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Uniqa Insurance Group AG

Quarterly Report Nov 27, 2009

764_rns_2009-11-27_afbf3687-d9bc-4086-910f-350ba51baaf6.pdf

Quarterly Report

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1st to 3rd Quarter Report 2009 UNIQA Versicherungen AG

Group Key Figures

1–9/2009 1–9/2008 Change
€million €million %
Premiums written
Recurring premiums 3,687 3,614 +2.0
Single premiums 546 786 –30.6
Total 4,233 4,400 –3.8
of which savings portion of premiums from unit-linked and index-linked life insurance 460 642 –28.4
Group premiums (according to IFRS)
Property and casualty insurance 1,705 1,642 +3.9
Health insurance 701 681 +2.9
Life insurance 1,103 1,158 –4.7
Total 3,510 3,481 +0.8
Insurance benefits1)
Property and casualty insurance –1,175 –1,052 +11.7
Health insurance –597 –581 +2.7
Life insurance2) –1,280 –1,051 +21.8
Total –3,053 –2,684 +13.7
Operating expenses3)
Property and casualty insurance –577 –532 +8.5
Health insurance –88 –93 –5.3
Life insurance –234 –273 –14.2
Total –899 –897 +0.2
Net investment income 564 255 +121.4
Investments 22,080 21,822 +1.2
Profit on ordinary activities 42 104 –59.5
Consolidated profit 21 91 –77.2
Insured capital in life insurance 66,274 63,850 +3.8

1) Incl. expenditure for deferred profit participation and premium refunds.

2) Incl. expenditure for (deferred) profit participation.

3) Incl. reinsurance commissions and profit shares from reinsurance business ceded.

Key figures UNIQA shares 1–9/2009 1–9/2008 Change
%
Share price as at 30.9. 13.15 18.00 –26.9
High 18.86 21.46
Low 12.21 15.40
Market capitalisation as at 30.9. (€million) 1,731 2,156 –19.7
Earnings per share 0.16 0.76 –79.2
Information UNIQA shares
Securities abbreviation UQA
Reuters UNIQ.VI
Bloomberg UQA.AV
ISIN AT0000821103
Market segment Prime Market, Vienna Stock Exchange
Trade segment Official trading
Indices ATXPrime, WBI
Number of shares 131,673,000
Financial Calendar
Preliminary Figures 2009 Week 4, 2010
Group Report 2009, Press Conference,
Conference Call 30 April 2010
1st Quarter Report 2010, Conference Call 28 May 2010
Annual General Meeting 31 May 2010
Ex Dividend Day, Dividend Payment Day 14 June 2010
Half-Year Financial Report 2010, Conference Call 27 August 2010
1st to 3rd Quarter Report 2010, Conference Call 26 November 2010

Group Management Report

Group premiums after nine months of 2009 stable at €3,510 million.

Profit on ordinary activities at €42 million after three quarters.

Economic environment

The GDP in the Euro zone declined in the 2nd quarter of 2009 by 0.8% (annualised). On the other hand, a significant increase in GDP is expected for the 3rd quarter of 2009. This expectation is based on the improved figures in industrial production and is also confirmed by all preliminary indicators. The outlook for the coming quarters promises further growth, even if the peak may already be reached in the 3rd or 4th quarter of 2009. In September, inflation was still 0.3% below the previous year, and the outlook for inflation is very good. Inflation will in fact increase due to the baseline effects of the oil price; however, no true inflation risk exists. The ECB should therefore leave the prime rate unchanged at 1% at least into the 2nd quarter of 2010. In the USA, the GDP grew in the 3rd quarter by 3.5% (annualised), bringing the long phase of recession to an end. Consumption in particular exhibited a strong recovery here. Although the 3rd quarter may already have been the peak of the upswing, the coming quarters should continue to be positive. Inflation increased again slightly in the USA (+0.2% in September). Core inflation, however, should continue to fall due to low capacity utilisation and high unemployment. For this reason, no inflation risk exists in the USA either. The prime rate should therefore remain unchanged for the foreseeable future.

With regard to economic performance, 2009 will most likely go down as the most dismal year in recent history for Central and Eastern Europe. With an average GDP shrinkage of 5.8%, Eastern Europe is trailing behind the emerging markets. Poland represents a positive exception with the only GDP growth in the EU (for the entire year of 2009). As of the 4th quarter of 2009, growth rates are expected to be achieved again across Eastern Europe. Inflation has developed very favourably in Eastern Europe as well, and the recovery of currencies on the capital markets (above all the Polish złoty, the Hungarian forint and the Czech koruna) is worth mentioning. They profited from the general increase in risk appetite on the part of investors.

Accounting regulations, scope of consolidation

The quarterly statement of the UNIQA Group was prepared in accordance with the International Financial Reporting Standards (IFRS) as well as the International Accounting Standards (IAS). This interim report has been prepared in accordance with IAS 34. The scope of the fully consolidated Group was not significantly expanded as of 30 September 2009. Raiffeisen Life IC LLC in Moscow, which was founded in the 1st quarter of 2009, has now begun active business operations.

UNIQA offers life insurance in Russia

As previously announced, UNIQA expanded its strategic target area in 2009 to include Russia. Raiffeisen Life Versicherung, a subsidiary of the UNIQA Group Austria, worked with ZAO Raiffeisenbank to develop special life insurance products for the Russian market that are now offered through the partner's roughly 200 bank branches.

UNIQA and Raiffeisen are cooperating very successfully in Austria and now in 14 Eastern and South-Eastern European countries as "Preferred Partners" in product development, product portfolio, customer support and in the sale of insurance through banks. The wealth of experience from this cooperation is now benefiting bank and insurance companies in Russia as well.

Premium development

The premium volume of the UNIQA Group declined during the first three quarters of 2009 due to the difficult economic conditions and under the influence of negative currency effects from the devaluation of the currencies in Poland, Ukraine, Romania and Serbia. Group premiums written (including the savings portion of the premiums from unit- and index-linked life insurance) decreased in the first nine months by 3.8% to €4,233 million (1–9/2008: €4.400 million). In recurring premium product areas, on the other hand, premiums rose by 2.0% to €3,687 million (1–9/2008: €3,614 million). However, single premiums were reduced by 30.6% to €546 million (1–9/2008: €786 million). Adjusted for the effects of negative currency developments in Eastern Europe, the decline in premiums during the first three quarters of 2009 amounted to only 0.6%.

Including the net savings portions of premiums from unit- and indexlinked life insurance to the value of €445 million (1–9/2008: €606 million), the premium volume earned fell by 3.9% to €3,955 million (1–9/2008: €4,115 million) in the first nine months of 2009. In contrast, the retained premiums earned (according to IFRS) increased by 0.8% compared with the first three quarters of 2008 to €3,510 million (1–9/2008: €3,481 million).

In Austria, the premiums grew by a very satisfactory 1.9% to €2,773 million (1–9/2008: €2,722 million). The recurring premium business on the Austrian market recorded an increase of 1.1% to €2,526 million in the first nine months of 2009 (1–9/2008: €2,499 million). Sales of single premium products even rose by 10.8% to €247 million (1–9/2008: €233 million).

Premiums of the Group companies in Eastern and South-Eastern Europe fell during the first nine months of 2009 by 9.9% to €865 million (1–9/2008: €960 million) due to the difficult economic situation in this region. As a result, they made up 20.4% (1–9/2008: 21.8%) of the Group premiums. Adjusted for the previously mentioned currency effects, however, growth in Eastern and South-Eastern Europe during the reporting period was 5.0%.

The business volume in Western Europe fell primarily due to a heavy decline in the single premium life insurance business on the Italian market during the first three quarters of 2009 and amounted to €595 million after nine months (1–9/2008: €718 million). The share of international business at the end of the 3rd quarter of 2009 was 34.5% (1–9/2008: 38.1%).

Property and casualty insurance

The premium volume written in property and casualty insurance grew in the first three quarters of 2009 by 2.4% to €1,904 million (1–9/2008: €1,859 million). While the premiums in Austria increased by 1.9% to €1,050 million (1–9/2008: €1,031 million), premium growth in the countries of Eastern and South-Eastern Europe was significantly higher at 7.8% to reach €545 million (1–9/2008: €506 million). As a result, these markets contributed 28.6% (1–9/2008: 27.2%) to the total premiums of the Group in property and casualty insurance. In Western Europe, the premium revenue decreased slightly by 4.2%, falling to €309 million (1–9/2008: €323 million). This brought Western Europe's share of premiums to 16.2% at the end of the 3rd quarter of 2009 (1–9/2008: 17.3%). In total, the international share rose to 44.9% (1–9/2008: 44.6%). The retained premiums earned (according to IFRS) in property and casualty insurance increased in the first nine months of 2009 by 3.9% to €1,705 million (1–9/2008: €1,642 million).

Health insurance

The premiums written in health insurance grew in the reporting period by 3.3%, amounting to €708 million (1–9:2008: €685 million). In Austria, premium volume grew by 3.2% to €582 million (1–9/2008: €564 million). Internationally, premiums fell by 16.1% to €126 million (1–9/2008: €150 million) to contribute 17.7% (1–9/2008: 17.7%) to the health insurance premiums of the Group. The retained premiums earned (according to IFRS) increased in the first nine months of 2009 by 2.9% to €701 million (1–9/2007: €681 million).

Life insurance

Due to the worsening of global economic conditions, an expected decline in premiums occurred in the first three quarters of 2009 in the area of life insurance. Overall, the premium volume written (including the savings portion from the premiums of unit- and index-linked life insurance) decreased by 12.7% to €1,621 million (1–9/2008: €1,856 million). Single premiums fell by 30.6% to €546 million (1–9/2008: €786 million). Premiums in the area of recurring premium life insurance increased by 0.5% to €1,075 million in the first nine months of 2009 (1–9/2008: €1,070 million). The risk premium share of unit- and index-linked life insurance included in the premiums totalled €72 million in the first three quarters of 2009 (1–9/2008: €71 million).

In Austria, the premium volume written in life insurance grew by 1.2% to €1,140 million (1–9/2008: €1,127 million). While premium revenue from recurring premium payments decreased by 1.2% to €893 million (1–9/2008: €904 million), single premiums rose 10.8% to €247 million (1–9/2008: €223 million). The premium volume in unit-linked and indexlinked life insurance grew in the first nine months of 2009 by 3.6% to €450 million (1–9/2008: €434 million).

In the Western European markets, the life insurance business declined further in the first nine months of 2009. In total, premiums in the first three quarters fell by 38.6% to €172 million (1–9/2008: €280 million). While the recurring premiums developed very positively with an increase of 4.5% to €66 million (1–9/2008: €63 million), the single premium business decreased by 51.1% to €106 million (1–9/2008: €217 million) – driven by a decline in index-linked life insurance business in Italy.

In Eastern and South-Eastern Europe, the area of life insurance exhibited very reserved developments in 2009 after an extremely successfully year in 2008. The premium volume of the UNIQA Group companies in this region declined in the first nine months of 2009 by 31.1% to €309 million (1–9/2008: €449 million). Single premium policies developed poorly in the first three quarters of 2009, falling by 44.3% to €193 million (1–9/2008: €346 million). The recurring premiums, on the other hand, grew by 13.4%, amounting to €116 million after nine months (1–9/2008: €102 million). The share of Eastern Europe within the total life insurance premiums of the Group was 19.1% (1–9/2008: 24.2%). This put the total international share at 29.6% (1–9/2008: 39.3%).

Including the net savings portions of the premiums for the unit- and indexlinked life insurance, the premium volume earned in life insurance in the first nine months of 2009 declined by 12.2% to €1,548 million (1–9/2008: €1,764 million). On the other hand, the retained premiums earned (according to IFRS) decreased by only 4.7% to €1,103 million (1–9/2008: €1,158 million).

Insurance benefits

After the good developments in loss expenses and benefits paid in the previous year, the total amount of retained insurance benefits of the UNIQA Group increased in the first three quarters of 2009 by 13.7% to €3,053 million (1–9/2008: €2,684 million). The insurance benefits before reinsurance increased by 16.3% to €3,233 million (1–9/2008: €2,780 million). The claims and benefits ratio across all lines increased as a result to 77.2% (1–9/2008: 65.7%).

Property and casualty insurance

The loss ratio after reinsurance in the area of property and casualty insurance after nine months of 2009 increased to 68.9% (1–9/2008: 64.1%) due to an accumulation of major losses and, in particular, the storm events in the 3rd quarter. Due to the first consolidation of the companies in Romania, the insurance benefits after reinsurance also increased in the reporting period by 11.7% to €1,175 million (1–9/2008: €1,052 million). Benefits before reinsurance increased by 18.6% to €1,295 million (1–9/2008: €1,092 million).

This extraordinary development caused the combined ratio after reinsurance to increase in the first nine months of 2009 to 102.7% (1–9/2008: 96.5%). Before taking reinsurance into consideration, the combined ratio was 103.4% (1–9/2008: 93.6%). In total, the net impact of the storm events in the 3rd quarter amounted to roughly €45 million.

Health insurance

The retained insurance benefits (including the change in the actuarial provision) increased in the first nine months of 2009 by 2.7% to €597 million (1–9/2008: €581 million).

Life insurance

The retained insurance benefits in life insurance (including the change in the actuarial provision) increased by 21.8% to €1,280 million (1–9/2008: €1,051 million) mainly due to the change in deferred profit participation.

Operating expenses

Total operating expenses, not including reinsurance commissions received, remained at the level of the previous year during the first nine months of 2009 at €899 million (1–9/2008: €897 million). Acquisition expenses fell by 4.4% to €622 million (1–9/2008: €651 million). Other operating expenses rose by 12.3% to a total of €277 million (1–9/2008: €247 million) due to increased expenditures for social capital from consolidation of the Group companies in Romania and the Ukraine. As a result of this, the cost ratio, i.e. the relationship of all operating expenses to the Group premiums earned, including the savings portion of the premiums from unit- and index-linked life insurance as well as the reinsurance commissions received, stood at 22.7% after three quarters of 2009 (1–9/2008: 22.0%).

Property and casualty insurance

Total operating expenses in property and casualty insurance increased in the reporting period by 8.5% to €577 million (1–9/2008: €532 million). Acquisition costs increased by 3.9% to €383 million (1–9/2008: €369 million). Other operating expenses were also influenced by the mentioned consolidation effects and increased by 18.8% to €193 million (1–9/2008: €163 million). The cost ratio in property and casualty insurance including the reinsurance provisions received amounted to 33.8% after the first nine months of 2009 (1–9/2008: 32.4%).

Health insurance

Total operating expenses in health insurance were taken back in the first three quarters of 2009 by 5.3% to €88 million (1–9/2008: €93 million). Acquisition costs fell here by 9.6% to €57 million (1–9/2008: €63 million). Other operating expenses (including reinsurance commissions received) remained stable at €31 million (1–9/2008: €30 million). This trend brought the cost ratio in health insurance down to 12.6% (1–9/2008: 13.7%).

Life insurance

In life insurance, total operating expenses decreased in the first nine months of 2009 by 14.2% to €234 million (1–9/2008: €273 million). Acquisition costs fell here by 17.1% to €181 million (1–9/2008: €219 million). Other operating expenses declined by 2.4% to €53 million (1–9/2008: €54 million). The cost ratio in life insurance, including the reinsurance commissions received, fell in the first three quarters of 2009 to 15.1% (1–9/2008: 15.5%).

Investments

The investment portfolio of the UNIQA Group (including land and buildings used by the Group, real estate held as financial investments, shares in associated companies and the investments of unit- and index-linked life insurance) as at 30 September 2009 was valued above the value on the last balance sheet date by 3.5% at €22,080 million (31.12.2008: €21,342 million). The net investment income increased in the first nine months of 2009 by 121.4% to €564 million (1–9/2008: €255 million).

Profit (before taxes) at €42 million after three quarters of 2009

The profit on ordinary activities of the UNIQA Group declined after nine months of 2009 compared with the same period of the previous year by 59.5% to €42 million (1–9/2008: €104 million). Group profit fell by 77.2% to €21 million (1–9/2008: €91 million). The earnings per share were at €0.16 (1–9/2008: €0.76).

Own funds and total assets

The total equity of the UNIQA Group decreased in the first nine months of 2009 by €7 million compared to the last balance sheet date to reach €1,452 million (31.12.2008: €1,459 million). This included shares in other companies to the value of €207 million (31.12.2008: €194 million). The total assets of the Group as at 30 September 2009 were €27,008 million (31.12.2008: €25,630 million).

Cash flow

The cash flow from operating activities rose in the first three quarters of 2009 to €1,083 million (1–9/2008: €556 million). Cash flow from investing activities of the UNIQA Group, corresponding to the investment of revenue inflow during the reporting period, amounted to € –369 million (1–9/2008: € –644 million). The financing cash flow was € –191 million (1–9/2008: € –62 million). In total, the amount of liquid funds changed by €523 million (1–9/2008: € –150 million).

Employees

The average number of employees in the UNIQA Group in the first three quarters of 2009 was 14,677 (1–9/2008: 12,573) due to the first full consolidation of the companies of the sub-group PKB Privatkliniken Beteiligungs GmbH and the Romanian Group companies.

International companies

The premium volume written (including the savings portion of premiums from unit- and index-linked life insurance) outside of Austria decreased during the first three quarters of 2009 by 13.0% to €1,460 million (1–9/2008: €1,678 million). In Western Europe, the business volume fell by 17.1% to €595 million (1–9/2008: €718 million). The companies in Eastern and South-Eastern Europe also suffered premium declines in the first nine months. In these regions, premiums fell by 9.9% to €865 million (1–9/2008: €960 million). This put the level of internationalisation of the UNIQA Group, measured based on premium volume, at 34.5% (1–9/2008: 38.1%). The share of Eastern Europe was 20.4% (1–9/2008: 21.8%), while the share of Western Europe was 14.1% (1–9/2008: 16.3%). Total retained insurance benefits in the international Group companies increased by 2.3% to €898 million (1–9/2008: €878 million) in the first three quarters of 2009.

Capital market and UNIQA shares

Since the mood on the stock markets hit a low point in the 1st quarter of 2009, a strong price recovery has set in around the world. As a result, all major stock indexes exhibited significant rates of increase at the end of the 3rd quarter compared to their year-end values in 2008. The US stock index DOW JONES INDUSTRIAL (DJI) has risen by 10.7% since the start of the year, the DJ EURO STOXX 50 by 17.2% and the NIKKEI 225 by 14.4%. This development was supported, on one hand, by massive state stimulus programmes and an expansive policy by the reserve banks and, on the other hand, by improved macroeconomic indicators and the resulting more optimistic economic forecasts. Surprisingly positive results by companies buoyed the US stock markets in particular, contributing to exceptionally strong growth in the 3rd quarter of 2009 (DJI: +15.0%). The prices on many European exchanges have risen even more strongly – the DJ EURO STOXX 50 gained 19.6% in the 3rd quarter, which can be attributed to the significant improvement in the business climate for European companies which are frequently very exportoriented. The Japanese stock market was not able to entirely replicate these positive developments in the 3rd quarter (NIKKEI 225: +1.8%). Very strong price gains were recently observed in the CEE countries. In the 3rd quarter alone, the Eastern European index CECE achieved an increase of 30.5%, while growth since the start of the year lies at 34.0%.

The ATX, the Vienna leading index, was able to achieve clearly aboveaverage performance in the 3rd quarter of 2009 with a growth of 25.7%. The level of outperformance is still more pronounced when considering the entire year. Over this period, the growth now lies at +50.63%. On balance, the ATX ended the first nine months of 2009 at a value of 2,637.28 points. These clear growth rates certainly also reflect the fact that the prices on the Vienna exchange corrected downward more strongly than on other exchanges during the months of particular uncertainty on the stock markets. Another positive note is the fact that stock trading volume in the 3rd quarter of 2009 was higher than in the two preceding quarters (even if the volumes of previous years were not yet reached).

Unfortunately, UNIQA shares were not able to keep up with this upward trend. On 30 September, the share price was €13.15. The price of UNIQA shares subsequently increased slightly, reaching €13.50 on 13 November 2009. In comparison with the start of the year, however, the price is still down 25.2%.

Development of UNIQA shares

Significant events subsequent to the balance sheet date

Once all official approvals are granted, the UNIQA Group will take over roughly another 23% of the share capital of the Albanian SIGAL insurance group, bringing the Group's stake in the Albanian market leader to approximately 68.7%. This transaction is expected to close within the next three to four months. With the established agreement, UNIQA simultaneously concluded options for purchasing the remaining shares over the course of the coming years. SIGAL has been active for some time on the markets of Albania, Macedonia and Kosovo as a member of the UNIQA Group.

By partially taking advantage of approved capital, the publicly listed company UNIQA Versicherungen AG will increase its share capital to €142,985,217 through the issue of up to 11,312,217 new, no-par bearer unit shares with voting rights to a proportionate share of the equity capital of €1 each. Only existing shareholders are entitled to purchase these shares in the ratio of 11:1. The maximum purchase price is set at €18.00.

Outlook

Due to the continued uncertainties regarding further developments in the capital markets and the real economy, it remains impossible to make a reliable forecast for the 2009 financial year.

Consolidated Balance Sheet

Assets 30.9.2009 31.12.2008
€million €million
A. Tangible assets
I. Self-used land and buildings 235 221
II. Other tangible assets 152 113
387 334
B. Land and buildings held as financial investments 1,369 1,148
C. Intangible assets
I.
Deferred acquisition costs
887 872
II. Goodwill 527 501
III. Other intangible assets 29 34
1,444 1,407
D. Shares in associated companies 820 851
E. Investments
I.
Variable-yield securities
1. Available for sale 2,146 2,243
2. At fair value through profit and loss 710 949
2,855 3,192
II. Fixed interest securities
1. Held to maturity 340 449
2. Available for sale 8,388 7,760
3. At fair value through profit and loss 251 271
8,978 8,481
III. Loans and other investments
1. Loans 2,988 3,202
2. Cash at credit institutions 1,504 1,457
3. Deposits with ceding companies 133 129
4,626 4,789
IV. Derivative financial instruments 12 19
16,472 16,480
F. Investments held on account and at risk of life insurance policyholders 3,184 2,642
G. Share of reinsurance in technical provisions 793 761
H. Share of reinsurance in technical provisions held on account and at risk of life insurance policyholders 379 382
I. Receivables including receivables under insurance business 922 932
J. Receivables from income tax 50 54
K. Deferred tax assets 94 69
L. Liquid funds 1,095 568
Total assets 27,008 25,630
Equity and liabilities 30.9.2009 31.12.2008
€million €million
A. Total equity
I.
Shareholders´ equity
1. Subscribed capital and capital reserves 391 391
2. Revenue reserves 768 809
3. Revaluation reserves 66 12
4. Group total profit 21 53
1,245 1,265
II. Minority interests in shareholders´ equity 207 194
1,452 1,459
B. Subordinated liabilities 575 581
C. Technical provisions
I.
Earned premiums
616 524
II. Actuarial provision 15,932 15,602
III. Provision for outstanding claims 2,306 2,205
IV. Provision for profit-unrelated premium refunds 37 46
V. Provision for profit-related premium refunds, i.e. policyholder profit sharing 285 –5
VI. Other technical provisions 53 49
19,230 18,421
D. Technical provisions held on account and at risk of life insurance policyholders 3,133 2,580
E. Financial liabilities 65 196
F. Other provisions 658 644
G. Payables and other liabilities 1,526 1,448
H. Liabilities from income tax 50 57
I. Deferred tax liabilities 319 245
Total equity and liabilities 27,008 25,630

Consolidated Income Statement

1–9/2009 1–9/2008 7–9/2009 7–9/2008
€million €million €million €million
Gross premiums written 3,773 3,758 1,152 1,196
Premiums earned (retained) 3,510 3,481 1,141 1,192
Income from fees and provisions 12 13 4 4
Net investment income 564 255 230 60
Other income 36 38 4 11
Total income 4,122 3,787 1,378 1,268
Insurance benefits (net) –3,053 –2,684 –1,044 –942
Operating expenses –911 –911 –295 –312
Other expenses –82 –54 –19 –9
Amortisation of goodwill –7 –5 –5 –2
Total expenses –4,053 –3,653 –1,363 –1,265
Operating profit 69 133 15 4
Financing costs –27 –29 –8 –10
Profit on ordinary activities 42 104 7 –6
Income taxes –8 7 2 8
Net profit 35 111 9 2
of which consolidated profit 21 91 –12 0
of which minority interests 14 20 20 2
Earnings per share in € 0.16 0.76 –0.09 0.00
Average number of shares in circulation 130,853,350 119,328,458 130,853,350 119,179,433

The diluted earnings per share are equal to the undiluted earnings per share. Calculated on the basis of the consolidated profit.

Because it has been ascertained that an investment contract that was previously recorded an insurance contract does not contain any significant technical risk, the administrative fees from this business starting with the year 2009 will now only be reported under other income. The written and earned premiums, the insurance benefits and the operating expenses have therefore also been corrected in the comparative figures for 2008.

Development of Group Equity

Shareholders´ equity Minority interests Total equity
1–9/2009 1–9/2008 1–9/2009 1–9/2008 1–9/2009 1–9/2008
€million €million €million €million €million €million
As at 1.1. 1,265 1,336 194 196 1,459 1,532
Foreign currency translation –20 26 0 0 –20 26
Dividends –52 –60 –8 –9 –61 –69
Own shares 0 –6 0 0 0 –6
Net profit 21 91 14 20 35 111
Unrealised capital gains and losses from
investments and other changes 32 –131 7 –29 40 –159
As at 30.9. 1,245 1,257 207 179 1,452 1,436

Consolidated Cash Flow Statement

1–9/2009
€million
1–9/2008
€million
Net profit including minority interests
Net profit 35 111
of which interest and dividend payments 11 21
Minority interests –14 –20
Change in technical provisions (net) 1,333 602
Change in deferred acquisition costs –15 –10
Change in amounts receivable and payable from direct insurance –31 –20
Change in other amounts receivable and payable 72 –193
Change in securities at fair value through profit or loss 267 234
Realised gains/losses on the disposal of investments –734 –296
Depreciation/appreciation of other investments 213 286
Change in provisions for pensions and severance payments 6 –74
Change in deferred tax assets/liabilities 45 –64
Change in other balance sheet items –46 –16
Change in goodwill and intangible assets –6 –2
Other non-cash income and expenses as well as accounting period adjustments –42 17
Net cash flow from operating activities 1,083 556
of which cash flow from income tax –7 20
Receipts due to disposal of consolidated companies and other business units 228 419
Payments due to acquisition of consolidated companies and other business units –419 –344
Receipts due to disposal and maturity of other investments 7,303 8,362
Payments due to acquisition of other investments –6,940 –8,917
Change in investments held on account and at risk of life insurance policyholders –542 –164
Net cash flow used in investing activities –369 –644
Change in investments on own shares 0 –6
Dividend payments –52 –60
Receipts and payments from other financing activities –138 4
Net cash flow used in financing activities –191 –62
Change in cash and cash equivalents 523 –150
Change in cash and cash equivalents due to foreign currency translation –2 3
Change in cash and cash equivalents due to acquisition/disposal of consolidated companies 5 12
Cash and cash equivalents at beginning of period 568 647
Cash and cash equivalents at end of period 1,095 512
of which cash flow from income tax 4 20

The cash and cash equivalents correspond to item L. of the assets: Liquid funds.

Segment Balance Sheet

Classified by segment

Property and casualty Health
30.9.2009 31.12.2008 30.9.2009 31.12.2008
€million €million €million €million
Assets
A. Tangible assets 218 203 36 13
B. Land and buildings held as financial investments 392 354 259 187
C. Intangible assets 520 486 232 225
D. Shares in associated companies 162 192 0 104
E. Investments 2,613 2,732 2,171 2,026
F. Investments held on account and at risk of life insurance
policyholders 0 0 0 0
G. Share of reinsurance in technical provisions 333 317 3 2
H. Share of reinsurance in technical provisions for life insurance
policies where the investment risk is borne by policyholders 0 0 0 0
I. Receivables including receivables under insurance business 695 616 203 163
J. Receivables from income tax 29 25 4 3
K. Deferred tax assets 85 64 0 0
L. Liquid funds 194 197 173 122
Total segment assets 5,240 5,186 3,081 2,845
Equity and Liabilities
B. Subordinated liabilities 335 341 0 0
C. Technical provisions 2,731 2,553 2,570 2,465
D. Technical provisions held on account and at risk of life insurance
policyholders 0 0 0 0
E. Financial liabilities 34 184 29 3
F. Other provisions 594 603 19 8
G. Payables and other liabilities 1,048 904 109 48
H. Liabilities from income tax 44 48 5 9
I. Deferred tax liabilities 203 197 73 44
Total segment liabilities 4,989 4,829 2,805 2,577
Life Consolidation Group
30.9.2009 31.12.2008 30.9.2009 31.12.2008 30.9.2009 31.12.2008
€million €million €million €million €million €million
134 118 0 0 387 334
718 607 0 0 1,369 1,148
692 696 0 0 1,444 1,407
658 556 0 0 820 851
12,106 12,147 –418 –425 16,472 16,480
3,184 2,642 0 0 3,184 2,642
458 442 0 0 793 761
379 382 0 0 379 382
790 763 –766 –609 922 932
17 25 0 0 50 54
9 6 0 0 94 69
727 250 0 0 1,095 568
19,872 18,633 –1,185 –1,034 27,008 25,630
270 270 –30 –30 575 581
13,924 13,399 5 4 19,230 18,421
3,133 2,580 0 0 3,133 2,580
196 216 –193 –207 65 196
44 34 0 0 658 644
1,330 1,291 –962 –796 1,526 1,448
1 1 0 0 50 57
44 4 0 0 319 245
18,943 17,795 –1,180 –1,029 25,556 24,171
Shareholders´ equity and minority interests 1,452 1,459

Total equity and liabilities 27,008 25,630

The amounts indicated have been adjusted to eliminate amounts resulting from segment-internal 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.

Segment Income Statement

Classified by segment

Property and casualty
Health
Life Consolidation Group
1–9/2009 1–9/2008 1–9/2009 1–9/2008 1–9/2009 1–9/2008 1–9/2009 1–9/2008 1–9/2009 1–9/2008
€million €million €million €million €million €million €million €million €million €million
Gross premiums written 1,922 1,869 708 685 1,161 1,214 –18 –10 3,773 3,758
Premiums earned (retained) 1,716 1,650 701 681 1,104 1,158 –10 –8 3,510 3,481
Income from fees and provisions 11 13 0 0 3 3 –3 –2 12 13
Net investment income 75 53 72 27 418 176 –1 –2 564 255
Other income 38 36 1 1 11 10 –14 –10 36 38
Insurance benefits (net) –1,178 –1,067 –597 –572 –1,280 –1,051 2 7 –3,053 –2,684
Operating expenses –586 –544 –88 –93 –238 –276 1 3 –911 –911
Other expenses –69 –38 –3 0 –34 –29 24 14 –82 –54
Amortisation of goodwill –3 0 0 0 –4 –5 0 0 –7 –5
Operating profit 3 102 86 44 –21 –15 1 2 69 133
Financing costs –17 –18 0 0 –10 –11 0 0 –27 –29
Profit on ordinary activities –13 84 86 44 –31 –26 1 2 42 104
Income taxes –2 –10 –10 –10 4 27 0 0 –8 7
Net profit –15 74 76 35 –27 1 1 2 35 111
of which consolidated profit –13 71 56 20 –22 –3 1 2 21 91
of which minority interests –2 2 20 14 –5 4 0 0 14 20

Group Notes

Accounting regulations

As a publicly listed company, UNIQA Versicherungen AG is obligated to prepare its consolidated financial statements according to internationally accepted accounting principles. These consolidated interim financial statements for the period ending 30 September 2009, have been prepared in accordance with the International Financial Reporting Standards (IFRS) and the International Accounting Standards (IAS), in the versions applicable to this reporting period. The accounting and valuation principles and consolidation methods are the same as those applied in the preparation of the consolidated financial statements for the 2008 business year.

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 €2,130 million were reclassified. The corresponding revaluation reserve as at 30 June 2008 was €–98 million. The market value as at 31 December 2008 was €1,889 million, the current market value as at 30 September 2009 amounted to €1,761 million, which corresponded to a change in market value of €150 million in the first three quarters of 2009. In addition, an amortisation gain of €4.8 million was posted in the income statement.

For creation of these consolidated interim financial statements, according to IAS 34.41, estimates are used to a greater extent than as in the annual financial statements.

Scope of consolidation

In addition to the interim financial statement of UNIQA Versicherungen AG, the Group interim financial statements include the interim financial statements of all subsidiaries in Austria and abroad. A total of 40 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. The scope of consolidation, therefore, contains – in addition to UNIQA Versicherungen AG – 45 domestic and 77 foreign subsidiaries in which UNIQA Versicherungen AG held the majority voting rights.

The scope of consolidation was extended in the reporting period by the following companies:

Date of initial
inclusion
Net profit for
the period
€million1)
Acquired shares
%
Acquisition costs
€million
Goodwill
€million
Raiffeisen Life IC LLC, Moscow 1.1.2009 –1.1 100.0 1.5 0.0
EZL Entwicklung Zone, Vienna 1.1.2009 1.7 99.9 51.8 0.0
BSIC Holding GmbH, Kiev 1.4.2009 0.0 100.0 0.0 0.0
Privatklinik Wehrle GmbH, Salzburg 1.4.2009 –0.3 100.0 0.0 0.0
PKM Handels- und Beteiligungsgesellschaft m.b.H., Vienna 1.4.2009 –0.2 100.0 0.0 0.0
Privatklinik Döbling GmbH, Vienna 1.4.2009 1.2 100.0 0.0 0.0
Privatklinik Josefstadt GmbH, Vienna 1.4.2009 –0.4 100.0 0.0 0.0
Privatklinik Graz Ragnitz GmbH, Vienna 1.4.2009 –0.8 100.0 0.0 0.0
Ambulatorien Betriebsgesellschaft m.b.H., Vienna 1.4.2009 0.2 100.0 0.0 0.0
RVCM GmbH, Vienna 1.4.2009 0.0 50.0 0.0 0.0

1) Net profit for the period included in the consolidated statements.

As of 30 June 2009, the scope of the fully consolidated companies was expanded to include PremiaMed Management GmbH (formerly Humanomed Krankenhaus Management Gesellschaft m.b.H.) and the subgroup PKB Privatkliniken Beteiligungs GmbH. The two companies were previously recognised (at equity) as associated companies in the

Foreign currency translation

The reporting currency of UNIQA Versicherungen AG is the euro. All financial statements of foreign subsidiaries which are not reported in euros are converted, at the rate on the balance sheet closing date, according to the following guidelines:

  • Assets, liabilities and transition of the net profit/deficit for the period at the middle rate on the balance sheet closing date
  • Income statement at the average exchange rate for the period
  • Equity capital (except for net profit/deficit for the period) at the historic exchange rate

Resulting exchange rate differences are set off against the shareholders' equity without affecting income.

UNIQA Group of companies. In the 3rd quarter of 2009, roughly 4.9 million individual share certificates of LEIPNIK-LUNDENBURGER INVEST Beteiligungs AG were sold; the remaining stock held was transferred from associated companies to other shareholdings.

The most important exchange rates are summarised in the following table:

Euro rates on balance sheet closing date 30.9.2009 31.12.2008
Swiss franc CHF 1.5078 1.4850
Slovakian koruna SKK (euro since 1.1.2009) 30.1260
Czech koruna CZK 25.1640 26.8750
Hungarian forint HUF 269.7000 266.7000
Croatian kuna HRK 7.2580 7.3555
Polish złoty PLN 4.2295 4.1535
Bosnia and Herzegovina convertible mark BAM 1.9564 1.9687
Romanian leu (new) RON 4.2180 4.0230
Bulgarian lev (new) BGN 1.9558 1.9558
Ukrainian hrywnja UAH 12.0105 10.9199
Serbian dinar RSD 93.2100 89.7909
Russian ruble RUB 43.9800

Notes to the consolidated income statement

Net investment income

By segment Property and casualty Health Life Group
1–9/2009 1–9/2008 1–9/2009 1–9/2008 1–9/2009 1–9/2008 1–9/2009 1–9/2008
€million €million €million €million €million €million €million €million
I. Land and buildings held as financial investments 4 5 2 17 17 11 23 33
II. Shares in associated companies –2 4 0 1 20 125 18 131
III. Variable-yield securities 9 –13 9 –18 32 –162 50 –193
1. Available for sale 7 –11 6 –12 –10 –138 3 –161
2. At fair value through profit and loss 2 –2 3 –6 42 –23 47 –32
IV. Fixed interest securities 55 22 37 10 225 167 317 200
1. Held to maturity 1 2 3 0 17 0 21 2
2. Available for sale 52 21 31 12 189 175 272 208
3. At fair value through profit and loss 2 –1 3 –2 19 –7 24 –10
V. Loans and other investments 30 38 18 18 96 35 144 91
1. Loans 16 8 17 12 77 3 110 23
2. Other investments 14 30 1 5 19 32 34 68
VI. Derivative financial instruments –1 4 6 –2 35 2 40 4
VII. Expenditures for asset management, interest
expenditures and other –19 –3 –3 –2 –7 –6 –29 –11
Total (fully consolidated values) 75 57 71 25 418 173 564 255
By segment and income type Property and casualty Health Life Group
1–9/2009 1–9/2008 1–9/2009 1–9/2008 1–9/2009 1–9/2008 1–9/2009 1–9/2008
€million €million €million €million €million €million €million €million
Ordinary income 77 114 72 64 455 402 604 580
Write-ups and unrealised capital gains 25 15 22 19 167 246 213 279
Realised capital gains 25 5 31 2 296 203 353 210
Write-offs and unrealised capital gains –47 –63 –44 –51 –365 –530 –456 –644
Realised capital losses –6 –14 –8 –9 –135 –148 –149 –171
Total (fully consolidated values) 75 57 71 25 418 173 564 255

The net investment income of €564 million included realised and unrealised gains and losses amounting to € –40 million, which included currency gains of €47 million. In addition, negative currency effects amounting to €8 million were recorded directly under equity. The effects mainly resulted from investments in US dollar and pound sterling.

Other disclosures

Employees

Average number of employees 1–9/2009 1–9/2008
Total 14,677 12,573
of which business development 6,225 5,638
of which administration 8,452 6,935

These consolidated quarterly financial statements were neither audited nor reviewed by an auditor.

Imprint

Owner and publisher

UNIQA Versicherungen AG Untere Donaustrasse 21 (UNIQA Tower) 1029 Vienna Austria Commercial registry no.: 92933t Data processing register: 0055506

Investor relations

UNIQA Versicherungen AG Stefan Glinz Untere Donaustrasse 21 1029 Vienna Austria Tel.: (+43) 1 211 75 3773 Fax: (+43) 1 211 75 793773 E-mail: [email protected]

www.uniqagroup.com

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