Annual Report • Apr 10, 2014
Annual Report
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ANNUAL FINANCIAL REPORT 2013 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 14 | |
| Group Management Report 18 | |
| Consolidated Financial Statements 34 | |
| Notes to the Consolidated Financial Statements 44 | |
| Auditor's Opinion 172 | |
| Statement by Legal Representatives 174 |
Since 2004, UNIQA has undertaken to comply with the Austrian Code of Corporate Governance and publishes its declaration of compliance both in the Group Report and in the Investor Relations section of its website, www.uniqagroup.com. The Austrian Code of Corporate Governance is also publicly available at www.corporate-governance.at.
Implementation and compliance with the individual provisions of the Code is evaluated annually by Univ. Prof. DDr. Waldemar Jud Corporate Governance Forschung CGF GmbH. Working primarily on the basis of a questionnaire, this institution examines whether the company complies with the Austrian Code of Corporate Governance as published by the Austrian Working Group on Corporate Governance. The report 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 declares its continued willingness to comply with the Austrian Code of Corporate Governance in the applicable version. Accordingly, it adheres to the Code's "L rules" (legal requirements) in full as required by law. However, UNIQA deviates from the provisions of the Code in the applicable version with regard to the following "C rules" (comply or explain) and hereby provides the following explanations:
Due to the shareholder structure of the UNIQA Group 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 individual members of the Supervisory Boards. To the extent that such contracts require approval by the Supervisory Board in accordance with section 95 (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. In any case, all transactions are conducted at standard market conditions.
In connection with the capital increase (re-IPO) implemented in October 2013, the core shareholders undertook to elect two members independent of the core shareholders to the Supervisory Board at the 2014 Annual General Meeting.
Chairman
Andreas Brandstetter, CEO
1969*, appointed on 1 January 2002 until 31 December 2016
Responsible for:
Supervisory Board appointments or comparable functions at other domestic and foreign companies not included in the consolidated financial statements:
1959*, appointed on 1 January 1998 until 31 December 2016
Responsible for:
Supervisory Board appointments or comparable functions at other domestic and foreign companies not included in the consolidated financial statements:
1966*, appointed on 1 July 2011 until 31 December 2016
Responsible for:
• UNIQA International
1959*, appointed on 1 January 2013 until 31 December 2016
Responsible for:
Supervisory Board appointments or comparable functions at other domestic and foreign companies not included in the consolidated financial statements:
• Member of the Supervisory Board of Raiffeisen Informatik GmbH, Vienna (since 1 July 2013)
1967*, appointed on 1 July 2011 until 31 December 2016
Responsible for:
The work of the members of the Management Board is regulated by the rules of procedure. The division of the business responsibility as decided by the entire Management Board is then approved by the Supervisory Board. The rules of procedure regulate the disclosure and approval obligations of the Management Board members in respect of each other and the Supervisory Board. A catalogue of measures requiring the authorisation of the Supervisory Board is defined. The Management Board meets regularly (weekly) and 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 Chairmen of the Management Boards of UNIQA Österreich Versicherungen AG and Raiffeisen Insurance AG – Hartwig Löger and Klaus Pekarek – attend the meetings of the Management Board of UNIQA Insurance Group AG in an advisory capacity. The committee thus formed constitutes the Group Executive Board.
The Management Board informs the Supervisory Board at regular intervals and in a timely and comprehensive manner about all relevant questions of business development, including the risk situation and risk management at the Group. In addition, the Chairman of the Supervisory Board maintains regular contact with the Chairman of the Management Board and discusses the strategy, business development and risk management of the company with him.
Chairman
1953*, appointed on 3 July 1995 until the 16th Annual General Meeting (2015)
Supervisory Board appointments at domestic and foreign listed companies:
1943*, appointed on 17 September 1999 until the 16th Annual General Meeting (2015)
Supervisory Board appointments at domestic and foreign listed companies: • 1st Vice Chairman of the Supervisory Board of Erste Group Bank AG, Vienna
1956*, appointed on 21 May 2007 until the 16th Annual General Meeting (2015)
Supervisory Board appointments at domestic and foreign listed companies:
1954*, appointed on 15 May 2006 until the 16th Annual General Meeting (2015)
1954*, appointed from 23 May 2005 until 25 May 2009 and from 31 May 2010 until the 16th Annual General Meeting (2015)
Supervisory Board appointments at domestic and foreign listed companies: • Member of the Supervisory Board of Raiffeisen Bank International AG, Vienna
1944*, appointed on 17 September 1999 until the 16th Annual General Meeting (2015)
1948*, appointed on 25 May 2009 until the 16th Annual General Meeting (2015)
Supervisory Board appointments at domestic and foreign listed companies: • Vice Chairman of the Supervisory Board of Josef Manner & Comp. Aktiengesellschaft, Wien
Peter Gauper 1962*, appointed on 29 May 2012 until the 16th Annual General Meeting (2015)
Eduard Lechner
1956*, appointed on 25 May 2009 until the 16th Annual General Meeting (2015)
Johannes Schuster
1970*, appointed on 29 May 2012 until the 16th Annual General Meeting (2015)
Supervisory Board appointments at domestic and foreign listed companies: • Member of the Supervisory Board of Raiffeisen Bank International AG, Vienna
Johann-Anton Auer 1954*, from 18 February 2008
Doris Böhm 1957*, from 7 April 2005 until 10 April 2013
Peter Gattinger 1976*, from 10 April 2013
Anna Gruber 1959*, from 15 April 2009 until 10 April 2013
Heinrich Kames 1962*, from 10 April 2013
Franz-Michael Koller 1956*, from 17 September 1999
Friedrich Lehner 1952*, from 31 May 2000 until 1 September 2008 and from 15 April 2009
The Supervisory Board of UNIQA Insurance Group AG held five meetings in 2013.
Assigned by the Central Employee Council
Assigned by the Central Employee Council
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 formed a Committee for Board Affairs for handling the relationships between the company and the members of its Management Board relating to employment and salary. The appointed Working Committee of the Supervisory Board is called upon for 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 at the next meeting of the Supervisory Board. As a matter of principle, the Working Committee decides on all issues that are the responsibility of the Supervisory Board; however, this excludes issues of particular importance or that are stipulated by law.
The Audit Committee of the Supervisory Board has the same members as the Working Committee and performs the duties assigned to it by law.
Finally, the Investment Committee advises the Management Board with regard to its investment policy; it has no decision-making authority.
At its four meetings, the Committee for Board Affairs dealt with the legal employment formalities of the members of the Management Board and questions relating to remuneration policies and succession planning.
At its two meetings, the Working Committee primarily addressed company strategy and the Group's capital increase (re-IPO) as well as fundamental considerations and resolutions concerning adjustments to the real estate investment policy. Two written resolutions were passed in connection with the re-IPO, while a further two decisions on steps to be taken were passed by circulation in writing on account of their urgency.
At its three meetings, the Audit Committee discussed all of the year-end closing documents, the Corporate Governance Report and the Management Board's proposal for the appropriation of profit, as well as planning for the audit of the 2013 annual financial statements of the Group companies and the results of preliminary audits. In particular, the Audit Committee was provided with the quarterly reports by Internal Audit on the areas audited and the significant findings based on the audits conducted.
At its three meetings, the Investment Committee discussed the capital investment strategy, questions concerning the capital structure, and the positioning 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 their committee.
For information regarding the activity of the Supervisory Board and its committees, please also refer to the statements in the Report of the Supervisory Board.
Companies with considerable diversity in their management teams are more successful. Different nationalities and cultures and a mixture of women and men have a positive impact on cooperation at a management level.
UNIQA employs people from more than 30 nations at its headquarters in Vienna. UNIQA has developed into an international company that understands the needs of its employees and customers in the different countries it serves.
In 2013, the proportion of women on the Management Board and in senior executive positions throughout the Group improved slightly by one percentage point to 18 per cent. The figure for the international area remained at 25 per cent. Despite this moderate improvement, UNIQA needs and intends to improve further.
The ability to combine a career with family life, and the topic of childcare in particular, is a key factor in achieving this. For parents who work – and mothers in particular – good childcare is a basic requirement for a successful professional life. However, finding the right solution is not always easy. It requires great flexibility and is extremely time-consuming.
Accordingly, UNIQA works together with an external partner (KibisCare), which provides a comprehensive childcare service that makes parents' lives easier and supports them in mastering the balancing act between work and family on a day-to-day basis.
UNIQA is also committed to the principles of flexible working hours and teleworking. In 2013, 12 per cent of employees in Austria took the option of working part-time, while 8 per cent used teleworking.
In the area of management development, UNIQA is of the opinion that female-only development measures are considerably less promising than joint development measures for women and men alike. This makes cooperation more natural and easier to implement in day-to-day work.
When it comes to recruitment, UNIQA gives priority to female candidates where the candidates have the same qualifications.
All elected members of the Supervisory Board have declared their independence under Rule 53 of the Austrian Code of Corporate Governance.
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. UNIQA has established the following points as additional criteria concerning the independence of a Supervisory Board member:
• The Supervisory Board member should not be a close family relative (direct descendent, spouse, life companion, parent, uncle, aunt, sibling, niece, nephew) of a Management Board member or of persons who are in one of the positions described in the above points.
Members of the Management Board receive their remuneration exclusively from UNIQA Insurance Group AG, the Group holding company.
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| Fixed remuneration 1) | 2,458 | 2,145 |
| Variable remuneration | 2,465 | 3,149 |
| Current remuneration | 4,923 | 5,294 |
| Entitlements to termination payments | 0 | 1,855 |
| Total | 4,923 | 7,149 |
| Of which proportionally oncharged to the operative subsidiaries: | 4,176 | 6,791 |
| Former members of the Management Board and their surviving dependants received: | 2,699 | 2,644 |
| Provisions for pension commitments to these persons were recognised as follows as at 31 December: | 24,408 | 23,818 |
1) The fixed salary components contain remuneration in kind in the amount of € 73,088 (2012: € 49,909).
| Name of Management Board Members Figures in € thousand |
Fixed | Variable remuneration remuneration1) |
Total regular remuneration |
Entitlements to payments |
termination Total for the Total for the year 2013 |
year 2012 |
|---|---|---|---|---|---|---|
| Andreas Brandstetter | 607 | 557 | 1,164 | 0 | 1,164 | 986 |
| Hannes Bogner | 457 | 481 | 938 | 0 | 938 | 875 |
| Wolfgang Kindl | 457 | 443 | 900 | 0 | 900 | 852 |
| Thomas Münkel (since 1.1.2013) | 479 | 492 | 972 | 0 | 972 | 0 |
| Kurt Svoboda | 456 | 492 | 949 | 0 | 949 | 852 |
| Hartwig Löger (until 31.12. 2012) | 0 | 0 | 0 | 0 | 0 | 852 |
| Gottfried Wanitschek (until 31.12.2012) | 0 | 0 | 0 | 0 | 0 | 2,731 |
| Total 2013 | 2,458 | 2,465 | 4,923 | 0 | 4,923 | 0 |
| Total 2012 | 2,145 | 3,149 | 5,294 | 1,855 | 0 | 7,149 |
1) Including a provision for the long-term incentive in the amount of € 226,078.
In addition to the salaries listed above, the following pension fund contributions were paid to the members of the Management Board for existing pension commitments in the financial year. The equalisation payments arise for members who step down before the age of 65 based on the general funding of pension claims until the age of 65.
| Pension fund contributions Figures in € thousand |
Regular contributions |
Equalisation 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 2013 | 681 | 0 | 681 |
| Total 2012 | 686 | 1,254 | 1,940 |
The remuneration paid to the members of the Supervisory Board for their work in the 2012 financial year was € 380,000. A provision of € 380,000 has been recognised for the remuneration of their work in the 2013 financial year. In 2013, a total of € 31,320 (2012: € 35,520) was paid out in attendance fees and cash expenditures.
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| For the current financial year (provision) | 380 | 380 |
| Attendance fees | 31 | 36 |
| Total | 411 | 416 |
The total remuneration paid to the Supervisory Board (including attendance fees) is broken down among the individual members as follows:
| Name of Supervisory Board member Figures in € thousand |
Remuneration 2013 |
Remuneration 2012 |
|---|---|---|
| Walter Rothensteiner | 71 | 61 |
| Georg Winckler | 58 | 58 |
| Erwin Hameseder | 57 | 42 |
| Christian Kuhn | 51 | 51 |
| Günther Reibersdorfer | 50 | 48 |
| Ewald Wetscherek | 44 | 44 |
| Ernst Burger | 16 | 17 |
| Peter Gauper | 16 | 9 |
| Eduard Lechner | 23 | 24 |
| Johannes Schuster | 16 | 9 |
Former members of the Supervisory Board did not receive any remuneration.
The information in accordance with section 239 (1) of the Austrian Commercial Code in connection with section 80b of the Austrian Insurance Supervisory Act, which must be included in the notes as mandatory information for IFRS financial statements to release the company from the requirement to prepare financial statements in accordance with the Austrian Commercial Code, is defined for the single-entity financial statements according to the provisions of the Austrian Commercial Code with expanded scope. In addition to the executive functions (Management Board) of UNIQA Insurance Group AG, the single-entity financial statements also include the remuneration of the Management Boards of the subsidiaries insofar as there is a legally binding basis under contract law 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 if they meet certain defined prerequisites for entitlement. This bonus is granted as a one-time payment based on the earnings situation.
Starting from the 2013 financial year, the system used to calculate the variable portions of the remuneration of the Management Board has been changed in conjunction with the extension of the Management Board mandates. By means of a short-term incentive (STI), a one-time payment is made if certain defined prerequisites for entitlement are met based on the earnings situation and agreed individual targets for each financial year. A long-term incentive (LTI) is also agreed as share-based remuneration with cash settlement. This provides for one-time payments after a term of four years depending on the performance of UNIQA's shares, ROE and total shareholder return based on annual virtual investment amounts in UNIQA shares. Upper limits are agreed. Consideration is given to the linking of the LTI to an annual obligation on the part of the Management Board members to invest in UNIQA shares subject to a retention period of four years each. The system complies with Rule 27 of the Austrian Code of Corporate Governance.
Retirement pensions, a pension for occupational disability as well as a widow's and orphan's pension have been established. The corresponding pension entitlements are managed by Valida Pension AG. As a matter of principle, the retirement pension is due when the beneficiary meets the requirements for receiving an old-age pension in accordance with the Austrian General Social Security Act. In the event of earlier retirement, the pension claim is reduced. For the occupational disability pension and the pension for surviving dependants, basic amounts are provided as a minimum pension.
The pension fund at Valida Pension AG is financed by UNIQA through ongoing contributions for the individual members of the Management Board. Equalisation payments to Valida Pension AG are due if members of the Management Board step down before the age of 65 (imputed contribution payment duration to prevent excess financing).
Severance payments have been agreed based partially on the provisions of the Austrian Salaried Employee Act. The agreed termination packages on the occasion of premature termination of the work of a Management Board member comply with the criteria set out in Rule 27a of the Austrian Code of Corporate Governance. The benefits are fundamentally retained in the event of termination of membership of the Management Board; however, a reduction rule applies.
The remuneration paid to the Supervisory Board is approved at the Annual General Meeting as a total amount for the work done in the past 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.
Directors' & officers' (D&O) insurance and, in connection with the implementation of the re-IPO in 2013, public offering of securities insurance (POSI) have been concluded for the members of the Management Board, the Supervisory Board and senior executives. The costs are paid by UNIQA.
A comprehensive risk report (Rule 67) is included in the notes to the consolidated financial statements beginning on page 70. The notifications concerning directors' dealings in the year under review (Rule 73) can be found in the Investor Relations section at www.uniqagroup.com.
Vienna, 25 March 2014
Andreas Brandstetter Chairman of the Management Board
Hannes Bogner Member of the
Management Board
Wolfgang Kindl Member of the Management Board
Thomas Münkel Member of the Management Board
Kurt Svoboda
Member of the Management Board
For UNIQA, 2013 was again dominated by the UNIQA 2.0 long-term strategic programme. One particularly important event was the successful capital increase (re-IPO) in October, which generated proceeds of € 757 million and significantly increased UNIQA's free float.
Under the UNIQA 2.0 strategic programme, UNIQA has set itself the objective of expanding its customer base to 15 million by 2020 and increasing earnings before taxes by up to € 400 million compared with 2010. The company is concentrating on its core activities and targeting profitable business in Austria and profitable growth in Central and Eastern Europe. UNIQA is well on schedule to fulfil these ambitious targets.
During 2013, the Supervisory Board was regularly informed by the Management Board of business developments and the situation at UNIQA Insurance AG, which has traded under this new name since July 2013, and the Group as a whole. It also supervised the Management Board's management of the business and fulfilled all the tasks assigned to the Supervisory Board by law and the Articles of Association. At the Supervisory Board meetings, the Management Board presented detailed quarterly reports and provided additional oral and written reports to the Supervisory Board. 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 information events on relevant topics. In 2013, two special seminars were held on topics relating to the new regulations of Solvency II.
The meetings focused on the Group's earnings situation and its further strategic development. The Supervisory Board held five meetings in 2013.
At the meeting on 21 February, the Supervisory Board primarily discussed the Group's preliminary figures for the 2012 financial year and the first developments in the 2013 financial year.
The Supervisory Board meeting on 10 April focused on the annual financial statements and consolidated financial statements for the year ended 31 December 2012 and the Management Board's report on Group developments during the first quarter of 2013. It also fundamentally approved the issue of a hybrid capital bond to settle the supplementary capital issues by UNIQA Insurance Group AG and UNIQA Österreich Versicherungen AG with a total nominal volume of € 200 million that were scheduled for repayment in 2013.
The Supervisory Board also discussed the agenda for the 14th Annual General Meeting on 27 May 2013.
At its meeting on 16 May, the Supervisory Board discussed the Group's development in the second quarter of 2013 to date and approved the restructuring of UNIQA International AG's subsidiaries in Italy and Switzerland. The meeting was also informed about the imminent appointment of a Management Board member at UNIQA Österreich Versicherungen AG.
On 16 September, the Supervisory Board discussed the Group's earnings situation in the first half of 2013, developments in the third quarter of 2013 to date and the forecast for the 2013 financial year. It also discussed the planned capital increase (re-IPO) of UNIQA Insurance Group AG in detail and authorised the Working Committee to pass all necessary resolutions in connection with this matter. The Supervisory Board was informed about M&A activities at UNIQA International AG. The Working Committee was authorised to take any decisions on measures in connection with this matter.
In addition to reporting on the Group's results for the first three quarters of 2013 and planning for the 2014 financial year, the Supervisory Board evaluated its own activities in accordance with the Austrian Code of Corporate Governance at its meeting on 13 November. The Supervisory Board also approved the issue of intragroup hybrid capital by UNIQA Österreich Versicherungen AG and Raiffeisen Versicherung AG and the concentration of the Group companies' reinsurance operations at UNIQA Re AG, Zurich. The strengthening of UNIQA Re AG's equity base was also approved in connection with this matter.
To facilitate the work of the Supervisory Board and to improve its efficiency, committees have been set up in addition to the mandatory financial Audit Committee.
The Working Committee held two meetings in the past financial year. The re-IPO was resolved on 23 September on the basis of the authorisation granted by the full Supervisory Board. At its meeting on 12 December, the Working Committee addressed fundamental considerations and resolutions concerning adjustments to the real estate investment policy.
Two implementation resolutions for the re-IPO were passed by the Working Committee by way of circulation in writing on 9 and 17 October 2013. In October 2013, the submission of a binding offer for the acquisition of the subsidiaries of Baloise Holding AG in Croatia and Serbia was approved by circulation in writing. In July 2013, the Working Committee also approved the detailed conditions of the hybrid capital issue with a nominal volume of € 350 million.
At its four meetings, the Committee for Board Affairs dealt with the legal employment formalities of the members of the Management Board and with questions regarding remuneration policies and succession planning.
At its three meetings, the Investment Committee discussed the capital investment strategy, questions concerning the capital structure, and the positioning of risk and asset liability management.
The Audit Committee met three times in the 2013 financial year in the presence of the auditor of the (consolidated) financial statements. The meeting on 10 April discussed all of the year-end closing documents and the Management Board's proposal for the appropriation of profit. The meeting on 16 May discussed planning for the audit of the financial statements of the Group companies of UNIQA Insurance Group AG for the 2013 financial year.
The auditor informed the meeting on 13 November about the results of its preliminary audits to date. A report by the auditor on its assessment of the functionality of the risk management system was acknowledged. In particular, the Audit Committee was provided with the quarterly reports by Internal Audit on the areas audited and significant findings based on the audits conducted.
The various chairmen of the committees informed the members of the Supervisory Board about the meetings and the work of their committee.
The single-entity financial statements prepared by the Management Board and the management report of UNIQA Insurance Group AG and the consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and the Group management report for 2013 were audited by PwC Wirtschaftsprüfung GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft and issued with an unqualified audit opinion.
The Supervisory Board acknowledged and approved the results of the audit.
The consistency check of the Corporate Governance Report in accordance with section 243b of the Austrian Commercial Code, as well as an evaluation of UNIQA's compliance with the provisions of the Austrian Code of Corporate Governance in the 2013 financial year, was performed by Univ. Prof. DDr. Waldemar Jud Corporate Governance Forschung CGF GmbH. The results indicated that UNIQA complied with the provisions of the Austrian Code of Corporate Governance in the 2013 financial year to the extent that these were included in the declaration of compliance.
The Supervisory Board approved the consolidated financial statements and the single-entity financial statements of UNIQA Insurance Group AG and endorsed the Group management report and the management report. The 2013 annual financial statements are thereby adopted in accordance with section 96 (4) of the Austrian Stock Corporation Act.
The Supervisory Board examined and approved the proposal for the appropriation of profit submitted by the Management Board. Accordingly, a dividend distribution of € 0.35 per share will be proposed to the Annual General Meeting on 26 May 2014.
The Supervisory Board would like to thank all employees of the UNIQA Group for their immense personal commitment during the past financial year.
Vienna, April 2014 On behalf of the Supervisory Board
Walter Rothensteiner, Chairman of the Supervisory Board
Financial Statements
Although many of the established economies failed to fully realise their potential in 2013, there were growing signs of a slight improvement in the economy as a whole. Following two difficult years dominated by the crisis, the euro zone emerged from recession during the past year. However, despite a marginal upturn in gross domestic product (GDP) in three successive quarters, the euro zone was unable to record GDP growth for 2013 as a whole (minus 0.4 per cent). Alongside Germany, which remains the European growth driver, the Austrian economy closed the year with moderate GDP growth of 0.4 per cent.
Although the upturn in the USA is fundamentally stronger, it was curbed by the dramatic budget consolidation last year, with the result that GDP growth was down slightly on 2012 at 1.9 per cent. A reduction in the budget deficit meant that public finances were largely brought under control. Congress also presented a budget plan for 2014 and 2015 that reduced tax-related uncertainty among US households and companies, as well as international investors.
The high unemployment rate in Europe reflects the low utilisation of economic capacity. Signs of a certain stabilisation on the employment markets only began to emerge in the second half of 2013. In the euro zone, the unemployment rate in December stagnated at 12 per cent. The differences between the individual member states remained pronounced. While Greece and Spain saw the highest unemployment rates in the euro zone –26.4 per cent and 26.6 per cent respectively – the situation on the Austrian employment market eased somewhat, with an unemployment rate of 4.9 per cent.
Economic development in the Central and Eastern European countries in which UNIQA is active was relatively encouraging on the whole. The economic recovery in the euro zone had a positive impact on the markets of Central and Eastern Europe thanks to their high export ratio. In Poland and Hungary, exports started to improve in the third quarter of 2013, with growth accelerating to 5.5 per cent and 5.9 per cent respectively, while Slovakia and the Czech Republic are likely to benefit in the near future. Romania and Bulgaria also enjoyed a strong export cycle, with growth of 19.4 per cent and 8.5 per cent respectively.
An upturn in domestic demand means that Poland is also on a relatively balanced growth path, recording GDP growth of 1.4 per cent in 2013. Hungary emerged from a severe recession in the first half of 2013, with economic growth rising to 1.1 per cent at year-end. Slovakia recorded GDP growth of 0.9 per cent. The Czech Republic also emerged from recession in the fourth quarter, but was unable to achieve a turnaround in GDP development on a twelve-month basis (minus 1.3 per cent).
The Romanian economy delivered one of the positive surprises in the region, with general economic activity increasing by 3.3 per cent. By contrast, Ukraine remained in recession in the past year, not least as a result of the instability of the macroeconomic and political situation in the country. Towards the end of the year, there were signs that the Ukrainian government was becoming increasingly dependent on official financial aid. As previously, the Russian economy was driven to a large extent by private consumption in 2013. However, general economic activity slowed slightly, with GDP rising by just 1.3 per cent.
Southeastern Europe also saw an upturn in 2013. Bulgaria pulled free from economic stagnation in the second half of the year, recording moderate full-year GDP growth of 0.6 per cent. In both Bulgaria and Serbia, the export industry is helping to drive economic development. Economic growth in Serbia accelerated to 2.5 per cent. The Croatian economy lagged behind its neighbours, contracting by 1.0 per cent, while the southern Balkan nations (Albania, Kosovo, Macedonia and Montenegro) enjoyed a slight economic upturn as against the previous year.
2013 was characterised by further quantitative easing on the part of the main central banks. The European Central Bank (ECB) reduced its headline interest rate to 0.25 per cent in two steps of 25 basis points and announced that the rate would remain at close to zero for some time to come. Inflation in the euro zone declined during the course of the year, falling to a historical low of just 0.8 per cent in February 2014. In January and February 2014, the US Fed began to gradually reduce its monthly bond purchases from USD 85 billion to USD 65 billion. The headline interest rate in the USA is expected to remain extremely low until 2015.
Long-term interest rates retreated slightly from their historical lows during the course of the year. The effective yield on ten-year German government bonds rose to 1.9 per cent at yearend, while the yield for ten-year US Treasury bonds amounted to 3 per cent.
Most of the central banks in Central and Eastern Europe initiated or pressed ahead with cycles of interest rate cuts in 2013. Inflation declined sharply throughout almost the entire region on the back of falling food and energy prices, thereby supporting real household income. The lower interest rates also provided an incentive for increased private consumption and capital expenditure. Unlike the industrialised nations, however, many countries in Central and Eastern Europe are also maintaining positive real interest rates with a view to boosting capital formation in the longer term.
The upturn in Central and Eastern Europe is slowly gaining momentum once more. While GDP in the euro zone contracted by 0.4 per cent in 2013, the CEE region generated growth of around 1.1 per cent. Although this does not yet represent a return to the high growth rates seen prior to the 2008 financial crisis, which were stimulated by international investment to a large extent, many economists are of the opinion that the region now has a more balanced growth model. Public finances in most of the countries are now enjoying healthy development. Romania and Hungary were among the first countries to leave the EU's excessive deficit procedure in 2012. With the exception of Poland and Croatia, all of the EU member states in Central and Eastern Europe met the Maastricht deficit criteria. Indeed, with a very small number of exceptions, government debt ratios are significantly below the equivalent figures for Western Europe.
At present, there is only a limited risk that the economy in Central and Eastern Europe will overheat due to the excessive expansion of credit. Poland, the Czech Republic and Slovakia have stable banking sectors, and most countries are gradually reducing the burdens dating back to the financial crisis. There has also been a correction in terms of external imbalance: the current account deficits that accumulated prior to 2008/09, some of which were extremely far-reaching, have been eliminated or turned into surpluses in almost all CEE nations. Accordingly, the likelihood of corresponding adjustment processes and crises in the coming years has fallen, with developments in Ukraine representing the sole exception.
Having fallen for two years in succession, the premium volume in the Austrian insurance market achieved a turnaround in 2013. Total premiums increased by 2.0 per cent to €16.6 billion. Similar growth is forecast for 2014, with the market again set to grow by around 1.9 per cent.
The fact that the Austrian insurance market is not enjoying even stronger growth is due to the sustained downturn in life insurance premiums, which fell by a further 0.3 per cent in 2013. This development was driven in particular by lower income from single premiums, which contracted by 1.0 per cent, while recurring premiums stagnated. The continued low interest rate environment means that forecasts for life insurance remain muted. One factor that could have a positive impact is the restructuring of subsidised-premium retirement provision. Due to the positive development of the single premium business, the growth forecast for life insurance for 2014 was recently upwardly revised to 1.5 per cent.
By contrast, property and casualty insurance saw further substantial premium growth of 3.4 per cent in 2013, thereby exceeding the strong performance recorded in the previous year. There was stagnation in the motor vehicle liability insurance segment, with portfolio growth accompanied by a reduction in average premiums. On the other hand, comprehensive motor vehicle insurance made a strong contribution to premium growth, while legal expenses insurance and technical and transport insurance also enjoyed dynamic development. Meanwhile, total premiums in the health insurance segment again rose substantially, with the growth rate increasing as against the previous year to 3.8 per cent.
With economic growth remaining extremely weak on the whole, the level of insurance penetration is set to decline further. The figure for 2014 is forecast at around 5.1 per cent (compared with 6 per cent in 2009).
The nations of Central and Eastern Europe are expected to benefit from the fact that the overall economic situation in Europe, and particularly in the euro zone, is slowly easing and the financial crisis looks to have been largely overcome. Generally speaking, most of the countries in the region are enjoying good growth rates in excess of those recorded in Western Europe, driven by extremely healthy export performance that has picked up again now that many trading partners in the euro zone have regained their financial strength. Although not all of the countries in the region emerged from recession in the year under review, significantly higher GDP growth rates are forecast for the entire CEE region in 2014.
The CEE insurance market is expected to see similar development. In 2013, premium growth in the region was still muted, while the life insurance sector in particular saw falling premiums throughout the region as a whole on the back of a substantial downturn in single premiums in Poland. The performance of the non-life segment was positive overall, but growth rates also failed to meet expectations in most cases. There are two reasons for this: the macroeconomic situation remains sluggish, leading to restrained spending on insurance, while price competition in many countries is extremely pronounced – particularly in the motor vehicle and property sectors – resulting in a lower level of premiums earned.
The improved economic situation is not expected to have an impact on private consumption and capital expenditure in particular prior to 2014. The insurance market will benefit from this development, with the premium volume increasing to a greater extent as a result. Non-life insurance is expected to see higher growth rates in 2014 and 2015 on the back of the stronger economic performance in the rest of Europe, as the nations of Central and Eastern Europe are extremely export-oriented and hence are reliant on the development of their trading partners in the West of the continent. However, there are signs that price competition will remain intensive, which could prevent strong premium growth. Life insurance in the CEE region will also return to positive development in 2014.
In spite of its muted development at present, CEE remains a growth region with significant potential thanks to its levels of insurance penetration and density, both of which still offer considerable room for improvement, and the fact that the regulatory situation is improving. As such, UNIQA is confident that, in the longer term, the CEE region will see increased growth rates that are well in excess of those achievable in the saturated insurance markets.
With a premium volume written (including the savings portion of unit- and index-linked life insurance) of €5,885.5 million, the UNIQA Group is one of the leading insurance groups in Central and Eastern Europe. The savings portion of unit- and index-linked life insurance in the amount of €727.9 million is offset against the changes in actuarial provisions in accordance with FAS 97 (U.S. GAAP). Adjusted for the savings portion of unit- and index-linked life insurance, the premium volume written amounted to €5,157.6 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 sectors.
The listed holding company, UNIQA Insurance Group AG, manages the Group and handles its indirect insurance business. It also performs various service functions for the Austrian and international insurance companies with a view to taking best advantage of synergy effects and consistently implementing the Group's long-term corporate strategy.
UNIQA International AG manages the international activities of the Group. This company is also responsible for the ongoing monitoring and analysis of the international target markets and for acquisitions and post-merger integration.
After the UNIQA Group established a streamlined, capital market-friendly Group structure with no significant minority interests in 2012, the Annual General Meeting in May 2013 additionally resolved to change the name of UNIQA Versicherungen AG to UNIQA Insurance Group AG in order to reflect its role as the holding company of a listed international insurance group.
The renaming of UNIQA International Versicherungs-Holding AG to UNIQA International AG was also resolved and implemented.
In July 2013, UNIQA Insurance Group AG placed a supplementary capital bond with a volume of €350 million with institutional investors in Europe. The bond has a term of 30 years and can be called in ten years at the earliest. The coupon is 6.875 per cent per year. With this measure, UNIQA strengthened and optimised its capital base and capital structure in preparation for Solvency II.
In October 2013, the UNIQA Group successfully implemented the capital increase (re-IPO) planned as part of the strategic programme UNIQA 2.0, generating gross proceeds of €757 million. A total of 94,752,100 new shares were placed with Austrian and international investors at a price of €8.00 per share. The share capital of UNIQA Insurance Group AG increased to €309,000,000 as a result, leading to a considerable expansion in UNIQA's free float to 35.4 per cent.
The proceeds from the issue will be used to strengthen UNIQA Group's capital in order to facilitate the further implementation of UNIQA 2.0 while also providing strategic flexibility for future growth.
After the capital structure was strengthened, the rating agency Standard & Poor's upgraded the rating for UNIQA Insurance Group AG to "A-" (from "BBB+"). UNIQA Österreich Versicherungen AG and the Group reinsurance company UNIQA Re AG, Switzerland, were upgraded to "A". At the same time, the rating for the supplementary capital bond was raised to "BBB". Standard & Poor's considers the outlook for all of the companies to be "stable".
In October 2013, the UNIQA Group signed an agreement to acquire the Baloise Group's insurance companies in Croatia and Serbia. This will result in a significant consolidation of UNIQA Group's market position in the entire Southeastern European region, and particularly in Croatia. The purchase price was €75 million. The acquisition was completed in the first quarter of 2014.
UNIQA Insurance Group AG's consolidated financial statements for 2013 include 53 Austrian companies (including UNIQA Insurance Group AG) and 69 international companies. A total of 25 affiliated companies whose influence on the presentation of a true and fair view of the net assets, financial position and results of operation was immaterial were not included in consolidation. In addition, eight Austrian companies were recognised at equity as associates. Eight associates were of minor importance; the equity interests in these companies are recognised at fair value.
Details on the consolidated and associated companies can be found in the corresponding overview in the notes to the consolidated financial statements (from page 89). The accounting policies are also described in the notes to the consolidated financial statements (from page 70).
UNIQA's comprehensive risk report can be found in the notes to the 2013 consolidated financial statements (from page 91).
UNIQA provides life and health insurance and is active in almost all areas of property and casualty insurance. UNIQA serves around 9.3 million customers and has over 18.6 million insurance policies with a premium volume written (including the savings portion of unit- and index-linked life insurance) of €5.9 billion (2012: €5.5 billion) and investments of €27.4 billion (2012: €26.3 billion). UNIQA is the second-largest insurance group in Austria and has a strong network in Central and Eastern Europe with a presence in 15 countries.
In 2013, UNIQA's total premium volume, including the savings portion of unit- and index-linked life insurance in the amount of €727.9 million (2012: €679.0 million), increased significantly by 6.2 per cent to €5,885.5 million (2012: €5,543.1 million). The total consolidated premium volume written rose by 6.0 per cent to €5,157.6 million (2012: €4,864.2 million).
There was extremely satisfactory development in the area of insurance policies with recurring premiums, which grew by 3.9 per cent to €5,202.8 million (2012: €5,009.7 million). Single premiums enjoyed even stronger performance, with the premium volume increasing by 28.0 per cent to €682.8 million (2012: €533.5 million) due to strong growth in Italy.
Group premiums earned, including the savings portion of unit- and index-linked life insurance (after reinsurance) in the amount of €702.3 million (2012: €649.9 million), rose by 6.9 per cent to €5,638.2 million (2012: €5,273.8 million). Retained premiums earned (in accordance with IFRS) increased by 6.7 per cent to €4,935.9 million (2012: €4,623.9 million).
In the 2013 financial year, 44.0 per cent (2012: 45.9 per cent) of the premium volume written was attributable to property and casualty insurance, 15.9 per cent (2012: 16.4 per cent) to health insurance and 40.1 per cent (2012: 37.7 per cent) to life insurance.
Insurance benefits before reinsurance (see note 36 of the notes to the consolidated financial statements) increased by 5.2 per cent to €4,073.9 million in the 2013 financial year (2012: €3,873.8 million) Consolidated retained insurance benefits also rose by 5.2 per cent to €3,955.3 million in the past financial year (2012: €3,758.5 million).
Total consolidated operating expenses (see note 37 of the notes to the consolidated financial statements) less reinsurance commission received and profit shares from reinsurance business ceded (see note 33 of the notes to the consolidated financial statements) increased slightly by 2.9 per cent to €1,357.6 million in the 2013 financial year (2012: €1,319.3 million). Acquisition costs less reinsurance commission received fell by 0.3 per cent to €917.6 million (2012: €920.1 million). Other operating expenses increased by 10.2 per cent to €439.9 million (2012: €399.2 million) due to performance-based employee participation and provisions in connection with strategic projects.
UNIQA's cost ratio after reinsurance, i.e. the ratio of total operating expenses less reinsurance commission received and profit shares from reinsurance business ceded to Group premiums earned including the savings portion of unit- and index-linked life insurance, decreased to 24.1 per cent in the past year as a result of the developments mentioned above (2012: 25.0 per cent). The cost ratio before reinsurance was 23.1 per cent (2012: 23.9 per cent).
Total investments including land and buildings used by the Group, real estate held as investments, shares in associates and investments of the unit- and index-linked life insurance and current cash and cash equivalents increased by 4.0 per cent to €27,383.6 million in the 2013 financial year (31 December 2012: €26,326.0 million).
Net investment income fell slightly by 1.4 per cent to €780.0 million (2012: €791.4 million) due to the sustained low interest rate environment. A detailed presentation of investment income can be found in the notes to the consolidated financial statements (note 34).
In 2013, UNIQA recorded an extremely satisfactory profit from ordinary activities of €305.6 million, up 49.7 per cent on the previous year (2012: €204.2 million); this was due to the encouraging developments in all operational segments. The net profit for the period amounted to €286.8 million (2012: €166.5 million). This figure includes the result from discontinued operations in the amount of €50.0 million (2012: €9.9 million) from the reversal of a provision reported under other provisions in connection with the sale of the Mannheimer Group. As a result, consolidated profit increased significantly by 123.0 per cent to €283.4 million (2012: €127.1 million), while earnings per share rose to €1.20 (2012: €0.75). In 2013, the return on equity (ROE) after taxes and minority interests increased to 11.9 per cent (2012: 8.8 per cent).
The Management Board will therefore propose the payment of a dividend of €0.35 per share to the Supervisory Board and the Annual General Meeting.
In the past financial year, total Group equity increased by 37.4 per cent or €760.0 million to €2,789,9 million as a result of the re-IPO (31 December 2012: €2,030.0 million). This figure includes minority interests of €22.2 million (31 December 2012: €20.7 million). Accordingly, the solvency ratio (Solvency I) increased to 287.1 per cent (31 December 2012: 216.0 per cent). Total Group assets increased by 3.3 per cent in the year under review to total €31,068.6 million as of 31 December 2013 (31 December 2012: €30,054.6 million).
In 2013, net cash from operating activities amounted to €633.6 million (2012: €1,133.0 million). Net cash used in investing activities amounted to €1,786.9 million (2012: €1,185.5 million). The increase in the share capital meant that net cash from financing activities rose to €813.0 million (2012: €335.0 million).
The total change in cash and cash equivalents was minus €340.3 million (2012: €282.5 million). At the end of 2013, the Group had cash and cash equivalents in the amount of €617.0 million (2012: €960.1 million).
In 2013, the average number of employees at UNIQA fell to 14,277 as a result of the sale of the Austria Hotels International Group (2012: 14,795). Of this figure, 5,893 (2012: 6,308) were employed in sales positions. The number of employees in administrative roles decreased to 8,384 (2012: 8,487).
In the 2013 financial year, the Group had 2,899 employees (2012: 2,963) in the Central European (CE) region – consisting of Poland, Slovakia, the Czech Republic and Hungary –2,028 employees (2012: 2,279) in the Southeastern European (SEE) region – consisting of Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Macedonia, Montenegro and Serbia – and 2,489 employees (2012: 2,509) in the Eastern European (EE) region, i.e. Romania and Ukraine. There were 94 employees (2012: 61) in Russia (RU). The average number of employees in the Western European markets increased slightly to 348 (2012: 334). A total of 6,419 people were employed in Austria (2012: 6,649). Including the employees of the general agencies working exclusively for UNIQA, the total number people working for the Group amounted to 21,928.
In 2013, 51 per cent of the employees working in administrative positions at UNIQA Insurance Group AG in Austria were female. In sales, the male-female ratio was 80:20. 19 per cent (2012: 21 per cent) of employees worked on a part-time basis. The average age of the workforce remained at 42 years in the year under review (2012: 42 years). All in all, 14.4 per cent of the employees participated in UNIQA's bonus system in 2013 (2012: 14.1 per cent), a variable remuneration system that is linked both to the success of the company and to personal performance. UNIQA also offers young people in training the opportunity to get to know foreign cultures and make international contacts. 39 apprentices are currently being trained, and a total of 10 new apprentices were accepted in 2013.
In 2013, UNIQA Austria increased the premium volume written, including the savings portion of unit- and index-linked life insurance, by 3.6 per cent to €2,806.7 million (2012: €2,708.2 million). Recurring premiums increased by 4.0 per cent to €2,774.6 million (2012: €2,668.3 million). However, single premiums declined slightly to €32.1 million (2012: €39.9 million).
Including the savings portion of unit- and index-linked life insurance, premiums earned by UNIQA Austria amounted to €2,196.2 million (2012: €2,087.4 million). Retained premiums earned (in accordance with IFRS) increased by 4.7 per cent to €1,999.2 million in 2013 (2012: €1,908.6 million).
The premium volume written in property and casualty insurance rose by 3.5 per cent to €1,326.2 million (2012: €1,280.9 million), while the corresponding figure for health insurance increased by 3.7 per cent to €866.2 million (2012: €835.4 million). The premium volume written in life insurance (including the savings portion of unit- and index-linked life insurance) grew by 3.8 per cent to €614.2 million (2012: €591.9 million).
Retained premiums earned (in accordance with IFRS) increased by 7.6 per cent to €747.6 million in property and casualty insurance (2012: €694.6 million), by 3.5 per cent to €865.2 million in health insurance (2012: €835.8 million) and by 2.2 per cent to €386.4 million in life insurance (2012: €378.2 million). Including the savings portion of unit- and index-linked life insurance, premiums earned in life insurance amounted to €583.5 million (2012: €557.0 million).
Retained insurance benefits at UNIQA Austria increased by 3.8 per cent to €1,680.5 million in 2013 (2012: €1,618.9 million). Retained insurance benefits rose by 3.4 per cent to €493.5 million in property and casualty insurance (2012: €477.3 million), by 2.4 per cent to €736.2 million in health insurance (2012: €719.1 million) and by 6.7 per cent to €450.7 million in life insurance (2012: €422.4 million). This meant that the loss ratio in property and casualty insurance amounted to 66.0 per cent in 2013 (2012: 68.7 per cent).
Operating expenses less reinsurance commission received and profit shares from reinsurance business in the amount of €179.4 million (2012: €186.0 million) increased by 6.4 per cent to €418.1 million in the 2013 financial year (2012: €393.0 million). Operating expenses rose by 10.6 per cent to €190.9 million in property and casualty insurance (2012: €172.5 million) and by 9.0 per cent to €122.6 million in health insurance (2012: €112.5 million), whereas the figure for life insurance declined by 3.1 per cent to €104.6 million (2012: €108.0 million).
UNIQA Austria's cost ratio after reinsurance, i.e. the ratio of total operating expenses less reinsurance commission received and profit shares from reinsurance business ceded to premiums earned, including the savings portion of unit- and index-linked life insurance, remained essentially unchanged at 19.0 per cent in the year under review (2012: 18.8 per cent).
Net investment income in the UNIQA Austria segment increased by 10.8 per cent to €379.1 million in 2013 (2012: €342.2 million).
UNIQA Austria's profit from ordinary activities increased by 23.0 per cent to €231.0 million in the year under review due to the improved investment result (2012: €187.8 million). The profit from ordinary activities increased by 22.2 per cent to €82.7 million in property and casualty insurance (2012: €67.7 million), whereas the figure for health insurance fell slightly by 0.7 per cent to €94.6 million (2012: €95.3 million). UNIQA Austria more than doubled its profit from ordinary activities in the life insurance segment, which rose by 116.6 per cent to €53.7 million (2012: €24.8 million).
In 2013, Raiffeisen Insurance increased the premium volume written, including the savings portion of unit- and index-linked life insurance, by 7.2 per cent to €878.5 million (2012: €819.4 million). Recurring premiums rose by 7.6 per cent to €825.3 million (2012: €767.1 million), while single premiums increased by 1.7 per cent to €53.1 million (2012: €52.3 million).
Including the savings portion of unit- and index-linked life insurance, premiums earned in the Raiffeisen Insurance segment amounted to €767.7 million (2012: €705.2 million). Retained premiums earned (in accordance with IFRS) increased by 8.4 per cent to €570.6 million in 2013 (2012: €526.5 million).
The premiums written in property and casualty insurance rose by 8.6 per cent to €145.7 million (2012: €134.1 million), while the corresponding figure for life insurance increased by 6.9 per cent to €732.8 million (2012: €685.2 million). The Raiffeisen Insurance segment does not offer health insurance.
Retained premiums earned (in accordance with IFRS) increased by 6.1 per cent to €76.8 million in property and casualty insurance (2012: €72.3 million) and by 8.7 per cent to €493.9 million in life insurance (2012: €454.2 million). Including the savings portion of unitand index-linked life insurance, premiums earned in life insurance amounted to €690.9 million (2012: €632.9 million).
Retained insurance benefits in the Raiffeisen Insurance segment increased by 9.2 per cent to €630.0 million in 2013 (2012: €577.0 million). Retained insurance benefits in property and casualty insurance rose by 11.3 per cent to €52.9 million (2012: €47.5 million), while the figure for life insurance increased by 9.0 per cent to €577.1 million (2012: €529.5 million). This meant that the loss ratio in property and casualty insurance amounted to 68.8 per cent in 2013 (2012: 65.6 per cent).
Operating expenses less reinsurance commission received and profit shares from reinsurance business in the amount of €26.2 million (2012: €33.5 million) declined by 16.6 per cent to €111.7 million in 2013 (2012: €134.0 million) due to the annual adjustment of assumptions for the calculation of deferred acquisition costs. Operating expenses in property and casualty insurance fell by 11.7 per cent to €16.6 million (2012: €18.8 million), while the figure for life insurance declined by 17.4 per cent to €95.2 million (2012: €115.3 million).
The cost ratio after reinsurance in the Raiffeisen Insurance segment, i.e. the ratio of total operating expenses less reinsurance commission received and profit shares from reinsurance business ceded to premiums earned, including the savings portion of unit- and index-linked life insurance, decreased to 14.6 per cent in 2013 (2012: 19.0 per cent).
In 2013, net investment income in the Raiffeisen Insurance segment declined slightly by 7.3 per cent to €251.6 million (2012: €271.4 million).
Raiffeisen Insurance's profit from ordinary activities increased by 7.0 per cent to €64.6 million in the year under review (2012: €60.4 million). The profit from ordinary activities in property and casualty insurance rose by 74.9 per cent to €9.1 million (2012: €5.2 million), while the figure in life insurance remained essentially unchanged year-on-year at €55.5 million (2012: €55.2 million).
In 2013, UNIQA International increased the premium volume written, including the savings portion of unit- and index-linked life insurance, by 11.3 per cent to €2,162.4 million (2012: €1,942.8 million). Recurring premiums rose by 4.2 per cent to €1,564.9 million (2012: €1,501.5 million), while single premiums increased by 35.4 per cent to €597.5 million (2012: €441.4 million).
Including the savings portion of unit- and index-linked life insurance, premiums earned by UNIQA International amounted to €1,631.4 million (2012: €1,414.3 million). Retained premiums earned (in accordance with IFRS) increased by 17.9 per cent to €1,323.2 million in 2013 (2012: €1,122.0 million).
While the premiums written in property and casualty insurance rose by 1.9 per cent to €1,093.7 million (2012: €1,073.1 million), the corresponding figure for health insurance declined slightly by 3.2 per cent to €71.4 million (2012: €73.8 million). The premiums written in life insurance (including the savings portion of unit- and index-linked life insurance) increased substantially by 25.3 per cent to €997.3 million (2012: €795.9 million).
Retained premiums earned (in accordance with IFRS) increased by 1.6 per cent to €596.6 million in property and casualty insurance (2012: €587.3 million), by 5.6 per cent to €69.7 million in health insurance (2012: €66.0 million) and by 40.2 per cent to €656.8 million in life insurance (2012: €468.7 million). Including the savings portion of unit- and index-linked life insurance, premiums earned in life insurance amounted to €965.1 million (2012: €761.0 million).
In Central Europe (CE) – Poland, Slovakia, the Czech Republic and Hungary – premiums earned, including the savings portion of unit- and index-linked life insurance, increased by 5.5 per cent to €606.8 million in the 2013 financial year (2012: €575.4 million). In Eastern Europe (EE) – consisting of Romania and Ukraine – premiums earned, including the savings portion of unit- and index-linked life insurance, rose by 27.8 per cent to €148.8 million (2012: €116.4 million). In Southeastern Europe (SEE) – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Macedonia, Montenegro and Serbia – premiums grew by 9.1 per cent to €158.7 million in 2013 (2012: €145.5 million). In Russia (RU), premiums earned, including the savings portion of unit- and index-linked life insurance, increased by 51.2 per cent to €64.3 million (2012: €42.5 million), while the figure for Western Europe (WE) – Italy, Liechtenstein and Switzerland – rose by 22.1 per cent to €652.9 million due to the increase in single premiums in Italy (2012: €534.5 million).
Retained insurance benefits at UNIQA International increased by 23.9 per cent to €955.9 million in 2013 (2012: €771.5 million). Retained insurance benefits in property and casualty insurance rose by 6.6 per cent to €366.1 million (2012: €343.5 million), whereas the figure for health insurance declined by 3.3 per cent to €42.5 million (2012: €44.0 million). Retained insurance benefits in life insurance increased by 42.5 per cent to €547.4 as a result of the sharp rise in the premium volume (2012: €384.0 million). The loss ratio in property and casualty insurance increased slightly to 61.4 per cent in 2013 (2012: 58.5 per cent).
In the CE region, benefits fell by 12.9 per cent to €239.1 million in 2013 (2012: €274.5 million), while the figure for the EE region rose by 46.8 per cent to €92.9 million (2012: €63.3 million). In SEE, benefits increased by 11.4 per cent to €95.6 million (2012: €85.8 million). Benefits amounted to €36.3 million in Russia (2012: €23.3 million), while the benefit volume in Western Europe also rose by 51.5 per cent to €492.1 million on the back of the strong growth in the premium volume (2012: €324.7 million).
Operating expenses less reinsurance commission received and profit shares from reinsurance business in the amount of €147.3 million (2012: €128.7 million) increased slightly by 1.2 per cent to €458.1 million in the 2013 financial year (2012: €452.5 million). Operating expenses fell by 4.7 per cent to €250.4 million in property and casualty insurance (2012: €262.8 million), whereas the figures for health insurance and life insurance increased by 17.9 per cent to €28.6 million (2012: €24.2 million) and 8.3 per cent to €179.1 million (2012: €165.4 million) respectively.
UNIQA International's cost ratio after reinsurance, i.e. the ratio of total operating expenses less reinsurance commission received and profit shares from reinsurance business ceded to premiums earned, including the savings portion of unit- and index-linked life insurance, decreased to 28.1 per cent in the past year as a result of the developments mentioned above (2012: 32.0 per cent).
In 2013, operating expenses less reinsurance commission received and profit shares from reinsurance business fell by 0.4 per cent to €178.5 million in CE (2012: €179.3 million), increased by 12.5 per cent to €74.2 million in EE (2012: €66.0 million) and rose by 10.6 per cent to €76.5 million in SEE (2012: €69.2 million). Operating expenses in Russia amounted to €27.3 million (2012: €20.6 million), while the figure for Western Europe declined by 11.2 per cent to €74.8 million (2012: €84.2 million). Operating expenses attributable to administration (UNIQA International AG) decreased by 19.5 per cent to €26.8 million (2012: €33.3 million).
Net investment income decreased slightly by 4.5 per cent to €143.1 million in 2013 (2012: €149.8 million).
The profit from ordinary activities in the UNIQA International segment improved significantly in the year under review to €19.6 million (2012: loss of €17.6 million). The loss on ordinary activities in property and casualty insurance amounted to €1.8 million (2012: €22.5 million), whereas the profit from ordinary activities in health insurance increased to €1.6 million (2012: €0.9 million) and the corresponding figure for life insurance quadrupled to €19.7 million (2012: €4.0 million).
The premium volume written in the reinsurance segment increased by 27.6 per cent to €1,633.1 million in 2013 (2012: €1,280.0 million), whereas retained premiums earned (in accordance with IFRS) fell by 2.1 per cent to €1,073.6 million (2012: €1,096.5 million).
Retained insurance benefits in the reinsurance segment declined by 6.1 per cent to €782.5 million in 2013 (2012: €833.3 million). This includes a loss (retained) due to the flooding in the second quarter of 2013 in the amount of €23 million.
Operating expenses less reinsurance commission received and profit shares from reinsurance business in the amount of €3.9 million (2012: €2.8 million) increased slightly by 3.0 per cent to €333.6 million (2012: €323.8 million).
As a result of this development, the loss on ordinary activities in the reinsurance segment improved by €35.6 million to €18.0 million (2012: loss of €53.5 million).
The profit from ordinary activities in the Group Functions and Consolidation segment fell by 69.1 per cent to €8.4 million (2012: €27.2 million). One reason for this development was the lower level of investment income.
Net investment income decreased to minus €15.6 million in 2013 (2012: €13.0 million). This figure includes the book profit on the disposal of the Austria Hotels International Group, which amounted to around €52 million.
There were no events requiring reporting after the balance sheet date.
UNIQA expects the economic environment to continue to improve in 2014. The euro zone emerged from recession in the past year. Economists are forecasting moderate growth in real GDP of around 1 per cent in 2014. With sentiment among households and companies slowly improving, UNIQA expects private consumption and capital expenditure to make a stronger contribution to growth. This is also likely to benefit the insurance industry. Economic experts are forecasting GDP growth of 1.5 per cent for Austria in 2014.
UNIQA also expects the economic upturn to continue in CEE in 2014. Growth for the region as a whole is forecast at around 2 per cent. The improved economic conditions in the euro zone are particularly beneficial for those EU member states in the CEE region that have a large export sector. Although wage development remains moderate, purchasing power and domestic demand are being boosted by the low level of inflation.
An escalation of the security crisis in Ukraine would primarily affect Russia. The risk of contagion for the wider region appears to be comparatively low at present. Growth prospects in Romania and Bulgaria have improved generally. In Croatia and Serbia, UNIQA is focusing on the long-term catch-up potential in connection with the economic reforms initiated as part of the former country's accession to the EU last year and the latter country's ongoing accession negotiations. UNIQA also expects the smaller nations of Southeastern Europe to see a slight economic upturn in 2014.
In the 1st quarter of 2014, the Austrian legislature has cut the contractual minimum commitment period for insurance-tax-privileged single premiums in life insurance back to ten years. However, this is limited to persons above the age of 50. This should result in an increase in single premium business in Austria.
Despite this, UNIQA expects moderately positive development in the Austrian insurance market. Growth in line with the multi-year trend is expected in the health insurance business especially.
Expectations for premium growth in the CEE region in 2014 are only cautiously optimistic. The effects of current political crises such as in Ukraine cannot yet be estimated with confidence. Similarly, motor vehicle insurance in particular is subject to intensive price pressure in some countries, especially in Romania. Nevertheless, UNIQA will consistently implement its strategic growth and profitability programmes and thus grow faster than the market.
In the longer term, the markets in the CEE region continue to offer major growth potential. The catch-up requirements with regard to insurance products are made apparent by indicators such as a significantly below-average insurance density relative to developed markets in the region.
For 2014, the UNIQA Group has set itself the objective of significantly increasing its profit on ordinary activities once again compared with 2013. This assumes that the capital market environment will be stable, that economic development will continue to improve and that losses caused by natural disasters will remain within a normal range.
The most important features of the internal controlling and risk management system with regard to the financial reporting process are described in the notes to the consolidated financial statements (risk report).
The single-entity financial statements of UNIQA Insurance Group AG prepared in accordance with the Austrian Commercial Code report a net retained profit for the 2013 financial year of €108,208,827.81 (2012: €53,739,218.05). The Management Board will propose to the Annual General Meeting on 26 May 2014 that this net retained profit be used to pay a dividend of €0.35 for each of the 309,000,000 issued no-par value shares with dividend rights at the reporting date and that the remaining amount be carried forward to new account.
Vienna, 25 March 2014
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 | 31.12.2013 | 31.12.20121) | 1.1.20121) |
|---|---|---|---|---|
| Figures in € thousand A. Tangible assets |
||||
| I. Self-used land and buildings | 1 | 198,433 | 194,151 | 252,288 |
| II. Other tangible assets | 2 | 88,156 | 112,604 | 131,261 |
| 286,589 | 306,755 | 383,549 | ||
| B. Land and buildings held as financial investments | 3 | 1,652,485 | 1,690,763 | 1,566,958 |
| C. Intangible assets | ||||
| I. Deferred acquisition costs | 4 | 927,900 | 868,802 | 899,732 |
| II. Goodwill | 5 | 510,174 | 523,753 | 573,367 |
| III. Other intangible assets | 6 | 24,455 | 25,170 | 30,551 |
| 1,462,530 | 1,417,725 | 1,503,649 | ||
| D. Shares in associated companies | 7 | 545,053 | 544,522 | 545,390 |
| E. Investments | ||||
| I. Variable-yield securities | ||||
| 1. Available for sale | 9 | 863,810 | 1,399,352 | 1,639,707 |
| 2. At fair value through profit or loss | 131,264 | 371,262 | 549,296 | |
| 995,074 | 1,770,614 | 2,189,002 | ||
| II. Fixed interest securities | ||||
| 1. Available for sale | 9 | 15,136,246 | 13,186,622 | 11,215,448 |
| 2. At fair value through profit or loss | 439,374 | 441,623 | 389,645 | |
| 15,575,620 | 13,628,244 | 11,605,094 | ||
| III. Loans and other investments | ||||
| 1. Loans | 11 | 944,813 | 1,089,649 | 2,189,439 |
| 2. Cash at credit institutions/cash at banks | 12 | 1,273,852 | 1,189,217 | 1,023,133 |
| 3. Deposits with ceding companies | 12 | 126,761 | 129,755 | 140,657 |
| 2,345,426 | 2,408,621 | 3,353,229 | ||
| IV. Derivative financial instruments | ||||
| 1. Variable-yield | 10 | 98 | 6,363 | 4,160 |
| 2. Fixed interest | 10 | 73,283 | 55,844 | 24,338 |
| 73,381 | 62,206 | 28,498 | ||
| 18,989,501 | 17,869,686 | 17,175,822 | ||
| F. Investments held on account and at risk of life insurance policyholders | 24 | 5,381,201 | 5,066,828 | 4,396,016 |
| G. Share of reinsurance in technical provisions | ||||
| I. Provision for unearned premiums | 19 | 14,643 | 9,869 | 18,542 |
| II. Actuarial provision | 20 | 413,385 | 434,379 | 455,835 |
| III. Provision for outstanding claims | 21 | 123,620 | 159,763 | 207,271 |
| IV. Provision for profit-unrelated premium refunds | 22 | 0 | 0 | 4 |
| V. Other technical provisions | 1,604 | 1,836 | 2,494 | |
| 23 | 553,252 | 605,847 | 684,146 | |
| H. Share of reinsurance in technical provisions held on account and at risk of life insurance policyholders |
24 | 389,206 | 408,818 | 405,513 |
| I. Receivables, including receivables under insurance business | 13 | |||
| I. Reinsurance receivables | 84,821 | 42,623 | 58,825 | |
| II. Other receivables | 856,146 | 845,186 | 870,767 | |
| III. Other assets | 38,778 | 48,369 | 58,404 | |
| 979,746 | 936,179 | 987,996 | ||
| J. Receivables from income tax | 14 | 69,881 | 55,098 | 51,586 |
| K. Deferred tax assets | 15 | 142,215 | 128,608 | 198,748 |
| L. Liquid funds | 616,976 | 960,065 | 683,094 | |
| M. Assets in disposal groups available for sale | 8 | 0 | 63,661 | 0 |
| Total assets | 31,068,634 | 30,054,554 | 28,582,469 |
1) The figures as of 31 December 2012 and 31 December 2011 were adjusted in accordance with IAS 8.42.
| I |
|---|
| Equity and liabilities Figures in € thousand |
Notes | 31.12.2013 | 31.12.20121) | 1.1.20121) |
|---|---|---|---|---|
| A. Total equity | ||||
| I. Shareholders' equity | 16 | |||
| 1. Subscribed capital and capital reserves | 1,789,920 | 1,064,594 | 540,681 | |
| 2. Revenue reserves | 792,204 | 656,708 | 414,397 | |
| 3. Revaluation reserves | 193,465 | 315,528 | –44,663 | |
| 4. Actuarial gains and losses on defined benefit plans | –116,081 | –95,260 | –36,147 | |
| 5. Group total profit | 108,209 | 67,729 | 18,704 | |
| 2,767,717 | 2,009,299 | 892,971 | ||
| II. Minority interests in shareholders' equity | 17 | 22,210 | 20,651 | 218,309 |
| 2,789,927 | 2,029,950 | 1,111,281 | ||
| B. Subordinated liabilities | 18 | 600,000 | 450,000 | 575,000 |
| C. Technical provisions | ||||
| I. Provision for unearned premiums | 19 | 621,986 | 617,165 | 616,034 |
| II. Actuarial provision | 20 | 16,409,428 | 16,158,189 | 16,706,249 |
| III. Provision for outstanding claims | 21 | 2,367,882 | 2,365,841 | 2,456,528 |
| IV. Provision for profit-unrelated premium refunds | 22 | 46,479 | 44,578 | 51,533 |
| V. Provision for profit-related premium refunds, i.e. policyholder profit sharing | 22 | 334,753 | 556,218 | 7,786 |
| VI. Other technical provisions | 46,182 | 48,929 | 49,982 | |
| 23 | 19,826,710 | 19,790,921 | 19,888,111 | |
| D. Technical provisions held on account | ||||
| and at risk of life insurance policyholders | 24 | 5,299,625 | 4,983,029 | 4,318,331 |
| E. Financial liabilities | ||||
| I. Liabilities from loans | 25 | 18,535 | 27,494 | 47,114 |
| II. Derivatives | 10 | 8,301 | 7,471 | 26,598 |
| 26,836 | 34,965 | 73,711 | ||
| F. Other provisions | ||||
| I. Pensions and similar provisions | 26 | 586,757 | 566,620 | 593,019 |
| II. Other provisions | 27 | 249,924 | 304,389 | 158,957 |
| 836,681 | 871,009 | 751,976 | ||
| G. Payables and other liabilities | 28 | |||
| I. Reinsurance liabilities | 834,056 | 887,405 | 902,472 | |
| II. Other payables | 456,432 | 570,643 | 617,402 | |
| III. Other liabilities | 23,040 | 31,226 | 43,318 | |
| 1,313,527 | 1,489,275 | 1,563,192 | ||
| H. Liabilities from income tax | 29 | 40,712 | 28,623 | 19,224 |
| I. Deferred tax liabilities | 30 | 334,616 | 365,590 | 281,642 |
| J. Liabilities in disposal groups available for sale | 8 | 0 | 11,191 | 0 |
Total equity and liabilities 31,068,634 30,054,554 28,582,469
1) The figures as of 31 December 2012 and 31 December 2011 were adjusted in accordance with IAS 8.42.
| Figures in € thousand | Notes | 2013 | 20121) |
|---|---|---|---|
| 1. Premiums written (retained) | 31 | ||
| a) Gross | 5,157,576 | 4,864,151 | |
| b) Reinsurers' share | –216,727 | –213,504 | |
| 4,940,849 | 4,650,647 | ||
| 2. Change in unearned premiums (retained) | |||
| a) Gross | –10,821 | –18,435 | |
| b) Reinsurers' share | 5,860 | –8,302 | |
| –4,961 | –26,738 | ||
| 3. Premiums earned (retained) | 32 | ||
| a) Gross | 5,146,755 | 4,845,715 | |
| b) Reinsurers' share | –210,867 | –221,806 | |
| 4,935,888 | 4,623,909 | ||
| 4. Income from fees and commissions | 33 | ||
| Reinsurance commission and profit shares from reinsurance business ceded | 28,302 | 35,731 | |
| 5. Net investment income | 34 | 780,002 | 791,437 |
| of which profit from associated companies | 22,229 | 16,499 | |
| 6. Other income | 35 | 64,097 | 46,562 |
| Total income | 5,808,289 | 5,497,640 | |
| 7. Insurance benefits | 36 | ||
| a) Gross | –4,073,903 | –3,873,806 | |
| b) Reinsurers' share | 118,635 | 115,261 | |
| –3,955,268 | –3,758,545 | ||
| 8. Operating expenses | 37 | ||
| a) Acquisition costs | –945,950 | –955,802 | |
| b) Other operating expenses | –439,941 | –399,204 | |
| 9. Other expenses | 38 | –1,385,891 –121,934 |
–1,355,006 –124,020 |
| 10. Amortisation of goodwill | –7,301 | –24,937 | |
| Total expenses | –5,470,394 | –5,262,509 | |
| 11. Operating profit | 337,895 | 235,131 | |
| 12. Financing costs | –32,281 | –30,955 | |
| 13. Profit on ordinary activities | 305,614 | 204,176 | |
| 14. Income taxes | 39 | –68,837 | –47,576 |
| 15. Result from discontinued operations (after taxes) | 50,000 | 9,873 | |
| 16. Net profit | 286,777 | 166,473 | |
| of which consolidated profit/loss | 283,447 | 127,120 | |
| of which minority interests | 3,330 | 39,353 | |
| Earnings per share (in €) 2) |
16 | 1.20 | 0.75 |
| Average number of shares in circulation | 235,294,119 | 169,599,813 | |
1) The figures of the previous year were adjusted according to IAS 8.42. 2) The diluted earnings per share is equal to the undiluted earnings per share. Calculated on the basis of the consolidated profit.
| Figures in € thousand | 2013 | 20121) |
|---|---|---|
| Net profit | 286,777 | 166,473 |
| Not included in the income statement in the subsequent period | ||
| Actuarial gains and losses on defined benefit plans | ||
| Gains (losses) recognised in equity | –32,157 | –94,757 |
| Gains (losses) recognised in equity – deferred tax | 6,757 | 18,049 |
| Gains (losses) recognised in equity – deferred profit participation | 4,579 | 21,096 |
| –20,821 | –55,612 | |
| Included in the income statement in the subsequent period | ||
| Foreign currency translation | ||
| Gains (losses) recognised in equity | –24,897 | 11,650 |
| Included in the income statement | –6,332 | 0 |
| Unrealised gains and losses on investments | ||
| Gains (losses) recognised in equity | –170,192 | 1,234,070 |
| Gains (losses) recognised in equity – deferred tax | 21,194 | –168,733 |
| Gains (losses) recognised in equity – deferred profit participation | 76,778 | –652,986 |
| Included in the income statement | –239,082 | –100,122 |
| Included in the income statement – deferred tax | 22,813 | 10,948 |
| Included in the income statement – deferred profit participation | 165,931 | 72,291 |
| Change resulting from valuation at equity | ||
| Gains (losses) recognised in equity | –10,979 | –2,241 |
| Included in the income statement | –1,710 | 0 |
| Other changes2) | –1,540 | –360 |
| –168,016 | 404,516 | |
| Other result | –188,837 | 348,904 |
| Comprehensive income | 97,940 | 515,377 |
| of which attributable to UNIQA Insurance Group AG shareholders | 95,105 | 445,810 |
| of which minority interests | 2,835 | 69,566 |
1) The figures of the previous year were adjusted according to IAS 8.42.
2) The other changes result primarily from currency fluctuations.
The figures as of 31 December 2012 and 31 December 2011 were adjusted in accordance with IAS 8.42.
As a result of a reclassification of regulatory reserves of the associated company VALIDA Holding AG from external funds to equity, the at-equity recognition was adjusted in the amount of € 18,371 thousand.
Furthermore, the balance of a clearing account of the Hungarian subsidiary was derecognised. This adjustment increased other liabilities by € 4,829 thousand.
Additionally, the effects of forward purchase agreements and put options connected to past company acquisitions were recognised. This resulted in a change of goodwill, minority interests in shareholders' equity and other liabilities with a total net effect of € 1,526 thousand.
Finally, deferred taxes (deferred tax assets and liabilities) were adjusted on several grounds. This caused a total net effect of € 353 thousand.
Overall, the adjustments made resulted in an increase of equity of € 12,369 thousand as of 31 December 2012.
In addition, shares in associated companies and other provisions were reclassified as investments available for sale and other liabilities respectively.
The table below shoes the effects of the adjustments on the individual items of the consolidated balance sheet, the consolidated income statement and the earnings per share.
| Consolidated Balance Sheet Figures in € thousand |
31.12.2012 Adjusted |
31.12.2012 As published in annual report |
31.12.2012 Adjustment |
|---|---|---|---|
| Assets | |||
| C. Intangible assets | 1,417,725 | 1,414,406 | 3,318 |
| II. Goodwill | 523,753 | 520,435 | 3,318 |
| D. Shares in associated companies | 544,522 | 529,602 | 14,921 |
| E. Investments | 17,869,686 | 17,866,236 | 3,450 |
| I. Variable-yield securities | 1,770,614 | 1,767,164 | 3,450 |
| 1. Available for sale | 1,399,352 | 1,395,902 | 3,450 |
| J. Receivables from income tax | 55,098 | 54,561 | 537 |
| K. Deferred tax assets | 128,608 | 133,504 | –4,896 |
| Total assets | 30,054,554 | 30,037,224 | 17,330 |
| Equity and liabilities | |||
| A. Total equity | 2,029,950 | 2,017,581 | 12,369 |
| I. Shareholders' equity | 2,009,299 | 1,995,309 | 13,990 |
| 5. Group total profit | 67,729 | 53,739 | 13,990 |
| II. Minority interests in shareholders' equity | 20,651 | 22,272 | –1,621 |
| F. Other provisions | 871,009 | 915,637 | –44,627 |
| II. Other provisions | 304,389 | 349,017 | –44,627 |
| G. Payables and other liabilities | 1,489,275 | 1,434,438 | 54,837 |
| II. Other payables | 570,643 | 515,807 | 54,837 |
| H. Liabilities from income tax | 28,623 | 28,557 | 67 |
| I. Deferred tax liabilities | 365,590 | 370,905 | –5,316 |
| Total equity and liabilities | 30,054,554 | 30,037,224 | 17,330 |
| Consolidated Income Statement Figures in € thousand |
2012 after change |
2012 before change |
2012 change |
| 5. Net investment income | 791,437 | 791,546 | –109 |
| of which profit from associated companies | 16,499 | 19,053 | –2,555 |
| 9. Other expenses | –124,020 | –122,954 | –1,066 |
| 11. Operating profit | 235,131 | 236,306 | –1,175 |
| 13. Profit on ordinary activities | 204,176 | 205,351 | –1,175 |
| 14. Income taxes | –47,576 | –45,423 | –2,153 |
| 16. Net profit | 166,473 | 169,801 | –3,328 |
| of which consolidated profit/loss | 127,120 | 130,225 | –3,106 |
| of which minority interests | 39,353 | 39,575 | –222 |
| Earnings per share (in €) | 0.75 | 0.77 | –0.02 |
| Consolidated Balance Sheet Figures in € thousand |
31.12.2011 Adjusted |
31.12.2011 As published in Annual Report |
31.12.2011 Adjustment |
|---|---|---|---|
| Assets | |||
| C. Intangible assets | 1,503,649 | 1,500,331 | 3,318 |
| II. Goodwill | 573,367 | 570,048 | 3,318 |
| D. Shares in associated companies | 545,390 | 530,485 | 14,906 |
| E. Investments | 17,175,822 | 17,172,249 | 3,574 |
| I. Variable-yield securities | 2,189,002 | 2,185,429 | 3,574 |
| 1. Available for sale | 1,639,707 | 1,636,133 | 3,574 |
| J. Receivables from income tax | 51,586 | 51,156 | 430 |
| K. Deferred tax assets | 198,748 | 206,166 | –7,417 |
| Total assets | 28,582,469 | 28,567,658 | 14,811 |
| Equity and liabilities | |||
| A. Total equity | 1,111,281 | 1,095,584 | 15,697 |
| I. Shareholders' equity | 892,971 | 875,876 | 17,096 |
| 5. Group total profit | 18,704 | 1,608 | 17,096 |
| II. Minority interests in shareholders' equity | 218,309 | 219,708 | –1,399 |
| F. Other provisions | 751,976 | 788,109 | –36,133 |
| II. Other provisions | 158,957 | 195,090 | –36,133 |
| G. Payables and other liabilities | 1,563,192 | 1,517,916 | 45,276 |
| II. Other payables | 617,402 | 572,126 | 45,276 |
| H. Liabilities from income tax | 19,224 | 19,157 | 67 |
| I. Deferred tax liabilities | 281,642 | 291,739 | –10,096 |
| Total equity and liabilities | 28,582,469 | 28,567,658 | 14,811 |
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| Net profit/loss, including minority interests | ||
| Net profit | 286,777 | 166,473 |
| of which interest and dividend payments | –12,261 | –10,296 |
| Minority interests | –3,330 | –39,353 |
| Change in technical provisions (net) | 424,592 | 1,673,315 |
| Change in deferred acquisition costs | –59,098 | –19,401 |
| Change in amounts receivable and payable from direct insurance | –105,070 | –15,859 |
| Change in other amounts receivable and payable | –122,245 | –14,601 |
| Change in securities at fair value through profit or loss | 231,072 | 92,347 |
| Realised gains/losses on the disposal of investments | –165,248 –1,349,865 | |
| Depreciation/appreciation of other investments | 195,233 | 127,053 |
| Change in provisions for pensions and severance payments | 20,137 | 99,546 |
| Change in deferred tax assets/liabilities | –37,686 | 148,464 |
| Change in other balance sheet items | 20,406 | 125,394 |
| Change in goodwill and intangible assets | 14,293 | 180,960 |
| Other non-cash income and expenses as well as accounting period adjustments | –66,279 | –41,501 |
| Net cash flow from operating activities | 633,553 | 1,132,971 |
| of which cash flow from income tax | –72,844 | –27,828 |
| Receipts due to disposal of consolidated companies | 17,659 | 180,020 |
| Payments due to acquisition of consolidated companies | –7,988 | –388,167 |
| Receipts due to disposal and maturity of other investments | 5,393,791 | 9,651,286 |
| Payments due to acquisition of other investments | –6,875,941 –9,957,761 | |
| Change in investments held on account and at risk of life insurance policyholders | –314,373 | –670,890 |
| Net cash flow used in investing activities | –1,786,852 –1,185,513 | |
| Share capital increase | 725,326 | 523,913 |
| Change in investments in own shares | 0 | 0 |
| Dividend payments | –53,357 | 0 |
| Receipts and payments from other financing activities | 141,041 | –188,904 |
| Net cash flow used in financing activities | 813,009 | 335,009 |
| Change in cash and cash equivalents | –340,289 | 282,466 |
| Change in cash and cash equivalents due to foreign currency translation | –2,800 | 1,039 |
| Change in cash and cash equivalents due to acquisition/disposal of consolidated companies | 0 | –6,534 |
| Cash and cash equivalents at beginning of period | 960,065 | 683,094 |
| Cash and cash equivalents at end of period | 616,976 | 960,065 |
| of which cash flow from income tax | –72,844 | –27,828 |
The cash and cash equivalents correspond to item L. of the assets: Liquid funds.
| Subscribed capital and capital reserves |
Revaluation reserve | Actuarial gains and losses on defined benefit plans |
||
|---|---|---|---|---|
| Figures in € thousand | ||||
| As at 31.12.2011 | 540,681 | –44,663 | –36,147 | |
| Restatement IAS 8 | 0 | 0 | 0 | |
| As at 1.1.2012 | 540,681 | –44,663 | –36,147 | |
| Changes due to: | ||||
| Capital increase | 523,913 | |||
| Change in consolidation scope | ||||
| Dividends to shareholders | ||||
| Comprehensive income | 360,191 | –59,113 | ||
| Foreign currency translation | ||||
| Unrealised gains and losses from valuation at equity | ||||
| Unrealised capital gains and losses from investments | 360,191 | |||
| Actuarial gains and losses on defined benefit plans | –59,113 | |||
| Net profit | ||||
| Other | ||||
| Changes in revenue reserves | ||||
| As at 31.12.2012 | 1,064,594 | 315,528 | –95,260 | |
| Changes due to: | ||||
| Capital increase | 725,326 | |||
| Change in consolidation scope | ||||
| Dividends to shareholders | ||||
| Comprehensive income | –122,063 | –20,821 | ||
| Foreign currency translation | ||||
| Unrealised gains and losses from valuation at equity | ||||
| Unrealised capital gains and losses from investments | –122,063 | |||
| Actuarial gains and losses on defined benefit plans | –20,821 | |||
| Net profit | ||||
| Other | ||||
| Changes in revenue reserves | ||||
| As at 31.12.2013 | 1,789,920 | 193,465 | –116,081 | |
| Total equity |
Minority interests |
Shareholders' equity | Group total profit | Holding of own shares | Revenue reserves, including reserves for own shares |
|---|---|---|---|---|---|
| 1,095,584 | 219,708 | 875,876 | 1,608 | –10,857 | 425,255 |
| 15,697 | –1,399 | 17,096 | 17,096 | 0 | 0 |
| 1,111,281 | 218,309 | 892,971 | 18,704 | –10,857 | 425,255 |
| 523,913 | 523,913 | ||||
| –119,731 | –266,335 | 146,604 | 146,604 | ||
| –890 | –890 | 0 | 0 | ||
| 515,377 | 69,566 | 445,810 | 127,120 | 17,612 | |
| 11,650 | 11,650 | 11,650 | |||
| –2,241 | 0 | –2,241 | –2,241 | ||
| 395,467 | 35,276 | 360,191 | 0 | ||
| –55,612 | –5,062 | –50,549 | 8,563 | ||
| 166,473 | 39,353 | 127,120 | 127,120 | 0 | |
| –360 | –360 | 0 | –360 | ||
| 0 | 0 | –78,094 | 78,094 | ||
| 2,029,950 | 20,651 | 2,009,299 | 67,729 | –10,857 | 667,565 |
| 725,326 | 725,326 | ||||
| –8,824 | –168 | –8,656 | –8,656 | ||
| –54,465 | –1,108 | –53,357 | –53,357 | ||
| 97,940 | 2,835 | 95,105 | 283,447 | –45,458 | |
| –31,229 | –31,229 | –31,229 | |||
| –12,689 | –12,689 | –12,689 | |||
| –122,558 | –495 | –122,063 | |||
| –20,821 | 0 | –20,821 | 0 | ||
| 286,777 | 3,330 | 283,447 | 283,447 | ||
| –1,540 | –1,540 | –1,540 | |||
189,610 –189,610 0 0 803,061 –10,857 108,209 2,767,717 22,210 2,789,927
UNIQA Insurance Group AG is a company based 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 2013 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 based 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 endorsed by the European Union (EU). The additional requirements of Section 243a paragraph 2 of the Austrian Commercial Code (UGB) were also met. The consolidated financial statements were approved for publication by the Management Board on 25 March 2014.
They are presented in euro, the company's functional currency. All financial information shown in euro 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 86), 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 immediately as expenses if they are not related to the issue of debt securities or equity securities.
The consideration transferred includes no amounts associated with the fulfilment of preexisting relationships. Such amounts are 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 of 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 accounted for as equity transactions.
Subsidiaries are entities controlled by the Group. The Group controls an entity if it has the power to govern its financial and operating policies so as to obtain benefits from its activities. Control exists when the Group directly or indirectly holds more than half of the voting rights in a subsidiary or when control can otherwise be legally demonstrated via agreements with other investors or the articles of association. Potential voting rights that are currently exercisable or convertible are considered when assessing whether control exists.
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 profit or loss. Any retained interest in the former subsidiary is measured at fair value as of the date of the loss of control.
Associated companies are entities over which the Group has significant influence, but not control or joint control, as regards financial and operating policies.
Shares in associated companies are recognised at equity. 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 at equity 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 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 continue to be measured according to the Group's other accounting policies. Impairment losses on the first-time classification as held for sale and later profit and loss on remeasurement are recognised in profit or loss.
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 at equity are no longer recognised at equity.
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. Foreign exchange differences are recognised in profit or loss for the period. Non-monetary items measured at historical cost in a foreign currency are not translated.
For the following items, foreign exchange 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 euro at the closing rate on the reporting date. Income and expenses from foreign operations are translated at the average rate for the year.
Foreign exchange differences are reported in other comprehensive income and recognised in the foreign currency translation reserve 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 foreign 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 non-controlling 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 foreign exchange difference is reclassified to profit or loss.
If the settlement of monetary items in the form or 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 foreign currency translation reserve in equity.
| € rates on balance sheet closing date | 31.12.2013 31.12.2012 | |
|---|---|---|
| Swiss franc CHF | 1.2276 | 1.2072 |
| Czech koruna CZK | 27.4270 | 25.1510 |
| Hungarian forint HUF | 297.0400 | 292.3000 |
| Croatian kuna HRK | 7.6265 | 7.5575 |
| Polish złoty PLN | 4.1543 | 4.0740 |
| Bosnia and Herzegovina convertible mark BAM | 1.9558 | 1.9558 |
| Romanian leu (new) RON | 4.4710 | 4.4445 |
| Bulgarian lev (new) BGN | 1.9558 | 1.9558 |
| Ukrainian hryvnia UAH | 11.3252 | 10.6208 |
| Serbian dinar RSD | 114.5734 | 112.3722 |
| Russian rouble RUB | 45.3246 | 40.3295 |
| Albanian lek ALL | 140.4900 | 140.1400 |
| Macedonian denar MKD | 61.3938 | 62.2353 |
Since 1 January 2005, UNIQA Insurance Group AG has applied IFRS 4 published in 2004 for insurance policies. This standard demands that the methods of accounting and valuation 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 the US Generally Accepted Accounting Principles (US GAAP) in the version valid 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 the life insurer with profit participation, FAS 120 was observed; FAS 60 was applied for specific items in health, property and casualty insurance and FAS 113 in the area of reinsurance. The unit-linked life insurance, where the policyholder bears the investment risk, is stated according to FAS 97.
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, 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 asset-side item as per 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 according to 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 written down in line with the pattern of expected gross profits or margins.
For short-term insurance policies, 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 on the conclusion of 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 write-downs of deferred acquisition costs.
They 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 premium reserves.
Actuarial provisions are established in the casualty, life and health insurance lines. Their recognition value on the balance sheet is determined according to 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 actuarial provision of the life insurer is calculated by taking into account prudent and contractually agreed calculation bases.
For policies of a mainly investment character (e.g. unit-linked life insurance), the regulations in the Statement of Financial Accounting Standards No. 97 (FAS 97) are used to value the actuarial provision. The actuarial provision is arrived at by combining the invested amounts, the change in value of the underlying investments and the withdrawals under the policy. For unitlinked insurance policies in which the policyholder carries the sole risk of the value of the investment rising or falling, the actuarial provision is listed as a separate liability entry under "Technical provisions for life insurance where the investment risk is carried by policyholders".
The actuarial provisions for health insurance are determined on a calculation basis of "best estimate", taking into account safety margins. Once a calculation basis has been determined, these basically have to be applied to the corresponding part portfolio for the whole duration (locked-in principle).
The provision for outstanding claims in property and casualty insurance contains the actual and the expected amounts of future financial obligations including the claims settlement expenses appertaining thereto, based on accepted statistical procedures. 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 procedures, individual loss provisions are made.
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 profitunrelated profit sharing to which the policyholders are entitled on the basis of statutory or contractual regulations.
For life insurance policies with a discretionary participation feature, differences between local measurement and IFRS measurement are presented with deferred profit participation taken into account, whereby this too is reported in profit or loss or in the statement of comprehensive income depending on the recognition of the change in the underlying valuation differences. The amount of the provision for deferred profit participation amounts to generally 85 per cent of the valuation differentials before tax. These valuation differences can also give rise to net positive items, which are also listed here.
This item basically contains the provision for contingent losses for acquired reinsurance portfolios as well as a provision for expected cancellations and premium losses.
This item concerns the actuarial 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 investments of the unit-linked and index-linked life insurance 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 profit or loss. 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 recorded in profit or losses in the period in which they arise.
Termination 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 in profit or loss.
Tax expenditure 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 are valid on the reporting date or will soon be valid, 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 tax is recognised with regard to temporary differences between the carrying amounts of assets and liabilities for Group accounting purposes and the amounts used for tax purposes. Deferred taxes are not recognised for:
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 deferred tax liabilities are netted when certain conditions are met.
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 profit or loss from the disposal of an item of property, plant and equipment is recognised in profit or loss.
If the use of a property changes and an owner-occupied property becomes an investment property, the property is reclassified as an investment property with the carrying amount as of 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.
The goodwill arising in the context of business combinations is measured at cost less accumulated impairment losses.
Values of life, property and casualty insurance policies relate to expected future margins from purchased operations.
With regard to life insurance business acquired, the amortisation of the current value follows the progression of the estimated gross margins.
The other intangible assets include both purchased and self-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 according to IAS 40.56.
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 written off over the term of the insurance contracts to which they refer. If they are attributable to property and casualty insurance, they are written off over the probable policy term, with a maximum of five years. For life insurance, the acquisition costs are amortised over the duration of the policy 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 policies. For long-term health insurance policies, the depreciation 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 Group classifies non-derivative financial assets to the following categories:
Financial assets measured at fair value through profit or loss, loans and receivables and available-for-sale financial assets.
The Group categorises non-derivative financial liabilities as other financial liabilities.
With the exception of mortgage loans and other loans, the 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 by the Austrian Insurance Supervisory Act, for hedging investments and for increasing earnings. All fluctuations 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 balance sheet. Unrealised profits and losses are dealt with 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 dealt with under the items for securities at fair value through profit or loss.
These investments concern life insurance policies 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 policies. The investments in question are collected in asset pools, balanced 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 balanced investments strictly corresponds to the actuarial 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 counterbalanced by the appropriate changes in these reserves.
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, lifted or expired.
Financial assets and liabilities are set off and recognised net in the balance sheet 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 include immediately available bank balances, 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 reserve of fair value changes 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 principal repayment and amortisation, 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 associated company 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 calculation 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:
• Note 3 – Investment property
• Note 9 – Securities available for sale
With the exception of the following changes, the Group applied the described accounting policies consistently to all periods presented in these consolidated financial statements.
The Group applied the following new standards and amendments to standards, including all subsequent amendments to other standards whose date of first-time application is 1 January 2013.
| IFRS | 1 | Amendment Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters | |
|---|---|---|---|
| IAS | 12 | Amendment Deferred Tax: Recovery of Underlying Assets | |
| IFRS | 13 | Fair Value Measurement | |
| IAS | 19 | Employee Benefits (2011) | |
| IAS | 1 | Presentation of Items of Other Comprehensive Income (Amendment) | |
| IFRIC | 20 | Stripping Costs in the Production Phase of a Surface Mine | |
| IFRS | 7 | Disclosures - Offsetting Financial Assets and Financial Liabilities - Amendments to IFRS 7 | |
| IFRS | 1 | Government Loans - Amendment | |
| IFRS | All | Annual Improvements 2011 |
The application of these new mandatory IFRSs has the following effects on the consolidated financial statements:
IFRS 13 creates a standard framework for the measurement of fair value and disclosures of fair value measurements when such measurements are required or permitted by other IFRSs. This standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The standard replaces and enhances the disclosure requirements regarding fair value measurements in other IFRSs, including IFRS 7. As a result, the Group made additional disclosures in this regard.
In compliance with the transitional provisions of IFRS 13, the Group applied the new fair value measurement regulations prospectively and made no comparative information from the previous year available for new disclosures. Nonetheless, the change had no material effects on the measurement of the Group's assets and liabilities.
As a result of the amendments to IAS 1, the Group changed the presentation of items of other comprehensive income in its statement of comprehensive income in order to report items to be reclassified to profit or loss separately from items that will never be reclassified. The comparative information was adjusted accordingly.
As a result of IAS 19, the Group had already changed its accounting policy regarding the principles of calculating income or expenses connected to its defined benefit plans for postemployment benefits in 2011.
Pursuant to IAS 19 (2011), the Group calculates net interest expenses (net interest 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 to the net liability (asset) from defined benefit plans on this date. Any changes in the net liabilities (assets) from defined benefit plans that resulted from contribution and benefit payments over the course of the reporting period are taken into account. As a result, net interest on the net liability (asset) from defined benefit plans now includes: interest expense for the defined benefit obligation, interest income from plan assets and interest on the effect of the asset ceiling. Previously, the Group determined the interest income from plan assets on the basis of the expected long-term rate of return.
As the Group already recognised actuarial gains and losses in OCI in line with the former IAS 19, this has no quantitative effects.
All other new mandatory IFRSs were either inapplicable for the Group or had no effects.
A range of new standards, amendments to standards and interpretations are first applicable in the first reporting period of a financial year beginning after 1 January 2013 and were not applied as these consolidated financial statements were prepared. Those that may be relevant to the Group are shown below. The Group does not intend to apply these standards early.
| IAS | 27 | Seperate Financial Statements (2011) | 1 Jan. 2014 |
|---|---|---|---|
| IAS | 28 | Investments in Associates and Joint Ventures (2011) | 1 Jan. 2014 |
| IFRS | 10 | Consolidated Financial Statements | 1 Jan. 2014 |
| IFRS | 11 | Joint Arrangements | 1 Jan. 2014 |
| IFRS | 12 | Disclosures of Interests in Other Entities | 1 Jan. 2014 |
| IFRS | 10-12 | Transition Guidance - Amendment to IFRS 10-12 | 1 Jan. 2014 |
| IFRS | 9 | Financial Instruments | Not yet endorsed |
| IAS | 32 | Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32 | 1 Jan. 2014 |
| IFRS | 9 | Mandatory Effective Date and Transition Disclosures - Amendments to IFRS 9 and IFRS 7 | Not yet endorsed |
| IFRS | 10, 12 Investment Entities - Amendment to IFRS 10, 12 and IAS 27 | 1 Jan. 2014 | |
| IFRIC | 21 | Levies | Not yet endorsed |
| IAS | 36 | Amendment IAS 36 Recoverable Amount Disclosures for Non-Financial Assets | 1 Jan. 2014 |
| IAS | 39 | Novation of Derivatives and Continuation of Hedge Accounting (Amendment) | 1 Jan. 2014 |
| IAS | 19 | Defined Benefit Plans: Employee Contributions | Not yet endorsed |
| IFRS | 9 | Hedge Accounting and amendments to IFRS 9, IFRS 7 and IAS 39 | Not yet endorsed |
| IFRS | All | Annual Improvements 2011-2013 | Not yet endorsed |
| IFRS | All | Annual Improvements 2010-2012 | Not yet endorsed |
| IFRS | 14 | Regulatory Deferral Accounts | 1 Jan. 2016 |
The application of these new IFRSs is expected to have the following effects on the consolidated financial statements:
IFRS 9 follows a new approach to the categorisation and measurement of financial assets and now differentiates between only two measurement categories (measurement at fair value or amortised cost) on the basis of the entity's business model or on the characteristic features of the contractual cash flows of the respective financial asset. Impairment must be measured in line with a standard method.
UNIQA is observing the development but cannot yet describe precise effects because of the ongoing endorsement process.
IFRS 10 (2011) introduces a new control model that focuses on whether the Group has control over an investee, is exposed to risks from or has rights to variable returns from its involvement with the investee, and can use its control to influence these returns. In accordance with the transitional provisions of IFRS 10 (2011), the Group must re-evaluate the control of its investees as of 1 January 2014.
The new control model will not change the Group's scope of consolidation.
In accordance with IFRS 11, the Group has classified its interests in joint arrangements either as joint operations (when the Group has rights to the assets attributable to a joint operation and obligations for its liabilities) or as joint ventures (when the Group has rights only to the net assets of an arrangement). In this assessment, the Group considered the structure of the arrangements, the legal form of all independent vehicles, the conditions of the contractual arrangements and other matters and circumstances. Previously, the classification focused exclusively on the structure of the arrangement.
At present, the Group has no joint arrangements to which IFRS 11 is applicable.
As a result of IFRS 12, the Group will expand its disclosures regarding its interests in subsidiaries and in financial investments recognised at equity.
As a result of this amendment to IAS 36, the Group must expand its disclosures on recoverable amounts when these are based on fair value less costs to sell and impairment is recognised.
For all other IFRSs to be applied in future, there are either no relevant transactions or no effects on the consolidated financial statements are expected.
Preparing the consolidated financial statements requires the Management Board to make judgements, estimates and assumptions that affect the application of accounting policies and the amounts recognised for assets, liabilities, income and expenses. Actual results can differ from these estimates. Estimates and underlying assumptions are monitored on an ongoing basis. Revisions of estimates are reported prospectively.
The items below carry a not insignificant level of risk that considerable adjustments to asset or debt values may be necessary in the following year:
The risk report contains sensitivity analyses for the most important estimate uncertainties.
In addition to the annual financial statements of UNIQA Insurance Group AG, the consolidated financial statements include the financial statements of all subsidiaries at home and abroad. Alongside UNIQA Insurance Group AG, the scope of consolidation included 52 domestic and 69 foreign subsidiaries. A full list of subsidiaries and associated companies is shown on page 193.
Eight associated companies were domestic companies consolidated at equity.
In applying IAS 39 and in terms of the present interpretation of this statement by the IASB (SIC 12), fully controlled investment funds were included in the consolidation insofar as their fund volumes were not of minor importance when viewed singularly and in total.
The scope of consolidation was not extended in the reporting period. In the 3rd quarter of 2013, the remaining shares amounting to 6 per cent in UNIQA životno osiguranje a.d. in Serbia were acquired.
In the 3rd quarter of 2012, the UNIQA Group resolved to sell the companies of the Austria Hotels International Group. The sale was settled in the 1st half of 2013.
On 16 April 2012, the UNIQA Group entered into agreements to sell Mannheimer AG Holding including its subsidiaries and the associated real estate holdings. These transactions were conducted in the 2nd quarter of 2012 and related to 91.68 per cent of the shares of Mannheimer AG Holding, its subsidiaries Mannheimer Versicherung AG, Mannheimer Krankenversicherung AG and mamax Lebensversicherung AG. The result from discontinued operations is composed as follows:
| Property and casualty insurance |
Health insurance | Life insurance | Consolidation | Group | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Figures in € thousand | 1–12/2013 1–12/2012 1–12/2013 1–12/2012 1–12/2013 1–12/2012 1–12/2013 1–12/2012 1–12/2013 1–12/2012 | |||||||||
| Gross premiums written | 0 | 197,613 | 0 | 72,739 | 0 | 9,933 | 0 | 0 | 0 | 280,285 |
| Premiums earned (retained) | 0 | 152,640 | 0 | 69,788 | 0 | 7,299 | 0 | 115 | 0 | 229,842 |
| Income from fees and commissions | 0 | 422 | 0 | 30 | 0 | 1,273 | 0 | –41 | 0 | 1,684 |
| Net investment income | 0 | 7,482 | 0 | 12,098 | 0 | 1,231 | 0 | 1 | 0 | 20,811 |
| Other income | 0 | 18,363 | 0 | 402 | 0 | 194 | 0 | –14,466 | 0 | 4,494 |
| Insurance benefits (net) | 0 | –105,777 | 0 | –71,306 | 0 | –5,916 | 0 | 384 | 0 | –182,616 |
| Operating expenses | 0 | –57,896 | 0 | –9,218 | 0 | –2,776 | 0 | 0 | 0 | –69,890 |
| Other expenses | 0 | –16,690 | 0 | –2,249 | 0 | –1,680 | 0 | 12,680 | 0 | –7,939 |
| Amortisation of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating profit/loss | 0 | –1,456 | 0 | –455 | 0 | –376 | 0 | –1,328 | 0 | –3,615 |
| Financing costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit/loss on ordinary activities | 0 | –1,456 | 0 | –455 | 0 | –376 | 0 | –1,328 | 0 | –3,615 |
| Income taxes | 0 | –518 | 0 | 69 | 0 | –161 | 0 | 0 | 0 | –610 |
| Current result from discontinued | ||||||||||
| operations (after taxes) | 0 | –1,974 | 0 | –386 | 0 | –537 | 0 | –1,328 | 0 | –4,225 |
| Disposal proceeds from | ||||||||||
| discontinued operations | 50,000 | 14,098 | 0 | 0 | 0 | 0 | 0 | 0 | 50,000 | 14,098 |
| Result from discontinued | ||||||||||
| operations (after taxes) | 50,000 | 12,124 | 0 | –386 | 0 | –537 | 0 | –1,328 | 50,000 | 9,873 |
| of which consolidated profit/loss | 50,000 | 12,603 | 0 | –354 | 0 | –492 | 0 | –1,328 | 50,000 | 10,429 |
| of which minority interests | 0 | –478 | 0 | –32 | 0 | –45 | 0 | 0 | 0 | –555 |
The disposal proceeds in 2013 originate from the reversal of a provision for liabilities in connection with the sale of Mannheimer AG Holding.
We have set ourselves ambitious targets in connection with our corporate strategy UNIQA 2.0. In summary, we aspire to sustainable and profitable growth; we take the initiative, optimise processes and back innovation. We do this with a view to keeping the promise we made to our customers, our shareholders and our employees. In addition, we are mindful of 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.
We understand that our responsibility as one of the largest insurance groups in Central and Eastern Europe involves a great deal more than complying with regulations. We bear responsibility to our customers' requirements, our owners' capital, our employees' jobs, the value of our brand and the future of our next generation.
For more than 150 years, our customers have travelled through life with a sense of security. We want to continue enabling this worry-free existence in the future.
We promise growth and profit in our core business. We want to be a long-term, stable and profitable investment for our owners.
We want to remain an attractive employer in future.
UNIQA stands for innovation, stability and reliability. We take care of our image and will continue to protect it with all available means.
We make a great contribution to the stability of our society and thus for the next generation. We want to keep living up to our high aspirations of sustainable business.
Our responsibilities include our strategic objectives. We want to grow profitably and service 15 million customers by 2020, and report EBT of up to € 550 million in 2015 on the basis of a leaner corporate structure.
The origin of the word risk is as uncertain as its meaning. Risk is also the central element around which our business revolves. Our core business is to accept risk from our customers, pool it in order to reduce it and thus to generate profit for our company. This centres on the understanding of risks and their particular attributes.
Risk is a top-level matter for us. In order to guarantee a 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 local companies. We thus guarantee risk-based decision-making in all relevant bodies.
We have established processes that allow us to identify, analyse and manage risks retrospectively and prospectively. Our business involves a diverse range of different risk types, so we employ specialists to identify and manage them.
We regularly validate our risk profile on all levels of the hierarchy and hold discussions in specially instituted committees with members of the Management Board. We draw on internal and external sources to obtain a complete picture of our risk situation. We regularly check for new threats 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-bearing capacity is a significant central component of our business planning and sets out the necessary framework within which we can achieve our strategic goals. We achieve our goal of sustainable value creation by regularly evaluating our need for risk and checking it against our capacity to bear it.
Our risk decisions centre on our "economic capital model" (ECM), which we use to quantify our risks and determine economic capital. The ECM is based on the standard model according to Solvency II, supplemented with our own risk assessment. This is expressed in the quantification of the risks from the non-life sectors, where we use a stochastic cash flow model, additional capital requirements of government bonds and a valuation of asset-backed securities in greater keeping with the market.
Based on this model, we are aiming for excess cover of the quantifiable risks of over 150 per cent for 2015. In the medium term, we are targeting excess cover of roughly 170 per cent. In our view, this guarantees a sufficient buffer for us to remain on track even after extreme events.
We are also looking for external confirmation of our course. Standard & Poor's gives us a credit rating of A-. One of our central targets is to keep the rating at least at this level or to improve it if possible.
Non-quantifiable risks, especially operations risks, litigation risks and strategic risks are assessed in the risk assessment process and by means of scenario planning. When required, risk mitigation measures are taken on the basis of this assessment.
Our risk strategy defines which risks we assume and which we want to avoid. As part of our strategy process, we define our risk appetite on the basis of our risk-bearing capacity. From this we derive tolerances and operational limits that provide us with an early warning system sufficient for us to take prompt countermeasures should we deviate from our targets. Moreover, we also consider risks outside of our defined appetite. Although there is no appetite for reputation risk, we are aware that we bear a risk in this regard and take measures to mitigate or control it.
We focus on risks that we understand and can manage actively. We part with investments whose business principle does not fit with our core business. We knowingly take risks from life, health and non-life actuarial practice in order to generate our income from our core business in a targeted manner. We work on a balanced mix of risks to achieve the strongest possible diversification effects.
In addition, we set ourselves clear goals that ensure us an adequate level of risk in relation to our business strategy.
We analyse our profit and the underlying risk and optimise our portfolio with regard to value-orientated principles. We thus aim for a balanced ratio of risk to profit.
Our risk analyses are highly significant for the development of our business strategy. For example, we are reducing our risk for the current low-interest phase by optimising our products from the life sector with regard to mortality risk. Our unit-linked products are also strengthened as a result of our analyses.
We implement measures to reduce and avoid risks. Some of these are:
• We have implemented stringent acceptance procedures for the introduction of new insurance products. New life and property insurance products are tested for impairment using actuarial methods. We thus guarantee sustainable value creation for our company.
We have valid guidelines on the underwriting of private customers and corporate business. We thus control an adequate risk selection and promote understanding of our risk strategy among our employees.
Risk also means opportunity. We have taken this old wisdom particularly to heart. In our processes, we constantly examine whether the results of the risk evaluation allow new lines of business to be tapped into, risk-mitigation measures to be developed or advantages to be gained in general. Offensive and defensive strategy are closely linked for us.
In order to be equipped for all future challenges, our actuarial models, data warehouse solutions and investment management tools are kept constantly up to date.
We can thus develop and advance our products and innovations with the aid of cutting-edge technology.
We regularly analyse trends, risks and phenomena that influence our society and thus our customers and ourselves. We involve our employees in the whole company in order to identify and analyse trends early and to develop suitable measures and innovations.
We are certain that we are taking the right course. However, we also know that we are working in a volatile environment, which can lead to rapid changes in the overall conditions. In order not to be knocked off course, we set standards with our risk management and risk strategy. We can thus look confidently into the future and keep the promise we made to our customers, our shareholders and our employees.
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 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 Group Risk Management Guidelines, a set of Risk Management 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.
These 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 enshrine risk management in everyday business activities. Very extensive information and training measures have therefore been implemented since 2012, which will be continued in 2014 and extended to further target groups.
The detailed set-up of the risk management process and organisational structure is set out in the UNIQA Group's Risk Management Guidelines. These reflect the principles of "three lines of defence" and the clear differences between the individual "lines of defence".
Those responsible for business activities must build up and embody a reasonable monitoring environment to identify and monitor the risks that arise in connection with the business and the processes.
The risk management function and the supervisory functions, such as controlling, must monitor business activities without encroaching on operational activities.
This enables an independent review of the formation and effectiveness of the entire internal control system, which comprises risk management and compliance (e.g. internal auditing).
The following describes the organisational structure and the most essential process responsibilities within the UNIQA Group. Functional tasks and obligations are described precisely in the Risk Management Guidelines.
*Internal control system
The UNIQA Group Management Board is responsible for establishing business policy targets.
The Chief Risk Officer (CRO) function has its own department on the Management Board of the holding company. This ensures that the topic of risk management is represented on the Management Board. In his risk management activities, the CRO is supported in the implementation and fulfilment of his duties in particular by the departments of risk management & internal control system, market risk management, and value-based management & compliance.
Furthermore, CRO and risk manager functions were also established at Management Board level in the operative insurance companies. This ensures a continuous and uniform risk management system within the Group.
The risk management committees constitute a central element in the risk management organisation, at both Group level and in every UNIQA company. The risk management committee is the management body for controlling and both short- and long-term steering of the risk profile for UNIQA companies. The risk management committee establishes the risk strategy, monitors and steers compliance with risk-bearing capacity and limits and therefore plays a central role in the UNIQA Group's risk management system steering process.
The Supervisory Board of the UNIQA Group is informed in depth of the preparation of the risk report at Supervisory Board meetings.
The UNIQA Group's risk management process (UNIQA ORSA process) delivers periodic information about the risk profile and enables the top management to make the right 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 process as possible, parallel different approaches are used, and all risk categories, subsidiaries, processes and systems are included
The risk categories of market risk, actuarial risks, 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 (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 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 causes a short-term or medium-term effect on the Group profit, solvency position or sustainability. The scenario is formulated in accordance with its expression (e.g. the start of Greek insolvency) and evaluated in terms of its financial effect on the UNIQA Group. The likelihood that the scenario will actually occur is also considered.
These scenarios are developed, assessed and constantly monitored by the experts in the UNIQA risk management department. Risk mitigation measures are taken on a proactive basis for potential threats.
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 purpose of which is to reduce the level of solvency coverage 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.
The interim guideline FLOAR (Forward Looking Own Assessment of Risk) is being implemented in all EU countries in 2014 and introduces the Own Risk and Solvency Assessment process to the European Union's insurance companies. In Austria, this interim guideline will be incorporated into the Insurance Supervisory Act by way of an amendment (expected 1 July 2014) and is thus legally binding.
As part of the ORSA process, the business strategy process is linked with the risk management process and the capital management process.
Major components of the ORSA process are
In 2013, the UNIQA Group developed the corresponding process model and the required tools, which will be rolled out to the Group subsidiaries in 2014. The processes are described in the UNIQA Group's ORSA policy.
A major factor when this was being conceived was to rely on existing process elements in order to make use of company processes that function well. Therefore, the existing planning process was used as a supporting process and synchronised with the existing risk management process. The comprehensive rollout of the process with an extensive information initiative is planned for 2014.
A major success factor for a functioning Group-wide risk management framework is a good understanding of the objectives and effects of the risk management approach on the UNIQA Group. For this purpose, a comprehensive training programme was launched for top management, management and employees in key functions.
It deals with the regulatory framework of Solvency II, internal risk management governance and its processes, the calculation methods and their effects on the business model, IFRS accounting issues, the essentials of rating and reservation, and compliance issues.
Furthermore, a risk management case designed especially for the training programme is simulated.
Training the Supervisory Board of the UNIQA Group is a high priority, so that the members of the Supervisory Board are informed of the ongoing developments in the management approach (economic management) and can consider these developments while performing their supervisory function. These include the issues of "embedded value", the UNIQA Group's capital model and economic management indicators.
Implementing a Group-wide internal control system was a major project for the risk management process in 2013.
In addition to prudential requirements, the UNIQA Group places a particularly high value on transparent and efficient processes, which are a prerequisite for attaining the strategic goals defined in the course of the UNIQA Group's reorientation.
The ICS guidelines, which were adopted at both the Group and company level in 2013, define the minimum requirements of an internal control system in terms of methods and scope. Central elements of these guidelines are in accordance with the framework that was developed by COSO ("Committee of Sponsoring Organizations of the Treadway Commission").
The internal control system was implemented in accordance with the ICS guidelines for the following core processes (and their sub-processes):
The objective is to recognise in a timely manner risks that can occur during a process and prevent them. After the risk identification phase, key controls should be defined for all major risks, and these controls should reduce or eliminate risks. In addition to accounting processes, in which we want to minimise the risk of errors in the consolidated statements by means of appropriate controls, we also place great emphasis on error-free process procedures from the core business.
In terms of accounting processes, an ICS process has been defined and in operation since 2009. The goal of the accounting process internal control system is to implement controls to
ensure that a proper report can be reliably produced despite the identified risks. Operational and litigation risks are prevented or considerably reduced using the internal control system according to the UNIQA Group's ICS framework. In order to guarantee a higher security level, a standardised internal control system has also been set up for the upstream processes.
The accounting process of the UNIQA Group is standardised throughout the Group. Compliance guidelines, operational organisation manuals, balance sheet and consolidation manuals exist to ensure a reliable process. Processing is largely centralised for domestic affiliated companies. For international Group companies, the accounting process is largely decentralised.
An inventory of the existing risks was taken and appropriate monitoring measures were defined for the identification of existing risks. The most important checks were defined in guidelines and instructions and coupled with an authorisation concept. The checks cover both manual coordination and reconciliation routines as well as acceptance inspections of system configurations for connected IT systems. Identified risks and weak points in monitoring the accounting process are reported quickly to management so that corrective measures can be taken. The procedure for identifying and monitoring the risks is regularly evaluated by an independent, external consultant.
According to Article 41 (1) Solvency II, every insurance company must have an effective governance system that guarantees sound and careful management of the business. This system entails at least an appropriate, transparent organisational structure with a clear allocation and appropriate separation of responsibilities and an effective information system.
In order to satisfy the many-faceted requirements of Solvency II regarding the governance system, UNIQA developed the governance model as a first step in 2012. The model consolidates major governance principles and clearly defines the competencies and responsibilities of individual executive bodies in the process of making decisions on major issues by applying a clearly structured decision matrix. This model applies to Austrian companies. In 2013, the UNIQA Group's governance model was reviewed for the first time after a year of effective application. This review detected potential for improvement in some areas. These improvements will be included in the new version of the governance model, which is planned for 2014.
The extension of the governance model to UNIQA subsidiaries began in 2013. At the same time, a separate governance model is being prepared for all foreign subsidiaries, which anchors general governance principles in the particular attributes of the individual countries. In autumn 2013, two countries had the opportunity to examine the prescribed international governance model in a test phase and to comment on the content. The countries' input was discussed in detail with the Uniqa International working group and incorporated into the initial version of the model.
In the second half of 2013, the Group Compliance department began setting up and harmonising the compliance structures abroad. The goal is to establish a standard set of specifications and guidelines within the Group.
As a first step, local compliance officers were appointed in all subsidiaries. After creating this structure, the compliance risks of individual countries must be identified and assessed. A lean central structure to create the necessary tools and processes helps to prepare the organisation of UNIQA accordingly.
In 2013, the ALM process and the associated governance were enhanced. Further improvements were made, in particular regarding capital allocation to various sub-risks in the context of market and credit risk and regarding the measurement of capacity utilisation. A central ALM authority was established for all subsidiaries.
In addition, the models developed in 2012 to measure capital requirements were finally implemented or automated. This enabled regular/in-year depiction of the risk profile and limits based thereon. In connection with developments regarding evaluation (especially of complex financial instruments), important measures were implemented for the better, more transparent presentation of the current financial risk situation. It is managed on the basis of risk capital consumption and associated limits, which enables strategic decisions on the basis of the valueoriented risk/return analysis.
The Group guidelines introduced in the last two years on standardised and mandatory profitability analyses, especially regarding life insurance and the motor vehicle sectors of property and casualty insurance, were implemented consistently in 2013 and have increased in importance in the product acceptance process. The target of high coverage of new tariffs was achieved in particular for the motor vehicle sectors, which were included in the analysis for the first time in 2013. In addition, clear improvements were made to profitability, primarily in life insurance, where the process is already established. As a next step, the minimum profitability requirement will be raised in 2014 and 2015.
The implemented actuarial monitoring was enhanced in 2013, especially with regard to the increase of data quality and automation of the resulting reports. The two core analyses – sourceof-profit analysis for life insurance and detailed analysis of settlement results in property and casualty insurance – are included in excerpts in corresponding committee meetings and decision-making processes.
In 2013, one focus was bolstering expertise on the issue of natural hazard models. The mediumterm priority in this segment is to establish and communicate in-depth knowledge of the structure and operation of individual natural hazard models, to develop validation methods at both market and company level, to improve the quality of input data on an individual company basis, and to prepare a training plan for the UNIQA Group companies.
The first internally generated documents with basic knowledge regarding individual natural hazards were compiled in 2013. In addition, a database structure was developed, which will include standardised technical specifications for each natural hazard model relevant to the Group. There are also initial plans for detailed model evaluations, which are already being implemented at the moment. The targeted deployment and management of the external service providers consulted on this are also the responsibility of this segment at UNIQA Re AG.
A constant decline in the interest rate curve has been observed since 2009. This effect has had a particularly severe impact on life insurance. Depending on the investment strategy adopted, these persistently low interest rates may lead to a situation where the income generated is not sufficient to finance policyholders' guarantees. The issue of low interest rates is currently affecting the entire European insurance industry, which is resulting in scrutiny and possibly a reassessment of the current life product landscape. A central topic of the discussion is options and guarantees that customers receive. For the insurance industry this raises the question of sustainable financing for these options and guarantees. As a significant measure in the context of the defined life strategy, the UNIQA Group has begun to focus on implementing the ALM approach including stringent management rules (e.g. management of profit participation) and on aligning the new business strategy regarding personal insurance accompanied by continual portfolio management.
The strained economic situation in Europe and especially the euro zone as a result of the financial crisis is currently picking up, which is having a corresponding positive effect on the economic development of the countries in Central and Eastern Europe. This trend is reflected in the good growth rates in the countries of this region, which are above those of Western Europe. As many trading partners based in the euro zone have overcome the financial crisis and regained their former strength, Central and Eastern European countries are reporting very good export performance. This is making a significant contribution to their economic upturn. Not every country, however, successfully escaped recession this year. But due to the much higher forecast GDP growth rates for the entire CEE region in 2014, a positive trend has been identified for these countries too.
A similar development is expected in the CEE insurance market. In 2013, only moderate premium growth was recorded in this region. Premiums fell in the region as a whole, especially in life insurance, which is attributable to a substantial downturn in single premiums in Poland. After this disagreeable development last year, expectations for a higher premium volume in 2014 remain dampened. In contrast, the non-life segment looked back at a growing market, but failed to meet expectations in terms of growth rates. One reason for this development is the fierce price competition dominating the motor vehicle and property sectors in many countries. This meant that less income was generated from premiums. For 2014, the price pressure will remain a challenge for the UNIQA Group.
The rollout and implementation of the interim guidelines on Solvency II is one of the greatest operational challenges in 2014. The new regime affects insurance companies, supervisory authorities, customers and other stakeholders. How to deal with the new standards will have to be trained intensively over the next few years in order to prevent any misinterpretations or impetus to mismanagement. Communication of the major KPIs to specific target groups and a transparent explanation of their interrelationships is a major success factor.
On the basis of the current supervisory requirements, the available equity and risk capital requirements are calculated according to Solvency I.
As soon as Solvency II takes effect, the definition and calculation of available equity, capital requirements and management will be replaced by the standards of Solvency II.
The solvency ratio based on supervisory provisions was 287.1 per cent as at 31 December 2013. Eligible equity amounted to € 3,290.2 million, which includes 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 was € 1,145.9 million. The supervisory and internal minimum capitalisation of 135.0 per cent has therefore been surpassed considerably.
Risk capital requirements and available equity are currently calculated according to Solvency I regulations. These will be replaced when the Solvency II provisions become effective. In order to guarantee a smooth transition between these two different calculation methods, the UNIQA Group has performed parallel calculations since 2008. A 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 excessive coverage of quantifiable risks with eligible equity is soon to amount to at least 150 per cent. In the long term, excess coverage of up to 170 per cent is to be achieved.
On 30 June 2013, and therefore before the placement of the supplementary capital bond in July 2013 and the capital increase in October 2013, the solvency ratio according to the ECM was 118.7 per cent. Taking into account the capital increase and the supplementary capital of € 150.0 million, the "pro forma solvency ratio" is 149.9 per cent. Further details can be found in the ECM report (from May 2014).
In addition to regulatory and internal provisions, capital requirements of an external rating agency are also considered in order to present creditworthiness objectively/make it comparable. Therefore, the UNIQA Group is regularly rated by the rating agency Standard & Poor's. In October 2013, the latter upgraded the UNIQA Group's rating to "A-" and those of UNIQA Österreich Versicherungen AG and UNIQA Re AG to "A", each with a stable outlook. At the same time, the rating of the hybrid capital bond issued by UNIQA in July this year was raised a notch to "BBB". The UNIQA Group considers the effects on its rating in its capital planning process with the aim of improving it in future.
UNIQA operates the purely quantitative rating model of Standard & Poor's independently. The firm goal is to hold a minimum rating of "AA" mathematically.
The methods of the internal ECM model are used to determine the risk profile in the UNIQA Group. The last assessment produced the following risk profile for the UNIQA Group:
The risk profile of the UNIQA Group is very strongly influenced by life insurance and health insurance holdings in the Austrian life and health insurance companies UNIQA Österreich and Raiffeisen Versicherung. 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 businesses in the property and casualty segment and the life and health insurance segment.
In the Southeastern European (SEE) and Eastern European (EE) regions, insurance business is currently primarily in the property and casualty segment and particularly in motor vehicle insurance.
This situation is important to the UNIQA Group because it creates a high level of diversification for the life and health insurance lines, which are dominated by the Austrian companies.
The risk-specific particularities of the regions are also manifested in the risk profiles ascertained by the internal measurement approach.
After every calculation for life, non-life and composite insurers in the UNIQA Group, reference profiles are created and compared with the risk profile for the respective companies.
The reference profiles show that, for composite insurers, the relationship between market and actuarial risk is balanced. In addition, the highest diversification effect was achieved among the composite insurers.
Market risk is powerfully influenced by the risk of changing interest rates, particularly in the life insurance line. This is primarily the result of different terms of assets and liabilities. The course has already been successfully set for a substantial reduction of the interest rate risk by establishing an ALM process and implementing an ALM-based asset allocation. The measures taken in 2013 have already significantly reduced the interest rate risk and the strategic decisions for 2014 intend to make further improvements in this area.
Spread risk represents another major risk. This is the risk of price volatility due to changes in credit risk premiums. On the basis of equity requirements under Solvency II, structured securitisations constitute a particularly significant risk. In the case of bonds, it is primarily securities with lower ratings and longer durations that contribute to a heightened spread risk. The implemented ALM processes and the liability-driven investment approach are associated with a partial increase in spread risk in addition to the significant reduction of the interest rate risk. This is managed actively on the basis of the available market risk management tools in the context of risk-bearing capacity and included in the decision-making and management.
The UNIQA Group's share risk was greatly reduced because of the reduction in asset classes such as hedge funds and private equity and now plays a more superordinate role similar to currency and concentration risk.
Several measures were implemented in previous years with regard to the methods and processes for managing these risks. These included the introduction of quarterly ALM committee meetings at the top management level, the restructuring and continuous development of investment limits, the improvement of existing market and credit risk models and their automation.
Interest risk: due to the investment structure and the high proportion of interest-bearing titles, the interest rate risk forms a very important component of the financial risks. The following table shows the interest-bearing securities and the average interest coupons arranged by the most important investment categories and their average coupon interest rate on the reporting date.
| average interest coupon | EUR | USD | Other | |||
|---|---|---|---|---|---|---|
| Figures in per cent | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 |
| Fixed interest securities | ||||||
| High-grade bonds | 3.1 | 3.4 | 3.8 | 3.1 | 4.8 | 5.2 |
| Bank/company bonds | 3.4 | 3.7 | 5.4 | 5.2 | 4.5 | 4.1 |
| Emerging markets bonds | 3.7 | 5.6 | 6.3 | |||
| High-yield bonds | 7.5 | 5.3 | 4.5 | |||
| Other investments | 3.1 | 3.1 | 2.3 | 2.4 | 0.0 | 1.6 |
Insurance policies with guaranteed interest and additional profit sharing contain the risk that the guaranteed interest rate will not be achieved over a sustained period of time. Capital income produced over and above the guaranteed interest rate will be shared between the policyholder and the insurance company, with the policyholder receiving an appropriate share of the profit. The following table shows the comparison of assets and debts for such insurance policies.
| Investments for long-term life insurance policies with guaranteed interest and profit sharing |
31.12.2013 | 31.12.2012 |
|---|---|---|
| Figures in € thousand | ||
| Annuities | 11,692,539 | 10,492,471 |
| Shares | 209,640 | 393,948 |
| Alternatives | 51,851 | 506,641 |
| Holdings | 389,504 | 397,019 |
| Loans | 693,791 | 781,614 |
| Real estate | 1,262,475 | 1,292,474 |
| Liquidity | 769,876 | 1,192,161 |
| Deposits receivable | 124,163 | 128,078 |
| Total | 15,193,839 | 15,184,406 |
| Difference between book value and market value | ||
| Real estate | 561,033 | 489,308 |
| Loans | 19,869 | 15,277 |
| Provisions and liabilities from long-term life insurance policies with guaranteed interest and profit sharing Figures in € thousand |
31.12.2013 | 31.12.2012 |
| Actuarial provision | 13,656,600 | 13,493,296 |
| Provision for profit-unrelated premium refunds | 2,723 | 2,388 |
| Provision for profit-related premium refunds, i.e. policyholder profit sharing | 289,855 | 511,310 |
| Other technical provisions | 26,347 | 25,563 |
| Provision for outstanding claims | 132,429 | 129,117 |
| Deposits payable | 405,528 | 426,886 |
| Total | 14,513,483 | 14,588,559 |
The following table shows the structure of the remaining terms of interest-bearing securities and loans.
| Remaining term | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Figures in € thousand | ||
| Up to 1 year | 1,534,645 | 861,944 |
| Of more than 1 year up to 3 years | 1,456,554 | 1,503,088 |
| Of more than 3 years up to 5 years | 1,791,829 | 2,225,739 |
| Of more than 5 years up to 7 years | 1,125,538 | 1,381,584 |
| Of more than 7 years up to 10 years | 2,048,289 | 3,112,406 |
| Of more than 10 years up to 15 years | 1,383,222 | 864,415 |
| More than 15 years | 3,046,253 | 1,324,909 |
| Total | 12,386,330 | 11,274,086 |
In the segment of unit-linked and index-linked life insurance, the interest income and all fluctuations in value of the dedicated investments are reflected in the technical provisions. There is therefore no financial risk from the point of view of the insurer. The following table shows the investment structure of financial investments that are used to cover the technical provisions arising from unit-linked and index-linked life insurance policies.
| Total | 5,381,201 | 5,066,828 |
|---|---|---|
| Other investments | 91,811 | 84,145 |
| Liquidity | 99,776 | 66,904 |
| Bond funds | 4,040,844 | 3,846,087 |
| Share-based funds | 1,148,769 | 1,069,691 |
| Investments in unit-linked and index-linked life insurance policies Figures in € thousand |
31.12.2013 | 31.12.2012 |
The actuarial interest rate for the actuarial provision in health insurance lines, which is selected depending on the type of life insurance, is 3.0 per cent. However, this interest rate is not guaranteed and can, upon presentation of proof to the insurance supervisory authority, be reduced to any lower capital income that may be expected. The following table shows the investment structure available to cover insurance liabilities.
| Investments for long-term health insurance policies Figures in € thousand |
31.12.2013 | 31.12.2012 |
|---|---|---|
| Annuities | 1,759,068 | 1,466,342 |
| Shares | 39,044 | 38,076 |
| Alternatives | 5,564 | 92,450 |
| Holdings | 200,575 | 201,955 |
| Loans | 176,935 | 193,036 |
| Real estate | 299,113 | 311,661 |
| Liquidity | 268,565 | 188,717 |
| Total | 2,748,864 | 2,492,237 |
| Difference between book value and market value | ||
| Real estate | 81,824 | 86,477 |
| Loans | –24,821 | 6,106 |
| Provisions and liabilities from long-term health insurance policies Figures in € thousand |
31.12.2013 | 31.12.2012 |
|---|---|---|
| Actuarial provision | 2,326,671 | 2,218,575 |
| Provision for profit-unrelated premium refunds | 10,108 | 10,298 |
| Provision for profit-related premium refunds, i.e. policyholder profit sharing | 44,319 | 43,927 |
| Other technical provisions | 806 | 885 |
| Provision for unearned premiums | 17,362 | 20,395 |
| Provision for outstanding claims | 169,756 | 168,322 |
| Deposits payable | 985 | 1,091 |
| Total | 2,570,006 | 2,463,495 |
Most property and casualty insurance policies are short-term. The technical provisions are not discounted, meaning that no interest is calculated for the short-term investment. The average terms of interest-bearing securities and loans invested to cover technical provisions are shown in the following table.
| Remaining term Figures in € thousand |
31.12.2013 | 31.12.2012 |
|---|---|---|
| Up to 1 year | 601,828 | 325,267 |
| Of more than 1 year up to 3 years | 448,551 | 506,506 |
| Of more than 3 years up to 5 years | 375,405 | 446,859 |
| Of more than 5 years up to 7 years | 298,517 | 266,051 |
| Of more than 7 years up to 10 years | 243,908 | 372,516 |
| Of more than 10 years up to 15 years | 95,876 | 72,932 |
| More than 15 years | 471,277 | 146,623 |
| Total | 2,535,362 | 2,136,754 |
When investing in securities, we invest in debt securities of varying quality, taking into consideration the yield prospects and risks. The following table shows the quality structure of fixed-interest investments.
| Rating Figures in € thousand |
31.12.2013 | 31.12.2012 |
|---|---|---|
| AAA | 4,569,254 | 4,072,974 |
| AA | 2,837,120 | 2,528,971 |
| A | 3,519,567 | 3,137,296 |
| BBB | 3,713,019 | 3,309,737 |
| BB | 963,252 | 858,631 |
| B | 615,865 | 548,974 |
| CCC | 113,790 | 101,431 |
| Not rated | 369,076 | 328,990 |
| Total | 16,700,944 | 14,887,004 |
The values as at 31 December 2013 include the securities reclassified to the category of loans with a value of € 788,061 thousand (2012: € 906,435 thousand).
When investing in stock markets, the risk is diversified by using various management styles (total return approach, benchmark-oriented approach, value growth approach and industryand region-specific and fundamental title selection). For the purpose of securing the investment, the effective investment ratio is controlled through the use of derivative financial instruments. The following table shows the investment structure of the share portfolios by asset classes.
| Share portfolio composition Figures in € thousand |
31.12.2013 | 31.12.2012 |
|---|---|---|
| Shares in Europe | 313,384 | 391,321 |
| Shares in America | 62,511 | 26,964 |
| Shares in Asia | 40,267 | 9,091 |
| Shares international1) | 3,556 | 18,224 |
| Shares in emerging markets | 7,393 | 10,270 |
| Shares total return2) | 15,486 | 179,200 |
| Other shares | 28,840 | 17,532 |
| Total | 471,437 | 652,603 |
1) Share-based funds with globally diversified investments.
2) Share-based funds with the management goal of achieving an absolute return by including less risky investments (liquidity, bonds) in difficult market phases.
The UNIQA Group invests in securities in a wide range of currencies. Although the insurance business is operated in different countries, the foreign currency risks of the investments do not always correspond to the currency risks of the technical provisions and liabilities. Investments in US dollars bring about the greatest amount at risk. The following table shows a breakdown of assets and debts by currency.
| 31.12.2013 | EUR | USD | Other | Total |
|---|---|---|---|---|
| Figures in € thousand | ||||
| Assets | ||||
| Investments | 23,676,605 | 1,805,019 | 1,902,025 | 27,383,649 |
| Other tangible assets | 70,320 | 17,836 | 88,156 | |
| Intangible assets | 1,303,297 | 159,233 | 1,462,530 | |
| Share of reinsurance in the technical provisions | 909,780 | 32,678 | 942,458 | |
| Other assets | 960,261 | 231,582 | 1,191,842 | |
| Total | 26,920,262 | 1,805,019 | 2,343,353 | 31,068,634 |
| Provisions and liabilities | ||||
| Subordinated liabilities | 600,000 | 0 | 600,000 | |
| Technical provisions | 23,213,343 | 1,912,992 | 25,126,335 | |
| Other provisions | 820,804 | 15,876 | 836,681 | |
| Liabilities | 1,569,638 | 146,053 | 1,715,691 | |
| Total | 26,203,786 | 0 | 2,074,921 | 28,278,707 |
| 31.12.2012 Figures in € thousand |
EUR | USD | Other | Total |
| Assets | ||||
| Investments | 23,863,863 | 444,210 | 2,017,941 | 26,326,015 |
| Other tangible assets | 90,682 | 21,922 | 112,604 | |
| Intangible assets | 1,271,890 | 145,835 | 1,417,725 | |
| Share of reinsurance in the technical provisions | 945,169 | 69,495 | 1,014,665 | |
| Other assets | 894,620 | 288,926 | 1,183,546 | |
| Total | 27,066,224 | 444,210 | 2,544,119 | 30,054,554 |
| Provisions and liabilities | ||||
| Subordinated liabilities | 450,000 | 0 | 450,000 | |
| Technical provisions | 22,931,199 | 1,842,751 | 24,773,950 | |
| Other provisions | 844,174 | 26,835 | 871,009 | |
| Liabilities | 1,747,899 | 181,744 | 1,929,644 | |
| Total | 25,973,272 | 0 | 2,051,331 | 28,024,603 |
The fair value of securities investments in US dollars amounted to € 1,805 million as at 31 December 2013 (2012: € 2,176 million). The exchange rate risk decreased through derivative financial instruments to € 355 million (2012: € 444 million), and the hedging ratio was 80 per cent (2012: 61.6 per cent). This decline is based on a deliberate reduction of the foreign currency risk.
As the UNIQA Group is required to satisfy its payment obligations on a daily basis, a precise liquidity schedule is prepared for a period of one year. A minimum liquidity holding is defined by the Management Board and made available as a cash reserve on a daily basis.
In addition, the majority of the securities portfolio is listed on liquid stock exchanges and can be sold quickly in the case of liquidity burdens without significant liquidity deductions. When the remaining maturities stipulated by contract for investing fixed-interest securities (see Notes number 9) are chosen, the existing remaining contractual maturities (see 4.2.1 Interest rate risk) are taken into consideration in the various business segments.
Additional payment obligations exist for private equity investments in the amount of € 1.0 million (2012: € 61.0 million).
Market and credit risk management is a fixed component in the structured investment process. In particular, stress tests and sensitivity analyses are used as key figures for measuring, observing and actively controlling the risk in addition to the established market and credit risk models (SCR, ECR, etc.).
The table below shows the most important market risks in the form of key sensitivity figures; the information is presented as available on the reporting date, meaning that only rough figures can be offered for future losses of fair value. Depending on the assessment principle to be applied, if there are any future fair value losses, they can lead to different fluctuations in equity that are with or without an effect on the income statement. 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 counter-controlled measures taken in the various market scenarios.
| 31.12.2013 | 31.12.2012 | ||
|---|---|---|---|
| –669,323 | 746,714 | –494,579 | 566,752 |
| –128,246 | 128,288 | –92,036 | 99,447 |
| –59,715 | 66,150 | ||
| –40,717 | 54,234 | –1,575 | 1,728 |
| –838,286 | 929,236 | –647,905 | 734,077 |
| 31.12.2013 | 31.12.2012 | ||
| 10% | –10% | 10% | –10% |
| 30,930 | –30,930 | 28,359 | –28,364 |
| 6,213 | –6,166 | 3,405 | –3,405 |
| 3,145 | –3,145 | ||
| 135 | –135 | ||
| 2,911 | –2,911 | ||
| 1,515 | –1,515 | ||
| 11,639 | –11,862 | 195 | –195 |
| 48,782 | –48,958 | 39,665 | –39,671 |
| 31.12.2012 | |||
| 10% | –10% | 10% | –10% |
| 0 | 0 | 0 | 0 |
| 33,794 | –33,740 | 44,390 | –44,390 |
| 75,787 | –76,061 | 159,981 | –159,981 |
| 109,582 | –109,801 | 204,371 | –204,371 |
| 31.12.2013 | +100 basis points –100 basis points +100 basis points –100 basis points |
| Credit risk | 31.12.2013 | 31.12.2012 | |||
|---|---|---|---|---|---|
| Figures in € thousand | + | – | + | – | |
| AAA | 0 basis points | 0 | 0 | 0 | 0 |
| AA | 25 basis points | –51,287 | 53,207 | –23,691 | 24,314 |
| A | 50 basis points | –64,108 | 66,281 | –72,696 | 76,358 |
| BAA | 75 basis points | –161,979 | 182,828 | –99,814 | 107,158 |
| BA | 100 basis points | –29,373 | 31,249 | –26,255 | 28,594 |
| B | 125 basis points | –9,622 | –437 | –16,613 | 18,580 |
| CAA | 150 basis points | 16,910 | 26,417 | –1,771 | 2,740 |
| Not rated | 100 basis points | 50,247 | –8,902 | 1,006 | 24,324 |
| Total | –249,213 | 350,644 | –239,834 | 282,069 |
The overall market risk of the investment portfolio is determined on the basis of the value-atrisk approach. The key figure is calculated for a confidence interval of 95.0 per cent and a holding term of one year. The basic data is in the form of historical figures from the last calendar year with a balancing of the individual values (decay factor of 1).
The following table shows the key value-at-risk figures for the last financial year as reporting date values, annual average and maxima/minima for the year.
| Value at Risk Figures in € thousand |
Total value at risk | Equity risk | Currency risk | Interest rate risk | Diversification |
|---|---|---|---|---|---|
| 31.12.2013 | 1,014,436 | 56,835 | 227,817 | 1,010,510 | –280,726 |
| 31.12.2012 | 959,523 | 236,108 | 219,466 | 940,800 | –436,851 |
| Lowest | 917,218 | 56,835 | 227,817 | 912,696 | –200,441 |
| Average | 963,689 | 158,914 | 288,175 | 952,190 | –334,034 |
| Highest | 1,014,436 | 242,528 | 365,953 | 1,010,510 | –610,148 |
The UNIQA Group held 1.8 per cent (2012: 2.3 per cent) of its investments in Asset-Backed Securities (ABS). Model risks are associated with the valuation of ABS securities.
The securities held in the direct portfolio and fund portfolio are mostly valued using a markto-model method.
The individual transactions vary with regard to structure, risk profile, interest claims, rating and other parameters.
Direct transfer of such prices does not appropriately take into account either the complexity or the heterogeneity of the different structures. For these reasons, UNIQA has decided to set the fair value of the specified papers by means of a model approach.
ABS papers are noted for being highly complex and are therefore extensively documented. Due to its longstanding activity in the area of securitisation, UNIQA has developed various models on its own or with others that permit high-quality analyses at acceptable expense.
The main parameters of the model for assessing the value of ABS are estimates of the future development of the (financial) economic environment, especially the speed of repayment, the failure frequency, the failure severity and the discount rate.
All parameters refer to the assets used to collateralise the transaction, i.e. to the corporate credits, bonds, preferential shares, etc. The future payments are calculated using external forecasts for failure rates. The modelling system of Moody's Analytics, which represents a widely accepted market standard, serves as the basis for the analysis. UNIQA now uses the forecasts of Moody's Investors Service for forecasting the failure rates of companies. These forecasts encompass a period of five years each. Other parameters besides the failure rates are calibrated with the help of the data history. Objective and predetermined values are used for the discounting.
To this extent, the losses expected by an investor on a transaction are already taken into consideration when the payment streams are generated. In order to represent an additional risk discount, a risk premium above the pure interest rate was added to the applied discount rate. This premium corresponds to the surcharge originally applied on execution of the individual transaction.
The sensitivity analysis of the ABS portfolio with regard to a rise or a fall in the failure rates in the investments underlying the ABS structures is also based on the forecast values from Moody's Investors Service.
The sensitivities for these securities subjected to model-based analysis are also determined using Moody's failure scenarios. According to Moody's, these failure scenarios correspond to the 10.0 per cent quantile or the 90.0 per cent quantile of the distribution function of the failures.
| Sensitivity analysis Figures in € million |
Upside | Downside |
|---|---|---|
| Total profit/loss | 0.3 | –2.3 |
| on P&L | 0.0 | –2.8 |
| on equity | 0.3 | 0.5 |
UNIQA has a participating interest in STRABAG SE of 14.7 per cent as at the reporting date of 31 December 2013 (31 December 2012: 14.9 per cent). Even following the re-entry of a major investor, UNIQA retained a significant influence over the business activity of STRABAG SE. UNIQA is therefore continuing the participating interest in STRABAG SE as an associated share. In the fourth quarter of 2010, purchase options were conceded to a strategic investor for an additional 1.4 million individual shares of STRABAG SE. They can be exercised between July 2012 and July 2014. In 2013, 0.2 million of these options were exercised.
The valuation on the reporting date takes place in consideration of the option agreement and the expected proportional equity on the reporting date. The current market value of the option was determined as the difference between the current book value and the price for exercising the option.
| Book value STRABAG SE Figures in € thousand |
2013 |
|---|---|
| As at 1 Jan. | 468,953 |
| Disposal | –4,017 |
| Updating affecting income1) | 20,951 |
| Updating not affecting income | –11,343 |
| Dividends | –3,136 |
| As at 31 Dec. | 471,407 |
| Value in € per share | 28.1 |
1) The estimate for the as-yet-unpublished 4th quarter of 2013 was also worked on during the financial year.
In mid-March 2014, the Austrian federal government announced that the nationalised Hypo Alpe Adria bank is to be wound down via a "bad bank". A default on the part of the bank has been ruled out of the time being. Currently, the impact of this solution on bonds held by UNIQA cannot be reliably estimated, as information on any involvement of government- or stateguaranteed bonds is pending both politically and legally.
| Collateralisation Figures in € thousand |
market value | book value IFRS |
|---|---|---|
| federal guarantee | 13,549 | 13,549 |
| guarantee of province | 52,215 | 52,720 |
| no guarantee | 1,000 | 1,000 |
| total | 66,765 | 67,269 |
Shown excluding liquidity.
The current political uncertainty in Ukraine due to the fall of the government and the dispute with Russia over Crimea partially puts the further servicing of government debts into doubt. In early March 2014, the European Union held out the prospect of assisting Ukraine with up to € 11 billion. This would mean all payments from government bonds could be serviced in 2014. The relatively low exposure to Ukrainian government bonds is also due to the fact that high liquidity holdings are held in UNIQA's Ukrainian subsidiaries because of the uncertainty/poor rating of the government bonds.
| Ukraine | Market | IFRS book |
|---|---|---|
| Figures in € thousand | values | value |
| Ukrainian government bonds | 9.958 | 9.958 |
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. A partial dependence therefore exists between the growth of assets and liabilities from insurance policies. 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 aim is to achieve a return on capital that is sustainably higher than the updating of the technical liabilities while retaining the greatest possible security. Here, assets and debts are allocated to different accounting groups. The following table shows the main accounting groups generated by the various product categories.
| Investments 31.12.2013 Figures in € thousand |
31.12.2012 |
|---|---|
| Long-term life insurance policies with guaranteed interest and profit sharing 15,193,839 |
15,184,406 |
| Long-term unit-linked and index-linked life insurance policies 5,381,201 |
5,066,828 |
| Long-term health insurance policies 2,748,864 |
2,492,237 |
| Short-term property and casualty insurance policies 4,059,744 |
3,582,544 |
| Total 27,383,649 |
26,326,015 |
These values refer to the following balance sheet items:
| 31.12.2013 | 31.12.2012 |
|---|---|
| 14,513,483 | 14,588,559 |
| 5,299,625 | 4,983,029 |
| 2,570,006 | 2,463,495 |
| 2,597,934 | 2,561,018 |
| 24,981,048 | 24,596,101 |
These values refer to the following balance sheet items:
Actuarial risk in non-life includes premium, reserve and catastrophic risk. Premium risk is defined as the risk of future benefits from insured events exceeding the assumptions of the premium calculation. The result is incorrect pricing for an insurance product that leads to a loss.
The reserve risk is defined as the risk that actuarial provisions for damage claims that have already occurred were not sufficient.
Catastrophic risk is defined as the risk that financial losses may occur due to natural disaster events such as storms, hail, flooding or earthquakes. These events affect a number of policyholders at once, yet do not occur on a constant basis. These events are described as lowfrequency/high-severity claims.
The greatest actuarial risk in non-life in the Group is held by UNIQA Österreich and UNIQA RE. In CEE, SEE and EE, non-life business, particularly motor vehicle insurance, is in the foreground; this means that the actuarial risk of non-life is foremost in these companies.
A major risk for the UNIQA Group is the risk of natural disasters. Storm-related catastrophes are especially relevant for the north Austrian region and the Czech Republic.
In addition, risks of catastrophic flooding and earthquakes are of major significance for markets in Austria, Czech Republic, Poland, Hungary, Romania and Bulgaria.
This risk is managed accordingly with analyses of exposure to catastrophes and inclusion of such considerations in product and price formation, as well as the provisioning of appropriate reinsurance capacity.
Profitability in the core business is a decisive factor.
In the risk management process for actuarial risks in the non-life segment, standardised monitoring systems supervise Group risk management and Group actuarials monitor actuarial risks of premium risk and reserve risk on a periodic basis.
The Group segments for risk management and Group actuarials support the local companies by providing Group-wide standardised tools and professional training and education.
Use of the internal non-life partial model will represent an essential element in risk assessment and further risk management in the medium term. This risk model quantifies premium, reserve and catastrophic risk by means of a Monte Carlo simulation procedure. This quantification is conducted at insurance branch level (sector), at company level and Group level.
In addition to risk figures relevant for risk management, this risk model also delivers the economic earnings figures (RoRAC: Return of Risk Adjusted Capital) and an EVA (Economic Value Added), which are then indispensable for goal- and values-oriented company management.
These economic figures provide information about how much capital expenditure is necessary for the underwriting of various insurance products and how much profit is earned on the required risk capital.
The risk of an individual insurance contract lies in the occurrence of the insured event. The occurrence is considered random and therefore unpredictable. The risk in life insurance outside of Austria is of minor importance due to the low volume (approximately 20.0 per cent). Various risks exist in Austria, particularly in classic life insurance. The insurance company takes on this risk for a corresponding premium paid by the policyholder. When calculating the premium, the actuary refers to the following carefully selected bases of calculation:
Interest: the actuarial interest is set so low that it can be produced with certainty in each year. Mortality: the probabilities of dying are deliberately and carefully calculated for each type of insurance.
Costs: the costs are calculated in such a way that the costs incurred by the policy can always be covered by the premium.
The careful selection of the bases of calculation gives rise to scheduled 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:
The risks of the insurer can be roughly divided into actuarial and financial risks.
| Long-term life insurance policies with guaranteed interest and profit sharing Figures in € thousand |
31.12.2013 | 31.12.2012 |
|---|---|---|
| Austria (AT) | 11,879,899 | 12,197,791 |
| Western Europe (WE) | 2,063,940 | 1,864,220 |
| Central Europe (CE) | 287,773 | 314,393 |
| Eastern Europe (EE) | 35,019 | 18,238 |
| Southeastern Europe (SEE) | 178,614 | 152,716 |
| Russia (RU) | 68,237 | 41,200 |
| 14,513,483 | 14,588,559 | |
| Long-term unit-linked and index-linked life insurance policies Figures in € thousand |
31.12.2013 | 31.12.2012 |
| Austria (AT) | 4,335,070 | 4,050,543 |
| Western Europe (WE) | 515,550 | 564,641 |
| Central Europe (CE) | 447,808 | 366,938 |
| Eastern Europe (EE) | 0 | 0 |
| Southeastern Europe (SEE) | 1,198 | 907 |
| Russia (RU) | 0 | 0 |
| 5,299,625 | 4,983,029 |
UNIQA's portfolio consists primarily of long-term insurance policies. Short-term assurances payable at death play a minor role.
The table below shows the distribution of the total premium by rate group and region.
| Total premium in % | Endowment | Life | ||||
|---|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
| Austria (AT) | 43.9 | 38.3 | 9.0 | 7.8 | 16.1 | 13.7 |
| Western Europe (WE) | 73.3 | 76.1 | 8.5 | 7.2 | 16.5 | 16.2 |
| Central Europe (CE) | 20.5 | 25.8 | 3.2 | 4.4 | 0.2 | 0.3 |
| Southeastern Europe (SEE) | 81.7 | 83.4 | 6.6 | 6.9 | 0.4 | 0.5 |
| Eastern Europe (EE) | 49.3 | 53.3 | 21.8 | 25.5 | 0.0 | 0.0 |
| Russia (RU) | 90.9 | 89.4 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total | 46.4 | 42.4 | 8.0 | 7.4 | 13.5 | 12.4 |
| Total premium in % | Unit- and index-linked | Payment protection | Other | |||
|---|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
| Austria (AT) | 30.1 | 39.5 | 0.0 | 0.0 | 0.9 | 0.7 |
| Western Europe (WE) | 1.8 | 0.6 | 0.0 | 0.0 | 0.0 | 0.0 |
| Central Europe (CE) | 55.6 | 44.9 | 7.5 | 9.6 | 13.1 | 15.0 |
| Southeastern Europe (SEE) | 1.5 | 1.1 | 0.9 | 1.7 | 8.8 | 6.4 |
| Eastern Europe (EE) | 0.0 | 0.0 | 28.9 | 21.2 | 0.0 | 0.0 |
| Russia (RU) | 0.0 | 0.0 | 9.1 | 10.6 | 0.0 | 0.0 |
| Total | 28.7 | 35.3 | 1.1 | 0.8 | 2.3 | 1.6 |
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*
Insurance policies with an assurance character implicitly include a safety surcharge on the risk premium in that the premium calculation is based on an accounting table.
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 advancement of mortality means that the real mortality probabilities are consistently smaller than the values shown in the accounting table.
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 again and is over 80 years for newborns 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 |
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,
RU - Russia * Not included
because 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, especially in Austria, contain large portfolios of term insurance policies with a premium adjustment clause. This allows the insurer to raise the premiums in case of a (less probable) 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 reduction of mortality probabilities represents a large uncertainty for retirement annuities. The gradual advancement of mortality as a result of medical progress and changed lifestyles is virtually impossible to extrapolate.
The 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. Moreover, the past shows that the effect of these changes was seriously underestimated, which meant that subsequent reservations had to be made for retirement annuity contracts. With the exception of Austrian life insurance companies, no other relevant longevity risks exist within the UNIQA Group as barely any pension products are underwritten in regions where international business activities take place.
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. 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.
In most UNIQA companies, the actuarial interest that may be used in the calculation for writing new business is based on the maximum interest rate ordinance of the respective local supervisory authority. In any countries where the highest permitted actuarial interest is not governed by an ordinance, prudent and market-appropriate assumptions are made accordingly by the actuaries responsible. The maximum interest rate in the core market of Austria is currently 1.75 per cent per annum. However, the portfolio also contains older contracts with actuarial interest rates. These are up to 4.0 per cent per annum in the UNIQA Group's relevant markets.
| Avg. techn. interest rates, traditional business by region and currency | EUR | USD | CHF | Local currency |
|---|---|---|---|---|
| Figures in percent | ||||
| Austria (AT) | 2.6 | - | - | - |
| Western Europe (WE) | 2.5 | - | 1.9 | - |
| Central Europe (CE) | 3.8 | - | - | 3.3 |
| Southeastern Europe (SEE) | 3.3 | - | - | 3.3 |
| Eastern Europe (EE) | 2.5 | - | - | 3.5 |
| Russia (RU) | 3.0 | 3.0 | - | 4.0 |
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
Since these interest rates are guaranteed by the insurance company, the financial risk lies in not being able to generate these returns. Since classic life insurance predominantly invests in interest-bearing titles (loans, credits etc.), the unpredictability of long-term interest rate trends is the most significant financial risk for a life insurance company. The interest risk weighs especially heavily on retirement annuities, because these are extremely long-term policies.
The interest risk functions in the following ways:
Premiums received in the future must be invested at an interest rate guaranteed at the time the policy was taken out. However, it is entirely possible that no corresponding titles are available at the time the premium is received. In the same way, future income must be reinvested at the actuarial interest rate.
For practical reasons, the goal of cash flow matching of assets and liabilities cannot be fully achieved. The duration of the life insurance assets is 5.8 (2012: 5.0), while for liabilities it is considerably longer. This is called the "duration gap", which results in interest rate risk that must be backed with capital in the ECR model.
Life insurance policies contain implicit options that can be exercised by the policyholder. While the possibilities of partial or full buy-back or the partial or full release of premiums in fact represent financing options, these options are not necessarily exercised as a consequence of correct, financially rational decisions. However, in the case of a mass buy-back, for example due to an economic crisis, this represents a considerable risk to the insurance company. The question of whether a capital or an annuity option should be exercised is, in addition to subjective motives of the policyholder, also characterised by financially rational considerations; depending on the final interest level, a policyholder will opt for the capital or the annuity, which means that these options represent a considerable (cash) value for the policyholder and therefore a corresponding risk for the insurer.
The guarantee of an annuitising factor represents another financial risk. Here, the insurance company guarantees to annuitise a sum unknown in advance (namely the value of the fund shares at maturity or, for classic life insurance, the value of the insured sum including profit-sharing) in accordance with a mortality table (the risk involved is not exclusively financial) and an interest rate set at the time the policy is taken out.
Besides these actuarial and financial risks, the cost risk must also be specified. 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).
In the UNIQA Group, Market Consistent Embedded Value is calculated according to the Market Consistent Embedded Value Principles defined by the CFO Forum and according to the "Basis for Conclusions" published in October 2009. Embedded value comprises assets by fair value and the present value of the insurance business. The present value is the present value of distributable profits after taxes less cost of capital. The Market Consistent Embedded Value is an actuarial valuation of an insurance company assuming it is a going concern, explicitly excluding the value of future new business.
The assumptions underlying the projection to determine the present value are based on the best estimate approach, i.e. a realistic estimate of operating and economic assumptions on the basis of future expectations and historical observations. An embedded value calculation involves many economic and operating assumptions, which UNIQA rates as reasonable and sensible but cannot be predicted with certainty, on the basis of numerous influencing factors outside the company's control. For this reason, the actual developments can differ materially from the expected profits in the measurement of embedded value.
Shareholders' interest is calculated under consideration of all available sources of income, whereby in traditional life insurance in Austria, the profit participation regulation is paid particular attention. The most realistic possible development of future profit sharing is also assumed under the legal conditions in all other evaluated countries. The projected profits are influenced by assumptions regarding mortality, cancellation, costs, capital selection, inflation and investment income.
The assumed interest rate depends on the capital market on the measurement date and is derived via the current derivation method for yield curves under Solvency II. In order to estimate the effects of the assumed interest rate, two sensitivities of the interest rate curve were calculated in the embedded value, with +/-100 basis points being applied to the capital market data of the interest rates. For assumed interest rates according to the latest liquid market data, convergence to a long-term interest rate level of 4.2 per cent is assumed within 40 years. This corresponds with the current EIOPA standards on the derivation method for risk-free interest rates and is also applied to the sensitivity calculations, so the latter do not exclusively relate to parallel shifts of the interest rate curve.
The sensitivities indicated below relate only to those companies in the UNIQA Group that are evaluated via projections (Austria, Italy, Czech Republic, Slovakia, Hungary, Poland, Russia). As of 31 December 2013, this evaluation covers more than 98.0 per cent of the reserve of the UNIQA Group's life business. As of 31 December 2012, the sensitivities were measured excluding the Russian subsidiary:
| Sensitivities of Market Consistent Embedded Value | 2013 | 2012 |
|---|---|---|
| change in % of basic value | ||
| equity and property –10 % | –5.01 | –8.03 |
| interest rate +1 % | 4.98 | 14.13 |
| interest rate –1 % | –10.08 | –18.13 |
| cost rate –10 % | 2.22 | 3.26 |
| lapse rate –10 % | 1.75 | 1.34 |
| mortality and health endowment +5 % | 1.33 | 1.36 |
| mortality annuities +5 % | –0.14 | –0.29 |
The health insurance business is operated primarily in Austria (92.0 per cent domestic and 8.0 per cent international). As a result, the focus lies on risk management in Austria.
Health insurance is a loss insurance 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 bases of calculation.
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 ("ageing 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 actuarial interest rate for this actuarial provision is 3.0 per cent. If 3.0 per cent is not achieved by the investment, premiums contain safety margins that may be used in the event of insufficient investment results. As an FMA guideline regarding actuarial interest in health insurance was issued in October 2013, from 1 January 2014 new business is calculated with an actuarial interest rate of 2.5 per cent. This results in an improvement of the risk of insufficient investment results.
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 second quarter of 2007. This means that the costs of birth and pregnancy had to be distributed across both sexes. No significant risk to profit has been identified here.
In the meantime, a decision reached by the European Court of Justice regarding insurance policies resulted in a new situation as of 21 December 2012. By this point in time, only completely identical premiums are allowed for men and women, excluding considerations such as age and individual pre-existing conditions. Experience in 2013 has shown that no negative development of the portfolio structure of new business has resulted.
The risk of the health insurance business outside Austria is dominated primarily by UNIQA Assicurazioni in Milan (approximately € 33.0 million in annual premiums). This company currently has stable holdings, meaning that actuarial risk scarcely changes. For tariffs with an outdated calculation basis, with aging holdings, the insured will be converted to tariffs with a modern calculation basis in the coming years. Because this affects tariffs that are not life-long, the conversion problem is less significant than it is for life-long tariffs.
The remaining premiums (approximately € 42.0 million) are divided among multiple companies and are of only minor importance there. Only in Switzerland (Geneva) is health insurance the primary business (approximately € 8.3 million); however, the Swiss Solvency Test resulted in 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 risks include losses that are caused by insufficient or failed internal processes, as well as losses caused by systems, personnel resources or external events.
Operational risk includes legal risk, but not reputation and strategic risk. Legal risk is the risk of uncertainty due to complaints 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, expiration and responsibilities. The risk manager is responsible for compliance in all subsidiaries.
The particularity of operational risks is that they can surface in all processes and departments. This is why operational risks are identified and evaluated in every operational company at a very broad level in the UNIQA Group. Risk identification is carried out with the aid of a standardised risk catalogue that is regularly checked for completeness. Scenarios are defined for evaluating these risks; these scenarios are designed to convey the likelihood of occurrence and the amount of damages. The results are then presented by the risk manager in the form of an aggregated risk report.
This process is conducted twice a year on a standard basis.
Reputation risk describes the risk of loss that arises due to possible damage to the company's reputation, deterioration in prestige, or a negative overall impression due to negative perception by customers, business partners, shareholders or supervisory agencies.
Reputation risks that occur during the course of core processes such as claims processing or advising and service quality are identified, evaluated and managed as operational risks in our subsidiaries.
The most important reputation 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 reputation risks, strategic risks are evaluated twice a year. Furthermore, important decisions in various committees, such as the Risk Committee, are discussed with the Management Boards. 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 market value of identifiable assets, debts and specific contingent liabilities. In accordance with IAS 36, the goodwill is not subject to scheduled depreciation but listed as the acquisition costs less any accrued impairments.
For the purpose of the impairment test, the UNIQA Group has apportioned the goodwill into "cash-generating units" (CGU). These CGUs are the smallest identifiable groups of assets that generate cash which is to the greatest possible extent independent from the cashgenerating units of other assets or other groups of assets. The impairment test implies a comparison between the amount that can be generated by selling or using each CGU, the present value of future cash flows, and the 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 earning power method, impairment is performed.
The UNIQA Group has apportioned goodwill into 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
| Figures in € thousand | 31.12.2013 |
|---|---|
| Bosnia-Herzegovina | 1,887 |
| Bulgaria | 55,811 |
| Italy | 121,718 |
| Croatia | 384 |
| Liechtenstein | - |
| Montenegro | 81 |
| UNIQA Austria | 37,737 |
| Poland | 28,616 |
| Romania | 126,249 |
| Russia | 87 |
| Switzerland | - |
| Serbia | 20,104 |
| "Sigal Group" | 20,170 |
| Slovakia | 120 |
| Czechia | 7,733 |
| Ukraine | 25,059 |
| Hungaria | 18,003 |
| UNIQA Re | - |
| 31.12.2012 | |
|---|---|
| 39,757 | 40,513 |
| 122,647 | 124,385 |
| 55,842 | 59,041 |
| 154,832 | 154,877 |
| 98,614 | 99,062 |
| 87 | 87 |
| 471,780 | 477,964 |
| 31.12.2013 |
The UNIQA Group calculates the recoverable amount on the basis of value in use by applying generally accepted valuation principles by means of the earning power method (Discounted Cash Flow – DCF). The budget projections (based on the detailed planning phase) of the CGUs, the estimate of the long-term results achievable by the CGUs and long-term growth rates (perpetuity) are used as the starting point for determining the earning power.
The earning power is determined by discounting the future profits with a suitable capitalisation interest rate after assumed retention to strengthen the capital base. The earning power values here are separated by balance sheet segments, which are then totalled to yield the value for the entire company.
Taxes on profit 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 interest 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 reflect 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 interest rate was calculated as follows:
| Cash-Generating Unit | Discount factor | Discount factor perpetuity | ||
|---|---|---|---|---|
| Figures in percent | Property and casualty |
Life & Health | Property and casualty |
Life & Health |
| Bosnia-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 |
| Croatia | 13.2 | 14.5 | 12.9 | 14.2 |
| Liechtenstein | 6.1 | 7.3 | 7.7 | 9.0 |
| Montenegro | 13.4 | 14.6 | 13.1 | 14.4 |
| 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 |
| "Sigal Group" | 14.4–15.2 | 15.6–16.4 | 13.9–15.5 | 15.2–16.7 |
| Slovakia | 10.1 | 11.3 | 11.1 | 12.4 |
| Czechia | 10.0 | 11.3 | 10.7 | 12.0 |
| Ukraine | 22.3 | 23.6 | 19.7 | 20.9 |
| Hungaria | 12.9 | 14.2 | 13.6 | 14.9 |
| Regionen | ||||
| Österreich | 8.0 | 9.2 | 8.9 | 10.1 |
| Westeuropa (WE) | 6.1–10.5 | 7.3–11.7 | 7.7–10.6 | 9.0–11.8 |
| Zentraleuropa (CE) | 9.2–12.9 | 10.4–14.2 | 10.7–13.6 | 12.0–14.9 |
| Osteuropa (EE) inkl. Russland | 12.6–22.3 | 13.8–23.6 | 13.3–19.7 | 14.5–20.9 |
| Südosteuropa (SEE) | 11.5–19.1 | 12.7–20.4 | 11.5–18.9 | 12.7–20.1 |
The indicated discount rate intervals relate to the spread over the countries grouped together in the case of the Sigal Group and the regions. Source: Damodaran and derived factors
| Cash-Generating Unit | Discount factor | Discount factor perpetuity | ||
|---|---|---|---|---|
| Figures in percent | Property and casualty |
Life & Health | Property and casualty |
Life & Health |
| Albania | 13.9 | 15.3 | 13.7 | 15.2 |
| Bosnia-Herzegovina | 14.1 | 15.5 | 14.9 | 16.5 |
| Bulgaria | 10.5 | 11.4 | 9.2 | 10.1 |
| Italy | 8.2 | 8.9 | 8.2 | 9.1 |
| Kosovo | 12.9 | 14.1 | 12.4 | 13.7 |
| Croatia | 10 | 10.9 | 9.7 | 10.7 |
| Liechtenstein | 7.3 | 7.9 | 6.3 | 6.9 |
| Macedonia | 12.9 | 14.1 | 12.4 | 13.7 |
| Montenegro | 12.9 | 14.1 | 12.4 | 13.7 |
| Austria | 7.3 | 7.9 | 6.3 | 6.9 |
| Poland | 9.5 | 10.4 | 8.5 | 9.4 |
| Romania | 10.4 | 11.3 | 11.5 | 12.8 |
| Russia | 12.6 | 13.8 | 9.2 | 10.1 |
| Switzerland | 7.3 | 7.9 | 6.3 | 6.9 |
| Serbia | 12.9 | 14.1 | 12.4 | 13.7 |
| Slovakia | 8.9 | 9.6 | 8.2 | 9.1 |
| Czech Republic | 8.4 | 9.1 | 7.9 | 8.7 |
| Ukraine | 17.2 | 18.9 | 13.7 | 15.2 |
| Hungary | 11.6 | 12.7 | 11.5 | 12.8 |
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 involvement 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 cost and loss ratio, investment income, market shares, and the like.
Following the strategic detailed planning, the earning power model was extended by a sevenyear period in order to avoid giving too much weight and influence to the perpetuity and to produce longer-term growth potential. The further development of each country is determined firstly by internal economic analyses and secondly by assumptions of insurance market developments and market trends in the individual sectors and the comparison of the expected growth in phase 1. The growth rates decrease on a straight-line basis over the seven years and lead to the perpetual growth rate.
The cash flows determined at the end of phase 2 were used as the basis for the perpetuity and therefore correspond to results that can be realistically achieved and sustained over the long term. Insurance markets that are at a similar stage of development measured against key indicators such as insurance density and insurance penetration have been pooled in categories and have an identical expected growth for perpetuity.
The earning power of the individual CGUs is determined by a weighted probability scenario. Three scenarios were calculated:
Scenario 1 "base case" reflects detailed five-year Group planning.
Scenario 2 "best case" is the result of positive expectations with regard to the achievement of objectives contained in detailed Group planning and includes the over-fulfilment of detailed Group planning by plus 15.0 per cent.
Scenario 3 "worst case" is the result of negative expectations with regard to the achievement of objectives contained in detailed Group planning and includes a negative deviation from detailed Group planning by minus 35 per cent.
In scenarios 1 and 2, the discount factor applied decreases over the years, as a slight decline in country risk is assumed. A stronger decline of the country risk is assumed for the best case and a somewhat weaker one for the base case. It is assumed in the third scenario that the credit spreads in the first phase remain at the same level and a very weak reduction of the country risk is assumed only thereafter.
The weighting of the three scenarios is again defined by country groups and remains the same over the three phases, whereby the categorisation uses the same groups that were applied to determine the perpetual growth rates. The values are categorised and determined under the assumption that countries are more volatile and can exhibit greater growth spreads depending on their stage of development.
The company value was calculated on the basis of discounting the cash flow forecasts less an assumed retention of profit after taxes and with the defined weightings for each scenario according to the probabilities of occurrence of the three scenarios by country group. This results in an expected company value, which is lower than the present value of the base case because of the assumption of corresponding probabilities of occurrence and is thus recognised more conservatively.
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:
Sensitivity analyses with regard to the capitalisation interest rate and the main value drivers are also performed on a sample basis in order to verify the results from the calculation of value in use and the assessment of these results.
These analyses show that sustained surpluses on the part of the individual CGUs are highly dependent on the actual development of these assumptions within the individual national or regional economies (GDP, insurance density, purchasing power parities), particularly in the CEE markets, as well as the associated implementation of the individual profit goals. These forecasts and the related assessment of how the situation in the markets will develop in the future, under the influence of the continuing economic crisis, constitute the greatest uncertainty in connection with measurement results.
For the event that the intensity and duration of the recovery from the economic crisis turns out to be much slower and the insurance markets develop completely differently than assumed in the business plans and fundamental forecasts, unscheduled depreciations may result for the individual CGUs. Despite slower economic growth, income expectations have not changed significantly compared to previous years.
No impairment was necessary in 2013.
The following table shows key GDP developments in markets of relevance to UNIQA. As such, no loss of these core markets for UNIQA is expected over the long term.
| 2011 | 2012 | 2013e | 2014e | |
|---|---|---|---|---|
| Poland | ||||
| GDP (% in annual comparison) | 4.5 | 1.9 | 1.4 | 2.9 |
| Hungary | ||||
| GDP (% in annual comparison) | 1.6 | –1.7 | 0.7 | 1.8 |
| Czech Republic | ||||
| GDP (% in annual comparison) | 1.8 | –0.9 | –1.3 | 1.7 |
| Slovakia | ||||
| GDP (% in annual comparison) | 3.0 | 1.8 | 1.0 | 2.2 |
| Croatia | ||||
| GDP (% in annual comparison) | 0.0 | –2 | –0.6 | 0.9 |
| Bosnia-Herzegovina | ||||
| GDP (% in annual comparison) | 1.0 | –1.1 | 1.0 | 1.5 |
| Serbia | ||||
| GDP (% in annual comparison) | 1.6 | –1.7 | 2.2 | 1.0 |
| Bulgaria | ||||
| GDP (% in annual comparison) | 1.8 | 0.8 | 0.5 | 1.8 |
| Romania | ||||
| GDP (% in annual comparison) | 2.3 | 0.6 | 2.5 | 2.5 |
| Ukraine | ||||
| GDP (% in annual comparison) | 5.2 | 0.2 | –1.0 | 1.5 |
| Albania | ||||
| GDP (% in annual comparison) | 3.1 | 1.6 | 1.7 | 2.0 |
| Russia | ||||
| GDP (% in annual comparison) | 4.3 | 3.4 | 1.5 | 2.4 |
Source: UNIQA Capital Markets, Raiffeisen Research February 2014
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 required risk capital and management of the use of this risk capital. Major significance accrues to the maximum use of diversification effects. Decisions regarding all reinsurance business ceded are taken with special consideration of their effects on 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 central guideline expertise on 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. Internal risk transfers, of course, 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 risk check of the portfolios assumed by the Group companies is of central importance. Periodic risk assessments have been performed for years in order to facilitate value-oriented management of capital expenditure. Extensive data are used to assess risk capital requirements for affected units. Reinsurance programmes are constantly structured in a goal-oriented manner in accordance with their influence on the assignor's risk situation.
For the property and casualty insurer, promises of performance for protection against damages from natural disasters represent by far the highest stress on risk capital 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 country and Group level in cooperation with internal and external bodies. With goal-oriented use of all applicable diversification effects and the positioning of a highly efficient retrocession programme, the UNIQA Group achieves a substantial relief of the load on risk capital.
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 done on a non-proportional basis. The Group assumes moderate excesses in the affected programmes according to risk and value-oriented approaches.
With the publication of the interim guidelines, major elements of Solvency II are already legally binding in 2014. This means the UNIQA Group is focusing on implementing the ORSA process and the concluding ORSA report.
The preparations are complete and the rollout is being accompanied by intensive information and training measures.
The data warehousing issue is a major success factor for risk management. Here, the integration of the Solvency II approach in the finance data warehouse will be completed in 2014. All subsidiaries will therefore be able to make their solvency calculation with a standardised and modern system.
The training initiatives and awareness measures will be continued and extended to sales executives with the same intensity. Since the basic, broad-based training has already been carried out, more in-depth courses will be offered in 2014.
In market risk management, the overhaul of the sensitivity calculations and stress testing, among other things, will continue in 2014. This includes improved models for VaR calculation, their extension to the entire investment portfolio and initial developments towards "reverse stress testing".
In addition, an even greater expansion of the market and credit risk processes and the limit system to the international companies is targeted.
Processes and governance to ensure the highest possible data quality shall also be advanced. This relates both to the consistent rollout of the existing IT solution and the expansion of data sources for actuarial models and to the establishment of a Data Governance Committee for better organisation of data quality issues.
The above sets of issues are the major development goals for 2014 in addition to the major set of issues relating to phasing in and preparing for Solvency II and ORSA/FLAOR, which are of course also highly significant for market and credit risk management.
Since 2005, the UNIQA Group has used the Prophet software for actuarial valuation in the context of profit testing, balance sheet projections, ALM modelling and especially stochastic modelling. At the heart of these applications are projections of the cash flows relevant for estimating future income or liabilities.
Because the Group's Austrian companies have historically insured the greatest number of lives, the development of the models was always closely linked to these companies. Due to the increasing importance of the life insurance business in the international companies and the increasing qualitative requirements regarding risk capital calculations, the target is to establish a unified standard model in the Group. The standard model for stochastic modelling in the UNIQA Group is Prophet ALS (Asset Liability Strategy). This environment enables shared and efficient modelling of liabilities and assets.
Prophet ALS was already successfully implemented for the Austrian companies in 2012 and for the companies in Slovakia, Czech Republic and Hungary (Central Europe region) in 2013. The priority in 2014 is the further rollout of the standard model to the Italian companies, which account for a significant portion of the international life insurance business. Credit risk modelling is particularly important here in order to reflect corresponding risks in the values of financial options and guarantees. In the long term, all relevant life insurance portfolios are to be modelled under the Group standard in order to meet a high quality standard for all regulatory requirements and also to enable internal analyses – for example to support the ALM process.
As part of the consolidated financial statements according to IFRS, the provision for outstanding claims is valued according to actuarially accepted methods. This realistic estimate forms a relevant item on the liabilities side of the balance sheet, and how good the original estimate was is eventually verified by the settlement of the claims. In this respect, settlement gains or losses can be made.
In order to objectivise internal quality assurance (review of locally generated realistic estimates by Group actuarials), an independent analysis of the appropriateness of the reserve for outstanding claims in property and casualty insurance was commissioned. The analysis is to be carried out between January and May 2014 and cover around 90 per cent of the Group's reserve for outstanding claims as of 31 December 2013. In addition to the specified sectors analysed in all companies covered by the analysis, additional focus areas will be looked at in specific countries.
The work for natural hazards begun in 2013 will be pursued continuously in 2013. In addition to deepening knowledge of the structure and specifications of individual Group-relevant natural hazard models, establishing and implementing validation concepts and sensitivity tests are now also priorities. In order to implement a distinct second-opinion culture, UNIQA Re AG will strengthen the network of external service providers and experts in the field of natural hazards and intensify the cooperation.
To supplement UNIQA's own documentation, a comprehensive knowledge database will be compiled to provide additional basic and detailed literature on individual topics.
In 2014, additional attention will be paid to the development of training concepts to implement the transfer of knowledge to the companies. Alongside basic knowledge building, great value is placed on introducing analysis and decision-making instruments to the responsible parties in the companies. Furthermore, individual local technical support will continue unchanged from previous years in order to guarantee the companies adequate assistance even for very specific requirements.
According to international standards, the UNIQA Group – as a financial service provider – is part of the critical infrastructure of great importance for the governmental community, whose failure or impairment would result in considerable disruption to public security or other dramatic consequences.
Emergencies, crises and disasters usually occur unexpectedly and cannot be planned. However, procedures and processes for handling such events can. Nonetheless, they must be handled as a special task for the management – professionally, efficiently and as quickly as possible.
At UNIQA the issues of crisis prevention, crisis management and business recovery (including contingency plans) are being dealt with by implementing a Business Continuity Management (BCM) system.
Its main objectives are:
The UNIQA BCM model is based on international regulations and standards and will continue to be implemented in 2014. By implementing BCM, UNIQA is responding to the requirements of the authorities (solvency, critical infrastructure) and the market (tendering). This comprehensive risk management approach not only reduces the potential loss after an event but also increases the quality of everyday operations.
As a financial service provider, UNIQA Insurance AG – like nearly all companies today – relies on the high availability of its IT infrastructure as support for its business processes.
At UNIQA, there are numerous measures to secure the operation of the IT infrastructure and, for example, to protect the data stored there.
In addition to the existing security measures customary for the industry, UNIQA I is implementing an Information Security Management System (ISMS). This ISMS, by establishing procedures and rules within a company, allows information security to be defined, managed, controlled, maintained and improved on an ongoing basis in the long term.
The compliance rollout is continuing in 2014. All EU countries are to implement the UNIQA Code of Conduct by the end of the year. The pilot countries, together with Group Compliance, are tasked with consolidating the compliance structure in 2014 and beginning the implementation and practical application of the selected compliance tools. The second group of countries (the remaining EU countries) are beginning the rollout and shall implement the UNIQA Code of Conduct and the Group Compliance Policy (while taking account of compulsory local requirements) and apply selected compliance tools by the end of the year.
NOTES TO THE GROUP FINANCIAL STATEMENTS 111
| Property and casualty insurance | Health insurance | ||||
|---|---|---|---|---|---|
| Figures in € thousand | 31.12.2013 | 31.12.2012 | 31.12.2013 | 31.12.2012 | |
| Assets | |||||
| A. Tangible assets | 137,423 | 150,970 | 29,609 | 25,855 | |
| B. Land and buildings held as financial investments | 216,642 | 224,654 | 287,568 | 299,825 | |
| C. Intangible assets | 492,271 | 495,898 | 223,872 | 223,973 | |
| D. Shares in associated companies | 43,397 | 31,783 | 192,025 | 193,582 | |
| E. Investments | 3,840,288 | 2,986,598 | 2,177,347 | 1,974,050 | |
| F. Investments held on account and at risk of life insurance policyholders |
0 | 0 | 0 | 0 | |
| G. Share of reinsurance in technical provisions | 129,348 | 159,887 | 1,067 | 1,737 | |
| H. Share of reinsurance in technical provisions held on account and at risk of life insurance policyholders |
0 | 0 | 0 | 0 | |
| I. Receivables, including receivables under insurance business |
1,486,884 | 943,964 | 258,525 | 346,006 | |
| J. Receivables from income tax | 53,146 | 47,656 | 164 | 124 | |
| K. Deferred tax assets | 96,368 | 98,080 | 8,809 | 7,817 | |
| L. Liquid funds | 242,382 | 354,142 | 107,219 | 88,743 | |
| M. Assets in disposal groups available for sale | 0 | 63,661 | 0 | 0 | |
| Total segment assets | 6,738,148 | 5,557,294 | 3,286,205 | 3,161,713 | |
| Equity and liabilities | |||||
| B. Subordinated liabilities | 604,132 | 339,064 | 0 | 0 | |
| C. Technical provisions | 2,729,623 | 2,726,699 | 2,570,086 | 2,464,137 | |
| D. Technical provisions held on account and at risk of life insurance policyholders |
0 | 0 | 0 | 0 | |
| E. Financial liabilities | 6,288 | 238,514 | 29,716 | 26,911 | |
| F. Other provisions | 773,153 | 792,234 | 21,013 | 18,686 | |
| G. Payables and other liabilities | 1,191,286 | 670,174 | 148,313 | 74,120 | |
| H. Liabilities from income tax | 28,775 | 17,712 | 1,572 | 1,084 | |
| I. Deferred tax liabilities |
132,026 | 145,018 | 100,854 | 111,615 | |
| J. Liabilities in disposal groups available for sale | 0 | 11,191 | 0 | 0 | |
| Total segment liabilities | 5,465,282 | 4,940,605 | 2,871,553 | 2,696,552 | |
| Group | Consolidation | Life insurance | ||||
|---|---|---|---|---|---|---|
| 31.12.2012 | 31.12.2013 | 31.12.2012 | 31.12.2013 | 31.12.2012 | 31.12.2013 | |
| 306,755 | 286,589 | 0 | 0 | 129,930 | 119,557 | |
| 1,690,763 | 1,652,485 | 0 | 0 | 1,166,284 | 1,148,275 | |
| 1,417,725 | 1,462,530 | 0 | –3,299 | 697,854 | 749,686 | |
| 544,522 | 545,053 | 0 | 0 | 319,157 | 309,631 | |
| 17,869,686 | 18,989,501 | –518,719 | –576,359 | 13,427,756 | 13,548,225 | |
| 5,066,828 | 5,381,201 | 0 | 0 | 5,066,828 | 5,381,201 | |
| 605,847 | 553,252 | 0 | 0 | 444,223 | 422,837 | |
| 408,818 | 389,206 | 0 | 0 | 408,818 | 389,206 | |
| 936,179 | 979,746 | –746,984 | –1,167,511 | 393,192 | 401,849 | |
| 55,098 | 69,881 | 0 | 0 | 7,318 | 16,571 | |
| 128,608 | 142,215 | 0 | 0 | 22,711 | 37,039 | |
| 960,065 | 616,976 | 0 | 0 | 517,180 | 267,375 | |
| 63,661 | 0 | 0 | 0 | 0 | 0 | |
| 30,054,554 | 31,068,634 | –1,265,702 | –1,747,169 | 22,601,249 | 22,791,450 | |
| 450,000 | 600,000 | –34,064 | –314,132 | 145,000 | 310,000 | |
| 19,790,921 | 19,826,710 | –14,573 | –3,867 | 14,614,658 | 14,530,868 | |
| 4,983,029 | 5,299,625 | 0 | 0 | 4,983,029 | 5,299,625 | |
| 34,965 | 26,836 | –469,637 | –255,699 | 239,177 | 246,531 | |
| 871,009 | 836,681 | 0 | 0 | 60,090 | 42,515 | |
| 1,489,275 | 1,313,527 | –741,514 | –1,181,196 | 1,486,496 | 1,155,124 | |
| 28,623 | 40,712 | 0 | 0 | 9,828 | 10,366 | |
| 365,590 | 334,616 | 0 | 0 | 108,957 | 101,737 | |
| 11,191 | 0 | 0 | 0 | 0 | 0 | |
| 28,024,603 | 28,278,707 | –1,259,789 | –1,754,894 | 21,647,235 | 21,696,766 | |
| 2,029,950 | 2,789,927 | Shareholders' equity and minority interests | ||||
Total equity and liabilities 31,068,634 30,054,554
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 Insurance | UNIQA International | |||||
|---|---|---|---|---|---|---|---|
| Figures in € thousand | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | |
| 1. a) Gross premium written | 2,596,856 | 2,514,864 | 668,630 | 626,043 | 1,854,115 | 1,650,435 | |
| 1. Premiums written (retained) | 2,001,770 | 1,906,503 | 570,886 | 526,085 | 1,320,138 | 1,140,187 | |
| 2. Change in unearned premiums (retained) | –2,579 | 2,117 | –238 | 413 | 3,024 | –18,220 | |
| 3. Premiums earned (retained) | 1,999,191 | 1,908,620 | 570,648 | 526,498 | 1,323,162 | 1,121,967 | |
| 4. Income from fees and commissions | 179,403 | 185,969 | 26,192 | 33,525 | 147,293 | 128,746 | |
| 5. Net investment income | 379,086 | 342,211 | 251,636 | 271,429 | 143,106 | 149,827 | |
| 6. Other income | 9,508 | 3,489 | 1,363 | 1,994 | 25,871 | 19,915 | |
| 7. Insurance benefits | –1,680,518 | –1,618,897 | –629,983 | –577,006 | –955,939 | –771,538 | |
| 8. Operating expenses | –597,515 | –578,953 | –137,939 | –167,566 | –605,384 | –581,208 | |
| 9. Other expenses | –49,425 | –44,415 | –17,069 | –21,019 | –53,292 | –63,028 | |
| 10. Amortisation of goodwill | –1,916 | –1,956 | –261 | –698 | –5,124 | –22,197 | |
| 11. Operating profit | 237,813 | 196,068 | 64,587 | 67,158 | 19,692 | –17,516 | |
| 12. Financing costs | –6,812 | –8,318 | 0 | –6,775 | –109 | –120 | |
| 13. Profit on ordinary activities | 231,001 | 187,751 | 64,587 | 60,384 | 19,584 | –17,636 |
The presentation of the operational segments was adjusted to the current management concept following completion of the Group's reorganisation.
| UNIQA Austria | Raiffeisen Insurance | UNIQA International | |||||
|---|---|---|---|---|---|---|---|
| Figures in € thousand | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | |
| Goodwill | |||||||
| Change in impairment for current year | 0 | 0 | 0 | 0 | 0 | –15,000 | |
| of which reallocation affecting income | 0 | 0 | 0 | 0 | 0 | –15,000 | |
| Investments | |||||||
| Change in impairment for current year | –33,608 | –17,965 | –33,551 | –15,928 | –1,157 | –8 | |
| of which reallocation/reinstatement of original values | –33,608 | –17,965 | –33,551 | –15,928 | –1,157 | –8 |
| Group | Group Functions and Consolidation |
Reinsurance | |||
|---|---|---|---|---|---|
| 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 |
| 4,864,151 | 5,157,576 | –1,207,214 | –1,595,140 | 1,280,023 | 1,633,116 |
| 4,650,647 | 4,940,849 | –70,439 | –27,845 | 1,148,311 | 1,075,899 |
| –26,738 | –4,961 | 40,774 | –2,894 | –51,821 | –2,274 |
| 4,623,909 | 4,935,888 | –29,665 | –30,739 | 1,096,490 | 1,073,625 |
| 35,731 | 28,302 | –315,304 | –328,512 | 2,795 | 3,927 |
| 791,437 | 780,002 | 12,992 | –15,640 | 14,979 | 21,813 |
| 46,562 | 64,097 | 17,548 | 12,180 | 3,616 | 15,176 |
| –3,758,545 | –3,955,268 | 42,163 | 93,680 | –833,268 | –782,508 |
| –1,355,006 | –1,385,891 | 299,334 | 292,431 | –326,614 | –337,484 |
| –124,020 | –121,934 | 15,980 | 10,378 | –11,537 | –12,526 |
| –24,937 | –7,301 | –87 | 0 | 0 | 0 |
| 235,131 | 337,895 | 42,961 | 33,779 | –53,541 | –17,976 |
| –30,955 | –32,281 | –15,743 | –25,360 | 0 | 0 |
| 204,176 | 305,614 | 27,218 | 8,419 | –53,541 | –17,976 |
| Reinsurance | Group Functions and Consolidation |
Group | ||||
|---|---|---|---|---|---|---|
| 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | |
| 0 | 0 | 0 | 0 | 0 | –15,000 | |
| 0 | 0 | 0 | 0 | 0 | –15,000 | |
| 0 | 0 | –12,921 | –10,870 | –81,236 | –44,772 | |
| 0 | 0 | –12,921 | –10,870 | –81,236 | –44,772 | |
| Property and casualty insurance | UNIQA Austria | Raiffeisen Insurance | UNIQA International | ||||
|---|---|---|---|---|---|---|---|
| Figures in € thousand | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | |
| 1. a) Gross premium written | 1,326,241 | 1,280,865 | 145,664 | 134,128 | 1,093,683 | 1,073,084 | |
| 1. Premiums written (retained) | 749,588 | 692,816 | 76,953 | 71,920 | 596,251 | 601,994 | |
| 2. Change in unearned premiums (retained) | –2,015 | 1,789 | –175 | 427 | 318 | –14,720 | |
| 3. Premiums earned (retained) | 747,573 | 694,605 | 76,779 | 72,346 | 596,569 | 587,275 | |
| 4. Income from fees and commissions | 173,830 | 180,009 | 20,858 | 19,126 | 139,649 | 121,089 | |
| 5. Net investment income | 44,010 | 43,991 | 3,521 | –1,024 | 39,071 | 42,469 | |
| 6. Other income | 5,440 | 3,236 | 170 | 1,176 | 13,237 | 10,483 | |
| 7. Insurance benefits | –493,546 | –477,320 | –52,852 | –47,476 | –366,053 | –343,544 | |
| 8. Operating expenses | –364,699 | –352,525 | –37,442 | –37,900 | –390,026 | –383,900 | |
| 9. Other expenses | –28,158 | –22,170 | –1,982 | –1,071 | –31,550 | –38,709 | |
| 10. Amortisation of goodwill | 0 | 0 | 0 | 0 | –2,549 | –17,569 | |
| 11. Operating profit | 84,450 | 69,826 | 9,051 | 5,176 | –1,651 | –22,405 | |
| 12. Financing costs | –1,758 | –2,146 | 0 | 0 | –109 | –111 | |
| 13. Profit on ordinary activities | 82,692 | 67,679 | 9,051 | 5,176 | –1,760 | –22,515 |
| Health insurance | UNIQA Austria Raiffeisen Insurance |
UNIQA International | |||||
|---|---|---|---|---|---|---|---|
| Figures in € thousand | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | |
| 1. a) Gross premium written | 866,218 | 835,413 | 0 | 0 | 71,413 | 73,789 | |
| 1. Premiums written (retained) | 865,858 | 835,034 | 0 | 0 | 66,960 | 69,781 | |
| 2. Change in unearned premiums (retained) | –690 | 754 | 0 | 0 | 2,789 | –3,740 | |
| 3. Premiums earned (retained) | 865,169 | 835,788 | 0 | 0 | 69,749 | 66,041 | |
| 4. Income from fees and commissions | 0 | 0 | 0 | 0 | 1,049 | 231 | |
| 5. Net investment income | 93,588 | 95,201 | 0 | 0 | 1,596 | 1,559 | |
| 6. Other income | 641 | 151 | 0 | 0 | 2,258 | 2,305 | |
| 7. Insurance benefits | –736,231 | –719,137 | 0 | 0 | –42,522 | –43,956 | |
| 8. Operating expenses | –122,605 | –112,501 | 0 | 0 | –29,645 | –24,479 | |
| 9. Other expenses | –5,942 | –4,217 | 0 | 0 | –849 | –799 | |
| 10. Amortisation of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | |
| 11. Operating profit | 94,618 | 95,286 | 0 | 0 | 1,636 | 902 | |
| 12. Financing costs | 0 | 0 | 0 | 0 | 0 | 0 | |
| 13. Profit on ordinary activities | 94,618 | 95,286 | 0 | 0 | 1,636 | 902 |
| Life insurance | UNIQA Austria Raiffeisen Insurance |
UNIQA International | |||||
|---|---|---|---|---|---|---|---|
| Figures in € thousand | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | |
| 1. a) Gross premium written | 404,396 | 398,585 | 522,966 | 491,915 | 689,019 | 503,562 | |
| 1. Premiums written (retained) | 386,324 | 378,653 | 493,933 | 454,166 | 656,926 | 468,411 | |
| 2. Change in unearned premiums (retained) | 126 | –426 | –63 | –14 | –83 | 240 | |
| 3. Premiums earned (retained) | 386,449 | 378,227 | 493,870 | 454,152 | 656,843 | 468,651 | |
| 4. Income from fees and commissions | 5,572 | 5,960 | 5,334 | 14,399 | 6,595 | 7,427 | |
| 5. Net investment income | 241,488 | 203,019 | 248,115 | 272,453 | 102,439 | 105,798 | |
| 6. Other income | 3,427 | 102 | 1,192 | 818 | 10,376 | 7,126 | |
| 7. Insurance benefits | –450,741 | –422,441 | –577,131 | –529,530 | –547,363 | –384,038 | |
| 8. Operating expenses | –110,211 | –113,927 | –100,497 | –129,666 | –185,714 | –172,829 | |
| 9. Other expenses | –15,325 | –18,028 | –15,087 | –19,948 | –20,894 | –23,520 | |
| 10. Amortisation of goodwill | –1,916 | –1,956 | –261 | –697 | –2,575 | –4,628 | |
| 11. Operating profit | 58,744 | 30,956 | 55,536 | 61,982 | 19,708 | 3,987 | |
| 12. Financing costs | –5,054 | –6,171 | 0 | –6,775 | 0 | –9 | |
| 13. Profit on ordinary activities | 53,690 | 24,785 | 55,536 | 55,207 | 19,708 | 3,977 |
| Reinsurance | Group Functions and Consolidation |
Group | ||||
|---|---|---|---|---|---|---|
| 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | |
| 1,578,152 | 1,223,567 | –1,553,211 | –1,165,694 | 2,590,529 | 2,545,949 | |
| 1,050,078 | 1,120,216 | –26,941 | –69,038 | 2,445,929 | 2,417,907 | |
| –2,184 | –51,771 | –3,024 | 40,817 | –7,080 | –23,458 | |
| 1,047,894 | 1,068,445 | –29,965 | –28,221 | 2,438,850 | 2,394,449 | |
| 143 | 539 | –323,681 | –311,913 | 10,799 | 8,850 | |
| 9,658 | 3,033 | 2,354 | –3,278 | 98,614 | 85,191 | |
| 14,812 | 3,219 | 2,134 | 4,520 | 35,792 | 22,634 | |
| –756,390 | –805,546 | 34,995 | 35,062 | –1,633,846 | –1,638,824 | |
| –329,189 | –320,211 | 307,176 | 298,886 | –814,180 | –795,650 | |
| –8,054 | –7,072 | 7,632 | 15,297 | –62,112 | –53,725 | |
| 0 | 0 | 0 | 0 | –2,549 | –17,569 | |
| –21,126 | –57,593 | 643 | 10,353 | 71,367 | 5,357 | |
| 0 | 0 | –25,025 | –15,375 | –26,891 | –17,632 | |
| –21,126 | –57,593 | –24,382 | –5,022 | 44,475 | –12,275 |
| Reinsurance | Group Functions and Consolidation |
Group | ||||
|---|---|---|---|---|---|---|
| 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | |
| 1,585 | 1,327 | –1,642 | –1,379 | 937,574 | 909,150 | |
| 1,225 | 1,327 | –57 | –54 | 933,987 | 906,088 | |
| 33 | –146 | –6 | –2 | 2,125 | –3,134 | |
| 1,258 | 1,181 | –63 | –56 | 936,112 | 902,954 | |
| 0 | 0 | –366 | –223 | 683 | 8 | |
| 7 | 7 | –15,792 | –4,185 | 79,399 | 92,583 | |
| 0 | 1 | 3,601 | 5,661 | 6,500 | 8,119 | |
| –268 | –689 | 10,285 | 7,301 | –768,736 | –756,480 | |
| –364 | –221 | –10,073 | –1,384 | –162,688 | –138,584 | |
| 0 | –8 | –440 | 14 | –7,231 | –5,009 | |
| 0 | 0 | 0 | –87 | 0 | –87 | |
| 632 | 273 | –12,848 | 7,041 | 84,038 | 103,502 | |
| 0 | 0 | –298 | –368 | –298 | –368 | |
| 632 | 273 | –13,146 | 6,673 | 83,740 | 103,135 |
| Reinsurance | Group Functions and Consolidation |
Group | ||||
|---|---|---|---|---|---|---|
| 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | 1–12/2013 | 1–12/2012 | |
| 53,379 | 55,130 | –40,288 | –40,141 | 1,629,472 | 1,409,052 | |
| 24,596 | 26,769 | –847 | –1,347 | 1,560,932 | 1,326,651 | |
| –122 | 96 | 137 | –41 | –6 | –146 | |
| 24,474 | 26,864 | –710 | –1,388 | 1,560,927 | 1,326,505 | |
| 3,783 | 2,255 | –4,465 | –3,168 | 16,820 | 26,873 | |
| 12,148 | 11,938 | –2,202 | 20,455 | 601,989 | 613,664 | |
| 364 | 395 | 6,446 | 7,367 | 21,805 | 15,809 | |
| –25,850 | –27,033 | 48,400 | –200 | –1,552,685 | –1,363,241 | |
| –7,930 | –6,182 | –4,671 | 1,832 | –409,023 | –420,771 | |
| –4,472 | –4,458 | 3,186 | 669 | –52,591 | –65,286 | |
| 0 | 0 | 0 | 0 | –4,752 | –7,281 | |
| 2,517 | 3,779 | 45,985 | 25,567 | 182,490 | 126,271 | |
| 0 | 0 | –38 | 0 | –5,092 | –12,955 | |
| 2,517 | 3,779 | 45,947 | 25,567 | 177,398 | 113,316 |
| Premiums earned (retained) | Net investment income | ||||
|---|---|---|---|---|---|
| Figures in € thousand | 2013 | 2012 | 2013 | 2012 | |
| Switzerland | 7,817 | 7,352 | 219 | 246 | |
| Italy | 515,898 | 359,817 | 73,801 | 77,380 | |
| Liechtenstein | 2,342 | 3,006 | 2,288 | 2,841 | |
| Western Europe (WE) | 526,057 | 370,175 | 76,308 | 80,468 | |
| Czech Republic | 119,161 | 123,989 | 8,486 | 9,708 | |
| Hungary | 58,915 | 60,658 | 8,021 | 10,892 | |
| Poland | 192,406 | 208,807 | 14,907 | 16,469 | |
| Slovakia | 55,488 | 54,381 | 3,573 | 4,225 | |
| Central Europe (CE) | 425,970 | 447,836 | 34,988 | 41,294 | |
| Romania | 68,183 | 52,378 | 5,394 | 6,049 | |
| Ukraine | 80,576 | 64,012 | 5,883 | 4,775 | |
| Eastern Europe (EE) | 148,759 | 116,389 | 11,277 | 10,824 | |
| Albania | 17,360 | 17,420 | 778 | 660 | |
| Bosnia-Herzegovina | 21,448 | 18,404 | 2,044 | 1,735 | |
| Bulgaria | 35,696 | 35,067 | 1,322 | 1,462 | |
| Croatia | 23,745 | 19,623 | 6,207 | 5,751 | |
| Montenegro | 8,653 | 7,319 | 525 | 444 | |
| Macedonia | 9,343 | 8,101 | 323 | 266 | |
| Serbia | 31,821 | 30,403 | 3,066 | 5,270 | |
| Kosovo | 9,976 | 8,690 | 459 | 489 | |
| Southeastern Europe (SEE) | 158,044 | 145,026 | 14,723 | 16,077 | |
| Russia | 64,332 | 42,540 | 6,006 | 1,807 | |
| Russia (RU) | 64,332 | 42,540 | 6,006 | 1,807 | |
| Austria | 0 | 0 | –196 | –644 | |
| Administration | 0 | 0 | –196 | –644 | |
| UNIQA International | 1,323,162 | 1,121,967 | 143,106 | 149,827 | |
| Profit/loss on ordinary activities |
Operating expenses | Insurance benefits (net) | |||||
|---|---|---|---|---|---|---|---|
| 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | ||
| 236 | 460 | –2,793 | –3,012 | –6,490 | –6,493 | ||
| 22,329 | 21,180 | –93,132 | –97,939 | –316,449 | –484,798 | ||
| 806 | –88 | –5,259 | –3,171 | –1,795 | –811 | ||
| 23,371 | 21,551 | –101,183 | –104,122 | –324,734 | –492,101 | ||
| 9,336 | 10,823 | –70,392 | –66,302 | –77,164 | –71,154 | ||
| –3,635 | 1,717 | –63,449 | –61,542 | –19,745 | –15,743 | ||
| 5,407 | 9,423 | –91,338 | –97,389 | –149,009 | –122,167 | ||
| 8,877 | 6,996 | –36,353 | –39,917 | –28,547 | –30,022 | ||
| 19,985 | 28,958 | –261,532 | –265,150 | –274,465 | –239,086 | ||
| –21,700 | –15,972 | –40,353 | –49,167 | –35,154 | –54,689 | ||
| 1,696 | 5,914 | –39,620 | –43,316 | –28,126 | –38,178 | ||
| –20,004 | –10,058 | –79,973 | –92,483 | –63,279 | –92,866 | ||
| 1,579 | 971 | –9,152 | –9,619 | –7,671 | –7,795 | ||
| 644 | 531 | –7,857 | –8,685 | –12,212 | –14,917 | ||
| –2,857 | 329 | –22,974 | –24,302 | –22,862 | –18,813 | ||
| 1,224 | 1,197 | –11,815 | –12,500 | –15,321 | –19,291 | ||
| –263 | –889 | –5,022 | –5,319 | –3,354 | –4,736 | ||
| –73 | –152 | –5,725 | –6,330 | –2,875 | –3,937 | ||
| 786 | –3,273 | –17,288 | –17,295 | –18,096 | –21,672 | ||
| 1,110 | 673 | –4,728 | –5,387 | –3,370 | –4,404 | ||
| 2,149 | –612 | –84,563 | –89,437 | –85,761 | –95,565 | ||
| 1,119 | 6,563 | –20,668 | –27,399 | –23,298 | –36,319 | ||
| 1,119 | 6,563 | –20,668 | –27,399 | –23,298 | –36,319 | ||
| –44,256 | –26,819 | –33,289 | –26,793 | 0 | 0 | ||
| –44,256 | –26,819 | –33,289 | –26,793 | 0 | 0 | ||
| –17,636 | 19,584 | –581,208 | –605,384 | –771,538 | –955,939 |
| Figures in € thousand | Balance sheet values previous year |
Currency differences | Additions | Unrealised capital gains and losses |
|
|---|---|---|---|---|---|
| A. Tangible assets | |||||
| I. Self-used land and buildings | 194,151 | –2,381 | 24,651 | 0 | |
| II. Other tangible assets | |||||
| 1. Tangible assets | 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. Land and buildings held as financial investments | 1,690,763 | –5,772 | 61,315 | 0 | |
| C. Intangible assets | |||||
| I. Deferred acquisition costs | 868,802 | –4,117 | 261,712 | 0 | |
| II. Goodwill | |||||
| 1. Positive goodwill | 477,964 | –3,691 | 0 | 0 | |
| 2. Value of insurance policies | 45,789 | –94 | 0 | 0 | |
| Total C. II. | 523,753 | –3,785 | 0 | 0 | |
| III. Other intangible assets | |||||
| 1. Self-developed software | 2,460 | –47 | 852 | 0 | |
| 2. Acquired intangible assets | 22,709 | –472 | 10,595 | 0 | |
| Total C. III. | 25,170 | –519 | 11,447 | 0 | |
| Total C. | 1,417,725 | –8,420 | 273,160 | 0 | |
| D. Shares in associated companies | 544,522 | 0 | 0 | –11,367 | |
| E. Investments | |||||
| I. Variable-yield securities | |||||
| 1. Shares, investment shares and other variable-yield securities, including | |||||
| holdings and shares in associated 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 interest securities | |||||
| 1. Debt securities and other fixed interest 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 | |||||
| associated companies | 1,421 | –2 | 482 | 0 | |
| b) Debt securities issued by and loans to participating interests | 552 | 0 | 4,082 | 0 | |
| c) Mortgage loans | 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. Cash at credit institutions/cash at banks | 1,189,217 | –10,593 | 84,959 | 881 | |
| 3. Deposits with ceding companies | 129,755 | 0 | 1,126 | 0 | |
| Total E. III. | 2,408,621 | –10,966 | 103,327 | 4,517 | |
| IV. Derivative financial instruments | 62,206 | –36 | 78,784 | 0 | |
| Total E. | 17,869,686 | –43,252 | 7,018,334 | –170,192 | |
| F. Investments held on account and at risk of life insurance | |||||
| policyholders | 5,066,828 | –10,859 | 1,993,783 | 1,272 | |
| Aggregate total | 26,896,278 | –71,060 | 9,390,742 | –180,286 |
| Book value financial year |
Depreciation | Write-ups | Disposals | Transfers | Amortisation | |
|---|---|---|---|---|---|---|
| 198,433 | 7,087 | 0 | 229 | –10,673 | 0 | |
| 59,496 | 15,101 | 0 | 2,297 | –376 | 0 | |
| 5,661 | 0 | |||||
| 22,998 | 25,799 | |||||
| 88,156 | 15,101 | 0 | 28,095 | –376 | 0 | |
| 286,589 | 22,188 | 0 | 28,324 | –11,049 | 0 | |
| 1,652,485 | 63,723 | 0 | 41,142 | 11,045 | 0 | |
| 927,900 | 198,498 | 0 | 0 | 0 | 0 | |
| 471,780 | 0 | 0 | 2,493 | 0 | 0 | |
| 38,394 | 7,301 | 0 | 0 | 0 | 0 | |
| 510,174 | 7,301 | 0 | 2,493 | 0 | 0 | |
| 2,881 21,574 |
633 8,842 |
0 21 |
102 2,091 |
351 –347 |
0 0 |
|
| 24,455 | 9,474 | 21 | 2,193 | 3 | 0 | |
| 1,462,530 | 215,272 | 21 | 4,687 | 3 | 0 | |
| 545,053 | 4,609 | 24,471 | 7,964 | 0 | 0 | |
| 863,810 | 36,443 | 3,954 | 778,690 | 0 | –5 | |
| 131,264 | 15,746 | 15,688 | 329,133 | 0 | –339 | |
| 995,074 | 52,189 | 19,643 | 1,107,823 | 0 | –344 | |
| 15,136,246 | 214,665 | 86,079 | 4,154,517 | –303 | 2,199 | |
| 439,374 | 16,884 | 16,638 | 37,111 | 0 | 1,848 | |
| 15,575,620 | 231,549 | 102,717 | 4,191,628 | –303 | 4,047 | |
| 1,759 | 0 | 0 | 142 | 0 | 0 | |
| 1,955 | 0 | 0 | 2,679 | 0 | 0 | |
| 42,831 | 0 | 1,112 | 9,433 | –1,293 | 0 | |
| 12,051 | 21 | 31 | 4,718 | 0 | 0 | |
| 886,217 | 783 | 16 | 149,647 | 1,293 | 922 | |
| 944,813 | 804 | 1,159 | 166,620 | 0 | 922 | |
| 1,273,852 | 579 | 9,926 | 0 | 0 | 41 | |
| 126,761 | 0 | 0 | 4,119 | 0 | 0 | |
| 2,345,426 | 1,383 | 11,086 | 170,739 | 0 | 963 | |
| 73,381 | 59,194 | 43,736 | 52,114 | 0 | 0 | |
| 18,989,501 | 344,316 | 177,181 | 5,522,305 | –303 | 4,667 | |
| 5,381,201 | 73,395 | 130,114 | 1,727,634 | 303 | 790 | |
| 28,317,358 | 723,502 | 331,787 | 7,332,056 | 0 | 5,456 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Book values for | ||
| Property and casualty insurance | 85,728 | 74,501 |
| Health insurance | 11,545 | 11,836 |
| Life insurance | 101,159 | 107,814 |
| 198,433 | 194,151 | |
| Market values for | ||
| Property and casualty insurance | 115,391 | 104,669 |
| Health insurance | 14,648 | 14,749 |
| Life insurance | 148,060 | 149,852 |
| 278,098 | 269,269 | |
| Acquisition values | 295,133 | 287,231 |
| Cumulative depreciation | –96,701 | –93,080 |
| Book values | 198,433 | 194,151 |
| Useful life for land and buildings | 10–80 years | 10–80 years |
| Additions from company acquisition Figures in € thousand |
31.12.2013 | 31.12.2012 |
| Self-used land and buildings | 0 | 0 |
The market values are derived from expert reports.
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Tangible assets | 59,496 | 58,342 |
| Inventories | 5,661 | 5,465 |
| Other assets | 22,998 | 48,796 |
| Total | 88,156 | 112,604 |
| Tangible assets | |
|---|---|
| ----------------- | -- |
| Development in financial year Figures in € thousand |
|
|---|---|
| Acquisition values as at 31.12.2012 | 215,534 |
| Cumulative depreciation up to 31.12.2012 | –157,192 |
| Book values as at 31.12.2012 | 58,342 |
| Currency translation changes | –375 |
| Additions | 19,303 |
| Disposals | –2,297 |
| Transfers | –376 |
| Appreciation and depreciation | –15,100 |
| Book values as at 31.12.2013 | 59,496 |
| Acquisition values as at 31.12.2013 | 205,775 |
| Cumulative depreciation up to 31.12.2013 | –146,278 |
| Book values as at 31.12.2013 | 59,496 |
Tangible assets refer mainly to office equipment. They are depreciated over a useful life of four to ten years. The amounts of depreciation 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 acquisition | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Figures in € thousand | ||
| Other tangible assets | 0 | 696 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Book values for | ||
| Property and casualty insurance | 216,642 | 224,654 |
| Health insurance | 287,568 | 299,825 |
| Life insurance | 1,148,275 | 1,166,284 |
| 1,652,485 | 1,690,763 | |
| Market values for | ||
| Property and casualty insurance | 343,874 | 352,562 |
| Health insurance | 366,289 | 383,390 |
| Life insurance | 1,662,408 | 1,613,554 |
| 2,372,571 | 2,349,505 | |
| Acquisition values | 2,217,125 | 2,228,217 |
| Cumulative depreciation | –564,640 | –537,454 |
| Book values | 1,652,485 | 1,690,763 |
| Useful life for land and buildings | 10–80 years | 10–80 years |
| Additions from company acquisition Figures in € thousand |
31.12.2013 | 31.12.2012 |
| Land and buildings held as financial investments | 0 | 173,324 |
| Figures in € thousand | 31.12.2013 |
|---|---|
| Change in impairment for current year | 11,226 |
| of which reallocation affecting income | 11,226 |
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| Property and casualty insurance | ||
| As at 1.1. | 154,103 | 169,364 |
| Currency translation changes | –2,231 | 2,051 |
| Change in consolidation scope | 0 | –31,457 |
| Capitalisation | 101,137 | 119,545 |
| Depreciation | –96,107 | –105,400 |
| As at 31.12. | 156,901 | 154,103 |
| Health insurance | ||
| As at 1.1. | 221,365 | 232,680 |
| Currency translation changes | –284 | 114 |
| Change in consolidation scope | 0 | –18,875 |
| Capitalisation | 12,372 | 18,432 |
| Interest surchage | 7,466 | 9,041 |
| Depreciation | –19,898 | –20,027 |
| As at 31.12. | 221,020 | 221,365 |
| Life insurance | ||
| As at 1.1. | 493,334 | 497,687 |
| Currency translation changes | –1,602 | 1,211 |
| Change in consolidation scope | 0 | 0 |
| Capitalisation | 125,760 | 113,799 |
| Interest surchage | 14,978 | 17,381 |
| Depreciation | –82,492 | –136,744 |
| As at 31.12. | 549,979 | 493,334 |
| In the Consolidated Financial Statements | ||
| As at 1.1. | 868,802 | 899,732 |
| As at 31.12. | 927,900 | 868,802 |
|---|---|---|
| Depreciation | –198,498 | –262,171 |
| Interest surchage | 22,444 | 26,421 |
| Capitalisation | 239,269 | 251,776 |
| Change in consolidation scope | 0 | –50,332 |
| Currency translation changes | –4,117 | 3,376 |
| Figures in € thousand | Goodwill | Capitalised portfolio values insurance contracts |
|---|---|---|
| Acquisition values as at 31.12.2012 | 581,852 | 176,112 |
| Cumulative depreciation up to 31.12.2012 | –103,888 | –130,323 |
| Book values as at 31.12.2012 | 477,964 | 45,789 |
| Acquisition values as at 31.12.2013 | 567,646 | 175,942 |
| Cumulative depreciation up to 31.12.2013 | –95,866 | –137,548 |
| Book values as at 31.12.2013 | 471,780 | 38,394 |
There were no additions in 2013.
| Figures in € thousand | Goodwill | Capitalised portfolio values insurance contracts |
|---|---|---|
| Cumulative depreciation up to 31.12.2013 | 95,866 | 137,548 |
| of which relating to impairment | 57,661 | 0 |
| of which current depreciation | 38,205 | 137,548 |
| Figures in € thousand | 31.12.2013 | |
| Change in impairment for current year | 0 | |
| of which reallocation affecting income | 0 | |
| Goodwill by country figures in € thousand |
31.12.2013 | 31.12.2012 |
| Austria | 39,757 | 40,513 |
| Germany | 930 | 930 |
| Italy | 121,718 | 123,455 |
| Western Europe (WE) | 122,647 | 124,385 |
| Czech Republic | 7,733 | 8,432 |
| Hungary | 18,063 | 19,997 |
| Poland | 28,624 | 29,188 |
| Slovakia | 1,423 | 1,423 |
| Central Europe (CE) | 55,842 | 59,041 |
| Romania | 126,394 | 124,773 |
| Ukraine | 28,438 | 30,104 |
| Eastern Europe (EE) | 154,832 | 154,877 |
| Albania | 20,170 | 20,220 |
| Bosnia-Herzegovina | 1,887 | 1,887 |
| Bulgaria | 55,926 | 55,926 |
| Croatia | 384 | 387 |
| Montenegro | 81 | 81 |
| Serbia | 20,104 | 20,497 |
| Cyprus | 63 | 63 |
| Southeastern Europe (SEE) | 98,614 | 99,062 |
| Russia (RU) | 87 | 87 |
| Total | 471,780 | 477,964 |
| Figures in € thousand | Self-developed software |
Acquired intangible assets |
|---|---|---|
| Acquisition values as at 31.12.2012 | 39,160 | 153,009 |
| Cumulative depreciation up to 31.12.2012 | –36,700 | –130,300 |
| Book values as at 31.12.2012 | 2,460 | 22,709 |
| Acquisition values as at 31.12.2013 | 40,560 | 137,329 |
| Cumulative depreciation up to 31.12.2013 | –37,679 | –115,755 |
| Book values as at 31.12.2013 | 2,881 | 21,574 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Computer software | 20,432 | 21,405 |
| Copyrights | 0 | 0 |
| Licences | 1,655 | 1,417 |
| Other intangible assets | 2,369 | 2,348 |
| 24,455 | 25,170 |
| Self-developed software | 2–5 years | 2–5 years |
|---|---|---|
| Acquired intangible assets | 2–5 years | 2–5 years |
The intangible assets include paid-for and self-produced computer software as well as licenses and copyrights.
The depreciation of the other intangible assets was 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 depreciated using the straight-line method.
| Additions from company acquisition Figures in € thousand |
31.12.2013 | 31.12.2012 |
|---|---|---|
| Self-developed software | 0 | 0 |
| Acquired intangible assets | 0 | 86 |
| Figures in € thousand | 2013 | 2012 |
| Research and development expenditure recorded as an expense during the period under review |
642 | 2,360 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Book values for | ||
| Shares in associated companies valued at equity | 545,053 | 544,522 |
The shares in associated companies of minor importance are shown on the balance sheet as available for disposal at any time under variable-yield securities (Assets E. I. 1.).
| Shares in associated companies Figures in € thousand |
31.12.2013 | |
|---|---|---|
| Current market value of associated companies listed on a public stock exchange | 355,040 | |
| Profits/losses for the period | 20,023 | |
| Unrecorded, proportional loss, ongoing, if shares of loss are no longer recorded | 0 | |
| Unrecorded, proportional loss, cumulative, if shares of loss are no longer recorded | 0 | |
| Proportional asset value of shares in associated companies valued at equity | 1,834,053 | |
| Proportional liabilities of shares in associated companies valued at equity | 1,277,588 |
| Figures in € thousand | 31.12.2013 31.12.2012 | |
|---|---|---|
| Assets | ||
| A. Tangible assets | ||
| II. Other tangible assets | 0 | 2,485 |
| B. Land and buildings held as financial investments | 0 | 48,885 |
| C. Intangible assets | ||
| III. Other intangible assets | 0 | 40 |
| D. Shares in associated companies | 0 | 82 |
| E. Investments | ||
| I. Variable-yield securities | ||
| 1. Available for sale | 0 | 6 |
| II. Fixed interest securities | ||
| 1. Available for sale | 0 | 280 |
| I. Receivables, including receivables under insurance business | ||
| II. Other receivables | 0 | 4,537 |
| III. Other assets | 0 | 214 |
| K. Deferred tax assets | 0 | –434 |
| L. Liquid funds | 0 | 7,565 |
| M. Assets in disposal groups available for sale | 0 | 63,661 |
| Figures in € thousand | 31.12.2013 31.12.2012 | ||
|---|---|---|---|
| Equity and liabilities | |||
| E. Financial liabilities | |||
| I. Liabilities from loans | 0 | 2,480 | |
| F. Other provisions | |||
| I. Pensions and similar provisions | 0 | 2,301 | |
| II. Other provisions | 0 | 2,008 | |
| G. Payables and other liabilities | |||
| II. Other payables | 0 | 3,913 | |
| H. Liabilities from income tax | 0 | 44 | |
| I. Deferred tax liabilities | 0 | 445 | |
| J. Liabilities in disposal groups available for sale | 0 | 11,191 |
In the 2012 financial year, the Austria Hotels companies up for sale were reclassified to a separate balance sheet item. The sale was settled in the first half of 2013.
| Type of investment | Acquisition costs | Fluctuation in value not affecting income |
Accumulated value adjustments |
Foreign currency differences affecting income |
Market values | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Figures in € thousand | 31.12.2013 31.12.2012 31.12.2013 31.12.2012 31.12.2013 31.12.2012 31.12.2013 31.12.2012 31.12.2013 31.12.2012 | |||||||||
| Shares in affiliated companies | 17,587 | 10,594 | 0 | 0 | 0 | 0 | 0 | 0 | 17,587 | 10,594 |
| Shares | 134,805 | 480,863 | 99,297 | 201,576 | –21,578 | –74,656 | 0 | 0 | 212,524 | 607,783 |
| Equity funds | 271,512 | 217,458 | 32,889 | 13,832 | –18,926 | –15,333 | 0 | 0 | 285,475 | 215,957 |
| Debenture bonds not capital-guaranteed | 207,731 | 234,122 | –840 | 3,718 | –24,903 | –14,403 | 0 | –2,790 | 181,987 | 220,647 |
| Other variable-yield securities | 34,094 | 33,750 | –32 | 0 | 0 | –7,300 | 0 | 0 | 34,063 | 26,450 |
| Participating interests and other | ||||||||||
| investments | 139,759 | 306,299 | 10,909 | 65,917 | –18,495 | –54,295 | 0 | 0 | 132,174 | 317,921 |
| Fixed-interest securities | 15,143,349 12,874,825 | 335,193 | 619,638 | –246,556 | –247,182 | –95,741 | –60,659 15,136,246 | 13,186,622 | ||
| Total | 15,948,837 14,157,911 | 477,417 | 904,680 | –330,458 | –413,169 | –95,741 | –63,449 16,000,055 14,585,974 |
| Type of investment | Accumulated value adjustments |
Of which accumulated from previous years |
Of which from current year | |||
|---|---|---|---|---|---|---|
| Figures in € thousand | 31.12.2013 31.12.2012 31.12.2013 31.12.2012 31.12.2013 31.12.2012 | |||||
| Shares in affiliated companies | 0 | 0 | 0 | 0 | 0 | 0 |
| Shares | –21,578 | –74,656 | –11,109 | –66,219 | –10,470 | –8,437 |
| Equity funds | –18,926 | –15,333 | –12,985 | –12,064 | –5,941 | –3,268 |
| Debenture bonds not capital-guaranteed | –24,903 | –14,403 | –14,403 | –19,994 | –10,500 | 5,591 |
| Other variable-yield securities | 0 | –7,300 | 0 | –4,900 | 0 | –2,400 |
| Participating interests and other investments | –18,495 | –54,295 | –15,407 | –51,353 | –3,088 | –2,943 |
| Fixed-interest securities | –246,556 | –247,182 | –207,349 | –221,355 | –39,208 | –25,827 |
| Total | –330,458 | –413,169 | –261,252 | –375,884 | –69,206 | –37,285 |
| Type of investment | Change in value adjustment current year |
of which write down/write-up affecting income |
of which changes due to disposal |
Write-up of equity |
|---|---|---|---|---|
| Figures in € thousand | 31.12.2013 | 31.12.2013 | 31.12.2013 | 31.12.2013 |
| Shares in affiliated companies | 0 | 0 | 0 | 0 |
| Shares | 53,077 | –10,470 | 62,345 | 1,202 |
| Equity funds | –3,593 | –5,941 | –880 | 3,227 |
| Debenture bonds not capital-guaranteed | –10,500 | –10,500 | 0 | 0 |
| Other variable-yield securities | 7,300 | 0 | 7,300 | 0 |
| Participating interests and other investments | 35,800 | –3,088 | 38,889 | 0 |
| Fixed-interest securities | 626 | –39,208 | 39,834 | 0 |
| Total | 82,711 | –69,206 | 147,488 | 4,429 |
| Change in equity | Allocation not affecting income |
disposals affecting income | Withdrawal1) due to | Change in unrealised gains/losses |
||
|---|---|---|---|---|---|---|
| Figures in € thousand | 31.12.2013 31.12.2012 31.12.2013 31.12.2012 31.12.2013 31.12.2012 | |||||
| Other securities - available for sale2) | ||||||
| Gross | –170,192 | 1,234,070 | –239,082 | –100,122 | –409,274 | 1,133,947 |
| Deferred tax | 21,194 | –168,733 | 22,813 | 10,948 | 44,007 | –157,785 |
| Deferred profit participation | 76,778 | –652,986 | 165,931 | 72,291 | 242,709 | –580,695 |
| Minority interests | 158 | –28,038 | 337 | –7,238 | 495 | –35,276 |
| Net | –72,062 | 384,312 | –50,002 | –24,121 | –122,063 | 360,191 |
1) Withdrawals affecting the income statement due to disposals and impairments. 2) Including reclassified securities.
| Investments at fair value | Level 1 | Level 2 | Level 3 | Group total |
|---|---|---|---|---|
| Figures in € thousand | 31.12.2013 | 31.12.2013 | 31.12.2013 | 31.12.2013 |
| Securities available for sale | 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 |
| Debenture bonds not capital-guaranteed | 7,946 | 174,042 | 0 | 181,987 |
| Other variable-yield securities | 0 | 34,063 | 0 | 34,063 |
| Participating interests and other investments | 1,119 | 61,527 | 69,527 | 132,174 |
| Fixed-interest securities | 12,982,685 | 1,672,853 | 480,708 | 15,136,246 |
| At fair value through profit and loss | 182,152 | 382,768 | 5,718 | 570,638 |
| Derivative financial instruments | 561 | 64,519 | 0 | 65,079 |
| Total | 13,448,794 | 2,454,019 | 732,959 | 16,635,773 |
The table below depicts the financial instruments for which subsequent valuation is performed at the current market value.
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. Other shares and investments for which a valuation appraisal exists were also classified as level 3. No other major level 3 assets existed as at 31 December 2013.
| Investments at fair value | Level 1 | Level 2 | Level 3 | Group total |
|---|---|---|---|---|
| Figures in € thousand | 31.12.2012 | 31.12.2012 | 31.12.2012 | 31.12.2012 |
| Securities available for sale | 11,640,654 | 2,346,836 | 598,483 | 14,585,974 |
| Shares in affiliated companies | 36 | 10,558 | 0 | 10,594 |
| Shares | 432,936 | 174,523 | 324 | 607,783 |
| Equity funds | 193,497 | 22,458 | 1 | 215,957 |
| Debenture bonds not capital-guaranteed | 20,048 | 200,599 | 0 | 220,647 |
| Other variable-yield securities | 0 | 26,450 | 0 | 26,450 |
| Participating interests and other investments | 1,141 | 316,780 | 0 | 317,921 |
| Fixed-interest securities | 10,992,996 | 1,595,468 | 598,158 | 13,186,622 |
| At fair value through profit and loss | 169,447 | 638,779 | 4,659 | 812,885 |
| Derivative financial instruments | –346 | 55,082 | 0 | 54,736 |
| Total | 11,809,755 | 3,040,697 | 603,143 | 15,453,595 |
No transfers between levels 1 and 2 took place in the previous year either. The entire portfolio of asset-backed securities was classified as level 3. No other major level 3 assets existed as at 31 December 2013.
| Level 3 Investments at fair value Figures in € thousand |
Securities available for sale |
At fair value through profit and loss |
Derivative financial instruments |
Total |
|---|---|---|---|---|
| As at 1.1.2013 | 598,483 | 4,659 | 0 | 603,143 |
| Exchange rate differences | 11 | 0 | 0 | 11 |
| Total gains or losses for the period recognised in profit or loss |
–19,916 | 1,047 | 0 | –18,869 |
| Total gains or losses for the period recognised in other comprehensive income (revaluation reserve) |
10,393 | 0 | 0 | 10,393 |
| Purchase | 2,858 | 386 | 0 | 3,244 |
| Sales | –147,400 | 0 | 0 | –147,400 |
| Issues | 0 | 0 | 0 | 0 |
| Settlements | –2 | –100 | 0 | –103 |
| Transfers | 282,815 | –274 | 0 | 282,541 |
| As at 31.12.2013 | 727,242 | 5,718 | 0 | 732,959 |
| Level 3 Investments at fair value Figures in € thousand |
Securities available for sale |
At fair value through profit and loss |
Derivative financial instruments |
Total |
|---|---|---|---|---|
| As at 1.1.2012 | 647,862 | 10,269 | 0 | 658,131 |
| Exchange rate differences | –32 | 0 | 0 | –32 |
| Total gains or losses for the period recognised in profit or loss |
–2,800 | –1,699 | 0 | –4,499 |
| Total gains or losses for the period recognised in other comprehensive income (revaluation reserve) |
47,254 | 0 | 0 | 47,254 |
| Purchase | 5,878 | 5 | 0 | 5,883 |
| Sales | –99,677 | –3,915 | 0 | –103,593 |
| Issues | 0 | 0 | 0 | 0 |
| Settlements | –2 | 0 | 0 | –2 |
| Transfers | 0 | 0 | 0 | 0 |
| As at 31.12.2012 | 598,483 | 4,659 | 0 | 603,143 |
| Contractual remaining term | Acquisition costs | Market values | ||
|---|---|---|---|---|
| Figures in € thousand | 31.12.2013 | 31.12.2012 | 31.12.2013 | 31.12.2012 |
| Infinite | 40,215 | 48,577 | 41,392 | 40,636 |
| Up to 1 year | 2,575,313 | 1,947,601 | 2,443,456 | 1,815,336 |
| more than 1 year up to 5 years | 4,038,686 | 4,329,458 | 4,096,619 | 4,405,487 |
| More than 5 years up to 10 years | 4,925,849 | 4,541,607 | 5,078,617 | 4,857,911 |
| More than 10 years | 3,805,112 | 2,275,454 | 3,692,211 | 2,314,348 |
| Total | 15,385,174 | 13,142,697 | 15,352,296 | 13,433,719 |
The remaining maturities stipulated by contract refer to fixed-interest securities, other variable- yield securities and bonds without capital guarantee.
| Risk of default rating Figures in € thousand |
31.12.2013 |
|---|---|
| Fixed-interest securities | |
| Rating AAA | 3,843,380 |
| Rating AA | 3,450,375 |
| Rating A | 2,660,844 |
| Rating BBB | 3,705,738 |
| Rating < BBB | 1,331,700 |
| Not assigned | 360,260 |
| Rating total of fixed-interest securities | 15,352,296 |
| Issuer countries | |
|---|---|
| Share securities | |
| IE, NL, UK, US | 75,475 |
| AT, BE, CH, DE, DK, FR, IT | 246,415 |
| ES, FI, NO, SE | 397 |
| Remaining EU | 123,419 |
| other countries | 52,311 |
| Issuer countries total of share securities | 498,016 |
| Other shareholdings | 132,156 |
| Total variable-yield securities | 630,173 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Market values | ||
| Equity price risk | –2,991 | –2,216 |
| Interest rate risk | 0 | 0 |
| Currency risk | 11,904 | 31,600 |
| Structured risk | 56,166 | 25,351 |
| Total | 65,079 | 54,736 |
| Structured risk - of which: | ||
| Equity price risk | 40,941 | 10,970 |
| Interest rate risk | –7,021 | –5,896 |
| Currency risk | 22,246 | 13,570 |
| Credit risk | 0 | |
| Commodity risk | 6,708 | |
| Balance sheet values | ||
| Investments | 73,381 | 62,206 |
| Financial liabilities | –8,301 | –7,471 |
| Book values | ||
|---|---|---|
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
| Loans to affiliated companies | 1,759 | 1,421 |
| Loans to participating interests | 1,955 | 552 |
| Mortgage loans | 42,831 | 51,399 |
| Loans and advance payments on policies | 12,051 | 13,011 |
| Other loans | 91,100 | 112,436 |
| Registered bonds | 7,056 | 4,394 |
| Reclassified bonds | 788,061 | 906,435 |
| Total | 944,813 | 1,089,649 |
On 1 July 2008, securities previously available for sale were reclassified according to IAS 39/50E as other loans. Overall, fixed-interest securities with a book value of € 2,129,552 thousand were reclassified. The corresponding revaluation reserve as at 30 June 2008 was minus € 98,208 thousand.
| Reclassified bonds Figures in € thousand |
2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|
| Book value as at 31.12. | 788,061 | 906,435 | 1,089,093 | 1,379,806 | 1,796,941 | 2,102,704 |
| Market value as at 31.12. | 812,455 | 928,162 | 981,394 | 1,345,580 | 1,732,644 | 1,889,108 |
| Change of current market value | 2,667 | 129,426 | –73,987 | 30,586 | 149,299 | –213,596 |
| Amortisation income/expense | 922 | 348 | 332 | 473 | 5,917 | –61 |
| Impairment | 0 | 0 | –25 | –8,043 | 0 | 0 |
| Contractual remaining term | Book values | ||
|---|---|---|---|
| Figures in € thousand | 31.12.2013 | 31.12.2012 | |
| Infinite | 10,542 | 15,592 | |
| Up to 1 year | 439,866 | 470,866 | |
| more than 1 year up to 5 years | 271,800 | 325,659 | |
| More than 5 years up to 10 years | 135,993 | 174,812 | |
| More than 10 years | 86,612 | 102,720 | |
| Total | 944,813 | 1,089,649 |
| Market values | ||
|---|---|---|
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
| Loans to affiliated companies | 1,759 | 1,421 |
| Loans to participating interests | 1,955 | 552 |
| Mortgage loans | 42,831 | 51,399 |
| Loans and advance payments on policies | 12,051 | 13,011 |
| Other loans | 91,100 | 112,436 |
| Registered bonds | 7,056 | 4,394 |
| Reclassified bonds | 812,455 | 928,162 |
| Total | 969,206 | 1,111,376 |
| Contractual remaining term | Market values | |
|---|---|---|
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
| Infinite | 10,542 | 15,592 |
| Up to 1 year | 424,837 | 442,338 |
| more than 1 year up to 5 years | 294,004 | 348,756 |
| More than 5 years up to 10 years | 145,356 | 193,334 |
| More than 10 years | 94,466 | 111,355 |
| Total | 969,206 | 1,111,376 |
| Impairment Figures in € thousand |
31.12.2013 | 31.12.2012 |
| Change in impairment for current year | 804 | 774 |
|---|---|---|
| of which reallocation affecting income | 804 | 774 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Deposits with credit institutions | 1,273,852 | 1,189,217 |
| Deposits with ceding companies | 126,761 | 129,755 |
| Total | 1,400,614 | 1,318,972 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| I. Reinsurance receivables | ||
| 1. Accounts receivables under reinsurance operations | 84,821 | 42,623 |
| 84,821 | 42,623 | |
| II. Other receivables | ||
| Receivables under the insurance business | ||
| 1. from policyholders | 270,650 | 303,466 |
| 2. from intermediaries | 77,463 | 73,186 |
| 3. from insurance companies | 21,262 | 19,171 |
| 369,374 | 395,824 | |
| Other receivables | ||
| Accrued interest and rent | 232,116 | 219,255 |
| Other tax refund claims | 37,776 | 57,113 |
| Receivables due from employees | 3,208 | 3,653 |
| Other receivables | 213,672 | 169,342 |
| 486,772 | 449,363 | |
| Total other receivables | 856,146 | 845,186 |
| Subtotal | 940,968 | 887,810 |
| of which receivables with a remaining term of | ||
| Up to 1 year | 913,004 | 849,324 |
| more than 1 year | 27,963 | 38,486 |
| 940,968 | 887,810 | |
| of which receivables with values not yet adjusted | ||
| up to 3 months overdue | 13,096 | 15,051 |
| more than 3 months overdue | 2,880 | 5,257 |
| III. Other assets | ||
| Accruals | 38,778 | 48,369 |
| 38,778 | 48,369 | |
| Total receivables incl. receivables under insurance business | 979,746 | 936,179 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Receivables from income tax | 69,881 | 55,098 |
| of which receivables with a remaining term of | ||
| Up to 1 year | 69,881 | 53,033 |
| more than 1 year | 0 | 2,065 |
| Cause of origin | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Figures in € thousand | ||
| Actuarial items | 7,099 | 1,904 |
| Social capital | 68,745 | 69,505 |
| Investments | 22,810 | 3,806 |
| Loss carried forward | 11,412 | 36,154 |
| Other | 32,150 | 17,240 |
| Total | 142,215 | 128,608 |
| of which not affecting income | 38,323 | 31,566 |
| Deferred tax assets figures in € thousand |
31.12.2013 | 31.12.2012 |
| Up to 1 year | 12,662 | 15,712 |
| more than 1 year | 129,554 | 112,896 |
| Total | 142,215 | 128,608 |
For losses carried forward in the amount of € 11,188 thousand, the deferred tax of € 1,911 thousand was not capitalised because utilisation will not be possible in the foreseeable future.
| 31.12.2013 | 31.12.2012 | |
|---|---|---|
| Number of authorised and issued no-par shares | 309,000,000 | 214,247,900 |
| of which fully paid up | 309,000,000 | 214,247,900 |
The subscribed capital and capital reserves correspond to values from the individual financial statements of UNIQA Insurance Group AG.
In the 2012 financial year, the share capital was increased to € 190,604,265 by means of a cash capital increase of € 47,619,048. The subscription price was € 10.50 per share. The cost of the capital increase, less tax effects, amounting to € 7,244 thousand was deducted directly from the capital reserves.
In order to create a streamlined Group structure that is conducive to stock exchange activities in preparation for the re-IPO, Austria Versicherungsverein auf Gegenseitigkeit Privatstiftung (Austria Privatstiftung) and Collegialität contributed their shareholdings in UNIQA Österreich Versicherungen AG to UNIQA Insurance Group AG, which is listed on the stock exchange, as part of a non-cash capital increase in September 2012. These companies received 23,643,635 new shares with voting rights in return.
On 9 October 2013, the Management Board of UNIQA Insurance Group AG, with the approval of the UNIQA Supervisory Board, set the offer and subscription price and the number of shares to be issued in connection with the capital increase (re-IPO). The offer and subscription price was set at € 8.00 per share, whereby a total of 94,752,100 shares (including 6,650,000 overallotment shares) were placed with investors.
The company's share capital was increased from € 214,247,900 to € 309,000,000 by the issue of a total of 94,752,100 shares. Each share grants one vote. The change in the number of voting rights and the increase of 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 its affiliated Group companies in Austria subscribed for a total of 564,315 new nopar value bearer shares at a discount of 20 per cent to the offer and subscription price.
The new shares are admitted for trading in the prime market segment of official trading at the Vienna Stock Exchange.
The cost of the capital increase, less tax effects, amounting to € 32,691 thousand was deducted directly from the capital reserves.
According to a resolution made by the Annual General Meeting on 27 May 2013, the Management Board is authorised, with the approval of the Supervisory Board, to increase the share capital by a total of up to € 12,371,850 through the issue of up to 12,371,850 bearer or registered shares with voting rights in return for cash contributions or contributions in kind on one or more occasions up to and including 30 June 2018.
Unrealised capital gains and losses from the revaluation of investments available for sale affected the revaluation reserve, with deferred participation in profits (for life insurance) and deferred taxes taken into consideration.
Actuarial profit and loss from pension and severance payment provisions was posted as "actuarial profit and loss from performance-based pension commitments" after deducting deferred policyholder profit participation and deferred taxes.
The business development due to organic growth and acquisitions influences the capital requirement of the UNIQA Group. In the context of Group controlling, the appropriate coverage of the solvency requirement on a consolidated basis is constantly monitored.
As at 31 December 2013, the adjusted equity amounted to € 3,290,202 thousand (2012: € 2,446,817 thousand). In ascertaining the adjusted equity, non-tangible economic goods (especially goodwill) and shares in banks and insurance companies are deducted from the equity and various forms of hybrid capital (especially supplemental capital) and latent reserves in investments (especially in real estate) are added.
With a statutory requirement for adjusted equity of € 1,145,891 thousand (2012: € 1,132,671 thousand), the statutory requirements were exceeded by € 2,144,311 thousand (2012: € 1,314,146 thousand), resulting in a coverage rate of 287.1 per cent (2012: 216.0 per cent). With the change to Section 81h paragraph 2 of the Insurance Supervisory Act, the volatility reserve was added as part of the available capital as of the 3rd quarter of 2008. This increased the adjusted equity by € 103,767 thousand (2012: € 142,564 thousand).
The adjusted equity base is ascertained on the basis of the available consolidated financial statements (produced in accordance with Section 80b of the Insurance Supervisory Act).
| 31.12.2013 31.12.2012 |
|---|
| 3,290,202 2,446,817 |
| 3,186,435 2,304,253 |
Until 27 November 2015, the Management Board is also authorised to purchase treasury shares amounting to no more than 10 per cent of the share capital, and again utilising the 10 per cent limit, both via the stock exchange and over the counter disapplying the shareholders' proportional right of amendment. During the financial year and in the previous year, none of the company's own shares were acquired through the stock exchange. At the reporting date, own shares are accounted for as follows:
| 31.12.2013 | 31.12.2012 | |
|---|---|---|
| Shares held by: | ||
| UNIQA Insurance Group AG | ||
| Acquisition costs in € 000 | 10,857 | 10,857 |
| Number of shares | 819,650 | 819,650 |
| Share of subscribed capital in % | 0.27 | 0.38 |
In the figure for "earnings per share", the consolidated profit is set against the average number of ordinary shares in circulation.
| Earnings per share | 2013 | 2012 |
|---|---|---|
| Consolidated profit in € thousand | 283,447 | 127,120 |
| Own shares as at 31st. Dec. | 819,650 | 819,650 |
| Average number of shares in circulation | 235,294,119 | 169,599,813 |
| Earnings per share (in €)1) | 1.20 | 0.75 |
| Dividend per share2) | 0.35 | 0.25 |
| Dividend payment in € thousand2) | 107,863 | 53,357 |
1) Calculated on the basis of the consolidated profit of the year.
2) Subject to the decision to be taken in the Annual General Meeting.
The diluted earnings per share are equal to the undiluted earnings per share in the financial year and in the previous year.
| Total | 61,362 | –130,257 |
|---|---|---|
| Deferred tax | 50,765 | –132,671 |
| Effective tax | 10,596 | 2,415 |
| Change in the tax amounts included in the equity without affecting income Figures in € thousand |
31.12.2013 | 31.12.2012 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| In revaluation reserve | 1,188 | 1,702 |
| In actuarial gains and losses on defined benefit plans | 0 | –1 |
| In balance sheet profit | 3,641 | 1,424 |
| In other equity | 17,381 | 17,525 |
| Total | 22,210 | 20,651 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Supplementary capital | 600,000 | 450,000 |
In July 2003, UNIQA Insurance Group AG issued partial debentures with a face value of € 45,000 thousand and UNIQA Österreich Versicherungen AG issued partial debentures with a face value of € 155,000 thousand for deposited supplementary capital according to Section 73c paragraph 2 of the Austrian Insurance Supervisory Act. In the 4th quarter of 2013, these supplementary capital bonds with a face value of € 200,000 thousand were called in and repurchased.
In December 2006, UNIQA Insurance Group AG issued bearer debentures with a face value of € 150,000 thousand for deposited supplementary capital according to Section 73c paragraph 2 of the Austrian Insurance Supervisory Act. According to the 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 five 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 face value of € 100,000 thousand for deposited supplementary capital according to Section 73c paragraph 2 of the Austrian Insurance Supervisory Act. According to the 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 five 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 with a volume of € 350 million with institutional investors in Europe. The bond has a term of 30 years and can be called in after ten years at the earliest. The coupon is 6.875 per cent per year. The supplementary capital loan meets the current supervisory requirements for recognition as own funds (supplementary capital under Solvency I) and the foreseeable requirements for recognition as own funds under the Solvency II regime expected to come into force in 2016. The issue also served to replace older supplementary capital bonds from Austrian insurance group companies and to strengthen and optimise UNIQA's capital base and capital structure in the long term in preparation for Solvency II. The supplementary capital bond has been listed at the Stock Exchange in Luxembourg since the end of July. The issuing rate was set at 100 per cent.
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Property and casualty insurance | ||
| Gross | 604,573 | 596,152 |
| Reinsurers' share | –14,592 | –9,250 |
| 589,981 | 586,902 | |
| Health insurance | ||
| Gross | 17,413 | 21,014 |
| Reinsurers' share | –51 | –619 |
| 17,362 | 20,395 | |
| In the Consolidated Financial Statements | ||
| Gross | 621,986 | 617,165 |
| Reinsurers' share | –14,643 | –9,869 |
| Total (fully consolidated values) | 607,343 | 607,297 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Property and casualty insurance | ||
| Gross | 13,154 | 12,310 |
| Reinsurers' share | –383 | –371 |
| 12,772 | 11,939 | |
| Health insurance | ||
| Gross | 2,327,656 | 2,219,667 |
| Reinsurers' share | –985 | –1,091 |
| 2,326,671 | 2,218,575 | |
| Life insurance | ||
| Gross | 14,068,618 | 13,926,212 |
| Reinsurers' share | –412,018 | –432,917 |
| 13,656,600 | 13,493,296 | |
| In the Consolidated Financial Statements | ||
| Gross | 16,409,428 | 16,158,189 |
| Reinsurers' share | –413,385 | –434,379 |
| Total (fully consolidated values) | 15,996,043 | 15,723,810 |
| For Figures in percent |
Health insurance acc. to SFAS 60 |
Life insurance acc. to SFAS 120 |
|---|---|---|
| 2013 | ||
| For actuarial provision | 3.50 –5.50 | 1.75–4.00 |
| For deferred acquisition costs | 3.50 –5.50 | 3.03–3.28 |
| 2012 | ||
| For actuarial provision | 3.50 –5.50 | 1.75–4.00 |
| For deferred acquisition costs | 3.50 –5.50 | 3.76 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Property and casualty insurance | ||
| Gross | 2,054,700 | 2,056,950 |
| Reinsurers' share | –112,623 | –148,311 |
| 1,942,077 | 1,908,640 | |
| Health insurance | ||
| Gross | 169,787 | 168,349 |
| Reinsurers' share | –32 | –27 |
| 169,756 | 168,322 | |
| Life insurance | ||
| Gross | 143,395 | 140,542 |
| Reinsurers' share | –10,965 | –11,425 |
| 132,429 | 129,117 | |
| In the Consolidated Financial Statements | ||
| Gross | 2,367,882 | 2,365,841 |
| Reinsurers' share | –123,620 | –159,763 |
| Total (fully consolidated values) | 2,244,262 | 2,206,078 |
Provisions for outstanding claims developed in the property and casualty insurance as follows:
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| 1. Provisions for outstanding claims as at 1 Jan. | ||
| a) Gross | 2,056,950 | 2,157,714 |
| b) Reinsurers' share | –148,311 | –193,749 |
| c) Retention | 1,908,640 | 1,963,965 |
| 2. Plus (retained) claims expenditures | ||
| a) Losses of the current year | 1,547,165 | 1,494,954 |
| b) Losses of the previous year | –104,311 | –78,697 |
| c) Total | 1,442,854 | 1,416,257 |
| 3. Less (retained) losses paid | ||
| a) Losses of the current year | –758,952 | –756,385 |
| b) Losses of the previous year | –640,675 | –547,151 |
| c) Total | –1,399,627 | –1,303,536 |
| 4. Foreign currency translation | –10,036 | 14,507 |
| 5. Change in consolidation scope | 0 | –182,674 |
| 6. Other changes | 246 | 121 |
| 7. Provisions for outstanding claims as at 31 Dec. | ||
| a) Gross | 2,054,700 | 2,056,950 |
| b) Reinsurers' share | –112,623 | –148,311 |
| c) Retention | 1,942,077 | 1,908,640 |
| Claims payments Figures in € thousand |
2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Financial year | 486,350 | 486,339 | 517,335 | 578,833 | 617,120 | 708,441 | 773,807 | 783,463 | 744,380 | 806,151 | 839,843 | |
| 1 year later | 744,024 | 752,582 | 802,439 | 880,122 | 955,425 1,075,631 1,169,683 1,168,414 1,121,377 1,202,540 | |||||||
| 2 years later | 802,700 | 821,451 | 873,117 | 962,093 1,039,281 1,168,835 1,273,370 1,265,613 1,236,019 | ||||||||
| 3 years later | 829,483 | 852,069 | 902,266 1,000,724 1,082,443 1,214,945 1,335,351 1,315,773 | |||||||||
| 4 years later | 846,226 | 870,842 | 921,202 1,025,679 1,116,551 1,243,007 1,363,744 | |||||||||
| 5 years later | 858,678 | 883,217 | 937,803 1,039,389 1,135,449 1,264,760 | |||||||||
| 6 years later | 865,880 | 894,068 | 947,879 1,051,800 1,150,472 | |||||||||
| 7 years later | 871,887 | 899,612 | 959,008 1,062,050 | |||||||||
| 8 years later | 878,330 | 904,932 | 966,729 | |||||||||
| 9 years later | 883,290 | 911,651 | ||||||||||
| 10 years later | 887,501 | |||||||||||
| Cumulated payments and provision for outstanding claims figures in € thousand |
2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | |
| Financial year | 910,433 | 944,353 1,028,050 1,134,143 1,228,427 1,337,778 1,461,317 1,445,001 1,418,522 1,526,757 1,590,115 | ||||||||||
| 1 year later | 923,149 | 962,319 1,027,048 1,137,782 1,204,487 1,328,775 1,460,052 1,445,763 1,420,156 1,523,628 | ||||||||||
| 2 years later | 926,874 | 961,355 1,025,447 1,120,611 1,204,950 1,340,409 1,467,606 1,451,877 1,424,182 | ||||||||||
| 3 years later | 922,191 | 960,499 1,003,981 1,119,103 1,205,807 1,342,815 1,463,717 1,440,430 | ||||||||||
| 4 years later | 918,946 | 958,968 1,002,057 1,117,972 1,214,756 1,340,974 1,460,077 | ||||||||||
| 5 years later | 910,797 | 945,122 1,003,763 1,118,282 1,222,454 1,339,844 | ||||||||||
| 6 years later | 909,754 | 944,907 1,005,652 1,112,631 1,225,711 | ||||||||||
| 7 years later | 912,829 | 944,137 1,005,567 1,114,355 | ||||||||||
| 8 years later | 911,894 | 945,306 1,010,073 | ||||||||||
| 9 years later | 912,669 | 947,711 | ||||||||||
| 10 years later | 914,661 | |||||||||||
| Run-off | –1,992 | –2,404 | –4,506 | –1,724 | –3,257 | 1,130 | 3,640 | 11,447 | –4,026 | 3,129 | 1,435 | |
| Run-off for accident years before 2003 |
21,841 | |||||||||||
| Total run-off | 23,276 | |||||||||||
| Provision for outstanding claims | 27,160 | 36,060 | 43,344 | 52,305 | 75,239 | 75,084 | 96,333 | 124,657 | 188,163 | 321,088 | 750,271 1,789,706 | |
| Provision for outstanding claims for accident years before 2003 |
226,629 | |||||||||||
| Plus other reserve components (internal claims regulation costs, etc.) |
38,365 | |||||||||||
| Provisions for outstanding claims (gross) as at 31.12.2013 |
2,054,700 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Property and casualty insurance | ||
| Gross | 34,228 | 32,873 |
| Reinsurers' share | 0 | 0 |
| 34,228 | 32,873 | |
| Health insurance | ||
| Gross | 54,427 | 54,225 |
| Reinsurers' share | 0 | 0 |
| 54,427 | 54,225 | |
| Life insurance | ||
| Gross | 292,578 | 513,698 |
| Reinsurers' share | 0 | 0 |
| 292,578 | 513,698 | |
| In the Consolidated Financial Statements | ||
| Gross | 381,233 | 600,796 |
| Reinsurers' share | 0 | 0 |
| Total (fully consolidated values) | 381,233 | 600,796 |
| of which profit-unrelated (retention) | 46,479 | 44,578 |
| of which profit-related (retention) | 334,753 | 556,218 |
| Gross | 31.12.2013 | 31.12.2012 |
| Figures in € thousand | ||
| a) Provision for profit-unrelated premium refunds | 46,479 | 44,578 |
| of which property and casualty insurance | 33,648 | 31,893 |
| of which health insurance | 10,108 | 10,298 |
| of which life insurance | 2,723 | 2,388 |
| b) Provision for profit-related premium refunds and /or policyholder profit | ||
| participation | 218,323 | 198,857 |
| of which property and casualty insurance | 580 | 981 |
| of which health insurance | 44,319 | 43,927 |
| of which life insurance | 173,424 | 153,949 |
| Deferred profit participation | 116,430 | 357,361 |
| of which health insurance | 0 | 0 |
| of which life insurance | 116,430 | 357,361 |
| Total (fully consolidated values) | 381,233 | 600,796 |
| Gross | 2013 | 2012 |
| Figures in € thousand a) Provision for profit-unrelated premium refunds, profit-related premium refunds |
||
| and policyholder profit participation | ||
| As at 1.1. | 243,435 | 237,477 |
| Changes due to: | ||
| Other changes | 21,367 | 5,958 |
| As at 31.12. | 264,802 | 243,435 |
| b) Deferred profit participation | ||
| As at 1.1. | 357,361 | –178,158 |
| Changes due to: | ||
| fluctuation in value, securities available for sale | –251,708 | 589,950 |
| actuarial gains and losses on defined benefit plans | –4,579 | –21,084 |
| revaluations affecting income | 15,357 | –33,347 |
| As at 31.12. | 116,430 | 357,361 |
| Gross | Provision for unearned premiums |
Actuarial provisions |
Provision for outstanding claims |
Provision for profit unrelated premium refunds |
Provision for profit related premium refunds and /or policyholder profit participation |
Other actuarial provisions |
Group total |
|---|---|---|---|---|---|---|---|
| Figures in € thousand | |||||||
| Property and casualty insurance | |||||||
| As at 31.12.2012 | 596,152 | 12,310 | 2,056,950 | 31,893 | 981 | 22,600 | 2,720,885 |
| Exchange rate differences | –8,037 | –230 | –11,037 | –25 | –79 | –1,164 | –20,571 |
| Change in consolidation scope | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Portfolio changes | 2,117 | 0 | 2,117 | ||||
| Additions | 1,333 | 3,077 | 2,162 | 28,254 | 34,826 | ||
| Disposals | –260 | –1,296 | –2,483 | –30,515 | –34,554 | ||
| Premiums written | 2,281,001 | 2,281,001 | |||||
| Premiums earned | –2,266,659 | –2,266,659 | |||||
| Claims in reporting year | 1,618,727 | 1,618,727 | |||||
| Claims payments in reporting year | –803,414 | –803,414 | |||||
| Change in claims from previous years | –127,368 | –127,368 | |||||
| Claims payments in previous years | –679,159 | –679,159 | |||||
| As at 31.12.2013 | 604,573 | 13,154 | 2,054,700 | 33,648 | 580 | 19,175 | 2,725,831 |
| Health insurance | |||||||
| As at 31.12.2012 | 21,014 | 2,219,667 | 168,349 | 10,298 | 43,927 | 885 | 2,464,140 |
| Exchange rate differences | –390 | –192 | –240 | –5 | 0 | –2 | –828 |
| Change in consolidation scope | 0 | 0 | 0 | 0 | 0 | 0 | |
| Portfolio changes | 356 | 491 | 0 | 848 | |||
| Additions | 121,290 | 8,491 | 17,125 | 198 | 147,105 | ||
| Disposals | –13,109 | –8,676 | –16,734 | –276 | –38,795 | ||
| Premiums written | 888,189 | 888,189 | |||||
| Premiums earned | –891,756 | –891,756 | |||||
| Claims in reporting year | 705,339 | 705,339 | |||||
| Claims payments in reporting year | –502,286 | –502,286 | |||||
| Change in claims from previous years | –78,041 | –78,041 | |||||
| Claims payments in previous years | –123,826 | –123,826 | |||||
| As at 31.12.2013 | 17,413 | 2,327,656 | 169,787 | 10,108 | 44,319 | 806 | 2,570,088 |
| Life insurance | |||||||
| As at 31.12.2012 | 0 | 13,926,212 | 140,542 | 2,388 | 511,310 | 25,444 | 14,605,896 |
| Exchange rate differences | –20,154 | –556 | –4 | –948 | –80 | –21,741 | |
| Change in consolidation scope | 0 | 0 | 0 | 0 | |||
| Portfolio changes | 192,107 | 302 | –17,799 | 732 | 175,343 | ||
| Additions | 111,555 | 296 | 87,240 | 13,274 | 212,366 | ||
| Disposals | –141,103 | 42 | –289,948 | –13,169 | –444,178 | ||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims in reporting year | 1,794,970 | 1,794,970 | |||||
| Claims payments in reporting year | –1,630,210 | –1,630,210 | |||||
| Change in claims from previous years | 34,914 | 34,914 | |||||
| Claims payments in previous years | –196,567 | –196,567 | |||||
| As at 31.12.2013 | 0 | 14,068,618 | 143,395 | 2,723 | 289,855 | 26,201 | 14,530,791 |
| Group total | |||||||
| As at 31.12.2012 | 617,165 | 16,158,189 | 2,365,841 | 44,578 | 556,218 | 48,929 | 19,790,921 |
| Exchange rate differences | –8,427 | –20,575 | –11,833 | –34 | –1,027 | –1,245 | –43,141 |
| Change in consolidation scope | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Portfolio changes | 2,474 | 192,107 | 793 | –17,799 | 732 | 178,308 | |
| Additions | 234,179 | 11,865 | 106,526 | 41,727 | 394,297 | ||
| Disposals | –154,471 | –9,930 | –309,165 | –43,961 | –517,527 | ||
| Premiums written | 3,169,189 | 3,169,189 | |||||
| Premiums earned | –3,158,416 | –3,158,416 | |||||
| Claims in reporting year | 4,119,036 | 4,119,036 | |||||
| Claims payments in reporting year | –2,935,910 | –2,935,910 | |||||
| Change in claims from previous years | –170,495 | –170,495 | |||||
| Claims payments in previous years | –999,552 | –999,552 | |||||
| As at 31.12.2013 | 621,986 | 16,409,428 | 2,367,881 | 46,479 | 334,754 | 46,182 | 19,826,710 |
| Reinsurers' share | Provision for unearned premiums |
Actuarial provisions |
Provision for outstanding claims |
Provision for profit unrelated premium refunds |
Provision for profit related premium refunds and /or policyholder profit participation |
Other actuarial provisions |
Group total |
|---|---|---|---|---|---|---|---|
| Figures in € thousand | |||||||
| Property and casualty insurance | |||||||
| As at 31.12.2012 | 9,250 | 371 | 148,311 | 0 | 0 | 1,955 | 159,887 |
| Exchange rate differences | –166 | –7 | –1,001 | –7 | –1,182 | ||
| Change in consolidation scope | 0 | 0 | 0 | 0 | 0 | ||
| Portfolio changes | 2,633 | 411 | 3,044 | ||||
| Additions | 18 | 0 | 62 | 80 | |||
| Disposals | 0 | 0 | –259 | –259 | |||
| Premiums written | 127,919 | 127,919 | |||||
| Premiums earned | –125,043 | –125,043 | |||||
| Claims in reporting year | 70,905 | 70,905 | |||||
| Claims payments in reporting year | –44,462 | –44,462 | |||||
| Change in claims from previous years | –23,057 | –23,057 | |||||
| Claims payments in previous years | –38,484 | –38,484 | |||||
| As at 31.12.2013 | 14,592 | 383 | 112,623 | 0 | 0 | 1,750 | 129,348 |
| Health insurance | |||||||
| As at 31.12.2012 | 619 | 1,091 | 27 | 0 | 0 | 0 | 1,737 |
| Exchange rate differences | –37 | –1 | –38 | ||||
| Change in consolidation scope | 0 | 0 | |||||
| Portfolio changes | 0 | ||||||
| Additions | 0 | ||||||
| Disposals | –106 | –106 | |||||
| Premiums written | 2,332 | 2,332 | |||||
| Premiums earned | –2,863 | –2,863 | |||||
| Claims in reporting year | 0 | 0 | |||||
| Claims payments in reporting year | 7 | 7 | |||||
| Change in claims from previous years | –1 | –1 | |||||
| Claims payments in previous years | –1 | –1 | |||||
| As at 31.12.2013 | 51 | 985 | 32 | 0 | 0 | 0 | 1,067 |
| Life insurance | |||||||
| As at 31.12.2012 | 0 | 432,917 | 11,425 | 0 | 0 | –119 | 444,223 |
| Exchange rate differences | –60 | –28 | 0 | –88 | |||
| Change in consolidation scope | 0 | 0 | 0 | ||||
| Portfolio changes | –20,115 | –658 | –20,774 | ||||
| Additions | 1,576 | 0 | 1,576 | ||||
| Disposals | –2,300 | 0 | –27 | –2,328 | |||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims in reporting year | 20,072 | 20,072 | |||||
| Claims payments in reporting year | –18,388 | –18,388 | |||||
| Change in claims from previous years | 2,905 | 2,905 | |||||
| Claims payments in previous years | –4,362 | –4,362 | |||||
| As at 31.12.2013 | 0 | 412,018 | 10,965 | 0 | 0 | –147 | 422,837 |
| Group total | |||||||
| As at 31.12.2012 | 9,869 | 434,379 | 159,763 | 0 | 0 | 1,836 | 605,847 |
| Exchange rate differences | –204 | –66 | –1,030 | 0 | –7 | –1,307 | |
| Change in consolidation scope | 0 | 0 | 0 | 0 | 0 | 0 | |
| Portfolio changes | 2,633 | –20,115 | –248 | –17,729 | |||
| Additions | 1,594 | 0 | 62 | 1,656 | |||
| Disposals | –2,407 | 0 | –287 | –2,693 | |||
| Premiums written | 130,251 | 130,251 | |||||
| Premiums earned | –127,906 | –127,906 | |||||
| Claims in reporting year | 90,978 | 90,978 | |||||
| Claims payments in reporting year | –62,843 | –62,843 | |||||
| Change in claims from previous years | –20,153 | –20,153 | |||||
| Claims payments in previous years | –42,847 | –42,847 |
As at 31.12.2013 14,643 413,385 123,620 0 0 1,604 553,252
| Retention | Provision for unearned premiums |
Actuarial provisions |
Provision for outstanding claims |
Provision for profit unrelated premium refunds |
Provision for profit related premium refunds and /or policyholder profit participation |
Other actuarial provisions |
Group total |
|---|---|---|---|---|---|---|---|
| Figures in € thousand | |||||||
| Property and casualty insurance | |||||||
| As at 31.12.2012 | 586,903 | 11,939 | 1,908,640 | 31,893 | 981 | 20,645 | 2,560,999 |
| Exchange rate differences | –7,870 | –223 | –10,036 | –25 | –79 | –1,156 | –19,390 |
| Change in consolidation scope | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Portfolio changes | –516 | –411 | 0 | 0 | –927 | ||
| Additions | 1,315 | 3,077 | 2,162 | 28,192 | 34,746 | ||
| Disposals | –260 | –1,296 | –2,483 | –30,256 | –34,295 | ||
| Premiums written | 2,153,082 | 2,153,082 | |||||
| Premiums earned | –2,141,617 | –2,141,617 | |||||
| Claims in reporting year | 1,547,822 | 1,547,822 | |||||
| Claims payments in reporting year | –758,952 | –758,952 | |||||
| Change in claims from previous years | –104,311 | –104,311 | |||||
| Claims payments in previous years | –640,675 | –640,675 | |||||
| As at 31.12.2013 | 589,982 | 12,772 | 1,942,077 | 33,648 | 580 | 17,425 | 2,596,483 |
| Health insurance | |||||||
| As at 31.12.2012 | 20,395 | 2,218,575 | 168,322 | 10,298 | 43,927 | 885 | 2,462,403 |
| Exchange rate differences | –353 | –192 | –239 | –5 | 0 | –2 | –791 |
| Change in consolidation scope | 0 | 0 | 0 | 0 | 0 | 0 | |
| Portfolio changes | 356 | 491 | 0 | 0 | 0 | 848 | |
| Additions | 121,290 | 8,491 | 17,125 | 198 | 147,105 | ||
| Disposals | –13,003 | –8,676 | –16,734 | –276 | –38,689 | ||
| Premiums written | 885,856 | 885,856 | |||||
| Premiums earned | –888,893 | –888,893 | |||||
| Claims in reporting year | 705,339 | 705,339 | |||||
| Claims payments in reporting year | –502,293 | –502,293 | |||||
| Change in claims from previous years | –78,040 | –78,040 | |||||
| Claims payments in previous years | –123,825 | –123,825 | |||||
| As at 31.12.2013 | 17,362 | 2,326,671 | 169,756 | 10,108 | 44,319 | 806 | 2,569,021 |
| Life insurance | |||||||
| As at 31.12.2012 | 0 | 13,493,296 | 129,116 | 2,388 | 511,310 | 25,563 | 14,161,673 |
| As at 31.12.2012 | 0 | 13,493,296 | 129,116 | 2,388 | 511,310 | 25,563 | 14,161,673 |
|---|---|---|---|---|---|---|---|
| Exchange rate differences | –20,094 | –527 | –4 | –948 | –80 | –21,653 | |
| Change in consolidation scope | 0 | 0 | 0 | 0 | 0 | ||
| Portfolio changes | 212,222 | 961 | 0 | –17,799 | 732 | 196,116 | |
| Additions | 109,979 | 296 | 87,240 | 13,274 | 210,790 | ||
| Disposals | –138,802 | 42 | –289,948 | –13,142 | –441,850 | ||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims in reporting year | 1,774,898 | 1,774,898 | |||||
| Claims payments in reporting year | –1,611,822 | –1,611,822 | |||||
| Change in claims from previous years | 32,009 | 32,009 | |||||
| Claims payments in previous years | –192,205 | –192,205 | |||||
| As at 31.12.2013 | 0 | 13,656,600 | 132,429 | 2,723 | 289,855 | 26,347 | 14,107,955 |
| Group total | |||||||
|---|---|---|---|---|---|---|---|
| As at 31.12.2012 | 607,296 | 15,723,810 | 2,206,078 | 44,578 | 556,218 | 47,093 | 19,185,074 |
| Exchange rate differences | –8,222 | –20,509 | –10,803 | –34 | –1,027 | –1,238 | –41,833 |
| Change in consolidation scope | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Portfolio changes | –160 | 212,222 | 1,041 | 0 | –17,799 | 732 | 196,037 |
| Additions | 232,585 | 11,865 | 106,526 | 41,665 | 392,641 | ||
| Disposals | –152,065 | –9,930 | –309,165 | –43,674 | –514,834 | ||
| Premiums written | 3,038,938 | 3,038,938 | |||||
| Premiums earned | –3,030,510 | –3,030,510 | |||||
| Claims in reporting year | 4,028,058 | 4,028,058 | |||||
| Claims payments in reporting year | –2,873,067 | –2,873,067 | |||||
| Change in claims from previous years | –150,342 | –150,342 | |||||
| Claims payments in previous years | –956,705 | –956,705 | |||||
| As at 31.12.2013 | 607,343 | 15,996,043 | 2,244,262 | 46,479 | 334,753 | 44,578 | 19,273,458 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Gross | 5,299,625 | 4,983,029 |
| Reinsurers' share | –389,206 | –408,818 |
| Total | 4,910,420 | 4,574,212 |
As a general rule, the valuation of the technical 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 market values. The reinsurers' share is offset by deposits payable in the same amount.
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Loan liabilities | 18,535 | 27,494 |
| Up to 1 year | 1,126 | 2,690 |
| more than 1 year up to 5 years | 1 | 9,088 |
| more than 5 years | 17,407 | 15,716 |
| Total | 18,535 | 27,494 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Provisions for pension | 391,952 | 365,177 |
| Provision for severance payments | 194,805 | 201,443 |
| Total | 586,757 | 566,620 |
| Figures in € thousand | 2013 | 2012 |
| As at 1.1. | 566,620 | 593,019 |
| Change in consolidation scope | 0 | –123,915 |
| Currency translation changes | –11 | 25 |
| Withdrawals for payments | –69,805 | –79,740 |
| Expenditure in the financial year | 56,853 | 44,778 |
| Actuarial profit and loss not affecting income | 33,100 | 132,453 |
| of which based on demographic assumptions | 265 | |
| of which based on financial assumptions | 22,532 | |
| of which experience based assumptions | 10,302 | |
| As at 31.12. | 586,757 | 566,620 |
| Average weighted remaining term | Pension schemes | Pension payments |
Severance payments |
|---|---|---|---|
| in years | 27.6 | 13.6 | 5.9 |
| Defined benefit obligation Figures in € thousand |
2013 | 2012 | |
|---|---|---|---|
| As at 1.1. | 630,834 | 652,122 | |
| Current service cost | 52,350 | 42,746 | |
| Interest cost | 18,265 | 21,125 | |
| Payments | –69,805 | –79,740 | |
| Disposal (including consolidated companies) | –15,069 | –128,307 | |
| Remeasurement on DBO - gain/loss | 32,997 | 122,888 | |
| of which based on demographic assumptions | 10,302 | 21,031 | |
| of which based on financial assumptions | 265 | –23 | |
| of which experience based assumptions | 22,429 | 101,879 | |
| As at 31.12. | 649,573 | 630,834 |
| Sensivity analysis figures in Percent |
Pension schemes Pension payments | Severance payments |
|
|---|---|---|---|
| Retirement age | |||
| Change in DBO (+3 years) | –6.8 | –1.5 | –3.9 |
| Average Remaining Life Expectancy | |||
| Change in DBO (+1 year) | 2.8 | 3.9 | |
| Change in DBO (-1 year) | –3.0 | –4.1 | |
| Technical rate of interest | |||
| Change in DBO (+1%) | –24.0 | –11.5 | –8.1 |
| Change in DBO (-1%) | 34.2 | 14.3 | 9.2 |
| Future Salary Increase Delta | |||
| Change in DBO (+0.75%) | 4.0 | 0.4 | 6.7 |
| Change in DBO (-0.75%) | –3.7 | –0.4 | –6.2 |
| Future Pension Increase | |||
| Change in DBO (+0.25%) | 4.1 | 2.8 | |
| Change in DBO (-0.25%) | –3.9 | –2.7 |
Active special policyholders with direct assurances to pension benefits, including members of the Management Board and leading executives in accordance with Section 80 paragraph 1 of the Stock Corporation Act, as well as active employees with direct assurances to pension benefits according to the "trade association recommendation for in-house and field sales staff" who, in 2008 and 2011, approved the offer to transfer existing vested pension rights to Valida Pension AG (formerly ÖPAG Pensionskassen AG) on the basis of concluded works agreements, are included in a contribution-based pension fund. The corresponding transfer amounts (the assurance cover) were paid to Valida Pension AG in 2008 and 2011 in accordance with Section 48 of the Pension Fund Act. For the purpose of guaranteeing the level of the pension fund pension according to the previous direct assurances to pension benefits, those entitled to vested rights have a claim to payment of a (one-time) final pension fund contribution at the time of pension eligibility. No contributions are made for the benefit phase.
The UNIQA Group's repositioning led to an expected reduction of staff, which is covered by provisions for social capital amounting to € 26,136 thousand (2012: € 49,147 thousand).
| Calculation factors applied Figures in percent |
2013 | 2012 | |
|---|---|---|---|
| Technical rate of interest | 3.00% | 3.25% | |
| Valorisation of wages and salaries | 3.00% | 3.00% | |
| Valorisation of pensions | 2.00% | 2.00% | |
| dependent on years of | dependent on years of | ||
| Employee turnover rate | service | service | |
| AVÖ 2008 P – | AVÖ 2008 P – | ||
| Accounting principles | Pagler & Pagler / employees | Pagler & Pagler / employees | |
| Specification of pension expenditures for pensions and similar commitments included in the income statement Figures in € thousand |
31.12.2013 | 31.12.2012 | |
| Current service cost | 38,794 | 23,917 | |
| Interest cost | 18,259 | 20,871 |
| Income and expenditures due to budget changes | –201 | –10 |
|---|---|---|
| Total | 56,853 | 44,778 |
| Development of plan assets of pension provision | 2013 | |
| Market value of plan assets as at 1.1. | 64,214 |
| Interest income | 2,135 |
|---|---|
| Fund allocation | 8,586 |
| Payments | –10,244 |
| Periodic In/(Decrease) of OCI | –1,876 |
| Plan assets at fair value as at 31.12. | 62,816 |
| figures in Percent | |
|---|---|
| Bonds - Euro | 28.6 |
| Bonds - Euro High Yield | 5.1 |
| Corporate bonds - Euro | 18.1 |
| Shares - Euro | 8.3 |
| Shares - Non - Euro | 7.7 |
| Shares - Emerging Markets | 2.0 |
| Alternative investment securities | 3.1 |
| Real estate | 1.9 |
| Synthetic Cash | 3.3 |
| Bonds HTM / Term Deposit | 22.0 |
| Total | 100.0 |
Under the contribution-orientated company pension scheme, the employer pays the fixed amounts into company pension funds. The employer has satisfied his obligation by making these contributions.
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Contributions to company pension funds | 2,199 | 2,257 |
| Balance sheet values previous year |
Currency translation changes |
Change in consolidation scope |
Utilisation | Reversals | Transfers | Additions Balance sheet values financial year |
||
|---|---|---|---|---|---|---|---|---|
| Figures in € thousand | ||||||||
| Provision for anniversary payments | 15,449 | –2 | –508 | 473 | –437 | 0 | 368 | 15,343 |
| Provision for customer relations and marketing | 85,967 | –80 | 0 | –79,794 | –4,694 | 0 | 72,277 | 73,675 |
| Provision for variable components of remuneration | 25,412 | –2 | 0 | –24,938 | –472 | 0 | 27,485 | 27,485 |
| Provision for legal and consulting expenses | 8,724 | –173 | –248 | –4,607 | –583 | 0 | 7,606 | 10,720 |
| Provision for premium adjustment of insurance | ||||||||
| contracts | 8,952 | –191 | 0 | –4,699 | –8 | 0 | 5,299 | 9,354 |
| Provision for portfolio maintenance commission | 3,907 | –277 | 0 | –177 | 0 | 0 | –786 | 2,667 |
| Other provisions | 155,978 | –418 | –748 | –49,431 | –79,343 | 0 | 84,641 | 110,679 |
| Total | 304,389 | –1,144 | –1,504 | –163,172 | –85,536 | 0 | 196,890 | 249,924 |
In line with IAS 8 (previous year adjustment), provisions for unconsumed holidays and other personnel provisions were transferred to other liabilities.
Other provisions includes a provision of € 10,000 thousand for liabilities in connection with the sale of Mannheimer AG Holding (2012: € 60,000 thousand).
The provision for variable components of remuneration contains a provision for share-based remuneration of € 430 thousand. For more information on the underlying "Long Term Incentive Programme (LTI)" refer to Other disclosures (page 188).
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Other provisions with a high probability of utilisation (more than 90 percent) |
||
| up to 1year | 128,805 | 188,316 |
| more than 1 year up to 5 years | 11,726 | 7,137 |
| more than 5 years | 12,961 | 13,001 |
| 153,491 | 208,454 | |
| Other provisions with a lower probability of consumption (less than 90 percent) |
||
| up to 1year | 93,510 | 92,740 |
| more than 1 year up to 5 years | 2,899 | 2,183 |
| more than 5 years | 23 | 1,012 |
| 96,432 | 95,935 | |
| Total | 249,924 | 304,389 |
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| I. Reinsurance liabilities | ||
| 1. Deposits held under reinsurance business ceded | 797,171 | 836,815 |
| 2. Accounts payable under reinsurance operations | 36,885 | 50,591 |
| 834,056 | 887,405 | |
| II. Other payables | ||
| Liabilities under insurance business | ||
| Liabilities under direct insurance business | ||
| to policyholders | 116,486 | 150,400 |
| to intermediaries | 70,778 | 72,113 |
| to insurance companies | 6,811 | 10,528 |
| 194,076 | 233,041 | |
| Liabilities to credit institutions | 350 | 0 |
| Other liabilities | 262,006 | 337,603 |
| of which for taxes | 55,179 | 49,735 |
| of which for social security | 11,564 | 12,473 |
| of which from fund consolidation | 19,204 | 105,840 |
| Total other liabilities | 456,432 | 570,643 |
| Subtotal | 1,290,487 | 1,458,049 |
| of which liabilities with the remaining term of | ||
| Up to 1 year | 896,119 | 772,811 |
| more than 1 year up to 5 years | 4,378 | 8,622 |
| more than 5 years | 389,990 | 676,616 |
| 1,290,487 | 1,458,049 | |
| III. Other liabilities | ||
| Deferred income | 23,040 | 31,226 |
| Total payables and other liabilities | 1,313,527 | 1,489,275 |
The item "Deferred income" basically comprises the balance of the deferred income regarding the indirect business settlement.
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Liabilities from income tax | 40,712 14,187 |
28,623 |
| of which liabilities with the remaining term of | ||
| Up to 1 year | 15,200 | |
| more than 1 year up to 5 years | 26,525 | 13,423 |
| more than 5 years | 0 | 0 |
| Cause of origin Figures in € thousand |
31.12.2013 | 31.12.2012 |
|---|---|---|
| Actuarial items | 171,777 | 162,599 |
| Untaxed reserves | 35,591 | 36,451 |
| Investments | 68,462 | 116,512 |
| Other | 58,785 | 50,028 |
| Total | 334,616 | 365,590 |
| of which not affecting income | 64,099 | 108,108 |
| Deferred tax liabilities figures in € thousand |
31.12.2013 | 31.12.2012 |
|---|---|---|
| Up to 1 year | 56,551 | 35,347 |
| more than 1 year | 278,065 | 330,242 |
| Total | 334,616 | 365,590 |
| Direct business | 2013 | 2012 |
|---|---|---|
| Figures in € thousand | ||
| Property and casualty insurance | 2,553,745 | 2,480,889 |
| Health insurance | 937,572 | 909,147 |
| Life insurance | 1,614,051 | 1,391,809 |
| Total (fully consolidated values) | 5,105,368 | 4,781,845 |
| Of which written in: | ||
| Austria | 3,254,807 | 3,131,724 |
| other member states of the EU and other signatory states of the Treaty on the European Economic Area |
1,529,803 | 1,374,213 |
| Other countries | 320,758 | 275,908 |
| Total (fully consolidated values) | 5,105,368 | 4,781,845 |
| Indirect business | 2013 | 2012 |
| Figures in € thousand | ||
| Property and casualty insurance | 36,784 | 65,060 |
| Health insurance | 2 | 3 |
| Life insurance | 15,421 | 17,243 |
| Total (fully consolidated values) | 52,207 | 82,306 |
| Figures in € thousand | 2013 | 2012 |
| Total (fully consolidated values) | 5,157,576 | 4,864,151 |
| Premiums written in property and casualty insurance Figures in € thousand |
2013 | 2012 |
| Direct business | ||
| Fire and business interruption insurance | 247,932 | 238,562 |
| Household insurance | 140,524 | 133,001 |
| Other property insurance | 236,768 | 226,028 |
| Motor TPL insurance | 653,490 | 652,338 |
| Other motor insurance | 494,020 | 492,950 |
| Casualty insurance | 320,953 | 296,605 |
| Liability insurance | 237,162 | 227,037 |
| Legal expenses insurance | 73,633 | 69,404 |
| Marine, aviation and transport insurance | 81,353 | 77,746 |
| Other insurance | 67,910 | 67,219 |
| Total | 2,553,745 | 2,480,889 |
| Indirect business | ||
| Marine, aviation and transport insurance | 3,638 | 160 |
| Other insurance | 33,146 | 64,900 |
| Total | 36,784 | 65,060 |
| Total direct and indirect business | ||
| (fully consolidated values) | 2,590,529 | 2,545,949 |
| Reinsurance premiums ceded Figures in € thousand |
2013 | 2012 |
|---|---|---|
| Property and casualty insurance | 144,600 | 128,042 |
| Health insurance | 3,588 | 3,061 |
| Life insurance | 68,539 | 82,401 |
| Total (fully consolidated values) | 216,727 | 213,504 |
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| Property and casualty insurance | 2,438,850 | 2,394,449 |
| Gross | 2,577,007 | 2,528,286 |
| Reinsurers' share | –138,157 | –133,837 |
| Health insurance | 936,112 | 902,954 |
| Gross | 940,255 | 908,558 |
| Reinsurers' share | –4,143 | –5,604 |
| Life insurance | 1,560,927 | 1,326,505 |
| Gross | 1,629,493 | 1,408,871 |
| Reinsurers' share | –68,567 | –82,365 |
| Total (fully consolidated values) | 4,935,888 | 4,623,909 |
| Premiums earned in indirect business | 2013 | 2012 |
| Figures in € thousand | ||
| Posted immediately | 8,838 | 48,259 |
| posted after up to 1 year | 26,795 | 28,329 |
| posted after more than 1 year | 0 | 0 |
| Property and casualty insurance | 35,633 | 76,587 |
| Posted immediately | 2 | 3 |
| posted after up to 1 year | 0 | 0 |
| posted after more than 1 year | 0 | 0 |
| Health insurance | 2 | 3 |
| Posted immediately | 111 | 321 |
| posted after up to 1 year | 15,310 | 16,921 |
| posted after more than 1 year | 0 | 0 |
| Life insurance | 15,421 | 17,243 |
| Earnings from indirect business | 2013 | 2012 |
|---|---|---|
| Figures in € thousand | ||
| Property and casualty insurance | 7,093 | 7,863 |
| Health insurance | 7 | –62 |
| Life insurance | 470 | 1,567 |
| Total (fully consolidated values) | 7,570 | 9,368 |
| Reinsurance commission and profit shares from reinsurance business ceded Figures in € thousand |
2013 | 2012 |
|---|---|---|
| Property and casualty insurance | 10,799 | 8,850 |
| Health insurance | 683 | 8 |
| Life insurance | 16,820 | 26,873 |
| Total (fully consolidated values) | 28,302 | 35,731 |
| By segment | Property and casualty insurance |
Health insurance | Life insurance | Group | ||||
|---|---|---|---|---|---|---|---|---|
| Figures in € thousand | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 |
| I. Properties held as investments | 5,691 | 5,030 | 25,390 | 9,486 | 69,457 | 38,355 | 100,538 | 52,871 |
| II. Shares in associated companies | 3,056 | 4,723 | 8,679 | 8,389 | 10,494 | 3,387 | 22,229 | 16,499 |
| III. Variable-yield securities | 27,795 | 18,207 | 7,043 | 10,245 | 101,468 | 117,821 | 136,305 | 146,273 |
| 1. Available for sale | 27,369 | 17,492 | 6,520 | 8,029 | 96,695 | 97,330 | 130,583 | 122,852 |
| 2. At fair value through profit or loss | 426 | 715 | 523 | 2,216 | 4,773 | 20,491 | 5,722 | 23,422 |
| IV. Fixed interest securities | 64,099 | 60,697 | 37,381 | 53,316 | 374,331 | 454,689 | 475,811 | 568,702 |
| 1. Available for sale | 63,243 | 58,518 | 35,258 | 49,688 | 355,046 | 403,135 | 453,548 | 511,341 |
| 2. At fair value through profit or loss | 856 | 2,179 | 2,122 | 3,628 | 19,285 | 51,554 | 22,263 | 57,361 |
| V. Loans and other investments | 19,615 | 15,550 | 7,372 | 7,014 | 68,334 | 50,860 | 95,320 | 73,424 |
| 1. Loans | 3,174 | 4,251 | 5,331 | 6,429 | 30,327 | 25,885 | 38,832 | 36,565 |
| 2. Other investments | 16,441 | 11,299 | 2,041 | 585 | 38,007 | 24,975 | 56,488 | 36,859 |
| VI. Derivative financial instruments (held for trading) | 1,140 | 2,865 | 3,662 | 11,763 | 23,976 | –10,346 | 28,779 | 4,282 |
| VII. Expenditure for asset management, interest charges and | ||||||||
| other expenses | –22,781 | –21,880 | –10,128 | –7,630 | –46,071 | –41,103 | –78,981 | –70,613 |
| Total (fully consolidated values) | 98,614 | 85,191 | 79,399 | 92,583 | 601,989 | 613,664 | 780,002 | 791,437 |
Based on stage 3 valuations (hierarchy for instruments which are recognised at the reconciled current value), income from available-for-sale fixed-income securities included losses in the amount of € 18,812 thousand, while income from fixed-income securities valuated at current value in the income statement included profits in the amount of € 1,047 thousand.
| By income type | Ordinary income | Write-ups | Realised capital gains | ||||
|---|---|---|---|---|---|---|---|
| Figures in € thousand | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
| I. Properties held as investments | 75,008 | 79,610 | 0 | 2,816 | 93,168 | 23,185 | |
| II. Shares in associated companies | 20,023 | 16,503 | 0 | 0 | 2,207 | 4 | |
| III. Variable-yield securities | 57,621 | 53,838 | 19,643 | 69,557 | 133,030 | 92,597 | |
| 1. Available for sale | 52,369 | 48,354 | 3,954 | 13,173 | 129,707 | 88,861 | |
| 2. At fair value through profit or loss | 5,252 | 5,484 | 15,688 | 56,384 | 3,323 | 3,736 | |
| IV. Fixed interest securities | 529,973 | 550,063 | 104,221 | 113,131 | 80,740 | 182,248 | |
| 1. Available for sale | 509,601 | 530,828 | 87,591 | 58,573 | 78,384 | 180,997 | |
| 2. At fair value through profit or loss | 20,372 | 19,236 | 16,629 | 54,559 | 2,355 | 1,251 | |
| V. Loans and other investments | 83,440 | 87,417 | 11,134 | 1,770 | 3,760 | 4,374 | |
| 1. Loans | 36,371 | 44,772 | 1,160 | 6 | 3,353 | 3,550 | |
| 2. Other investments | 47,069 | 42,644 | 9,974 | 1,764 | 408 | 824 | |
| VI. Derivative financial instruments (held for trading) | –5,779 | –1,615 | 33,952 | 71,779 | 73,489 | 42,128 | |
| VII. Expenditure for asset management, interest charges and other | |||||||
| expenses | –78,981 | –70,613 | 0 | 0 | 0 | 0 | |
| Total (fully consolidated values) | 681,306 | 715,202 | 168,949 | 259,053 | 386,394 | 344,536 |
The updating of the value adjustment concerns both appreciation and depreciation of financial assets, excluding assets held for trading and financial assets at fair value through profit or loss. Interest income from impaired portfolio items amounts to € 45,935 thousand (2012: € 55,668 thousand). Net investment income of € 780,002 thousand includes realised and unrealised profits and losses amounting to € 98,696 thousand, which include currency losses of € 64,805 thousand. The effects mainly resulted from investments in US dollars, British pounds, Australian dollars, Russian roubles and Turkish lira. Investments in US dollars generated currency losses of € 30,647 thousand. The currency losses in the underlying US dollar securities amounted to approximately € 66,746 thousand. These losses were partly offset by gains from derivative financial instruments in the amount of € 36,099 thousand in connection with hedging transactions. In addition, negative currency effects amounting to € 6,698 thousand were recorded directly as equity.
The income from properties held as financial investments include rent revenue in the amount of € 114,898 thousand (2012: € 113,687 thousand) and direct operational expenses in the amount of € 39,890 thousand (2012: € 34,077 thousand).
| Of which securities, available for sale type of investment |
Ordinary income | Write-ups Realised capital gains |
|||||
|---|---|---|---|---|---|---|---|
| Figures in € thousand | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |
| III. Variable-yield securities | |||||||
| 1. Available for sale | 52,369 | 48,354 | 3,954 | 13,173 | 129,707 | 88,861 | |
| Shares in affiliated companies | 331 | 360 | 0 | 0 | 14,790 | 3,907 | |
| Shares | 27,478 | 14,940 | 118 | 2 | 55,911 | 40,187 | |
| Equity funds | 4,898 | 4,009 | 1,719 | 3,573 | 14,995 | 24,271 | |
| Debenture bonds not capital-guaranteed | 8,707 | 16,439 | 2,117 | 9,599 | 2,441 | 1,313 | |
| Other variable-yield securities | 912 | 1,215 | 0 | 0 | 0 | 0 | |
| Participating interests and other investments | 10,043 | 11,391 | 1 | 0 | 41,569 | 19,183 | |
| IV. Fixed interest securities | |||||||
| 1. Available for sale | |||||||
| Fixed-interest securities | 509,601 | 530,828 | 87,591 | 58,573 | 78,384 | 180,997 |
| Depreciation | Realised capital losses | Group | of which value adjustment | ||||
|---|---|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 |
| –63,723 | –52,132 | –3,916 | –608 | 100,538 | 52,871 | –11,226 | –6,714 |
| 0 | –8 | 0 | 0 | 22,229 | 16,499 | 0 | 0 |
| –52,254 | –66,806 | –21,735 | –2,913 | 136,305 | 146,273 | –29,999 | –11,457 |
| –36,507 | –25,799 | –18,940 | –1,738 | 130,583 | 122,852 | –29,999 | –11,457 |
| –15,746 | –41,007 | –2,795 | –1,174 | 5,722 | 23,422 | 0 | 0 |
| –232,788 | –138,901 | –6,334 | –137,840 | 475,811 | 568,702 | –39,208 | –25,827 |
| –215,899 | –121,300 | –6,131 | –137,756 | 453,548 | 511,341 | –39,208 | –25,827 |
| –16,890 | –17,600 | –204 | –84 | 22,263 | 57,361 | 0 | 0 |
| –1,431 | –8,825 | –1,582 | –11,311 | 95,320 | 73,424 | –804 | –774 |
| –804 | –774 | –1,248 | –10,989 | 38,832 | 36,565 | –804 | –774 |
| –628 | –8,051 | –335 | –322 | 56,488 | 36,859 | 0 | 0 |
| –39,470 | –27,182 | –33,413 | –80,827 | 28,779 | 4,282 | 0 | 0 |
| 0 | 0 | 0 | 0 | –78,981 | –70,613 | 0 | 0 |
| –389,666 | –293,855 | –66,981 | –233,499 | 780,002 | 791,437 | –81,236 | –44,772 |
| of which value adjustment | Group | Depreciation | ||||
|---|---|---|---|---|---|---|
| 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 |
| –29,999 | 122,852 | 130,583 | –1,738 | –18,940 | –25,799 | –36,507 |
| 0 | 3,926 | 13,386 | –341 | –1,736 | 0 | 0 |
| –10,470 | 45,514 | 57,542 | –216 | –13,019 | –9,399 | –12,946 |
| –5,941 | 23,925 | 13,540 | –1,066 | –349 | –6,862 | –7,724 |
| –10,500 | 23,101 | –2,169 | –116 | –2,685 | –4,134 | –12,749 |
| 0 | –1,185 | 912 | 0 | 0 | –2,400 | 0 |
| –3,088 | 27,570 | 47,373 | 0 | –1,151 | –3,004 | –3,089 |
| –39,208 | 511,341 | 453,548 | –137,756 | –6,131 | –121,300 | –215,899 |
| Realised capital losses |
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| a) Other actuarial income | 23,508 | 11,781 |
| Property and casualty insurance | 14,101 | 8,260 |
| Health insurance | 621 | 139 |
| Life insurance | 8,786 | 3,383 |
| b) Other non-actuarial income | 37,086 | 33,662 |
| Property and casualty insurance | 18,188 | 13,255 |
| Health insurance | 5,879 | 7,981 |
| Life insurance | 13,019 | 12,426 |
| of which | ||
| Services rendered | 7,379 | 4,014 |
| Changes in exchange rates | 13,217 | 12,162 |
| Other | 16,490 | 17,486 |
| c) Other income | 3,504 | 1,119 |
| from foreign currency conversion | 490 | 262 |
| from other | 3,014 | 857 |
| Total (fully consolidated values) | 64,097 | 46,562 |
| Gross | Reinsurers' share | Retention | ||||
|---|---|---|---|---|---|---|
| Figures in € thousand | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 |
| Property and casualty insurance | ||||||
| Expenditure for claims | ||||||
| Claims paid | 1,596,362 | 1,481,937 | –87,734 | –58,275 | 1,508,628 | 1,423,662 |
| Change in provision for outstanding claims | 48,797 | 161,921 | 35,963 | 13,335 | 84,761 | 175,256 |
| Total | 1,645,160 | 1,643,858 | –51,771 | –44,941 | 1,593,389 | 1,598,918 |
| Change in actuarial provisions | 1,051 | 312 | –14 | 19 | 1,036 | 331 |
| Change in other actuarial provisions | –979 | 732 | 0 | 0 | –979 | 732 |
| Expenditure for profit-unrelated and profit-related premium | ||||||
| refunds | 40,400 | 38,843 | 0 | 0 | 40,400 | 38,843 |
| Total amount of benefits | 1,685,632 | 1,683,746 | –51,785 | –44,922 | 1,633,846 | 1,638,824 |
| Health insurance | ||||||
| Expenditure for claims | ||||||
| Claims paid | 629,130 | 566,389 | –21 | –77 | 629,109 | 566,312 |
| Change in provision for outstanding claims | 5,176 | 53,386 | –4 | 4 | 5,172 | 53,390 |
| Total | 634,305 | 619,776 | –25 | –73 | 634,280 | 619,703 |
| Change in actuarial provisions | 108,219 | 111,097 | 106 | 113 | 108,325 | 111,210 |
| Change in other actuarial provisions | 318 | –4 | 0 | 0 | 318 | –4 |
| Expenditure for profit-related and profit-unrelated premium | ||||||
| refunds | 25,813 | 25,572 | 0 | 0 | 25,813 | 25,572 |
| Total amount of benefits | 768,655 | 756,440 | 81 | 40 | 768,736 | 756,480 |
| Life insurance | ||||||
| Expenditure for claims | ||||||
| Claims paid | 1,467,988 | 1,557,970 | –127,339 | –104,005 | 1,340,650 | 1,453,965 |
| Change in provision for outstanding claims | –3,161 | 68,495 | 255 | –796 | –2,906 | 67,699 |
| Total | 1,464,827 | 1,626,464 | –127,083 | –104,801 | 1,337,744 | 1,521,663 |
| Change in actuarial provisions | 33,951 | –298,574 | 60,152 | 34,422 | 94,103 | –264,151 |
| Change in other actuarial provisions | 738 | 1,559 | 0 | 0 | 738 | 1,559 |
| Expenditure for profit-unrelated and profit-related premium | ||||||
| refunds and/or (deferred) profit participation | 120,100 | 104,170 | 0 | 0 | 120,100 | 104,170 |
| Total amount of benefits | 1,619,616 | 1,433,620 | –66,931 | –70,379 | 1,552,685 | 1,363,241 |
| Total (fully consolidated values) | 4,073,903 | 3,873,806 | –118,635 | –115,261 | 3,955,268 | 3,758,545 |
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| Property and casualty insurance | ||
| a) Acquisition costs | ||
| Payments | 553,481 | 553,358 |
| Change in deferred acquisition costs | –4,927 | –6,736 |
| b) Other operating expenses | 265,627 | 249,028 |
| 814,180 | 795,650 | |
| Health insurance | ||
| a) Acquisition costs | ||
| Payments | 92,918 | 95,558 |
| Change in deferred acquisition costs | 45 | –7,194 |
| b) Other operating expenses | 69,725 | 50,220 |
| 162,688 | 138,584 | |
| Life insurance | ||
| a) Acquisition costs | ||
| Payments | 355,696 | 315,306 |
| Change in deferred acquisition costs | –51,263 | 5,509 |
| b) Other operating expenses | 104,590 | 99,956 |
| 409,023 | 420,771 | |
| Total (fully consolidated values) | 1,385,891 | 1,355,006 |
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| a) Other actuarial expenses | 89,521 | 83,653 |
| Property and casualty insurance | 38,666 | 28,465 |
| Health insurance | 6,796 | 4,739 |
| Life insurance | 44,058 | 50,450 |
| b) Other non-actuarial expenses | 30,186 | 39,311 |
| Property and casualty insurance | 21,219 | 24,204 |
| Health insurance | 434 | 271 |
| Life insurance | 8,533 | 14,836 |
| of which | ||
| Services rendered | 1,288 | 46 |
| Exchange rate losses | 7,372 | 14,414 |
| Mortor vehicle registration | 6,892 | 6,937 |
| Extraordinary tax on the financial sector (Hungary) | 0 | 5,664 |
| Other | 14,634 | 12,249 |
| c) Other expenses | 2,227 | 1,056 |
| For foreign currency translation | 1,474 | 162 |
| For other | 753 | 894 |
| Total (fully consolidated values) | 121,934 | 124,020 |
| Income tax Figures € thousand |
2013 | 2012 |
|---|---|---|
| Actual tax in reporting year | 60,614 | 33,304 |
| Actual tax in previous year | 2,641 | 412 |
| Deferred tax | 5,582 | 13,860 |
| Total (fully consolidated values) | 68,837 | 47,576 |
| Reconciliation statement Figures in € thousand |
2013 | 2012 | |
|---|---|---|---|
| A. Profit from ordinary activities | 305,614 | 204,176 | |
| B. Anticipated tax expenditure (A.*Group tax rate) | 76,403 | 51,044 | |
| Adjusted by tax effects from | |||
| 1. Tax-free investment income | –7,653 | –10,408 | |
| 2. Other | 86 | 6,941 | |
| Amortisation of goodwill | 0 | 3,767 | |
| Tax-neutral consolidation effect | –3,388 | 1,151 | |
| Other non-deductible expenses/other tax-exempt income | 13,007 | 8,175 | |
| Changes in tax rates | –1,796 | 146 | |
| Deviations in tax rates | –5,807 | –4,915 | |
| Taxes previous years | 2,641 | 412 | |
| Lapse of loss carried forward and other | –4,570 | –1,795 | |
| C. Income tax expenditure | 68,837 | 47,576 | |
| Average effective tax burden Figures in percent | 22.5 | 23.3 |
The basic applicable corporate income tax rate for all segments was 25 per cent. Deviating corporate tax rates arise in life insurances in which minimum taxation are applied with an assumed profit participation of 85 per cent.
Deferred taxes are calculated on the basis of the respective national tax rates. In 2013, these were between 9 per cent and 35 per cent. Account was taken of changes to tax rates resolved as of 31 December 2013.
| Personnel expenses1) | 2013 | 2012 |
|---|---|---|
| Figures in € thousand | ||
| Salaries and wages | 389,930 | 405,625 |
| Expenses for severance payments | 63 | 1,791 |
| Expenses for employee pensions | 28,091 | 30,063 |
| Expenditure on mandatory social security contributions as well as income-based charges | ||
| and compulsory contributions | 110,429 | 112,460 |
| Other social expenditures | 8,981 | 10,372 |
| Total | 537,494 | 560,312 |
| of which sales | 151,388 | 159,353 |
| of which administration | 355,487 | 363,421 |
| 1) The data are based on an IFRS valuation. | ||
| Average number of employees | 2013 | 2012 |
| Total | 14,277 | 14,795 |
| of which sales | 5,893 | 6,308 |
| of which administration | 8,384 | 8,487 |
| Figures in € thousand | 2013 | 2012 |
| Expenses for severance payments and employee pensions amounted to: | ||
| Members of the Management Board and executive employees, in accordance with | ||
| Section 80 paragraph 1 of the Stock Corporation Act | 8,352 | 11,292 |
Other employees 41,331 40,665
Both figures include the expenditure for pensioners and surviving dependants (basis: Austrian Commercial Code valuation). The indicated expenses were charged to the Group companies based on defined company processes.
For the period, expenses for remuneration of Management Board members of UNIQA Insurance Group AG amounted to € 4,923 thousand (2012: € 7,149 thousand). In the reporting year, former members of the Management Board and their surviving dependents received pensions of € 2,699 thousand (2012: €2,644 thousand).
The remuneration paid to the members of the Supervisory Board for their work in the 2012 financial year was € 380 thousand. A provision of € 380 thousand has been recognised for the remuneration of their work in the 2013 financial year. In the financial year, a total of € 31 thousand (2012: € 36 thousand) was paid out in attendance fees and cash expenditures.
There are no advances or loans or liabilities assumed for members of the Management Board or the Supervisory Board.
In the financial year 2013, the UNIQA Group introduced a share-based remuneration program for the members of the Management Board of UNIQA Insurance Group AG and selected Management Board members of UNIQA Österreich Versicherungen AG, Raiffeisen Versicherung AG and UNIQA International AG. In line with the programme, as of 1 January of the respective financial year entitled employees are granted virtual shares on a contingent basis which grant entitlement to a cash payment at the end of the performance period. The first contingent grant took place retroactive to 1 January 2013. The duration of the performance period of each tranche is to 31 December 2016.
The condition for the payment of the virtual shares is achieving performance targets, buying and holding real UNIQA ordinary shares and an employment agreement with UNIQA as member of the Management Board to the end of the respective performance period. The level of the cash payment at the end of the fourth year is tied to achieving the two performance targets. Each of the performance targets has a weighting of 50%.
The allocation volume of the first component (Performance Target 1) depends entirely on market-based criteria (TSR). Fair value is determined using a Monte-Carlo simulation. Performance targets which are independent of employment and market (Performance Target 2), but which relate to transactions are not included in determining the fair value.
As at the end of the year, the provision recorded breaks down among the two components of the share-based commitment as follows.
| Figures in € thousand | 01.01.2013 | 31.12.2013 |
|---|---|---|
| Tranche TSR (Performance Target 1) | 0 | 209 |
| Tranche ROE (Performance Target 2) | 0 | 218 |
| Total amount of the provision | 0 | 427 |
The following parameters are used in determining the fair values on the day of grant and on the date the virtual shares are measured:
| Grant date 01.01.2013 |
Valuationdate 31.12.2013 |
|
|---|---|---|
| Tranche TSR (Performance Target 1) | ||
| Fair value (in Euro) | 6.69 | 6.77 |
| Share price (in Euro) | 9.32 | 9.28 |
| Excercise price (in Euro) | 0.00 | 0.00 |
| Expected volatility (weighted average, in percent) | - | 25.2 |
| Expected remain term (weighted average, in years) | 4.0 | 3.0 |
| Discounting interest rate (based on AA corporate bonds, in percent) | 1.2 | 1.2 |
| Tranche ROE (Performance Target 2) | ||
| Fair value (in Euro) | 8.75 | 8.85 |
| Share price (in Euro) | 9.32 | 9.28 |
| Excercise price (in Euro) | 0.00 | 0.00 |
| Expected volatility (weighted average, in percent) | 0.0 | 0.0 |
| Expected remain term (weighted average, in years) | 4.0 | 3.0 |
| Discounting interest rate (based on AA corporate bonds, in percent) | 1.2 | 1.2 |
The expected volatility is based on an assessment of the historical volatility of the company's share price, particularly in the period equivalent to the expected duration.
The final allocation volume of the second component (Performance Target 2) does not depend on market-based criteria (TSR). The expected performance achievement is based on the historical performance of the last four years.
The number and weighted average of the exercise price of the virtual shares in the share-based programme develops as follows:
| Number of phantom shares 2013 |
Average fair value per phantom share (in €) |
|
|---|---|---|
| Tranche TSR (Performance Target 1) | ||
| Outstanding as at 1 January | 0 | |
| Committed during the Reporting Year | 30,861 | 6.77 |
| Outstanding as at 31 December | 30,861 | 6.77 |
| Excercisable as at 31 December | ||
| Tranche ROE (Performance Target 2) | ||
| Outstanding as at 1 January | 0 | |
| Committed during the Reporting Year | 24,689 | 8.85 |
| Outstanding as at 31 December | 24,689 | 8.85 |
For the TSR tranche, expected adjustments in the allocation level are reflected in the fair value of the options. On the other hand, there is an adjustment in the number of options allocated for the ROE tranche.
In the current financial year, no options expired or were exercised.
Obligations from share-based payments are reported under Other provisions (Notes 27) and are included in the context of transactions with related parties.
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 of the UNIQA Group enter into various transactions with related companies and persons.
In line with IAS 24, related companies are identified as those companies which exercise either a controlling or significant influence on the UNIQA Group. Related parties also include nonconsolidated subsidiaries, associates and joint ventures of the UNIQA Group.
Related parties also include persons in key management positions in line with IAS 24 as well as close family members. In particular, this includes key management personnel and their family members as well as family members of those companies which exercise either a controlling or significant influence on the UNIQA Group.
| Companies with significant influence on UNIQA Group |
Affiliated but not consolidated companies |
Associated companies of UNIQA Group |
Other related parties |
Total | |
|---|---|---|---|---|---|
| Transactions 2013 | |||||
| Gross premiums written | 0 | 1,642 | 1,258 | 115,243 | 118,143 |
| Interest income/expenses due to loans given by UNIQA Group | 572 | 185 | 0 | 602 | 1,359 |
| Interest income/expenses due to loans given by a bank as a related party (e.g. loans, time deposits, giro) and capital investments (e.g. subscripiton of bonds) in a |
|||||
| related party | 374 | 728 | 5,358 | 44,730 | 51,189 |
| As at 31.12.2013 | |||||
| Investments at market value | 11,185 | 16,507 | 535,039 | 882,640 | 1,445,370 |
| Deposits with credit institutions | 32 | 1,099 | 2,207 | 1,103,302 | 1,106,640 |
| Transactions 2012 | Companies with significant influence on UNIQA Group |
Affiliated but not consolidated companies |
Associated companies of UNIQA Group |
Other related parties |
Total |
|---|---|---|---|---|---|
| Transactions 2012 | |||||
| Gross premiums written | 8 | 1,104 | 1,258 | 99,927 | 102,297 |
| Interest income/expenses due to loans given by UNIQA Group | 504 | 56 | 0 | 618 | 1,177 |
| Interest income/expenses due to loans given by a bank as a related party (e.g. loans, time deposits, giro) and capital investments (e.g. subscripiton of bonds) in a related party |
1,096 | 809 | 11,836 | 44,217 | 57,957 |
| As at 31.12.2012 | |||||
| Investments at market value | 22,159 | 12,851 | 396,954 | 890,078 | 1,322,042 |
| Deposits with credit institutions | 14 | 6,259 | 3,484 | 1,139,123 | 1,148,880 |
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| Gross premiums written | 837 | 713 |
| Remuneration and short term benefits 1) | 5,108 | 5,699 |
| Expenses for employee pensions | 1,571 | 3,016 |
| Compensation on termination of employment contract | 1,424 | 1,415 |
| Share-based compensation | 226 | 0 |
| Other income | 300 | 293 |
1) This item includes fixed and variable Management Board remuneration and Supervisory Board remuneration.
| Figures in € thousand | 31.12.2013 | 31.12.2012 |
|---|---|---|
| Contingent liabilities from risks of litigation | 19,720 | 14,700 |
| Austria | 0 | 0 |
| Foreign | 19,720 | 14,700 |
| Other contingent liabilities | 10,830 | 9,254 |
| Austria | 10,570 | 9,040 |
| Foreign | 261 | 214 |
| Total | 30,550 | 23,954 |
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 concluded which obligate UI-BV to purchase share packages of the local minority shareholders through option agreements on the basis of a predefined purchase price formula. It was initially agreed to exercise the option in the 2nd quarter of 2012, and this was postponed to the financial year 2016 during an amendment of the transaction contracts in 2011. In financial year 2013, this minority interest was reclassified in the context of a previous-year correction in line with IAS 8. What was pro rata goodwill was posted under other liabilities.
| Figures in € thousand | 2013 | 2012 |
|---|---|---|
| Current leasing expenses | 6,825 | 7,257 |
| Future leasing payments due to the financing of the UNIQA Headquarters in Vienna | ||
| Up to 1 year | 5,090 | 5,188 |
| more than 1 year up to 5 years | 20,360 | 20,754 |
| more than 5 years | 2,545 | 7,783 |
| Total | 27,996 | 33,725 |
| Income from subleasing | 692 | 537 |
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 rate of interest yield.
The auditor fees in this financial year were € 4,423 thousand (2012: € 2,988 thousand). Of these, € 223 thousand (2012: € 274 thousand) were for the audit, € 0 (€ 655 thousand) were for tax advice, € 4,110 thousand (2012: € 1,757 thousand) were for other certification services and € 90 thousand (2012: € 302 thousand) were for other services.
| Company | Type | Location | Equity Figures in € million1) |
Share in equity Figures in percent1) |
|---|---|---|---|---|
| Domestic insurance companies | ||||
| UNIQA Insurance Group AG (Group Holding Company, formerly: UNIQA Versicherungen AG) |
1029 Vienna | |||
| UNIQA Österreich Versicherungen AG | Full | 1029 Vienna | 724.9 | 100.0 |
| Salzburger Landes-Versicherung AG | Full | 5020 Salzburg | 29.2 | 100.0 |
| Raiffeisen Versicherung AG | Full | 1029 Vienna | 747.6 | 100.0 |
| FINANCE LIFE Lebensversicherung AG | Full | 1029 Vienna | 85.9 | 100.0 |
| SK Versicherung Aktiengesellschaft | Equity | 1050 Vienna | 11.1 | 25.0 |
| Foreign insurance companies | ||||
| UNIQA Assurances S.A. | Full | Switzerland, Geneva | 13.4 | 100.0 |
| UNIQA Re AG | Full | Switzerland, Zurich | 219.6 | 100.0 |
| UNIQA Assicurazioni S.p.A. | Full | Italy, Milan | 235.8 | 100.0 |
| UNIQA poistovña a.s. | Full | Slovakia, Bratislava | 37.1 | 99.9 |
| UNIQA pojištovna, a.s. | Full | Czech Republic, Prague | 57.5 | 100.0 |
| UNIQA osiguranje d.d. | Full | Croatia, Zagreb | 14.5 | 100.0 |
| UNIQA Protezione S.p.A. | Full | Italy, Udine | 26.5 | 94.7 |
| UNIQA Towarzystwo Ubezpieczen S.A. | Full | Poland, Lodz | 73.0 | 98.5 |
| UNIQA Towarzystwo Ubezpieczen na Zycie S.A. | Full | Poland, Lodz | 13.8 | 99.8 |
| UNIQA Biztosító Zrt. | Full | Hungary, Budapest | 23.7 | 100.0 |
| UNIQA Lebensversicherung AG | Full | Liechtenstein, Vaduz | 4.6 | 100.0 |
| UNIQA Versicherung AG | Full | Liechtenstein, Vaduz | 9.4 | 100.0 |
| UNIQA Previdenza S.p.A. | Full | Italy, Milan | 141.8 | 100.0 |
| UNIQA Osiguranje d.d. | Full | Bosnia and Herzegovina, Sarajevo | 7.2 | 99.8 |
| UNIQA Insurance plc | Full | Bulgaria, Sofia | 10.1 | 99.9 |
| UNIQA Life Insurance plc | Full | Bulgaria, Sofia | 5.1 | 99.7 |
| UNIQA životno osiguranje a.d. | Full | Serbia, Belgrade | 4.0 | 100.0 |
| Insurance company "UNIQA" | Full | Ukraine, Kiev | 15.6 | 92.2 |
| UNIQA LIFE | Full | Ukraine, Kiev | 9.3 | 100.0 |
| UNIQA životno osiguranje a.d. | Full | Montenegro, Podgorica | 1.7 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Full | Serbia, Belgrade | 7.9 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Full | Montenegro, Podgorica | 4.4 | 100.0 |
| UNIQA Asigurari S.A. | Full | Rumania, Bucharest | 28.8 | 100.0 |
| UNIQA Life S.A. | Full | Rumania, Bucharest | 6.4 | 100.0 |
| Raiffeisen Life Insurance Company LLC | Full | Russia, Moscow | 15.6 | 75.0 |
| UNIQA Life S.p.A. | Full | Italy, Milan | 47.0 | 90.0 |
| SIGAL UNIQA Group AUSTRIA Sh.A. | Full | Albania, Tirana | 21.0 | 68.6 |
| UNIQA AD Skopje | Full | Macedonia, Skopje | 4.8 | 100.0 |
| SIGAL LIFE UNIQA Group AUSTRIA Sh.A. | Full | Albania, Tirana | 4.7 | 100.0 |
| SIGAL UNIQA GROUP AUSTRIA SH.A. | Full | Kosovo, Pristina | 3.6 | 100.0 |
| UNIQA Life AD Skopje | Full | Macedonia, Skopje | 3.0 | 100.0 |
| SIGAL Life UNIQA GROUP AUSTRIA sh.a | Full | Kosovo, Pristina | 3.6 | 100.0 |
| SH.A.F.P SIGAL LIFE UNIQA GROUP AUSTRIA Sh.A. | Full | Albania, Tirana | 0.1 | 51.0 |
| Group domestic service companies | ||||
| UNIQA Real Estate Management GmbH | Full | 1029 Vienna | 2.2 | 100.0 |
| Versicherungsmarkt-Servicegesellschaft m.b.H. | Full | 1010 Vienna | 0.2 | 100.0 |
| Agenta Risiko- und Finanzierungsberatung Gesellschaft m.b.H. | Full | 1010 Vienna | 1.2 | 100.0 |
| Raiffeisen Versicherungsmakler Vorarlberg GmbH | Equity | 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 |
| Company | Type | Location | Equity Figures in € million1) |
Share in equity Figures in percent1) |
|---|---|---|---|---|
| Dr. E. Hackhofer EDV-Softwareberatung Gesellschaft m.b.H. | Full | 1070 Vienna | 0.0 | 100.0 |
| UNIQA Software-Service GmbH | Full | 1029 Vienna | 0.7 | 100.0 |
| UNIQA Capital Markets GmbH | Full | 1020 Vienna | 4.5 | 100.0 |
| UNIQA International AG | Full | 1029 Vienna | 171.5 | 100.0 |
| UNIQA Internationale Beteiligungs-Verwaltungs GmbH | Full | 1029 Vienna | 648.3 | 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 | Full | 1010 Vienna | 0.3 | 64.0 |
| Real Versicherungs-Makler GmbH | 3) | 1220 Vienna | 100.0 | |
| Together Internet Services GmbH | 4) | 1030 Vienna | 22.6 | |
| UNIQA HealthService – Services im Gesundheitswesen GmbH | 3) | 1029 Vienna | 100.0 | |
| UNIQA Real Estate Beteiligungsverwaltung GmbH | Full | 1029 Vienna | 16.4 | 100.0 |
| Privatklinik Grinzing GmbH | 3) | 1190 Vienna | 100.0 | |
| Versicherungsagentur Wilhelm Steiner GmbH | 3) | 1029 Vienna | 100.0 | |
| UNIQA Real Estate Finanzierungs GmbH | Full | 1029 Vienna | 11.3 | 100.0 |
| UNIQA Group Audit GmbH | Full | 1029 Vienna | 0.1 | 100.0 |
| Valida Holding AG | Equity | 1020 Vienna | 82.0 | 40.1 |
| RVCM GmbH | 4) | 1010 Vienna | 50.0 | |
| NewMoove GmbH (vormals: F&R Multimedia GmbH) | 4) | 1060 Vienna | 36.1 | |
| PremiaFIT Facility und IT Management u. Service GmbH | 3) | 1190 Vienna | 75.0 | |
| RHG Management GmbH | Full | 1020 Vienna | 24.7 | 100.0 |
| UNIQA Finanzbeteiligung GmbH | Full | 1020 Vienna | 173.9 | 100.0 |
| UNIQA International Corporate Business GmbH | 3) | 1029 Vienna | 100.0 |
| UNIQA Raiffeisen Software Service Kft. | Full | Hungary, Budapest | 0.6 | 60.0 |
|---|---|---|---|---|
| Insdata spol s.r.o. | Full | Slovakia, Nitra | 2.2 | 98.0 |
| ProUNIQA s.r.o. | 3) | Czech Republic, Prague | 100.0 | |
| UNIPARTNER s.r.o. | Full | Slovakia, Bratislava | –0.1 | 100.0 |
| UNIQA InsService s.r.o. | Full | Slovakia, Bratislava | 0.2 | 100.0 |
| UNIQA Ingatlanhasznosító Kft. | Full | Hungary, Budapest | 5.0 | 100.0 |
| Dekra Expert Muszaki Szakertöi Kft. | Full | Hungary, Budapest | 1.0 | 50.0 |
| UNIQA Szolgaltato Kft. | Full | Hungary, Budapest | 4.5 | 100.0 |
| UNIQA Claims Services International Kft. | 3) | Hungary, Budapest | 100.0 | |
| RC Risk Concept Vaduz | 3) | Liechtenstein, Vaduz | 100.0 | |
| Elsö Közszolgalati Penzügyi Tanacsado Kft. | 3) | Hungary, Budapest | 92.4 | |
| UNIQA Számitástechnikai Szolgáltató Kft. | Full | Hungary, Budapest | 0.1 | 100.0 |
| UNIQA Intermediazioni S.r.l. | 3) | Italy, Milan | 100.0 | |
| Vitosha Auto OOD | Full | Bulgaria, Sofia | 0.0 | 100.0 |
| UNIQA Raiffeisen Software Service S.R.L. | Full | Romania, Cluj-Napoca | 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) | Rumania, Bucharest | 100.0 | |
| sTech d.o.o. | 3) | Serbia, Belgrade | 100.0 |
| Company | Type | Location | Equity Figures in € million1) |
Share in equity Figures in percent1) |
|---|---|---|---|---|
| Financial and strategic domestic shareholdings | ||||
| Medial Beteiligungs-Gesellschaft m.b.H. | Equity | 1010 Vienna | 31.3 | 29.6 |
| PremiQaMed Holding GmbH*) | Full | 1010 Vienna | 71.1 | 100.0 |
| PremiQaMed Immobilien GmbH | Full | 1010 Vienna | 18.6 | 100.0 |
| PremiQaMed Privatkliniken GmbH | Full | 1190 Vienna | 9.0 | 100.0 |
| Ambulatorien Betriebsgesellschaft m.b.H. | Full | 1190 Vienna | 0.6 | 100.0 |
| STRABAG SE*) | Equity | 9500 Villach | 2,948.7 | 14.7 |
| PremiaMed Management GmbH | Full | 1190 Vienna | 0.8 | 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 | 1090 Vienna | 0.8 | 61.0 |
| UNIQA Leasing GmbH | 4) | 1061 Vienna | 25.0 | |
| UNIQA Internationale Anteilsverwaltung GmbH | Full | 1020 Vienna | 163.4 | 100.0 |
| UNIQA Beteiligungs-Holding GmbH | Full | 1029 Vienna | 161.2 | 100.0 |
| UNIQA Erwerb von Beteiligungen Gesellschaft m.b.H. | Full | 1029 Vienna | 11.5 | 100.0 |
| Real-estate companies | ||||
| UNIQA Real Estate CZ, s.r.o. | Full | Czech Republic, Prague | 14.7 | 100.0 |
| UNIQA Real s.r.o. | Full | Slovakia, Bratislava | 0.5 | 100.0 |
| UNIQA Real II s.r.o. | Full | Slovakia, Bratislava | 0.9 | 100.0 |
| Steigengraben-Gut Gesellschaft m.b.H. | 3) | 1020 Vienna | 100.0 | |
| Raiffeisen evolution project development GmbH | Equity | 1030 Vienna | 138.8 | 20.0 |
| DIANA-BAD Errichtungs- und Betriebs GmbH | Equity | 1020 Vienna | 0.9 | 33.0 |
| UNIQA Real Estate AG | Full | 1029 Vienna | 121.3 | 100.0 |
| UNIQA Real Estate Zweite Beteiligungsverwaltung GmbH | Full | 1020 Vienna | 19.1 | 100.0 |
| Design Tower GmbH | Full | 1029 Vienna | 190.1 | 100.0 |
| Aspernbrückengasse Errichtungs- und Betriebs GmbH | Full | 1029 Vienna | 10.1 | 99.0 |
| UNIQA Real Estate Holding GmbH | Full | 1029 Vienna | 72.5 | 100.0 |
| UNIQA Real Estate Dritte Beteiligungsverwaltung GmbH | Full | 1029 Vienna | 11.7 | 100.0 |
| UNIQA Real Estate Vierte Beteiligungsverwaltung GmbH | Full | 1029 Vienna | 4.6 | 100.0 |
| "Hotel am Bahnhof" Errichtungs GmbH & Co KG | Full | 1020 Vienna | 10.2 | 100.0 |
| GLM Errichtungs GmbH | Full | 1010 Vienna | 1.7 | 100.0 |
| EZL Entwicklung Zone Lassallestraße GmbH & Co. KG | Full | 1029 Vienna | 37.0 | 100.0 |
| Fleischmarkt Inzersdorf Vermietungs GmbH | Full | 1020 Vienna | 9.3 | 100.0 |
| Praterstraße Eins Hotelbetriebs GmbH | Full | 1020 Vienna | 2.5 | 100.0 |
| UNIQA Plaza Irohadaz es Ingatlankezelö Kft. | Full | Hungary, Budapest | 2.0 | 100.0 |
| HKM Immobilien GmbH | 3) | Germany, Mannheim | 100.0 | |
| Floreasca Tower SRL | Full | Rumania, Bucharest | 12.2 | 100.0 |
| Pretium Ingatlan Kft. | Full | Hungary, Budapest | 5.5 | 100.0 |
| UNIQA poslovni centar Korzo d.o.o. | Full | Croatia, Rijeka | 2.6 | 100.0 |
| UNIQA-Invest Kft. | Full | Hungary, Budapest | 10.8 | 100.0 |
| Knesebeckstraße 8–9 Grundstücksgesellschaft mbH | Full | Germany, Berlin | 1.9 | 100.0 |
| UNIQA Real Estate Bulgaria EOOD | Full | Bulgaria, Sofia | 1.3 | 100.0 |
| UNIQA Real Estate BH nekretnine, d.o.o. | Full | Bosnia and Herzegovina, Sarajevo | 3.6 | 100.0 |
| UNIQA Real Estate d.o.o. | Full | Serbia, Belgrade | 2.6 | 100.0 |
| Renaissance Plaza d.o.o. | Full | Serbia, Belgrade | 2.3 | 100.0 |
| Company | Type | Location | Equity Figures in € million1) |
Share in equity Figures in percent1) |
|---|---|---|---|---|
| IPM International Property Management Kft. | Full | Hungary, Budapest | 1.2 | 100.0 |
| UNIQA Real Estate Polska Sp. z o.o. | Full | Poland, Warsaw | 7.9 | 100.0 |
| Black Sea Investment Capital | Full | Ukraine, Kiev | –2.2 | 100.0 |
| LEGIWATON INVESTMENTS LIMITED | Full | Cyprus, Limassol | 0.2 | 100.0 |
| UNIQA Real III, spol. s.r.o. | Full | Slovakia, Bratislava | 4.8 | 100.0 |
| UNIQA Real Estate BV | Full | Niederlande, Hoofddorp | 10.5 | 100.0 |
| UNIQA Real Estate Ukraine | Full | Ukraine, Kiev | 0.0 | 100.0 |
| Reytarske | Full | Ukraine, Kiev | –6.0 | 100.0 |
| ALBARAMA LIMITED | Full | Cyprus, Nikosia | 5.0 | 100.0 |
| AVE-PLAZA LLC | Full | Ukraine, Kharkiv | 8.3 | 100.0 |
| Asena CJSC | Full | Ukraine, Nikolaew | 0.5 | 100.0 |
| BSIC Holding GmbH | Full | Ukraine, Kiev | 0.0 | 100.0 |
| Suoreva Ltd. | Full | Cyprus, Limassol | 0.0 | 100.0 |
| Kremser Landstraße Projektentwicklung GmbH | Full | 1020 Vienna | 8.9 | 100.0 |
| Schöpferstraße Projektentwicklung GmbH | Full | 1020 Vienna | 5.4 | 100.0 |
| "Bonadea" Immobilien GmbH | Full | 1020 Vienna | 7.2 | 100.0 |
| "Graben 27–28" Besitzgesellschaft m.b.H. | Full | 1010 Vienna | 25.5 | 100.0 |
| Hotel Burgenland Betriebs GmbH | Full | 1029 Vienna | 0.0 | 100.0 |
| R-FMZ Immobilienholding GmbH | Full | 1020 Vienna | 30.2 | 100.0 |
| Neue Marktgasse Einkaufspassage Stockerau GmbH | Full | 1020 Vienna | 4.5 | 100.0 |
| DEVELOP Baudurchführungs- und | Full | 1020 Vienna | ||
| Stadtentwicklungs-Gesellschaft m.b.H. | 9.1 | 100.0 | ||
| Raiffeisen-Fachmarktzentrum Mercurius GmbH | Full | 1020 Vienna | 12.2 | 100.0 |
| Raiffeisen-Fachmarktzentrum ZWEI GmbH | Full | 1020 Vienna | 13.5 | 100.0 |
| Raiffeisen-Fachmarktzentrum Ivesis GmbH | Full | 1020 Vienna | 10.6 | 100.0 |
| Raiffeisen-Fachmarktzentrum VIER GmbH | Full | 1020 Vienna | 24.1 | 100.0 |
| Raiffeisen-Fachmarktzentrum SIEBEN GmbH | Full | 1020 Vienna | 7.0 | 100.0 |
| R-FMZ "MERCATUS" Holding GmbH | Full | 1020 Vienna | 51.0 | 100.0 |
1) In the case of fully consolidated companies, the value of the stated equity equals the local annual accounts, while in the case of companies valued at equity, it equals the latest annual accounts published or, with
companies marked with *), the latest Group accounts published. 2) The share in equity equals the share in voting rights before minorities, if any.
3) Unconsolidated company (because not material).
4) Associated not at equity valued company (because not material)
These Group consolidated financial statements were compiled by the Management Board as of the date of signing and approved for publication.
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.
Vienna, 25 March 2014
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 audited the consolidated financial statements of UNIQA Insurance Group AG, Vienna (previously UNIQA Versicherungen AG), Vienna, for the financial year from 1 January to 31 December 2013. These consolidated financial statements include the consolidated balance sheet as at 31 December 2013, the separate consolidated income statement, the consolidated statement of comprehensive income and the statement of changes in Group equity for the financial year ending 31 December 2013, as well as the notes to the consolidated financial statements.
Legal representatives' responsibility for the consolidated financial statements and accounting The legal representatives of the company are responsible for the preparation of consolidated financial statements that give a true and fair view of the net assets, the financial position and the profit situation of the Group in agreement with the International Financial Reporting Standards (IFRSs) as applied in the EU and the additional requirements of Section 245a of the Austrian Commercial Code in connection with section 80b of the Austrian Insurance Supervisory Act. This responsibility includes the design, implementation and maintenance of an internal control system, to the extent that this is important for the preparation of the consolidated statements and the negotiation of as true a picture as possible of the Group's net assets, financial position and profit situation so that these consolidated statements are free from material misrepresentations, whether due to intentional or unintentional mistakes. It also includes the choice and application of suitable accounting and valuation methods and the effecting of estimates that appear appropriate under the existing circumstances.
We are responsible for rendering an audit opinion on these consolidated financial statements on the basis of the audit performed by us. We executed our audit with due attention to the legal regulations applicable in Austria and the generally accepted auditing standards as well as the International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board (IAASB) of the Federation of Accountants (IFAC). These principles require that we conform to the ethics of the profession and plan and execute the audit in such a manner that we can judge with a sufficient degree of certainty whether the consolidated financial statements are free from material misstatements.
An audit includes the execution of audit procedures to verify the amounts and other statements in the consolidated financial statements. The choice of audit procedures depends on the conscientious discretion of the auditor, taking into consideration his estimate of the chance that a material misstatement has been made, whether due to an intentional or unintentional mistake. When estimating the level of this risk, the auditor takes the internal control system into consideration to the extent that it is of significance for preparing the consolidated financial statements and providing as true and fair a view as possible of the Group's net assets, financial position and profit situation, in order to determine the appropriate audit procedures under the circumstances; he does not, however, give an opinion on the effectiveness of the Group's internal controls. The audit also includes our evaluation of the adequacy of the accounting principles and valuation methods applied and the material estimates made by the legal representatives of the company as well as an assessment of the overall tenor of the consolidated financial statements.
We believe that we obtained sufficient and suitable verification with our audit, so that our audit provides a reasonably sound basis for our opinion.
Our audit did not lead to any objections. In our opinion, based on the findings of our audit, the consolidated financial statements give an accurate view of the net assets and financial position of the Group as of 31 December 2013 as well as the results of operations and cash flow for the financial year from 1 January to 31 December 2013 in accordance with the International Financial Reporting Standards (IFRSs), as applicable in the EU, and the supplementary requirements of section 80b of the Austrian Insurance Supervisory Act.
Due to the prevailing statutory provisions (in Austria) the Group Management Report must be audited as to whether it is in agreement with the Consolidated Financial Statements and whether or not other statements in the Group Management Report give a false impression of the situation of the Group. The Auditor's Opinion must also contain a statement on whether the Group Management Report is in accordance with the Consolidated Financial Statements and whether the statements comply with Section 243a UGB (Austrian Commercial Code).
The Group Management Report agrees with the Consolidated Financial Statements. The statements comply with Section 243a UGB (Austrian Commercial Code).
Vienna, 25 March 2014
PwC Wirtschaftsprüfung GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Günter Wiltschek Chartered Accountant
Liane Hirner Chartered Accountant
Disclosure, publication and reproduction in a form deviating from the legal regulations in the sense of Section 281 paragraph 2 of the Austrian Commercial Code in a form different from the confirmed version including the audit opinion is not permitted. In the case of the mere reference to our audit, this requires our prior approval in writing.
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 2014
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
NEA OG: Katharina Ehrenmüller, Jo Santos
Springer & Jacoby Österreich GmbH Paper Munken Pure, 240/120/90g Printed by AV+Astoria Druckzentrum GmbH
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.
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