount as at 31/12/2014 | 54,138 |
Property, plant and equipment refers mainly to operating and office equipment. It is depreciated over its useful life of 4 to 10 years. The depreciation charges are recognised in the income statement on the basis of allocated operating expenses under the items insurance benefits, operating expenses and net investment income.
| Additions from company acquisitions | 31/12/2014 | 31/12/2013 |
|---|---|---|
| in € thousand | ||
| Other property, plant and equipment | 2,118 | 0 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Carrying amount by segment | ||
| Property and casualty insurance | 219,380 | 216,642 |
| Health insurance | 312,145 | 287,568 |
| Life insurance | 972,958 | 1,148,275 |
| 1,504,483 | 1,652,485 | |
| Fair value by segment | ||
| Property and casualty insurance | 384,130 | 343,874 |
| Health insurance | 497,845 | 366,289 |
| Life insurance | 1,354,047 | 1,662,408 |
| 2,236,021 | 2,372,571 | |
| Cost | 2,109,251 | 2,217,125 |
| Accumulated depreciation | –604,769 | –564,640 |
| Carrying amounts | 1,504,483 | 1,652,485 |
| Useful lives for land and buildings | 10–80 years | 10–80 years |
| Additions from company acquisitions in € thousand |
31/12/2014 | 31/12/2013 |
| Investment property | 9,835 | 0 |
| in € thousand | 31/12/2014 |
|---|---|
| Change in impairment in current year | 33,282 |
| of which recognised in profit or loss | 33,282 |
| in € thousand | 2014 | 2013 |
|---|---|---|
| Property and casualty insurance | ||
| At 1/1 | 162,718 | 163,273 |
| Changes due to currency translation | –3,507 | –2,231 |
| Change in basis of consolidation | 564 | 0 |
| Additions | 99,338 | 97,783 |
| Amortisation | –95,005 | –96,107 |
| At 31/12 | 164,107 | 162,718 |
| Health insurance | ||
| At 1/1 | 222,472 | 222,889 |
| Changes due to currency translation | –142 | –284 |
| Change in basis of consolidation | 0 | 0 |
| Additions | 10,152 | 12,300 |
| Interest capitalised | 7,571 | 7,466 |
| Amortisation | –17,122 | –19,898 |
| At 31/12 | 222,933 | 222,472 |
| Life insurance | ||
| At 1/1 | 609,311 | 545,819 |
| Changes due to currency translation | –14,614 | –1,602 |
| Change in basis of consolidation | 10,564 | 0 |
| Additions | 128,751 | 132,608 |
| Interest capitalised | 8,918 | 14,978 |
| Amortisation | –131,019 | –82,492 |
| At 31/12 | 611,912 | 609,311 |
| In the consolidated financial statements | ||
| At 1/1 | 994,501 | 931,981 |
| Changes due to currency translation | –18,263 | –4,117 |
| Change in basis of consolidation | 11,128 | 0 |
| in € thousand | Goodwill | Insurance contract portfolio |
|---|---|---|
| Cost at 31/12/2013 | 567,646 | 175,942 |
| Accumulated amortisation and impairment losses at 31/12/2013 | –95,866 | –137,548 |
| Carrying amount at 31/12/2013 | 471,780 | 38,394 |
| Cost as at 31/12/2014 | 572,951 | 169,340 |
| Accumulated amortisation at 31/12/2014 | –120,985 | –131,246 |
| Carrying amount at 31/12/2014 | 451,966 | 38,093 |
Additions 238,241 242,691 Interest capitalised 16,490 22,444 Amortisation –243,145 –198,498 At 31/12 998,952 994,501
There were additions in 2014 in Croatia and Serbia – see also information on the basis of consolidation, page 106. An impairment loss of €25,000 thousand was recognised on the goodwill of the Romanian company UNIQA Asigurari S.A. (UNIQA International segment). This amount is included in item 14 amortisation of goodwill and impairment losses on the consolidated income statement.
| in € thousand | Goodwill | Insurance contract portfolio |
|---|---|---|
| Accumulated amortisation at 31/12/2014 | 120,985 | 131,246 |
| of which impairment losses | 82,661 | 0 |
| of which current amortisation | 38,324 | 131,246 |
| in € thousand | 31/12/2014 |
|---|---|
| Change in impairment in current year | 25,000 |
| of which recognised in profit or loss | 25,000 |
Due to the continuing difficult market environment in Romania, the budget figures were revised, resulting in a need for impairment.
| Goodwill per country in € thousand |
31/12/2014 | 31/12/2013 |
|---|---|---|
| Austria | 39,757 | 39,757 |
| Germany | 930 | 930 |
| Italy | 121,718 | 121,718 |
| Western Europe (WE) | 122,647 | 122,647 |
| Czech Republic | 7,647 | 7,733 |
| Hungary | 16,996 | 18,063 |
| Poland | 27,828 | 28,624 |
| Slovakia | 1,423 | 1,423 |
| Central Europe (CE) | 53,894 | 55,842 |
| Romania | 105,198 | 126,394 |
| Ukraine | 16,223 | 28,438 |
| Eastern Europe (EE) | 121,421 | 154,832 |
| Albania | 20,259 | 20,170 |
| Bosnia and Herzegovina | 1,887 | 1,887 |
| Bulgaria | 55,926 | 55,926 |
| Croatia | 16,578 | 384 |
| Montenegro | 81 | 81 |
| Serbia | 19,403 | 20,104 |
| Cyprus | 63 | 63 |
| Southaastern Europe (SEE) | 114,197 | 98,614 |
| Russia (RU) | 49 | 87 |
| Total | 451,966 | 471,780 |
| Company acquisitions 2014 in € thousand |
Amounts recognised at the time of acquisition |
Carrying amount of the acquired companies |
|
|---|---|---|---|
| Assets | 357,816 | 357,816 | |
| Property, plant and equipment | 6,706 | 6,706 | |
| Investment property | 9,835 | 9,835 | |
| Intangible assets | 18,987 | 18,987 | |
| Investment in associates | 0 | 0 | |
| Investments | 298,986 | 298,986 | |
| Unit-linked and index-linked life insurance investments | 4 | 4 | |
| Reinsurers' share of technical provisions | 2,867 | 2,867 | |
| Receivables including insurance receivables | 17,199 | 17,199 | |
| Income tax receivables | 0 | 0 | |
| Deferred tax assets | 131 | 131 | |
| Current bank balances and cash-in-hand | 3,100 | 3,100 | |
| Equity and liabilities | 357,816 | 357,816 | |
| Total equity | 58,405 | 58,405 | |
| Subordinated liabilities | 0 | 0 | |
| Technical provisions | 283,375 | 283,375 | |
| Technical provisions for unit-linked and index-linked life insurance |
4 | 4 | |
| Financial liabilities | 0 | 0 | |
| Other provisions | 136 | 136 | |
| Liabilities and other items classified as equity and liabilities | 13,716 | 13,716 | |
| Income tax liabilities | 0 | 0 | |
| Deferred tax liabilities | 2,180 | 2,180 | |
| Currency difference at first entry | 0 | 0 |
| in € thousand | Internally- developed software |
Purchased intangible assets |
|---|---|---|
| Cost at 31/12/2013 | 40,560 | 137,329 |
| Accumulated amortisation at 31/12/2013 | –37,679 | –115,755 |
| Carrying amount at 31/12/2013 | 2,881 | 21,574 |
| Cost as at 31/12/2014 | 14,253 | 168,705 |
| Accumulated amortisation at 31/12/2014 | –10,238 | –144,673 |
| Carrying amount as at 31/12/2014 | 4,014 | 24,032 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Computer software | 22,561 | 20,432 |
| Copyrights | 13 | 0 |
| Licences | 904 | 1,655 |
| Other intangible assets | 4,569 | 2,369 |
| 28,046 | 24,455 |
| Useful life | ||
|---|---|---|
| Internally-developed software | 2–5 years | 2–5 years |
| Purchased intangible assets | 2–5 years | 2–5 years |
The intangible assets include purchased and internally developed computer software as well as licenses and copyrights.
The amortisation and impairment losses of the other intangible assets were recognised in the income statement on the basis of allocated operating expenses under the items of insurance benefits, operating expenses and net investment income.
The intangible assets are amortised using the straight-line method.
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Self-developed software | 0 | 0 |
| Acquired intangible assets | 825 | 0 |
| in € thousand | 2014 | 2013 |
| Research and development expenditure recognised | ||
| as an expense during the reporting period | 2,500 | 642 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Carrying amounts for | ||
| Investments in companies accounted for under the equity method | 528,681 | 545,053 |
Investments in associates of minor importance are shown on the balance sheet under variableincome securities as available for sale (Assets E. I. 1.). The Group now owns just 50 per cent of Dekra Expert Muszaki Szakertöi Kft., which was consolidated up until now. Therefore, this company is managed as a company accounted for under equity method accounting as of 31 December 2014.
| Investment in associates in € thousand |
31/12/2014 | 31/12/2013 |
|---|---|---|
| Fair value of associates listed on a public stock exchange (STRABAG SE) |
285,029 | 355,040 |
| Profits/losses for the period | 19,970 | 20,023 |
Because of the later publication of Strabag SE's financial accounting that is relevant for the stock exchange, the information regarding the 2014 financial year was published in accordance with IFRS 12 with the amounts from 30 September 2014. To estimate the profit/(loss) for the full year, information was used that is available to the Group because of its significant influence.
| Statement of financial position and profit/(loss) figures for companies accounted for under the equity method in € thousand |
Strabag (30/9/2014) |
Other (31/12/2013) |
Strabag (30/9/2013) |
Other (31/12/2012) |
|---|---|---|---|---|
| Statement of financial position | ||||
| Cash and cash equivalents | 1,135,414 | 25,133 | 1,064,745 | 33,273 |
| Other current assets | 4,955,002 | 422,304 | 4,732,573 | 472,510 |
| Current assets | 6,090,416 | 447,437 | 5,797,318 | 505,783 |
| Non-current assets | 4,404,058 | 173,038 | 4,501,962 | 157,449 |
| Total assets | 10,494,474 | 620,475 | 10,299,280 | 663,232 |
| Current financial liabilities | 2,324,559 | 103,325 | 396,380 | 84,992 |
| Other current liabilities | 1,517 | 59,487 | 4,284,157 | 33,992 |
| Current liabilities | 2,326,076 | 162,812 | 4,680,537 | 118,984 |
| Non-current financial liabilities | 4,608,441 | 248,955 | 1,377,912 | 301,652 |
| Other non-current liabilities | 391,310 | 16,079 | 1,129,817 | 32,143 |
| Non-current liabilities | 4,999,751 | 265,034 | 2,507,729 | 333,795 |
| Total liabilities | 7,325,827 | 427,846 | 7,188,266 | 452,779 |
| Consolidated income statement | ||||
| Sales | 8,892,290 | 161,955 | 8,806,467 | 147,226 |
| Depreciation, amortisation and impairment losses | –285,543 | –3,277 | –289,222 | –1,940 |
| Interest income | 44,177 | 15,224 | 45,850 | 47 |
| Interest expenses | 69,031 | –32,776 | –64,456 | –10,320 |
| Profit before taxes | 39,425 | 3,126 | 21,021 | –72,996 |
| Taxes on income | –19,150 | –10,972 | –12,459 | –3,581 |
| Profit after taxes | 20,275 | –7,917 | 8,562 | –77,780 |
| Other comprehensive income | –32,463 | 6 | –13,467 | 0 |
| Total comprehensive income | –12,188 | –7,911 | –4,905 | –77,780 |
| Shares in equity-accounted companies in € thousand |
2014 | 2013 |
|---|---|---|
| Carrying amount at 1/1 | 545,053 | 544,522 |
| Additions | 18 | 0 |
| Disposals | –20,690 | –4,017 |
| Total adjustment to comprehensive income | 12,164 | 8,495 |
| dividends received | –7,865 | –3,947 |
| Carrying amount at 31/12 | 528,681 | 545,053 |
| in € thousand | 31/12/2014 | 31/12/2013 | |
|---|---|---|---|
| Assets | |||
| A. Property, plant and equipment | |||
| II. Other property, plant and equipment | 7 | 0 | |
| E. Investments | |||
| II. Fixed-income securities | |||
| 1. Available for sale | 43,909 | 0 | |
| III. Loans and other investments | |||
| 1. Loans | 8,317 | 0 | |
| F. Unit-linked and index-linked life insurance investments | 96,368 | 0 | |
| I. Receivables, including insurance receivables | |||
| II. Other receivables | 1,485 | 0 | |
| III. Other assets | 6 | 0 | |
| J. Income tax receivables | 4 | 0 | |
| K. Deferred tax assets | 58 | 0 | |
| L. Current bank balances and cash-in-hand | 10,899 | 0 | |
| M. Assets in disposal groups held for sale | 161,053 | 0 |
| in € thousand | 31/12/2014 | 31/12/2013 | |
|---|---|---|---|
| Equity and liabilities | |||
| C. Technical provisions | |||
| II. Insurance provision | 58,682 | 0 | |
| III. Provision for unsettled claims | 983 | 0 | |
| V. Provision for profit-related premium refunds and/or policyholder profit participation | 2,573 | 0 | |
| D. Technical provisions for unit-linked and | |||
| index-linked life insurance | 96,072 | 0 | |
| F. Other provisions | |||
| II. Other provisions | 38 | 0 | |
| G. Liabilities and other items classified as equity and liabilities | |||
| II. Other liabilities | 380 | 0 | |
| H. Income tax liabilities | 1 | 0 | |
| I. Deferred tax liabilities | 377 | 0 | |
| J. Liabilities in disposal groups held for sale | 159,107 | 0 |
The sale of UNIQA Lebensversicherung AG, Vaduz, was decided in the fourth quarter of 2014, and the asset and liability items for this company are broken down here.
| Type of investment | Cost | Fluctuation in value not recognised in profit or loss |
Accumulated valuation Exchange differences allowances through profit or loss |
Fair values | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| in € thousand | 31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 | |||||||||
| Shares in affiliated companies | 21,708 | 17,587 | 0 | 0 | 0 | 0 | 0 | 0 | 21,708 | 17,587 |
| Equity | 48,393 | 134,805 | 4,278 | 99,297 | –22,155 | –21,578 | 0 | 0 | 30,516 | 212,524 |
| Equity funds | 267,141 | 271,512 | 29,567 | 32,889 | –19,386 | –18,926 | 0 | 0 | 277,322 | 285,475 |
| Bonds not capital-guaranteed | 27,812 | 207,731 | –122 | –840 | –11,842 | –24,903 | 0 | 0 | 15,848 | 181,987 |
| Other variable-income securities | 30,097 | 34,094 | –3,696 | –32 | 0 | 0 | 0 | 0 | 26,402 | 34,063 |
| Equity investments and other | ||||||||||
| investments | 217,430 | 139,759 | 65,833 | 10,909 | –29,869 | –18,495 | 0 | 0 | 253,394 | 132,174 |
| Fixed-income securities | 16,647,139 15,143,349 | 1,536,105 | 335,193 | –190,599 | –246,556 | 23,677 | –95,741 18,016,323 | 15,136,246 | ||
| Total | 17,259,720 15,948,837 | 1,631,966 | 477,417 | –273,851 | –330,458 | 23,677 | –95,741 18,641,512 16,000,055 |
| Type of investment | Accumulated valuation allowances |
of which prior year cumulative |
of which current year |
|||
|---|---|---|---|---|---|---|
| in € thousand | 31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 | |||||
| Shares in affiliated companies | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity | –22,155 | –21,578 | –20,611 | –11,109 | –1,543 | –10,470 |
| Equity funds | –19,386 | –18,926 | –18,024 | –12,985 | –1,362 | –5,941 |
| Bonds not capital-guaranteed | –11,842 | –24,903 | –8,436 | –14,403 | –3,406 | –10,500 |
| Other variable-income securities | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity investments and other investments | –29,869 | –18,495 | –16,007 | –15,407 | –13,862 | –3,088 |
| Fixed-income securities | –190,599 | –246,556 | –180,485 | –207,349 | –10,114 | –39,208 |
| Total | –273,851 | –330,458 | –243,564 | –261,252 | –30,287 | –69,206 |
| Type of investment | Change in valuation allowance current year |
of which impairment/ reversal of impairment loss through profit or loss |
of which change due to disposal |
Reversal of impairment loss – equity |
|
|---|---|---|---|---|---|
| in € thousand | 31/12/2014 | 31/12/2014 | 31/12/2014 | 31/12/2014 | |
| Shares in affiliated companies | 0 | 0 | 0 | 0 | |
| Equity | –576 | –1,543 | 945 | 22 | |
| Equity funds | –461 | –1,362 | 703 | 198 | |
| Bonds not capital-guaranteed | 13,061 | –3,406 | 16,467 | 0 | |
| Other variable-income securities | 0 | 0 | 0 | 0 | |
| Equity investments and other investments | –11,374 | –13,862 | 2,488 | 0 | |
| Fixed-income securities | 55,957 | –10,114 | 66,071 | 0 | |
| Total | 56,607 | –30,287 | 86,674 | 220 |
| Change in equity | Recognised directly in equity |
Withdrawal through profit or loss1) |
Change in unrealised gains/losses |
|||
|---|---|---|---|---|---|---|
| in € thousand | 31/12/2014 31/12/2013 31/12/2014 31/12/2013 31/12/2014 31/12/2013 | |||||
| Other available-for-sale securities2) | ||||||
| Gross | 1,318,234 | –170,192 | –174,736 | –239,082 | 1,143,498 | –409,274 |
| Deferred tax | –127,346 | 21,194 | 11,112 | 28,104 | –116,234 | 49,299 |
| Deferred profit participation | –893,479 | 76,778 | 98,135 | 150,511 | –795,344 | 227,290 |
| Proportion of non-controlling interests | 1,326 | 158 | 399 | 428 | 1,725 | 586 |
| Net | 298,735 | –72,062 | –65,090 | –60,038 | 233,645 | –132,099 |
1) Withdrawals through profit or loss due to disposals and impairments.
2) Including reclassified securities.
The table below depicts the financial instruments for which subsequent valuation is performed at the current market value.
| Assets at fair value | Level 1 | Level 2 | Level 3 | Group total |
|---|---|---|---|---|
| in € thousand | 31/12/2014 | 31/12/2014 | 31/12/2014 | 31/12/2014 |
| Available-for-sale securities | 14,164,806 | 3,852,616 | 624,090 | 18,641,512 |
| Shares in affiliated companies | 103 | 21,593 | 12 | 21,708 |
| Shares | 6,908 | 23,285 | 323 | 30,516 |
| Equity funds | 224,880 | 52,442 | 0 | 277,322 |
| Bonds not capital-guaranteed | 3,506 | 12,342 | 0 | 15,848 |
| Other variable-income securities | 0 | 26,402 | 0 | 26,402 |
| Equity investments and other investments | 0 | 59,359 | 194,035 | 253,394 |
| Fixed-income securities | 13,929,409 | 3,657,195 | 429,719 | 18,016,323 |
| Assessed at fair value through profit or loss | 158,976 | 295,468 | 8,191 | 462,635 |
| Derivative financial instruments1) | 0 | 89,851 | 0 | 89,851 |
| Total | 14,323,782 | 4,237,935 | 632,281 | 19,193,998 |
1) See Table 10 for details
No transfers between Levels 1 and 2 took place during the reporting period. The entire portfolio of asset-backed securities was classified as Level 3 within fixed-income securities. Other shares and equity investments (RZB shares) for which there is a valuation report were also classified in Level 3. Otherwise, there are no other Level 3 assets as at 31 December 2014.
| Assets at fair value | Level 1 | Level 2 | Level 3 | Group total |
|---|---|---|---|---|
| in € thousand | 31/12/2013 | 31/12/2013 | 31/12/2013 | 31/12/2013 |
| Available-for-sale securities | 13,266,081 | 2,006,732 | 727,242 | 16,000,055 |
| Shares in affiliated companies | 175 | 17,400 | 12 | 17,587 |
| Shares | 13,868 | 21,663 | 176,993 | 212,524 |
| Equity funds | 260,289 | 25,185 | 1 | 285,475 |
| Bonds not capital-guaranteed | 7,946 | 174,042 | 0 | 181,987 |
| Other variable-income securities | 0 | 34,063 | 0 | 34,063 |
| Equity investments and other investments | 1,119 | 61,527 | 69,527 | 132,174 |
| Fixed-income securities | 12,982,685 | 1,672,853 | 480,708 | 15,136,246 |
| Assessed at fair value through profit or loss | 182,152 | 382,768 | 5,718 | 570,638 |
| Derivative financial instruments1) | 561 | 64,519 | 0 | 65,079 |
| Total | 13,448,794 | 2,454,019 | 732,959 | 16,635,773 |
1) See Table 10 for details
There were also no transfers made between Levels 1 and 2 in the previous year. The entire portfolio of asset-backed securities was classified as Level 3 within fixed-income securities. Other shares (RZB shares) and equity investments for which there is a valuation report were also classified in Level 3. Otherwise there are no other Level 3 assets as at 31 December 2013.
| Level 3 assets at fair value in € thousand |
Available-for-sale securities |
Assessed at fair value through profit or loss |
Derivative financial instruments |
Total |
|---|---|---|---|---|
| At 1/1/2014 | 727,242 | 5,718 | 0 | 732,959 |
| Foreign exchange differences | -1 | 0 | 0 | -1 |
| Total gains/losses included in income statement | 24,244 | 1,762 | 0 | 26,006 |
| Total gains/losses included in equity (revaluation | ||||
| reserve) | –6,404 | 0 | 0 | –6,404 |
| Purchases | 7,864 | 901 | 0 | 8,766 |
| Sales | –128,993 | –52 | 0 | –129,045 |
| Issues | 0 | 0 | 0 | 0 |
| Redemptions | 0 | 0 | 0 | 0 |
| Amounts carried forward | 138 | –138 | 0 | 0 |
| At 31/12/2014 | 624,090 | 8,191 | 0 | 632,281 |
The sensitivity analysis is mainly concerned with the ABS portfolio and the RZB shares.
The sensitivity analysis of the ABS portfolio with regard to a rise or a fall in the default rates in the investments underlying the ABS structures is based on the forecast values from Moody's Investors Service.
The sensitivities for these model-based analyses of the securities are also determined using Moody's default scenarios. According to Moody's, these default scenarios correspond to the 10 per cent quantile or the 90 per cent quantile of the distribution function of the defaults.
| Sensitivity analysis ABS 2014 in € thousand |
Upside | Downside | |
|---|---|---|---|
| Total gains/losses | 195 | –1,245 | |
| Through profit or loss | 65 | –260 | |
| Through equity | 130 | –985 | |
The sensitivity analysis of the RZB shares was determined in the course of a valuation report and relates to a change in the discount interest rate and the increase or decrease in the growth rate.
| Sensitivity analysis RZB 2014 in € thousand |
Upside | Downside |
|---|---|---|
| Effect of changes in the discount insurance rate (+/–1 per cent) | 18,600 | –14,900 |
| Through profit or loss | 0 | 0 |
| Through equity | 18,600 | –14,900 |
| Effect of changes in the growth rate (+/–1 per cent) | 300 | –400 |
| Through profit or loss | 0 | 0 |
| Through equity | 300 | –400 |
| Level 3 assets at fair value in € thousand |
Available-for-sale securities |
At fair value through profit or loss |
Derivative financial instruments |
Total |
|---|---|---|---|---|
| As at 1/1/2013 | 598,483 | 4,659 | 0 | 603,143 |
| Foreign exchange differences | 11 | 0 | 0 | 11 |
| Total gains/losses included in income statement | –19,916 | 1,047 | 0 | –18,869 |
| Total gains/losses included in equity (revaluation | ||||
| reserve) | 10,393 | 0 | 0 | 10,393 |
| Purchases | 2,858 | 386 | 0 | 3,244 |
| Sales | –147,400 | 0 | 0 | –147,400 |
| Issues | 0 | 0 | 0 | 0 |
| Redemptions | -2 | –100 | 0 | –103 |
| Amounts carried forward | 282,815 | –274 | 0 | 282,541 |
| At 31/12/2013 | 727,242 | 5,718 | 0 | 732,959 |
The sensitivity analysis is mainly concerned with the ABS portfolio and the RZB shares.
The sensitivity analysis of the ABS portfolio with regard to a rise or a fall in the default rates in the investments underlying the ABS structures is based on the forecast values from Moody's Investors Service.
The sensitivities for these model-based analyses of the securities are also determined using Moody's default scenarios. According to Moody's, these default scenarios correspond to the 10 per cent quantile or the 90 per cent quantile of the distribution function of the defaults.
| Sensitivity analysis ABS 2013 in € thousand |
Upside | Downside | |
|---|---|---|---|
| Total gains/losses | 300 | –2,300 | |
| Through profit or loss | 0 | –2,800 | |
| Through equity | 300 | 500 | |
The sensitivity analysis of the RZB shares was determined in the course of a valuation report and refers to a change in the discount interest rate and the increase or decrease of the growth rate.
| Sensitivity analysis RZB 2013 in € thousand |
Upside | Downside | |
|---|---|---|---|
| Effect of changes in the discount insurance rate (+/–1 per cent) | 15,500 | –13,600 | |
| Through profit or loss | 0 | 0 | |
| Through equity | 15,500 | –13,600 | |
| Effect of changes in the growth rate (+/–1 per cent) | 13,600 | –9,700 | |
| Through profit or loss | 0 | 0 | |
| Through equity | 13,600 | –9,700 | |
| Default risk rating in € thousand |
31/12/2014 |
|---|---|
| Issuer countries | |
| Equity securities | |
| IE, NL, UK, US | 92,286 |
| AT, BE, CH, DE, DK, FR, IT | 75,889 |
| ES, FI, NO, SE | 0 |
| Remaining EU | 106,859 |
| Other countries | 32,803 |
| Issuer countries equity securities total | 307,837 |
| Other equity investments | 253,394 |
| Total variable-income securities | 561,231 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Fair values | ||
| Equity risk | 60,975 | 37,950 |
| Interest rate risk | 10,977 | –7,021 |
| Foreign currency risk | 17,899 | 34,150 |
| Total | 89,851 | 65,079 |
| Statement of financial position disclosures | ||
| Investments | 122,340 | 73,381 |
| Financial liabilities | –32,489 | –8,301 |
| Carrying amounts | |||
|---|---|---|---|
| in € thousand | 31/12/2014 | 31/12/2013 | |
| Loans to affiliated companies | 1,800 | 1,759 | |
| Loans to other long-term investees and investors | 0 | 1,955 | |
| Mortgages | 34,651 | 42,831 | |
| Loans and advance payments on policies | 14,236 | 12,051 | |
| Other loans | 69,260 | 91,100 | |
| Registered bonds | 0 | 7,056 | |
| Reclassified bonds | 715,656 | 788,061 | |
| Total | 835,603 | 944,813 | |
| Impairments in € thousand |
31/12/2014 | 31/12/2013 | |
| Cumulative impairment losses | 30,382 | 31,094 |
On 1 July 2008, securities previously available for sale were reclassified in accordance with IAS 39/50E as other loans. Overall, fixed-income securities with a carrying amount of €2,129,552 thousand were reclassified. The corresponding revaluation reserve as at 30 June 2008 was €98,208 thousand.
| Reclassified bonds in € thousand |
2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Carrying amount at 31/12 | 715,656 | 788,061 | 906,435 1,089,093 1,379,806 1,796,941 2,102,704 | ||||
| Fair value at 31/12 | 759,872 | 812,455 | 928,162 | 981,394 1,345,580 1,732,644 1,889,108 | |||
| Change in fair value | 19,822 | 129,426 | 129,426 | –73,987 | 30,586 | 149,299 | –213,596 |
| Redemption income/expense | 2,391 | 348 | 348 | 332 | 473 | 5,917 | –61 |
| Impairment | –3,539 | 0 | 0 | –25 | –8,043 | 0 | 0 |
| Contractual maturities | Carrying amounts | |
|---|---|---|
| 31/12/2014 in € thousand |
31/12/2013 | |
| No maturity date 10,647 |
10,542 | |
| Up to 1 year 432,470 |
439,866 | |
| More than 1 year up to 5 years 256,381 |
271,800 | |
| More than 5 years up to 10 years 56,880 |
135,993 | |
| More than 10 years 79,225 |
86,612 | |
| Total 835,603 |
944,813 |
| Fair values | ||
|---|---|---|
| in € thousand | 31/12/2014 | 31/12/2013 |
| Loans to affiliated companies | 1,800 | 1,759 |
| Loans to other long-term investees and investors | 0 | 1,955 |
| Mortgages | 34,651 | 42,831 |
| Loans and advance payments on policies | 14,236 | 12,051 |
| Other loans | 69,260 | 91,100 |
| Registered bonds | 0 | 7,056 |
| Reclassified bonds | 759,872 | 812,455 |
| Total | 879,818 | 969,206 |
| Contractual maturities | Fair values | |
|---|---|---|
| in € thousand | 31/12/2014 | 31/12/2013 |
| No maturity date | 10,647 | 10,542 |
| Up to 1 year | 426,904 | 424,837 |
| More than 1 year up to 5 years | 282,047 | 294,004 |
| More than 5 years up to 10 years | 61,301 | 145,356 |
| More than 10 years | 98,920 | 94,466 |
| Total | 879,818 | 969,206 |
| Impairment | 31/12/2014 | 31/12/2013 |
| in € thousand | ||
|---|---|---|
| Change in impairment in current year | 5,507 | 804 |
| of which recognised in profit or loss | 5,507 | 804 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Bank deposits | 390,046 | 1,273,852 |
| Deposits retained on assumed reinsurance | 123,554 | 126,761 |
| Total | 513,600 | 1,400,614 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| I. Reinsurance receivables | ||
| 1. Reinsurance settlement receivables | 45,883 | 84,821 |
| 45,883 | 84,821 | |
| II. Other receivables | ||
| Insurance receivables | ||
| 1. from policyholders | 298,295 | 270,650 |
| 2. from insurance brokers | 66,628 | 77,463 |
| 3. from insurance companies | 19,842 | 21,262 |
| 384,765 | 369,374 | |
| Other receivables | ||
| Interest and rent | 244,462 | 232,116 |
| Other tax refund claims | 58,583 | 37,776 |
| Receivables from employees | 3,055 | 3,208 |
| Other receivables | 323,829 | 213,672 |
| 629,929 | 486,772 | |
| Total other receivables | 1,014,694 | 856,146 |
| Subtotal | 1,060,577 | 940,968 |
| of which receivables with a remaining maturity of | ||
| up to 1 year | 1,048,215 | 913,004 |
| more than 1 year | 12,362 | 27,963 |
| 1,060,577 | 940,968 | |
| of which receivables which are not yet impaired | ||
| up to 3 months past due | 12,774 | 13,096 |
| more than 3 months past due | 2,515 | 2,880 |
| III. Other assets | ||
| Prepaid expenses and deferred charges | 33,967 | 38,778 |
| 33,967 | 38,778 | |
| Total receivables including insurance receivables | 1,094,544 | 979,746 |
| Impairments in € thousand |
31/12/2014 | 31/12/2013 |
| Cumulative impairment losses | –11,563 | –8,961 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Income tax receivables | 53,917 | 69,881 |
| of which receivables with a remaining maturity of | ||
| up to 1 year | 52,536 | 69,881 |
| more than 1 year | 1,381 | 0 |
| Recognition originates from | 31/12/2014 | 31/12/2013 |
|---|---|---|
| in € thousand Insurance items |
781 | –103 |
| Investments | –521 | –2,070 |
| Loss carryforwards | 2,495 | 5,185 |
| Other | 3,875 | 5,683 |
| Total | 6,630 | 8,695 |
| of which not recognised in profit or loss | 0 | 0 |
| Deferred tax assets in € thousand |
31/12/2014 | 31/12/2013 |
| up to 1 year | 4,314 | 6,479 |
| more than 1 year | 2,316 | 2,216 |
| Total | 6,630 | 8,695 |
For loss carryforwards in the amount of €66,530 thousand, the deferred tax of €10,179 thousand was not capitalised because utilisation will not be possible in the foreseeable future.
| 31/12/2014 | 31/12/2013 | |
|---|---|---|
| Number of authorised and issued no-par shares | 309,000,000 | 309,000,000 |
| of which fully paid up | 309,000,000 | 309,000,000 |
The subscribed capital and capital reserves correspond to values from the individual financial statements of UNIQA Insurance Group AG.
On 9 October 2013, the Management Board of UNIQA Insurance Group AG determined the subscription and offer price and the total number of shares to be issued as part of the capital increase (re-IPO) with the approval of the Working Committee of the Supervisory Board of UNIQA. The subscription and offer price was set at €8.00 per share, with a total of 94,752,100 shares (including 6,650,000 greenshoe shares) placed with investors.
The Company's share capital was increased from €214,247,900 to €309,000,000 by issuing a total of 94,752,100 shares. Each share conveys one vote. The change in the total number of voting rights and the increase in the share capital took effect on 22 October 2013.
As part of the capital increase (re-IPO) in October 2013, employees of UNIQA Insurance Group AG and of its affiliated Austrian Group companies subscribed for 564,315 new no-par value shares. This represented a benefit of 20 per cent compared with the subscription and offer price.
The new shares have been admitted for public trading in the Prime Market segment on the Vienna Stock Market.
The costs of the capital increase have been deducted directly from the share premium at an amount of €32,691 thousand, minus tax effects.
In accordance with the resolution of the Annual General Meeting dated 27 May 2013, the Management Board is authorised to increase the Company's share capital up to and including 30 June 2018 with the approval of the Supervisory Board by a total of up to €12,371,850 by issuing up to 12,371,850 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 26 May 2014, the Management Board is authorised to increase the Company's share capital up to and including 30 June 2019 with the approval of the Supervisory Board by a total of up to €81,000,000 by issuing up to 81,000,000 no-par value bearer or registered shares in exchange for payment in cash or in kind, one time or several times.
Unrealised gains and losses from the revaluation of available-for-sale investments impacted the revaluation reserve, taking into account deferred profit participation (for life insurance) and deferred taxes.
Actuarial gains and losses from pension and severance payment provisions were posted as "actuarial gains and losses from defined benefit obligations" after deducting deferred policyholder profit participation and deferred taxes.
Business performance as a result of organic growth and acquisitions influences the capital requirements of the UNIQA Group. In the context of Group management, the appropriate coverage of the solvency requirement on a consolidated basis is constantly monitored.
As at 31 December 2014, the adjusted equity amounted to €3,442,237 thousand (2013: €3,285,612 thousand). In ascertaining the adjusted equity, intangible economic assets (in particular goodwill) and equity investments in banks and insurance companies are deducted from equity and various forms of hybrid capital (in particular supplemental capital) and latent reserves in investments (in particular in land and buildings) are added.
With a statutory requirement for adjusted equity of €1,165,169 thousand (2013: €1,145,891 thousand), the statutory requirements were exceeded by €2,277,068 thousand (2013: €2,139,722 thousand), resulting in a coverage rate of 295.4 per cent (2013: 286.7 per cent). With the change to Section 81h paragraph 2 of the Insurance Supervisory Act (VAG), the volatility reserve was added as part of the available capital as of the third quarter of 2008. This increased the adjusted equity by €135,391 thousand (2013: €103,767 thousand).
The adjusted equity funding is ascertained on the basis of the available consolidated financial statements (in accordance with Section 80b of the Insurance Supervisory Act).
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Adjusted own funds without deduction pursuant to section 86h paragraph 5 of the Austrian | ||
| Insurance Supervision Act (VAG) | 3,442,237 | 3,285,612 |
| Adjusted own funds with deduction pursuant to section 86h paragraph 5 of the VAG | 3,306,846 | 3,181,846 |
The Management Board is also authorised until 27 November 2015 to acquire treasury shares up to a maximum of 10 per cent of the share capital, including with repeated utilisation of the 10 per cent limit, both via the Stock Exchange as well as over the counter, while also disapplying the proportionate modification rights of shareholders. In the financial year and in the previous year, none of the Company's treasury shares were acquired over the stock exchange. At the reporting date, treasury shares can be broken down as follows:
| 31/12/2014 | 31/12/2013 | |
|---|---|---|
| Shares held by: | ||
| UNIQA Insurance Group AG | ||
| Cost in € thousand | 10,857 | 10,857 |
| Number of shares | 819,650 | 819,650 |
| Share of subscribed capital in % | 0.27 | 0.27 |
In the figure for "earnings per share", the consolidated profit/(loss) is set against the average number of ordinary shares in circulation.
| Earnings per share | 2014 | 2013 |
|---|---|---|
| Consolidated profit in € thousand | 289,863 | 284,660 |
| Treasury shares at the reporting date | 819,650 | 819,650 |
| Average number of shares in circulation | 308,180,350 | 235,294,119 |
| Earnings per share (in euros)1) | 0.94 | 1.21 |
| Dividend per share2) | 0.42 | 0.35 |
| Dividend payment in € thousand2) | 129,436 | 107,863 |
1) Calculated based on consolidated profit.
2) For the financial year, subject to resolution being passed by the Annual General Meeting.
Without taking into consideration the profit/(loss) from discontinued operations (after taxes), this result amounted to €1.00 per share in the 2013 financial year.
The diluted earnings per share is equal to the basic earnings per share in the financial year and in the previous year.
| Change in the tax amounts taken directly to equity in € thousand |
31/12/2014 | 31/12/2013 |
|---|---|---|
| Effective tax | 0 | 10,596 |
| Deferred taxes | –107,319 | 50,765 |
| Total | –107,319 | 61,362 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| In revaluation reserve | –1,377 | 503 |
| In actuarial gains and losses on defined benefit obligations | 0 | 0 |
| In net retained profit | 4,685 | 4,128 |
| In other equity | 16,884 | 17,381 |
| Total | 20,193 | 22,012 |
| 31/12/2014 | 31/12/2013 |
|---|---|
| 600,000 | 600,000 |
| 31/12/2013 | |
| 663,648 | 631,491 |
| 31/12/2014 |
In December 2006, UNIQA Insurance Group AG issued bearer debentures with a nominal value of €150,000 thousand for deposited supplementary capital in accordance with section 73c paragraph of the Austrian Insurance Supervisory Act. According to the terms and conditions of the bearer debentures, the contributed capital of UNIQA Insurance Group AG is agreed to remain at the Company's disposal for at least 5 years, with no ordinary or extraordinary cancellation possible. Interest is applied only insofar as this is covered in the net profit for the year of the issuer. The interest rate up to December 2016 is 5.079 per cent.
In January 2007, UNIQA Insurance Group AG issued bearer debentures with a nominal value of €100,000 thousand for deposited supplementary capital in accordance with section 73c paragraph of the Austrian Insurance Supervisory Act. According to the terms and conditions of the bearer debentures, the deposited capital of UNIQA Insurance Group AG is agreed to remain at the Company's disposal for at least 5 years, with no ordinary or extraordinary cancellation possible. Interest is applied only insofar as this is covered in the net profit for the year of the issuer. The interest rate up to December 2016 is 5.342 per cent.
In July 2013, UNIQA Insurance Group AG successfully placed a supplementary capital bond in the volume of €350 million with institutional investors in Europe. The bond has a maturity period of 30 years and may only be cancelled after 10 years. The coupon equals 6.875 per cent per annum. The supplementary capital bond meets both the current supervisory requirements related to equity netting (supplementary capital under Solvency I) along with the foreseeable requirements for equity netting under the Solvency II regime which comes into force in 2016. 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 € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Property and casualty insurance | ||
| Gross | 607,373 | 612,723 |
| Reinsurers' share | –15,939 | –14,592 |
| 591,435 | 598,131 | |
| Health insurance | ||
| Gross | 19,268 | 18,865 |
| Reinsurers' share | –92 | –51 |
| 19,176 | 18,815 | |
| In the consolidated financial statements | ||
| Gross | 626,641 | 631,588 |
| Reinsurers' share | –16,030 | –14,643 |
| Total (amount consolidated) | 610,611 | 616,945 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Property and casualty insurance | ||
| Gross | 12,565 | 13,154 |
| Reinsurers' share | –135 | –383 |
| 12,431 | 12,772 | |
| Health insurance | ||
| Gross | 2,436,865 | 2,327,656 |
| Reinsurers' share | –886 | –985 |
| 2,435,979 | 2,326,671 | |
| Life insurance | ||
| Gross | 14,323,869 | 14,106,599 |
| Reinsurers' share | –393,286 | –412,018 |
| 13,930,583 | 13,694,581 | |
| In the consolidated financial statements | ||
| Gross | 16,773,299 | 16,447,408 |
| Reinsurers' share | –394,307 | –413,385 |
| Total (amount consolidated) | 16,378,992 | 16,034,023 |
| In the area of Figures in per cent |
Health insurance under SFAS 60 |
Life insurance under SFAS 120 |
|---|---|---|
| 2014 | ||
| For insurance provision | 2.50 –5.50 | 0.00–4.00 |
| For deferred acquisition costs | 2.50 –5.50 | 3.20–3.77 |
| 2013 | ||
| For insurance provision | 3.50 –5.50 | 1.75–4.00 |
| For deferred acquisition costs | 3.50 –5.50 | 3.03–3.28 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Property and casualty insurance | ||
| Gross | 2,240,465 | 2,054,700 |
| Reinsurers' share | –137,605 | –112,623 |
| 2,102,860 | 1,942,077 | |
| Health insurance | ||
| Gross | 165,204 | 169,787 |
| Reinsurers' share | –25 | –32 |
| 165,179 | 169,756 | |
| Life insurance | ||
| Gross | 179,174 | 143,395 |
| Reinsurers' share | –13,590 | –10,965 |
| 165,584 | 132,429 | |
| In the consolidated financial statements | ||
| Gross | 2,584,844 | 2,367,882 |
| Reinsurers' share | –151,220 | –123,620 |
| Total (amount consolidated) | 2,433,623 | 2,244,262 |
The provision for unsettled claims (claim provision) developed in the property and casualty insurance as follows:
| in € thousand | 2014 | 2013 |
|---|---|---|
| 1. Claim provision as at 1/1 | ||
| a) Gross | 2,054,700 | 2,056,950 |
| b) Reinsurers' share | –112,623 | –148,311 |
| c) Net | 1,942,077 | 1,908,640 |
| 2. Plus (net) claim expenditure | ||
| a) Current year claims | 1,584,660 | 1,547,165 |
| b) Prior-year claims | –1,077 | –104,311 |
| c) Total | 1,583,583 | 1,442,854 |
| 3. Less (net) claims paid | ||
| a) Current year claims | –748,529 | –758,952 |
| b) Prior-year claims | –691,517 | –640,675 |
| c) Total | –1,440,046 | –1,399,627 |
| 4. Currency translation | –13,638 | –10,036 |
| 5. Change in basis of consolidation | 32,736 | 0 |
| 6. Other changes | –1,851 | 246 |
| 7. Claim provision as at 31/12 | ||
| a) Gross | 2,240,465 | 2,054,700 |
| b) Reinsurers' share | –137,605 | –112,623 |
| c) Net | 2,102,860 | 1,942,077 |
| Claim payments in € thousand |
2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reporting year | 506,496 | 541,992 | 602,454 | 640,900 | 733,524 | 800,899 | 812,528 | 767,970 | 833,321 | 863,097 | 818,529 | |
| 1 year later | 780,215 | 837,533 | 911,628 | 989,944 1,107,920 1,203,704 1,203,796 1,150,350 1,234,282 1,280,246 | ||||||||
| 2 years later | 850,270 | 910,475 | 994,915 1,075,422 1,201,811 1,307,286 1,301,263 1,264,883 1,357,738 | |||||||||
| 3 years later | 881,472 | 940,400 1,033,923 1,118,974 1,248,251 1,369,236 1,351,569 1,316,791 | ||||||||||
| 4 years later | 900,848 | 960,224 1,059,268 1,153,137 1,276,853 1,397,631 1,378,128 | ||||||||||
| 5 years later | 913,592 | 977,093 1,073,369 1,172,272 1,298,363 1,416,009 | ||||||||||
| 6 years later | 924,652 | 987,368 1,086,018 1,187,312 1,312,041 | ||||||||||
| 7 years later | 930,303 | 998,753 1,096,696 1,198,564 | ||||||||||
| 8 years later | 935,653 1,006,642 1,103,398 | |||||||||||
| 9 years later | 942,387 1,012,799 | |||||||||||
| 10 years later | 946,791 | |||||||||||
| Claim payments and provisions in € thousand |
2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |
| Reporting year | 989,932 1,064,483 1,166,028 1,262,285 1,368,208 1,496,034 1,476,426 1,442,967 1,552,546 1,616,122 1,650,376 | |||||||||||
| 1 year later | 999,530 1,064,413 1,169,667 1,238,345 1,359,204 1,494,769 1,481,053 1,447,808 1,556,176 1,605,972 | |||||||||||
| 2 years later | 997,010 1,066,230 1,155,653 1,242,653 1,374,094 1,502,903 1,487,140 1,454,252 1,570,091 | |||||||||||
| 3 years later | 997,180 1,045,615 1,158,182 1,244,311 1,378,045 1,499,063 1,477,384 1,457,201 | |||||||||||
| 4 years later | 997,125 1,044,507 1,155,169 1,254,712 1,376,275 1,495,039 1,482,301 | |||||||||||
| 5 years later | 983,521 1,047,170 1,155,577 1,262,541 1,374,344 1,498,206 | |||||||||||
| 6 years later | 982,851 1,050,113 1,150,713 1,264,911 1,382,112 | |||||||||||
| 7 years later | 982,121 1,049,680 1,150,517 1,268,575 | |||||||||||
| 8 years later | 982,638 1,050,616 1,153,108 | |||||||||||
| 9 years later | 978,483 1,049,903 | |||||||||||
| 10 years later | 981,729 | |||||||||||
| Settlement gains/losses | –3,246 | 713 | –2,591 | –3,663 | –7,767 | –3,166 | –4,917 | –2,948 | –13,915 | 10,150 | –31,351 | |
| Settlement gains/losses before 2004 |
–11,371 | |||||||||||
| Total settlement gains/losses | –42,722 | |||||||||||
| Statement of financial position provision |
34,937 | 37,104 | 49,710 | 70,011 | 70,071 | 82,197 | 104,173 | 140,410 | 212,353 | 325,726 | 831,847 1,958,539 | |
| Statement of financial position provision for claim years before 2004 |
234,765 | |||||||||||
| Plus other provision components (internal loss adjustment costs, etc.) |
47,161 | |||||||||||
| Claim provision (gross as at 31/12/2014) |
2,240,465 |
| Provision for non-profit related premium refunds | ||
|---|---|---|
| Gross | 2014 | 2013 |
| in € thousand | ||
| At 1/1 | 46,479 | 44,578 |
| Changes for: | ||
| Other changes | 3,264 | 1,901 |
Provision for profit-related premium refunds and/or policyholder profit participation:
At 31/12 49,743 46,479
| 2014 | 2013 | ||
|---|---|---|---|
| Gross in € thousand a) Provision for profit-related premium refunds and/or profit participation At 1/1 218,323 Changes for: Other changes –29,842 At 31/12 188,481 b) Deferred profit participation At 1/1 142,353 Changes for: Fluctuations in value, available-for-sale securities –251,708 Actuarial gains and losses on defined benefit obligations –4,579 |
|||
| 198,857 | |||
| 19,466 | |||
| 218,323 | |||
| 367,864 | |||
| 589,950 | |||
| –21,084 | |||
| Revaluations through profit or loss | 1,066,736 | –794,377 | |
| At 31/12 | 952,801 | 142,353 | |
| Total | 1,141,282 | 360,676 |
| Gross in € thousand |
Unearned premiums |
Insurance provision |
Provision for unsettled claims |
Provision for non-profit related premium refunds |
Provision for non-profit related premium refunds and/or policyholder profit participation |
Other technical provisions |
Total for Group |
|---|---|---|---|---|---|---|---|
| Property and casualty insurance | |||||||
| At 31/12/2013 | 612,723 | 13,154 | 2,054,700 | 33,648 | 580 | 19,175 | 2,733,981 |
| Foreign exchange differences | –12,683 | –667 | –13,730 | –43 | -6 | –59 | –27,188 |
| Change in basis of consolidation | 12,616 | 0 | 33,252 | 0 | 0 | 0 | 45,868 |
| Portfolio changes | 5,073 | –1,801 | 0 | 3,271 | |||
| Additions | 387 | 2,388 | 2,050 | 5,276 | 10,101 | ||
| Disposals | –309 | –525 | –1,671 | –7,567 | –10,073 | ||
| Premiums written Premiums earned |
2,328,252 –2,338,607 |
2,328,252 –2,338,607 |
|||||
| Claims – reporting year | 1,647,629 | 1,647,629 | |||||
| Claim payments – reporting year | –763,303 | –763,303 | |||||
| Change in claims – previous years | 6,805 | 6,805 | |||||
| Claim payments – previous years | –723,086 | –723,086 | |||||
| At 31/12/2014 | 607,373 | 12,565 | 2,240,465 | 35,468 | 952 | 16,825 | 2,913,649 |
| Health insurance | |||||||
| At 31/12/2013 | 18,865 | 2,327,656 | 169,787 | 10,108 | 44,319 | 806 | 2,571,540 |
| Foreign exchange differences | 652 | –61 | –502 | –24 | 0 | -3 | 61 |
| Change in basis of consolidation | 0 | 0 | 0 | 0 | 0 | 0 | |
| Portfolio changes | 1,007 | 424 | 0 | 1,431 | |||
| Additions | 109,405 | 9,756 | 17,507 | 200 | 136,868 | ||
| Disposals | –135 | –9,017 | –17,173 | –13 | –26,339 | ||
| Premiums written | 945,778 | 945,778 | |||||
| Premiums earned | –947,034 | –947,034 | |||||
| Claims – reporting year | 672,269 | 672,269 | |||||
| Claim payments – reporting year | –478,830 | –478,830 | |||||
| Change in claims – previous years | –20,418 | –20,418 | |||||
| Claim payments – previous years | –177,525 | –177,525 | |||||
| At 31/12/2014 | 19,268 | 2,436,865 | 165,204 | 10,823 | 44,652 | 989 | 2,677,800 |
| Life insurance | |||||||
| At 31/12/2013 | 0 | 14,106,599 | 143,395 | 2,723 | 315,777 | 26,201 | 14,594,694 |
| Foreign exchange differences | –43,531 | –784 | –16 | 10,738 | –189 | –33,781 | |
| Change in basis of consolidation | 217,633 | 2,600 | 0 | 220,233 | |||
| Portfolio changes | 547,416 | 345 | –59 | 501 | 548,203 | ||
| Additions | 102,350 | 745 | 774,392 | 1,342 | 878,829 | ||
| Disposals | –606,598 | 0 | –5,170 | –1,409 | –613,178 | ||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims – reporting year | 2,395,353 | 2,395,353 | |||||
| Claim payments – reporting year | –2,196,339 | –2,196,339 | |||||
| Change in claims – previous years | 14,404 | 14,404 | |||||
| Claim payments – previous years At 31/12/2014 |
0 | 14,323,869 | –179,798 179,174 |
3,452 | 1,095,678 | 26,446 | –179,798 15,628,619 |
| Total for Group | |||||||
| At 31/12/2013 | 631,588 | 16,447,408 | 2,367,882 | 46,479 | 360,676 | 46,182 | 19,900,215 |
| Foreign exchange differences | –12,031 | –44,258 | –15,016 | –83 | 10,732 | –251 | –60,907 |
| Change in basis of consolidation | 12,616 | 217,633 | 35,851 | 0 | 0 | 0 | 266,100 |
| Portfolio changes | 6,079 | 547,416 | –1,033 | –59 | 501 | 552,904 | |
| Additions Disposals |
212,142 –607,043 |
12,889 –9,542 |
793,948 –24,015 |
6,818 –8,989 |
1,025,798 –649,589 |
||
| Premiums written | 3,274,030 | 3,274,030 | |||||
| Premiums earned | –3,285,642 | –3,285,642 | |||||
| Claims – reporting year | 4,715,251 | 4,715,251 | |||||
| Claim payments – reporting year | –3,438,472 | –3,438,472 | |||||
| Change in claims – previous years | 791 | 791 | |||||
| Claim payments – previous years | –1,080,410 | –1,080,410 |
| Reinsurers' share in € thousand |
Unearned premiums |
Insurance provision |
Provision for unsettled claims |
Provision for non-profit related premium refunds |
Provision for non-profit related premium refunds and/or policyholder profit participation |
Other technical provisions |
Total for Group |
|---|---|---|---|---|---|---|---|
| Property and casualty insurance | |||||||
| At 31/12/2013 | 14,592 | 383 | 112,623 | 0 | 0 | 1,750 | 129,348 |
| Foreign exchange differences | –204 | –22 | –92 | –29 | –347 | ||
| Change in basis of consolidation | 507 | 516 | 0 | 0 | 1,024 | ||
| Portfolio changes | –115 | 50 | –65 | ||||
| Additions | 0 | 0 | 634 | 634 | |||
| Disposals | –226 | 0 | –235 | –461 | |||
| Premiums written | 124,829 | 124,829 | |||||
| Premiums earned | –123,670 | –123,670 | |||||
| Claims – reporting year | 62,969 | 62,969 | |||||
| Claim payments – reporting year | –14,774 | –14,774 | |||||
| Change in claims – previous years | 7,882 | 7,882 | |||||
| Claim payments – previous years | –31,569 | –31,569 | |||||
| At 31/12/2014 | 15,938 | 135 | 137,605 | 0 | 0 | 2,120 | 155,798 |
| Health insurance | |||||||
| At 31/12/2013 | 51 | 985 | 32 | 0 | 0 | 0 | 1,067 |
| Foreign exchange differences | 0 | 8 | 8 | ||||
| Change in basis of consolidation | 0 | 0 | |||||
| Portfolio changes | 0 | ||||||
| Additions | 0 | ||||||
| Disposals | –99 | –99 | |||||
| Premiums written | 456 | 456 | |||||
| Premiums earned | –415 | –415 | |||||
| Claims – reporting year | 121 | 121 | |||||
| Claim payments – reporting year | –138 | –138 | |||||
| Change in claims – previous years | 2 | 2 | |||||
| Claim payments – previous years | 0 | 0 | |||||
| At 31/12/2014 | 92 | 886 | 25 | 0 | 0 | 0 | 1,002 |
| Life insurance | |||||||
| At 31/12/2013 | 0 | 412,018 | 10,965 | 0 | 0 | –147 | 422,837 |
| Foreign exchange differences | –13 | 33 | 0 | 20 | |||
| Change in basis of consolidation | 0 | 0 | 0 | ||||
| Portfolio changes | –19,535 | 2,903 | –16,631 | ||||
| Additions | 1,311 | 5 | 1,315 | ||||
| Disposals | –495 | 0 | –14 | –509 | |||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims – reporting year | 26,946 | 26,946 | |||||
| Claim payments – reporting year | –24,981 | –24,981 | |||||
| Change in claims – previous years | 1,685 | 1,685 | |||||
| Claim payments – previous years | –3,942 | –3,942 | |||||
| At 31/12/2014 | 0 | 393,286 | 13,610 | 0 | 0 | –156 | 406,739 |
| Total for Group | |||||||
| At 31/12/2013 | 14,643 | 413,385 | 123,620 | 0 | 0 | 1,604 | 553,252 |
| Foreign exchange differences | –205 | –35 | –51 | 0 | –29 | –319 | |
| Change in basis of consolidation | 507 | 0 | 516 | 0 | 0 | 1,024 | |
| Portfolio changes | –115 | –19,535 | 2,953 | –16,697 | |||
| Additions | 1,311 | 0 | 639 | 1,950 | |||
| Disposals | –820 | 0 | –250 | –1,070 | |||
| Premiums written | 125,285 | 125,285 | |||||
| Premiums earned | –124,085 | –124,085 | |||||
| Claims – reporting year | 90,036 | 90,036 | |||||
| Claim payments – reporting year | –39,893 | –39,893 | |||||
| Change in claims – previous years | 9,568 | 9,568 | |||||
| Claim payments – previous years | –35,512 | –35,512 | |||||
| At 31/12/2014 | 16,030 | 394,307 | 151,240 | 0 | 0 | 1,964 | 563,540 |
| Net in € thousand |
Unearned premiums |
Insurance provision |
Provision for unsettled claims |
Provision for non-profit related premium refunds |
Provision for non-profit related premium refunds and/or policyholder profit participation |
Other technical provisions |
Total for Group |
|---|---|---|---|---|---|---|---|
| Property and casualty insurance | |||||||
| At 31/12/2013 | 598,131 | 12,772 | 1,942,077 | 33,648 | 580 | 17,425 | 2,604,633 |
| Foreign exchange differences | –12,478 | –645 | –13,638 | –43 | -6 | –30 | –26,841 |
| Change in basis of consolidation | 12,108 | 0 | 32,736 | 0 | 0 | 0 | 44,844 |
| Portfolio changes | 5,188 | –1,851 | 0 | 0 | 3,336 | ||
| Additions | 387 | 2,388 | 2,050 | 4,641 | 9,466 | ||
| Disposals | –84 | –525 | –1,671 | –7,332 | –9,611 | ||
| Premiums written | 2,203,423 | 2,203,423 | |||||
| Premiums earned | –2,214,937 | –2,214,937 | |||||
| Claims – reporting year | 1,584,660 | 1,584,660 | |||||
| Claim payments – reporting year | –748,529 | –748,529 | |||||
| Change in claims – previous years | –1,077 | –1,077 | |||||
| Claim payments – previous years | –691,517 | –691,517 | |||||
| At 31/12/2014 | 591,435 | 12,431 | 2,102,860 | 35,468 | 952 | 14,704 | 2,757,850 |
| Health insurance | |||||||
| At 31/12/2013 | 18,815 | 2,326,671 | 169,755 | 10,108 | 44,319 | 806 | 2,570,473 |
| Foreign exchange differences | 652 | –61 | –510 | –24 | 0 | -3 | 54 |
| Change in basis of consolidation | 0 | 0 | 0 | 0 | 0 | 0 | |
| Portfolio changes | 1,007 | 424 | 0 | 0 | 0 | 1,431 | |
| Additions | 109,405 | 9,756 | 17,507 | 200 | 136,868 | ||
| Disposals | –36 | –9,017 | –17,173 | –13 | –26,240 | ||
| Premiums written | 945,322 | 945,322 | |||||
| Premiums earned | –946,619 | –946,619 | |||||
| Claim payments – reporting year | –478,693 | –478,693 | |||||
|---|---|---|---|---|---|---|---|
| Change in claims – previous years | –20,420 | –20,420 | |||||
| Claim payments – previous years | –177,525 | –177,525 | |||||
| At 31/12/2014 | 19,176 | 2,435,979 | 165,179 | 10,823 | 44,652 | 989 | 2,676,798 |
| Life insurance | |||||||
|---|---|---|---|---|---|---|---|
| At 31/12/2013 | 0 | 13,694,581 | 132,429 | 2,723 | 315,777 | 26,347 | 14,171,858 |
| Foreign exchange differences | –43,518 | –817 | –16 | 10,738 | –189 | –33,801 | |
| Change in basis of consolidation | 217,633 | 2,600 | 0 | 0 | 220,233 | ||
| Portfolio changes | 566,951 | –2,558 | 0 | –59 | 501 | 564,834 | |
| Additions | 101,039 | 745 | 774,392 | 1,338 | 877,514 | ||
| Disposals | –606,103 | 0 | –5,170 | –1,395 | –612,669 | ||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims – reporting year | 2,368,407 | 2,368,407 | |||||
| Claim payments – reporting year | –2,171,358 | –2,171,358 | |||||
| Change in claims – previous years | 12,719 | 12,719 | |||||
| Claim payments – previous years | –175,857 | –175,857 | |||||
| At 31/12/2014 | 0 | 13,930,583 | 165,565 | 3,452 | 1,095,678 | 26,603 | 15,221,880 |
| Total for Group | |||||||
|---|---|---|---|---|---|---|---|
| At 31/12/2013 | 616,946 | 16,034,023 | 2,244,261 | 46,479 | 360,676 | 44,578 | 19,346,963 |
| Foreign exchange differences | –11,826 | –44,223 | –14,965 | –83 | 10,732 | –222 | –60,588 |
| Change in basis of consolidation | 12,108 | 217,633 | 35,335 | 0 | 0 | 0 | 265,077 |
| Portfolio changes | 6,195 | 566,951 | –3,986 | 0 | –59 | 501 | 569,601 |
| Additions | 210,832 | 12,889 | 793,948 | 6,179 | 1,023,848 | ||
| Disposals | –606,223 | –9,542 | –24,015 | –8,740 | –648,519 | ||
| Premiums written | 3,148,745 | 3,148,745 | |||||
| Premiums earned | –3,161,557 | –3,161,557 | |||||
| Claims – reporting year | 4,625,215 | 4,625,215 | |||||
| Claim payments – reporting year | –3,398,580 | –3,398,580 | |||||
| Change in claims – previous years | –8,778 | –8,778 | |||||
| Claim payments – previous years | –1,044,898 | –1,044,898 | |||||
| At 31/12/2014 | 610,611 | 16,378,992 | 2,433,604 | 49,743 | 1,141,282 | 42,296 | 20,656,528 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Gross | 5,306,000 | 5,251,035 |
| Reinsurers' share | –332,974 | –389,206 |
| Total | 4,973,026 | 4,861,830 |
As a general rule, the valuation of the actuarial provisions for unit-linked and index-linked life insurance policies corresponds to the investments in unit-linked and index-linked life insurance policies reported at current fair values. The share of reinsurers is accompanied by a liability for deposits in the same amount.
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Loan liabilities | 16,692 | 18,535 |
| up to 1 year | 184 | 1,126 |
| more than 1 year up to 5 years | 0 | 1 |
| more than 5 years | 16,507 | 17,407 |
| Total | 16,692 | 18,535 |
| Changes in the carrying amount in € thousand |
31/12/2014 | 31/12/2013 |
|---|---|---|
| Pension provisions | 432,407 | 391,952 |
| Provision for termination benefits | 179,263 | 194,805 |
| Total | 611,670 | 586,757 |
| in € thousand | 2014 | 2013 |
|---|---|---|
| At 1/1 | 586,757 | 566,620 |
| Change in basis of consolidation | 0 | 0 |
| Changes due to currency translation | –10 | –11 |
| Withdrawal for payments | –50,397 | –54,736 |
| Expenditure in the financial year | 35,400 | 56,853 |
| Disposals (including disposals from consolidated group) | –6,122 | –15,069 |
| Actuarial gains and losses not recognised in profit or loss | 46,042 | 33,100 |
| of which based on demographic assumptions | -3 | 265 |
| of which based on financial assumptions | 44,799 | 22,532 |
| of which based on experience assumptions | 1,246 | 10,302 |
| At 31/12 | 611,670 | 586,757 |
| Weighted average duration | Pension funds | Pensions | Termination benefits |
|---|---|---|---|
| in years | 30.2 | 13.7 | 8.4 |
| Present value of obligations in € thousand |
2014 | 2013 |
|---|---|---|
| At 1/1 | 649,573 | 630,834 |
| Current service cost | 23,412 | 52,350 |
| Interest expense | 17,195 | 18,265 |
| Payments | –55,856 | –69,805 |
| Past service cost | 4,737 | 0 |
| Disposals (including disposals from consolidated group) | –6,122 | –15,069 |
| Actuarial gains and losses not recognised in profit or loss | 50,225 | 32,997 |
| of which based on demographic assumptions | -3 | 10,302 |
| of which based on financial assumptions | 48,981 | 265 |
| of which based on experience assumptions | 1,246 | 22,429 |
| At 31/12 | 683,162 | 649,573 |
| Sensitivity analysis 2014 Figures in per cent |
Pension funds | Pensions | Termination benefits |
|---|---|---|---|
| Remaining life expectancy | |||
| Change in DBO (+ 1 year) | 2.9 | 4.4 | |
| Change in DBO (–1 year) | –3.2 | –4.7 | |
| Discount rate | |||
| Change in DBO (+ 1%) | –24.6 | –11.6 | –8.0 |
| Change in DBO (–1%) | 35.3 | 14.5 | 9.1 |
| Rate of increase for future salary delta | |||
| Change in DBO (+ 0.75%) | 4.0 | 0.4 | 6.6 |
| Change in DBO (–0.75%) | –3.8 | –0.4 | –6.1 |
| Rate of increase for future pensions | |||
| Change in DBO (+ 0.25%) | 4.2 | 2.9 | |
| Change in DBO (–0.25%) | –4.0 | –2.8 |
| Sensitivity analysis 2013 Figures in per cent |
Pension funds | Pensions | Termination benefits |
|---|---|---|---|
| Remaining life expectancy | |||
| Change in DBO (+ 1 year) | 2.8 | 3.9 | |
| Change in DBO (–1 year) | –3.0 | –4.1 | |
| Discount rate | |||
| Change in DBO (+ 1%) | –24.0 | –11.5 | –8.1 |
| Change in DBO (–1%) | 34.2 | 14.3 | 9.2 |
| Rate of increase for future salary delta | |||
| Change in DBO (+ 0.75%) | 4.0 | 0.4 | 6.7 |
| Change in DBO (–0.75%) | –3.7 | –0.4 | –6.2 |
| Rate of increase for future pensions | |||
| Change in DBO (+ 0.25%) | 4.1 | 2.8 | |
| Change in DBO (–0.25%) | –3.9 | –2.7 |
Final pension funds contribution:
Board members, special policyholders and active employees in Austria who meet the criteria for inclusion are subject to a defined contribution pension fund scheme. The beneficiaries are entitled to a final pension fund contribution. 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 old-age pension or of an incapacity to work or the death as a participant.
There are individual contractual pension obligations, pension allowances in accordance with association recommendations and administrative pensions. Individuals who have an individual contractual obligation can generally claim a pension when they reach the age of 65, but not before the age of 62, and in the event of an inability to work. 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% 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 defined contribution plan is financed completely by Uniqa. The pensions are financed through provisions that are based on individual policies or on the association recommendations. For the final pension contribution, the financing is carried out over a pension fund. The financing is specified in the business plan, in the works council agreement and in the pension fund contract.
Termination benefit entitlements:
If the employment lasted three years without interruption, the employee is entitled to termination benefits when the employment is terminated, unless the employee quits, leaves without an important reason or is guilty of something resulting in early dismissal. The amount is double the salary owed to the employee in the last month of the employee relationship and increases after five years of employment to three times, after ten years of employment to four times, after fifteen years of employment to six times, after twenty years of employment to nine times and after twenty-five years of employment to twelve times the monthly salary.
If the employment ends due to the death of the employee, the termination benefit only amounts to half of the above-mentioned amounts and is only owed to the legal beneficiaries who were legal dependents of the deceased.
For employees who joined the Company after 31 December 2002, the statutory provisions of the BMSFB apply. These people are therefore, as instructed, not included in the calculation of the termination benefits.
The UNIQA Group's repositioning led to an expected reduction of staff which is covered by provisions for social capital amounting to €17,088 thousand (2013: €42,136 thousand).
| Calculation factors applied In per cent |
2014 | 2013 | |
|---|---|---|---|
| Discount rate | 2.50% | 3.00% | |
| Valorisation of remuneration | 3.00% | 3.00% | |
| Valorisation of pensions | 2.00% | 2.00% | |
| Employee turnover rate | dependent on years of service | dependent on years of service | |
| Calculation principles | AVÖ 2008 P – Pagler & Pagler/salaried employees |
AVÖ 2008 P – Pagler & Pagler/salaried employees |
|
| Details of expenses for pensions and similar obligations recognised in the income statement in € thousand |
31/12/2014 | 31/12/2013 | |
| Current service cost | 15,441 | 38,794 | |
| Past service cost | 4,737 | 0 | |
| Interest expense | 15,259 | 18,259 | |
| Income and expenses from plan changes | –35 | –201 | |
| Total | 35,400 | 56,853 |
| Movement in pension provision's plan assets | 2014 | 2013 |
|---|---|---|
| Fair value of plan assets at 1/1 | 62,816 | 64,214 |
| Interest income | 1,936 | 2,135 |
| Allocation to fund | 7,971 | 8,586 |
| Payments | –5,413 | –10,244 |
| Gain/loss Other comprehensive income | 4,182 | –1,876 |
| Fair value of plan assets at 31/12 | 71,492 | 62,816 |
| Classes of plan assets In per cent |
2014 | 2013 |
| Bonds – euro | 35.1 | 28.6 |
| Bonds – Euro High Yield | 3.3 | 5.1 |
| Corporate bonds – euro | 17.8 | 18.1 |
| Equities – euro | 7.4 | 8.3 |
| Equities – non-euro | 6.9 | 7.7 |
| Equities – emerging markets | 3.6 | 2.0 |
| Alternative investment instruments | 0.9 | 3.1 |
| Land and buildings | 0.0 | 1.9 |
| Cash | 6.4 | 0.0 |
| Synthetic cash position | 0.0 | 3.3 |
| HTM bonds/term deposits | 18.6 | 22.0 |
| Total | 100.0 | 100.0 |
Under the defined contribution company pension scheme, the employer pays the fixed amounts into company pension funds. The employer has satisfied their obligation by making these contributions.
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Contributions to company pension funds | 2,293 | 2,199 |
| in € thousand | Carrying amounts 31/12/2013 |
Changes from currency translation |
Changes in the basis of consolidation |
Requirement | Reversals | Reclas sifications |
Additions | Carrying amount 31/12/2014 |
|---|---|---|---|---|---|---|---|---|
| Jubilee benefit provision | 15,343 | 0 | 0 | –50 | –674 | 0 | 265 | 14,884 |
| Customer services and marketing provisions | 73,775 | –163 | 0 | –63,336 | –3,539 | 0 | 69,026 | 75,763 |
| Provision for variable remuneration components | 27,485 | 0 | 0 | –26,676 | –377 | 0 | 18,005 | 18,438 |
| Provision for legal and consulting expenses | 10,720 | -6 | –38 | –2,324 | –792 | –1,228 | 2,705 | 9,037 |
| Provision for premium adjustments from reinsurance contracts |
9,354 | –10 | 0 | –4,922 | 0 | 0 | 3,489 | 7,911 |
| Provision for portfolio maintenance commission | 2,667 | –25 | 0 | –173 | 0 | 0 | 705 | 3,174 |
| Other provisions | 110,579 | –195 | –222 | –59,232 | –31,887 | 1,228 | 72,767 | 93,038 |
| Total | 249,924 | –399 | –260 | –156,714 | –37,269 | 0 | 166,963 | 222,245 |
Other provisions include a provision of €10,000 thousand (2013: €10,000 thousand) for liability in connection with the sale of Mannheimer AG Holding.
The provision for variable salary components includes a provision for share-based compensation amounting to €600 thousand. Further disclosures concerning the underlying "Long Term Incentive Programme (LTI)" can be found under Other Information (page 198).
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Other provisions with a high probability of utilisation | ||
| (more than 90 per cent) | ||
| in up to 1 year | 116.655 | 128.805 |
| in more than 1 year up to 5 years | 9.453 | 11.726 |
| in more than 5 years | 11.981 | 12.961 |
| 138.088 | 153.491 | |
| Other provisions with a low probability of utilisation | ||
| (less than 90 per cent) | ||
| in up to 1 year | 81.640 | 93.510 |
| in more than 1 year up to 5 years | 2.517 | 2.899 |
| in more than 5 years | 0 | 23 |
| 84.156 | 96.432 | |
| Total | 222.245 | 249.924 |
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| I. Reinsurance liabilities | ||
| 1. Deposits retained on assumed reinsurance | 719,592 | 797,171 |
| 2. Reinsurance settlement liabilities | 38,991 | 36,885 |
| 758,583 | 834,056 | |
| II. Other liabilities | ||
| Insurance liabilities | ||
| Direct insurance liabilities | ||
| to policyholders | 178,926 | 116,486 |
| to insurance brokers | 70,611 | 70,778 |
| to insurance companies | 12,781 | 6,811 |
| 262,317 | 194,076 | |
| Liabilities to banks | 0 | 350 |
| Other liabilities | 321,222 | 310,596 |
| of which for taxes | 46,814 | 55,179 |
| of which for social security | 12,605 | 11,564 |
| of which from fund consolidation | 2,645 | 19,204 |
| Total other liabilities | 583,539 | 505,022 |
| Subtotal | 1,342,123 | 1,339,077 |
| of which liabilities with a maturity of | ||
| up to 1 year | 951,566 | 896,119 |
| more than 1 year up to 5 years | 3,033 | 4,378 |
| more than 5 years | 387,524 | 438,580 |
| 1,342,123 | 1,339,077 | |
| III. Other items classified as equity and liabilities | ||
| Deferred income | 26,628 | 23,040 |
| Liabilities and other items classified as equity and liabilities | 1,368,751 | 1,362,117 |
The item Deferred income basically comprises the balance of the deferred income from the settlement of indirect business.
Losses from foreign subsidiaries were also included within the scope of group taxation as part of the determination of taxable income. The tax realisation for these losses is accompanied by a future tax obligation to pay income taxes at an unspecified point in time. These tax liabilities are assessed at zero from a discounted perspective unless the sale of an equity investment or own loss realisation on the part of subsidiaries can be foreseen.
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Income tax liabilities | 43,272 | 40,712 |
| of which liabilities with a maturity of | ||
| up to 1 year | 18,545 | 14,187 |
| more than 1 year up to 5 years | 24,303 | 26,525 |
| more than 5 years | 425 | 0 |
| Recognition originates from in € thousand |
31/12/2014 | 31/12/2013 |
|---|---|---|
| Insurance items | 175,411 | 164,575 |
| Untaxed reserves | 34,145 | 35,591 |
| Investments | 227,683 | 43,583 |
| Social capital | –74,497 | –68,745 |
| Loss carryforwards | –6,018 | –6,227 |
| Other | –1,300 | 30,203 |
| Total | 355,424 | 198,980 |
| of which not recognised in profit or loss | 124,189 | 16,871 |
| Deferred tax liabilities in € thousand |
31/12/2014 | 31/12/2013 |
| up to 1 year | 29,924 | 1,109 |
| more than 1 year | 325,500 | 197,871 |
Total 355,424 198,980
| Direct insurance | 2014 | 2013 |
|---|---|---|
| in € thousand Property and casualty insurance |
2,581,315 | 2,553,745 |
| Health insurance | 960,775 | 937,572 |
| Life insurance | 1,923,396 | 1,614,051 |
| Total (amount consolidated) | 5,465,486 | 5,105,368 |
| of which from: | ||
| Austria | 3,362,882 | 3,254,807 |
| Remaining EU member states and other states which are party to the Agreement on the European Economic Area |
1,751,709 | 1,529,803 |
| Other countries | 350,894 | 320,758 |
| Total (amount consolidated) | 5,465,486 | 5,105,368 |
| Indirect insurance in € thousand |
2014 | 2013 |
| Property and casualty insurance | 39,608 | 36,784 |
| Health insurance | 1 | 2 |
| Life insurance | 14,606 | 15,421 |
| Total (amount consolidated) | 54,215 | 52,207 |
| in € thousand | 2014 | 2013 |
| Total (amount consolidated) | 5,519,700 | 5,157,576 |
| Property and casualty insurance premiums written in € thousand |
2014 | 2013 |
| Direct insurance | ||
| Fire and business interruption insurance | 255,537 | 247,932 |
| Household insurance | 146,551 | 140,524 |
| Other property insurance | 238,409 | 236,768 |
| Motor TPL insurance | 658,865 | 653,490 |
| Other motor insurance Casualty insurance |
471,215 326,029 |
494,020 320,953 |
| Liability insurance | 245,851 | 237,162 |
| Legal expense insurance | 76,905 | 73,633 |
| Marine, aviation and transport insurance | 87,285 | 81,353 |
| Other insurance | 74,667 | 67,910 |
| Total | 2,581,315 | 2,553,745 |
| Indirect insurance | ||
| Marine, aviation and transport insurance | 2,036 | 3,638 |
| Other insurance | 37,571 | 33,146 |
| Total | 39,608 | 36,784 |
| Total direct and indirect insurance | ||
| (amount consolidated) | 2,620,922 | 2,590,529 |
| Reinsurance premiums ceded in € thousand |
2014 | 2013 | |
|---|---|---|---|
| Property and casualty insurance | 142,388 | 144,600 | |
| Health insurance | 961 | 3,588 | |
| Life insurance | 67,938 | 68,539 | |
| Total (amount consolidated) | 211,288 | 216,727 |
| in € thousand | 2014 | 2013 |
|---|---|---|
| Property and casualty insurance | 2,482,938 | 2,441,490 |
| Gross | 2,624,349 | 2,579,647 |
| Reinsurers' share | –141,411 | –138,157 |
| Health insurance | 959,986 | 936,184 |
| Gross | 960,949 | 940,327 |
| Reinsurers' share | –962 | –4,143 |
| Life insurance | 1,869,971 | 1,560,927 |
| Gross | 1,937,919 | 1,629,493 |
| Reinsurers' share | –67,948 | –68,567 |
| Total (amount consolidated) | 5,312,896 | 4,938,600 |
| Premiums earned indirect insurance in € thousand |
2014 | 2013 |
| Recognised simultaneously | 6,581 | 8,838 |
| Recognised with a delay of up to 1 year | 32,229 | 26,795 |
| Recognised with a delay of more than 1 year | 0 | 0 |
| Property and casualty insurance | 38,810 | 35,633 |
| Recognised simultaneously | 0 | 2 |
| Recognised with a delay of up to 1 year | 1 | 0 |
| Recognised with a delay of more than 1 year | 0 | 0 |
| Health insurance | 1 | 2 |
| Recognised simultaneously | 0 | 111 |
| Recognised with a delay of up to 1 year | 14,606 | 15,310 |
| Recognised with a delay of more than 1 year | 0 | 0 |
| Life insurance | 14,606 | 15,421 |
| Total (amount consolidated) | 53,417 | 51,056 |
| Result – indirect insurance | 2014 | 2013 |
| in € thousand | ||
| Property and casualty insurance | 7,616 | 7,093 |
| Health insurance | -9 | 7 |
| Life insurance | 768 | 470 |
| Total (amount consolidated) | 8,375 | 7,570 |
| Gross | Reinsurers' share | Retention | |||
|---|---|---|---|---|---|
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013 |
| 1,583,498 | 1,596,362 | –45,185 | –87,734 | 1,538,314 | 1,508,628 |
| 164,927 | 48,797 | –23,849 | 35,963 | 141,078 | 84,761 |
| 1,748,425 | 1,645,160 | –69,034 | –51,771 | 1,679,391 | 1,593,389 |
| 58 | 1,051 | 14 | –14 | 72 | 1,036 |
| 2,001 | –979 | 0 | 0 | 2,001 | –979 |
| 42,120 | 40,400 | 0 | 0 | 42,120 | 40,400 |
| 1,792,604 | 1,685,632 | –69,020 | –51,785 | 1,723,584 | 1,633,846 |
| 647,507 | 629,130 | –152 | –21 | 647,355 | 629,109 |
| –3,843 | 5,176 | -3 | -4 | –3,846 | 5,172 |
| 643,664 | 634,305 | –155 | –25 | 643,509 | 634,280 |
| 109,281 | 108,219 | 99 | 106 | 109,380 | 108,325 |
| 77 | 318 | 0 | 0 | 77 | 318 |
| 27,557 | 25,813 | 0 | 0 | 27,557 | 25,813 |
| 780,579 | 768,655 | –56 | 81 | 780,523 | 768,736 |
| 1,857,028 | 1,467,988 | –154,102 | –127,339 | 1,702,925 | 1,340,650 |
| 89,726 | –3,161 | –2,437 | 255 | 87,289 | –2,906 |
| 1,946,754 | 1,464,827 | –156,540 | –127,083 | 1,790,214 | 1,337,744 |
| –72,149 | 38,130 | 91,577 | 60,152 | 19,428 | 98,283 |
| 480 | 738 | 0 | 0 | 480 | 738 |
| 69,432 | 120,100 | 0 | 0 | 69,432 | 120,100 |
| 1,944,517 | 1,623,796 | –64,962 | –66,931 | 1,879,555 | 1,556,865 |
| 4,517,700 | 4,078,083 | –134,038 | –118,635 | 4,383,662 | 3,959,448 |
| in € thousand | 2014 | 2013 |
|---|---|---|
| Property and casualty insurance | ||
| a) Acquisition costs | ||
| Payments | 560,109 | 553,481 |
| Change in deferred acquisition costs | –4,908 | –5,072 |
| b) Other operating expenses | 201,362 | 265,627 |
| c) Reinsurance commissions and share of profit from reinsurance ceded | –10,499 | –10,799 |
| 746,065 | 803,236 | |
| Health insurance | ||
| a) Acquisition costs | ||
| Payments | 101,717 | 92,918 |
| Change in deferred acquisition costs | –532 | 117 |
| b) Other operating expenses | 62,647 | 69,725 |
| c) Reinsurance commissions and share of profit from reinsurance ceded | –463 | –683 |
| 163,368 | 162,077 | |
| Life insurance | ||
| a) Acquisition costs | ||
| Payments | 294,000 | 355,696 |
| Change in deferred acquisition costs | –11,794 | –54,612 |
| b) Other operating expenses | 98,773 | 104,590 |
| c) Reinsurance commissions and share of profit from reinsurance ceded | –15,082 | –16,820 |
| 365,897 | 388,854 | |
| Total (amount consolidated) | 1,275,330 | 1,354,167 |
| By segment | Property and casualty insurance |
Health insurance | Life insurance | Group | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| in € thousand | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||
| I. Investment property | 15,440 | 5,691 | 7,933 | 25,390 | 95,198 | 69,457 | 118,571 | 100,538 | ||
| II. Investment in associates | 435 | 3,056 | 11,715 | 8,679 | 11,434 | 10,494 | 23,583 | 22,229 | ||
| III. Variable-income securities | 16,880 | 27,795 | 5,769 | 7,043 | 17,856 | 101,468 | 40,505 | 136,305 | ||
| 1. Available for sale | 16,352 | 27,369 | 5,229 | 6,520 | 11,228 | 96,695 | 32,809 | 130,583 | ||
| 2. At fair value through profit or loss | 528 | 426 | 540 | 523 | 6,628 | 4,773 | 7,696 | 5,722 | ||
| IV. Fixed-income securities | 111,341 | 64,099 | 113,181 | 37,381 | 540,680 | 374,331 | 765,202 | 475,811 | ||
| 1. Available for sale | 111,680 | 63,243 | 112,651 | 35,258 | 558,091 | 355,046 | 782,422 | 453,548 | ||
| 2. At fair value through profit or loss | –339 | 856 | 530 | 2,122 | –17,412 | 19,285 | –17,221 | 22,263 | ||
| V. Loans and other investments | 10,461 | 19,615 | 6,715 | 7,372 | 54,802 | 68,334 | 71,977 | 95,320 | ||
| 1. Loans | 1,501 | 3,174 | 3,684 | 5,331 | 18,825 | 30,327 | 24,009 | 38,832 | ||
| 2. Other investments | 8,960 | 16,441 | 3,031 | 2,041 | 35,977 | 38,007 | 47,968 | 56,488 | ||
| VI. Derivative financial instruments (trading portfolio) | –6,674 | 1,140 | –19,388 | 3,662 | –71,190 | 23,976 | –97,252 | 28,779 | ||
| VII. Investment administration expenses, interest paid and | ||||||||||
| other investment expenses | –13,187 | –22,781 | –8,909 | –10,128 | –36,114 | –46,071 | –58,210 | –78,981 | ||
| Total (amount consolidated) | 134,696 | 98,614 | 117,014 | 79,399 | 612,665 | 601,989 | 864,375 | 780,002 |
Income from available-for-sale fixed-income securities includes gains of €37,388 thousand and income from fixed income securities at fair value through profit or loss includes gains of €1,762 thousand from Level 3 valuations (hierarchy for instruments recognised at fair value in the statement of financial position).
| By income type | Current income | Reversal of impairment losses | Gains on disposals | ||||
|---|---|---|---|---|---|---|---|
| in € thousand | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
| I. Investment property | 77,458 | 75,008 | 38 | 0 | 126,508 | 93,168 | |
| II. Investment in associates | 19,970 | 20,023 | 0 | 0 | 3,613 | 2,207 | |
| III. Variable-income securities | 44,338 | 57,621 | 17,180 | 19,643 | 32,760 | 133,030 | |
| 1. Available for sale | 34,803 | 52,369 | 6,329 | 3,954 | 32,063 | 129,707 | |
| 2. At fair value through profit or loss | 9,535 | 5,252 | 10,851 | 15,688 | 696 | 3,323 | |
| IV. Fixed-income securities | 528,699 | 529,973 | 159,182 | 104,221 | 210,754 | 80,740 | |
| 1. Available for sale | 511,492 | 509,601 | 126,345 | 87,591 | 206,831 | 78,384 | |
| 2. At fair value through profit or loss | 17,207 | 20,372 | 32,837 | 16,629 | 3,923 | 2,355 | |
| V. Loans and other investments | 67,595 | 83,440 | 9,709 | 11,134 | 4,515 | 3,760 | |
| 1. Loans | 27,101 | 36,371 | 1,604 | 1,160 | 3,942 | 3,353 | |
| 2. Other investments | 40,493 | 47,069 | 8,104 | 9,974 | 572 | 408 | |
| VI. Derivative financial instruments (trading portfolio) | –10,285 | –5,779 | 38,059 | 33,952 | 84,538 | 73,489 | |
| VII. Investment administration expenses, interest paid and other | |||||||
| investment expenses | –58,210 | –78,981 | 0 | 0 | 0 | 0 | |
| Total (amount consolidated) | 669,565 | 681,306 | 224,168 | 168,949 | 462,686 | 386,394 |
The adjustment of valuation allowances relates both the reversal of impairment losses as well as the impairment of financial assets, excluding assets held for trading and financial assets at fair value through profit or loss. The interest income from impaired portfolio items amounts to €19,148 thousand (2013: €45,935 thousand). The net investment income of €864,375 thousand includes realised and unrealised gains and losses amounting to €194,809 thousand, which include currency gains of €25,776 thousand. These are essentially the result of investments in US dollars amounting to €36,738 thousand. The currency gains in the underlying US dollar securities amounted to around €128,912 thousand, and these were accompanied by expenditures from derivative financial instruments within the scope of hedging transactions amounting to €92,174 thousand. In addition, currency effects amounting to €9,277 thousand were recognised directly in equity.
Income from investment property includes rent revenue in the amount of €112,048 thousand (2013: €114,898 thousand) and direct operational expenses in the amount of €34,591thousand (2013: €39,890 thousand).
| Of which available-for-sale securities Type of investment |
Current income Reversal of impairment losses |
Gains on disposals | |||||
|---|---|---|---|---|---|---|---|
| in € thousand | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
| III. Variable-income securities | |||||||
| 1. Available for sale | 34,803 | 52,369 | 6,329 | 3,954 | 32,063 | 129,707 | |
| Shares in affiliated companies | 702 | 331 | 0 | 0 | 11 | 14,790 | |
| Equity | 1,745 | 27,478 | 1,066 | 118 | 2,626 | 55,911 | |
| Equity funds | 12,353 | 4,898 | 0 | 1,719 | 29,104 | 14,995 | |
| Bonds not capital-guaranteed | 9,098 | 8,707 | 5,263 | 2,117 | 188 | 2,441 | |
| Other variable-income securities | 1,525 | 912 | 0 | 0 | 0 | 0 | |
| Equity investments and other investments | 9,380 | 10,043 | 0 | 1 | 135 | 41,569 | |
| IV. Fixed-income securities | |||||||
| 1. Available for sale | |||||||
| Fixed-income securities | 511,492 | 509,601 | 126,345 | 87,591 | 206,831 | 78,384 |
| of which adjustment to valuation allowance |
Group | Losses on disposals | Depreciation and impairment losses | ||||
|---|---|---|---|---|---|---|---|
| 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 |
| –11,226 | –33,282 | 100,538 | 118,571 | –3,916 | –6,368 | –63,723 | –79,066 |
| 0 | 0 | 22,229 | 23,583 | 0 | 0 | 0 | 0 |
| –29,999 | –20,173 | 136,305 | 40,505 | –21,735 | –11,997 | –52,254 | –41,776 |
| –29,999 | –20,173 | 130,583 | 32,809 | –18,940 | –10,501 | –36,507 | –29,885 |
| 0 | 0 | 5,722 | 7,696 | –2,795 | –1,495 | –15,746 | –11,891 |
| –39,208 | –10,114 | 475,811 | 765,202 | –6,334 | –47,266 | –232,788 | –86,168 |
| –39,208 | –10,114 | 453,548 | 782,422 | –6,131 | –34,327 | –215,899 | –27,919 |
| 0 | 0 | 22,263 | –17,221 | –204 | –12,939 | –16,890 | –58,249 |
| –804 | –5,507 | 95,320 | 71,977 | –1,582 | –3,226 | –1,431 | –6,615 |
| –804 | –5,507 | 38,832 | 24,009 | –1,248 | –3,132 | –804 | –5,507 |
| 0 | 0 | 56,488 | 47,968 | –335 | –94 | –628 | –1,108 |
| 0 | 0 | 28,779 | –97,252 | –33,413 | –177,657 | –39,470 | –31,908 |
| 0 | 0 | –78,981 | –58,210 | 0 | 0 | 0 | 0 |
| –81,236 | –69,077 | 780,002 | 864,375 | –66,981 | –246,512 | –389,666 | –245,533 |
| of which adjustment to valuation allowance |
Group | Losses on disposals | losses | Depreciation, amortisation and impairment | |||
|---|---|---|---|---|---|---|---|
| 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 |
| –29,999 | –20,173 | 130,583 | 32,809 | –18,940 | –10,501 | –36,507 | –29,885 |
| 0 | 0 | 13,386 | 710 | –1,736 | 0 | 0 | -3 |
| –10,470 | –1,543 | 57,542 | 3,146 | –13,019 | –31 | –12,946 | –2,261 |
| –5,941 | –1,362 | 13,540 | 32,968 | –349 | –4,839 | –7,724 | –3,649 |
| –10,500 | –3,406 | –2,169 | 251 | –2,685 | –5,629 | –12,749 | –8,669 |
| 0 | 0 | 912 | 1,525 | 0 | 0 | 0 | 0 |
| –3,088 | –13,862 | 47,373 | –5,791 | –1,151 | -2 | –3,089 | –15,304 |
| –39,208 | –10,114 | 453,548 | 782,422 | –6,131 | –34,327 | –215,899 | –27,919 |
| in € thousand | 2014 | 2013 |
|---|---|---|
| a) Other non-insurance income | 55,669 | 37,086 |
| Property and casualty insurance | 28,360 | 18,188 |
| Health insurance | 4,051 | 5,879 |
| Life insurance | 23,258 | 13,019 |
| of which | ||
| services | 5,797 | 7,379 |
| changes in exchange rates | 28,862 | 13,217 |
| other | 21,010 | 16,490 |
| b) Other income | 6,758 | 3,504 |
| from currency translation | 517 | 490 |
| other | 6,242 | 3,014 |
| Total (amount consolidated) | 62,428 | 40,589 |
| in € thousand | 2014 | 2013 |
|---|---|---|
| a) Other non-technical expenses | 64,182 | 30,186 |
| Property and casualty insurance | 29,909 | 21,219 |
| Health insurance | 1,401 | 434 |
| Life insurance | 32,872 | 8,533 |
| of which | ||
| services | 467 | 1,288 |
| exchange rate losses | 34,816 | 7,372 |
| motor vehicle registration | 9,028 | 6,892 |
| special tax on the financial sector (Hungary) | 0 | 0 |
| other | 19,870 | 14,634 |
| b) Other expenses | 6,153 | 2,227 |
| For currency translation | 4,611 | 1,474 |
| Other | 1,541 | 753 |
| Total (amount consolidated) | 70,334 | 32,413 |
| Income taxes in € thousand |
2014 | 2013 | |
|---|---|---|---|
| Actual tax – reporting year | 66,877 | 60,614 | |
| Actual tax – previous years | –13,212 | 2,641 | |
| Deferred taxes | 31,390 | 6,456 | |
| Total (amount consolidated) | 85,055 | 69,711 |
| Reconciliation statement 2014 in € thousand |
2013 | ||
|---|---|---|---|
| A. Profit/(loss) from ordinary activities | 377,932 | 307,569 | |
| B. Expected tax expense (A. * Group tax rate) | 94,483 | 76,892 | |
| Adjusted by tax effects from | |||
| 1. Tax-exempt investment income | –7,103 | –7,653 | |
| 2. Other | –2,325 | 86 | |
| Amortisation of goodwill and impairment losses | 6,250 | 0 | |
| Tax-neutral consolidation effects | –1,112 | –3,388 | |
| Other non-deductible expenses/other tax-exempt income | 3,866 | 13,007 | |
| Changes in tax rates | –237 | –1,796 | |
| Deviations in tax rates | 196 | –5,422 | |
| Prior-year taxes | –13,212 | 2,641 | |
| Loss carryforwards no longer applicable and other | 1,925 | –4,570 | |
| C. Income tax expense | 85,055 | 69,711 | |
| Average effective tax rate in per cent | 22.5 | 22.7 |
The basic corporate income tax rate applied for all segments was 25 per cent. Deviating corporate tax rates arise in life insurance in which minimum taxation is applied – with an assumed profit participation of 85 per cent.
The calculation of deferred taxes is based on the specific tax rates of each country that the Group companies are based in, which were between 9 and 35 per cent in 2014. Changes in tax rates already decided effective 31 December 2014 are taken into account.
| Personnel expenses1) in € thousand |
2014 | 2013 |
|---|---|---|
| Salaries and wages | 388,352 | 389,930 |
| Termination benefit expenses | 3,573 | 63 |
| Pension expenses | 52,375 | 28,091 |
| Statutory social security contributions as well as remuneration-dependent levies and | ||
| mandatory contributions | 108,676 | 110,429 |
| Other social expenses | 8,498 | 8,981 |
| Total | 561,473 | 537,494 |
| of which selling | 160,183 | 151,388 |
| of which administration | 368,358 | 355,487 |
| 1) Data is based on IFRS measurement. | ||
| Average number of employees | 2014 | 2013 |
| Total | 14,336 | 14,277 |
| of which selling | 5,821 | 5,893 |
| of which administration | 8,515 | 8,384 |
| in € thousand | 2014 | 2013 |
| Termination benefit and pension expenses were attributable to | ||
| Members of the Management Board and executives as defined by section 80(1) of the | ||
| Aktiengesetz (AktG Austrian Stock Corporation Act) | 8,319 | 8,352 |
| Other employees | 39,013 | 41,331 |
Both figures include the expenses for pensioners and surviving dependants (basis: Austrian Commercial Code measurement). The indicated expenses were recharged to operating subsidiaries based on defined company processes.
The active salaries of the members of the Management Board at UNIQA Insurance Group AG amounted to €3,344 thousand in the reporting period (2013: €4,923 thousand). The amount expended on pensions in the reporting period for former members of the Management Board and their survivors was €2,706 thousand (2013: €2,699 thousand).
The compensation to the members of the Supervisory Board for their work in the 2013 financial year was €380 thousand. Provisions of €444 thousand have been recognised for the remuneration to be paid for this work in 2014. The amount paid out in attendance fees and cash expenditures in the financial year was €33 thousand (2013: €31 thousand).
There are no advance payments or loans to or liabilities for members of the Management Board and the Supervisory Board.
In the 2013 financial year, the UNIQA Group introduced a share-based remuneration programme for members of the Management Board of UNIQA Insurance Group AG and for selected members of the Management Board of UNIQA Österreich Versicherungen AG, Raiffeisen Versicherung AG and UNIQA International AG. In accordance with this programme, entitled employees are conditionally awarded virtual 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. The first conditional award took place retrospectively effective 1 January 2013 and included 246,888 virtual shares in the UNIQA Insurance Group AG. The length of the benefit period for each tranche runs until 31 December 2016. No further shares were awarded.
The precise payment amount is contingent upon achieving performance targets, building up and holding UNIQA ordinary shares in real terms and holding an employment contract as a member of the Management Board by the end of the relevant benefit period. The amount of the cash payment at the end of the fourth year is linked to the average price for the ordinary share in the second half of 2016 and on achieving both performance targets, which are both weighted 50%.
Determination of the first component (Performance Target 1) is based purely on market-based criteria (TSR), which results in an expected degree of achievement of 45%. The fair value was determined using Monte Carlo modelling. No employment and market independent performance conditions (Performance Target 2) linked to business transactions were taken into account in determining the fair value. Measurement of the second component (Performance Target 2) is contingent upon non-market based criteria. The expected degree of achievement of 80% was determined based on performance as at 31 December 2013 and 31 December 2014, resulting in 80% target achievement.
The provision amount determined at year-end is split up into both components of the sharebased obligation as follows:
| in € thousand | 1/1/2014 | 31/12/2014 |
|---|---|---|
| TSR tranche (Performance Target 1) | 209 | 214 |
| ROE tranche (Performance Target 2) | 218 | 380 |
| Total provision | 427 | 594 |
The following parameters were used to determine the fair value on the date of the award and on the measurement date for the virtual shares:
| Award date 1/1/2013 |
Valuation date 31/12/2014 |
|
|---|---|---|
| TSR tranche (Performance Target 1) | ||
| Fair value (in EUR) | 6.69 | 3.47 |
| Share price (in EUR) | 9.32 | 7.78 |
| Simulated share price as at 31/12/2016 | 7.71 | |
| Exercise price (in EUR) | 0.00 | 0.00 |
| Expected volatility (weighted average, in per cent) | - | 19.7 |
| Expected life (weighted average, in years) | 4.0 | 2.0 |
| Discount rate (based on AA corporate bonds, in per cent) | 1.2 | 0.1 |
| ROE tranche (Performance Target 2) | ||
| Fair value (in EUR) | 8.75 | 6.17 |
| Share price (in EUR) | 9.32 | 7.78 |
| Exercise price (in EUR) | 0.00 | 0.00 |
| Expected volatility (weighted average, in per cent) | 0.0 | 0.0 |
| Expected life (weighted average, in years) | 4.0 | 2.0 |
| Discount rate (based on AA corporate bonds, in per cent) | 1.2 | 0.1 |
The expected volatility is based on an assessment of historical volatility for the Company's share price over the past year.
No virtual shares were forfeited or exercised in the current financial year.
The obligations from share-based remuneration are stated under Other provisions (Note 27) and are also included under the statements on Related party transactions – individuals.
The parent company of the UNIQA Group is UNIQA Insurance Group AG. This company is registered in the company registry of the Commercial Court of Vienna under FN 92933t. In addition to its duties as Group holding company, this company also performs the duties of a group reinsurer.
Companies in the UNIQA Group maintain various relationships with related companies and persons.
In accordance with IAS 24, related companies are identified as those companies which either exercise a controlling or crucial influence on the UNIQA Group. The group of companies also includes the non-consolidated subsidiaries, associates and joint ventures of the UNIQA Group.
The related individuals include the members of management holding key positions for the purposes of IAS 24 along with their close family members. This also includes in particular the members of management in key positions at those companies which either exercise a controlling or crucial influence on the UNIQA Group, along with their close family members.
| Companies with significant influence on the UNIQA Group |
Unconsolidated subsidiaries |
Associates of the UNIQA Group |
Other companies | Total | |
|---|---|---|---|---|---|
| Transactions 2014 | |||||
| Premiums written (gross) | 318 | 1,592 | 812 | 58,659 | 61,381 |
| Interest income and expenses from loans with companies that are related parties | 0 | 1,400 | 0 | 1,546 | 2,946 |
| Interest income and expenses from loans with banks that are related parties and | |||||
| from investments in companies that are related parties | 374 | 4,366 | 10,110 | 30,874 | 45,724 |
| At 31/12/2014 | |||||
| Investments at fair value | 138,935 | 198,305 | 519,123 | 385,211 | 1,241,574 |
| Bank deposits | 0 | 417,723 | 261 | 358,177 | 776,161 |
| Companies with significant influence on the UNIQA Group |
Unconsolidated subsidiaries |
Associates of the UNIQA Group |
Other companies | Total | |
|---|---|---|---|---|---|
| Transactions 2013 | |||||
| Premiums written (gross) | 0 | 1,642 | 1,258 | 115,243 | 118,143 |
| Interest income and expenses from loans with companies that are related parties | 572 | 185 | 0 | 602 | 1,359 |
| Interest income and expenses from loans with banks that are related parties and | |||||
| from investments in companies that are related parties | 374 | 728 | 5,358 | 44,730 | 51,189 |
| At 31/12/2013 | |||||
| Investments at fair value | 168,989 | 16,507 | 535,039 | 882,640 | 1,445,370 |
| Bank deposits | 32 | 1,099 | 2,207 | 1,103,302 | 1,106,640 |
| in € thousand | 2014 | 2013 |
|---|---|---|
| Premiums written (gross) | 824 | 837 |
| Salaries and short-term benefits due in the short term1) | 3,725 | 5,108 |
| Pension expenses | 857 | 1,571 |
| Post-employment benefits | 45 | 1,424 |
| Share-based payments | 89 | 226 |
| Other income | 251 | 300 |
1) This item includes fixed and variable Management Board and Supervisory Board remuneration components.
| in € thousand | 31/12/2014 | 31/12/2013 |
|---|---|---|
| Contingent liabilities from litigation risks | 24,189 | 19,720 |
| Austria | 0 | 0 |
| Outside of Austria | 24,189 | 19,720 |
| Other contingent liabilities | 12,125 | 10,830 |
| Austria | 12,125 | 10,570 |
| Outside of Austria | 0 | 261 |
| Total | 36,313 | 30,550 |
The companies of the UNIQA Group are involved in court proceedings in Austria and other countries in connection with their ordinary business operations as insurance companies. The result of the pending or threatened proceedings is often impossible to determine or predict.
In consideration of the provisions set aside for these proceedings, the management is of the opinion that these proceedings have no significant effects on the financial situation and the operating earnings of the UNIQA Group.
During the incorporation of portions of the Ukrainian company Closed JSC Credo-Classic Insurance Company (now Private JSC UNIQA), agreements were entered into which obligate UNIQA Internationale Beteiligungs-Verwaltungs GmbH to purchase share packages of the local non-controlling shareholders through option agreements on the basis of a predefined purchase price formula. It was initially agreed to exercise the option in the second quarter of 2012, and this was postponed to the 2016 financial year as part of an amendment of the transaction contracts in 2011. In the 2013 financial year, these non-controlling interests were reclassified as equity within the scope of an adjustment for the previous year in accordance with IAS 8 and were stated as other Liabilities with rectification of the proportionate goodwill. The liability amounts to €4,844 thousand, unchanged from the previous year.
| in € thousand | 2014 | 2013 |
|---|---|---|
| Current lease expenses | 7,826 | 6,825 |
| Future lease payments in connection with the financing of the UNIQA Group headquarters in | ||
| Vienna | ||
| up to 1 year | 5,102 | 5,090 |
| more than 1 year up to 5 years | 17,859 | 20,360 |
| more than 5 years | 0 | 2,545 |
| Total | 22,961 | 27,996 |
| Income from subleases | 550 | 692 |
We moved into the UNIQA Group headquarters – the UNIQA Tower – in 2004. The aforementioned leasing obligations are based on the investment expenditures in connection with a specific calculatory interest rate.
The auditor fees in the financial year were €1,100 thousand (2013: €4,423 thousand); of which €280 thousand (2013: €223 thousand) is attributable to the annual audit, €652 thousand (2013: €4,110 thousand) to other auditing services and €168 thousand (2013: €90 thousand) to other services.
| Company | Type | Domicile | Equity in € million1) |
Share of equity In per cent2) |
|---|---|---|---|---|
| Austrian insurance companies | ||||
| UNIQA Insurance Group AG (Group holding company) | 1029 Vienna | |||
| UNIQA Österreich Versicherungen AG | Consolidated | 1029 Vienna | –699.9 | 100.0 |
| Salzburger Landes-Versicherung AG | Consolidated | 5020 Salzburg | –29.0 | 100.0 |
| Raiffeisen Versicherung AG | Consolidated | 1029 Vienna | –762.1 | 100.0 |
| FINANCELIFE Lebensversicherung AG | Consolidated | 1029 Vienna | –87.0 | 100.0 |
| SK Versicherung Aktiengesellschaft | Equity-accounted | 1050 Vienna | 11.7 | 25.0 |
| Foreign insurance companies | ||||
| UNIQA Assurances S.A. | Consolidated | Switzerland, Geneva | –14.0 | 100.0 |
| UNIQA Re AG | Consolidated | Switzerland, Zurich | –250.2 | 100.0 |
| UNIQA Assicurazioni S.p.A. | Consolidated | Italy, Milan | –239.5 | 100.0 |
| UNIQA pojišťovna a.s. | Consolidated | Slovakia, Bratislava | –42.0 | 99.9 |
| UNIQA pojištovna, a.s. | Consolidated | The Czech Republic, Prague | –58.9 | 100.0 |
| UNIQA osiguranje d.d. | Consolidated | Croatia, Zagreb | –60.4 | 100.0 |
| UNIQA Towarzystwo Ubezpieczeń S.A. | Consolidated | Poland, Lodz | –84.4 | 98.6 |
| UNIQA Towarzystwo Ubezpieczeń na Zycie S.A. | Consolidated | Poland, Lodz | –13.8 | 99.8 |
| UNIQA Biztosító Zrt. | Consolidated | Hungary, Budapest | –17.9 | 100.0 |
| UNIQA Lebensversicherung AG | Consolidated | Liechtenstein, Vaduz | –4.4 | 100.0 |
| UNIQA Versicherung AG | Consolidated | Liechtenstein, Vaduz | –8.5 | 100.0 |
| UNIQA Previdenza S.p.A. | Consolidated | Italy, Milan | –153.5 | 100.0 |
| UNIQA Osiguranje d.d. | Consolidated | Bosnia and Herzegovina, Sarajevo | –7.5 | 99.8 |
| UNIQA Insurance plc. | Consolidated | Bulgaria, Sofia | –6.9 | 99.9 |
| UNIQA Life Insurance plc. | Consolidated | Bulgaria, Sofia | –5.6 | 99.7 |
| UNIQA životno osiguranje a.d. | Consolidated | Serbia, Belgrade | –7.4 | 100.0 |
| Insurance company "UNIQA" | Consolidated | Ukraine, Kiev | –10.4 | 100.0 |
| UNIQA LIFE | Consolidated | Ukraine, Kiev | –10.3 | 100.0 |
| UNIQA životno osiguranje a.d. | Consolidated | Montenegro, Podgorica | –1.8 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Consolidated | Serbia, Belgrade | –11.1 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Consolidated | Montenegro, Podgorica | –3.9 | 100.0 |
| UNIQA Asigurari S.A. | Consolidated | Romania, Bucharest | –42.4 | 100.0 |
| UNIQA Life S.A. | Consolidated | Romania, Bucharest | –5.9 | 100.0 |
| Raiffeisen Life Insurance Company LLC | Consolidated | Russia, Moscow | 0.7 | 75.0 |
| UNIQA Life S.p.A. | Consolidated | Italy, Milan | –57.3 | 90.0 |
| SIGAL UNIQA GROUP AUSTRIA Sh.a. | Consolidated | Albania, Tirana | –22.7 | 68.6 |
| UNIQA AD Skopje | Consolidated | Macedonia, Skopje | –5.2 | 100.0 |
| SIGAL Life UNIQA Group AUSTRIA Sh.a. | Consolidated | Albania, Tirana | –4.5 | 100.0 |
| SIGAL UNIQA Group AUSTRIA Sh.a. | Consolidated | Kosovo, Priština | –3.7 | 100.0 |
| UNIQA Life AD Skopje | Consolidated | Macedonia, Skopje | –3.0 | 100.0 |
| SIGAL Life UNIQA Group AUSTRIA Sh.a | Consolidated | Kosovo, Priština | –3.8 | 100.0 |
| SH.A.F.P SIGAL Life UNIQA Group AUSTRIA Sh.A. | Consolidated | Albania, Tirana | –0.1 | 51.0 |
| Austrian Group service companies | ||||
| UNIQA Real Estate Management GmbH | Consolidated | 1029 Vienna | –2.2 | 100.0 |
| Versicherungsmarkt-Servicegesellschaft m.b.H. | Consolidated | 1010 Vienna | –0.2 | 100.0 |
| Agenta Risiko– und Finanzierungsberatung Gesellschaft m.b.H. | Consolidated | 1010 Vienna | –1.2 | 100.0 |
| Raiffeisen Versicherungsmakler Vorarlberg GmbH | Equity-accounted | 6900 Bregenz | 0.3 | 50.0 |
| Versicherungsbüro Dr. Ignaz Fiala Gesellschaft m.b.H. | 4) | 1010 Vienna | 33.3 | |
| RSG – Risiko Service und Sachverständigen GmbH | 3) | 1029 Vienna | 100.0 | |
| Dr. E. Hackhofer EDV-Softwareberatung Gesellschaft m.b.H. | Consolidated | 1070 Vienna | 0.0 | 100.0 |
UNIQA IT Services GmbH Consolidated 1029 Vienna –0.7 100.0
| Company | Type | Domicile | Equity in € million1) |
Share of equity In per cent2) |
|---|---|---|---|---|
| UNIQA Capital Markets GmbH | Consolidated | 1020 Vienna | –4.5 | 100.0 |
| UNIQA International AG | Consolidated | 1029 Vienna | –196.7 | 100.0 |
| UNIQA Internationale Beteiligungs-Verwaltungs GmbH | Consolidated | 1029 Vienna | –553.8 | 100.0 |
| Alopex Organisation von Geschäftskontakten GmbH | 3) | 1020 Vienna | 100.0 | |
| RC RISK-CONCEPT Versicherungsmakler GmbH | 3) | 1029 Vienna | 100.0 | |
| Assistance Beteiligungs-GmbH | Consolidated | 1010 Vienna | –0.3 | 64.0 |
| Real Versicherungsvermittlung GmbH (previously: Real Versicherungs-Makler | 3) | 1220 Vienna | ||
| GmbH) | 4) | 100.0 | ||
| Together Internet Services GmbH | 3) | 1030 Vienna | 22.6 | |
| UNIQA HealthService – Services im Gesundheitswesen GmbH | 1029 Vienna | 100.0 | ||
| UNIQA Real Estate Beteiligungsverwaltung GmbH | Consolidated 3) |
1029 Vienna | –16.6 | 100.0 |
| Privatklinik Grinzing GmbH | 3) | 1190 Vienna | 100.0 | |
| Versicherungsagentur Wilhelm Steiner GmbH | 1029 Vienna | 100.0 | ||
| UNIQA Real Estate Finanzierungs GmbH | Consolidated | 1029 Vienna | –3.7 | 100.0 |
| UNIQA Group Audit GmbH | Consolidated | 1029 Vienna | –0.1 | 100.0 |
| Valida Holding AG | Equity-accounted 4) |
1020 Vienna | 81.1 | 40.1 |
| RVCM GmbH | 3) | 1010 Vienna | 50.0 | |
| NewMoove GmbH (previously: F&R Multimedia GmbH) | 3) | 1060 Vienna | 61.0 | |
| PremiaFIT Facility und IT Management u. Service GmbH | 1190 Vienna | 75.0 | ||
| RHG Management GmbH | Consolidated | 1020 Vienna | –25.1 | 100.0 |
| UNIQA Finanzbeteiligung GmbH | Consolidated 3) |
1020 Vienna | –136.3 | 100.0 |
| UNIQA International Corporate Business GmbH | 1029 Vienna | 100.0 | ||
| Foreign Group service companies | ||||
| UNIQA Raiffeisen Software Service Kft. | Consolidated | Hungary, Budapest | –0.5 | 60.0 |
| InsData spol. s.r.o. | Consolidated | Slovakia, Nitra | –2.2 | 98.0 |
| ProUNIQA s.r.o. | 3) | The Czech Republic, Prague | 100.0 | |
| UNIPARTNER s.r.o. | Consolidated | Slovakia, Bratislava | 0.1 | 100.0 |
| UNIQA InsService spol. s.r.o. | Consolidated | Slovakia, Bratislava | –0.2 | 100.0 |
| UNIQA Ingatlanhasznosító Kft. | Consolidated | Hungary, Budapest | –4.7 | 100.0 |
| UNIQA Szolgáltató Kft. | Consolidated | Hungary, Budapest | 3.7 | 100.0 |
| UNIQA Claims Services International Kft. | 3) | Hungary, Budapest | 100.0 | |
| RC Risk Concept Vaduz | 3) | Liechtenstein, Vaduz | 100.0 | |
| Első Közszolgálati Pénzügyi Tanácsadó Kft. | 3) | Hungary, Budapest | 92.4 | |
| UNIQA Számitástechnikai Szolgáltató Kft. | Consolidated | Hungary, Budapest | –0.1 | 100.0 |
| UNIQA Intermediazioni S.r.l. | 3) | Italy, Milan | 100.0 | |
| Vitosha Auto OOD | Consolidated | Bulgaria, Sofia | –0.1 | 100.0 |
| UNIQA Raiffeisen Software Service S.R.L. | Consolidated | Romania, Klausenburg | –0.2 | 60.0 |
| UNIQA Software Service Bulgaria OOD | 3) | Bulgaria, Plovdiv | 99.0 | |
| UNIQA Software Service Ukraine GmbH | 3) | Ukraine, Kiev | 99.0 | |
| UNIQA Assistance doo Sarajevo | 3) | Bosnia and Herzegovina, Sarajevo | 99.8 | |
| UNIQA Agent doo za zastupanje u osiguranju Banja Luka | 3) | Bosnia and Herzegovina, Banja Luka | 99.8 | |
| UNIQA Agent doo za zastupanje u osiguranju Sarajevo | 3) | Bosnia and Herzegovina, Sarajevo | 99.8 | |
| UNIQA Software Service Kft. | 3) | Hungary, Budapest | 100.0 | |
| UNIPROINS CONSULTANTA SA | 3) | Romania, Bucharest | 100.0 | |
| sTech d.o.o. | 3) | Serbia, Belgrade | 100.0 | |
| UNIQA Services Sp. z o.o. | 3) | Poland, Lodz | 100.0 | |
| Poliklinika Medico | Consolidated | Croatia, Rijeka | –0.2 | 100.0 |
| Dekra-Expert Műszaki Szakértői Kft. | Equity-accounted | Hungary, Budapest | 0.7 | 50.0 |
| Company | Type | Domicile | Equity in € million1) |
Share of equity In per cent2) |
|---|---|---|---|---|
| Financial and strategic equity investments – Austria | ||||
| Medial Beteiligungs-Gesellschaft m.b.H. | Equity-accounted | 1010 Vienna | 31.3 | 29.6 |
| PremiQaMed Holding GmbH*) | Consolidated | 1010 Vienna | –75.5 | 100.0 |
| PremiQaMed Immobilien GmbH | Consolidated | 1010 Vienna | –19.8 | 100.0 |
| PremiQaMed Privatkliniken GmbH | Consolidated | 1190 Vienna | –7.0 | 100.0 |
| Ambulatorien Betriebsgesellschaft m.b.H. | Consolidated | 1190 Vienna | –0.6 | 100.0 |
| STRABAG SE*) | Equity-accounted | 9500 Villach | 2,986.3 | 13.8 |
| PremiQaMed Management GmbH | Consolidated | 1190 Vienna | –0.4 | 100.0 |
| GENIA CONSULT Unternehmensberatungs Gesellschaft mbH | 3) | 1190 Vienna | 74.0 | |
| R-SKA Baden Betriebs-GmbH | 4) | 2500 Baden | 49.0 | |
| Privatklinik Villach Gesellschaft m.b.H. & Co. KG | 4) | 9020 Klagenfurt | 34.9 | |
| Privatklinik Villach Gesellschaft m.b.H. | 4) | 9020 Klagenfurt | 25.0 | |
| call us Assistance International GmbH | Equity-accounted | 1090 Vienna | 0.9 | 61.0 |
| UNIQA Leasing GmbH | 4) | 1061 Vienna | 25.0 | |
| UNIQA Internationale Anteilsverwaltung GmbH | Consolidated | 1020 Vienna | –163.4 | 100.0 |
| UNIQA Beteiligungs-Holding GmbH | Consolidated | 1029 Vienna | –50.1 | 100.0 |
| UNIQA Erwerb von Beteiligungen Gesellschaft m.b.H. | Consolidated | 1029 Vienna | –11.5 | 100.0 |
| Real-estate companies | ||||
| UNIQA Real Estate CZ, s.r.o. | Consolidated | The Czech Republic, Prague | 15.0 | 100.0 |
| UNIQA Real s.r.o. | Consolidated | Slovakia, Bratislava | 0.5 | 100.0 |
| UNIQA Real II s.r.o. | Consolidated | Slovakia, Bratislava | 1.0 | 100.0 |
| Steigengraben-Gut Gesellschaft m.b.H. | 3) | 1020 Vienna | 100.0 | |
| Raiffeisen evolution project development GmbH | Equity-accounted | 1030 Vienna | 131.9 | 20.0 |
| DIANA-BAD Errichtungs– und Betriebs GmbH | Equity-accounted | 1020 Vienna | 1.1 | 33.0 |
| UNIQA Real Estate AG | Consolidated | 1029 Vienna | –168.1 | 100.0 |
| UNIQA Real Estate Zweite Beteiligungsverwaltung GmbH | Consolidated | 1020 Vienna | –19.6 | 100.0 |
| Design Tower GmbH | Consolidated | 1029 Vienna | –87.0 | 100.0 |
| Aspernbrückengasse Errichtungs– und Betriebs GmbH | Consolidated | 1029 Vienna | –10.2 | 99.0 |
| UNIQA Real Estate Holding GmbH | Consolidated | 1029 Vienna | –42.7 | 100.0 |
| UNIQA Real Estate Dritte Beteiligungsverwaltung GmbH | Consolidated | 1029 Vienna | –12.3 | 100.0 |
| UNIQA Real Estate Vierte Beteiligungsverwaltung GmbH | Consolidated | 1029 Vienna | –4.6 | 100.0 |
| "Hotel am Bahnhof" Errichtungs GmbH & Co KG | Consolidated | 1020 Vienna | –10.5 | 100.0 |
| GLM Errichtungs GmbH | Consolidated | 1010 Vienna | –1.6 | 100.0 |
| EZL Entwicklung Zone Lassallestraße GmbH & Co. KG | Consolidated | 1029 Vienna | –37.2 | 100.0 |
| Fleischmarkt Inzersdorf Vermietungs GmbH | Consolidated | 1020 Vienna | –7.4 | 100.0 |
| Praterstraße Eins Hotelbetriebs GmbH | Consolidated | 1020 Vienna | –2.5 | 100.0 |
| UNIQA Plaza Irodaház és Ingatlankezelő Kft. | Consolidated | Hungary, Budapest | 1.2 | 100.0 |
| HKM Immobilien GmbH | 3) | Germany, Mannheim | 100.0 | |
| Floreasca Tower SRL | Consolidated | Romania, Bucharest | 16.8 | 100.0 |
| Pretium Ingatlan Kft. | Consolidated | Hungary, Budapest | 4.9 | 100.0 |
| UNIQA poslovni centar Korzo d.o.o. | Consolidated | Croatia, Rijeka | 2.5 | 100.0 |
| UNIQA-Invest Kft. | Consolidated | Hungary, Budapest | 9.4 | 100.0 |
| Knesebeckstraße 8–9 Grundstücksgesellschaft mbH | Consolidated | Germany, Berlin | 2.2 | 100.0 |
| UNIQA Real Estate Bulgaria EOOD | Consolidated | Bulgaria, Sofia | 1.3 | 100.0 |
| UNIQA Real Estate BH nekretnine, d.o.o. | Consolidated | Bosnia and Herzegovina, Sarajevo | 3.7 | 100.0 |
| UNIQA Real Estate d.o.o. | Consolidated | Serbia, Belgrade | 2.6 | 100.0 |
| Company | Type | Domicile | Equity in € million1) |
Share of equity In per cent2) |
|---|---|---|---|---|
| Renaissance Plaza d.o.o. | Consolidated | Serbia, Belgrade | 2.5 | 100.0 |
| IPM International Property Management Kft. | Consolidated | Hungary, Budapest | 1.3 | 100.0 |
| UNIQA Real Estate Polska Sp. z o.o. | Consolidated | Poland, Warsaw | 7.4 | 100.0 |
| Black Sea Investment Capital | Consolidated | Ukraine, Kiev | –10.3 | 100.0 |
| LEGIWATON INVESTMENTS LIMITED | Consolidated | Cyprus, Limassol | 0.1 | 100.0 |
| UNIQA Real III, spol. s.r.o. | Consolidated | Slovakia, Bratislava | 4.1 | 100.0 |
| UNIQA Real Estate BV | Consolidated | Netherlands, Hoofddorp | 10.5 | 100.0 |
| UNIQA Real Estate Ukraine | Consolidated | Ukraine, Kiev | 0.0 | 100.0 |
| Reytarske | Consolidated | Ukraine, Kiev | –9.7 | 100.0 |
| ALBARAMA LIMITED | Consolidated | Cyprus, Nicosia | 5.1 | 100.0 |
| AVE-PLAZA LLC | Consolidated | Ukraine, Kharkiv | –1.7 | 100.0 |
| Asena CJSC | Consolidated | Ukraine, Nikolaev | –3.7 | 100.0 |
| BSIC Holding GmbH | Consolidated | Ukraine, Kiev | 0.0 | 100.0 |
| Suoreva Ltd. | Consolidated | Cyprus, Limassol | 0.0 | 100.0 |
| Sedmi element d.o.o. | Consolidated | Croatia, Zagreb | 0.4 | 100.0 |
| Deveti element d.o.o. | Consolidated | Croatia, Zagreb | –1.1 | 100.0 |
| Kremser Landstraße Projektentwicklung GmbH | Consolidated | 1020 Vienna | –9.4 | 100.0 |
| Schöpferstraße Projektentwicklung GmbH | Consolidated | 1020 Vienna | –5.6 | 100.0 |
| "BONADEA" Immobilien GmbH | Consolidated | 1020 Vienna | –3.2 | 100.0 |
| "Graben 27–28" Besitzgesellschaft m.b.H. | Consolidated | 1010 Vienna | –25.7 | 100.0 |
| Hotel Burgenland Betriebs GmbH | Consolidated | 1029 Vienna | 0.0 | 100.0 |
| R-FMZ Immobilienholding GmbH | Consolidated | 1020 Vienna | –30.8 | 100.0 |
| Neue Marktgasse Einkaufspassage Stockerau GmbH | Consolidated | 1020 Vienna | –4.0 | 100.0 |
| DEVELOP Baudurchführungs– und Stadtentwicklungs-Gesellschaft m.b.H. |
Consolidated | 1020 Vienna | –9.2 | 100.0 |
| Raiffeisen-Fachmarktzentrum Mercurius GmbH | Consolidated | 1020 Vienna | –12.2 | 100.0 |
| Raiffeisen-Fachmarktzentrum ZWEI GmbH | Consolidated | 1020 Vienna | –13.2 | 100.0 |
| Raiffeisen-Fachmarktzentrum Ivesis GmbH | Consolidated | 1020 Vienna | –10.1 | 100.0 |
| Raiffeisen-Fachmarktzentrum VIER GmbH | Consolidated | 1020 Vienna | –24.0 | 100.0 |
| Raiffeisen-Fachmarktzentrum SIEBEN GmbH | Consolidated | 1020 Vienna | –6.7 | 100.0 |
| R-FMZ "MERCATUS" Holding GmbH | Consolidated | 1020 Vienna | –50.5 | 100.0 |
1) For consolidated companies, equity disclosed corresponds to the local annual, or, for companies marked *), consolidated financial statements,
and for equity-accounted companies, equity corresponds to the last available annual, or, for companies marked *), consolidated financial statements. 2) Share of equity corresponds to control before taking account of any non-controlling interests in the Group.
3) Affiliated unconsolidated companies (due to immateriality)
4) Associates not accounted for under the equity method (due to immateriality)
These consolidated financial statements were prepared by the Management Board as of the date of signing and approved for publication.
Pursuant to Section 82 paragraph 4 of the Austrian Stock Market 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, 25 March 2015
Andreas Brandstetter Chairman of the Management Board
Thomas Münkel Member of the Management Board
Hannes Bogner Member of the Management Board
Kurt Svoboda Member of the Management Board
Wolfgang Kindl Member of the Management Board
We have audited the German version of the accompanying consolidated financial statements of UNIQA Insurance Group AG, Vienna, for the financial year from 1 January to 31 December 2014. These consolidated financial statements comprise the consolidated balance sheet as at 31 December 2014, the separate consolidated income statement, the consolidated statement of comprehensive income, the consolidated cash flow statement and the consolidated statement of changes in equity for the financial year ending 31 December 2014, as well as the notes.
The Company's management is responsible for the Group accounting system and for the preparation and fair presentation 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 UGB (Austrian Commercial Code) and Section 80b VAG (Austrian Insurance Supervisory Act). This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; making accounting estimates that are reasonable in the circumstances.
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with laws and regulations applicable in Austria and Austrian Standards on Auditing, as well as in accordance with International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). Those standards require that we comply with professional guidelines and that we plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Group's preparation and fair presentation of the consolidated financial statements, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our audit opinion.
Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the consolidated financial statements comply with legal requirements and give a true and fair view of the financial position of the Group as at 31 December 2014 and of its financial performance and its cash flows for the financial year from 1 January to 31 December 2014 in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU and the supplementary requirements of Section 80b VAG.
Pursuant to statutory provisions, the management report for the Group is to be audited as to whether it is consistent with the consolidated financial statements and as to whether the other disclosures are not misleading with respect to the Company's position. The auditor's report also has to contain a statement as to whether the management report for the Group is consistent with the consolidated financial statements and whether the disclosures pursuant to Section 243a UGB are appropriate.
In our opinion, the management report for the Group is consistent with the consolidated financial statements. The disclosures pursuant to Section 243a UGB are appropriate.
Vienna, 25 March 2015
PwC Wirtschaftsprüfung GmbH Mag. Liane Hirner Wirtschaftsprüfer
(Austrian Certified Public Accountant)
Disclosure, publication and duplication of the consolidated financial statements together with the auditor's report according to Section 281 paragraph 2 UGB in a form not in accordance with statutory requirements and differing from the version audited by us is not permitted. Reference to our audit may not be made without prior written permission from us.
Pursuant to Section 82 paragraph 4 of the Austrian Stock Exchange Act the Management Board of UNIQA Insurance Group AG confirms,
that, to the best of our knowledge, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group as required by the applicable accounting standards and that the Group management report gives a true and fair view of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties the Group faces;
that, to the best of our knowledge. the separate financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the parent company as required by the applicable accounting standards and that the management report gives a true and fair view of the development and performance of the business and the position of the company, together with a description of the principal risks and uncertainties the company faces.
Vienna, 25 March 2015
Andreas Brandstetter Chairman of the Management Board
Thomas Münkel Member of the Management Board
Hannes Bogner Member of the Management Board
Kurt Svoboda Member of the Management Board
Wolfgang Kindl
Member of the Management Board
Owner and publisher UNIQA Insurance Group AG Commercial registry no.: 92933t Data processing register: 0055506
Katharina Ehrenmüller, Jo Santos / www.neadesign.at Editorial work Claudia Riedmann / www.schreibagentur.at Translation and linguistic consulting ASI GmbH / www.asint.at Photography Thomas Topf / www.thomastopf.com Image editing Bernsteiner Design Department Paper Munken Pure, 240/120/90 g Printed by AV+Astoria Druckzentrum GmbH Production Lindenau Productions
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 report contains statements which refer to the future development of the UNIQA Group. These statements present estimations which were reached upon 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.
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.