Annual Report • Apr 11, 2013
Annual Report
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ANNUAL FINANCIAL REPORT 2012 ACCORDING TO SECTION 82 PARAGRAPH 4 OF THE AUSTRIAN STCOK EXCHANGE ACT UNIQA VERSICHERUNGEN AG
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| Corporate Governance Report 29 |
|---|
| Report of the Supervisory Board 40 |
| Group Management Report 56 |
| Consolidated Financial Statements 78 |
| Notes to the Group Financial Statements 92 |
| Auditor's Report 157 |
| Statement by Legal Representatives 198 |
Since 2004, UNIQA has committed to comply with the Austrian Code of Corporate Governance and publishes this compliance declaration both in the Group Report and on the Group website, www.uniqagroup.com, in the Investor Relations section. The Austrian Code of Corporate Governance is also publicly available at www.corporate-governance.at.
Implementation and compliance with the individual rules oftheCode are annually evaluated by Univ. Prof. DDr. Waldemar Jud Corporate Governance Forschung CGF GmbH. Primarily on the basis of a questionnaire, this institution evaluates 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 oftheAustrian Code of Corporate Governance can also be found at www.uniqagroup.com.
UNIQAdeclares its continuedwillingness to complywiththe currently effectiveAustrianCode ofCorporate Governance. TheCode's "L rules" (legal requirements) are allfully adhered to in accordancewith the law.However,UNIQAdeviates fromthe provisions oftheCode inthe applicable version with regard to the following "C rules" (comply or explain) and explains as follows:
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. As long as such contracts require approval by the Supervisory Board according to Section 95 paragraph 5 sub-para 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 laws. In any case, all transactions are handled under customary market conditions.
Due to the repositioning of the Group, UNIQA deviated from rule 27 regarding the variable portions ofthe compensation ofthe Management Board in the case of individual members ofthe Management Board in the 2012 reporting period.
Starting in the 2013 financial year, the system used to calculate the variable portions of the compensation ofthe Management Board has been changed. The new system (see also "Principles for profit participation by the Management Board"in the compensation report) conforms to rule 27 of the Austrian Code of Corporate Governance.
Andreas Brandstetter, CEO
1969*, appointed on 1 January 2002 until 31 December 2016
Responsible for:
SupervisoryBoardappointmentsor comparable functions inotherdomestic andforeigncompanies notincluded in the Consolidated Financial Statements:
1959*, appointed on 1 January 1998 until 31 December 2016
Responsible for:
SupervisoryBoardappointmentsor comparable functions inotherdomestic andforeigncompanies notincluded in the Consolidated Financial Statements:
•Member ofthe Board of Directors of Takaful Emarat Insurance, UAE
1966*, appointed on 1 July 2011 until 31 December 2016
Responsible for:
•UNIQA International
1959*, appointed on 1 January 1997 until 31 December 2016
Responsible for:
Kurt Svoboda, CRO 1967*, appointed on 1 July 2011 until 31 December 2016
Responsible for:
The members oftheManagementBoard and their responsibilities aswell as their SupervisoryBoard mandates in domestic and foreign listed companies are in line with the information given in the Corporate Governance Report in the 2011 financial year.
TheworkofthemembersoftheManagementBoardisregulatedbytherulesofprocedure.Thedivision ofthebusiness responsibility asdecidedby the entireManagementBoardis thenapprovedby theSupervisoryBoard.The rulesofprocedure regulate themembersoftheManagementBoard'sdisclosure and approval obligations to each other and to the Supervisory Board. A catalogue of measures is laid outthat requires theauthorisationoftheSupervisoryBoard.TheManagementBoardmeets regularly (weekly) andthemembers oftheManagementBoardreport onthe current course of business,determinewhat steps should be takenand make strategic corporate decisions. Inaddition,there is a continuous exchange of information between the members ofthe Management Board regarding relevant activities and events.
TheChairmenoftheManagementBoards ofUNIQAÖsterreichVersicherungenAGandofRaiffeisen InsuranceAG –Hartwig Löger and Klaus Pekarek – attended the meetings ofthe Management Board ofUNIQAVersicherungenAGinanadvisory capacity.The committee thus formed constitutes the GroupExecutiveBoard.
TheManagementBoard informs the SupervisoryBoard at regular intervals, in a timely and comprehensivemanner,aboutall relevantquestionsofbusinessdevelopment,includingtherisksituation andtheriskmanagementoftheGroup. Inaddition,theChairmanoftheSupervisoryBoardisinregular contactwiththeChairmanoftheManagementBoardanddiscussesthestrategy,businessdevelopment and risk management ofthe companywith him.
Supervisory Board appointments in domestic and foreign listed companies:
• Chairman ofthe Supervisory Board of Raiffeisen Bank International AG, Vienna
1943*, appointed on 29 June 1990 until 29 May 2012
Supervisory Board appointments in domestic and foreign listed companies:
1943*, appointed on 17 September 1999 untilthe 16th Annual General Meeting (2015)
Supervisory Board appointments in domestic and foreign listed companies:
• 1st Vice Chairman ofthe Supervisory Board of Erste Group Bank AG, Vienna
1956*, bestellt seit 21. Mai 2007 bis zur 16. ordentlichen Hauptversammlung (2015)
1956*, appointed on 21 May 2007 untilthe 16th Annual General Meeting (2015)
Supervisory Board appointments in domestic and foreign listed companies:
Christian Kuhn
1954*, appointed on 15 May 2006 untilthe 16th Annual General Meeting (2015)
1954*, appointedfrom23May2005until25May2009andsince 31May2010untilthe 16thAnnual General Meeting (2015)
Supervisory Board appointments in domestic and foreign listed companies: •MemberoftheSupervisoryBoardofRaiffeisenBankInternationalAG,Vienna(since29August2012)
Ewald Wetscherek
1944*, appointed from 17 September 1999 untilthe 16th Annual General Meeting (2015)
Ernst Burger 1948*, appointed from 25 May 2009 untilthe 16th Annual General Meeting (2015)
Supervisory Board appointments in domestic and foreign listed companies: • Vice Chairman ofthe Supervisory Board of Josef Manner & Comp. Aktiengesellschaft, Vienna
Peter Gauper (since 29 May 2012) 1962*, appointed from 29 May 2012 untilthe 16th Annual General Meeting (2015)
Eduard Lechner 1956*, appointed from 25 May 2009 untilthe 16th Annual General Meeting (2015)
Hannes Schmid (until 29 May 2012) 1953*, appointed from 25 May 2009 until 29 May 2012
Supervisory Board appointments in domestic and foreign listed companies: •MemberoftheSupervisoryBoardofRaiffeisenBankInternationalAG,Vienna(until29August2012)
1970*, appointed from 29 May 2012 untilthe 16th Annual General Meeting (2015)
Supervisory Board appointments in domestic and foreign listed companies: • Member ofthe Supervisory Board of Raiffeisen Bank International AG, Vienna
Johann-Anton Auer 1954*, since 18 February 2008
Doris Böhm 1957*, since 7 April 2005
Anna Gruber 1959*, since 15 April 2009
Franz-Michael Koller 1956*, since 17 September 1999
Friedrich Lehner 1952*, from 31 May 2000 to 1 September 2008 and since 15 April 2009
The Supervisory Board of UNIQA Versicherungen AG held six meetings in 2012 and made one decision regarding steps to be taken by circulating itin writing.
Assigned by the Central Employee Council
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 statute, by the company articles and by its rules of procedure.The SupervisoryBoard is responsible for supervising the management ofthe company by the Management Board. ACommittee for Board Affairs ofthe Supervisory Board has been formed for handling the relationships between the company and the members of its Management Board relating to employment and salary.
The appointedWorkingCommittee ofthe SupervisoryBoard shall be called uponfor decisions only ifthe urgency ofthe issue will not allow the decision to wait untilthe next meeting ofthe Supervisory Board. Itis the chairman's responsibility to evaluate the urgency. The decisions passed must be reported in the next meeting ofthe SupervisoryBoard.TheWorkingCommittee decides, in principle, on all issues that are the responsibility ofthe Supervisory Board; issues of particular importance or which are stipulated by law are excepted, however.
The Audit Committee of the Supervisory Board has the same members as the Working Committee. The Audit Committee, including the activities of the Working Committee in its function as an audit committee, performs the duties assigned to it by law.Finally,the InvestmentCommittee advises theManagementBoardwith regard to its investment policy;it hasno decision-making authority. At its two meetings, the Committee for Board Affairs dealt with the legal employment formalities ofthe members oftheManagementBoard, in particular in conjunction with the repositioning of UNIQA.
In its two meetings,the Working Committee mainly discussed the profit developments ofthe Group, assessed the company strategy and made three decisions regarding steps to be takenby circulating these in writing, due to their urgency.
TheAuditCommittee,including theWorkingCommittee,whichwas alsofunctioning as anaudit committee, met in two sessions, dealt with all audit documents, the Corporate Governance Report andtheManagementBoard'sproposedappropriationofprofit, concentratingparticularlyonthe internal auditing reports on audit regions and significant audit discoveries based on executed audits.
The InvestmentCommitteehad fivemeetings aboutthe capitalinvestment strategy and issues concerning the capital structure.The various chairmen ofthe committees informed the members ofthe Supervisory Board aboutthe meetings and their committee's work. For information regarding the activity of the Supervisory Board and its committees, also refer to the statements in the Report of the Supervisory Board.
UNIQAknows that a high level of diversity in the team makes it more successful. Successful organisations tap into the diversity of various nationalities and cultures and the differing strengths of men and women.
At UNIQA,the share of women in Management Board positions and in senior executive roles across the Group is 17 per cent, and 25 per centin the international area.These figures are too low. For this reason, UNIQA gives priority to hiring women in its recruitment process for candidates with the same qualifications. In addition, the ability to combine a career with family life is a key issuewhenit comes to promoting the careers ofwomeninthe company.Withthis inmind,UNIQA goes to great lengths to provide flexible working hours, part-time models, and the option of teleworking. Starting in 2013, UNIQA will also be cooperating with an external service provider that offers services suchas childcare, care for relatives, and other family services.Bothmenandwomen should have the same opportunities to combine a career with family life.
All selected members ofthe 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 ofthe member.
UNIQAhas establishedthe followingpoints as additional criteria concerning the independence of a Supervisory Board member:
• The SupervisoryBoard member shouldnot 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 ofthe positions described in the above points.
Members of the Management Board receive their remuneration exclusively from UNIQA Versicherungen AG,the Group holding company
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| the expenses for remuneration of Management Board members attributable to the financial year amounted to: |
||
| Fixed payments 1) | 2,145 | 2,054 |
| variable payments | 3,149 | 432) |
| Laufende Bezüge | 5,294 | 2,097 |
| Beendigungsansprüche | 1,855 | 2,785 |
| Total | 7,149 | 4,882 |
| of which was proportionally passed on to the operative subsidiaries: | 6,791 | 4.638 |
| Former members of the Management Board and their surviving dependants were paid: | 2,644 | 2,598 |
| For pension commitments to these persons, the following provision was made on 31 December: | 23,818 | 20,790 |
1) Die fixen Gehaltsbestandteile enthalten Sachbezugswerte in Höhe von 49.909 euro (2011: 44.079 euro).
2) these variable payments were made for the 2010 financial year, together with the provisions made in the 2010 annual financial statements in the amount of €1,959,000. the members of the Management Board did not receive any variable payments for 2011.
| Name of Management Board member Figures in € thousand |
Fixe payments 2012 |
Variable payments 2012 |
Total regular payments 2012 |
Severance claims 2012 |
Annual total |
|---|---|---|---|---|---|
| andreas Brandstetter | 407 | 579 | 986 | – | 986 |
| Hannes Bogner | 358 | 517 | 875 | – | 875 |
| Wolfgang Kindl | 340 | 512 | 852 | – | 852 |
| Hartwig Löger (until 31 December 2012) | 340 | 512 | 852 | – | 852 |
| Kurt Svoboda | 340 | 512 | 852 | – | 852 |
| Gottfried Wanitschek (until 31 December 2012) | 359 | 517 | 876 | 1,855 | 2,731 |
| Total amount | 2,145 | 3,149 | 5,294 | 1,855 | 7,149 |
| previous year | 2,054 | 43 | 2,097 | 2,785 | 4,882 |
The salaries of the Management Board are divided up among the individual members as follows:
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 in the event of departure 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 |
Annual total |
|---|---|---|---|
| andreas Brandstetter | 84 | – | 84 |
| Hannes Bogner | 128 | – | 128 |
| Wolfgang Kindl | 119 | – | 119 |
| Hartwig Löger (until 31 December 2012) | 108 | – | 108 |
| Kurt Svoboda | 105 | – | 105 |
| Gottfried Wanitschek (until 31 December 2012) | 142 | 1,254 | 1,396 |
| Total amount | 686 | 1,254 | 1,940 |
| previous year | 734 | 3,849 | 4,584 |
The compensation to the members of the Supervisory Board for their work in the 2011 financial year was €304,000.Aprovision of €380,000 has been made for compensation oftheir work in the 2012 financial year. In 2012, €35,520 (2011: €33,375) was paid outin attendance fees and cash expenditures.
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| For the current financial year (provision) | 380 | 304 |
| attendance fees | 36 | 33 |
| Total | 416 | 337 |
The Supervisory Board's compensation (including attendance fees) was split between the individual members of the Supervisory Board as follows:
| Name of Supervisory Board member Figures in € thousand |
Compensation 20121) |
Compensation 2011 |
|---|---|---|
| Walter rothensteiner | 61 | 41 |
| Christian Konrad (until 29 May 2012) | 32 | 57 |
| Georg Winckler | 58 | 47 |
| erwin Hameseder | 42 | 19 |
| Christian Kuhn | 51 | 41 |
| Günther reibersdorfer | 48 | 36 |
| ewald Wetscherek | 44 | 36 |
| ernst Burger | 17 | 13 |
| peter Gauper (since 29 May 2012) | 9 | – |
| eduard Lechner | 24 | 19 |
| Hannes Schmid (until 29 May 2012) | 11 | 19 |
| Johannes Schuster (since 29 May 2012) | 9 | – |
1) the Management Board and Supervisory Board intend to recommend to the 2013 annual General Meeting that a resolution be passed to increase compensation (a return to the level of the 2010 financial year).
Former members of the Supervisory Board did not receive any compensation.
The informationaccording toSection239paragraph1oftheAustrianCommercialCode inconnection with Section 80b ofthe Insurance SupervisoryAct, which must be included in theNotes 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 individual financial statements according to the provisions ofthe AustrianCommercialCode, with expanded scope. In addition to the executive functions (Management Board) of UNIQA VersicherungenAG,the individualfinancial statements alsoinclude the earningsoftheManagementBoards ofthe subsidiaries, insofar as there is a legally binding basis with UNIQAVersicherungen AG.
A variable income componentis made available to the members ofthe Management Board in the form of bonus agreements if they meet certain defined prerequisites for entitlement. This bonus will be provided as a one-time payment based onthe earnings situation.The basis for determining the size of the bonus is the return on equity based on the IFRS consolidated financial statements ofUNIQAVersicherungenAG.TheManagementBoard reports to theCommittee forBoardAffairs on the balance sheet work involving the development ofthe Group's reserves.TheCommittee for Board Affairs can take changes to the reserves into account in determining the size of the bonus payments and establish an adjusted Group return on equity. No changes with respect to the previous year were made to the principles of the profit participation.
Starting from the 2013 financial year,the system used to calculate the variable portions ofthe compensation of the Management Board has been changed in conjunction with the extension of theManagementBoard mandates.By means of a ShortTerm Incentive (STI), a one-time payment is made if certain defined prerequisites for entitlement are met based on the earnings situation and agreed individualtargets for each financial year.ALongTerm Incentive (LTI)is also provided. This provides for one-time payments after a term of four years, depending on the performance of the UNIQAshare,theROE, and theTotal ShareholderReturn based on annual virtual investment amounts in UNIQA shares. Upper limits are agreed. Consideration is given to the linking of the LTI to an annualinvestment obligation on the part oftheManagementBoard members inUNIQA shares subjectto a retention period offour years each.The system conforms to rule 27 oftheAustrian Code of Corporate Governance.
Retirement pensions, a pension for occupational disability as well as a widow's and orphan's pension have been established, whereby the pension entitlements are managed by Valida Pension AG.The retirementpensionisdue inprincipleuponmeeting the requirements for the old-agepensionaccording to theGeneral Social SecurityAct. Inthe event of anearlier retirement,the pension claimis reduced.For the occupationaldisabilitypensionandthepensionfor survivingdependants, basic amounts are provided as a minimum pension. The pension fund at Valida Pension AG is financed by UNIQAthrough ongoing contributions for the individual members ofthe Management Board.Equalisation payments toValidaPensionAG are due if members oftheManagementBoard depart before the age of 65 (imputed contribution payment duration to prevent excess financing).
Severance payments have been agreed upon based partially on the provisions ofthe Salaried Employee Act. The agreed-upon termination packages on the occasion of premature termination of thework oftheBoardmember conformto the criteria of rule 27a oftheAustrianCode ofCorporate Governance. The benefits are fundamentally retained in the event oftermination of membership on the Management Board; however, a reduction rule applies.
Compensation to the Supervisory Board is approved at the Annual General Meeting as a total amountfor the work in the past financial year.The compensation amount applicable to the individual Supervisory Board members is based on the position within the Supervisory Board and the number of committee positions.
Such insurance exists, and the relevant costs are paid by UNIQA.
Acomprehensive risk report(rule 67)is included in the GroupNotes beginning on page 107.Adescription of the announcements made about the directors' dealings (rule 73) can also be found at www.uniqagroup.com in the Investor Relations section.
Vienna, 21. March 2013
andreas Brandstetter Chairman of the Management Board
Hannes Bogner
thomas Münkel Member of the Management Board
Wolfgang Kindl
Member of the Management Board
Member of the Management Board
Kurt Svoboda
Member of the Management Board
Dr. Walter Rothensteiner, Chairman of the Supervisory Board
Ladies and Gentlemen,
for UNIQA, 2012 was dominated by the UNIQA 2.0 long-term strategic programme.
Under this programme, UNIQAhas setthe objective of expanding its customer base to 15 million by 2020 and of increasing earnings before tax by up to €400 million in comparison to 2010. The company is concentrating on the core business. It is targeting profitable business in Austria and profitable growth in Central and Eastern Europe.
In 2012, UNIQA tackled the first stage ofthe implementation ofthis strategy and achieved its target result. It divested a range of activities that were not part ofthe core business, improved the risk profile, and pressed ahead with the main points ofthe strategic programme UNIQA2.0. UNI-QA completed a cash capital increase amounting to €500 million and created a Group structure that is conducive to its planned capital market activities.
During 2012,the SupervisoryBoardwas regularly informed by theManagementBoard of business developments and the situation at UNIQA Versicherungen AG and ofthe Group as a whole. It also supervisedtheManagementBoard'smanagementofthebusiness andfulfilledallthe tasks assigned to the Supervisory Board by legislation and the company articles. In 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 aboutthose measures requiring its approval.
The members of the Supervisory Board were invited to participate in a series of information events on relevanttopics, for example, a seminar in 2012 on currenttrends in relation to the IFRS and Solvency II regulations.
The meetings focused on the Group's earnings situation and its further strategic development. The Supervisory Board held six meetings in 2012 and made one decision regarding steps to be taken by circulating it in writing.
In the meeting on 13 March, the Supervisory Board mainly discussed the preliminary Group earnings for the 2011 financial year and medium-term planning up to 2015.
The Supervisory Board meeting on 26 April focused on the annual financial statements and consolidated financial statements as at 31 December 2011, the Management Board's report on Group developments during the first quarter of 2012.Basic resolutions regarding plans to increase the share capital of UNIQA Versicherungen AG from the "authorised capital", and regarding the change in the Group's legal form were passed.
In addition, the Supervisory Board addressed the termination of cooperation with the European Bank for Reconstruction and Development. Negotiations regarding the proposed choice of auditor were completed on 2 May with a resolution in writing.
The constituent SupervisoryBoard meeting of 29May marked the electionof anewChairman of the Supervisory Board after Christian Konrad tendered his resignation following almost 22 years of service on the Supervisory Board.
On 26 June,the SupervisoryBoard assessed the resolution regarding the increase ofthe share capital of UNIQA Versicherungen AG from the authorized capital, and the contractual basis for the restructuring of the Austrian insurance group.
Atthe meeting on 11 September,the SupervisoryBoard dealt mainly with developments atthe company during the first six months of 2012 and the resolution to increase of the share capital of UNIQA Versicherungen AG from the authorised capital in return for the contribution of the remaining shareholdings in UNIQA Österreich Versicherungen AG held by Austria Versicherungsverein auf GegenseitigkeitPrivatstiftung andCollegialitätVersicherungsvereinPrivatstiftung. In addition,the SupervisoryBoard supported the strategy adopted by theManagementBoard by approving the sale of hotel properties and businesses.Finally,the thresholds for transactions requiring approval in the rules of procedure were increased by an appropriate amount.
Inadditionto reporting onthe Group earnings during the firstthree quarters of 2012 and planning for the 2013 financial year,the Supervisory Board discussed its activities atits meeting on 27 November in accordance with the Code of Corporate Governance. It also passed resolutions concerning changes to the Management Board and approved the new division of business responsibility in the Management Board from 1 January 2013.
To facilitate the work of the Supervisory Board and to improve its efficiency, other committees have been set up in addition to the mandatory financial Audit Committee.
The Working Committee primarily discussed the profit developmentin the Group, examined the company strategy, and handled a number oftasks assigned to theAuditCommittee since both committees share the same members. It held two meetings in 2012 and made three decisions regarding steps to be taken by circulating them in writing.
At its two meetings, the Committee for Board Affairs dealt with the legal employment formalities ofthe members ofthe Management Board, and with questions regarding compensation policies and successionplanning,inparticular, regarding the compositionoftheManagementBoard as of 1 January 2013.
The InvestmentCommitteehad fivemeetings aboutthe capitalinvestment strategy, questions concerning the capital structure, and the positioning of risk and asset liability management.
The Audit Committee, including the Working Committee, which was also functioning as an audit committee,metintwo sessions, dealtwithall audit documents and theManagementBoard's proposed appropriation of profit, concentrating particularly on the internal auditing reports on audit regions and significant audit discoveries based on executed audits.
The various chairmen of the committees informed the members of the Supervisory Board about the meetings and their committee's work.
The Annual Financial Statements prepared by the Management Board and the Management Report of UNIQAVersicherungen AG as well as theConsolidated Financial Statements prepared according to the InternationalFinancialReporting Standards (IFRS) and the GroupManagement Report for 2012 were audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft and given an unqualified auditor's opinion.
The Supervisory Board acknowledged and approved the results of the audit.
The consistency check of the Corporate Governance Report according to Section 243b of the Austrian Commercial Code, as well as an evaluation of UNIQA's compliance with the Austrian Code ofCorporate Governance rules in the 2012 financial year, was performed by Univ. Prof. DDr. Waldemar JudCorporate GovernanceForschungCGF GmbH, and the final results indicated that UNIQA complied with the rules ofthe Austrian Code of Corporate Governance in the 2012 financial year – insofar as these were included in the compliance declaration.
The Supervisory Board approved the consolidated financial statements and the annual financial statements of UNIQA Versicherungen AG and agreed to the Group management report and themanagement report.The 2012 annualfinancial statementswere thereby adopted inaccordance with Section 96 para 4 of the Stock Corporation Law.
The SupervisoryBoard examined and approved theproposed appropriationofprofit submitted by theManagementBoard.Accordingly, a dividend distributionamounting to€0.25 per sharewill be proposed to the Annual General Meeting on 27 May 2013.
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 2013 On behalf of the Supervisory Board
Walter Rothensteiner, Chairman of the Supervisory Board
Group ManagementReport
The economic conditions in 2012 were characterised by a global downturn. In the fourth year since the financial crisis began, the long-term consequences continued to affect a number of industrialised nations, with growth rates failing to reach their potential. As in 2011, there was highly divergent macroeconomic development within the European Monetary Union. In Germany, real gross domestic product (GDP) increased by 0.9 per cent in 2012. Despite the difficult economic environment, Austria recorded growth of 0.5 per cent, one of the highest rates within the European Monetary Union. Some of the southern euro zone members were hit by a serious recession. GDP declined by 7.2 per cent in Greece and 3.4 per cent in Portugal, while the downturn in Italy and Spain was slightly less pronounced at 2.4 per cent and 1.6 per cent respectively.
The macroeconomic situation in the USA was more positive than in the euro zone, with GDP improving by 2.2 per cent in 2012. While domestic demand in a number of euro zone nations was impacted by public-sector austerity measures, some of which were dramatic in nature, the much-needed consolidation of the US budget was not addressed until the turn of 2012/13.
The high level of unemployment in many countries is increasingly becoming one of the most serious problems affecting the euro zone. As of September 2012, Spain had the highest unemployment rate at 25.6 per cent, followed by Greece (24.6 per cent), Portugal (15.8 per cent), Ireland (14.8 per cent) and Italy (10.6 per cent). By contrast, unemployment rates in Austria and Germany are relatively stable and considerably lower than the average for the euro zone as a whole (Austria: 4.3 per cent; Germany: 6.8 per cent; euro zone: 11.4 per cent).
The weak economic situation in the industrialised nations had a downstream impact on the emerging economies. Although Central and Eastern Europe (CEE) was also affected by the global downturn in the previous year, the region again succeeded in generating a positive growth differential compared with most industrialised nations. Despite the slowdown over the course of the year, Poland continued to be one of the best performers in CEE in 2012, recording a growth rate of 2.1 per cent. Slovakia also saw stable growth of 2.4 per cent. Economic performance in the Czech Republic was impacted in particular by dramatic public-sector austerity measures (minus 1.1 per cent year-on-year), while Hungary was also affected by a downturn in public-sector demand (minus 1.7 per cent year-on-year). Following the political unsettlement caused by the country's negotiations with the International Monetary Fund, confidence among international investors in Hungary's politics and economy improved on the back of the general recovery in the second half of the year. However, the overall picture remained disappointing.
The economies of Southeastern Europe saw extremely varied development in some cases. Bulgaria generated GDP growth of 1.5 per cent. Rigorous savings measures in Romania meant that GDP growth stagnated at 0.2 per cent. Among the Balkan nations, Serbia (minus 2.0 per cent) and Croatia (minus 1.8 per cent) both saw downturns in GDP. GDP growth in Ukraine was just 0.2 per cent. At 3.4 per cent, Russia recorded the highest growth rate in the region.
Many of the nations in Central and Eastern Europe are not directly affected by the problem of excessive growth in sovereign debt. The protracted process of debt relief among private households and companies and the other consequences of the financial crisis are mainly being felt by the industrialised nations. The ratio of public debt to GDP in the euro zone increased to more than 90 per cent in 2012. By contrast, sovereign debt in most CEE nations was considerably lower than 60 per cent of GDP. Nevertheless, economic policy in a number of EU member states (Poland, Romania, Czech Republic and Hungary) and candidates (Croatia, Serbia) is concentrated on measures aimed at achieving the Maastricht criteria.
The relaxation in the euro crisis meant that investor confidence in Central and Eastern Europe increased in the second half of 2012. The cuts to key lending rates by some central banks as the result of falling inflation offer potential for a further boost to economic development in Central and Eastern Europe over the coming year.
In a number of industrialised nations, the general interest rate environment reached a historical low in the past year. The European Central Bank (ECB) reduced its key interest rate by 25 bp to 0.75 per cent in July and recently resolved to maintain this low level for the time being. The US Fed again kept the Fed funds rate at practically zero in the past year and announced its intention to stick to its policy of quantitative easing until at least 2015. Monthly bond purchases were also increased to USD 85 billion.
In the area of long-term investments, too, yields on secure government bonds were extremely low. At year-end, the effective yield on ten-year German government bonds was just 1.32 per cent, while ten-year Austrian government bonds had a yield of 1.75 per cent. Companies with good credit ratings are now able to refinance at extremely favourable credit margins (compared with government bonds). The average credit spread for European industrial companies and banks at year-end was just 145 basis points.
The outlook in terms of inflation is moderate. In its most recent forecast, the ECB expects euro zone inflation of between 1.1 and 2.1 per cent in 2013.
Economic development over the past year has been dominated by the European sovereign debt crisis. Particular attention was paid to political efforts aimed at overcoming the crisis. The European Fiscal Compact was ratified by 25 EU member states on 2 March 2012. The Compact obliges the signatory states to balance their structural deficits. The European Stability Mechanism (ESM) came into force officially on 8 October 2012. The first operation of the ESM was the recapitalisation of the Spanish banking sector. The Eurogroup had previously approved credit lines of a maximum of €100 billion in July. In December, the ESM transferred around €40 billion to the Spanish banking bailout and reconstruction programme, FROB.
The ECB also played a not insubstantial role in overcoming the crisis. The two long-term refinancing operations (LTRO) for European banks led to a relaxation on the bond markets in early 2012. The ECB's announcement in the second half of the year that it was willing to provide unlimited support for euro countries in the form of outright monetary transactions in bond markets (OMT) meant that more time was available for further structural reforms in the euro zone in particular.
Following the significant downturn in premiums in the previous year, the Austrian insurance industry again generated lower premiums in 2012. According to the latest forecasts (source: Austrian Insurance Association), the total premium volume is expected to decline by 0.9 per cent to €16.3 billion. A return to moderate growth (+0.2 per cent) is forecast for 2013.
The reduction in total premiums is due in particular to another substantial downturn in the area of life insurance: premiums fell by 6.7 per cent in 2012, thereby reducing total premiums earned by €470 million compared with the previous year. Sustained high losses on single premiums (minus 19 per cent) were the main cause of this development. However, recurring premiums also decreased. This was largely due to the lower level of premiums from retirement annuities, with the 50 per cent reduction in state support placing old-age provision under pressure. The outlook for life insurance for 2013 is also muted (minus 3 per cent) on account of the low level of guaranteed insurance and the development of old-age provision.
On the other hand, property and casualty insurance had a positive impact on total premiums earned, recording growth of 3.4 per cent in 2012. Other property and casualty insurance grew by 4.2 per cent, with premiums rising in the areas of legal expense insurance and technical insurance in particular (+5.2 and +4.4 per cent respectively). Health insurance also provided positive support for total premiums with stable growth of 3.4 per cent, and this development is expected to be largely repeated in 2013 (+3.2 per cent).
However, insurance penetration in Austria fell in 2012 as a result of the largely negative overall trend, amounting to 5.26 per cent. Despite a slight increase in premiums earned, this figure is expected to decline further to around 5.10 per cent in the coming year.
As the economy in Central and Eastern Europe is dependent to a large extent on development in Europe as a whole and the euro zone, the CEE states were unable to maintain the high level of growth they had enjoyed in previous years. However, growth rates in the region continued to overshadow the western EU member states. CEE recorded real GDP growth of 2.2 per cent in 2012, while the euro zone entered a recession with GDP falling by 0.5 per cent. CEE is expected to enjoy similar growth in 2013, with the second half of the year in particular seeing a strong upturn. Growth of 2.8 per cent is forecast for 2014. The renowned international research institution "Business Monitor International" (BM) is forecasting significantly stronger growth for CEE than for Western Europe in the period from 2010 to 2012. While BM envisages economic growth of 45 per cent in Austria for those ten years, the comparable growth rates in Poland, Romania and Albania are 84 per cent, 92 per cent and 97.9 per cent, respectively.
The particular strengths of the CEE nations are their competitiveness and workforce flexibility. Rising wages and salaries are expected to result in growth potential for the insurance market in particular, while private consumer spending is also set to increase over the coming years. As the insurance density and penetration seen in Western Europe has yet to be achieved in the region and the corresponding key figures are substantially below the level of the Austrian market, a higher level of insurance sales is anticipated. Various regulations and statutory provisions also mean that the CEE market will maintain its potential and become even more attractive.
Unlike the western markets, the CEE region also succeeded in generating solid premium growth in 2012 due to the aforementioned factors. However, the outlook for the coming year is far from unclouded, with many countries seeing a reluctance to invest in insurance on account of the uncertain macroeconomic environment. The low level of interest rates at present is also having an adverse effect on life insurance in the CEE region. Nevertheless, UNIQA expects growth in the Eastern European markets to be significantly higher than in Austria.
With a premium volume written (including the savings portion of unit- and index-linked life insurance) of €5,543.1 million, UNIQA is one of the leading insurance groups in CEE. The savings portion of unit- and index-linked life insurance in the amount of €679.0 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 €4,864.2 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 Versicherungen AG, manages the Group and handles its indirect insurance business. It also performs service functions for the Austrian and international insurance subsidiaries with a view to taking best advantage of synergy effects within all the Group companies and consistently implementing the Group's long-term corporate strategy.
UNIQA International Versicherungs-Holding 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.
In July 2012, UNIQA implemented a cash capital increase with a volume of €500 million, placing a total of 47,619,048 new shares. The subscription price was €10.50 per share. The share capital of UNIQA Versicherungen AG increased to €190,604,265 as a result.
The proceeds from the cash capital increase strengthen UNIQA's capital base and solvency and, together with the planned improvements from the implementation of the UNIQA 2.0 strategic programme and the cash inflow from the planned re-IPO, will provide the foundations for leveraging the sustainable growth opportunities that are available in the CEE region in particular.
In preparation for its planned re-IPO, UNIQA streamlined its Group structure in 2012 to make it more capital market-friendly. UNIQA Sachversicherung AG and CALL DIRECT Versicherung AG were merged with UNIQA Personenversicherung AG as the acquiring entity, which was simultaneously renamed UNIQA Österreich Versicherungen AG.
Prior to this change in the company's legal form, Austria Versicherungsverein auf Gegenseitigkeit Privatstiftung and Collegialität Versicherung auf Gegenseitigkeit contributed their direct shareholding in UNIQA Personenversicherung AG, which totalled around 36.61 per cent, to the listed holding company UNIQA Versicherungen AG. In return for the contribution of their shares, they received 23,643,635 new shares of UNIQA Versicherungen AG. On 11 September 2012, the Supervisory Board approved the Management Board resolution and authorised the issue of the new shares, and hence the increase in the share capital to €214,247,900.
UNIQA Österreich Versicherungen AG is now a wholly owned subsidiary of the listed holding company. From the 4th quarter 2012 on, UNIQA Österreich Versicherungen AG's profit is therefore included in full in UNIQA's consolidated profit, as minority interests will no longer be deducted.
UNIQA's consolidated financial statements for 2012 include 57 Austrian companies (including UNIQA Versicherungen AG) and 72 international companies. A total of 33 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, nine Austrian companies were recognised at equity as associates. Thirteen associates were of minor importance; the equity interests in these companies are recognised at fair value.
In 2012, UNIQA completed the sale of Mannheimer AG Holding, including its subsidiaries Mannheimer Versicherung AG, Mannheimer Krankenversicherung AG and mamax Lebensversicherung AG and the associated real estate holdings In accordance with IFRS 5, the figures of the Mannheimer Group in Germany are no longer included in the following information on UNIQA's business development (separate presentation as result of discontinued operations).
UNIQA also acquired the minority interests held by the European Bank for Reconstruction and Development (EBRD) in the subsidiaries in Croatia (20 per cent), Poland (30 per cent) and Hungary (15 per cent).
Details on the consolidated and associated companies can be found in the corresponding overview in the notes to the consolidated financial statements (from page 94). The accounting policies are also described in the notes to the consolidated financial statements (from page 97).
UNIQA's comprehensive risk report can be found in the notes to the 2012 consolidated financial statements (from page 107).
The following discussion of the Group's business development is divided into two sections. The section "Group business development" describes the business performance from the perspective of the Group with fully consolidated amounts. Fully consolidated amounts are also used in the Group Management Report for reporting on the development of the "property and casualty insurance", "health insurance" and "life insurance" business segments.
UNIQA provides life and health insurance and is active in almost all areas of property and casualty insurance. UNIQA serves around 8.7 million customers, has over 17.4 million insurance policies with a premium volume written (including the savings portion of unit- and index-linked life insurance) of around €5.5 billion (2011: €5.5 billion) and investments of €26.3 billion (2011: €24.6 billion). UNIQA is the second-largest insurer in Austria and has a strong network in CEE with a presence in 16 countries.
Despite a downturn in the area of single premiums, UNIQA's total premium volume, including the savings portion of unit- and index-linked life insurance in the amount of €679.0 million (2011: €633.9 million), increased slightly by 0.2 per cent to €5,543.1 million (2011: €5,534.2 million). By contrast, the total consolidated premium volume written declined marginally by 0.7 per cent to €4,864.2 million (2011: €4,900.2 million).
There was satisfactory development in the area of insurance policies with recurring premiums, which grew by 1.5 per cent to €5,009.7 million (2011: €4,933.3 million). Although the deterioration in the single premium business was slowed in 2012, the volume declined by 11.2 per cent to €533.5 million as a result of the extension of the minimum holding period to benefit from tax advantages in Austria and the planned reduction in business in Poland (2011: €600.9 million).
Group premiums earned, including the savings portion of unit- and index-linked life insurance (after reinsurance) in the amount of €649.9 million (2011: €599.7 million), rose by 0.2 per cent to €5,273.8 million (2011: €5,264.7 million). Retained premiums earned (in accordance with IFRS) declined by 0.9 per cent to €4,623.9 million (2011: €4,665.0 million).
In the 2012 financial year, 45.9 per cent (2011: 43.5 per cent) of the premium volume written was attributable to property and casualty insurance, 16.4 per cent (2011: 15.9 per cent) to health insurance and 37.7 per cent (2011: 40.6 per cent) to life insurance.
In Austria, the premium volume written including the savings portion of unit- and indexlinked life insurance fell by 3.2 per cent to €3,566.2 million in 2012 (2011: €3,685.8 million). Recurring premiums declined by 2.0 per cent to €3,474.0 million (2011: €3,545.8 million). Single premiums declined by 34.2 per cent to €92.1 million (2011: €140.0 million) due to the aforementioned extension of the minimum holding period to benefit from tax advantages.
Premium volume written Including the savings portion of unit- and index-linked life insurance
Figures in € million
Figures in € million
Including the savings portion of unit- and index-linked life insurance, premiums earned in Austria amounted to €3,470.7 million (2011: €3,595.5 million). Retained premiums earned (in accordance with IFRS) declined by 0.6 per cent to €3,113.2 million in 2012 (2011: €3,132.9 million).
In 2012, the main growth drivers in CEE were property and casualty insurance and health insurance. Growth was dampened by the downward trend in the single premium business in life insurance. The premium volume written including the savings portion of unit- and index-linked life insurance declined by 4.5 per cent to €1,295.5 million in 2012 (2011: €1,240.1 million). Recurring premiums increased sharply by 8.0 per cent to €1,183.4 million (2011: €1,095.3 million). By contrast, single premiums declined by 22.6 per cent to €112.1 million (2011: €144.8 million). In 2012, the share of Group premiums written attributable to CEE increased to 23.4 per cent (2011: 22.4 per cent).
Including the savings portion of unit- and index-linked life insurance, premiums earned in CEE increased by 3.8 per cent to €1,205.5 million (2011: €1,160.9 million). Retained premiums earned (in accordance with IFRS) amounted to €1,077.5 million (2011: €1,047.4 million).
In Western Europe, the premium volume written including the savings portion of unit- and index-linked life insurance (excluding the Mannheimer Group in Germany, which is not included in these figures in accordance with IFRS 5) increased by 12.0 per cent to €681.5 million in the 2012 financial year (2011: €608.3 million); this was due in particular to the positive development in the property and casualty insurance business in Italy. Recurring premium business also developed extremely positively in this region, increasing by a strong 20.6 per cent to €352.3 million (2011: €292.2 million), while single premiums rose by 4.2 per cent to €329.2 million (2011: €316.1 million). All in all, Western Europe accounted for 12.3 per cent of Group premiums written in 2012 (2011: 11.0 per cent).
Including the savings portion of unit- and index-linked life insurance, premiums earned in Western Europe increased by 6.3 per cent to €408.5 million (2011: €384.3 million). By contrast, retained premiums earned (in accordance with IFRS) declined by 10.6 per cent to €433.1 million (2011: €484.7 million).
The volume of insurance benefits before reinsurance (see note 36 of the notes to the consolidated financial statements) rose by 2.9 per cent to €3,873.8 million in the 2012 financial year due to the increase in the number of major claims and claims due to natural disasters (2011: €3,763.0 million). Consolidated retained insurance benefits increased by 2.8 per cent to €3,758.5 million in the past financial year (2011: €3,657.9 million).
In 2012, retained insurance benefits in Austria increased by 9.3 per cent to €2,715.2 million (2011: €2,484.0 million), while the figure for the Central and Eastern European countries fell by 5.8 per cent to €644.8 million (2011: €684.6 million). In the Western European markets, insurance benefits (after reinsurance) also fell by 18.5 per cent to €398.6 million (2011: €489.3 million).
Total consolidated operating expenses (see note 37 of the notes to the consolidated financial statements) less reinsurance commission and profit shares from reinsurance business ceded (see note 33 of the notes to the consolidated financial statements) declined by 6.6 per cent to €1,319.3 million in the 2012 financial year (2011: €1,412.8 million). Reflecting the volume of new business and the change in the product mix, acquisition expenses increased by 4.5 per cent to €955.8 million (2011: €914.3 million). Other operating expenses less reinsurance commission received fell by 27.1 per cent to €363.5 million (2011: €498.4 million). This development includes the first positive effects from UNIQA 2.0 projects.
In Austria, operating expenses decreased by 16.1 per cent to €775.5 million (2011: €923.9 million). The figure for CEE was €435.4 million (2011: €404.0 million), a year-on-year increase of 7.7 per cent. By contrast, operating expenses in the Western European countries increased by 27.8 per cent to €108.4 million (2011: €84.8 million).
UNIQA's cost ratio after reinsurance, i.e. the ratio of total operating expenses to Group premiums earned including the savings portion of unit- and index-linked life insurance, decreased to 25.0 per cent in the past year as a result of the developments mentioned above (2011: 26.8 per cent). The cost ratio before reinsurance was 24.5 per cent (2011: 26.2 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 6.9 per cent to €26,307.6 million in the 2012 financial year (31 December 2011: €24,601.1 million).
Net investment income increased by 292.2 per cent to €791.5 million as a result of the good development on the financial markets (2011: €201.8 million). A detailed presentation of investment income can be found in the notes to the consolidated financial statements (note 34).
UNIQA generated a highly satisfactory profit/loss on ordinary activities of €205.4 million in the 2012 financial year (2011: minus €322.3 million). The net profit/loss for the period amounted to €169.8 million (2011: minus €243.8 million). Consolidated net profit/loss increased to €130.2 million (2011: minus €245.6 million). This figure includes the result from discontinued operations of €10.4 million due to the disposal of the Mannheimer Group. Earnings per share amounted to €0.77 (2011: minus €1.73). The Management Board will therefore propose the payment of a dividend of €0.25 per share to the Supervisory Board and the Annual General Meeting.
Operating expenses Less reinsurance commission and profit shares from reinsurance business ceded
Figures in € billion
In the past financial year, total Group equity increased by 84.2 per cent or €922.0 million to €2,017.6 million as a result of the capital increase implemented in 2012 and the encouraging investment result (31 December 2011: €1,095.6 million). This figure includes minority interests of €22.3 million (31 December 2011: €219.7 million). Accordingly, the solvency ratio (Solvency I) increased to 214.9 per cent (31 December 2011: 122.5 per cent). Total Group assets increased by 5.1 per cent in the year under review to total €30,037.2 million as of 31 December 2012 (31 December 2011: €28,567.7 million).
In 2012, net cash from operating activities amounted to €1,133.0 million (2011: €393.9 million). Net cash used in investing activities amounted to €1,185.5 million (2011: €186.4 million). The increase in the share capital meant that net cash from financing activities increased to €335.0 million (2011: minus €58.3 million).
The total change in cash and cash equivalents was €282.5 million (2011: €149.2 million). At the end of 2012, the Group had cash and cash equivalents in the amount of €960.1 million (2011: €683.1 million).
In 2012, the average number of employees at UNIQA fell to 14,799 (2011: 15,081). Of this figure, 6,329 (2011: 6,179) were employed in sales positions. The number of employees in administrative roles decreased to 8,470 (2011: 8,902).
In the 2012 financial year, the Group had 2,963 employees (2011: 2,978) in the Central European (CE) region – consisting of Poland, Slovakia, Czech Republic and Hungary –2,279 employees (2011: 1,982) in the Southeastern European (SEE) region – consisting of Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Macedonia, Montenegro and Serbia – and 2,509 employees (2011: 2,273) in the Eastern European (EE) region, i.e. Romania and Ukraine. There were 61 employees (2011: 56) in Russia (RU). The average number of employees in the Western European markets decreased to 334 due to the disposal of the Mannheimer Group (2011: 1,067). A total of 6,653 people were employed in Austria (2011: 6,725). Including the employees of the general agencies working exclusively for UNIQA, the total number people working for the Group amounted to 22,070.
In 2012, 53 per cent of the employees in Austria working in administrative positions were female. In sales, the male-female ratio was 80:20. 21 per cent (2011: 23 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 (2011: 42 years). In total, 14.1 per cent (2011: 12.1 per cent) of the employees participated in UNIQA's bonus system in 2011– 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. 50 apprentices are currently being trained, and a total of 14 new apprentices were accepted in 2012.
Premium development
In the property and casualty insurance segment, UNIQA again enjoyed successful growth in 2012, increasing its premiums written by 5.6 per cent to €2,545.9 million (2011: €2,409.8 million). The premium volume in Austria increased by 2.5 per cent to €1,438.9 million (2011: €1,403.4 million).
Growth also continued unabated in the CEE region. Premiums written increased by 5.7 per cent to €904.1 million (2011: €855.2 million), thereby accounting for 35.5 per cent (2011: 35.5 per cent) of Group premiums written in the property and casualty segment.
The premium volume written in the Western European markets increased by 34.1 per cent to €202.9 million as a result of the strong growth in Italy (2011: €151.3 million). Western Europe accounted for 8.0 per cent (2011: 6.3 per cent) of Group premiums. All in all, international markets were responsible for 43.5 per cent of Group premiums written in the property and casualty segment (2011: 41.8 per cent).
Details on the premium volume written in the most important risk classes can be found in the notes to the consolidated financial statements (note 31).
Retained premiums earned (in accordance with IFRS) in the property and casualty insurance segment totalled €2,394.4 million in the year under review (2011: €2,254.6 million), representing an increase of 6.2 per cent.
| Property and casualty insurance Figures in € million |
2012 | 2011 | 2010 |
|---|---|---|---|
| Premiums written | 2,545.9 | 2,409.8 | 2,307.8 |
| Share Central and Eastern Europe | 35.5 % | 35.5 % | 35.6 % |
| Share Western Europe | 8.0 % | 6.3 % | 5.4 % |
| International share | 43.5 % | 41.8 % | 41.0 % |
| Premiums earned (net) | 2,394.4 | 2,254.6 | 2,152.7 |
| Net investment income | 85.3 | 39.7 | 72.6 |
| Insurance benefits (net) | – 1,638.8 | – 1,533.4 | – 1,542.6 |
| Loss ratio (after reinsurance) | 68.4 % | 68.0 % | 71.7 % |
| Loss ratio (before reinsurance) | 66.6 % | 65.8 % | 69.0 % |
| Operating expenses less reinsurance commission | – 786.8 | – 831.3 | – 708.3 |
| Cost ratio (after reinsurance) | 32.9 % | 36.9 % | 32.9 % |
| Cost ratio (before reinsurance) | 31.5 % | 35.4 % | 31.6 % |
| Combined ratio (after reinsurance) | 101.3 % | 104.9 % | 104.6 % |
| Combined ratio (before reinsurance) | 98.1 % | 101.2 % | 100.6 % |
| Profit/loss on ordinary activities | – 12.2 | – 133.0 | – 33.6 |
| Net profit/loss | – 9.9 | – 63.0 | – 46.2 |
| Consolidated profit/loss | – 15.5 | – 63.1 | – 50.4 |
Owing to an increase in the number of major claims and claims due to natural disasters, the total amount of retained insurance benefits increased by 6.9 per cent to €1,638.8 million in 2012 (2011: €1,533.4 million).
In Austria, insurance benefits in the property and casualty insurance segment rose by 9.9 per cent to €1,026.5 million (2011: €934.2 million), while the figure for the Western European markets increased by 28.3 per cent to €118.8 million (2011: €92.6 million). By contrast, insurance benefits in the Central and Eastern European countries declined by 2.6 per cent to €493.6 million (2011: €506.5 million).
As a result of this development, the net loss ratio (retained insurance benefits as a proportion of premiums earned) fell slightly by 0.4 percentage points to 68.4 per cent (2011: 68.0 per cent). The gross loss ratio (before reinsurance) at year-end 2012 was 66.6 per cent (2011: 65.8 per cent).
The net loss ratio in Austria amounted to 72.2 per cent in the year under review (2011: 67.4 per cent), while the figure for CEE declined to 59.8 per cent thanks to the positive development of claims (2011: 64.5 per cent). The Western European companies recorded a net loss ratio of 80.7 per cent for 2012 (2011: 110.9 per cent).
Total operating expenses in the property and casualty insurance segment less reinsurance commission and profit shares from reinsurance business ceded decreased by 5.4 per cent to €786.8 million (2011: €831.3 million). Although acquisition costs increased by 10.7 per cent to €546.6 million (2011: €493.7 million), other operating expenses fell by 28.9 per cent to €240.2 million (2011: €337.6 million).
In Austria, operating expenses in the property and casualty insurance segment fell by 15.6 per cent to €418.5 million (2011: €495.5 million); in Central and Eastern Europe, they increased by 5.6 per cent to €315.4 million (2011: €298.7 million), while the figure for the Western European markets rose by 42.5 per cent to €52.9 million (2011: €37.1 million).
The cost ratio in the property and casualty insurance segment (after reinsurance) declined to 32.9 per cent in the past financial year as a result of this development (2011: 36.9 per cent).
In 2012, the net combined ratio fell to 101.3 per cent (2011: 104.9 per cent), while the combined ratio before reinsurance improved to 98.1 per cent (2011: 101.2 per cent).
Net investment income increased by 114.8 per cent to €85.3 million in the past financial year (2011: €39.7 million). Investments in property and casualty insurance rose by 5.8 per cent to €3,564.2 million (2011: €3,367.8 million).
The profit/loss on ordinary activities in the life insurance segment improved to minus €12.2 million in 2012 (2011: minus €133.0 million). The net profit/loss for the period amounted to minus €9.9 million (2011: minus €63.0 million). The consolidated net profit/loss after taxes and minority interests amounted to minus €15.5 million (2011: minus €63.1 million).
In 2012, the premium volume written in the health insurance segment increased by 3.3 per cent year-on-year to €909.2 million (2011: €880.1 million). In Austria, where UNIQA is the clear market leader in the health insurance segment, premiums of €835.4 million were generated, up 2.6 per cent on the previous year (2011: €813.8 million).
In Western Europe, premiums written increased by 2.0 per cent to €41.9 million (2011: €41.1 million). In the growth markets of CEE, premiums in the health insurance segment increased to a significantly larger extent, rising by 26.6 per cent to €31.9 million (2011: €25.2 million). All in all, this meant that the international share of health insurance premiums written in 2012 was 8.1 per cent (2011: 7.5 per cent).
In 2012, retained premiums earned in the health insurance segment (in accordance with IFRS) rose by 3.3 per cent to €903.0 million at the end of the year (2011: €873.9 million).
| Health insurance Figures in € million |
2012 | 2011 | 2010 |
|---|---|---|---|
| Premiums written | 909.1 | 880.1 | 846.6 |
| Share Central and Eastern Europe | 3.5 % | 2.9 % | 2.0 % |
| Share Western Europe | 4.6 % | 4.7 % | 4.6 % |
| International share | 8.1 % | 7.5 % | 6.5 % |
| Premiums earned (net) | 903.0 | 873.9 | 843.0 |
| Net investment income | 92.6 | – 9.4 | 108.1 |
| Insurance benefits (net) | – 756.5 | – 738.1 | – 714.8 |
| Benefit and loss ratio (after reinsurance) | 83.8 % | 84.5 % | 84.8 % |
| Operating expenses less reinsurance commission | – 138.6 | – 143.4 | – 124.1 |
| Cost ratio (after reinsurance) | 15.3 % | 16.4 % | 14.7 % |
| Profit/loss on ordinary activities | 103.1 | – 18.0 | 112.2 |
| Net profit/loss | 81.7 | – 13.5 | 82.6 |
| Consolidated profit/loss | 57.3 | – 18.3 | 37.6 |
In 2012, retained insurance benefits increased marginally by 2.5 per cent to €756.5 million (2011: €738.1 million). As premiums earned rose to a greater extent, the benefit and loss ratio after reinsurance fell by 0.7 percentage points year-on-year to 83.8 per cent (2011: 84.5 per cent).
In Austria, insurance benefits rose by 2.0 per cent to €711.8 million (2011: €697.7 million). The figure for the Western European markets increased by 6.8 per cent to €27.3 million (2011: €25.5 million). In the Central and Eastern European countries, insurance benefits also increased by 17.4 per cent to €17.4 million as a result of the sharp rise in premium revenues (2011: €14.8 million).
Total operating expenses in the health insurance segment less reinsurance commission and profit shares from reinsurance business ceded decreased by 3.3 per cent to €138.6 million (2011: €143.4 million). Acquisition costs increased by 11.6 per cent to €88.4 million (2011: €79.2 million), while other operating expenses fell by 21.7 per cent to €50.2 million (2011: €64.1 million). As a result of this development, the cost ratio in the health insurance segment declined to 15.3 per cent (2011: 16.4 per cent).
In Austria, operating expenses decreased by 5.3 per cent to €115.4 million (2011: €121.8 million), while the figure for the Western European markets rose by 2.6 per cent to €15.4 million (2011: €15.0 million). Operating expenses in the CEE region increased by 19.1 per cent to €7.7 million (2011: €6.5 million).
In 2012, net investment income in the health insurance segment increased to €92.6 million (2011: minus €9.4 million). The investment volume in the health insurance sector declined by 14.9 per cent to €2,492.2 million in 2012 (31 December 2011: €2,927.6 million).
The profit/loss on ordinary activities in the health insurance segment amounted to €103.1 million in the year under review (2011: minus €18.0 million). The net profit/loss for the period amounted to €81.7 million (2011: minus €13.5 million), while the consolidated net profit/loss after taxes and minority interests amounted to €57.3 million (2011: consolidated net loss of €18.3 million).
In 2012, the premium volume written in the life insurance segment including the savings portion of unit- and index-linked life insurance declined by 7.0 per cent to €2,088.1 million (2011: €2,244.3 million) due to the downturn in the area of single premium business in Austria and Poland. Premiums from policies with recurring premium payments fell by 5.4 per cent to €1,554.6 million (2011: €1,643.4 million). The aforementioned deterioration in the single premium business saw premiums falling by 11.2 per cent to €533.5 million (2011: €600.9 million). Traditional single premiums declined by 41.7 per cent to €246.3 million (2011: €422.4 million), while single premiums in the area of unit-linked life insurance increased by 61.0 per cent to €287.2 million (2011: €178.4 million).
Figures in € million
Premium development in Austria in 2012 was largely unsatisfactory. The premium volume for products with recurring premiums fell by 9.7 per cent to €1,199.8 million (2011: €1,328.6 million). The single premium business was again impacted by the extension of the minimum holding period to benefit from tax advantages from 10 to 15 years, with premiums decreasing by 34.2 per cent to €92.1 million (2011: €140.0 million). All in all, the life insurance premium volume in Austria decreased by 12.0 per cent to €1,291.9 million (2011: €1,468.6 million).
The life insurance business of the Group companies in the Central and Eastern European regions stabilised in 2012. The premium volume written including the savings portion of unitand index-linked life insurance declined marginally by 0.1 per cent to €359.4 million (2011: €359.7 million). While single premiums fell by 22.6 per cent to €112.1 million (2011: €144.8 million), recurring premiums enjoyed extremely satisfactory development, rising by 15.1 per cent to €247.3 million (2011: €214.9 million). All in all, the share of life insurance attributable to these countries amounted to 17.2 per cent in 2012 (2011: 16.0 per cent).
In the Western European countries, the premium volume increased by 5.0 per cent to €436.7 million (2011: €416.0 million) due to the strong business performance in Italy. Single premiums rose by 4.2 per cent to €329.2 million (2011: €316.1 million), while recurring premiums increased by an impressive 7.6 per cent to €107.5 million (2011: €99.9 million). All in all, this meant that the Western Europe region contributed 20.9 per cent (2011: 18.5 per cent) to the Group's total life insurance premiums.
The risk premium share of the unit- and index-linked life insurance included in the consolidated financial statements amounted to €92.7 million in 2012 (2011: €139.1 million). The savings portion contained in the premiums of the fund- and index-linked life insurance segments amounted to €679.0 million (2011: €633.9 million) and was offset against the changes in actuarial provisions in accordance with FAS 97 (U.S. GAAP).
Including the savings portion of unit- and index-linked life insurance (after reinsurance) in the amount of €649.9 million (2011: €599.7 million), premiums earned in the life insurance segment fell by 7.5 per cent to €1,976.4 million (2011: €2,136.2 million). Retained premiums earned (in accordance with IFRS) decreased by 13.7 per cent to €1,326.5 million in 2012 (2011: €1,536.5 million).
| Life insurance Figures in € million |
2012 | 2011 | 2010 |
|---|---|---|---|
| Premiums written | 1,409.1 | 1,610.3 | 1,800.6 |
| Saving portion of premiums from unit- and index-linked life insurance | 679.0 | 633.9 | 845.1 |
| Premiums written including the savings portions of premiums from unit | |||
| and index-linked life insurance | 2,088.1 | 2,244.3 | 2,645.7 |
| Recurring premiums | 1,554.6 | 1,643.4 | 1,563.2 |
| Single premiums | 533.5 | 600.9 | 1,082.5 |
| Share Central and Eastern Europe | 17.2 % | 16.0 % | 17.2 % |
| Share Western Europe | 20.9 % | 18.5 % | 19.5 % |
| International share | 38.1 % | 34.6 % | 36.7 % |
| Premiums earned (net) | 1,326.5 | 1,536.5 | 1,728.3 |
| Saving portion of premiums from unit- and index-linked life insurance | |||
| (after reinsurance) | 649.9 | 599.7 | 823.1 |
| Premiums earned including the savings portions of premiums from unit | |||
| and index-linked life insurance | 1,976.4 | 2,136.2 | 2,551.4 |
| Net investment income | 613.7 | 171.6 | 651.7 |
| Insurance benefits (net) | – 1,363.2 | – 1,386.5 | – 1,867.7 |
| Benefit and loss ratio (after reinsurance) | 69.0 % | 64.9 % | 73.2 % |
| Operating expenses less reinsurance commission | – 393.9 | – 438.1 | – 382.1 |
| Cost ratio (after reinsurance) | 19.9 % | 20.5 % | 15.0 % |
| Profit/loss on ordinary activities | 114.4 | – 171.3 | 77.3 |
| Net profit/loss | 98.0 | – 167.3 | 58.6 |
| Consolidated profit/loss | 88.4 | – 164.2 | 55.1 |
Retained insurance benefits fell by 1.7 per cent to €1,363.2 million in the year under review (2011: €1,386.5 million), meaning that the benefit and loss ratio after reinsurance amounted to 69.0 per cent (2011: 64.9 per cent).
Insurance benefits in Austria increased by 14.7 per cent to €976.9 million (2011: €852.0 million). In Western Europe, insurance benefits decreased by 32.0 per cent to €252.5 million (2011: €371.2 million), while the figure for Central and Eastern Europe fell by 18.0 per cent to €133.8 million (2011: €163.3 million).
Total operating expenses in the life insurance segment less reinsurance commission and profit shares from reinsurance business ceded declined by 10.1 per cent to €393.9 million in 2012 (2011: €438.1 million). Acquisition costs fell by 6.0 per cent to €320.8 million (2011: €341.4 million), while other operating expenses decreased by 24.4 per cent to €73.1 million (2011: €96.7 million). The cost ratio in life insurance, i.e. the ratio of all operating expenses to Group premiums earned including the savings portion of unit- and index-linked life insurance (after reinsurance), fell to 19.9 per cent (2011: 20.5 per cent).
In Austria, operating expenses decreased by 21.2 per cent to €241.7 million (2011: €306.6 million). The figure for the CEE region increased by 13.5 per cent to €112.2 million (2011: €98.9 million). By contrast, operating expenses in the Western European countries increased by 22.9 per cent to €40.0 million (2011: €32.6 million).
Net income from investments increased by 257.7 per cent to €613.7 million in the year under review (2011: €171.6 million). Investments, including the investments for unit- and indexlinked life insurance, rose by 10.6 per cent to €20,251.2 million (31 December 2011: €18,305.7 million).
The profit/loss on ordinary activities in the life insurance segment amounted to €114.4 million in the year under review (2011: minus €171.3 million). The net profit/loss for the period increased to €98.0 million (2011: minus €167.3 million), while the consolidated net profit/loss after taxes and minority interests amounted to €88.4 million (2011: consolidated net loss of €164.2 million).
UNIQA's international premium volume (including the savings portion of unit- and indexlinked life insurance) increased by 7.0 per cent to €1,977.0 million in 2012 thanks to the good performance in CEE and Western Europe (2011: €1,848.4 million). The international share of Group premiums rose to 35.7 per cent as a result (2011: 33.4 per cent).
Including the savings portion of unit- and index-linked life insurance (after reinsurance), premiums earned increased by 8.0 per cent to €1,803.0 million (2011: €1,669.2 million). However, retained premiums earned (in accordance with IFRS) declined by 1.4 per cent to €1,510.7 million (2011: €1,532.1 million).
In Central Europe (CE) – Poland, Slovakia, the Czech Republic and Hungary – premiums written decreased by 1.0 per cent to €859.5 million (2011: €868.3 million). In the Eastern Europe (EE) region – consisting of Romania and Ukraine – the premium volume written increased strongly by 26.6 per cent to €199.5 million in 2012 (2011: €157.6 million). Southeastern Europe (SEE) – Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Macedonia, Montenegro and Serbia – again enjoyed encouraging premium growth of 3.3 per cent to €193.5 million in 2012 (2011: €187.4 million). The strongest premium growth was generated in the Russian market (RU), where premiums increased by 60.6 per cent to €43.0 million (2011: €26.8 million).
All in all, the Group's premiums in CEE increased by 4.5 per cent to €1,295.5 million (2011: €1,240.1 million). Recurring premiums enjoyed even more positive development in 2012, rising by 8.0 per cent to €1,183.4 million (2011: €1,095.3 million). However, single premium business declined strongly, particularly in Poland, falling by 22.6 per cent to €112.1 million (2011: €144.8 million). In 2012, the share of Group premiums attributable to CEE amounted to 23.4 per cent (2011: 22.4 per cent).
The premium volume in Western Europe (WE) – consisting of Italy, Liechtenstein and Switzerland – also increased by 12.0 per cent to €681.5 million on the back of the strong performance in Italy (2011: €608.3 million). Recurring premiums enjoyed even stronger growth of 20.6 per cent to €352.3 million (2011: €292.2 million), while single premiums rose by 4.2 per cent to €329.2 million (2011: €316.1 million). Western Europe's share of Group premiums amounted to 12.3 per cent in 2012 (2011: 11.0 per cent).
Accordingly, the Group's level of internationalisation at year-end 2012 was 35.7 per cent (2011: 33.4 per cent).
The premium volume written including the savings portion of unit- and index-linked life insurance was broken down among UNIQA's individual regions as follows:
| UNIQA international markets | Premiums written1) | Share of Group Premiums |
||
|---|---|---|---|---|
| 2012 | 2011 | 2010 | 2012 | |
| Central Europe (CE) | 859.5 | 868.3 | 954.5 | 15.5 % |
| Eastern Europe (EE) | 199.5 | 157.6 | 158.4 | 3.6 % |
| Southeastern Europe (SEE) | 193.5 | 187.4 | 169.3 | 3.5 % |
| Russia (RU) | 43.0 | 26.8 | 11.7 | 0.8 % |
| Western Europe (WE) | 681.5 | 608.3 | 677.3 | 12.3 % |
| Total international markets | 1,977.0 | 1,848.4 | 1,971.3 | 35.7% |
1) Including the savings portion of premiums from unit- and index-linked life insurance
Total retained insurance benefits at the international Group companies fell by 11.1 per cent to €1,043.4 million in 2012 (2011: €1,173.9 million).
Benefits fell by 8.0 per cent to €420.4 million in the Central Europe region (2011: €457.0 million) and by 13.0 per cent to €96.5 million in Eastern Europe (2011: €110.9 million). By contrast, benefits in the Southeastern Europe region increased slightly by 2.1 per cent to €104.5 million (2011: €102.4 million). Benefits in Russia amounted to €23.3 million in 2012 (2011: €14.3 million). In Western Europe, the benefit volume fell by 18.5 per cent to €398.6 million (2011: €489.3 million).
Operating expenses at the international Group companies less reinsurance commission received rose by 11.2 per cent to €543.8 million in 2012 (2011: €488.8 million).
In Central Europe, operating expenses increased by 5.6 per cent to €257.8 million (2011: €244.1 million), while the figure for Eastern Europe also rose by 19.2 per cent to €77.6 million (2011: €65.1 million). In Southeastern Europe, operating expenses increased slightly by 2.2 per cent to €80.2 million (2011: €78.4 million). In Russia, operating expenses rose by 20.6 per cent to €19.8 million in the past financial year (2011: €16.4 million), while expenses in Western Europe increased by 27.8 per cent to €108.4 million (2011: €84.8 million).
Net investment income at the international Group companies increased by 54.5 per cent to €151.5 million in 2012 as a result of positive developments on the financial markets (2011: €98.0 million). The investment result in Western Europe improved by 55.8 per cent to €81.8 million (2011: €52.5 million), while the figure for CEE rose by 53.0 per cent to €69.7 million (2011: €45.5 million).
Before consolidation based on the geographic segments (see segment reporting), the profit on ordinary activities generated by the companies in the regions outside Austria in 2012 amounted to €62.5 million (2011: loss of €25.2 million). Earnings before taxes in CEE improved to €13.2 million (2011: € -28.2 million), while the figure for Western Europe amounted to €49.3 million (2011: €3.0 million).
There were no events requiring reporting after the balance sheet date.
The economic policy framework of the European Monetary Union was strengthened in 2012, but the possibility of setbacks cannot be fully excluded. The structural reform process in certain countries (e.g. Italy) is not yet complete, and political upheaval could lead to a renewed loss of confidence among the markets in 2013. However, systemic risk in the euro zone is likely to have reduced over the past year. The prevailing mood at the start of the year is that of optimism for a global economic upturn in 2013. The emerging economies will remain the global growth drivers. Expansionary fiscal policy may help to boost economic activity. Following stabilisation in the euro zone, an economic upturn should also benefit the CEE region in the second half of the year.
UNIQA is anticipating growth in its health insurance business in particular in 2013. Property and motor vehicle insurance are expected to see a positive trend. UNIQA is forecasting stable demand in the life insurance segment. In 2013, UNIQA will work towards achieving a sustainable improvement in profitability across all insurance sectors.
Experts expect the CEE markets to continue to significantly outperform the euro zone over the coming years in terms of economic growth. Although the sustained recession in the euro zone will continue to influence growth in CEE, Eastern Europe is expected to see a general economic recovery in 2013. Economists are forecasting positive economic growth for all of the markets in the region except Slovenia, which is dealing with a crisis in its banking sector. Momentum will be provided by domestic demand in particular, including as a result of the relaxation of restrictive austerity policies in some countries.
The Polish economy is set to develop positively in 2013, although the growth forecast is slightly lower than for the last two years. In addition to robust domestic demand, the country benefits from its proximity to strong export markets such as Germany, among other things. The export-oriented automotive industry is expected to provide further impetus for growth in Slovakia in 2013. In Southeastern Europe, the forthcoming accession of Croatia to the EU and the recognition of Serbia and Montenegro as candidate states are likely to provide positive momentum in the region in the medium term. Russia and Ukraine are expected to see significantly stronger economic growth in 2013 than in the previous year.
UNIQA's aim is to sustainably outperform the market in terms of growth in CEE – with a focus on profitability and value. We will continue to pursue this approach in 2013.
We have set ourselves the target of achieving a further improvement in 2013 profit on ordinary activities compared with 2012. 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 Versicherungen AG prepared in accordance with the Austrian Commercial Code report a net retained profit for the 2012 financial year of €53,739,218.05 (2011: €1,607,787.76). The Management Board will propose to the Annual General Meeting on 27 May 2013 that this net retained profit be used to pay a dividend of €0.25 for each of the 214,247,900 issued no-par value shares with dividend rights at the reporting date and that the remaining amount be carried forward to new account.
Vienna, 21 March 2013
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
| Assets | Notes | 31.12.2012 | 31.12.2011 | |
|---|---|---|---|---|
| Figures in € thousand A. Tangible assets |
||||
| I. Self-used land and buildings | 1 | 194,151 | 252,288 | |
| II. Other tangible assets | 2 | 112,604 | 131,261 | |
| 306,755 | 383,549 | |||
| B. Land and buildings held as financial investments | 3 | 1,690,763 | 1,566,958 | |
| C. Intangible assets | ||||
| I. Deferred acquisition costs | 4 | 868,802 | 899,732 | |
| II. Goodwill | 5 | 520,435 | 570,048 | |
| III. Other intangible assets | 6 | 25,170 | 30,551 | |
| 1,414,406 | 1,500,331 | |||
| D. Shares in associated companies | 7 | 529,602 | 530,485 | |
| E. Investments | ||||
| I. Variable-yield securities | ||||
| 1. Available for sale | 9 | 1,395,902 | 1,636,133 | |
| 2. At fair value through profit or loss | 371,262 | 549,296 | ||
| 1,767,164 | 2,185,429 | |||
| II. Fixed interest securities | ||||
| 1. Available for sale | 9 | 13,186,622 | 11,215,448 | |
| 2. At fair value through profit or loss | 441,623 | 389,645 | ||
| 13,628,244 | 11,605,094 | |||
| III. Loans and other investments | ||||
| 1. Loans | 11 | 1,089,649 | 2,189,439 | |
| 2. Cash at credit institutions/cash at banks | 12 | 1,189,217 | 1,023,133 | |
| 3. Deposits with ceding companies | 12 | 129,755 | 140,657 | |
| 2,408,621 | 3,353,229 | |||
| IV. Derivative financial instruments | ||||
| 1. Variable-yield | 10 | 6,363 | 4,160 | |
| 2. Fixed interest | 10 | 55,844 | 24,338 | |
| 62,206 | 28,498 | |||
| 17,866,236 | 17,172,249 | |||
| F. Investments held on account and at risk of life insurance policyholders | 24 | 5,066,828 | 4,396,016 | |
| G. Share of reinsurance in technical provisions | ||||
| I. Provision for unearned premiums | 19 | 9,869 | 18,542 | |
| II. Actuarial provision | 20 | 434,379 | 455,835 | |
| III. Provision for outstanding claims | 21 | 159,763 | 207,271 | |
| IV. Provision for profit-unrelated premium refunds | 22 | 0 | 4 | |
| V. Provision for profit-related premium refunds, i.e. policyholder profit sharing | 22 | 0 | 0 | |
| VI. Other technical provisions | 1,836 | 2,494 | ||
| 23 | 605,847 | 684,146 | ||
| H. Share of reinsurance in technical provisions held on account and at risk of life insurance policyholders | 24 | 408,818 | 405,513 | |
| I. | Receivables including receivables under insurance business | 13 | ||
| I. Reinsurance receivables | 42,623 | 58,825 | ||
| II. Other receivables | 845,186 | 870,767 | ||
| III. Other assets | 48,369 | 58,404 | ||
| 936,179 | 987,996 | |||
| J. Receivables from income tax | 14 | 54,561 | 51,156 | |
| K. Deferred tax assets | 15 | 133,504 | 206,166 | |
| L. Liquid funds | 960,065 | 683,094 | ||
| M. Assets in disposal groups available for sale | 8 | 63,661 | 0 | |
| Total assets | 30,037,224 | 28,567,658 |
| - | ||
|---|---|---|
| Equity and liabilities Figures in € thousand |
Notes | 31.12.2012 | 31.12.2011 |
|---|---|---|---|
| A. Total equity | |||
| I. Shareholders' equity | 16 | ||
| 1. Subscribed capital and capital reserves | 1,064,594 | 540,681 | |
| 2. Revenue reserves | 656,708 | 414,397 | |
| 3. Revaluation reserves | 315,528 | –44,663 | |
| 4. Actuarial gains and losses on defined benefit plans | –95,260 | –36,147 | |
| 5. Group total profit/loss | 53,739 | 1,608 | |
| 1,995,309 | 875,876 | ||
| II. Minority interests in shareholders' equity | 17 | 22,272 | 219,708 |
| 2,017,581 | 1,095,584 | ||
| B. Subordinated liabilities | 18 | 450,000 | 575,000 |
| C. Technical provisions | |||
| I. Provision for unearned premiums | 19 | 617,165 | 616,034 |
| II. Actuarial provision | 20 | 16,158,189 | 16,706,249 |
| III. Provision for outstanding claims | 21 | 2,365,841 | 2,456,528 |
| IV. Provision for profit-unrelated premium refunds | 22 | 44,578 | 51,533 |
| V. Provision for profit-related premium refunds, i.e. policyholder profit sharing | 22 | 556,218 | 7,786 |
| VI. Other technical provisions | 48,929 | 49,982 | |
| 23 | 19,790,921 | 19,888,111 | |
| D. Technical provisions held on account and at risk of life insurance policyholders | 24 | 4,983,029 | 4,318,331 |
| E. Financial liabilities | |||
| I. Liabilities from loans | 25 | 27,494 | 47,114 |
| II. Derivatives | 10 | 7,471 | 26,598 |
| 34,965 | 73,711 | ||
| F. Other provisions | |||
| I. Pensions and similar provisions | 26 | 566,620 | 593,019 |
| II. Other provisions | 27 | 349,017 | 195,090 |
| 915,637 | 788,109 | ||
| G. Payables and other liabilities | 28 | ||
| I. Reinsurance liabilities | 887,405 | 902,472 | |
| II. Other payables | 515,807 | 572,126 | |
| III. Other liabilities | 31,226 | 43,318 | |
| 1,434,438 | 1,517,916 | ||
| H. Liabilities from income tax | 29 | 28,557 | 19,157 |
| I. Deferred tax liabilities | 30 | 370,905 | 291,739 |
| J. Liabilities in disposal groups available for sale | 8 | 11,191 | 0 |
Total equity and liabilities 30,037,224 28,567,658
| Figures in € thousand | Notes | 2012 | 2011 |
|---|---|---|---|
| 1. Premiums written (retained) | 31 | ||
| a) Gross | 4,864,151 | 4,900,239 | |
| b) Reinsurers' share | –213,504 | –196,908 | |
| 4,650,647 | 4,703,331 | ||
| 2. Change due to premiums earned (retained) | |||
| a) Gross | –18,435 | –34,654 | |
| b) Reinsurers' share | –8,302 | –3,715 | |
| –26,738 | –38,369 | ||
| 3. Premiums earned (retained) | 32 | ||
| a) Gross | 4,845,715 | 4,865,584 | |
| b) Reinsurers' share | –221,806 | –200,623 | |
| 4,623,909 | 4,664,962 | ||
| 4. Income from fees and commissions | 33 | ||
| Reinsurance commission and profit shares from reinsurance business ceded | 35,731 | 29,271 | |
| 5. Net investment income | 34 | 791,546 | 201,818 |
| of which profit from associated companies | 19,053 | 1,934 | |
| 6. Other income | 35 | 46,562 | 76,774 |
| Total income | 5,497,748 | 4,972,824 | |
| 7. Insurance benefits | 36 | ||
| a) Gross | –3,873,806 | –3,762,992 | |
| b) Reinsurers' share | 115,261 | 105,091 | |
| –3,758,545 | –3,657,901 | ||
| 8. Operating expenses | 37 | ||
| a) Acquisition costs | –955,802 | –914,339 | |
| b) Other operating expenses | –399,204 | –527,715 | |
| –1,355,006 | –1,442,054 | ||
| 9. Other expenses 10. Amortisation of goodwill |
38 | –122,954 –24,937 |
–139,037 –24,160 |
| Total expenses | –5,261,442 | –5,263,151 | |
| 11. Operating profit | 236,306 | –290,327 | |
| 12. Financing costs | –30,955 | –31,975 | |
| 13. Profit on ordinary activities | 205,351 | –322,302 | |
| 14. Income taxes | 39 | –45,423 | 77,720 |
| 15. Result from discontinued operations (after taxes) | 9,873 | 733 | |
| 16. Net profit/loss | 169,801 | –243,849 | |
| of which consolidated profit/loss | 130,225 | –245,614 | |
| of which minority interests | 39,575 | 1,765 | |
| Earnings per share (in €) | 16 | 0.77 | –1.73 |
| Average number of shares in circulation | 169,599,813 | 142,165,567 |
1) The diluted earnings per share is equal to the undiluted earnings per share. Calculated on the basis of the consolidated profit.
| 2012 | 2011 |
|---|---|
| 169,801 | –243,849 |
| 11,650 | –35,453 |
| 0 | 0 |
| 1,234,070 | –10,259 |
| –168,733 | 18,984 |
| –652,986 | –35,391 |
| –100,122 | –61,289 |
| 10,948 | 7,757 |
| 72,291 | 41,774 |
| –2,241 | –5,851 |
| 0 | 0 |
| –94,757 | –20,449 |
| 18,049 | 5,224 |
| 21,096 | 451 |
| –360 | –1,482 |
| 348,904 | –95,985 |
| 518,705 | –339,834 |
| 448,916 | –344,413 |
| 69,789 | 4,579 |
1) The other changes result primarily from currency fluctuations.
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| Net profit/loss including minority interests | ||
| Net profit/loss | 169,801 | –243,849 |
| of which interest and dividend payments | –10,296 | –8,400 |
| Minority interests | –39,575 | –1,765 |
| Change in technical provisions (net) | 1,673,315 | 346,724 |
| Change in deferred acquisition costs | –19,401 | –8,601 |
| Change in amounts receivable and payable from direct insurance | –15,859 | –5,468 |
| Change in other amounts receivable and payable | –15,561 | –134,633 |
| Change in securities at fair value through profit or loss | 92,347 | 72,572 |
| Realised gains/losses on the disposal of investments | –1,349,752 | –117,282 |
| Depreciation/appreciation of other investments | 127,053 | 516,945 |
| Change in provisions for pensions and severance payments | 99,546 | 68,643 |
| Change in deferred tax assets/liabilities | 146,204 | –124,499 |
| Change in other balance sheet items | 125,394 | 50,948 |
| Change in goodwill and intangible assets | 180,960 | 30,800 |
| Other non-cash income and expenses as well as accounting period adjustments | –41,501 | –56,647 |
| Net cash flow from operating activities | 1,132,971 | 393,889 |
| of which cash flow from income tax | –27,828 | –55,221 |
| Receipts due to disposal of consolidated companies | 180,020 | 242 |
| Payments due to acquisition of consolidated companies | –388,167 | –79,936 |
| Receipts due to disposal and maturity of other investments | 9,651,286 | 7,211,346 |
| Payments due to acquisition of other investments | –9,957,761 –7,114,763 | |
| Change in investments held on account and at risk of life insurance policyholders | –670,890 | –203,287 |
| Net cash flow used in investing activities | –1,185,513 | –186,398 |
| Share capital increase | 523,913 | 0 |
| Change in investments on own shares | 0 | 0 |
| Dividend payments | 0 | –56,866 |
| Receipts and payments from other financing activities | –188,904 | –1,391 |
| Net cash flow used in financing activities | 335,009 | –58,258 |
| Change in cash and cash equivalents | 282,466 | 149,234 |
| Change in cash and cash equivalents due to foreign currency translation | 1,039 | –3,714 |
| Change in cash and cash equivalents due to acquisition/disposal of consolidated companies | –6,534 | 4,671 |
| Cash and cash equivalents at beginning of period | 683,094 | 532,903 |
| Cash and cash equivalents at end of period | 960,065 | 683,094 |
| of which cash flow from income tax | –27,828 | –55,221 |
The cash and cash equivalents correspond to item L. of the assets: Liquid funds.
Cash flow statement from dicontinued operations:
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| Net cash flow from operating activities | 1,103 | –1,998 |
| Net cash flow used in investing activities | 5,036 | 4,869 |
| Net cash flow used in financing activities | 0 | 0 |
| Change in cash and cash equivalents | 6,140 | 2,871 |
The UNIQA Group recorded the sale of its majority stake in Mannheimer AG Holding (approximately 91.7 per cent of the share capital), which is a listed company, to the "Die Continentale" insurance group on 16 April 2012. Legal completion of the transaction took place on 29 June 2012. Details on the result from discontinued operations can be found in the Notes on the scope of consolidation on pages 94-95.
| Subscribed capital and capital reserves | Revaluation reserve | Actuarial gains and losses on defined benefit plans |
||
|---|---|---|---|---|
| Figures in € thousand | ||||
| As at 1.1.2011 | 540,681 | –2,511 | –22,287 | |
| Changes due to: | ||||
| Change in consolidation scope | ||||
| Dividends to shareholders | ||||
| Income and expenses according to the consolidated comprehensive | ||||
| income statement | –42,152 | –13,860 | ||
| Foreign currency translation | ||||
| Unrealised gains and losses from valuation at equity | ||||
| Unrealised capital gains and losses from investments | –42,152 | |||
| Actuarial gains and losses on defined benefit plans | –13,860 | |||
| Net profit/loss | ||||
| Changes in revenue reserves | ||||
| Other | ||||
| As at 31.12.2011 | 540,681 | –44,663 | –36,147 | |
| Changes due to: | ||||
| Capital increase | 523,913 | |||
| Change in consolidation scope | ||||
| Dividends to shareholders | ||||
| Income and expenses according to the consolidated comprehensive income | ||||
| statement | 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/loss | ||||
| Changes in revenue reserves | ||||
| Other | ||||
| As at 31.12.2012 | 1,064,594 | 315,528 | –95,260 |
| Revenue reserves including reserves for own shares |
Holding of own shares | Profits/Losses carried forward and net profit/loss for the year |
Shareholders' equity | Minority interests |
Total equity |
|---|---|---|---|---|---|
| 729,077 | –10,857 | 43,053 | 1,277,155 | 244,299 | 1,521,454 |
| –14,357 | –14,357 | ||||
| –56,866 | –56,866 | –14,813 | –71,679 | ||
| –303,822 | 15,421 | –344,413 | 4,579 | –339,834 | |
| –35,453 | –35,453 | –35,453 | |||
| –5,851 | –5,851 | 0 | –5,851 | ||
| 0 | –42,152 | 3,728 | –38,424 | ||
| –13,860 | –915 | –14,775 | |||
| 0 | –245,614 | –245,614 | 1,765 | –243,849 | |
| –261,036 | 261,036 | 0 | 0 | ||
| –1,482 | 0 | –1,482 | –1,482 | ||
| 425,255 | –10,857 | 1,608 | 875,876 | 219,708 | 1,095,584 |
| 523,913 | 523,913 | ||||
| 146,604 | 146,604 | –266,335 | –119,731 | ||
| 0 | 0 | –890 | –890 | ||
| 95,706 | 52,131 | 448,916 | 69,789 | 518,705 | |
| 11,650 | 11,650 | 11,650 | |||
| –2,241 | –2,241 | –2,241 | |||
| 360,191 | 35,276 | 395,467 | |||
| 8,563 | –50,549 | –5,062 | –55,612 | ||
| 130,225 | 130,225 | 39,575 | 169,801 | ||
| 78,094 | –78,094 | ||||
| –360 | –360 | –360 | |||
| 667,565 | –10,857 | 53,739 | 1,995,309 | 22,272 | 2,017,581 |
| Property and casualty | Health | ||||
|---|---|---|---|---|---|
| Figures in € thousand | 31.12.2012 | 31.12.2011 | 31.12.2012 | 31.12.2011 | |
| Assets | |||||
| A. Tangible assets | 150,970 | 165,669 | 25,855 | 29,471 | |
| B. Land and buildings held as financial investments | 224,654 | 282,815 | 299,825 | 294,744 | |
| C. Intangible assets | 492,580 | 545,595 | 223,973 | 243,396 | |
| D. Shares in associated companies | 15,223 | 14,696 | 193,599 | 193,410 | |
| E. Investments | 2,984,787 | 2,895,287 | 1,974,033 | 2,230,918 | |
| F. Investments held on account and at risk of life insurance policyholders |
0 | 0 | 0 | 0 | |
| G. Share of reinsurance in technical provisions | 159,887 | 212,143 | 1,737 | 4,424 | |
| 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 |
943,964 | 1,027,881 | 346,006 | 293,457 | |
| J. Receivables from income tax | 47,656 | 43,876 | 124 | 171 | |
| K. Deferred tax assets | 100,811 | 132,480 | 8,421 | 4,562 | |
| L. Liquid funds | 354,142 | 196,401 | 88,743 | 276,329 | |
| M. Assets in disposal groups available for sale | 63,661 | 0 | 0 | 0 | |
| Total segment assets | 5,538,335 | 5,516,844 | 3,162,317 | 3,570,882 | |
| Equity and liabilities | |||||
| B. Subordinated liabilities | 339,064 | 338,957 | 0 | 0 | |
| C. Technical provisions | 2,726,699 | 2,858,078 | 2,464,137 | 2,960,738 | |
| D. Technical provisions held on account and at risk of life insurance policyholders |
0 | 0 | 0 | 0 | |
| E. Financial liabilities | 238,514 | 263,810 | 26,911 | 31,984 | |
| F. Other provisions | 832,977 | 738,918 | 21,230 | 18,728 | |
| G. Payables and other liabilities | 624,587 | 1,019,585 | 71,575 | 105,761 | |
| H. Liabilities from income tax | 17,645 | 16,459 | 1,084 | 1,379 | |
| I. Deferred tax liabilities |
172,092 | 189,293 | 110,419 | 75,735 | |
| J. Liabilities in disposal groups available for sale | 11,191 | 0 | 0 | 0 | |
| Total segment liabilities | 4,962,769 | 5,425,100 | 2,695,356 | 3,194,325 | |
| Consolidation | Life | |||
|---|---|---|---|---|
| 31.12.2012 | 31.12.2011 | 31.12.2012 | 31.12.2011 | 31.12.2012 |
| 306,755 | 0 | 0 | 188,409 | 129,930 |
| 1,166,284 | ||||
| 697,854 | ||||
| 320,779 | ||||
| 17,866,236 | –573,934 | –518,719 | 12,619,977 | 13,426,134 |
| 5,066,828 | 0 | 0 | 4,396,016 | 5,066,828 |
| 605,847 | 0 | 0 | 467,579 | 444,223 |
| 408,818 | 0 | 0 | 405,513 | 408,818 |
| 936,179 | –911,800 | –746,984 | 578,457 | 393,192 |
| 54,561 | 0 | 0 | 7,110 | 6,781 |
| 133,504 | 0 | 0 | 69,123 | 24,273 |
| 960,065 | 0 | 0 | 210,364 | 517,180 |
| 63,661 | 0 | 0 | 0 | 0 |
| 30,037,224 | –1,485,733 | –1,265,702 | 20,965,665 | 22,602,274 |
| 145,000 | ||||
| 14,614,658 | ||||
| 4,983,029 | 0 | 0 | 4,318,331 | 4,983,029 |
| 34,965 | –498,177 | –469,637 | 276,095 | 239,177 |
| 915,637 | 0 | 0 | 30,464 | 61,429 |
| 1,434,438 | –939,919 | –741,514 | 1,332,489 | 1,479,791 |
| 28,557 | 0 | 0 | 1,319 | 9,828 |
| 370,905 | 0 | 0 | 26,711 | 88,394 |
| 11,191 | 0 | 0 | 0 | 0 |
| 28,019,642 | –1,481,841 | –1,259,789 | 20,334,490 | 21,621,306 |
| 1,690,763 1,414,406 529,602 450,000 19,790,921 2,017,581 30,037,224 |
0 0 0 –33,957 –9,788 |
0 0 0 –34,064 –14,573 Shareholders' equity and minority interests Total equity and liabilities |
989,399 711,340 322,378 270,000 14,079,082 |
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.
| Property and casualty | Health | ||||
|---|---|---|---|---|---|
| Figures in € thousand | 2012 | 2011 | 2012 | 2011 | |
| 1. a) Gross premium written | 2,557,799 | 2,433,192 | 909,209 | 880,107 | |
| 1. Premiums written (retained) | 2,426,003 | 2,292,256 | 906,142 | 874,668 | |
| 2. Change due to premiums earned (retained) | –23,418 | –34,809 | –2,964 | –815 | |
| 3. Premiums earned (retained) | 2,402,585 | 2,257,447 | 903,178 | 873,853 | |
| Income from fees and commissions | 9,333 | 15,471 | –157 | 35 | |
| 5. Net investment income | 77,347 | 38,949 | 96,427 | –8,138 | |
| 6. Other income | 23,103 | 28,219 | 8,120 | 5,781 | |
| 7. Insurance benefits | –1,644,472 | –1,529,336 | –756,582 | –738,060 | |
| 8. Operating expenses | –797,956 | –843,540 | –138,585 | –143,387 | |
| 9. Other expenses | –55,043 | –68,886 | –5,016 | –5,657 | |
| 10. Amortisation of goodwill | –17,569 | –17,633 | –87 | –87 | |
| 11. Operating profit | –2,672 | –119,310 | 107,297 | –15,660 | |
| 12. Financing costs | –17,632 | –17,675 | –368 | –980 | |
| 13. Profit on ordinary activities | –20,304 | –136,985 | 106,929 | –16,640 | |
| 14. Income taxes | –8,543 | 69,732 | –21,046 | 3,277 | |
| 15. Result from discontinued operations (after taxes) | 10,901 | –4,402 | –386 | 1,161 | |
| 16. Net profit/loss | –17,946 | –71,655 | 85,497 | –12,201 | |
| of which consolidated profit/loss | –23,485 | –71,782 | 61,142 | –16,970 | |
| of which minority interests | 5,540 | 127 | 24,356 | 4,769 |
| Property and casualty | Health | |||
|---|---|---|---|---|
| Figures in € thousand | 2012 | 2011 | 2012 | 2011 |
| Goodwill | ||||
| Change in impairment for current year | 15,000 | 15,000 | 0 | 0 |
| of which reallocation affecting income | 15,000 | 15,000 | 0 | 0 |
| Investments | ||||
| Change in impairment for current year | –12,030 | –34,249 | –2,339 | –93,660 |
| of which reallocation/reinstatement of original values | –12,030 | –34,249 | –2,339 | –93,660 |
| Group | Consolidation | Life | |||
|---|---|---|---|---|---|
| 2011 | 2012 | 2011 | 2012 | 2011 | 2012 |
| 4,900,239 | 4,864,151 | –28,693 | –13,755 | 1,615,633 | 1,410,898 |
| 4,703,331 | 4,650,647 | –4,337 | –9,498 | 1,540,745 | 1,327,999 |
| –38,369 | –26,738 | –3,776 | –250 | 1,031 | –105 |
| 4,664,962 | 4,623,909 | –8,114 | –9,748 | 1,541,775 | 1,327,894 |
| 29,271 | 35,731 | –5,643 | –399 | 19,408 | 26,955 |
| 201,818 | 791,546 | 1,927 | –595 | 169,081 | 618,367 |
| 76,774 | 46,562 | 10,376 | –484 | 32,397 | 15,823 |
| –3,657,901 | –3,758,545 | 970 | 6,514 | –1,391,476 | –1,364,004 |
| –1,442,054 | –1,355,006 | 2,369 | 2,619 | –457,496 | –421,084 |
| –139,037 | –122,954 | 1,813 | 1,360 | –66,307 | –64,255 |
| –24,160 | –24,937 | 0 | 0 | –6,439 | –7,281 |
| –290,327 | 236,306 | 3,700 | –734 | –159,057 | 132,414 |
| –31,975 | –30,955 | 0 | 0 | –13,320 | –12,955 |
| –322,302 | 205,351 | 3,700 | –734 | –172,377 | 119,459 |
| 77,720 | –45,423 | 0 | 0 | 4,711 | –15,835 |
| 733 | 9,873 | 4,742 | –105 | –769 | –537 |
| –243,849 | 169,801 | 8,442 | –839 | –168,435 | 103,088 |
| –245,614 | 130,225 | 8,442 | –839 | –165,305 | 93,408 |
| 1,765 | 39,575 | 0 | 0 | –3,130 | 9,680 |
| Group | Consolidation | Life | ||||
|---|---|---|---|---|---|---|
| 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | |
| 15,000 | 15,000 | 0 | 0 | 0 | 0 | |
| 15,000 | 15,000 | 0 | 0 | 0 | 0 | |
| –466,473 | –44,764 | 0 | 0 | –338,564 | –30,395 | |
| –466,473 | –44,764 | 0 | 0 | –338,564 | –30,395 | |
| Premiums earned (retained) | Net investment income | |||||
|---|---|---|---|---|---|---|
| Figures in € thousand | 2012 | 2011 | 2012 | 2011 | ||
| Western Europe (incl. Austria) | 3,943,729 | 4,024,782 | 741,160 | 169,701 | ||
| Austria | 2,867,840 | 3,039,157 | 655,234 | 116,791 | ||
| Other Europe | 1,827,680 | 1,722,128 | 150,084 | 92,664 | ||
| Western Europe | 1,075,888 | 985,625 | 85,927 | 52,910 | ||
| Italy | 359,817 | 449,905 | 77,380 | 51,763 | ||
| Germany | 0 | 0 | 2,527 | 432 | ||
| Switzerland | 713,066 | 532,422 | 3,190 | 88 | ||
| Liechtenstein | 3,006 | 3,299 | 2,841 | 2,640 | ||
| The Netherlands | 0 | 0 | –12 | –2,013 | ||
| Central and Eastern Europe | 751,792 | 736,503 | 64,158 | 39,754 | ||
| Poland | 208,807 | 237,231 | 15,983 | 13,990 | ||
| Hungary | 60,658 | 66,054 | 12,894 | 6,643 | ||
| Czech Republic | 123,989 | 121,692 | 4,951 | 1,409 | ||
| Bulgaria | 35,067 | 32,526 | 1,450 | 1,457 | ||
| Slovakia | 54,381 | 52,229 | 3,828 | 3,659 | ||
| Ukraine | 64,012 | 41,914 | 2,132 | 1,432 | ||
| Romania | 52,378 | 57,004 | 6,877 | –121 | ||
| Serbia | 30,403 | 29,277 | 5,206 | 2,117 | ||
| Croatia | 19,623 | 20,097 | 5,372 | 4,701 | ||
| Bosnia-Herzegovina | 18,404 | 17,012 | 1,660 | 1,301 | ||
| Albania | 17,420 | 15,686 | 837 | 628 | ||
| Russia | 42,540 | 26,498 | 1,807 | 1,534 | ||
| Kosovo | 8,690 | 7,077 | 489 | 348 | ||
| Macedonia | 8,101 | 6,289 | 266 | 259 | ||
| Montenegro | 7,319 | 5,916 | 444 | 422 | ||
| other | 0 | 0 | –36 | –23 | ||
| Total before consolidation | 4,695,520 | 4,761,285 | 805,318 | 209,455 | ||
| Consolidation (based on geographic segments) | –71,611 | –96,323 | –13,772 | –7,637 | ||
| In the consolidated financial statements | 4,623,909 | 4,664,962 | 791,546 | 201,818 | ||
The investment income and profit on ordinary activities by region are presented adjusted for the capital consolidation effects contained in the investment income. The consolidation item includes the expenditure and income consolidation from operational business relations between Group companies on the basis of geographic segments.
| Profit/loss on ordinary activities | Operating expenses | Insurance benefits (net) | ||||
|---|---|---|---|---|---|---|
| 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | |
| –262,960 | 201,915 | –1,184,291 | –1,118,125 | –3,229,716 | –3,347,669 | |
| –266,003 | 152,622 | –930,394 | –798,197 | –2,438,494 | –2,557,466 | |
| –25,181 | 62,509 | –661,121 | –767,414 | –1,273,465 | –1,236,452 | |
| 3,043 | 49,293 | –253,897 | –319,928 | –791,223 | –790,203 | |
| –4,546 | 22,329 | –82,664 | –93,132 | –429,544 | –316,449 | |
| 1,469 | 1,869 | 1,655 | –658 | 0 | 0 | |
| 8,396 | 24,319 | –168,460 | –220,879 | –356,078 | –471,959 | |
| –263 | 789 | –4,428 | –5,259 | –5,600 | –1,795 | |
| –2,013 | –12 | 0 | 0 | 0 | 0 | |
| –28,224 | 13,215 | –407,224 | –447,486 | –482,243 | –446,249 | |
| 1,670 | 5,101 | –85,278 | –91,104 | –186,381 | –149,009 | |
| –6,164 | –2,699 | –63,273 | –65,901 | –26,767 | –19,366 | |
| 5,087 | 4,995 | –66,195 | –69,660 | –73,308 | –77,164 | |
| –3,313 | –2,866 | –21,024 | –22,972 | –22,221 | –22,862 | |
| 7,692 | 9,458 | –34,480 | –35,977 | –28,918 | –28,371 | |
| –1,426 | –1,273 | –28,075 | –39,751 | –19,839 | –28,126 | |
| –27,353 | –5,901 | –35,627 | –40,384 | –48,454 | –35,154 | |
| –2,945 | 1,288 | –16,995 | –16,858 | –18,531 | –18,096 | |
| –377 | 828 | –13,033 | –11,835 | –15,668 | –15,321 | |
| 309 | 679 | –7,806 | –7,747 | –10,617 | –12,212 | |
| 918 | 1,753 | –7,829 | –9,152 | –8,119 | –7,671 | |
| –1,897 | 1,119 | –15,654 | –20,668 | –14,253 | –23,298 | |
| 136 | 1,110 | –3,911 | –4,728 | –3,436 | –3,370 | |
| 153 | –73 | –3,858 | –5,725 | –3,049 | –2,875 | |
| –685 | –263 | –4,180 | –5,022 | –2,681 | –3,354 | |
| –29 | –39 | –6 | –2 | 0 | 0 | |
| –291,184 | 215,131 | –1,591,514 | –1,565,611 | –3,711,959 | –3,793,918 | |
| –31,118 | –9,780 | 149,461 | 210,605 | 54,058 | 35,373 | |
| –322,302 | 205,351 | –1,442,054 | –1,355,006 | –3,657,901 | –3,758,545 |
As a publicly listed company, UNIQA is obligated to prepare its Consolidated Financial Statements according to internationally accepted accounting principles. In accordance with Section 245a of the Austrian Commercial Code, the company has prepared the Consolidated Financial Statements exclusively in agreement with the International Financial Reporting Standards (IFRS) as applied within the European Union. These Consolidated Financial Statements and the Group Management Report therefore do not follow the accounting principles according to the Insurance Supervisory Act, rather the International Financial Reporting Standards (IFRS) and the International Accounting Standards (IAS) in the versions applicable to this reporting period. No early application of modified standards was performed.
Since 2005, UNIQA Versicherungen 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 present Consolidated Financial Statements were therefore prepared, as in previous years, in compliance with IFRS 4 and in accordance with the regulations of the US Generally Accepted Accounting Principles (US-GAAP). 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.
The financial instruments were balanced in accordance with IAS 39, including the information required by IFRS 7, as most recently amended in November 2009. Aside from recording the securities under "Held to maturity", "Available for sale", "At fair value through profit or loss" and "Derivative financial instruments (held for trading)", additional disclosures for securities available for sale are reported in the following investment categories, which were utilised for the internal risk reports:
Modifications to IFRS 7 (revised 10/2010), Financial Instruments: Disclosures, Improved Disclosures on Financial Instruments, includes expanded disclosure requirements for the transfer of financial assets. This should create additional transparency with regard to the influence of such transactions on risk exposure and the financial situation of companies. The new regulations must be applied to all financial years that begin on or after 1 July 2011; they were integrated into European law in November 2011. This will not have a significant impact on UNIQA.
Due to modifications of IAS 1 (revised 06/2011), Presentation of Financial Statements, Presentation of Items in Other Comprehensive Income, items in other comprehensive income that are reclassified at a later time into the income statement, as well as those items for which this is not the case, must be presented separately. This is designed to improve the presentation of these items and to further align IFRS and US GAAP standards. Modifications must be applied for financial years beginning on or after 1 July 2012.
Modifications to IAS 19 are intended to improve the understanding of users of financial statements with regard to the way in which defined benefit plans affect a company's net assets, financial position, results of operations and cash flows. The objective of the standard is to prescribe accounting and disclosure requirements for employee benefits. Following endorsement in EU law, the modification to IAS 19 is applicable to users of EU IFRSs in financial years beginning on or after 1 January 2013.
IFRS 13, Fair Value Measurement applies to IFRSs that require or permit fair value measurement or disclosures. The standard provides a single IFRS framework for measuring fair value and requires disclosures about fair value measurement. The standard defines fair value on the basis of an "exit price" notion and uses a fair value hierarchy, which results in a market-based, rather than entity-specific, measurement. IFRS 13 is a new IFRS standard published in May 2011. It applies to reporting periods beginning on or after 1 January 2013.
Modifications made to IFRS 1 as of March 2012 with regard to government loans with a below-market rate of interest were amended and are expected to apply to reporting periods beginning on or after 1 January 2013. Changes for countries with high inflation enter into force on 1 January 2013.
The modification to IFRS 7 (revised December 2011) prescribes additional quantitative information in order to enable users to better compare and coordinate IFRS disclosures and disclosures according to US GAAP. The IASB also amended IAS 32 in order to specify additional guidelines with the aim of reducing incoherent application of standards in practice. Modifications relating to offsetting financial assets and financial liabilities released in December 2011 come into force on 1 January 2013.
Modifications to IAS 12 (revised 12/2010), Income Tax, Deferred Tax: Recovery of Underlying Assets, address the dependency of deferred tax valuation on whether the book value of an asset is realised through use or through sale. This distinction is frequently vague in practice. The introduction of a rebuttable presumption clarifies that the realisation of book value is normally attained via sale. The binding date of application for the original standard was postponed to financial years beginning on or after 1 January 2013 for EU companies. This modification does not affect UNIQA.
In addition to the annual financial statement of UNIQA Versicherungen AG, the Consolidated Financial Statements include the financial statements of all subsidiaries at home and abroad. 33 affiliated companies did not form part of the scope of consolidation. They were of only minor significance, even if taken together, for the presentation of a true and fair view of the Group's assets, financial position and income. Therefore, the scope of consolidation contains, in addition to UNIQA Versicherungen AG, 56 domestic and 72 foreign subsidiaries in which UNIQA Versicherungen AG has the majority voting rights.
The scope of consolidation was extended in the reporting period by the following companies:
| Figures in € thousand | Date of initial inclusion |
Net profit/ loss |
Acquired shares percentage |
Acquisition costs |
Goodwill |
|---|---|---|---|---|---|
| "Graben 27– 28" Besitzgesellschaft m.b.H. | 30.09.2012 | 200 | 100.0 | 1,741 | 0 |
| Hotel Burgenland Betriebs GmbH | 31.12.2012 | 0 | 100.0 | 35 | 0 |
| R-FMZ Immobilienholding GmbH | 31.12.2012 | 0 | 100.0 | 36,225 | 0 |
| Neue Marktgasse Einkaufspassage Stockerau GmbH | 31.12.2012 | 0 | 100.0 | 8,609 | 0 |
| DEVELOP Baudurchführungs- und | |||||
| Stadtentwicklungs-Gesellschaft m.b.H. | 31.12.2012 | 0 | 100.0 | 24,102 | 0 |
| Raiffeisen-Fachmarktzentrum Mercurius GmbH | 31.12.2012 | 0 | 100.0 | 11,933 | 0 |
| Raiffeisen-Fachmarktzentrum ZWEI GmbH | 31.12.2012 | 0 | 100.0 | 24,817 | 0 |
| Raiffeisen-Fachmarktzentrum Ivesis GmbH | 31.12.2012 | 0 | 100.0 | 10,471 | 0 |
| Raiffeisen-Fachmarktzentrum VIER GmbH | 31.12.2012 | 0 | 100.0 | 30,991 | 0 |
| Raiffeisen-Fachmarktzentrum SIEBEN GmbH | 31.12.2012 | 0 | 100.0 | 7,585 | 0 |
| R-FMZ "MERCATUS" Holding GmbH | 31.12.2012 | 0 | 100.0 | 48,246 | 0 |
The effects of these additions on the main asset and debt positions can be seen under number 5 of the Notes to the Consolidated Financial Statements.
In June 2012, UNIQA entered into an agreement with the European Bank for Reconstruction and Development (EBRD) on the acquisition of the minority interests held by EBRD in the subsidiaries in Croatia (20 per cent), Poland (30 per cent) and Hungary (15 per cent). The acquisition of these minority interests is already legally effective. The carrying amount of the net assets of these companies was €112,512 thousand as at the time of acquisition. The Group recognised a reduction in non-controlling interests of €25,391 thousand and in retained earnings of €50,023 thousand. The effects of the acquisition are presented below:
| UNIQA osiguranje d.d. |
UNIQA Towarzystwo Ubezpieczen S.A. |
UNIQA Towarzystwo Ubezpieczen na Zycie S.A. |
UNIQA Biztosító Zrt. |
Total | |
|---|---|---|---|---|---|
| Figures in € thousand | Croatia | Poland | Poland | Hungary | |
| Share in net assets as of 1.1.2012 | 7,029 | 27,511 | 8,314 | 28,141 | 70,995 |
| Effect of increase of participation quota | 2,207 | 11,863 | 4,062 | 7,259 | 25,391 |
| Capital increase | 2,332 | 0 | 0 | 0 | 2,332 |
| Share in comprehensive income | 3,607 | 23,863 | 1,580 | – 3,225 | 25,825 |
| Share in net assets as of 31.12.2012 | 15,175 | 63,238 | 13,957 | 32,175 | 124,544 |
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, and the real estate companies MV Augustaanlage Verwaltungs-GmbH and MV Augustaanlage GmbH & Co. KG. The result from discontinued operations is composed as follows:
| Property and casualty | Health | Life | Consolidation | Group | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Figures in € thousand | 1– 12/2012 1– 12/2011 1– 12/2012 1– 12/2011 1– 12/2012 1– 12/2011 1– 12/2012 1– 12/2011 1– 12/2012 1– 12/2011 | |||||||||
| Gross premiums written | 197,613 | 304,065 | 72,739 | 124,785 | 9,933 | 19,737 | 0 | 0 | 280,285 | 448,588 |
| Premiums earned (retained) | 152,640 | 296,650 | 69,788 | 124,043 | 7,299 | 14,668 | 115 | 5,155 | 229,842 | 440,516 |
| Income from fees and commissions | 422 | 2,092 | 30 | 30 | 1,273 | 2,111 | – 41 | – 1,683 | 1,684 | 2,549 |
| Net investment income | 7,482 | 10,894 | 12,098 | 13,503 | 1,231 | 359 | 1 | 1 | 20,811 | 24,757 |
| Other income | 18,363 | 35,821 | 402 | 856 | 194 | 550 | – 43,203 | – 22,323 | – 24,244 | 14,904 |
| Insurance benefits (net) | – 105,777 | – 205,563 | – 71,306 | – 115,476 | – 5,916 | – 10,657 | 384 | – 2,462 | – 182,616 | – 334,157 |
| Operating expenses | – 57,896 | – 114,230 | – 9,218 | – 19,167 | – 2,776 | – 4,672 | 0 | 0 | – 69,890 | – 138,069 |
| Other expenses | – 16,690 | – 34,227 | – 2,249 | – 2,219 | – 1,680 | – 3,374 | 41,417 | 26,054 | 20,798 | – 13,766 |
| Amortisation of goodwill | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating profit/loss | – 1,456 | – 8,563 | – 455 | 1,571 | – 376 | – 1,016 | – 1,328 | 4,742 | – 3,615 | – 3,266 |
| Financing costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit/loss on ordinary activities | –1,456 | –8,563 | –455 | 1,571 | –376 | –1,016 | –1,328 | 4,742 | –3,615 | –3,266 |
| Income taxes | – 518 | 4,161 | 69 | – 409 | – 161 | 247 | 0 | 0 | – 610 | 3,998 |
| Current result from discontinued | ||||||||||
| operations (after taxes) | –1,974 | –4,402 | –386 | 1,161 | –537 | –769 | –1,328 | 4,742 | –4,225 | 733 |
| Disposal proceeds from | ||||||||||
| discontinued operations | 14,098 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14,098 | 0 |
| Result from discontinued operations | ||||||||||
| (after taxes) | 12,124 | –4,402 | –386 | 1,161 | –537 | –769 | –1,328 | 4,742 | 9,873 | 733 |
| of which consolidated profit/loss | 12,603 | – 3,495 | – 354 | 1,396 | – 492 | – 714 | – 1,328 | 4,742 | 10,429 | 1,930 |
| of which minority interests | – 478 | – 908 | – 32 | – 234 | – 45 | – 55 | 0 | 0 | – 555 | – 1,197 |
In the 3rd quarter of 2012, the UNIQA Group resolved to sell the companies of Austria Hotels. Until this transaction is completed, the assets and liabilities of these companies will be presented as separate items in the balance sheet. Details on this can be found in number 8 of the Notes to the Consolidated Financial Statements.
Nine associated companies were domestic companies consolidated at equity; 13 companies were of minor significance and were listed at current market value.
In applying IAS 39 and in terms of the present interpretation of this statement by the IASB (SIC 12), fully controlled investment funds will be included in the consolidation insofar as their fund volumes were not of minor importance when viewed singularly and in total.
There have been no significant changes to the scope of consolidation.
Capital consolidation follows the acquisition method. The costs of acquiring shares in the subsidiaries are written as the proportional equity of the subsidiary that was first re-valued. The conditions at the time of acquiring the shares in the consolidated subsidiary are taken into consideration for the initial consolidation. To the extent other (non-Group) shareholders hold shares in the subsidiary's equity at the reporting date, these are dealt with under minority interests.
If the shareholding was acquired before 1 January 1995, the differences are set off against profits carried forward in line with the applicable transitional provisions.
Negative differences from mergers consummated after 31 March 2004 must be credited with an effect on income immediately after re-appraisal.
In compliance with IFRS 3, the goodwill is not subject to any scheduled depreciation. The value of existing goodwill resultant from the acquisition of holdings is appraised in an annual impairment test. A fall in value is written off where necessary.
Shares in associated companies are, as a general rule, valued according to the equity method using the equity held by the Group. Differences are determined according to the principles of capital consolidation and the amounts are recorded under shares in associated companies. The updating of the development of the associated companies is based on the most recent financial statements available.
In establishing the value of shares in associated companies, an IFRS report is generally required. Where no IFRS reports are presented, the adjustment of the entries for these companies to the uniform group valuation benchmarks must be dispensed with due to a lack of available documentation; however, this does not have any significant impact on the present Group Consolidated Financial Statements.
For debt consolidation, the receivables from Group companies are set off against the payables to Group companies. As a rule, any differences have an effect on income. Group-internal results from deliveries and services are eliminated if they are of minor significance for giving a true and fair view of the Group's assets, financial position and income. Proceeds and other income from deliveries and services within the Group are set off against the corresponding expenditure.
The International Financial Reporting Standards (IFRS) allow a shortened version of the balance sheet and income statement. Summarising many individual items into units enhances the informative quality of the financial statements. Explanatory notes to these items are contained in the Group Notes. Because of formatting to thousand €, there may be rounding differences.
The primary segment reports depict the main business segments of property and casualty insurance, life insurance and health insurance. The consolidation principles are applied here to transactions within a segment. In addition, the main items of the income statement are also broken down by regional perspectives.
The reporting currency of UNIQA Versicherungen AG is the euro. All annual financial statements of foreign subsidiaries that are not reported in euro are converted at the rate on the balance sheet closing date according to the following guidelines:
Resulting exchange rate differences are set off against the shareholders' equity without affecting income.
The most important exchange rates are summarised in the following table:
| € rates on balance sheet closing date | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Swiss franc CHF | 1.2072 | 1.2156 |
| Czech koruna CZK | 25.1510 | 25.7870 |
| Hungarian forint HUF | 292.3000 | 314.5800 |
| Croatian kuna HRK | 7.5575 | 7.5370 |
| Polish złoty PLN | 4.0740 | 4.4580 |
| Bosnia and Herzegovina convertible mark BAM | 1.9558 | 1.9558 |
| Romanian leu (new) RON | 4.4445 | 4.3233 |
| Bulgarian lev (new) BGN | 1.9558 | 1.9558 |
| Ukrainian hrywnja UAH | 10.6208 | 10.3708 |
| Serbian dinar RSD | 112.3722 | 107.0795 |
| Russian ruble RUB | 40.3295 | 41.7650 |
| Albanian lek ALL | 140.1400 | 138.5500 |
| Macedonian denar MKD | 62.2353 | 61.7613 |
For creation of the Group Consolidated Financial Statements according to IFRS, it is necessary to make assumptions for the future within various items. These estimates can have a considerable influence on the valuation of assets and debts on the balance sheet closing date as well as the amount of expenses and income in the financial year. 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 annual financial statements of the companies in Austria and abroad included in the Consolidated Financial Statements were predominantly prepared up to the reporting date of UNIQA Versicherungen AG, i.e. 31 December. For recording in the Consolidated Financial Statements, the annual financial statements of UNIQA Versicherungen AG and its included subsidiaries are unified to conform to the accounting and valuation principles of IFRS/IAS and, as far as actuarial provisions, acquisition costs and actuarial expenses and income are concerned, according to the provisions of US-GAAP.
Securities transactions are recorded using the settlement date. As a rule, the fair values are derived from an active market.
These include goodwill, deferred acquisition costs, the current value of life, property and casualty insurance contracts, and other items.
Goodwill is the difference between the purchase price for the stake in a subsidiary and the Group's share in the equity after the disclosure of hidden reserves at the time of acquisition.
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.
With regard to life insurance business acquired, the updating 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 that are held as long-term investments are recognised according to IAS 40 at acquisition or construction costs, reduced by the amounts of scheduled amortizations and depreciation. Self-used land and buildings are shown at book value (IAS 16). The scheduled depreciation term generally corresponds to the useful life, up to a maximum of 80 years. Real estate is depreciated on a straight-line basis over time.
The list of fair values can be found in the Notes under number 1 and 3.
To the extent that the annual financial statements of affiliated and associated companies are not consolidated for being of minor significance and/or included at equity, these companies are valued as available for sale in accordance with IAS 39.
With the exception of securities held to maturity, 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.
These are recognised at amortised cost in the balance sheet. This means that the difference between the acquisition costs and the repayment amount changes the book value with an effect on income in proportion to time and/or equity. The items included under other loans are recognised at their nominal amount less any redemptions made in the interim.
These are recognised in the financial statements at their fair value on the reporting date. Differences between the fair value and historical acquisition costs are dealt with under equity with a neutral effect on income, after deduction of the provisions for latent profit sharing in life insurance and deferred taxes. Depreciation that affects income (impairment) is undertaken only where we anticipate a lasting fall in value. This uses the fluctuations in fair value over the last nine months as well as the absolute difference between acquisition costs and the fair value on the reporting date as the basis for assessing a necessary impairment. A sustained impairment is assumed for variable-yield securities if the highest quoted price within the last nine months lies below the acquisition costs or the difference of acquisition costs less fair value is greater than 20 per cent. These same selection criteria are also applied for fixed-interest securities in order to perform a precise credit-related evaluation of a sustained impairment per security for the items in question. In addition, foreign exchange differentials resulting from fixed-interest securities are recognised with an effect on income. Foreign exchange differentials resulting from variable-yield securities are recognised as equity with no effect on income to the extent that these are not securities which are written off as the result of an impairment test. The fair value of other investments is based in part on external and internal company ratings.
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.
The current market value of assets traded on the active markets is determined with respect to the listed market prices (includes government bonds, corporate bonds, listed shares).
The current market value of other financial assets (excluding derivative instruments) is determined in accordance with generally accepted valuation models, based on discounted cash flow analyses and using prices of observable current market transactions and trader listings for similar instruments.
The current market value of derivative instruments is calculated using listed prices. If such prices are not available, discounted cash flow analyses are performed with application of the corresponding interest yield curves for the term of the instruments in the case of derivatives without optional components as well as option price models in the case of derivatives with optional components. Currency futures are valued based on listed forward rates and interest yield curves that are derived from listed market interest rates in consideration of the contact maturity dates. Interest swaps are valued with the cash value of the estimated future payment flows. The discounting took place using the pertinent interest yield curves, which were derived from listed interest rates.
These are recognised at fair value.
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.
These are recognised on the assets page, taking the reinsurance contracts into consideration.
These are recognised at their nominal value, taking into account redemptions made and reasonable value adjustments.
Liquid funds are valued at their nominal amounts.
The tangible assets and inventories included on the balance sheet under other assets are recognised at acquisition and production costs, net of depreciation. Tangible assets are depreciated on a straight-line basis over their useful lifetime (up to a maximum of 10 years).
The subscribed capital corresponds to the calculated nominal value per share that was achieved upon issuing of the shares.
The capital reserves represent the amount earned over and above the calculated nominal value upon issue of the shares.
The revaluation reserve contains unrealised profits and losses from market valuations of securities available for sale.
The revenue reserves include the withheld profit of the UNIQA Group.
Thus, the amount of the actuarial gains and losses from the provisions for pensions and similar obligations will be reported in the shareholders' equity, after deducting deferred taxes and deferred profit participation and without affecting income under the item actuarial gains and losses from defined retirement benefits.
The portfolio of UNIQA shares is deducted from the equity (revenue reserves).
The minority interests in shareholders' equity represent the proportional minority shares in equity.
Unearned premiums are in principle calculated for each individual policy and exactly to the day. If they are attributable to life insurance, they are included in the 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 the property 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. 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, on the one hand, the amounts for profit-related and profit-unrelated profit sharing to which the policyholders are entitled on the basis of statutory or contractual regulations, and on the other hand, the amount resulting from the valuation of assets and obligations of life insurers deviating from valuation under commercial law. The amount of the provision for latent profit sharing 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.
For the performance-orientated old age provision systems of the UNIQA Group, pension provisions are calculated in accordance with IAS 19 using the projected unit credit method. Future obligations are spread over the whole employment duration of the employees. The calculation is based on current mortality, disability and fluctuation probabilities, expected increases in salaries, pension entitlements and pension payments as well as a realistic technical interest rate. The technical interest rate, which is determined in conformity with the market and on the basis of the reporting date, is in line with the market yield of long-term, high-quality industrial or government bonds.
From now on, the amount of the actuarial gains and losses will therefore be reported as shareholders' equity in accordance with IAS 19.93A ff, after deducting deferred taxes and deferred profit participation and without affecting income.
The amount of other provisions is determined by the extent to which the provisions will probably be made use of. Payables and other liabilities are shown at the amount to be repaid.
Deferred tax assets and liabilities are to be created according to IAS 12 for temporary differences arising from the comparison of a stated asset or an obligation using the respective taxable value. This results in a probable tax burden affecting cash flow in the future. These are to be accounted for independent of the date of their release. Moreover, according to IAS, deferred taxes for accumulated losses brought forward and not yet used are to be capitalised to the extent that they can be used in the future with adequate probability.
In principle, the carrying amounts of assets on the balance sheet are checked at least once a year with regard to possible impairment. Securities with an expected lasting and/or major decrease in value are depreciated with an effect on income. The entire real estate inventory is subject to recurrent valuation through external reports prepared by legally sworn experts. If there is a foreseeable durable impairment of assets, their carrying amount is reduced.
Of the premiums written in the area of unit- and index-linked life insurance, only those parts calculated to cover the risk and costs are allocated as premiums.
(Direct business and partly accepted reinsurance business)
In the case of sustained impairment, the entire goodwill is written off to its market value. The valuation is performed at least once a year by applying a valuation model (impairment test). No ordinary amortisation of goodwill is performed.
According to IFRS, self-developed intangible assets have to be capitalised, whereas they cannot be capitalised under the Austrian Commercial Code.
Land and buildings, including buildings on third-party land, are valued according to IAS 16, and by exercising the respective choice, also according to IAS 40 at book value minus scheduled amortisation. These are based on the actual duration of use; in accordance with Austrian Commercial Code, they are mostly also influenced by tax regulations.
Affiliated and associated companies that are not consolidated fully or at equity due to their minor significance are recognised at fair value.
As a general rule, participating interests are valued at equity insofar as the company has the opportunity to exercise considerable influence. This is assumed, as a matter of principle, for shares between 20 per cent and 50 per cent. The actual exercising of considerable influence has no bearing on these figures.
According to IAS 39, a different classification system is applicable to financial assets. It classifies other securities into the following categories: held to maturity, available for sale, fair value through profit or loss (FVTPL) and trading portfolio (derivative financial instruments). The main valuation difference that applies to the other securities available for sale, which account for the majority of financial assets, as well as the other securities recorded with effect on income is that these are stated at fair value on the balance sheet date. According to the Austrian Commercial Code, the acquisition costs constitute the maximum valuation limit.
With regard to the other securities available for sale, the difference between book value and fair value is treated within the shareholders' equity without affecting income, whereas in the case of the other securities at fair value through profit or loss, the difference fully affects income. In contrast, when applying the strict lower-of-cost-or-market principle in the Austrian Commercial Code, depreciation always affects income, even in the case of a temporary reduction in value and appreciations in line with the requirement to reinstate original values. In the case of the mitigated lower-of-cost-or-market principle, the write-off is not obligatory if the depreciation is only temporary. Expected permanent impairments, posted as depreciation, affect income according to both the IFRS and the Austrian Commercial Code.
The shares of reinsurers in actuarial provisions are shown on the assets page of the balance sheet in accordance with IFRS 4.
Commission as well as other variable costs which are directly related to the acquisition or extension of existing policies are deferred and distributed over the insurance contract terms and/or the premium payment period. The deferred acquisition costs also replace the administrative expense deductions allowed under the Insurance Supervisory Act for premiums brought forward in property and casualty insurance.
For the calculation of the actuarial provisions in life and health insurance, regulations deviating from Austrian law apply, which affect valuation variances as well as the allocation between actuarial provisions and provisions for premium refunds. This especially refers to the nonapplication of the zillmerisation of acquisition costs as well as the integration of the re-valued unearned premiums and real final bonus in the life insurance.
Health insurance is mainly affected by the deviating interest rate as well as the application of the most recent parameters, including safety margins.
Because of the difference in valuation of the assets and liabilities in the area of life insurance, a provision has to be made for deferred profit participation which complies with the national legal or contractually regulated profit sharing and is assessed in favour of the policyholder. The change of the provision for deferred premium refunds compensates to a large extent for the effects of revaluation on the income statement and thus on the results for the year.
In accordance with US-GAAP, provisions for outstanding claims in the property insurance line are basically no longer established using the principle of caution and on a single-loss basis, but rather using mathematical procedures based on probability of future compliance amounts.
The establishment of a provision for claims equalisation and catastrophes is not permitted under IFRS or US-GAAP regulations, because it does not represent any current obligations to third parties on the balance sheet date. Accordingly, additions or reversals do not influence the profit for the year.
The accounting principles used to calculate the pension provision under IFRS are different from those of the Austrian Commercial Code. These are listed in detail in IAS 19. Overall, the individual differences result in greater detail than under the Austrian Commercial Code. This is most notably the result of the stronger weighting of future salary increases and the use of the project-unit-credit method, anticipating future demographic and economic developments.
Deferred tax assets and liabilities are to be created according to IAS 12 for temporary differences arising from the comparison of a stated asset or an obligation using the respective taxable value. This results in an anticipated future tax burden or relief on taxes on income (temporary differences), which are to be reported regardless of the day of the revaluation. According to Austrian business law, deferred taxation is only permissible as a result of a temporary difference between the commercial balance sheet profit and the income calculated according to the tax regulations.
Moreover, according to IAS, deferred taxes for accumulated losses brought forward and not yet used are to be capitalised to the extent that they can be used in the future with adequate probability.
The UNIQA Group defines all risks that endanger the financial strength and thereby the needs of its customers, as well as the long-term growth of shareholder value, as major risks.
Therefore, the management of the UNIQA Group places particular focus on regular monitoring of risk-bearing capacity in order to ensure that it can react quickly, adequately and with foresight to changes in the business environment.
The risk-bearing capacity concept therefore always takes into account the following requirements:
The Group's management has declared its primary objective to be a balance between turnover, profit and risk. The required organisational measures were undertaken in the reorientation of the UNIQA Group.
UNIQA was the first insurer in Austria to define risk management as an independent department in the Management Board at the holding Group level. Numerous projects have been drawn up in the department of the Chief Risk Officer (CRO) aimed at establishing a new, modern and value-oriented risk culture in the UNIQA Group.
Risk management is an important part of the UNIQA Group's core business and is therefore a significant component of its business process. 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 by minimising the likelihood of non-attainment.
The UNIQA Group's Risk Management Guidelines form the basis for a uniform standard at various company levels. The guidelines are approved by the 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 were therefore implemented in 2012, which will be continued in 2013 and extended to stakeholders.
The UNIQA governance model approved in September 2012 and the repositioning of the compliance organisation are outlined in section 8. Risk management aims for 2013.
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 such business processes.
The risk management function and the supervisory function, 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.
The UNIQA Group Management Board is responsible for establishing business policy targets.
The position of Chief Risk Officer (CRO) has been introduced at holding Group Management Board level. 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 (see Holding committees in the committee structure, page 24), 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 and 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 risk management process in the UNIQA Group (UNIQA ORSA process) delivers periodic information about the risk situation across the UNIQA Group and enables the top management to set governing measures to attain and/or retain long-term strategic aims.
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. 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 procedures are developed 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.
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.
Measures to be implemented as a priority in order to minimise this risk are the reorientation of the life strategy and stringent implementation of an ALM approach.
A programme was developed in 2011 and 2012 as part of a project aimed at ensuring "valueoriented management of the UNIQA Group" which set out a strategy for how the life insurance business model could be safeguarded on a sustainable basis in the future. Based on analyses focusing on traditional life insurance in Austria – due to the high proportion this represents in market risk – a range of work packages were adopted aimed at improving the risk and earning situation:
The largest systemic risk in the first six months of 2012 was the European sovereign debt crisis potentially turning into a currency crisis (crisis in the European Monetary Union). As a result of the haircut and elections in Greece in June 2012, there was increasingly serious discussion of a euro zone country leaving the European Monetary Union (EMU). Due to economic contagion effects, the possibility of a chain reaction of further peripheral euro zone countries leaving the currency area could no longer have been ruled out in this extreme scenario. In the worst case scenario, this could have resulted in huge devaluation affecting a core euro in some cases (with Austria as a member of a core union) and a series of defaults in countries leaving the union.
Provision was already made in the UNIQA Group for the risk of potential defaults by reducing corresponding risk portfolios in the first quarter of 2012. Austria would be a member of the core euro zone as a traditional hard-currency country. Converting balance sheets into new currencies (e.g. Italy) on both the assets and liabilities side would absorb the effect on the insurance group to a certain extent in the relevant countries.
Governments made relatively large efforts over the course of 2012 to stabilise the euro zone in the long term and restore economic convergence among the euro zone countries. The European Fiscal Compact was signed in March 2012, which aims to secure the countries' debt sustainability on a long-term basis. The European Stability Mechanism (ESM) came into force in the second half of the year. The recapitalisation of the Spanish banking sector with an approved credit line of €100 billion in July set the precedent for a direct bank rescue package from the ESM. EU finance ministers agreed in December to establish a standardised supervision mechanism for European banks. The decision made by the European Central Bank in the middle of the year to support euro zone countries where necessary as a "lender of last resort" by means of an unlimited bond-buying programme (OMT) brought considerable relief and extra time to implement further structural reforms in the member states.
Despite intense effort on the part of governments and the central banks, overcoming the debt crisis still harbours significant risks. Events such as the outcome of parliamentary elections in Italy and Germany constitute very uncertain factors with regard to the further development of the euro zone and peripheral nations.
The introduction of Solvency II has been delayed further. The date scheduled for its entry into force was postponed to 1 January 2014 in September 2012 by means of a quick-fix directive. However, there is already speculation that this deadline will not be retained either. A long-term guarantee assessment must be concluded in order for Solvency II to be implemented. This assessment must be performed in order for the Omnibus II Directive to be adopted. This study will determine the impact of assumptions used in the valuation of long-term guarantees on the solvency of insurance companies – in particular, what impact adjusting the interest rate curve will have, which is used to discount technical provisions.
EIOPA (European Insurance and Occupational Pensions Authorities) is currently examining the introduction of "phasing-in", where parts of Solvency II would come into force ahead of schedule. The following are currently being discussed:
Despite the delays, the UNIQA Group is continuing with all projects it has initiated with the same level of intensity, as the management believes that the processes and tools implemented and adapted Group control processes (ORSA) will make a significant contribution to implementing the UNIQA-2.0 strategy.
The UNIQA Group is sufficiently capitalised.
The solvency ratio based on supervisory provisions was 214.9 per cent as at 31 December 2012. This figure is considerably higher than the minimum solvency ratio of 135 per cent set out in the internal capital policy.
The primary objective of the UNIQA Group is to remain sufficiently capitalised at all times. In order to ensure this, the risk strategy sets out the extent to which risks will be entered into on behalf of customers and shareholders. The risk appetite derived from this defines tolerance limits for a range of risk criteria and classes (e.g. for market and credit risk).
These tolerances are based on the capital and liquidity base and UNIQA's profit target within pre-defined volatility thresholds.
In order to ensure a risk strategy is implemented successfully, the relevant targets become part of the annual planning cycle and are therefore embedded in the business strategy.
Risk capital requirements and available equity are currently calculated according to Solvency I regulations in the UNIQA Group, which will be replaced following the entry into force of Solvency II provisions. As the method of calculating risk capital requirements and available equity is set to change, parallel calculations have been performed in the UNIQA Group since 2008 in order to ensure it is well prepared for this changeover.
To this end, it is necessary to implement the required processes across the Group, to have data available with the required level of granularity, and to identify risk drivers at an early stage and introduce measures where necessary.
Both regulatory capital requirements and the capital requirements associated with ratings are of central importance to the UNIQA Group.
In addition to the regulatory capital models for Solvency I and Solvency II, the Standard & Poor's capital model is therefore regularly applied and requirements are calculated oriented towards a target rating.
This information is incorporated in the capital planning process.
The UNIQA Group currently has a BBB+ rating according to Standard & Poor's.
A standard methodical approach was 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 duration matching between assets and liabilities – the "duration gap". The course has already been successfully set in the past year for a substantial reduction in the duration gap by establishing an ALM process and implementing an ALM-based asset allocation.
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 UNIQA Group's share risk mainly comprises alternative investment classes such as hedge funds and private equity, whereas risk associated with land and buildings and other market risks such as currency and concentration risk tend to play a minimal role.
Several measures were implemented in the previous year with regard to the methods and processes for managing these risks. This included the introduction of quarterly ALM committee meetings at the top management level and the restructuring of investment limits. In terms of the methods used to measure risk, automated calculation of Solvency II standardised approach modules was added to the functions performed by the SimCorp Dimension portfolio management system.
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 | € | USD | Other | |||
|---|---|---|---|---|---|---|
| Figures in percent | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| Fixed interest securities | ||||||
| High-grade bonds | 3.43 | 3.76 | 3.09 | 3.55 | 5.18 | 5.34 |
| Bank/company bonds | 3.74 | 3.89 | 5.22 | 4.28 | 4.12 | 4.14 |
| Emerging markets bonds | 3.71 | 5.13 | 5.60 | 7.49 | 6.27 | 8.39 |
| High-yield bonds | 7.47 | 8.74 | 5.25 | 9.48 | 4.45 | 4.45 |
| Other investments | 3.08 | 3.36 | 2.37 | 0.00 | 1.56 | 0.00 |
| Fixed interest liabilities | ||||||
| Subordinated liabilities | 5.34 | 5.34 | ||||
| Guaranteed interest life insurance | 2.66 | 2.71 |
| Investments for long-term life insurance policies with guaranteed interest and profit sharing |
31 Dec. 2012 | 31 Dec. 2011 |
|---|---|---|
| Figures in € thousand | ||
| Annuities | 10,492,471 | 9,278,517 |
| Shares | 393,948 | 479,685 |
| Alternatives | 506,641 | 636,199 |
| Holdings | 397,019 | 399,464 |
| Loans | 781,614 | 1,019,325 |
| Real estate | 1,292,474 | 1,198,798 |
| Liquidity | 1,192,161 | 770,381 |
| Deposits receivable | 128,078 | 127,334 |
| Total | 15,184,406 | 13,909,702 |
| Difference between book value and market value | ||
| Real estate | 508,041 | 478,042 |
| Loans | 15,277 | – 96,541 |
| Provisions and liabilities from long-term life insurance policies with guaranteed interest and profit sharing |
31 Dec. 2012 | 31 Dec. 2011 |
|---|---|---|
| Figures in € thousand | ||
| Actuarial provision | 13,493,296 | 13,521,141 |
| Provision for profit-unrelated premium refunds | 2,388 | 2,084 |
| Provision for profit-related premium refunds, i.e. policyholder profit sharing | 511,310 | – 62,826 |
| Other technical provisions | 25,563 | 23,516 |
| Provision for outstanding claims | 129,117 | 108,152 |
| Deposits payable | 426,886 | 441,620 |
| Total | 14,588,559 | 14,033,687 |
The following table shows the structure of the remaining terms of interest-bearing securities and loans.
| Remaining term Figures in € thousand |
31 Dec. 2012 | 31 Dec. 2011 |
|---|---|---|
| Up to 1 year | 861,944 | 689,448 |
| Of more than 1 year up to 3 years | 1,503,088 | 1,067,439 |
| Of more than 3 years up to 5 years | 2,225,739 | 1,932,150 |
| Of more than 5 years up to 7 years | 1,381,584 | 2,159,205 |
| Of more than 7 years up to 10 years | 3,112,406 | 2,289,454 |
| Of more than 10 years up to 15 years | 864,415 | 859,164 |
| More than 15 years | 1,324,909 | 1,300,982 |
| Total | 11,274,086 | 10,297,842 |
The capital-weighted average remaining term of technical liabilities is around 9.1 years (2011: 9.0 years).
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.
| Investments in unit-linked and index-linked life insurance policies Figures in € thousand |
31 Dec. 2012 | 31 Dec. 2011 |
|---|---|---|
| Share-based funds | 1,069,691 | 951,241 |
| Bond funds | 3,846,087 | 3,274,938 |
| Liquidity | 66,904 | 89,318 |
| Other investments | 84,145 | 80,519 |
| Total | 5,066,828 | 4,396,016 |
The actuarial interest rate for the actuarial provision in health insurance lines, which is selected depending on the type of life insurance, is 3 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 Dec. 2012 | 31 Dec. 2011 |
|---|---|---|
| Annuities | 1,466,342 | 1,094,340 |
| Shares | 38,076 | 85,793 |
| Alternatives | 92,450 | 88,812 |
| Holdings | 201,955 | 207,349 |
| Loans | 193,036 | 732,758 |
| Real estate | 311,661 | 331,258 |
| Liquidity | 188,717 | 387,256 |
| Total | 2,492,237 | 2,927,567 |
| Difference between book value and market value | ||
| Real estate | 86,477 | 119,825 |
| Loans | 6,106 | – 9,931 |
| Provisions and liabilities from long-term health insurance policies Figures in € thousand |
31 Dec. 2012 | 31 Dec. 2011 |
|---|---|---|
| Actuarial provision | 2,218,575 | 2,693,400 |
| Provision for profit-unrelated premium refunds | 10,298 | 17,264 |
| Provision for profit-related premium refunds, i.e. policyholder profit sharing | 43,927 | 63,495 |
| Other technical provisions | 885 | 574 |
| Provision for unearned premiums | 20,395 | 16,338 |
| Provision for outstanding claims | 168,322 | 177,139 |
| Deposits payable | 1,091 | 1,204 |
| Total | 2,463,495 | 2,969,414 |
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 |
31.12.2012 | 31.12.2011 |
|---|---|---|
| Up to 1 year | 325,267 | 170,561 |
| Of more than 1 year up to 3 years | 506,506 | 374,618 |
| Of more than 3 years up to 5 years | 446,859 | 362,919 |
| Of more than 5 years up to 7 years | 266,051 | 416,044 |
| Of more than 7 years up to 10 years | 372,516 | 430,192 |
| Of more than 10 years up to 15 years | 72,932 | 100,386 |
| More than 15 years | 146,623 | 169,504 |
| Total | 2,136,754 | 2,024,224 |
Credit risk: 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 Dec. 2012 | 31 Dec. 2011 |
|---|---|---|
| AAA | 4,072,974 | 3,516,927 |
| AA | 2,528,971 | 1,826,334 |
| A | 3,137,296 | 3,156,654 |
| BBB | 3,309,737 | 2,722,147 |
| BB | 858,631 | 875,010 |
| B | 548,974 | 461,888 |
| CCC | 101,431 | 262,460 |
| Not rated | 328,990 | 227,397 |
| Total | 14,887,004 | 13,048,817 |
The values as at 31 December 2012 also include the securities reclassified to the category of loans in the 3rd quarter of 2008 with a value of €906,435 thousand (2011: €1,089,093 thousand).
Share risk: when investing in stock markets, the risk is diversified by using various management styles (total return approach, benchmark-oriented approach, value growth approach and industry- and 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 Dec. 2012 | 31 Dec. 2011 |
|---|---|---|
| Shares in Europe | 391,321 | 475,699 |
| Shares in America | 26,964 | 32,778 |
| Shares in Asia | 9,091 | 11,051 |
| Shares international1) | 18,224 | 22,153 |
| Shares in emerging markets | 10,270 | 12,485 |
| Shares total return2) | 179,200 | 217,840 |
| Other shares | 17,532 | 21,313 |
| Total | 652,603 | 793,319 |
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.
Currency risk: 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 Dec. 2012 Figures in € thousand |
€ | USD | Other | Total |
|---|---|---|---|---|
| Assets | ||||
| Investments | 23,845,492 | 444,210 | 2,017,941 | 26,307,644 |
| Other tangible assets | 90,682 | 21,922 | 112,604 | |
| Intangible assets | 1,268,572 | 145,835 | 1,414,406 | |
| Share of reinsurance in the technical provisions | 945,169 | 69,495 | 1,014,665 | |
| Other assets | 899,503 | 288,403 | 1,187,905 | |
| Total | 27,049,418 | 444,210 | 2,543,596 | 30,037,224 |
| Provisions and liabilities | ||||
| Subordinated liabilities | 450,000 | 0 | 450,000 | |
| Technical provisions | 22,931,199 | 1,842,751 | 24,773,950 | |
| Other provisions | 885,115 | 30,522 | 915,637 | |
| Liabilities | 1,696,632 | 183,424 | 1,880,055 | |
| Total | 25,962,945 | 0 | 2,056,697 | 28,019,642 |
| 31 Dec. 2011 Figures in € thousand |
€ | USD | Other | Total |
| Assets | ||||
| Investments | 21,923,947 | 791,089 | 1,886,053 | 24,601,090 |
| Other tangible assets | 108,794 | 22,467 | 131,261 | |
| Intangible assets | 1,370,121 | 130,210 | 1,500,331 | |
| Share of reinsurance in the technical provisions | 1,022,996 | 66,663 | 1,089,658 | |
| Other assets | 1,009,404 | 235,913 | 1,245,318 | |
| Total | 25,435,263 | 791,089 | 2,341,306 | 28,567,658 |
| Provisions and liabilities | ||||
| Subordinated liabilities | 575,000 | 0 | 575,000 | |
| Technical provisions | 22,654,008 | 1,552,434 | 24,206,442 | |
| Other provisions | 761,816 | 26,294 | 788,109 | |
| Liabilities | 1,751,991 | 150,531 | 1,902,522 | |
| Total | 25,742,815 | 0 | 1,729,259 | 27,472,074 |
The fair value of securities investments in US dollars amounted to €2,176 million as at 31 December 2012 (2011: €1,766 million). The exchange rate risk decreased through derivative financial instruments to €444 million (2011: €791 million), and the safeguard ratio was 61.6 per cent (2011: 71.0 per cent). This decline is based on a deliberate reduction of the foreign currency risk.
Additional market risks that are being handled in the context of the ORSA process:
Liquidity 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 €61 million (2011: €72 million).
Sensitivities: risk management for investments takes place in a structured investment process, in which the various market risks are controlled at the levels of the selection of a strategic asset allocation, the tactical weighting of the individual asset classes depending on market opinion and in the form of timing and selection decisions. In particular, stress tests and sensitivity analyses are used as key figures for measuring, observing and actively controlling the risk.
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.
| Interest rate risk | 31 Dec. 2012 | 31 Dec. 2011 | ||
|---|---|---|---|---|
| Figures in € thousand | + 100 basis points – 100 basis points + 100 basis points – 100 basis points | |||
| High-grade bonds | – 494,579 | 566,752 | – 350,679 | 375,014 |
| Bank/company bonds | – 92,036 | 99,447 | – 64,335 | 68,799 |
| Emerging markets bonds | – 59,715 | 66,150 | – 42,649 | 45,609 |
| High-yield bonds | – 1,575 | 1,728 | – 372 | 397 |
| Total | –647,905 | 734,077 | –458,034 | 489,819 |
| Equity risk | 31 Dec. 2012 | 31 Dec. 2011 | ||
| Figures in € thousand | + 10% | – 10% | + 10% | – 10% |
| Shares in Europe | 28,359 | – 28,364 | 31,158 | – 31,158 |
| Shares in America | 3,405 | – 3,405 | 4,526 | – 4,526 |
| Shares in Asia | 3,145 | – 3,145 | 1,587 | – 1,587 |
| Shares international | 135 | – 135 | 2,288 | – 2,288 |
| Shares in emerging markets | 2,911 | – 2,911 | 1,404 | – 1,404 |
| Shares total return | 1,515 | – 1,515 | 16,128 | – 16,128 |
| Derivative financial instruments and other shares | 195 | – 195 | 2,195 | – 2,210 |
| Total | 39,665 | –39,671 | 59,286 | –59,300 |
| Currency risk | 31 Dec. 2012 | 31 Dec. 2011 | ||
| Figures in € thousand | + 10% | – 10% | + 10% | – 10% |
| € | 0 | 0 | 0 | 0 |
| USD | 44,390 | – 44,390 | 83,052 | – 83,052 |
| Other | 159,981 | – 159,981 | 123,712 | – 123,712 |
| Total | 204,371 | –204,371 | 206,765 | –206,765 |
| Credit risk | 31 Dec. 2012 | 31 Dec. 2011 | |||
|---|---|---|---|---|---|
| Figures in € thousand | + | – | + | – | |
| AAA | 0 basis points | 0 | 0 | 0 | 0 |
| AA | 25 basis points | – 23,691 | 24,314 | – 71,134 | 71,134 |
| A | 50 basis points | – 72,696 | 76,358 | – 125,820 | 125,820 |
| BAA | 75 basis points | – 99,814 | 107,158 | – 103,462 | 103,462 |
| BA | 100 basis points | – 26,255 | 28,594 | – 34,066 | 34,066 |
| B | 125 basis points | – 16,613 | 18,580 | – 17,494 | 17,494 |
| CAA | 150 basis points | – 1,771 | 2,740 | – 6,575 | 6,575 |
| Not rated | 100 basis points | 1,006 | 24,324 | – 9,085 | 9,085 |
| Total | –239,834 | 282,069 | –367,635 | 367,635 |
Value at Risk (VaR): the overall market risk of the investment portfolio is determined on the basis of the value-at-risk approach. The key figure is calculated for a confidence interval of 95 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 |
|---|---|---|---|---|---|
| 31.12.2012 | 959,523 | 236,108 | 219,466 | 940,800 | – 436,851 |
| 31.12.2011 | 1,026,235 | 389,567 | 282,699 | 751,008 | – 397,039 |
| Lowest | 959,523 | 236,108 | 231,017 | 940,679 | – 373,855 |
| Average | 1,121,370 | 348,880 | 351,561 | 1,094,370 | – 559,996 |
| Highest | 1,384,416 | 432,059 | 444,628 | 1,368,648 | – 834,913 |
The UNIQA Group held 2.3 per cent (2011: 2.5 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.
UNIQA is of the view that it will not be possible to ascertain a fair value for these securities on the basis of market prices or market transactions for the year 2012 due to low liquidity. Socalled market prices, insofar as these can even be identified in individual cases, pertain only in the rarest of cases to securities that are held directly in the portfolio or even to securities from the same issuer, but rather generally to another paper that is similar in terms of rating and securitisation category.
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 SCDM, 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 per cent quantile or the 90 per cent quantile of the distribution function of the failures.
| Sensitivity analysis Announce in € million |
Upside | Downside |
|---|---|---|
| Total profit/loss | 8.1 | – 77.2 |
| on P&L | 0.3 | – 46.6 |
| on equity | 7.8 | – 30.6 |
UNIQA has a participating interest in STRABAG SE of 14.88 per cent as at the reporting date of 31 December 2012 (31 December 2011: 14.97 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, a purchase option was conceded to a strategic investor for an additional 1.4 million individual shares of STRABAG SE. It can be exercised between July 2012 and July 2014. In 2012, 0.1 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 |
2012 |
|---|---|
| As at 1 Jan. | 461,521 |
| Disposal | – 2,113 |
| Updating affecting income1) | 21,196 |
| Updating not affecting income | – 2,241 |
| Dividends | – 9,410 |
| As at 31 Dec. | 468,953 |
| Value in € per share | 27.64 |
1) The estimate for the as-yet-unpublished 4th quarter of 2012 was also worked on during the financial year.
| Issuer Figures in € thousand |
Current market value 31 Dec. 2012 |
|---|---|
| Spain | 68,302 |
| Greece | 0 |
| Ireland | 197,277 |
| Italy | 671,819 |
| Portugal | 0 |
| Total | 937,398 |
Various risk exposures in the investment segment were reduced in the course of an extensive de-risking programme during 2012. For example, the portfolio of the UNIQA Group no longer held Portuguese or Greek government bonds as at 31 December 2012. Other peripheral nations were reduced from €1,224 million to €937 million. The comparatively high proportion of Italian government bonds, most of which is invested in the Italian subsidiaries, is worth noting because we assume that changes in the value of Italian government bonds due to adjustments made to the regulatory framework are highly correlated to obligations on the liabilities side.
The remaining exposure to PIIGS countries is within our risk-bearing capacity and is covered by our strategic expectation that governments will take all necessary measures to stabilise the euro and resolve the debt crisis.
The difference between the amortised cost and the market value of the Irish, Italian and Spanish debt instruments – reduced by the deferred profit participation (in life insurance) and deferred taxes – predominantly affects the revaluation reserves. After taking into account the different aspects of the European rescue packages, there is currently no evidence that the return of future cash flows in connection with these debt instruments will be jeopardised over the long term.
The financial risks have different weightings and various degrees of seriousness, depending on the investment structure. However, the effects of the financial risks on the value of the investments also influence the level of technical liabilities to some extent. 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 an asset liability management (ALM) process that was newly defined in 2012. 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 Figures in € thousand |
31 Dec. 2012 | 31 Dec. 2011 |
|---|---|---|
| Long-term life insurance policies with guaranteed interest and profit sharing | 15,184,406 | 13,909,702 |
| Long-term unit-linked and index-linked life insurance policies | 5,066,828 | 4,396,016 |
| Long-term health insurance policies | 2,492,237 | 2,927,567 |
| Short-term property and casualty insurance policies | 3,564,173 | 3,367,805 |
| Total | 26,307,644 | 24,601,090 |
These values refer to the following balance sheet items:
| Technical provisions and liabilities (retained) Figures in € thousand |
31 Dec. 2012 | 31 Dec. 2011 |
|---|---|---|
| Long-term life insurance policies with guaranteed interest and profit sharing | 14,588,559 | 14,033,687 |
| Long-term unit-linked and index-linked life insurance policies | 4,983,029 | 4,318,331 |
| Long-term health insurance policies | 2,463,495 | 2,969,414 |
| Short-term property and casualty insurance policies | 2,561,018 | 2,655,562 |
| Total | 24,596,101 | 23,976,994 |
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 and Czech regions.
The risk of catastrophic flooding is 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.
insurance.
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 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
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 Dec. 2012 |
31 Dec. 2011 |
|---|---|---|
| Austria | 12,197,791 | 11,728,935 |
| Western Europe (WE) | 1,864,220 | 1,839,412 |
| Central Europe (CE) | 314,393 | 303,801 |
| Eastern Europe (EE) | 18,238 | 10,041 |
| Southeastern Europe (SEE) | 152,716 | 132,179 |
| Russia (RU) | 41,200 | 19,318 |
| 14,588,559 14,033,687 |
| 4,983,029 | 4,318,331 | |
|---|---|---|
| Russia (RU) | 0 | 0 |
| Southeastern Europe (SEE) | 907 | 740 |
| Eastern Europe (EE) | 0 | 0 |
| Central Europe (CE) | 366,938 | 296,562 |
| Western Europe (WE) | 564,641 | 525,952 |
| Austria | 4,050,543 | 3,495,077 |
| Figures in € thousand |
UNIQA's portfolio consists primarily of long-term insurance policies. Short-term assurances payable at death play a minor role.
In the following table, the number of insurance policies is divided into rate groups and insured sum categories. Here, the analysis relates to Austrian life insurance companies that manage the majority of the life insurance portfolio.
| Number of insurance policies as at 31 Dec. 2012 Category1) |
Capital insurance |
Retirement annuity deferred |
Retirement annuity in payment |
Risk insurance |
|---|---|---|---|---|
| € 0 to € 20,000 | 762,686 | 83,330 | 8,121 | 128,855 |
| € 20,000 to € 40,000 | 164,000 | 33,815 | 3,363 | 38,656 |
| € 40,000 to € 100,000 | 70,993 | 20,526 | 2,428 | 129,731 |
| € 100,000 to € 200,000 | 8,079 | 5,766 | 742 | 72,207 |
| More than € 200,000 | 1,908 | 2,178 | 261 | 9,818 |
1) For capital assurance and risk insurance, the insurance total is used as basis; for deferred retirement annuities, the redemption capital at the start of the pension payment phase is used. For liquid pension annuities, the category refers to ten times the annuity.
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 (the Austrian Mortality Table for 1990/92 or for 2000/02).
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.
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, because not only could the calculated mortality probabilities prove to be too low, the independence of the risks can also no longer be assumed.
Cumulative risks contained in the portfolio can be reduced by using reinsurance contracts. As the first reinsurer, UNIQA Versicherungen AG operates with a retained risk of €200,000 per insured life; the excesses are mostly re-insured with Swiss Re, Münchener Rück and Gen Re. A catastrophic excess (CAT-XL) contract is also held with Swiss Re, although it excludes losses resulting from epidemics.
The portfolios of Raiffeisen Versicherung AG and UNIQA Personenversicherung AG contain large inventories of risk 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.
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.
| Region Figures in per cent |
Actuarial interest rate |
|---|---|
| WE | 2.45 |
| CE | 3.50 |
| EE | 3.40 |
| SEE | 3.25 |
| Russia | 3.55 |
| AT | 2.62 |
1) Definition of regions:
WE – Austria, Italy, Switzerland, Liechtenstein
CEE – Poland, Hungary, Czech Republic, Slovakia
EE – Romania, Ukraine
SEE – Bulgaria, Serbia, Bosnia and Herzegovina, Croatia AT – UNIQA Austria, Raiffeisen Insurance, Salzburger Landes-Versicherung
The average actuarial interest rate in the portfolio of Austrian companies is 2.62 per cent (2011: 2.66 per cent) per annum.
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 duration matching cannot be fully achieved on the investment and liability side. The duration of the assets is 5.1 years (2011: 4.0 years), while for liabilities it is considerably longer. This creates a duration gap, which means that the ratio of assets to liabilities reduces as interest rates fall.
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 profitsharing) 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).
The capital-weighted average remaining term of technical liabilities is around 9.1 years (2011: 9.0 years).
The health insurance business is operated primarily in Austria (92 per cent domestic and 8 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 per cent. If 3 per cent is not achieved by the investment, premiums contain safety margins that may be used in the event 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. Because new business in fully unisex tariffs to date represents barely any share in the overall portfolio in this sector, we do not currently anticipate a risk of miscalculation from this angle. It is more difficult to assess the problem of converting existing female policies to the new unisex tariff, but we can expect, based on our experience with the (partial) unisex tariff since 2007, that this risk will remain within a limited range.
The risk of the health insurance business outside Austria is dominated primarily by UNIQA Assicurazioni in Milan (approximately €33.4 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 €38.4 million) are divided among multiple companies and are of only minor importance there. Only in Switzerland (Geneva) is health insurance the primary business (approximately €7.4 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 cash-generating 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 and its book value, consisting of the stock value and goodwill and the proportional net assets. If the book value of the CGU 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:
| Region | 31.12.2012 |
|---|---|
| Figures in € thousand | |
| Austria | 40,513 |
| Western Europe (WE) | 124,385 |
| Central Europe (CE) | 59,041 |
| Eastern Europe (EE) | 151,559 |
| Southeastern Europe (SEE) | 99,062 |
| Russia (RU) | 87 |
| Total | 474,646 |
The UNIQA Group calculates the recoverable amount 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 and the estimate of the long-term results achievable by the CGUs (perpetuity) are used as the starting point for determina-tion of the earning power
The earning power is determined through discounting of the future profits with a suitable capitalisation interest rate. 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 | |
| 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 | 10.0 | 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
| Cash-Generating Unit | Discount factor | Discount factor perpetuity | ||
|---|---|---|---|---|
| Figures in percent | Property and casualty |
Life & Health | Property and casualty |
Life & Health |
| Albania | 13.2 | 16.4 | 11.2 | 14.0 |
| Bosnia-Herzegovina | 15.6 | 19.5 | 12.1 | 15.2 |
| Bulgaria | 9.2 | 11.1 | 7.6 | 9.3 |
| Germany | 6.3 | 7.4 | 5.3 | 6.4 |
| Italy | 8.2 | 9.8 | 6.9 | 8.3 |
| Kosovo | 12.8 | 15.8 | 10.1 | 12.7 |
| Croatia | 10.0 | 12.2 | 8.0 | 9.9 |
| Liechtenstein | 6.3 | 7.4 | 5.3 | 6.4 |
| Macedonia | 12.8 | 15.8 | 10.1 | 12.7 |
| Montenegro | 12.8 | 15.8 | 10.1 | 12.7 |
| Austria | 6.3 | 7.4 | 5.3 | 6.4 |
| Poland | 8.4 | 10.1 | 7.1 | 8.6 |
| Romania | 11.6 | 14.2 | 9.4 | 11.7 |
| Russia | 9.2 | 11.1 | 7.6 | 9.3 |
| Switzerland | 6.3 | 7.4 | 5.3 | 6.4 |
| Serbia | 12.8 | 15.8 | 10.1 | 12.7 |
| Slovakia | 8.2 | 9.8 | 6.9 | 8.3 |
| Czech Republic | 7.9 | 9.4 | 6.6 | 8.0 |
| Ukraine | 13.2 | 16.4 | 11.2 | 14.0 |
| Hungary | 11.6 | 14.2 | 9.4 | 11.7 |
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 between the UNIQA headquarters, Vienna, and the operational units in combination with the reporting and documentation process integrated into this dialogue.
The phases of the earning power model with no operational or strategic planning were extended to a seven-year period in order to avoid giving too much weight and influence to the perpetuity.
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 value 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 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. In addition, the cash value of the perpetuity was calculated with a growth deduction of 1 per cent in scenario 1 and a deduction of 2 per cent in scenario 2. It is assumed in the third scenario that the credit spreads also remain at the same level in the future and no rating improvement takes place relative to the current situation.
The company value was calculated individually based on the discounting of the cash flow forecasts and the individual weighting of the probability of occurrence of the various scenarios based on the business development of the individual CGUs.
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 following studies and materials served as reference sources:
Sensitivity analyses with regard to the capitalisation interest rate and the main value drivers are performed 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 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. The amortisation of goodwill from the Romanian company in the amount of €15 million is a precautionary risk measure in order to ensure future goodwill potential.
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.
| 2010 | 2011 | 2012e | 2013e | 2014e | |
|---|---|---|---|---|---|
| Poland | |||||
| GDP (% in annual comparison) | 3.8 | 4.3 | 2.1 | 1.2 | 2.7 |
| Hungary | |||||
| GDP (% in annual comparison) | 1.3 | 1.6 | – 1.0 | – 0.5 | 1.5 |
| Czech Republic | |||||
| GDP (% in annual comparison) | 2.7 | 1.7 | – 0.9 | – 0.2 | 1.8 |
| Slovakia | |||||
| GDP (% in annual comparison) | 4.0 | 3.2 | 2.4 | 0.9 | 2.5 |
| Croatia | |||||
| GDP (% in annual comparison) | 1.2 | 0.0 | – 1.8 | 0.5 | 1.5 |
| Bosnia-Herzegovina | |||||
| GDP (% in annual comparison) | 0.7 | 1.3 | – 1.0 | 0.5 | 2.0 |
| Serbia | |||||
| GDP (% in annual comparison) | 1.0 | 1.6 | – 2.0 | 1.0 | 2.0 |
| Bulgaria | |||||
| GDP (% in annual comparison) | 0.2 | 1.7 | 1.5 | 1.5 | 3.5 |
| Romania | |||||
| GDP (% in annual comparison) | – 1.9 | 2.2 | 0.1 | 1.5 | 3.0 |
| Ukraine | |||||
| GDP (% in annual comparison) | 4.2 | 5.2 | 0.5 | 2.5 | 3.0 |
| Albania | |||||
| GDP (% in annual comparison) | 3.9 | 3.1 | 2.0 | 3.0 | 4.0 |
| Russia | |||||
| GDP (% in annual comparison) | 4.0 | 4.3 | 3.5 | 3.0 | 3.0 |
Source: Raiffeisen Research January 2013
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.
Finalising the implementation of a Group-wide internal control system is a major project for the risk management process in 2013. The objective of an internal control system is to secure efficient process workflows, as well as availability and reliability in financial and non-financial reporting.
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, 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 ICS guidelines stipulate that the internal control system must be implemented 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.
Our aim for 2013 is to embed the internal control system in everyday processes on the basis of documentation which is already available. In order to ensure this happens, a monitoring system has been established at all process and organisational levels, which is to be used regularly to check the quality of controls. Furthermore, our ICS system is audited each year and adjusted as necessary.
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. In addition to the risks described in the risk report, the RMS also deals with additional risks as well as those in operational processes, compliance, internal reporting, etc.
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.
The UNIQA Group will complete the ORSA developments in 2013 that were commenced in 2012. "Own Risk and Solvency" assessments form a key aspect of governance under Solvency II and consist of an intense focus on the business strategy and the capital this requires, followed by optimisation of capital expenditure, in addition to the Group's own adequate risk assessment.
In order to be able to implement these requirements, it is necessary to integrate this perception of the development of the equity position and capital requirements situation into the planning process.
This requires the methodical development of corresponding projection approaches and concerted integration into the UNIQA Group's system landscape. A well-founded stress testing and sensitivity system forms a component of the ORSA, which is used to examine risk-bearing capacity in potential extreme situations.
These are to be applied as part of corresponding complex company processes, which are set out in a Group ORSA policy.
ALM is an essential tool for UNIQA for providing the core business with efficient support by means of asset management. In the past year, strategic and tactical asset allocations that are tailored to the respective business models of the Austrian Group companies were approved and implemented by establishing an interdepartmental ALM process. The aim of these provisions is to ensure adequate duration matching between assets and liabilities. This required the further development of limit systems and the migration of associated calculations to a new system, as well as the creation of a Group-wide concept for efficient liquidity management. The plan for 2013 is to expand the ALM process to include targeted capital allocations for certain risk types. The development of central ALM skills for international subsidiaries represents a further key milestone.
The projects commenced in 2012 to overhaul and automate the market and credit risk models will also be implemented finally, as well as being rolled out to the international subsidiaries. A key component of this will be redesigning measurement methods, particularly for more complex financial instruments. To this end, as well as building up the necessary staff resources, an extensive project has been undertaken that will be completed in 2013. Implementing this new system will significantly help to improve the presentation of the current financial risk situation and considerably expand the range of options for risk and scenario calculations, particularly in terms of the further implementation of ALM.
In addition to the limit system for financial risks, the IT tools used to review limits were replaced, modernised and standardised in 2012. On the basis of these newly created options for calculating and reviewing limits, the limit system will be geared towards economic indicators and risk-bearing capacity to an even greater degree in 2013.
In the past year, EIOPA (European Insurance and Occupational Pensions Authority) published recommendations for the European Union's local supervisory authorities in accordance with its mission. These concern the use of external models in internal group models that are used to calculate capital requirements according to Solvency II. For UNIQA, this applies particularly to the measurement of exposure to natural hazards.
In 2013, as well as Risk Management, UNIQA Re AG's natural hazard specialists and employees from local companies participating in corresponding projects will also be occupied with the new requirements arising from this. Knowledge databases will be compiled first of all, then external tools and models must be fully understood, and finally, time and care must be taken to analyse and assess the evaluations arising from these. The knowledge acquired in this process, which must go far beyond standard basic knowledge given the EIOPA requirements, is then to be communicated to all Group bodies concerned with this topic during training sessions. UNIQA will not limit this to companies in countries of the European Union to which these requirements are actually addressed. The newly defined quality requirements will become standard for all of our Group companies.
Based on analyses aimed at safeguarding the sustainability of the life insurance business, the UNIQA Group began to define standardised profitability analyses in the context of Group guidelines in 2011. Since 1 January 2012, all companies in the UNIQA Group which perform life insurance business activities have been obliged to subject products to profit testing before they are launched. Profit testing is firmly established in each company's defined product development process and now follows a standardised procedure.
The product acceptance process and minimum profitability requirements represent the cornerstones of the specified guideline. The product acceptance process governs the involvement of the relevant core functions of actuarials and risk management and interaction between operational units and the UNIQA Group's holding function. Information obligations exist for the Group function in each instance. In cases where the minimum criteria are not met, this must be approved by the Group function. The minimum criteria are designed in such a way that only products that will make a positive value contribution based both on the best estimate and in a pre-defined stress situation are launched.
A guideline similar to the draft guideline was developed for property and casualty insurance in 2012 and will become a compulsory component of the defined product development process as at 1 February 2013. Products from motor vehicle business segments will represent a particular focus in 2013. The objective for 2013 is to implement the defined guidelines aimed at ensuring a transparent overview of product launches in the Group on a consistent basis, thereby creating the basis for integrating value-oriented management into product development.
In order to support one of the cornerstones of the UNIQA Group – focusing on the profitability of core business – an actuarial monitoring system has been defined which is intended to represent a technical development in the areas of life insurance and property and casualty insurance in the form of a standardised surveillance system. The reporting system defined will come into use for the first time as at 31 December 2012, will bring together previous analyses into a compact overall instrument, and is expected to provide a comprehensive insight into key actuarial indicators on a quarterly basis. As well as a break-even analysis broken down into business segments and movement statistics, an analysis of sources of income in life insurance and a detailed analysis of reserve run-offs will form the central component of this monitoring system.
| 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 | 252,288 | 2,605 | 3,587 | 0 | |
| II. Other tangible assets | |||||
| 1. Tangible assets | 67,591 | 546 | 20,947 | 0 | |
| 2. Inventories | 5,872 | 0 | |||
| 3. Other assets | 57,798 | 0 | |||
| Total A. II. | 131,261 | 546 | 20,947 | 0 | |
| Total A. | 383,549 | 3,151 | 24,533 | 0 | |
| B. Land and buildings held as financial investments | 1,566,958 | 4,123 | 226,149 | 0 | |
| C. Intangible assets | |||||
| I. Deferred acquisition costs | 899,732 | 3,376 | 227,865 | 0 | |
| II. Goodwill | |||||
| 1. Purchased positive goodwill | 87 | 0 | 0 | 0 | |
| 2. Positive goodwill | 513,798 | –968 | 0 | 0 | |
| 3. Value of insurance policies | 56,163 | –524 | 0 | 0 | |
| Total C. II. | 570,048 | –1,493 | 0 | 0 | |
| III. Other intangible assets | |||||
| 1. Self-developed software | 2,005 | –153 | 4,314 | 0 | |
| 2. Acquired intangible assets | 28,545 | 546 | 14,660 | 0 | |
| Total C. III. | 30,551 | 393 | 18,974 | 0 | |
| Total C. | 1,500,331 | 2,277 | 246,839 | 0 | |
| D. Shares in associated companies | 530,485 | 0 | 10,590 | –2,241 | |
| E. Investments | |||||
| I. Variable-yield securities | |||||
| 1. Shares, investment shares and other variable-yield securities, including | |||||
| holdings and shares in associated companies | 1,636,133 | 1,523 | 509,410 | 91,450 | |
| 2. At fair value through profit or loss | 549,296 | 0 | 17,442 | 0 | |
| Total E. I. | 2,185,429 | 1,523 | 526,852 | 91,450 | |
| II. Fixed interest securities | |||||
| 1. Debt securities and other fixed interest securities | 11,215,448 | 29,812 | 9,288,029 | 1,051,662 | |
| 2. At fair value through profit or loss | 389,645 | –162 | 64,437 | 0 | |
| Total E. II. | 11,605,094 | 29,650 | 9,352,466 | 1,051,662 | |
| III. Loans and other investments | |||||
| 1. Loans | |||||
| a) Debt securities issued by and loans to associated companies | 121 | 0 | 1,439 | 0 | |
| b) Debt securities issued by and loans to participating interests | 552 | 0 | 0 | 0 | |
| c) Mortgage loans | 77,042 | 0 | 0 | 0 | |
| d) Loans and advance payments on policies | 13,697 | 2 | 4,301 | 0 | |
| e) Other loan receivables and registered bonds | 2,098,026 | 252 | 44,859 | 11,642 | |
| Total E. III. 1. | 2,189,439 | 254 | 50,599 | 11,642 | |
| 2. Cash at credit institutions/cash at banks | 1,023,133 | 6,382 | 587,273 | 1,495 | |
| 3. Deposits with ceding companies | 140,657 | 0 | 3,180 | 0 | |
| Total E. III. | 3,353,229 | 6,636 | 641,053 | 13,137 | |
| IV. Derivative financial instruments | 28,498 | 31 | 17,123 | 0 | |
| Total E. | 17,172,249 | 37,840 | 10,537,493 | 1,156,249 | |
| F. Investments held on account and at risk of life insurance | |||||
| policyholders | 4,396,016 | 19,156 | 1,798,609 | 16,278 | |
| Aggregate total | 25,549,588 | 66,547 | 12,844,213 | 1,170,286 | |
| Book value financial year |
Depreciation | Appreciation | Disposals | Transfers | Amortisation | |
|---|---|---|---|---|---|---|
| 194,151 | 8,314 | 0 | 50,707 | –5,308 | 0 | |
| 58,342 | 16,620 | 0 | 5,396 | –8,725 | 0 | |
| 5,465 | 407 | |||||
| 48,796 | 9,002 | |||||
| 112,604 | 16,620 | 0 | 14,805 | –8,725 | 0 | |
| 306,755 | 24,934 | 0 | 65,512 | –14,033 | 0 | |
| 1,690,763 | 52,114 | 2,816 | 71,360 | 14,191 | 0 | |
| 868,802 | 262,171 | 0 | 0 | 0 | 0 | |
| 0 | 87 | 0 | 0 | 0 | 0 | |
| 474,646 | 15,000 | 0 | 23,184 | 0 | 0 | |
| 45,789 520,435 |
9,850 24,937 |
0 0 |
0 23,184 |
0 0 |
0 0 |
|
| 2,460 | 508 | 0 | 3,198 | 0 | 0 | |
| 22,709 | 9,389 | 0 | 11,495 | –158 | 0 | |
| 25,170 | 9,897 | 0 | 14,693 | –158 | 0 | |
| 1,414,406 | 297,006 | 0 | 37,877 | –158 | 0 | |
| 529,602 | 10,931 | 16,038 | 14,339 | 0 | 0 | |
| 1,395,902 | 25,900 | 13,088 | 829,802 | –1 | 0 | |
| 371,262 1,767,164 |
41,020 66,919 |
56,642 69,730 |
211,098 1,040,899 |
0 –1 |
0 0 |
|
| 13,186,622 | 121,280 | 57,765 | 8,343,638 | –116 | 8,940 | |
| 441,623 | 17,600 | 54,377 | 49,375 | 0 | 301 | |
| 13,628,244 | 138,880 | 112,141 | 8,393,013 | –116 | 9,242 | |
| 1,421 | 15 | 4 | 128 | 0 | 0 | |
| 552 | 0 | 0 | 0 | 0 | 0 | |
| 51,399 | 25 | 0 | 25,618 | 0 | 0 | |
| 13,011 | 6 | 6 | 4,989 | 0 | 0 | |
| 1,023,265 | 1,984 | 308 | 1,130,185 | 0 | 348 | |
| 1,089,649 | 2,031 | 317 | 1,160,920 | 0 | 348 | |
| 1,189,217 | 6,945 | 663 | 422,783 | 0 | 0 | |
| 129,755 | 0 | 0 | 14,082 | 0 | 0 | |
| 2,408,621 | 8,977 | 980 | 1,597,785 | 0 | 348 | |
| 62,206 | 35,479 | 75,070 | 23,036 | 0 | 0 | |
| 17,866,236 | 250,255 | 257,921 | 11,054,734 | –117 | 9,590 | |
| 5,066,828 | 14,516 | 376,945 | 1,525,869 | 117 | 91 | |
| 26,874,588 | 649,756 | 653,721 | 12,769,692 | 0 | 9,681 | |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Book values for | ||
| Property and casualty | 74,501 | 77,066 |
| Health | 11,836 | 11,415 |
| Life | 107,814 | 163,808 |
| 194,151 | 252,288 | |
| Market values for | ||
| Property and casualty | 104,669 | 101,030 |
| Health | 14,749 | 13,903 |
| Life | 149,852 | 208,023 |
| 269,269 | 322,955 | |
| Acquisition values | 287,231 | 379,396 |
| Cumulative depreciation | –93,080 | –127,108 |
| Book values | 194,151 | 252,288 |
| Useful life for land and buildings | 10–80 years | 10–80 years |
| Additions from company acquisition Figures in € thousand |
31.12.2012 | 31.12.2011 |
| Self-used land and buildings | 0 | 0 |
The market values are derived from expert reports.
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Tangible assets | 58,342 | 67,591 |
| Inventories | 5,465 | 5,872 |
| Other assets | 48,796 | 57,798 |
| Total | 112,604 | 131,261 |
Tangible assets
| Development in financial year Figures in € thousand |
|
|---|---|
| Acquisition values as at 31.12.2011 | 242,014 |
| Cumulative depreciation up to 31.12.2011 | –174,424 |
| Book values as at 31.12.2011 | 67,591 |
| Currency translation changes | 546 |
| Additions | 20,947 |
| Disposals | –5,396 |
| Transfers | –8,725 |
| Appreciation and depreciation | –16,620 |
| Book values as at 31.12.2012 | 58,342 |
| 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 |
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 | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Figures in € thousand | ||
| Other tangible assets | 696 | 29 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Book values for | ||
| Property and casualty | 224,654 | 282,815 |
| Health | 299,825 | 294,744 |
| Life | 1,166,284 | 989,399 |
| 1,690,763 | 1,566,958 | |
| Market values for | ||
| Property and casualty | 352,562 | 455,630 |
| Health | 383,390 | 412,081 |
| Life | 1,613,554 | 1,423,226 |
| 2,349,505 | 2,290,937 | |
| Acquisition values | 2,228,217 | 2,135,243 |
| Cumulative depreciation | –537,454 | –568,284 |
| Book values | 1,690,763 | 1,566,958 |
| Useful life for land and buildings | 10–80 years | 10–80 years |
| Additions from company acquisition Figures in € thousand |
31.12.2012 | 31.12.2011 |
| Land and buildings held as financial investments | 173,324 | 112,960 |
| Figures in € thousand | 31.12.2012 |
|---|---|
| Change in impairment for current year | 6,714 |
| of which reallocation affecting income | 6,714 |
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| Property and casualty | ||
| As at 1.1. | 169,364 | 162,092 |
| Currency translation changes | 2,051 | –2,920 |
| Change in consolidation scope | –31,457 | 0 |
| Capitalisation | 119,545 | 114,921 |
| Depreciation | –105,400 | –104,729 |
| As at 31.12. | 154,103 | 169,364 |
| Health | ||
| As at 1.1. | 232,680 | 227,185 |
| Currency translation changes | 114 | –121 |
| Change in consolidation scope | –18,875 | 0 |
| Capitalisation | 18,432 | 18,138 |
| Interest surchage | 9,041 | 8,833 |
| Depreciation | –20,027 | –21,356 |
| As at 31.12. | 221,365 | 232,680 |
| Life | ||
| As at 1.1. | 497,687 | 501,854 |
| Currency translation changes | 1,211 | –987 |
| Change in consolidation scope | 0 | 0 |
| Capitalisation | 113,799 | 107,064 |
| Interest surchage | 17,381 | 14,605 |
| Depreciation | –136,744 | –124,848 |
| As at 31.12. | 493,334 | 497,687 |
| As at 1.1. | 899,732 | 891,131 |
|---|---|---|
| Currency translation changes | 3,376 | –4,028 |
| Change in consolidation scope | –50,332 | 0 |
| Capitalisation | 251,776 | 240,123 |
| Interest surchage | 26,421 | 23,438 |
| Depreciation | –262,171 | –250,932 |
| As at 31.12. | 868,802 | 899,732 |
| Figures in € thousand | |
|---|---|
| Acquisition values as at 31.12.2011 | 761,677 |
| Cumulative depreciation up to 31.12.2011 | –191,629 |
| Book values as at 31.12.2011 | 570,048 |
| Acquisition values as at 31.12.2012 | 680,964 |
| Cumulative depreciation up to 31.12.2012 | –160,529 |
| Book values as at 31.12.2012 | 520,435 |
There were no major additions in 2012– see also the Notes on the scope of consolidation, page 187.
| Figures in € thousand | |
|---|---|
| Cumulative depreciation up to 31.12.2012 | 160,529 |
| of which relating to impairment | 58,767 |
| of which current depreciation | 101,762 |
| Figures in € thousand | 31.12.2012 |
| Change in impairment for current year | 15,000 |
| of which reallocation affecting income | 15,000 |
The values mentioned above include the goodwill and the purchase price paid for the total acquired insurance policies.
| Company acquisitions 2011 | Amounts placed at the time of |
Book values of the acquired |
|---|---|---|
| Figures in € thousand | acquisition | companies |
| Assets | 318,588 | 318,587 |
| Tangible assets | 696 | 696 |
| Land and buildings held as financial investments | 173,324 | 173,324 |
| Intangible assets | 85 | 85 |
| Shares in associated companies | 132,621 | 132,621 |
| Investments | 0 | 0 |
| Investments held on account and at risk of life insurance policyholders | 0 | 0 |
| Share of reinsurance in technical provisions | 0 | 0 |
| Receivables including receivables under insurance business | 1,993 | 1,993 |
| Receivables from income tax | 0 | 0 |
| Deferred tax assets | 1,933 | 1,933 |
| Liquid funds | 7,936 | 7,936 |
| Equity and liabilities | 318,588 | 318,587 |
|---|---|---|
| Total equity | 204,754 | 204,753 |
| Subordinated liabilities | 0 | 0 |
| Technical provisions | 0 | 0 |
| Technical provisions held on account and at risk | ||
| of life insurance policyholders | 0 | 0 |
| Financial liabilities | 59,624 | 59,624 |
| Other provisions | 430 | 430 |
| Payables and other liabilities | 38,561 | 38,561 |
| Liabilities from income tax | 193 | 193 |
| Deferred tax liabilities | 15,026 | 15,026 |
| Currency differences | 0 | 0 |
| Self-developed | |||
|---|---|---|---|
| Figures in € thousand | software | Acquired intangible assets | |
| Acquisition values as at 31.12.2011 | 38,230 | 179,796 | |
| Cumulative depreciation up to 31.12.2011 | –36,224 | –151,251 | |
| Book values as at 31.12.2011 | 2,005 | 28,545 | |
| 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 |
The other intangible assets are composed of:
| 31.12.2012 Figures in € thousand Computer software 21,405 Copyrights 0 Licences 1,417 Other intangible assets 2,348 |
25,170 | 30,551 |
|---|---|---|
| 2,410 | ||
| 1,276 | ||
| 0 | ||
| 26,865 | ||
| 31.12.2011 |
| 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 |
31.12.2012 | 31.12.2011 |
|---|---|---|
| Self-developed software | 0 | 0 |
| Acquired intangible assets | 86 | 653 |
| Figures in € thousand | 2012 |
Research and development expenditure recorded as an expense during the period under review 2,360
| Figures in € thousand | 31.12.2012 | 31.12.2011 | |
|---|---|---|---|
| Current market values for | |||
| Shares in affiliated companies of minor importance 1) | 10,594 | 21,845 | |
| Shares in associated companies of minor importance | 3,450 | 3,574 | |
| Book values for | |||
| Shares in associated companies valued at equity | 526,151 | 526,911 | |
| Equity for | |||
| Shares in affiliated companies of minor importance | 8,108 | 22,959 | |
| Annual net profit/loss for the year | |||
| Shares in affiliated companies of minor importance | 547 | 1,189 |
1) The shares in affiliated 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 |
31.12.2012 |
|---|---|
| Current market value of associated companies listed on a public stock exchange | 345,021 |
| Profits/losses for the period | 19,058 |
| Unrecorded, proportional loss, ongoing, if shares of loss are no longer recorded | 2,029 |
| Unrecorded, proportional loss, cumulative, if shares of loss are no longer recorded | 2,029 |
| Proportional asset value of shares in associated companies valued at equity | 1,716,381 |
| Proportional liabilities of shares in associated companies valued at equity | 1,236,879 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 | ||
|---|---|---|---|---|
| Assets | ||||
| A. Tangible assets | ||||
| II. Other tangible assets | 2,485 | 0 | ||
| B. Land and buildings held as financial investments | 48,885 | 0 | ||
| C. Intangible assets | ||||
| III. Other intangible assets | 40 | 0 | ||
| D. Shares in associated companies | 82 | 0 | ||
| E. Investments | ||||
| I. Variable-yield securities | ||||
| 1. Available for sale | 6 | 0 | ||
| II. Fixed interest securities | ||||
| 1. Available for sale | 280 | 0 | ||
| I. Receivables including receivables under insurance business | ||||
| II. Other receivables | 4,537 | 0 | ||
| III. Other assets | 214 | 0 | ||
| K. Deferred tax assets | –434 | 0 | ||
| L. Liquid funds | 7,565 | 0 | ||
| M. Assets in disposal groups available for sale | 63,661 | 0 |
| Figures in € thousand | 31.12.2012 31.12.2011 | |
|---|---|---|
| Equity and liabilities | ||
| E. Financial liabilities | ||
| I. Liabilities from loans | 2,480 | 0 |
| F. Other provisions | ||
| I. Pensions and similar provisions | 2,301 | 0 |
| II. Other provisions | 2,008 | 0 |
| G. Payables and other liabilities | ||
| II. Other payables | 3,913 | 0 |
| H. Liabilities from income tax | 44 | 0 |
| I. Deferred tax liabilities | 445 | 0 |
| J. Liabilities in disposal groups available for sale | 11,191 | 0 |
| Balance sheet values previous |
Currency differences |
Additions | Transfers | Disposals | Depreciation | Balance sheet values financial |
|
|---|---|---|---|---|---|---|---|
| Figures in € thousand | year | year | |||||
| A. Tangible assets | 3,477 | 11 | 587 | –110 | 31 | 1,448 | 2,485 |
| B. Land and buildings held as financial investments | 57,488 | 534 | 327 | 110 | 25 | 9,551 | 48,885 |
| C. Intangible assets | 54 | 0 | 6 | 0 | 0 | 20 | 40 |
| Type of investment | Acquisition costs Fluctuation in value not Accumulated value affecting income adjustments |
Foreign currency differences affecting income |
Market values | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Figures in € thousand | 31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011 | |||||||||||
| Shares in affiliated companies | 10,594 | 21,845 | 0 | 0 | 0 | 0 | 0 | 0 | 10,594 | 21,845 | ||
| Shares | 480,863 | 505,854 | 201,576 | 216,309 | –74,656 | –149,916 | 0 | 0 | 607,783 | 572,247 | ||
| Equity funds | 217,458 | 480,823 | 13,832 | 1,929 | –15,333 | –27,881 | 0 | 0 | 215,957 | 454,871 | ||
| Debenture bonds not capital-guaranteed | 234,122 | 251,826 | 3,718 | 2,733 | –14,403 | –19,994 | –2,790 | –2,812 | 220,647 | 231,753 | ||
| Other variable-yield securities | 33,750 | 48,278 | 0 | –1,143 | –7,300 | –5,350 | 0 | 0 | 26,450 | 41,785 | ||
| Participating interests and other | ||||||||||||
| investments | 302,841 | 314,233 | 65,917 | 53,362 | –54,287 | –53,964 | 0 | 0 | 314,471 | 313,631 | ||
| Fixed-interest securities | 12,874,825 12,375,993 | 619,638 | –501,848 | –247,182 | –629,291 | –60,659 | –29,405 13,186,622 | 11,215,448 | ||||
| Total | 14,154,453 13,998,852 | 904,680 | –228,658 | –413,161 | –886,395 | –63,449 | –32,218 14,582,524 12,851,581 |
Valuations based on internal calculations are included in the market values of shares. The effect of the internal valuation for 2012 results in no value increase not affecting income (2011: value increase €53,500 thousand).
| Type of investment | Accumulated value adjustments |
Of which accumulated Of which from current year from previous years |
||||
|---|---|---|---|---|---|---|
| Figures in € thousand | 31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011 | |||||
| Shares in affiliated companies | 0 | 0 | 0 | 0 | 0 | 0 |
| Shares | –74,656 | –149,916 | –66,219 | –108,381 | –8,437 | –41,535 |
| Equity funds | –15,333 | –27,881 | –12,064 | –23,792 | –3,268 | –4,089 |
| Debenture bonds not capital-guaranteed | –14,403 | –19,994 | –19,994 | –17,471 | 5,591 | –2,523 |
| Other variable-yield securities | –7,300 | –5,350 | –4,900 | –3,400 | –2,400 | –1,950 |
| Participating interests and other investments | –54,287 | –53,964 | –51,353 | –51,500 | –2,934 | –2,464 |
| Fixed-interest securities | –247,182 | –629,291 | –221,355 | –239,825 | –25,827 | –389,466 |
| Total | –413,161 | –886,395 | –375,884 | –444,369 | –37,276 | –442,027 |
| 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 | 31.12.2012 | 31.12.2012 | 31.12.2012 | 31.12.2012 |
| Shares in affiliated companies | 0 | 0 | 0 | 0 |
| Shares | 75,260 | –8,437 | 83,697 | 0 |
| Equity funds | 12,548 | –3,268 | 15,816 | 0 |
| Debenture bonds not capital-guaranteed | 5,591 | 5,591 | 0 | 0 |
| Other variable-yield securities | –1,950 | –2,400 | 450 | 0 |
| Participating interests and other investments | –323 | –2,934 | 2,612 | 0 |
| Fixed-interest securities | 382,109 | –25,827 | 407,936 | 0 |
| Total | 473,235 | –37,276 | 510,511 | 0 |
| Change in equity | Allocation not affecting income |
disposals affecting income | Withdrawal1) due to | Change in unrealised gains/losses |
||
|---|---|---|---|---|---|---|
| Figures in € thousand | 31.12.2012 31.12.2011 31.12.2012 31.12.2011 31.12.2012 31.12.2011 | |||||
| Other securities - available for sale2) | ||||||
| Gross | 1,234,070 | –10,259 | –100,122 | –61,289 | 1,133,947 | –71,547 |
| Deferred tax | –168,733 | 18,984 | 10,948 | 7,757 | –157,785 | 26,741 |
| Deferred profit participation | –652,986 | –35,391 | 72,291 | 41,774 | –580,695 | 6,382 |
| Minority interests | –28,038 | –5,366 | –7,238 | 1,638 | –35,276 | –3,728 |
| Net | 384,312 | –32,032 | –24,121 | –10,120 | 360,191 | –42,152 |
1) Withdrawals affecting the income statement due to disposals and impairments.
2) Including reclassified securities.
The table below depicts the financial instruments for which subsequent valuation is performed at the current market value. These are divided into levels 1 to 3, depending on the extent to which the current market value can be observed.
Level 1 valuations at current market value are ones that result from listed prices (unadjusted) on the active markets for identical financial assets and liabilities.
Level 2 valuations at current market value are those based on parameters that do not correspond to listed prices for assets and liabilities as in level 1 (data) and are derived either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 valuations at current market value are those arising from models using parameters for the valuation of assets and liabilities that are not based on observable market data (unobservable prices, assumptions).
| 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 | 2,343,386 | 598,483 | 14,582,524 |
| 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 | 313,330 | 0 | 314,471 |
| 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 | 3,037,247 | 603,143 | 15,450,145 |
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. No other level 3 assets existed as at 31 December 2012.
| Level 3 Investments at fair value | Securities available for sale |
At fair value through profit |
Derivative financial |
Total |
|---|---|---|---|---|
| Figures in € thousand | and loss | instruments | ||
| 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 | 31.12.2012 | 31.12.2011 | 31.12.2012 | 31.12.2011 |
| Infinite | 48,577 | 95,838 | 40,636 | 71,265 |
| Up to 1 year | 1,947,601 | 1,752,823 | 1,815,336 | 1,583,690 |
| more than 1 year up to 5 years | 4,329,458 | 4,164,715 | 4,405,487 | 3,940,069 |
| More than 5 years up to 10 years | 4,541,607 | 4,694,029 | 4,857,911 | 4,414,907 |
| More than 10 years | 2,275,454 | 1,968,691 | 2,314,348 | 1,479,056 |
| Total | 13,142,697 | 12,676,097 | 13,433,719 | 11,488,987 |
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 |
31.12.2012 |
|---|---|
| Fixed-interest securities | |
| Rating AAA | 3,703,112 |
| Rating AA | 2,003,024 |
| Rating A | 2,479,606 |
| Rating BBB | 3,390,174 |
| Rating < BBB | 1,454,820 |
| Not assigned | 402,982 |
| Rating total of fixed-interest securities | 13,433,719 |
| Issuer countries |
| Share securities | |
|---|---|
| IE, NL, UK, US | 326,251 |
| AT, BE, CH, DE, DK, FR, IT | 468,138 |
| ES, FI, NO, SE | 11,371 |
| Remaining EU | 74,574 |
| other countries | 130,969 |
| Issuer countries total of share securities | 1,011,303 |
| Other shareholdings | 126,909 |
| Total variable-yield securities | 1,138,211 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Market values | ||
| Equity price risk | –2,216 | 2,097 |
| Interest rate risk | 0 | 0 |
| Currency risk | 31,600 | –22,057 |
| Structured risk | 25,351 | 21,861 |
| Total | 54,736 | 1,900 |
| Structured risk - of which: | ||
| Equity price risk | 10,970 | 7,022 |
| Interest rate risk | –5,896 | 1,258 |
| Currency risk | 13,570 | 13,581 |
| Credit risk | 0 | 0 |
| Commodity risk | 6,708 | 0 |
| Balance sheet values | ||
| Investments | 62,206 | 28,498 |
| Financial liabilities | –7,471 | –26,598 |
| Figures in € thousand | Book values | |
|---|---|---|
| 31.12.2012 | 31.12.2011 | |
| Loans to affiliated companies | 1,421 | 121 |
| Loans to participating interests | 552 | 552 |
| Mortgage loans | 51,399 | 77,042 |
| Loans and advance payments on policies | 13,011 | 13,697 |
| Other loans | 112,436 | 619,015 |
| Registered bonds | 4,394 | 389,918 |
| Reclassified bonds | 906,435 | 1,089,093 |
| Total | 1,089,649 | 2,189,439 |
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 |
2012 | 2011 | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|
| Book value as at 31.12. | 906,435 | 1,089,093 | 1,379,806 | 1,796,941 | 2,102,704 |
| Market value as at 31.12. | 928,162 | 981,394 | 1,345,580 | 1,732,644 | 1,889,108 |
| Change of current market value | 129,426 | –73,987 | 30,586 | 149,299 | –213,596 |
| Amortisation income/expense | 348 | 332 | 473 | 5,917 | –61 |
| Impairment | 0 | –25 | –8,043 | 0 | 0 |
| Contractual remaining term | Book values | |
|---|---|---|
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
| Infinite | 15,592 | 5,797 |
| Up to 1 year | 470,866 | 655,397 |
| more than 1 year up to 5 years | 325,659 | 524,064 |
| More than 5 years up to 10 years | 174,812 | 781,837 |
| More than 10 years | 102,720 | 222,344 |
| Total | 1,089,649 | 2,189,439 |
| Market values | |||
|---|---|---|---|
| Figures in € thousand | 31.12.2012 | 31.12.2011 | |
| Loans to affiliated companies | 1,421 | 121 | |
| Loans to participating interests | 552 | 552 | |
| Mortgage loans | 51,399 | 77,042 | |
| Loans and advance payments on policies | 13,011 | 13,697 | |
| Other loans | 112,436 | 621,135 | |
| Registered bonds | 4,394 | 389,918 | |
| Reclassified bonds | 928,162 | 981,394 | |
| Total | 1,111,376 | 2,083,860 |
| Contractual remaining term | Market values | |
|---|---|---|
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
| Infinite | 15,592 | 5,797 |
| Up to 1 year | 442,338 | 556,906 |
| more than 1 year up to 5 years | 348,756 | 536,068 |
| More than 5 years up to 10 years | 193,334 | 766,164 |
| More than 10 years | 111,355 | 218,926 |
| Total | 1,111,376 | 2,083,860 |
| Impairment Figures in € thousand |
31.12.2012 | 31.12.2011 |
| Change in impairment for current year | 774 | 5,288 |
| 1,318,972 | 1,163,790 |
|---|---|
| 129,755 | 140,657 |
| 1,189,217 | 1,023,133 |
| 31.12.2012 | 31.12.2011 |
of which reallocation affecting income 774 5,288
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| I. Reinsurance receivables | ||
| 1. Accounts receivables under reinsurance operations | 42,623 | 58,825 |
| 42,623 | 58,825 | |
| II. Other receivables | ||
| Receivables under the insurance business | ||
| 1. from policyholders | 303,466 | 271,784 |
| 2. from intermediaries | 73,186 | 83,461 |
| 3. from insurance companies | 19,171 | 15,227 |
| 395,824 | 370,472 | |
| Other receivables | ||
| Accrued interest and rent | 219,255 | 241,553 |
| Other tax refund claims | 57,113 | 50,976 |
| Receivables due from employees | 3,653 | 4,079 |
| Other receivables | 169,342 | 203,687 |
| 449,363 | 500,295 | |
| Total other receivables | 845,186 | 870,767 |
| Subtotal | 887,810 | 929,592 |
| of which receivables with a remaining term of | ||
| Up to 1 year | 849,324 | 904,334 |
| more than 1 year | 38,486 | 25,257 |
| 887,810 | 929,592 | |
| of which receivables with values not yet adjusted | ||
| up to 3 months overdue | 15,051 | 47,240 |
| more than 3 months overdue | 5,257 | 12,657 |
| III. Other assets | ||
| Accruals | 48,369 | 58,404 |
| 48,369 | 58,404 | |
| Total receivables incl. receivables under insurance business | 936,179 | 987,996 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Receivables from income tax | 54,561 | 51,156 |
| of which receivables with a remaining term of | ||
| Up to 1 year | 52,496 | 51,156 |
| more than 1 year | 2,065 | 0 |
| Cause of origin Figures in € thousand |
31.12.2012 | 31.12.2011 |
|---|---|---|
| Actuarial items | 2,063 | 6,194 |
| Social capital | 69,504 | 61,345 |
| Investments | 7,536 | 60,516 |
| Loss carried forward | 33,254 | 52,737 |
| other | 21,147 | 25,374 |
| Total | 133,504 | 206,166 |
| of which not affecting income | 31,566 | 13,548 |
For losses carried forward in the amount of €32,973 thousand, the deferred tax of €5,978 thousand was not capitalised because utilisation will not be possible in the foreseeable future.
| 31.12.2012 | 31.12.2011 | |
|---|---|---|
| Number of authorised and issued no-par shares | 214,247,900 | 142,985,217 |
| of which fully paid up | 214,247,900 | 142,985,217 |
The subscribed capital and capital reserves correspond to values from the individual financial statements of UNIQA Versicherungen AG.
According to a resolution made by the Annual General Meeting on 31 May 2010, the Management Board is authorised, with the approval of the Supervisory Board, to increase the share capital by a total of up to €71,492,608 through the issue of up to 71,492,608 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 2015.
Partial use was made of this authorisation during the financial year, whereby the share capital was increased to €190,604,265 by means 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 planned re-IPO, Austria Versicherungsverein auf Gegenseitigkeit Privatstiftung (Austria Privatstiftung) and Collegialität contributed their shareholdings in UNIQA Personenversicherung AG to UNIQA Versicherungen 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.
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.
On 21 September 2010 the Management Board made use of its authorisation in accordance with the decision of the 11th Annual General Meeting on 31 May 2010 and decided on a share repurchase programme. The Supervisory Board of the company confirmed the decision of the Management Board in its meeting on 21 September 2010. According to which the Management Board is authorised to purchase up to 14,298,521 notional no-par shares made out to the bearer. The programme for repurchasing shares entered into effect on 19 November 2010. During the financial year, none of the company's own shares were acquired through the stock exchange.
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 2012, the adjusted equity amounted to €2,433,546 thousand (2011: €1,404,065 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 €1,132,671 thousand (2011: €1,145,813 thousand), the statutory requirements were exceeded by €1,300,875 thousand (2011: €258,252 thousand), resulting in a coverage rate of 214.9 per cent (2011: 122.5 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 €142,564 thousand (2011: €277,882 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).
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Adjusted equity without deduction acc. to Section 86h paragraph 5 of the Insurance | ||
| Supervision Act | 2,433,546 | 1,404,065 |
| Adjusted equity with deduction acc. to Section 86h paragraph 5 of the Insurance | ||
| Supervision Act | 2,290,981 | 1,126,184 |
At the reporting date, own shares are accounted for as follows:
| 31.12.2012 | 31.12.2011 | |
|---|---|---|
| Shares held by: | ||
| UNIQA Versicherungen AG | ||
| Acquisition costs in € 000 | 10,857 | 10,857 |
| Number of shares | 819,650 | 819,650 |
| Share of subscribed capital in % | 0.38 | 0.57 |
| Earnings per share | 2012 | 2011 |
|---|---|---|
| Consolidated profit Figures in € thousand | 130,225 | –245,614 |
| of which accounts for ordinary shares Figures in € thousand | 130,225 | –245,614 |
| Own shares as at 31st. Dec. | 819,650 | 819,650 |
| Average number of shares in circulation | 169,599,813 | 142,165,567 |
| Earnings per share (in €)1) | 0.77 | –1.73 |
| Dividend per share2) | 0.25 | 0.00 |
| Dividend payment Figures in € thousand2) | 53,357 | 0 |
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.
| Change in the tax amounts included in the equity without affecting income Figures in € thousand |
31.12.2012 |
|---|---|
| Effective tax | 0 |
| Deferred tax | –132,671 |
| Total | –132,671 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| In revaluation reserve | 1,739 | –15,253 |
| In actuarial gains and losses on defined benefit plans | –1 | –5,731 |
| In balance sheet profit | 1,440 | 112,620 |
| In other equity | 19,093 | 128,072 |
| Total | 22,272 | 219,708 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Supplementary capital | 450,000 | 575,000 |
Partial debentures with a nominal value of €325,000 thousand for paid up supplementary capital were issued by Raiffeisen Versicherung AG in December 2002 and by UNIQA Versicherungen AG, UNIQA Personenversicherung AG and UNIQA Sachversicherung AG in July 2003 according to Section 73c paragraph 2 of the Austrian Insurance Supervisory Act. The partial debentures are valid for an unlimited time period. An ordinary or extraordinary notice of redemption to the issuer is not possible for at least five years. Subject to coverage in the annual net profit before the issuer's movements in reserves, the interest to July 2013 will be 5.36 per cent, except in the case of Raiffeisen Versicherung AG, where the interest to December 2012 will be 5.7 per cent, plus a bonus interest payment of between 0.2 and 0.4 per cent depending on sales profitability and the increase in premiums in comparison to the whole market.
In December 2006, UNIQA Versicherungen 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 Versicherungen 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 of 2007 UNIQA Versicherungen 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 Versicherungen 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.
Partial debentures issued by Raiffeisen Versicherung in December 2002 with a nominal value of €125,000 thousand for paid up supplementary capital were repaid in December 2012.
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Property and casualty | ||
| Gross | 596,152 | 596,506 |
| Reinsurers' share | –9,250 | –15,352 |
| 586,902 | 581,154 | |
| Health | ||
| Gross | 21,014 | 19,528 |
| Reinsurers' share | –619 | –3,190 |
| 20,395 | 16,338 | |
| In the consolidated financial statements | ||
| Gross | 617,165 | 616,034 |
| Reinsurers' share | –9,869 | –18,542 |
| Total (fully consolidated values) | 607,297 | 597,493 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Property and casualty | ||
| Gross | 12,310 | 36,264 |
| Reinsurers' share | –371 | –390 |
| 11,939 | 35,874 | |
| Health | ||
| Gross | 2,219,667 | 2,694,604 |
| Reinsurers' share | –1,091 | –1,204 |
| 2,218,575 | 2,693,400 | |
| Life | ||
| Gross | 13,926,212 | 13,975,382 |
| Reinsurers' share | –432,917 | –454,241 |
| 13,493,296 | 13,521,141 | |
| In the consolidated financial statements | ||
| Gross | 16,158,189 | 16,706,249 |
| Reinsurers' share | –434,379 | –455,835 |
| Total (fully consolidated values) | 15,723,810 | 16,250,414 |
| For Figures in percent |
Health insurance acc. to SFAS 60 |
Life insurance acc. to SFAS 120 |
|---|---|---|
| 2012 | ||
| For actuarial provision | 3.50 –5.50 | 1.75–4.00 |
| For deferred acquisition costs | 3.50 –5.50 | 3.76 |
| 2011 | ||
| For actuarial provision | 4.50 or 5.50 | 1.75–4.00 |
| For deferred acquisition costs | 4.50 or 5.50 | 3.88 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Property and casualty | ||
| Gross | 2,056,950 | 2,157,714 |
| Reinsurers' share | –148,311 | –193,749 |
| 1,908,640 | 1,963,965 | |
| Health | ||
| Gross | 168,349 | 177,169 |
| Reinsurers' share | –27 | –30 |
| 168,322 | 177,139 | |
| Life | ||
| Gross | 140,542 | 121,645 |
| Reinsurers' share | –11,425 | –13,493 |
| 129,117 | 108,152 | |
| In the consolidated financial statements | ||
| Gross | 2,365,841 | 2,456,528 |
| Reinsurers' share | –159,763 | –207,271 |
| Total (fully consolidated values) | 2,206,078 | 2,249,257 |
The provisions for outstanding claims developed in the property and casualty insurance as follows:
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| 1. Provisions for outstanding claims as at 1 Jan. | ||
| a) Gross | 2,157,714 | 2,095,287 |
| b) Reinsurers' share | –193,749 | –223,336 |
| c) Retention | 1,963,965 | 1,871,952 |
| 2. Plus (retained) claims expenditures | ||
| a) Losses of the current year | 1,494,954 | 1,703,383 |
| b) Losses of the previous year | –78,697 | –57,977 |
| c) Total | 1,416,257 | 1,645,405 |
| 3. Less (retained) losses paid | ||
| a) Losses of the current year | –756,385 | –883,040 |
| b) Losses of the previous year | –547,151 | –649,498 |
| c) Total | –1,303,536 | –1,532,538 |
| 4. Foreign currency translation | 14,507 | –22,930 |
| 5. Change in consolidation scope | –182,674 | 0 |
| 6. Other changes | 121 | 2,077 |
| 7. Provisions for outstanding claims as at 31 Dec. | ||
| a) Gross | 2,056,950 | 2,157,714 |
| b) Reinsurers' share | –148,311 | –193,749 |
| c) Retention | 1,908,640 | 1,963,965 |
| Claims payments Figures in € thousand |
2007 | 2008 | 2009 | 2010 | 2011 | 2012 | Total |
|---|---|---|---|---|---|---|---|
| Financial year | 606,966 | 697,872 | 758,101 | 774,508 | 738,931 | 754,017 | |
| 1 year later | 946,570 1,067,118 1,152,347 1,156,966 1,103,798 | ||||||
| 2 years later | 1,031,938 1,161,407 1,255,519 1,250,176 | ||||||
| 3 years later | 1,076,067 1,208,216 1,315,780 | ||||||
| 4 years later | 1,110,870 1,234,209 | ||||||
| 5 years later | 1,129,142 | ||||||
| Accumulated payments | 1,129,142 1,234,209 1,315,780 1,250,176 1,103,798 | 754,017 | |||||
| Estimated final claims payments | 1,204,879 1,320,339 1,438,683 1,430,396 1,403,953 1,502,283 | ||||||
| Current balance sheet reserve | 75,737 | 86,130 | 122,903 | 180,219 | 300,155 | 748,266 1,513,411 | |
| Balance sheet reserve | |||||||
| for the claims years 2005 and before | 394,713 | ||||||
| 1,908,124 | |||||||
| Plus other reserve components (internal claims regulation costs, etc.) |
148,826 | ||||||
| Provisions for outstanding claims (gross) as at 31.12.2011 |
2,056,950 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Property and casualty | ||
| Gross | 32,873 | 39,302 |
| Reinsurers' share | 0 | –4 |
| 32,873 | 39,298 | |
| Health | ||
| Gross | 54,225 | 80,759 |
| Reinsurers' share | 0 | 0 |
| 54,225 | 80,759 | |
| Life | ||
| Gross | 513,698 | –60,742 |
| Reinsurers' share | 0 | 0 |
| 513,698 | –60,742 | |
| In the consolidated financial statements | ||
| Gross | 600,796 | 59,319 |
| Reinsurers' share | 0 | –4 |
| Total (fully consolidated values) | 600,796 | 59,315 |
| of which profit-unrelated (retention) | 44,578 | 51,529 |
| of which profit-related (retention) | 556,218 | 7,786 |
| Gross Figures in € thousand |
31.12.2012 | 31.12.2011 |
|---|---|---|
| a) Provision for profit-unrelated premium refunds | 44,578 | 51,533 |
| of which property and casualty insurance | 31,893 | 32,185 |
| of which health insurance | 10,298 | 17,264 |
| of which life insurance | 2,388 | 2,084 |
| b) Provision for profit-related premium refunds and /or policyholder profit | ||
| participation | 198,857 | 185,944 |
| of which property and casualty insurance | 981 | 7,117 |
| of which health insurance | 43,927 | 55,242 |
| of which life insurance | 153,949 | 123,585 |
| Deferred profit participation | 357,361 | –178,158 |
| of which health insurance | 0 | 8,253 |
| of which life insurance | 357,361 | –186,411 |
| Total (fully consolidated values) | 600,796 | 59,319 |
| Gross Figures in € thousand |
2012 | 2011 |
| a) Provision for profit-unrelated premium refunds, profit-related premium refunds and policyholder profit participation |
||
| As at 1.1. | 237,477 | 266,934 |
| Changes due to: | ||
| Other changes | 5,958 | –29,457 |
| As at 31.12. | 243,435 | 237,477 |
| b) Deferred profit participation | ||
| As at 1.1. | –178,158 | –47,551 |
| Changes due to: | ||
| fluctuation in value, securities available for sale | 589,950 | –6,645 |
| actuarial gains and losses on defined benefit plans | –21,084 | –451 |
| revaluations affecting income | –33,347 | –123,511 |
| As at 31.12. | 357,361 | –178,158 |
The deferred profit participation was an asset item in 2011. Based on the business model used in life insurance and the management rules applied in the Group, this asset item will be reduced over the term of the policy. The appropriateness of the entire technical liability will also be regularly checked under a discounted cash flow model ("liability adequacy test").
The large change that took place in the previous year due to the revaluations affecting income resulted mainly from capital gains that were realised in accordance with local law, and were then eliminated in the Group as a temporary result.
| 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 | |||||||
| As at 31.12.2011 | 596,506 | 36,264 | 2,157,714 | 32,185 | 7,117 | 26,047 | 2,855,832 |
| Exchange rate differences | 16,086 | 685 | 15,517 | 80 | 12 | 436 | 32,816 |
| Change in consolidation scope | –81,417 | –23,609 | –214,762 | –2,462 | –6,271 | –3,879 | –332,400 |
| Portfolio changes | 1,604 | 0 | 1,604 | ||||
| Additions | 743 | 2,246 | 2,592 | 31,584 | 37,165 | ||
| Disposals | –1,773 | –156 | –2,470 | –31,588 | –35,988 | ||
| Premiums written | 2,058,679 | 2,058,679 | |||||
| Premiums earned | –1,995,305 | –1,995,305 | |||||
| Claims in reporting year | 1,527,103 | 1,527,103 | |||||
| Claims payments in reporting year | –764,922 | –764,922 | |||||
| Change in claims from previous years | –69,247 | –69,247 | |||||
| Claims payments in previous years | –594,452 | –594,452 | |||||
| As at 31.12.2012 | 596,152 | 12,310 | 2,056,950 | 31,893 | 981 | 22,600 | 2,720,885 |
| Health | |||||||
| As at 31.12.2011 | 19,528 | 2,694,604 | 177,169 | 17,264 | 63,495 | 574 | 2,972,634 |
| Exchange rate differences | 29 | 62 | 146 | 20 | 0 | 2 | 258 |
| Change in consolidation scope | –2,521 | –616,270 | –21,544 | –4,728 | –23,058 | –668,121 | |
| Portfolio changes | 170 | 2,404 | –6 | 2,569 | |||
| Additions | 149,804 | 1,405 | 6,968 | 315 | 158,492 | ||
| Disposals | –8,533 | –3,662 | –3,478 | 0 | –15,673 | ||
| Premiums written | 872,715 | 872,715 | |||||
| Premiums earned | –868,906 | –868,906 | |||||
| Claims in reporting year | 654,152 | 654,152 | |||||
| Claims payments in reporting year | –493,800 | –493,800 | |||||
| Change in claims from previous years | –11,242 | –11,242 | |||||
| Claims payments in previous years | –138,936 | –138,936 | |||||
| As at 31.12.2012 | 21,014 | 2,219,667 | 168,349 | 10,298 | 43,927 | 885 | 2,464,140 |
| Life | |||||||
| As at 31.12.2011 | 0 | 13,975,382 | 121,645 | 2,084 | –62,826 | 23,362 | 14,059,646 |
| Exchange rate differences | 12,387 | 658 | 17 | 27 | 233 | 13,321 | |
| Change in consolidation scope | –60,789 | –3,810 | –628 | –65,227 | |||
| Portfolio changes | 48,019 | 10 | 0 | 1,559 | 49,588 | ||
| Additions | 103,051 | 290 | 644,086 | 4,115 | 751,541 | ||
| Disposals | –151,837 | –3 | –69,348 | –3,824 | –225,013 | ||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims in reporting year | 1,706,850 | 1,706,850 |
| As at 31.12.2012 | 0 | 13,926,212 | 140,542 | 2,388 | 511,310 | 25,444 | 14,605,896 |
|---|---|---|---|---|---|---|---|
| Claims payments in previous years | –122,416 | –122,416 | |||||
| Change in claims from previous years | 48,592 | 48,592 | |||||
| Claims payments in reporting year | –1,610,987 | –1,610,987 | |||||
| Claims in reporting year | 1,706,850 | 1,706,850 |
| Group total | |||||||
|---|---|---|---|---|---|---|---|
| As at 31.12.2011 | 616,034 | 16,706,249 | 2,456,527 | 51,533 | 7,786 | 49,982 | 19,888,111 |
| Exchange rate differences | 16,114 | 13,134 | 16,320 | 117 | 40 | 671 | 46,396 |
| Change in consolidation scope | –83,939 | –700,668 | –240,116 | –7,190 | –29,957 | –3,879 | –1,065,749 |
| Portfolio changes | 1,774 | 48,019 | 2,414 | 0 | 1,554 | 53,761 | |
| Additions | 253,598 | 3,941 | 653,646 | 36,015 | 947,199 | ||
| Disposals | –162,143 | –3,822 | –75,296 | –35,413 | –276,674 | ||
| Premiums written | 2,931,394 | 2,931,394 | |||||
| Premiums earned | –2,864,212 | –2,864,212 | |||||
| Claims in reporting year | 3,888,106 | 3,888,106 | |||||
| Claims payments in reporting year | –2,869,709 | –2,869,709 | |||||
| Change in claims from previous years | –31,897 | –31,897 | |||||
| Claims payments in previous years | –855,804 | –855,804 | |||||
| As at 31.12.2012 | 617,165 | 16,158,189 | 2,365,841 | 44,578 | 556,218 | 48,929 | 19,790,921 |
| 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 |
Other actuarial provisions |
Group total |
|---|---|---|---|---|---|---|---|
| Figures in € thousand | participation | ||||||
| Property and casualty | |||||||
| As at 31.12.2011 | 15,352 | 390 | 193,749 | 4 | 0 | 2,648 | 212,143 |
| Exchange rate differences | –41 | 0 | 1,009 | 46 | 1,014 | ||
| Change in consolidation scope | –392 | –32,088 | –15 | –8 | –32,503 | ||
| Portfolio changes | 151 | 16 | 167 | ||||
| Additions | 0 | 11 | 25 | 36 | |||
| Disposals | –19 | 0 | –756 | –775 | |||
| Premiums written | 117,321 | 117,321 | |||||
| Premiums earned | –123,140 | –123,140 | |||||
| Claims in reporting year | 32,012 | 32,012 | |||||
| Claims payments in reporting year | –8,537 | –8,537 | |||||
| Change in claims from previous years | 9,451 | 9,451 | |||||
| Claims payments in previous years | –47,301 | –47,301 | |||||
| As at 31.12.2012 | 9,250 | 371 | 148,311 | 0 | 0 | 1,955 | 159,887 |
| Health | |||||||
| As at 31.12.2011 | 3,190 | 1,204 | 30 | 0 | 0 | 0 | 4,424 |
| Exchange rate differences | –74 | 2 | –72 | ||||
| Change in consolidation scope | –39 | –39 | |||||
| Portfolio changes | 0 | ||||||
| Additions | 0 | ||||||
| Disposals | –113 | –113 | |||||
| Premiums written | 2,503 | 2,503 | |||||
| Premiums earned | –4,960 | –4,960 | |||||
| Claims in reporting year | 2 | 2 | |||||
| Claims payments in reporting year | –3 | –3 | |||||
| Change in claims from previous years | –1 | –1 | |||||
| Claims payments in previous years | –2 | –2 | |||||
| As at 31.12.2012 | 619 | 1,091 | 27 | 0 | 0 | 0 | 1,737 |
| Life | |||||||
| As at 31.12.2011 | 0 | 454,241 | 13,493 | 0 | 0 | –154 | 467,579 |
| Exchange rate differences | 17 | 14 | 0 | 31 | |||
| Change in consolidation scope | –7,567 | –2,896 | –10,464 | ||||
| Portfolio changes | –14,641 | 586 | –14,056 | ||||
| Additions | 2,946 | 35 | 2,982 | ||||
| Disposals | –2,079 | 0 | 0 | –2,079 | |||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims in reporting year | 20,322 | 20,322 | |||||
| Claims payments in reporting year | –16,662 | –16,662 | |||||
| Change in claims from previous years | 173 | 173 | |||||
| Claims payments in previous years | –3,603 | –3,603 | |||||
| As at 31.12.2012 | 0 | 432,917 | 11,425 | 0 | 0 | –119 | 444,223 |
| Group total | |||||||
| As at 31.12.2011 | 18,542 | 455,835 | 207,271 | 4 | 0 | 2,494 | 684,145 |
| Exchange rate differences | –115 | 17 | 1,025 | 0 | 46 | 973 | |
| Change in consolidation scope | –432 | –7,567 | –34,984 | –15 | –8 | –43,006 | |
| Portfolio changes | 151 | –14,641 | 601 | –13,889 | |||
| Additions | 2,946 | 11 | 60 | 3,017 | |||
| Disposals | –2,210 | 0 | –756 | –2,967 | |||
| Premiums written | 119,823 | 119,823 | |||||
| Premiums earned | –128,101 | –128,101 | |||||
| Claims in reporting year | 52,336 | 52,336 | |||||
| Claims payments in reporting year | –25,203 | –25,203 | |||||
| Change in claims from previous years | 9,623 | 9,623 | |||||
| Claims payments in previous years | –50,906 | –50,906 | |||||
As at 31.12.2012 9,869 434,379 159,763 0 0 1,836 605,847
| Retention Figures in € thousand |
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 |
|---|---|---|---|---|---|---|---|
| Property and casualty | |||||||
| As at 31.12.2011 | 581,154 | 35,874 | 1,963,965 | 32,181 | 7,117 | 23,398 | 2,643,689 |
| Exchange rate differences | 16,128 | 685 | 14,507 | 80 | 12 | 390 | 31,803 |
| Change in consolidation scope | –81,025 | –23,609 | –182,674 | –2,447 | –6,271 | –3,871 | –299,897 |
| Portfolio changes | 1,453 | –16 | 0 | 0 | 1,437 | ||
| Additions | 743 | 2,235 | 2,592 | 31,560 | 37,129 | ||
| Disposals | –1,754 | –156 | –2,470 | –30,832 | –35,213 | ||
| Premiums written | 1,941,358 | 1,941,358 | |||||
| Premiums earned | –1,872,165 | –1,872,165 | |||||
| Claims in reporting year | 1,495,091 | 1,495,091 | |||||
| Claims payments in reporting year | –756,385 | –756,385 | |||||
| Change in claims from previous years | –78,697 | –78,697 | |||||
| Claims payments in previous years | –547,151 | –547,151 | |||||
| As at 31.12.2012 | 586,903 | 11,939 | 1,908,640 | 31,893 | 981 | 20,645 | 2,560,999 |
| Health | |||||||
| As at 31.12.2011 | 16,338 | 2,693,400 | 177,139 | 17,264 | 63,495 | 574 | 2,968,210 |
| Exchange rate differences | 102 | 62 | 144 | 20 | 0 | 2 | 330 |
| Change in consolidation scope | –2,482 | –616,270 | –21,544 | –4,728 | –23,058 | –668,082 | |
| Portfolio changes | 170 | 2,404 | 0 | 0 | –6 | 2,569 | |
| Additions | 149,804 | 1,405 | 6,968 | 315 | 158,492 | ||
| Disposals | –8,420 | –3,662 | –3,478 | 0 | –15,560 | ||
| Premiums written | 870,212 | 870,212 | |||||
| Premiums earned | –863,946 | –863,946 | |||||
| Claims in reporting year | 654,150 | 654,150 | |||||
| Claims payments in reporting year | –493,797 | –493,797 | |||||
| Change in claims from previous years | –11,242 | –11,242 | |||||
| Claims payments in previous years | –138,934 | –138,934 | |||||
| As at 31.12.2012 | 20,395 | 2,218,575 | 168,322 | 10,298 | 43,927 | 885 | 2,462,403 |
| Life | |||||||
| As at 31.12.2011 | 0 | 13,521,141 | 108,152 | 2,084 | –62,826 | 23,516 | 13,592,067 |
| Exchange rate differences | 12,369 | 644 | 17 | 27 | 233 | 13,290 | |
| Change in consolidation scope | –53,222 | –914 | 0 | –628 | –54,764 | ||
| Portfolio changes | 62,660 | –576 | 0 | 0 | 1,559 | 63,643 | |
| Additions | 100,105 | 290 | 644,086 | 4,079 | 748,560 | ||
| Disposals | –149,758 | –3 | –69,348 | –3,824 | –222,934 | ||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims in reporting year | 1,686,528 | 1,686,528 | |||||
| Claims payments in reporting year | –1,594,325 | –1,594,325 | |||||
| Change in claims from previous years | 48,419 | 48,419 | |||||
| Claims payments in previous years | –118,813 | –118,813 | |||||
| As at 31.12.2012 | 0 | 13,493,296 | 129,116 | 2,388 | 511,310 | 25,563 | 14,161,673 |
| Group total As at 31.12.2011 |
597,493 | 16,250,414 | 2,249,257 | 51,529 | 7,786 | 47,488 | 19,203,966 |
| Exchange rate differences Change in consolidation scope |
16,230 –83,507 |
13,117 –693,100 |
15,295 –205,132 |
117 –7,175 |
40 –29,957 |
625 –3,871 |
45,423 –1,022,742 |
| Portfolio changes | 1,623 | 62,660 | 1,813 | 0 | 0 | 1,554 | 67,649 |
| Additions | 250,652 | 3,929 | 653,646 | 35,954 | 944,181 | ||
| Disposals | –159,933 | –3,822 | –75,296 | –34,656 | –273,707 | ||
| Premiums written | 2,811,570 | 2,811,571 | |||||
| Premiums earned | –2,736,111 | –2,736,111 | |||||
| Claims in reporting year | 3,835,770 | 3,835,770 | |||||
| Claims payments in reporting year | –2,844,506 | –2,844,506 | |||||
| Change in claims from previous years | –41,520 | –41,520 | |||||
| Claims payments in previous years | –804,898 | –804,898 | |||||
| As at 31.12.2012 | 607,296 | 15,723,810 | 2,206,078 | 44,578 | 556,218 | 47,093 | 19,185,074 |
| 31.12.2012 | 31.12.2011 |
|---|---|
| 4,983,029 | 4,318,331 |
| –408,818 | –405,513 |
| 4,574,212 | 3,912,818 |
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 | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Loan liabilities | 27,494 | 47,114 |
| Up to 1 year | 2,690 | 3,158 |
| more than 1 year up to 5 years | 9,088 | 8,259 |
| more than 5 years | 15,716 | 35,697 |
| Total | 27,494 | 47,114 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Provisions for pension | 365,177 | 374,990 |
| Provision for severance payments | 201,443 | 218,029 |
| Total | 566,620 | 593,019 |
| Figures in € thousand | 2012 | 2011 |
| As at 1.1. | 593,019 | 524,376 |
| Change in consolidation scope | –123,915 | 0 |
| Currency translation changes | 25 | –39 |
| Withdrawals for pension payments | –79,740 | –66,580 |
| Expenditure in the financial year | 44,778 | 118,179 |
| Actuarial profit and loss not affecting income | 132,453 | 17,083 |
| As at 31.12. | 566,620 | 593,019 |
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. In 2011, €31,092 thousand was transferred.
The UNIQA Group's repositioning led to an expected reduction of staff, which is covered by provisions for social capital amounting to €49,147 thousand (2011: €75,000 thousand).
Calculation factors applied
| Figures in percent | |||||
|---|---|---|---|---|---|
| 2012 | |||||
| Technical rate of interest | 3.25% | ||||
| Valorisation of wages and salaries | 3.00% | ||||
| Valorisation of pensions | 2.00% | ||||
| Employee turnover rate | dependent on years of service | ||||
| Accounting principles | AVÖ 2008 P – Pagler & Pagler / employees | ||||
| 2011 | |||||
| Technical rate of interest | 4.75% | ||||
| Valorisation of wages and salaries | 3.00% | ||||
| Valorisation of pensions | 2.00% | ||||
| Employee turnover rate | dependent on years of service | ||||
| Accounting principles | AVÖ 2008 P – Pagler & Pagler / employees | ||||
| Specification of pension expenditures for pensions and similar commitments included in the income statement Figures in € thousand |
31.12.2012 | 31.12.2011 | |||
| Current service cost | 23,917 | 92,261 | |||
| Interest cost | 20,871 | 25,956 | |||
| Income and expenditures due to budget changes | –10 | –38 | |||
| Total | 44,778 | 118,179 |
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 | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Contributions to company pension funds | 2,257 | 2,011 |
| 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 unconsumed holidays | 21,714 | 31 | –842 | –4,048 | –465 | 0 | 6,820 | 23,209 |
| Provision for anniversary payments | 16,009 | 0 | –1,322 | –595 | –263 | –10 | 1,631 | 15,449 |
| 37,722 | 31 | –2,165 | –4,643 | –728 | –10 | 8,451 | 38,658 | |
| Other personnel provisions | 14,419 | 71 | –5,948 | –5,910 | –520 | 0 | 19,306 | 21,418 |
| Provision for customer relations and marketing | 41,730 | 266 | 0 | –35,477 | –5,133 | 0 | 84,581 | 85,967 |
| Provision for variable components of remuneration | 13,918 | 1 | –2,175 | –11,094 | –650 | 0 | 25,412 | 25,412 |
| Provision for legal and consulting expenses | 8,415 | 54 | –1,324 | –6,138 | 764 | 0 | 6,953 | 8,724 |
| Provision for premium adjustment of insurance | ||||||||
| contracts | 8,172 | 84 | 0 | –3,984 | 0 | 0 | 4,680 | 8,952 |
| Provision for portfolio maintenance commission | 3,146 | 74 | 0 | –208 | 0 | 0 | 895 | 3,907 |
| Other provisions | 67,568 | 186 | –432 | –17,781 | –27,619 | 10 | 134,045 | 155,978 |
| 157,368 | 737 | –9,878 | –80,592 | –33,158 | 10 | 275,872 | 310,358 | |
| Total | 195,090 | 768 | –12,043 | –85,235 | –33,886 | 0 | 284,323 | 349,017 |
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Other provisions1) with a high probability of utilisation | ||
| (more than 90 percent) | ||
| up to 1year | 208,217 | 77,596 |
| more than 1 year up to 5 years | 3,094 | 6,205 |
| more than 5 years | 3,113 | 4,759 |
| 214,423 | 88,560 | |
| Other provisions1) with a lower probability of consumption | ||
| (less than 90 percent) | ||
| up to 1year | 92,740 | 63,660 |
| more than 1 year up to 5 years | 2,183 | 3,952 |
| more than 5 years | 1,012 | 1,196 |
| 95,935 | 68,808 | |
| Total | 310,358 | 157,368 |
1) Excl. unconsumed holidays and anniversary benefits.
Other provisions includes a provision of €60,000 thousand for liabilities in connection with the sale of Mannheimer AG Holding.
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| I. Reinsurance liabilities | ||
| 1. Deposits held under reinsurance business ceded | 836,815 | 860,209 |
| 2. Accounts payable under reinsurance operations | 50,591 | 42,262 |
| 887,405 | 902,472 | |
| II. Other payables | ||
| Liabilities under insurance business | ||
| Liabilities under direct insurance business | ||
| to policyholders | 150,400 | 133,545 |
| to intermediaries | 72,113 | 108,858 |
| to insurance companies | 10,528 | 12,594 |
| 233,041 | 254,997 | |
| Liabilities to credit institutions | 0 | 393 |
| Other liabilities | 282,766 | 316,736 |
| of which for taxes | 49,735 | 63,657 |
| of which for social security | 12,473 | 11,510 |
| of which from fund consolidation | 105,840 | 99,343 |
| Total other liabilities | 515,807 | 572,126 |
| Subtotal | 1,403,212 | 1,474,598 |
| of which liabilities with the remaining term of | ||
| Up to 1 year | 722,818 | 778,562 |
| more than 1 year up to 5 years | 3,778 | 7,911 |
| more than 5 years | 676,616 | 688,125 |
| 1,403,212 | 1,474,598 | |
| III. Other liabilities | ||
| Deferred income | 31,226 | 43,318 |
| Total payables and other liabilities | 1,434,438 | 1,517,916 |
The item "Deferred income" basically comprises the balance of the deferred income regarding the indirect business settlement.
| Figures in € thousand | 31.12.2012 | 31.12.2011 |
|---|---|---|
| Liabilities from income tax | 28,557 | 19,157 |
| of which liabilities with the remaining term of | ||
| Up to 1 year | 15,200 | 3,626 |
| more than 1 year up to 5 years | 13,356 | 15,531 |
| more than 5 years | 0 | 0 |
| Cause of origin Figures in € thousand |
31.12.2012 | 31.12.2011 |
|---|---|---|
| Actuarial items | 162,599 | 200,599 |
| Untaxed reserves | 25,375 | 25,766 |
| Shares in affiliated companies | 28,430 | 28,430 |
| Investments | 104,479 | 1,614 |
| other | 50,023 | 35,329 |
| Total | 370,905 | 291,739 |
| of which not affecting income | 108,108 | –42,581 |
| Direct business Figures in € thousand |
2012 | 2011 |
|---|---|---|
| Property and casualty | 2,480,889 | 2,380,644 |
| Health | 909,147 | 880,080 |
| Life | 1,391,809 | 1,591,874 |
| Total (fully consolidated values) | 4,781,845 | 4,852,598 |
| Of which written in: | ||
| Austria | 3,131,724 | 3,141,299 |
| other member states of the EU and other signatory states of the Treaty on the European | ||
| Economic Area | 1,374,213 | 1,475,203 |
| Indirect business | 2012 | 2011 |
|---|---|---|
| Figures in € thousand Property and casualty |
65,060 | 29,174 |
| Health | 3 | 3 |
| Life | 17,243 | 18,464 |
| Total (fully consolidated values) | 82,306 | 47,640 |
Other countries 275,908 236,097 Total (fully consolidated values) 4,781,845 4,852,598
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| Total (fully consolidated values) | 4,864,151 | 4,900,239 |
| Premiums written in property and casualty insurance Figures in € thousand |
2012 | 2011 |
|---|---|---|
| Direct business | ||
| Fire and business interruption insurance | 238,562 | 220,858 |
| Household insurance | 133,001 | 130,664 |
| Other property insurance | 226,028 | 223,967 |
| Motor TPL insurance | 652,338 | 619,049 |
| Other motor insurance | 492,950 | 482,020 |
| Casualty insurance | 296,605 | 287,385 |
| Liability insurance | 227,037 | 219,663 |
| Legal expenses insurance | 69,404 | 65,390 |
| Marine, aviation and transport insurance | 77,746 | 68,160 |
| Other insurance | 67,219 | 63,488 |
| Total | 2,480,889 | 2,380,644 |
| Indirect business | ||
| Marine, aviation and transport insurance | 160 | 118 |
| Other insurance | 64,900 | 29,056 |
| Total | 65,060 | 29,174 |
| Total direct and indirect business | ||
| (fully consolidated values) | 2,545,949 | 2,409,818 |
| Reinsurance premiums ceded Figures in € thousand |
2012 | 2011 |
| Property and casualty | 128,042 | 116,746 |
| Health | 3,061 | 5,405 |
| Life | 82,401 | 74,757 |
| Total (fully consolidated values) | 213,504 | 196,908 |
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| Property and casualty | 2,394,449 | 2,254,581 |
| Gross | 2,528,286 | 2,376,798 |
| Reinsurers' share | –133,837 | –122,217 |
| Health | 902,954 | 873,857 |
| Gross | 908,558 | 877,514 |
| Reinsurers' share | –5,604 | –3,657 |
| Life | 1,326,505 | 1,536,524 |
| Gross | 1,408,871 | 1,611,272 |
| Reinsurers' share | –82,365 | –74,749 |
| Total (fully consolidated values) | 4,623,909 | 4,664,962 |
| Premiums earned in indirect business Figures in € thousand |
2012 | 2011 |
|---|---|---|
| Posted immediately | 48,259 | 3,122 |
| posted after up to 1 year | 28,329 | 27,285 |
| posted after more than 1 year | 0 | 0 |
| Property and casualty | 76,587 | 30,408 |
| Posted immediately | 3 | 3 |
| posted after up to 1 year | 0 | 0 |
| posted after more than 1 year | 0 | 0 |
| Health | 3 | 3 |
| Posted immediately | 321 | 3,907 |
| posted after up to 1 year | 16,921 | 18,358 |
| posted after more than 1 year | 0 | 0 |
| Life | 17,243 | 22,265 |
| Total (fully consolidated values) | 93,833 | 52,676 |
| Earnings from indirect business Figures in € thousand |
2012 | 2011 |
| Property and casualty | 7,863 | 1,440 |
| Health | –62 | 15 |
| Life | 1,567 | 4,322 |
| Total (fully consolidated values) | 9,368 | 5,777 |
| Total (fully consolidated values) | 35,731 | 29,271 |
|---|---|---|
| Life | 26,873 | 19,387 |
| Health | 8 | 25 |
| Property and casualty | 8,850 | 9,859 |
| Reinsurance commission and profit shares from reinsurance business ceded Figures in € thousand |
2012 | 2011 |
| By segment | Property and casualty | Health | Life | Group | ||||
|---|---|---|---|---|---|---|---|---|
| Figures in € thousand | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| I. Properties held as investments | 5,030 | 7,772 | 9,486 | 3,639 | 38,355 | –8,402 | 52,871 | 3,009 |
| II. Shares in associated companies | 5,331 | –15,897 | 8,389 | 11,619 | 5,334 | 6,212 | 19,053 | 1,934 |
| III. Variable-yield securities | 17,707 | –1,316 | 10,245 | –13,977 | 115,875 | 9,448 | 143,827 | –5,845 |
| 1. Available for sale | 16,992 | 505 | 8,030 | –10,784 | 95,384 | 352 | 120,405 | –9,926 |
| 2. At fair value through profit or loss | 715 | –1,822 | 2,216 | –3,193 | 20,491 | 9,096 | 23,422 | 4,081 |
| IV. Fixed interest securities | 60,697 | 45,473 | 53,316 | –1,710 | 454,689 | 197,320 | 568,702 | 241,083 |
| 1. Held to maturity | 0 | 1,076 | 0 | 2,218 | 0 | 14,044 | 0 | 17,338 |
| 2. Available for sale | 58,518 | 44,437 | 49,688 | –5,092 | 403,135 | 166,500 | 511,341 | 205,845 |
| 3. At fair value through profit or loss | 2,179 | –41 | 3,628 | 1,164 | 51,554 | 16,777 | 57,361 | 17,900 |
| V. Loans and other investments | 15,550 | 16,397 | 7,014 | 6,626 | 50,860 | 77,567 | 73,424 | 100,590 |
| 1. Loans | 4,251 | 3,227 | 6,429 | 2,497 | 25,885 | 35,727 | 36,565 | 41,450 |
| 2. Other investments | 11,299 | 13,170 | 585 | 4,129 | 24,975 | 41,840 | 36,859 | 59,140 |
| VI. Derivative financial instruments (held for trading) | 2,865 | –8,208 | 11,763 | –9,827 | –10,346 | –80,009 | 4,282 | –98,044 |
| VII. Expenditure for asset management, interest charges and | ||||||||
| other expenses | –21,880 | –4,511 | –7,630 | –5,814 | –41,103 | –30,583 | –70,613 | –40,907 |
| Total (fully consolidated values) | 85,300 | 39,710 | 92,583 | –9,445 | 613,664 | 171,553 | 791,546 | 201,818 |
Based on stage 3 valuations (hierarchy for instruments which are recognized at the reconciled current value), income from available-for-sale fixed-income securities included losses in the amount of €2,781 thousand, while income from fixed-income securities valuated at current value in the income statement included losses in the amount of €1,699 thousand.
| By income type | Ordinary income | Write-ups and unrealised capital gains |
Realised capital gains | ||||
|---|---|---|---|---|---|---|---|
| Figures in € thousand | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
| I. Properties held as investments | 79,610 | 64,859 | 2,816 | 0 | 23,185 | 648 | |
| II. Shares in associated companies | 19,058 | 13,522 | 0 | 0 | 4 | 0 | |
| III. Variable-yield securities | 51,392 | 47,420 | 69,557 | 87,229 | 92,597 | 41,096 | |
| 1. Available for sale | 45,908 | 36,468 | 13,173 | 18,230 | 88,861 | 28,426 | |
| 2. At fair value through profit or loss | 5,484 | 10,952 | 56,384 | 68,999 | 3,736 | 12,670 | |
| IV. Fixed interest securities | 550,063 | 530,384 | 113,131 | 60,218 | 182,248 | 112,216 | |
| 1. Held to maturity | 0 | 17,338 | 0 | 0 | 0 | 0 | |
| 2. Available for sale | 530,828 | 494,555 | 58,573 | 25,987 | 180,997 | 111,292 | |
| 3. At fair value through profit or loss | 19,236 | 18,491 | 54,559 | 34,231 | 1,251 | 924 | |
| V. Loans and other investments | 87,417 | 111,831 | 1,770 | 2,157 | 4,374 | 3,387 | |
| 1. Loans | 44,772 | 53,789 | 6 | 146 | 3,550 | 3,387 | |
| 2. Other investments | 42,644 | 58,042 | 1,764 | 2,010 | 824 | 0 | |
| VI. Derivative financial instruments (held for trading) | –1,615 | –16,794 | 71,779 | 82,092 | 42,128 | 40,402 | |
| VII. Expenditure for asset management, interest charges and other | |||||||
| expenses | –70,613 | –40,907 | 0 | 0 | 0 | 0 | |
| Total (fully consolidated values) | 715,311 | 710,315 | 259,053 | 231,696 | 344,536 | 197,748 |
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 €55,668 thousand (2011: €25,994 thousand). Net investment income of €791,546 thousand includes realised and unrealised profits and losses amounting to €76,235 thousand, which include currency gains of €40,912 thousand. In addition, negative currency effects amounting to €21,562 thousand were recorded directly as equity. The effects largely resulted from investments in US Dollars.
The income from properties held as financial investments include rent revenue in the amount of €113,687 thousand (2011: €96,634 thousand) and direct operational expenses in the amount of €34,077 thousand (2011: €31,772 thousand).
| Of which securities, available for sale type of investment |
Ordinary income Write-ups and unrealised capital gains | Realised capital gains | |||||
|---|---|---|---|---|---|---|---|
| Figures in € thousand | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |
| III. Variable-yield securities | |||||||
| 1. Available for sale | 45,908 | 36,468 | 13,173 | 18,230 | 88,861 | 28,426 | |
| Shares in affiliated companies | 360 | –20 | 0 | 0 | 3,907 | 1,103 | |
| Shares | 14,940 | 20,121 | 2 | 401 | 40,187 | 8,681 | |
| Equity funds | 4,009 | 6,335 | 3,573 | 170 | 24,271 | 451 | |
| Debenture bonds not capital-guaranteed | 16,439 | 4,726 | 9,599 | 17,642 | 1,313 | 1,611 | |
| Other variable-yield securities | 1,215 | 1,509 | 0 | 0 | 0 | 0 | |
| Participating interests and other investments | 8,945 | 3,798 | 0 | 17 | 19,183 | 16,581 | |
| IV. Fixed interest securities | |||||||
| 2. Available for sale | |||||||
| Fixed-interest securities | 530,828 | 494,555 | 58,573 | 25,987 | 180,997 | 111,292 |
| of which value adjustment | Group | Realised capital losses | Write-offs and unrealised capital losses | ||||
|---|---|---|---|---|---|---|---|
| 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 |
| –19,158 | –6,714 | 3,009 | 52,871 | –41 | –608 | –62,457 | –52,132 |
| 0 | 0 | 1,934 | 19,053 | 0 | 0 | –11,588 | –8 |
| –52,561 | –11,449 | –5,845 | 143,827 | –23,750 | –2,913 | –157,840 | –66,806 |
| –52,561 | –11,449 | –9,926 | 120,405 | –19,895 | –1,738 | –73,156 | –25,799 |
| 0 | 0 | 4,081 | 23,422 | –3,855 | –1,174 | –84,684 | –41,007 |
| –389,466 | –25,827 | 241,083 | 568,702 | –23,173 | –137,840 | –438,562 | –138,901 |
| 0 | 0 | 17,338 | 0 | 0 | 0 | 0 | 0 |
| –389,466 | –25,827 | 205,845 | 511,341 | –23,173 | –137,756 | –402,816 | –121,300 |
| 0 | 0 | 17,900 | 57,361 | 0 | –84 | –35,746 | –17,600 |
| –5,288 | –774 | 100,590 | 73,424 | –12,201 | –11,311 | –4,584 | –8,825 |
| –5,288 | –774 | 41,450 | 36,565 | –12,201 | –10,989 | –3,671 | –774 |
| 0 | 0 | 59,140 | 36,859 | 0 | –322 | –913 | –8,051 |
| 0 | 0 | –98,044 | 4,282 | –123,702 | –80,827 | –80,042 | –27,182 |
| 0 | 0 | –40,907 | –70,613 | 0 | 0 | 0 | 0 |
| –466,473 | –44,764 | 201,818 | 791,546 | –182,868 | –233,499 | –755,073 | –293,855 |
| of which value adjustment | Group | Realised capital losses | Write-offs and unrealised capital losses | ||||
|---|---|---|---|---|---|---|---|
| 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 |
| –52,561 | –11,449 | –9,926 | 120,405 | –19,895 | –1,738 | –73,156 | –25,799 |
| 0 | 0 | 818 | 3,926 | –59 | –341 | –205 | 0 |
| –41,535 | –8,437 | –23,681 | 45,514 | –9,866 | –216 | –43,019 | –9,399 |
| –4,089 | –3,268 | –7,187 | 23,925 | –9,847 | –1,066 | –4,295 | –6,862 |
| –2,523 | 5,591 | 3,747 | 23,101 | –110 | –116 | –20,122 | –4,134 |
| –1,950 | –2,400 | 9 | –1,185 | 0 | 0 | –1,500 | –2,400 |
| –2,464 | –2,934 | 16,368 | 25,123 | –13 | 0 | –4,015 | –3,004 |
| –389,466 | –25,827 | 205,845 | 511,341 | –23,173 | –137,756 | –402,816 | –121,300 |
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| a) Other actuarial income | 11,781 | 18,698 |
| Property and casualty | 8,260 | 15,071 |
| Health | 139 | 266 |
| Life | 3,383 | 3,361 |
| b) Other non-actuarial income | 33,662 | 45,192 |
| Property and casualty | 13,255 | 11,857 |
| Health | 7,981 | 5,515 |
| Life | 12,426 | 27,820 |
| of which | ||
| Services rendered | 4,014 | 5,963 |
| Changes in exchange rates | 12,162 | 13,448 |
| Other | 17,486 | 25,781 |
| c) Other income | 1,119 | 12,884 |
| From foreign currency conversion | 262 | 999 |
| From other | 857 | 11,885 |
| Total (fully consolidated values) | 46,562 | 76,774 |
| Gross | Reinsurers' share | Retention | ||||
|---|---|---|---|---|---|---|
| Figures in € thousand | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 |
| Property and casualty | ||||||
| Expenditure for claims | ||||||
| Claims paid | 1,481,937 | 1,451,434 | –58,275 | –52,804 | 1,423,662 | 1,398,630 |
| Change in provision for outstanding claims | 161,921 | 72,401 | 13,335 | 22,146 | 175,256 | 94,547 |
| Total | 1,643,858 | 1,523,834 | –44,941 | –30,657 | 1,598,918 | 1,493,177 |
| Change in actuarial provisions | 312 | 1,035 | 19 | –36 | 331 | 1,000 |
| Change in other actuarial provisions | 732 | 2,104 | 0 | 0 | 732 | 2,104 |
| Expenditure for profit-unrelated and profit-related premium | ||||||
| refunds | 38,843 | 37,074 | 0 | 0 | 38,843 | 37,074 |
| Total amount of benefits | 1,683,746 | 1,564,048 | –44,922 | –30,693 | 1,638,824 | 1,533,355 |
| Health | ||||||
| Expenditure for claims | ||||||
| Claims paid | 566,389 | 591,129 | –77 | –213 | 566,312 | 590,917 |
| Change in provision for outstanding claims | 53,386 | 3,127 | 4 | 529 | 53,390 | 3,656 |
| Total | 619,776 | 594,256 | –73 | 317 | 619,703 | 594,573 |
| Change in actuarial provisions | 111,097 | 112,369 | 113 | 119 | 111,210 | 112,488 |
| Change in other actuarial provisions | –4 | –23 | 0 | 0 | –4 | –23 |
| Expenditure for profit-related and profit-unrelated premium | ||||||
| refunds | 25,572 | 31,029 | 0 | 0 | 25,572 | 31,029 |
| Total amount of benefits | 756,440 | 737,631 | 40 | 436 | 756,480 | 738,067 |
| Life | ||||||
| Expenditure for claims | ||||||
| Claims paid | 1,557,970 | 1,554,848 | –104,005 | –96,393 | 1,453,965 | 1,458,454 |
| Change in provision for outstanding claims | 68,495 | –1,715 | –796 | 2,083 | 67,699 | 367 |
| Total | 1,626,464 | 1,553,133 | –104,801 | –94,311 | 1,521,663 | 1,458,822 |
| Change in actuarial provisions | –298,574 | –68,505 | 34,422 | 19,477 | –264,151 | –49,028 |
| Change in other actuarial provisions | 1,559 | 1,025 | 0 | 0 | 1,559 | 1,025 |
| Expenditure for profit-unrelated and profit-related premium refunds and/or (deferred) profit participation |
104,170 | –24,339 | 0 | 0 | 104,170 | –24,339 |
| Total amount of benefits | 1,433,620 | 1,461,313 | –70,379 | –74,833 | 1,363,241 | 1,386,479 |
| Total (fully consolidated values) | 3,873,806 | 3,762,992 | –115,261 | –105,091 | 3,758,545 | 3,657,901 |
| Figures in € thousand | 2012 | 2011 | |
|---|---|---|---|
| Property and casualty | |||
| a) Acquisition costs | |||
| Payments | 553,358 | 504,266 | |
| Change in deferred acquisition costs | –6,736 | –10,532 | |
| b) Other operating expenses | 249,028 | 347,458 | |
| 795,650 | 841,192 | ||
| Health | |||
| a) Acquisition costs | |||
| Payments | 95,558 | 85,957 | |
| Change in deferred acquisition costs | –7,194 | –6,744 | |
| b) Other operating expenses | 50,220 | 64,174 | |
| 138,584 | 143,387 | ||
| Life | |||
| a) Acquisition costs | |||
| Payments | 315,306 | 339,150 | |
| Change in deferred acquisition costs | 5,509 | 2,242 | |
| b) Other operating expenses | 99,956 | 116,083 | |
| 420,771 | 457,475 | ||
| Total (fully consolidated values) | 1,355,006 | 1,442,054 |
The decline in operating expenses primarily resulted from one-time expenditures for the repositioning of the UNIQA Group in the amount of approximately €130,600 thousand in 2011.
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| a) Other actuarial expenses | 83,653 | 93,272 |
| Property and casualty | 28,465 | 42,404 |
| Health | 4,739 | 5,378 |
| Life | 50,450 | 45,490 |
| b) Other non-actuarial expenses | 38,245 | 44,660 |
| Property and casualty | 24,204 | 23,615 |
| Health | 271 | 270 |
| Life | 13,770 | 20,775 |
| of which | ||
| Services rendered | 46 | 818 |
| Exchange rate losses | 13,348 | 10,255 |
| Mortor vehicle registration | 6,937 | 8,293 |
| Extraordinary tax on the financial sector (Hungary) | 5,664 | 5,263 |
| Other | 12,249 | 20,032 |
| c) Other expenses | 1,056 | 1,104 |
| For foreign currency translation | 162 | 1,104 |
| For other | 894 | 0 |
| Total (fully consolidated values) | 122,954 | 139,037 |
| Income tax Figures € thousand |
2012 | 2011 |
|---|---|---|
| Actual tax in reporting year | 33,411 | 13,297 |
| Actual tax in previous year | 412 | –291 |
| Deferred tax | 11,601 | –90,727 |
| Total (fully consolidated values) | 45,423 | –77,720 |
| Reconciliation statement Figures in € thousand |
2012 | 2011 |
| A. Profit from ordinary activities | 205,351 | –322,302 |
| B. Anticipated tax expenditure (A.*Group tax rate) | 51,338 | –80,576 |
| Adjusted by tax effects from | ||
| 1. Tax-free investment income | –10,408 | 5,475 |
| 2. Other | 4,494 | –2,619 |
| Amortisation of goodwill | 3,767 | 3,774 |
| Tax-neutral consolidation effect | 1,151 | 74 |
| Other non-deductible expenses/other tax-exempt income | 8,175 | 7,192 |
| Changes in tax rates | 146 | 1,584 |
| Deviations in tax rates | –4,784 | –9,960 |
| Taxes previous years | 412 | –291 |
| Lapse of loss carried forward and other | –4,373 | –8,990 |
| C. Income tax expenditure | 45,423 | –81,719 |
| Average effective tax burden Figures in percent | 22.1 | 25.4 |
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 is applied – with an assumed profit participation of 85 per cent.
| Personnel expenses1) Figures in € thousand |
2012 | 2011 |
|---|---|---|
| Salaries and wages | 405,625 | 401,546 |
| Expenses for severance payments | 4,547 | 96,277 |
| Expenses for employee pensions | 46,402 | 56,615 |
| Expenditure on mandatory social security contributions as well as income-based charges and compulsory contributions |
112,460 | 108,652 |
| Other social expenditures | 10,372 | 12,691 |
| Total | 579,407 | 675,780 |
| of which sales | 164,784 | 200,016 |
| of which administration | 375,806 | 452,505 |
| 1) The data are based on an IFRS valuation. Average number of employees |
2012 | 2011 |
| Total | 14,795 | 15,081 |
| of which sales | 6,308 | 6,179 |
| of which administration | 8,487 | 8,902 |
| Figures in € thousand | 2012 | 2011 |
| 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 |
10,967 | 9,018 |
| Other employees | 46,914 | 154,615 |
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.
The parent company of the UNIQA Group is UNIQA Versicherungen AG. This company is registered in the company registry of the Commercial Court of Vienna under FN 92933 t. In addition to its duties as Group holding company, this company also performs the duties of a Group reinsurer.
| Figures in € thousand | ||
|---|---|---|
| Receivables and liabilities with affiliated and associated companies, as well as | ||
| related persons | 31.12.2012 | 31.12.2011 |
| Receivables | 8,194 | 8,493 |
| Other receivables | 8,194 | 8,493 |
| Affiliated companies | 8,194 | 8,493 |
| Liabilities | 251 | 1,605 |
| Other liabilities | 251 | 1,605 |
| Affiliated companies | 92 | 1,546 |
| Associated companies | 160 | 60 |
| Income and expenses of affiliated companies as well as related persons | 2012 | 2011 |
| Income | 0 | 0 |
| Investment income | 0 | 0 |
| Affiliated companies | 0 | 0 |
| Expenses | 108 | 4 |
| Other expenses | 108 | 4 |
| Affiliated companies | 108 | 4 |
In order to create a streamlined Group structure that is conducive to stock exchange activities in preparation for the planned re-IPO, Austria Versicherungsverein auf Gegenseitigkeit Privatstiftung (Austria Privatstiftung) and Collegialität contributed their shareholdings in UNIQA Personenversicherung AG to UNIQA Versicherungen AG, which is listed on the stock exchange, as part of a non-cash capital increase in September of the financial year. These companies received 23,643,635 new shares with voting rights in return.
UNIQA Personenversicherung AG was merged with UNIQA Sachversicherung AG and CALL DIRECT Versicherung AG to create UNIQA Österreich Versicherungen AG, thereby becoming a 100 per cent subsidiary of UNIQA Versicherungen AG.
There were no significant transactions with affiliated companies in this financial year or the previous one.
| Other financial commitments and contingent liabilities Figures in € thousand |
31.12.2012 | 31.12.2011 |
|---|---|---|
| Contingent liabilities from risks of litigation | 14,700 | 12,059 |
| Austria | 0 | 0 |
| Foreign | 14,700 | 12,059 |
| Other contingent liabilities | 214 | 61 |
| Austria | 0 | 0 |
| Foreign | 214 | 61 |
| Total | 14,914 | 12,121 |
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.
The Purchase Contract dated 30 March 2006 grants the Seller ("Zepter") a Put Option and the Buyer "UNIQA" a Call Option for the shares that remain with the Seller. These options could have been exercised during the period 1 January 2012 to 30 June 2012 on the basis of an independent evaluation at the end of the previous quarter, but were not.
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.
| Figures in € thousand | 2012 | 2011 |
|---|---|---|
| Current leasing expenses | 2,069 | 2,276 |
| Future leasing payments due to the financing of the UNIQA Headquarters in Vienna | ||
| Up to 1 year | 5,224 | 5,339 |
| more than 1 year up to 5 years | 20,759 | 21,364 |
| more than 5 years | 7,783 | 13,361 |
| Total | 33,766 | 40,063 |
| Income from subleasing | 537 | 528 |
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 €2,988 thousand (2011: €2,601 thousand). Of these, €274 thousand (2011: €268 thousand) were for the audit, €655 thousand (€538 thousand) were for tax advice, €1,757 thousand (2011: €1,499 thousand) were for other certification services and €302 thousand (2011: €296 thousand) were for other services.
| Company | Type | Location | Equity Figures in € million1) |
Share in equity Figures in percent2) |
|---|---|---|---|---|
| Domestic insurance companies | ||||
| UNIQA Versicherungen AG (Group Holding Company) | 1029 Vienna | |||
| UNIQA Österreich Versicherungen AG (formerly: UNIQA Personenversicherung AG) Full | 1029 Vienna | 717.9 | 100.0 | |
| Salzburger Landes-Versicherung AG | Full | 5020 Salzburg | 25.1 | 100.0 |
| Raiffeisen Versicherung AG | Full | 1029 Vienna | 771.6 | 100.0 |
| FINANCE LIFE Lebensversicherung AG | Full | 1029 Vienna | 70.5 | 100.0 |
| SK Versicherung Aktiengesellschaft | Equity | 1050 Vienna | 9.8 | 25.0 |
| Foreign insurance companies | ||||
| UNIQA Assurances S.A. | Full | Switzerland, Geneva | 13.3 | 100.0 |
| UNIQA Re AG | Full | Switzerland, Zurich | 117.6 | 100.0 |
| UNIQA Assicurazioni S.p.A. | Full | Italy, Milan | 234.6 | 100.0 |
| UNIQA poistovña a.s. | Full | Slovakia, Bratislava | 37.6 | 99.9 |
| UNIQA pojištovna, a.s. | Full | Czech Republic, Prague | 60.8 | 100.0 |
| UNIQA osiguranje d.d. | Full | Croatia, Zagreb | 14.8 | 100.0 |
| UNIQA Protezione S.p.A. | Full | Italy, Udine | 21.9 | 94.6 |
| UNIQA Towarzystwo Ubezpieczen S.A. | Full | Poland, Lodz | 74.5 | 98.5 |
| UNIQA Towarzystwo Ubezpieczen na Zycie S.A. | Full | Poland, Lodz | 13.9 | 99.8 |
| UNIQA Biztosító Zrt. | Full | Hungary, Budapest | 27.6 | 100.0 |
| UNIQA Lebensversicherung AG | Full | Liechtenstein, Vaduz | 5.2 | 100.0 |
| UNIQA Versicherung AG | Full | Liechtenstein, Vaduz | 5.0 | 100.0 |
| UNIQA Previdenza S.p.A. | Full | Italy, Milan | 138.5 | 100.0 |
| UNIQA Osiguranje d.d. | Full | Bosnia and Herzegovina, Sarajevo | 6.8 | 99.8 |
| UNIQA Insurance plc | Full | Bulgaria, Sofia | 10.0 | 99.9 |
| UNIQA Life Insurance plc | Full | Bulgaria, Sofia | 4.9 | 99.7 |
| UNIQA životno osiguranje a.d. | Full | Serbia, Belgrade | 5.5 | 94.0 |
| Insurance company "UNIQA" | Full | Ukraine, Kiev | 13.6 | 92.2 |
| UNIQA LIFE | Full | Ukraine, Kiev | 3.7 | 100.0 |
| UNIQA životno osiguranje a.d. | Full | Montenegro, Podgorica | 1.7 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Full | Serbia, Belgrade | 5.7 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Full | Montenegro, Podgorica | 3.4 | 100.0 |
| UNIQA Asigurari S.A. | Full | Rumania, Bucharest | 27.5 | 100.0 |
| UNIQA Life S.A. | Full | Rumania, Bucharest | 5.3 | 100.0 |
| Raiffeisen Life Insurance Company LLC | Full | Russia, Moscow | 13.5 | 75.0 |
| UNIQA Life S.p.A. | Full | Italy, Milan | 42.5 | 90.0 |
| SIGAL UNIQA Group AUSTRIA Sh.A. | Full | Albania, Tirana | 21.2 | 68.6 |
| UNIQA AD Skopje | Full | Macedonia, Skopje | 4.6 | 100.0 |
| SIGAL LIFE UNIQA Group AUSTRIA Sh.A. | Full | Albania, Tirana | 4.3 | 100.0 |
| SIGAL UNIQA GROUP AUSTRIA SH.A. | Full | Kosovo, Pristina | 3.7 | 100.0 |
| UNIQA Life AD Skopje | Full | Macedonia, Skopje | 3.1 | 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 | 0.2 | 51.0 |
| Group domestic service companies | ||||
| UNIQA Real Estate Management GmbH | Full | 1029 Vienna | ||
| (formerly UNIQA Immobilien-Service GmbH) | 3.1 | 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 | 0.2 | 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 percent2) |
|---|---|---|---|---|
| Dr. E. Hackhofer EDV-Softwareberatung Gesellschaft m.b.H. | Full | 1070 Vienna | 1.1 | 100.0 |
| UNIQA Software-Service GmbH | Full | 1029 Vienna | 0.7 | 100.0 |
| UNIQA Capital Markets GmbH (formerly: UNIQA Finanz-Service GmbH) | Full | 1020 Vienna | 0.5 | 100.0 |
| UNIQA International Versicherungs-Holding AG | Full | 1029 Vienna | 80.8 | 100.0 |
| UNIQA International Beteiligungs-Verwaltungs GmbH | Full | 1029 Vienna | 675.0 | 100.0 |
| Alopex Organisation von Geschäftskontakten GmbH | 3) | 1020 Vienna | 100.0 | |
| RC RISK-CONCEPT Versicherungsmakler GmbH | 3) | 1029 Vienna | 100.0 | |
| Allfinanz Versicherungs- und Finanzservice GmbH | Full | 1010 Vienna | 0.2 | 100.0 |
| Direct Versicherungsvertriebs-GesmbH | 3) | 1020 Vienna | 100.0 | |
| Assistance Beteiligungs-GmbH | Full | 1010 Vienna | 0.2 | 64.0 |
| Real Versicherungs-Makler GmbH | 3) | 1220 Vienna | 100.0 | |
| Together Internet Services GmbH | 4) | 1030 Vienna | 22.6 | |
| FL-Vertriebs- und Service GmbH | 3) | 5020 Salzburg | 75.0 | |
| UNIQA HealthService – Services im Gesundheitswesen GmbH | 3) | 1029 Vienna | 100.0 | |
| UNIQA Real Estate Beteiligungsverwaltung GmbH | Full | 1029 Vienna | 16.3 | 100.0 |
| Privatklinik Grinzing GmbH | 3) | 1190 Vienna | 100.0 | |
| Versicherungsagentur Wilhelm Steiner GmbH | 3) | 1029 Vienna | 100.0 | |
| CEE Hotel Development GmbH | 4) | 1010 Vienna | 50.0 | |
| CEE Hotel Management und Beteiligungs GmbH | 4) | 1010 Vienna | 50.0 | |
| RHU Beteiligungsverwaltung GmbH & Co OG | 4) | 1010 Vienna | 50.0 | |
| UNIQA Real Estate Finanzierungs GmbH | Full | 1029 Vienna | 10.6 | 100.0 |
| UNIQA Group Audit GmbH | Full | 1029 Vienna | 0.1 | 100.0 |
| Valida Holding AG | Equity | 1020 Vienna | 19.7 | 40.1 |
| RVCM GmbH | 4) | 1010 Vienna | 50.0 | |
| 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 | 6.8 | 100.0 |
| UNIQA Finanzbeteiligung GmbH | Full | 1020 Vienna | 206.5 | 100.0 |
| UNIQA International Corporate Business GmbH | 3) | 1029 Vienna | 100.0 | |
| Group foreign service companies | ||||
| UNIQA Raiffeisen Software Service Kft. | Full | Hungary, Budapest | 0.5 | 60.0 |
| Insdata spol s.r.o. | Full | Slovakia, Nitra | 2.1 | 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 | 0.9 | 74.9 |
| UNIQA Szolgaltato Kft. | Full | Hungary, Budapest | 4.5 | 100.0 |
| UNIQA Claims Services International Kft. (formerly Profit-Pro 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. (formerly UNIQA Software Service Kft.) Full | Hungary, Budapest | 0.1 | 100.0 | |
| 3) | ||||
| Skola Hotelnictivi A Gastronom | 4) | Czech Republic, Prague | 100.0 | |
| ITM Praha s.r.o. | 3) | Czech Republic, Prague | 29.1 | |
| UNIQA Intermediazioni S.r.l. | 3) | Italy, Milan | 100.0 | |
| UNIQA Software Service d.o.o. | Croatia, Zagreb | 100.0 | ||
| Vitosha Auto OOD | Full | Bulgaria, Sofia | 0.0 | 100.0 |
| UNIQA Raiffeisen Software Service S.R.L. | Full | Romania, Cluj-Napoca | 0.1 | 60.0 |
Agenta-Consulting Kft. 3) Hungary, Budapest 100.0 UNIQA Software Service-Polska Sp.z o.o 3) Poland, Lodz 100.0
| Company | Type | Location | Equity Figures in € million1) |
Share in equity Figures in percent2) |
|---|---|---|---|---|
| UNIQA Software Service Bulgaria OOD | 3) | Bulgaria, Plovdiv | 99.0 | |
| UNIQA Software Service Ukraine GmbH | 3) | Ukraine, Kiev | 99.0 | |
| Bosnia and Herzegovina, Sarajevo | 3) | Bosnia and Herzegovina, Sarajevo | 99.8 | |
| Bosnia and Herzegovina, Banja Luka | 3) | Bosnia and Herzegovina, Banja Luka | 99.8 | |
| Bosnia and Herzegovina, 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 | |
| Financial and strategic domestic shareholdings | ||||
| Medial Beteiligungs-Gesellschaft m.b.H. | Equity | 1010 Vienna | 31.3 | 29.6 |
| Medicur-Holding Gesellschaft m.b.H.*) | Equity | 1020 Vienna | –27.7 | 25.0 |
| PremiQaMed Holding GmbH (formerly: PKB Privatkliniken Beteiligungs-GmbH) *) | Full | 1010 Vienna | 65.4 | 100.0 |
| PremiQaMed Immobilien GmbH (formerly: PKM Handels- und Beteiligungsgesellschaft m.b.H.) |
Full | 1010 Vienna | 16.2 | 100.0 |
| PremiQaMed Privatkliniken GmbH (formerly: Privatklinik Döbling GmbH) | Full | 1190 Vienna | 9.3 | 100.0 |
| Ambulatorien Betriebsgesellschaft m.b.H. | Full | 1190 Vienna | 0.9 | 100.0 |
| STRABAG SE*) | Equity | 9500 Villach | 3,096.5 | 14.9 |
| PremiaMed Management GmbH (formerly PremiaMed Management GmbH) | Full | 1190 Vienna | 0.9 | 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 | |
| call us Assistance International GmbH | Equity | 1090 Vienna | 0.5 | 61.0 |
| UNIQA Leasing GmbH | 4) | 1061 Vienna | 25.0 | |
| UNIQA International Anteilsverwaltung GmbH (formerly UNIQA Human Resources-Service GmbH) |
Full | 1020 Vienna | 163.4 | 100.0 |
| UNIQA Beteiligungs-Holding GmbH | Full | 1029 Vienna | 85.5 | 100.0 |
| UNIQA Erwerb von Beteiligungen Gesellschaft m.b.H. | Full | 1029 Vienna | 11.5 | 100.0 |
| Austria Hotels Betriebs-GmbH | Full | 1010 Vienna | 10.0 | 100.0 |
| Wiener Kongresszentrum Hofburg Betriebsgesellschaft m.b.H. | 4) | 1010 Vienna | 25.0 | |
| JALPAK International (Austria) Ges.m.b.H. | 4) | 1010 Vienna | 25.0 | |
| Real-estate companies | ||||
| UNIQA Real Estate CZ, s.r.o. | Full | Czech Republic, Prague | 16.3 | 100.0 |
| UNIQA Real s.r.o. | Full | Slovakia, Bratislava | 0.5 | 100.0 |
| UNIQA Real II s.r.o. | Full | Slovakia, Bratislava | 1.0 | 100.0 |
| Steigengraben-Gut Gesellschaft m.b.H. | 3) | 1020 Vienna | 100.0 | |
| Raiffeisen evolution project development GmbH | Equity | 1030 Vienna | 214.1 | 20.0 |
| DIANA-BAD Errichtungs- und Betriebs GmbH | Equity | 1020 Vienna | 0.6 | 33.0 |
| UNIQA Real Estate AG | Full | 1029 Vienna | 119.0 | 100.0 |
| UNIQA Real Estate Zweite Beteiligungsverwaltung GmbH | Full | 1020 Vienna | 30.0 | 100.0 |
| Design Tower GmbH (formely: UNIQA Praterstraße Projekterrichtungs GmbH) | Full | 1029 Vienna | 129.2 | 100.0 |
| Aspernbrückengasse Errichtungs- und Betriebs GmbH | Full | 1029 Vienna | 9.6 | 99.0 |
UNIQA Real Estate Holding GmbH Full 1029 Vienna 69.1 100.0 UNIQA Real Estate Dritte Beteiligungsverwaltung GmbH Full 1029 Vienna 11.5 100.0 UNIQA Real Estate Vierte Beteiligungsverwaltung GmbH Full 1029 Vienna 4.5 100.0
| "Hotel am Bahnhof" Errichtungs GmbH & Co KG Full 1020 Vienna 10.4 100.0 GLM Errichtungs GmbH Full 1010 Vienna 1.2 100.0 EZL Entwicklung Zone Lassallestraße GmbH & Co. KG Full 1029 Vienna 37.9 100.0 Fleischmarkt Inzersdorf Vermietungs GmbH Full 1020 Vienna 10.0 100.0 Praterstraße Eins Hotelbetriebs GmbH Full 1020 Vienna 2.5 100.0 UNIQA Plaza Irohadaz es Ingatlankezelö Kft. Full Hungary, Budapest 2.4 100.0 AUSTRIA Hotels Liegenschaftsbesitz AG5) Full 1010 Vienna 29.1 99.5 Passauerhof Betriebs-Ges.m.b.H.5) Full 1010 Vienna 0.8 100.0 Austria Hotels Liegenschaftsbesitz CZ s.r.o.5) Full Czech Republic, Prague 26.5 100.0 HKM Immobilien GmbH 3) Germany, Mannheim 100.0 Floreasca Tower SRL Full Rumania, Bucharest 5.7 100.0 Pretium Ingatlan Kft. Full Hungary, Budapest 5.4 100.0 UNIQA poslovni centar Korzo d.o.o. Full Croatia, Rijeka 2.8 100.0 UNIQA-Invest Kft. Full Hungary, Budapest 11.4 100.0 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 3.4 100.0 UNIQA Real Estate d.o.o. Full Serbia, Belgrade 2.6 100.0 Renaissance Plaza d.o.o. Full Serbia, Belgrade 1.9 100.0 IPM International Property Management Kft. Full Hungary, Budapest 1.3 100.0 UNIQA Real Estate Polska Sp. z o.o. Full Poland, Warsaw 8.2 100.0 Black Sea Investment Capital Full Ukraine, Kiev 0.1 100.0 LEGIWATON INVESTMENTS LIMITED Full Cyprus, Limassol 0.3 100.0 UNIQA Real III, spol. s.r.o. Full Slovakia, Bratislava 4.8 100.0 UNIQA Real Estate BV Full Niederlande, Hoofddorp 10.6 100.0 UNIQA Real Estate Ukraine Full Ukraine, Kiev 0.0 100.0 Reytarske Full Ukraine, Kiev –2.1 100.0 Austria Hotels Betriebs CZ Full Czech Republic, Prague 1.4 100.0 ALBARAMA LIMITED Full Cyprus, Nikosia 4.9 100.0 AVE-PLAZA LLC Full Ukraine, Kharkiv 10.7 100.0 Asena CJSC Full Ukraine, Nikolaew 1.1 100.0 UNIQA Real Estate Poland Sp.z.o.o. Full Poland, Warsaw 0.0 100.0 BSIC Holding GmbH Full Ukraine, Kiev 0.0 100.0 Suoreva Ltd. Full Cyprus, Limassol 4.9 100.0 Kremser Landstraße Projektentwicklung GmbH Full 1020 Vienna 8.8 100.0 Schöpferstraße Projektentwicklung GmbH Full 1020 Vienna 5.0 100.0 "Bonadea" Immobilien GmbH Full 1020 Vienna 7.3 100.0 "Graben 27–28" Besitzgesellschaft m.b.H. Full 1010 Vienna 0.5 100.0 Hotel Burgenland Betriebs GmbH Full 1029 Vienna 0.0 100.0 R-FMZ Immobilienholding GmbH Full 1020 Vienna 30.5 100.0 Neue Marktgasse Einkaufspassage Stockerau GmbH Full 1020 Vienna 4.9 100.0 DEVELOP Baudurchführungs- und Full 1020 Vienna Stadtentwicklungs-Gesellschaft m.b.H. 8.9 100.0 Raiffeisen-Fachmarktzentrum Mercurius GmbH Full 1020 Vienna 12.5 100.0 Raiffeisen-Fachmarktzentrum ZWEI GmbH Full 1020 Vienna 12.4 100.0 Raiffeisen-Fachmarktzentrum Ivesis GmbH Full 1020 Vienna 10.6 100.0 Raiffeisen-Fachmarktzentrum VIER GmbH Full 1020 Vienna 24.3 100.0 Raiffeisen-Fachmarktzentrum SIEBEN GmbH Full 1020 Vienna 7.2 100.0 R-FMZ "MERCATUS" Holding GmbH Full 1020 Vienna 50.5 100.0 |
Company | Type | Location | Equity Figures in € million1) |
Share in equity Figures in percent2) |
|---|---|---|---|---|---|
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.
4) Associated not at equity valued company.
5) Consolidated on the basis of a non-calendar financial year (balance sheet date 30 September).
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 Versicherungen 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, 21 March 2013
Andreas Brandstetter Chairman of the Management Board
Thomas Münkel Member of the Management Board
Hannes Bogner Member of the Management Board
Wolfgang Kindl Member of the Management Board
Kurt Svoboda Member of the Management Board
(Report of the independent auditor)
We audited the Consolidated Financial Statements of UNIQA Versicherungen AG, Vienna, for the financial year from 1 January to 31 December 2012. These Consolidated Financial Statements include the Consolidated Balance Sheet as at 31 December 2012, the Consolidated Income Statement, the Group Cash Flow Statement and the statement of changes in Group equity for the financial year ending 31 December 2012, as well as a summary of the most important methods of accounting and valuation applied and other notes.
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. 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 2012 as well as the results of operations and cash flow for the financial year from 1 January to 31 December 2012 in accordance with the International Financial Reporting Standards (IFRSs), as applicable in the EU.
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, 21 March 2013 KPMG Austria AG Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Michael Schlenk Chartered Accountant
p.p. Hans-Ulrich Brandes Chartered Accountant
Pursuant to Section 82 paragraph 4 of the Austrian Stock Exchange Act the Management Board of UNIQA Versicherungen 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, 21 March 2013
Andreas Brandstetter Chairman 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
Thomas Münkel Member of the Management Board
IMPRINT
Owner and publisher UNIQA Versicherungen AG Commercial registry no.: 92933t Data processing register: 0055506 Concept, advice and design Katharina Ehrenmüller, Lucia Malfent, Jo Santos Photography Thomas Topf Paper Munken Pure, 240/120/90g Printed by AV+Astoria Druckzentrum GmbH
UNIQA Versicherungen AG Stefan Glinz 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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