Quarterly Report • Nov 27, 2008
Quarterly Report
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| 1–9/2008 | 1–9/2007 | Change | |
|---|---|---|---|
| €million | €million | % | |
| Premiums written | |||
| Recurring premiums | 3,643 | 3,483 | +4.6 |
| Single premiums | 786 | 450 | +74.9 |
| Total | 4,429 | 3,933 | +12.6 |
| of which savings portion of premiums from unit- and index-linked life insurance | 642 | 499 | +28.7 |
| Premiums earned by business line | |||
| Property and casualty insurance | 1,642 | 1,377 | +19.3 |
| Health insurance | 710 | 681 | +4.2 |
| Life insurance | 1,158 | 981 | +18.0 |
| Total | 3,509 | 3,040 | +15.5 |
| Insurance benefits1 | |||
| Property and casualty insurance | –1,052 | –923 | +14.0 |
| Health insurance | –609 | –609 | – |
| Life insurance | –1,051 | –1,113 | –5.6 |
| Total | –2,712 | –2,645 | +2.5 |
| Operating expenses2 | |||
| Property and casualty insurance | –532 | –446 | +19.3 |
| Health insurance | –94 | –96 | –2.1 |
| Life insurance | –273 | –236 | +15.6 |
| Total | –898 | –777 | +15.6 |
| Net investment income | 255 | 747 | –65.9 |
| Investments | 21,822 | 21,943 | –0.6 |
| Profit on ordinary activities | 104 | 280 | –62.6 |
| Insured capital in life insurance | 63,850 | 59,604 | +7.1 |
1 Incl. expenditure for deferred profit participation and premium refunds.
2 Incl. reinsurance commissions and profit shares from reinsurance business ceded.
| Key figures on UNIQA shares | 1–9/2008 | 1–9/2007 | Change |
|---|---|---|---|
| € | € | % | |
| Share price as at 30.9. | 18.00 | 23.22 | –22.5 |
| High | 21.46 | 28.10 | |
| Low | 15.40 | 21.10 | |
| Market capitalisation as at 30.9. (€million) | 2,156 | 2,781 | –22.5 |
| Earnings per share | 0.76 | 1.63 | –53.1 |
| Information on 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, VÖNIX |
| No. of shares | 131,673,000 |
| Financial Calendar | |
|---|---|
| Preliminary Figures 2008 | Week 4, 2009 |
| Group Report 2008, Press Conference, | |
| Conference Call | 30 April 2009 |
| Annual General Meeting | 25 May 2009 |
| 1st Quarter Report 2009, Conference Call | 29 May 2009 |
| Ex Dividend Day, Dividend Payment Day | 8 June 2009 |
| Half-Year Financial Report 2009, Conference Call | 28 August 2009 |
| 1st to 3rd Quarter Report 2009, Conference Call | 27 November 2009 |
As the euro zone experienced negative GDP growth in the 2nd quarter of 2008 for the first time in a while, it can be assumed that growth in the 3rd quarter (official figures are not yet available) was very weak or negative again. All the preliminary indicators have downright collapsed as the financial crisis has spread. The outlook for the coming quarters is dampened, particularly because unemployment in the euro zone is likely to increase considerably in the near future. On the other hand, it is positive that the inflation outlook has suddenly improved. The fall in the price of oil will probably lead to a noticeable decrease in inflation rates in 2009. The ECB has already reacted to the changing environment and lowered the key interest rates by 50 basis points to 3.75% as part of global rate cuts. Further aggressive interest rate steps can be expected.
In the US, GDP growth was surprisingly strong during the 2nd quarter. The economy grew at an annualised rate of 2.8%. This growth was mainly driven by exports. The government's tax package also helped the economy in the first half of 2008. However, the USA will not grow any more in the second half of the year; GDP growth is even expected to be negative. The Federal Reserve also lowered the prime rate by 50 basis points to 1.5% and further drops in the interest rate can be expected. The main factor putting pressure on the global economy is now clearly the financial crisis. The more restrictive lending has already left its mark on many companies. It doesn't look like governmental measures to contain the crisis will be enough at the moment to jumpstart the economy.
The financial crisis has now also definitely seized Eastern Europe. Hungary, Poland, the Czech Republic and Slovakia will probably record a strong weakening in growth in 2009. In addition to this, with the exception of Slovakia, currencies have depreciated noticeably everywhere. Russia and Ukraine have been hit heavily by the fall in commodity prices. It can be expected that the decline in growth rates will be felt even more strongly in these countries. Nevertheless, we expect that Eastern Europe will continue to enjoy significant growth advantages over Western Europe for the foreseeable future.
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 financial report has been prepared in accordance with IAS 34. The scope of the fully consolidated companies was not significantly expanded as of 30 September 2008.
In the 3rd quarter of 2008, the UNIQA Group once again exhibited excellent growth. The Group premium volume written (including the savings portion of premiums from unit- and index-linked life insurance) rose in the first three quarters of 2008 by 12.6% to €4,429 million (1–9/2007: €3,933 million). The rise in single premiums was particularly strong with a growth of 74.9% to €786 million (1–9/2007: €450 million). Premiums in the product areas with recurring premiums also rose 4.6% to €3,643 million (1–9/2007: €3,483 million).
In Austria, premiums grew by 1.5% to €2,722 million (1–9/2007: €2,682 million) despite the fact that the market environment was still difficult. The recurring premium business on the Austrian market recorded an increase of 0.5% to €2,499 million (1–9/2007: €2,488 million) in the first nine months of 2008. Sales of single premium products rose by 14.8% to €223 million (1–9/2007: €194 million). The single premiums in unitlinked life insurance increased by 35.0%, while the single premiums in classic life insurance decreased according to plan (–22.5%).
The growth of Group companies in Eastern and South Eastern Europe was also very strong in the 3rd quarter of 2008 – premiums rose by 65.9% to €960 million in the first three quarters (1–9/2007: €579 million), thereby contributing 21.7% (1–9/2007: 14.7%) to the Group premiums. The UNIQA Group was able to further increase its market shares in this region due to the strong organic growth – supported by numerous dynamisation projects and the success in bank sales. The business volume in Western Europe clearly picked up speed in the 3rd quarter as well. All told, premiums in this region rose by 11.1% to €746 million (1–9/2007: €672 million) in the first nine months of 2008. The international share of business amounted to a total of 38.5% at the end of the three quarters (1–9/2007: 31.8%).
Including the net savings portions of premiums from unit- and indexlinked life insurance at a value of €606 million (1–9/2007: €468 million), the premium volumes earned rose by 17.3% to €4,115 million (1–9/2007: €3,507 million) in the first three quarters of 2008. The retained premiums earned (according to IFRS) grew by 15.5% over the same period in 2007 to reach €3,509 million (1–9/2007: €3,040 million).
The premium volume written in property and casualty insurance grew in the first nine months of 2008 by 8.6% to €1,859 million (1–9/2007: €1,712 million). While premiums in Austria grew by 1.8% to €1,031 million (1–9/2007: €1,012 million), they climbed much more significantly in the markets of Eastern and South Eastern Europe by 31.0% to €506 million (1–9/2007: €386 million), thereby contributing 27.2% (1–9/2007: 22.6) to the Group's total premiums in property and casualty insurance. But even Western Europe was able to show an excellent growth in premiums of 2.9% to €323 million (1–9/2007: €313 million). Western Europe's share of premiums thus came to 17.3% at the end of the 3rd quarter 2008 (1–9/2007: 18.3%). In total, the international share rose to 44.6% (1–9/2007: 40.9%). The retained premiums earned (according to IFRS) in property and casualty insurance increased in the first three quarters of 2008 by 19.3% to €1,642 million (1–9/2007: €1,377 million).
The premium volume written in health insurance rose in the 2008 reporting period by 3.9% to €714 million (1–9/2007: €687 million). In Austria, premium volume grew by 3.3% to €564 million (1–9/2007: €546 million). Internationally, premiums rose by 6.1% to €150 million (1–9/2007: €141 million) to contribute 21.0% (1–9/2007: 20.5%) to the Group health insurance premiums. The retained premiums earned (according to IFRS) increased in the first three quarters of 2008 by 4.2% to €710 million (1–9/2007: €681 million).
Premium growth in life insurance during the 3rd quarter of 2008 remained very positive, particularly in the international market. Overall, the premium volume written (including the savings portion of premiums from unit- and index-linked life insurance) rose by 21.0% to €1,856 million (1–9/2007: €1,534 million). Premiums in the area of recurring premium life insurance declined slightly by 1.3% to €1,070 million in the first nine months of 2008 (1–9/2007: €1,084 million). On the other hand, due to the continuing strong business growth in Poland, Hungary and the Czech Republic, the single premium policies increased by 30.4% to €401 million (1–9/2007: €308 million). The risk premium share of unit- and indexlinked life insurance included in the premiums totalled €71 million (1–9/2007: €65 million) in the first three quarters of 2008.
In Austria, the premium volume written in life insurance grew slightly by 0.3% to €1,127 million (1–9/2007: €1,124 million). While premiums from recurring premium payments decreased by 2.7% to €904 million (1–9/2007: €929 million), single premiums rose 14.8% to €223 million (1–9/2007: €194 million). The premium volume written in unit- and index-linked life insurance grew in the first nine months of 2008 by 22.4% to €434 million (1–9/2007: €355 million).
In the Western European markets, the life insurance line developed very positively in the 3rd quarter thanks to the growth in the volume of single premium policies. In total, premiums in the first three quarters rose 26.2% to €280 million (1–9/2007: €222 million). While the recurring premiums remained nearly stable at €63 million (1–9/2007: €64 million), the single premium business rose drastically by 37.9% to €217 million in the first nine months of 2008 (1–9/2007: €157 million). Life insurance business in Eastern and South Eastern Europe also showed a very positive trend. The UNIQA Group companies in these regions were able to increase their premium volume in the first nine months of 2008 by 138.3% to €449 million (1–9/2007: €188 million). The share of premiums in Eastern Europe relative to the total Group life insurance premiums was therefore already 24.2% (1–9/2007: 12.3%). The total international share rose to 39.3% (1–9/2007: 26.7%).
Including the net savings portions of premiums from unit- and indexlinked life insurance, the premium volume earned in life insurance in the first three quarters of 2008 rose by 21.7% to €1,764 million (1–9/2007: €1,449 million). The retained premiums earned (according to IFRS) grew by 18.0% to €1,158 million (1–9/2007: €981 million).
The development of loss expenses and benefits paid at the UNIQA Group was also very pleasing in the 3rd quarter of 2008. The total amount of retained insurance benefits rose in the first three quarters of 2008 by only 2.5% to €2,712 million (1–9/2007: €2,645 million). The insurance benefits before taking reinsurance into consideration even decreased by 1.7% to €2,807 million (1–9/2007: €2,857 million). The claims and benefits ratio throughout all business lines sank to 65.9% (1–9/2007: 75.4%).
The claims ratio in the property and casualty segment amounted to 64.1% at the end of the 3rd quarter of 2008, leaving it 3.0 percentage points below the comparable figure of the previous year (1–9/2007: 67.1%). The insurance benefits after reinsurance rose by 14.0% to €1,052 million (1–9/2007: €923 million) in the reporting period. On the other hand, the benefits before reinsurance only rose by 1.1% to €1,092 million (1–9/2007: €1,080 million).
The combined ratio after reinsurance improved significantly in the first three quarters of 2008 compared with the first nine months of the previous year to reach 96.5% (1–9/2007: 99.4%). Before taking reinsurance into consideration, the combined ratio was even at 93.6% (1–9/2007: 98.0%).
Retained insurance benefits (including the change in the actuarial provision) remained stable at €609 million (1–9/2007: €609 million) in the first nine months of 2008.
In life insurance, the retained insurance benefits (including the change in the actuarial provision) decreased by 5.6% to €1,051 million (1–9/2007: €1,113 million) in the reporting period.
The total operating expenses for the insurance business, not including reinsurance commissions received, rose in the first nine months of 2008 by 15.6% to €898 million (1–9/2007: €777 million). Acquisition expenses rose here by 11.3% to €651 million (1–9/2007: €585 million). Other operating expenses rose by 28.5%, amounting to €248 million at the end of the 3rd quarter (1–9/2007: €193 million). The cost ratio (i.e. the ratio of total operating expenses to the Group premiums earned, including the savings portion of premiums from unit- and index-linked life insurance), including the reinsurance commissions received, stood at 21.8% (1–9/2007: 22.2%) after three quarters of 2008.
Total operating expenses in property and casualty insurance increased in the reporting period by 19.3% to €532 million (1–9/2007: €446 million). Acquisition costs increased by 11.9% to €369 million (1–9/2007: €330 million). Other operating expenses rose by 40.6% due to the change in the reinsurance structure to reach €163 million (1–9/2007: €116 million). The cost ratio in property and casualty insurance remained unchanged at 32.4% (1–9/2007: 32.4%) after the first nine months of 2008, including the reinsurance provisions received.
Total operating expenses in health insurance decreased in the first three quarters of 2008 by 2.1% to €94 million (1–9/2007: €96 million). Acquisition costs sank 0.2% to €63 million (1–9/2007: €63 million). Other operating expenses (including reinsurance commissions received) declined by 5.8% to €31 million (1–9/2007: €33 million). This trend brought the cost ratio in health insurance down to 13.3% (1–9/2007: 14.1%).
In life insurance, total operating expenses rose in the first nine months of 2008 by 15.6% to €273 million (1–9/2007: €236 million). Acquisition costs increased by 14.1% to €219 million (1–9/2007: €192 million) due to strong new business. The first three quarters of 2008 also saw increased expenses from the change in deferred acquisition costs to the value of €15 million, in line with the development of new business. Other operating expenses increased by 22.3% to €54 million (1–9/2007: €44 million). Including the reinsurance commissions received, the cost ratio in life insurance was 15.5% after three quarters of 2008 (1–9/2007: 16.3%).
The investments 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 2008 decreased slightly compared to the same point in 2007 to €21,822 million (30.9.2007: €21,943 million). The net investment income declined in the first nine months of 2008 by –65.9% to €255 million (1–9/2007: €747 million). The capital investment results were negatively influenced primarily by the stock market declines resulting from the global financial crises as well as the spread increase in the bond portfolio. Although the share ratio was already reduced significantly in the first half of the year, realised capital losses and write-offs of the remaining portfolio impacted the capital investment results from variable-yield securities in the amount of €–193 million (1–9/2007: €201 million). The ordinary income from investments in fixed-income securities in the amount of €369 million was reduced primarily by writeoffs and unrealised losses in the area of ABS debt securities and corporate bonds to a total income of €200 million (1–9/2007: €216 million).
Despite the continuing positive trends in the technical business, the profit on ordinary activities of the UNIQA Group in the first three quarters of 2008 declined by 62.6% compared with the same period of the previous year to €104 million (1–9/2007: €280 million) because of the lower investment income. Furthermore the results of the previous year were affected by the special influences of the participation in STRABAG SE. The Group consolidated profit dropped by 53.2% to €91 million (1–9/2007: €194 million). The earnings per share were at €0.76 (1–9/2007: €1.63).
Due to the decrease in the revaluation reserve, the total equity of the UNIQA Group declined in the first nine months of 2008 by 6.3% compared with the last reporting date, corresponding to a decrease of €96 million to €1,436 million (31.12.2007: €1,532 million). This included shares in other companies amounting to €179 million (31.12.2007: €196 million). The total assets of the Group as at 30 September 2008 were €26,032 million (31.12.2007: €25,589 million).
The cash flow from operating activities declined in the first nine months of 2008 to €556 million (1–9/2007: €824 million). Cash flow from investing activities of the UNIQA Group, corresponding to the investment of revenue inflow during the reporting period, amounted to €–644 million (1–9/2007: €–865 million). The financing cash flow was €–62 million (1–9/2007: €52 million). In total, the amount of liquid funds changed by €–150 million (1–9/2007: €11 million).
The average number of employees in the UNIQA Group rose in the first three quarters of 2008 to 12,573 (1–9/2007: 11,299).
The premium volume written (including the savings portion of premiums from unit- and index-linked life insurance) outside of Austria increased during the first three quarters of 2008 by 36.4% to €1,707 million (1–9/2007: €1,251 million). In Austria, premium volume grew by 11.1% to €746 million (1–9/2007: €672 million). The growth in the companies in Eastern and South Eastern Europe was much stronger in the first three quarters of 2008. In these regions, the premium income increased by 65.9% to €960 million (1–9/2007: €579 million). The cooperation with the local Raiffeisen banks as part of the preferred partnership continues to be particularly important. This brought the level of internationalisation of the UNIQA Group after nine months of 2008 up to 38.5% (1–9/2007: 31.8%). The share of Eastern Europe reached 21.7% (1–9/2007: 14.7%), while the share of Western Europe was 16.8% (1–9/2007: 17.1%). Total retained insurance benefits in the international Group companies increased by 42.4% to €905 million (1–9/2007: €636 million) in the first three quarters of 2008.
In the 3rd quarter of 2008, all the international stock markets continued to show a negative price performance. After a volatile sideways movement of the markets during the months of July and August, the stock markets suffered massive price drops in September as a result of the crisis of trust emanating from the US mortgage market. In the first half of September, the two major US institutes specialising in real estate financing, Fannie Mae and Freddie Mac, had to be put under governmental administration and shortly afterwards the problems of the banks and insurance companies in the US threatened to escalate into a systemic crisis. At the end of September, the crisis also hit the European and Japanese banks. Negotiations on governmental aid packages and the expectations they entailed led to extreme price fluctuations towards the end of the quarter. Nevertheless, the losses on the stock markets in the USA ended up being smaller than on other markets. The DOW JONES INDUSTRIAL (DJI) fell 4.4% in the 3rd quarter which means it was down 18.7% since the beginning of the year, the DJ EURO STOXX 50 fell 9.4% (–30.9% since the beginning of the year) and the NIKKEI 225 fell 16.5% (–26.4% since the beginning of the year). The emerging markets were also unable to avoid the negative market mood – the Eastern European index CECE recorded a minus of 13.3% in the 3rd quarter (–25.6% since the beginning of the year).
The ATX, the Viennese leading index, was able to stand its own noticeably better than the European index benchmark DJ EURO STOXX 50 in the first half of the year, but in the 3rd quarter it had to swallow a 29.8% drop. On 30 September 2008, the ATX was at 2,767.76 points. Total losses since the beginning of the year have thus been 38.7%. The high proportion of finance investments was just as much a reason for this above-average drop in prices as were the general low spirits resulting from the particularly negative price performance of the real estate shares that are so strongly represented on the Vienna Stock Exchange.
UNIQA shares remained relatively stable in the 3rd quarter of 2008 and were listed at €18.00 on 30 September. After this, however, even the price of the UNIQA shares could not stave off the international trends and by 14 November fell to a level of €16.40. In comparison with the start of the year, the UNIQA share price is down 21.7%, which still leaves it significantly better than the European insurance index DJ EURO STOXX Insurance, which lost 51.9% during the same time period and was at 134.30 points on 14 November 2008.
As soon as all the official approvals were obtained, the UNIQA Group took over 100% of the share capital of the fourth largest Romanian nonlife insurance company, UNITA. The closing of the transaction took place on 3 November 2008.
The planned strengthening of the equity level in connection with this acquisition was carried out by a capital increase. By partially taking advantage of approved capital, UNIQA Versicherungen AG increased its share capital to 131,673,000 through the issue of 11,895,192 new, no-par bearer unit shares with voting rights to a proportionate share of the equity capital of €1 each.
The previously established profit goal for the entire year can no longer be achieved due to the negative developments in the capital markets and as a result of the general economic downturn. Due to the persistently high volatility and uncertainty over the further development of the capital markets, no valid forecasts for the 2008 fiscal year or beyond are possible at this time.
| Assets | 30.9.2008 €million |
31.12.2007 €million |
|---|---|---|
| A. Tangible assets | ||
| I. Self-used land and buildings | 235 | 227 |
| II. Other tangible assets | 168 | 138 |
| 402 | 365 | |
| B. Land and buildings held as financial investments | 1,079 | 1,014 |
| C. Intangible assets | ||
| I. Deferred acquisition costs | 884 | 873 |
| II. Goodwill | 319 | 293 |
| III. Other intangible assets | 34 | 39 |
| 1,237 | 1,206 | |
| D. Shares in associated companies | 533 | 507 |
| E. Investments | ||
| I. Variable-yield securities | ||
| 1. Available for sale | 2,739 | 3,970 |
| 2. At fair value through profit and loss | 1,001 | 976 |
| 3,739 | 4,945 | |
| II. Fixed interest securities | ||
| 1. Held to maturity | 340 | 0 |
| 2. Available for sale | 7,723 | 10,073 |
| 3. At fair value through profit and loss | 297 | 497 |
| 8,360 | 10,569 | |
| III. Loans and other investments | ||
| 1. Loans | 3,258 | 982 |
| 2. Cash at credit institutions | 1,856 | 649 |
| 3. Deposits with ceding companies | 127 | 119 |
| 5,240 | 1,751 | |
| IV. Derivative financial instruments | 1 | 60 |
| 17,340 | 17,326 | |
| F. Investments held on account and at risk of life insurance policyholders | 2,635 | 2,470 |
| G. Share of insurance in technical provisions | 754 | 772 |
| H. Share of insurance in technical provisions for life insurance policies | ||
| where the investment risk is borne by policy holders | 372 | 347 |
| I. Receivables including receivables under insurance business | 1,052 | 806 |
| J. Receivables from income tax | 53 | 51 |
| K. Deferred tax assets | 64 | 77 |
| L. Liquid funds | 512 | 647 |
| Total assets | 26,032 | 25,589 |
| Liabilities | 30.9.2008 | 31.12.2007 |
|---|---|---|
| €million | €million | |
| A. Total equity | ||
| I. Shareholders´ equity | ||
| 1. Subscribed capital and capital reserves | 206 | 206 |
| 2. Revenue reserves | 883 | 886 |
| 3. Revaluation reserves | 63 | 185 |
| 4. Group total profit | 105 | 60 |
| 1,257 | 1,336 | |
| II. Minority interests in shareholders´ equity | 179 | 196 |
| 1,436 | 1,532 | |
| B. Subordinate liabilities | 575 | 575 |
| C. Technical provisions | ||
| I. Earned premiums | 571 | 430 |
| II. Actuarial provision | 15,659 | 15,167 |
| III. Provision for outstanding claims | 2,203 | 2,192 |
| IV. Provision for profit-unrelated premium refunds | 38 | 48 |
| V. Provision for profit-related premium refunds, i.e. policyholder profit sharing | 200 | 390 |
| VI. Other technical provisions | 44 | 38 |
| 18,715 | 18,265 | |
| D. Technical provisions for life insurance policies held on account and at risk of policyholders | 2,585 | 2,413 |
| E. Financial liabilities | 210 | 198 |
| F. Other Provisions | 655 | 704 |
| G. Payables and other liabilities | 1,520 | 1,527 |
| H. Liabilities from income tax | 80 | 42 |
| I. Deferred tax liabilities | 256 | 333 |
| Total equity and liabilities | 26,032 | 25,589 |
| 1–9/2008 | 1–9/2007 | 7–9/2008 | 7–9/2007 |
|---|---|---|---|
| €million | €million | €million | €million |
| 3,787 | 3,434 | 1,204 | 1,044 |
| 3,509 | 3,040 | 1,201 | 1,005 |
| 13 | 54 | 4 | 17 |
| 255 | 747 | 60 | 292 |
| 38 | 43 | 11 | 15 |
| 3,815 | 3,884 | 1,276 | 1,329 |
| –873 | |||
| –263 | |||
| –28 | |||
| –10 | |||
| –3,682 | –3,576 | –1,273 | –1,174 |
| 133 | 308 | 4 | 154 |
| –29 | –28 | –10 | –10 |
| 104 | 280 | –6 | 144 |
| 7 | –66 | 8 | –43 |
| 111 | 214 | 2 | 101 |
| 91 | 194 | 0 | 89 |
| 20 | 20 | 2 | 12 |
| 0.76 | 1.63 | 0.00 | 0.75 |
| 119,328,458 | 119,427,808 | 119,179,433 | 119,427,808 |
| –2,712 –912 –54 –5 |
–2,645 –832 –86 –13 |
–949 –312 –9 –2 |
The diluted earnings per share are equal to the undiluted earnings per share. Calculated on the basis of the consolidated profit.
| Shareholders´ equity | Minority interests | Total equity | |||||
|---|---|---|---|---|---|---|---|
| 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | ||
| €million | €million | €million | €million | €million | €million | ||
| Situation as at 1.1. | 1,336 | 1,122 | 196 | 207 | 1,532 | 1,330 | |
| Foreign currency translation | 26 | 0 | 0 | 0 | 26 | 0 | |
| Dividends | –60 | –42 | –9 | –10 | –69 | –52 | |
| Own shares | –6 | 0 | 0 | 0 | –6 | 0 | |
| Net profit | 91 | 194 | 20 | 20 | 111 | 214 | |
| Unrealised capital gains and losses from | |||||||
| investments and other changes | –131 | 38 | –29 | –11 | –159 | 26 | |
| Situation as at 30.9. | 1,257 | 1,313 | 179 | 205 | 1,436 | 1,518 |
| 1–9/2008 €million |
1–9/2007 €million |
|
|---|---|---|
| Net profit including minority interests | ||
| Net profit | 111 | 214 |
| of which interest and dividend payments | 21 | 9 |
| Minority interests | –20 | –20 |
| Change in technical positions | 602 | 460 |
| Change in deferred acquisition costs | –10 | –12 |
| Change in amounts receivable and payable from direct insurance | –20 | 12 |
| Change in other amounts receivable and payable | –193 | 38 |
| Change in securities at fair value through profit or loss | 234 | 51 |
| Realised gains/losses on the disposal of investments | –296 | –20 |
| Depreciation/appreciation of other investments | 286 | 90 |
| Change in provisions for pensions and severance payments | –74 | –6 |
| Change in deferred tax assets/liabilities | –64 | 46 |
| Change in other balance sheet items | –16 | 3 |
| Change in goodwill and intangible assets | –2 | –36 |
| Other non-cash income and expenses as well as accounting period adjustments | 17 | 4 |
| Net cash flow from operating activities | 556 | 824 |
| of which cash flow from income tax | 20 | –57 |
| Receipts due to disposal of consolidated companies and other business units | 419 | 39 |
| Payments due to acquisition of consolidated companies and other business units | –344 | –76 |
| Receipts due to disposal and maturity of other investments | 8,362 | 8,809 |
| Payments due to acquisition of other investments | –8,917 | –9,265 |
| Change in investments held on account and at risk of life insurance policyholders | –164 | –373 |
| Net cash flow used in investing activities | –644 | –865 |
| Change in investments on own shares | –6 | 0 |
| Dividend payments | –60 | –42 |
| Receipts and payments from other financing activities | 4 | 93 |
| Net cash flow used in financing activities | –62 | 52 |
| Change in cash and cash equivalents | –150 | 11 |
| Change in cash and cash equivalents due to foreign currency translation | 3 | 0 |
| Change in cash and cash equivalents due to acquisition/disposal of consolidated companies | 12 | 6 |
| Cash and cash equivalents at beginning of period | 647 | 263 |
| Cash and cash equivalents at end of period | 512 | 281 |
| of which cash flow from income tax | 20 | –57 |
The cash and cash equivalents correspond to item L. of the assets: Liquid funds.
| Property and casualty | Health | ||||
|---|---|---|---|---|---|
| 30.9.2008 | 31.12.2007 | 30.9.2008 | 31.12.2007 | ||
| €million | €million | €million | €million | ||
| Assets | |||||
| A. Tangible assets | 252 | 220 | 15 | 16 | |
| B. Land and buildings held as financial investments | 338 | 329 | 180 | 180 | |
| C. Intangible assets | 332 | 323 | 226 | 216 | |
| D. Shares in associated companies | 196 | 368 | 58 | 59 | |
| E. Investments | 2,867 | 2,849 | 2,032 | 1,854 | |
| F. Investments held on account and at risk of life insurance policyholders |
0 | 0 | 0 | 0 | |
| G. Share of reinsurance in technical provisions | 317 | 351 | 2 | 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 | 705 | 610 | 158 | 201 | |
| J. Receivables from income tax | 22 | 21 | 3 | 3 | |
| K. Deferred tax assets | 58 | 71 | –1 | 3 | |
| L. Liquid funds | 195 | 106 | 109 | 158 | |
| Total segment assets | 5,283 | 5,249 | 2,782 | 2,692 | |
| Equity and Liabilities B. Subordinate liabilities |
335 | 335 | 0 | 0 | |
| C. Technical provisions | 2,703 | 2,436 | 2,325 | 2,348 | |
| D. Technical provisions for life insurance policies held on account | |||||
| and at risk of policyholders | 0 | 0 | 0 | 0 | |
| E. Financial liabilities | 182 | 169 | 5 | 1 | |
| F. Other Provisions | 598 | 665 | 8 | 9 | |
| G. Payables and other liabilities | 973 | 899 | 44 | 30 | |
| H. Liabilities from income tax | 73 | 31 | 6 | 5 | |
| I. Deferred tax liabilities | 198 | 234 | 50 | 64 | |
| Total segment liabilities | 5,062 | 4,768 | 2,438 | 2,458 |
| Life | Consolidation | Group | |||
|---|---|---|---|---|---|
| 30.9.2008 | 31.12.2007 | 30.9.2008 | 31.12.2007 | 30.9.2008 | 31.12.2007 |
| €million | €million | €million | €million | €million | €million |
| 135 | 129 | 0 | 0 | 402 | 365 |
| 561 | 506 | 0 | 0 | 1,079 | 1,014 |
| 679 | 667 | 0 | 0 | 1,237 | 1,206 |
| 279 | 80 | 0 | 0 | 533 | 507 |
| 12,816 | 12,793 | –375 | –170 | 17,340 | 17,326 |
| 2,635 | 2,470 | 0 | 0 | 2,635 | 2,470 |
| 434 | 418 | 0 | 0 | 754 | 772 |
| 372 | 347 | 0 | 0 | 372 | 347 |
| 640 | 432 | –452 | –437 | 1,052 | 806 |
| 27 | 27 | 0 | 0 | 53 | 51 |
| 8 | 3 | 0 | 0 | 64 | 77 |
| 208 | 383 | 0 | 0 | 512 | 647 |
| 18,794 | 18,256 | –827 | –607 | 26,032 | 25,589 |
| 270 | 270 | –30 | –30 | 575 | 575 |
| 13,688 | 13,485 | –2 | –4 | 18,715 | 18,265 |
| 2,585 | 2,413 | 0 | 0 | 2,585 | 2,413 |
| 232 | 49 | –209 | –21 | 210 | 198 |
| 50 | 30 | 0 | 0 | 655 | 704 |
| 1,089 | 1,149 | –586 | –551 | 1,520 | 1,527 |
| 1 | 6 | 0 | 0 | 80 | 42 |
| 9 | 35 | 0 | 0 | 256 | 333 |
| 17,924 | 17,437 | –828 | –606 | 24,596 | 24,056 |
| Shareholders´ equity and minority interests | 1,436 | 1,532 | |||
| Total equity and liabilities | 26,032 | 25,589 |
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.
| Property and casualty | Health | Life | Consolidation | Group | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | ||
| €million | €million | €million | €million | €million | €million | €million | €million | €million | €million | ||
| Gross premiums written | 1,869 | 1,714 | 714 | 687 | 1,214 | 1,035 | –10 | –2 | 3,787 | 3,434 | |
| Premiums earned (retained) | 1,650 | 1,376 | 710 | 681 | 1,158 | 981 | –8 | 1 | 3,509 | 3,040 | |
| Income from fees and provisions | 13 | 51 | 0 | 0 | 3 | 7 | –2 | –3 | 13 | 54 | |
| Net investment income | 53 | 224 | 27 | 107 | 176 | 417 | –2 | –1 | 255 | 747 | |
| Other income | 36 | 53 | 1 | 1 | 10 | 5 | –10 | –15 | 38 | 43 | |
| Insurance benefits (net) | –1,067 | –926 | –599 | –609 | –1,051 | –1,113 | 7 | 3 | –2,712 | –2,645 | |
| Operating expenses | –544 | –496 | –94 | –95 | –276 | –243 | 3 | 2 | –912 | –832 | |
| Other expenses | –38 | –72 | 0 | –3 | –29 | –29 | 14 | 17 | –54 | –86 | |
| Amortisation of goodwill | 0 | –5 | 0 | 0 | –5 | –8 | 0 | 0 | –5 | –13 | |
| Operating profit | 102 | 205 | 44 | 82 | –15 | 17 | 2 | 4 | 133 | 308 | |
| Financing costs | –18 | –17 | 0 | 0 | –11 | –11 | 0 | 0 | –29 | –28 | |
| Profit on ordinary activities | 84 | 188 | 44 | 82 | –26 | 6 | 2 | 4 | 104 | 280 | |
| Income taxes | –10 | –30 | –10 | –23 | 27 | –13 | 0 | 0 | 7 | –66 | |
| Net profit | 74 | 158 | 35 | 59 | 1 | –7 | 2 | 4 | 111 | 214 | |
| of which consolidated profit | 71 | 154 | 20 | 42 | –3 | –6 | 2 | 4 | 91 | 194 | |
| of which minority interests | 2 | 4 | 14 | 17 | 4 | –1 | 0 | 0 | 20 | 20 |
As a publicly listed company, UNIQA Versicherungen AG is obligated to prepare its consolidated financial statements according to internation-ally accepted accounting principles. These consolidated interim financial statements for the period ending 30 September 2008, 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. IFRS 8 "Operating segments" as issued in November 2006 was applied for the first time in the 1st quarter of 2008. This means that the main business fields described in the primary segment reporting – property and casualty insurance, health insurance and life insurance – were used for reporting according to IFRS 8. Additional information by geographical areas is now only available in the annual report. The accounting and valuation principles and consolidation methods are the same as those applied in the preparation of the consolidated financial statements for the 2007 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 current market value as at 30 September 2008 was €2,023 million, which corresponded to a change in market value of €109 million in the 3rd quarter. In addition, an amortisation expense of €2 million was posted in the income statement. Due to the disappearance of the active market, the valuation of ABS debt securities was also switched to "mark-to-model" with calibration as close to the market as possible.
For creation of these consolidated interim financial statements, according to IAS 4.41, estimates are used to a greater extent than as in the annual financial statements.
In addition to the interim financial statement of UNIQA Versicherungen AG, the Group interim financial statements include the interim financial statements of all subsidiaries at home and abroad. A total of 52 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 the UNIQA Versicherungen AG – 35 domestic and 66 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 |
|
|---|---|---|---|---|---|
| UNIQA Real Estate Finanzierungs GmbH, Vienna | 1.1.2008 | 0.0 | 100.0 | 0.0 | 0.0 |
| SIGAL Holding sH.A., Tirana | 1.1.2008 | 0.4 | 45.6 | 18.3 | 10.3 |
| UNIQA Real Estate d.o.o., Belgrade | 1.7.2008 | –0.1 | 100.0 | 0.1 | 0.0 |
| Renaissance Plaza d.o.o., Belgrade | 1.7.2008 | 0.8 | 100.0 | 8.8 | 0.0 |
| UNIQA Real Estate Alpha d.o.o., Belgrade | 1.7.2008 | 0.0 | 100.0 | 0.0 | 0.0 |
| UNIQA Real Estate Beta d.o.o., Belgrade | 1.7.2008 | 0.0 | 100.0 | 0.0 | 0.0 |
1 Net profit for the period included in the consolidated statements.
In the 1st quarter of 2008, the UNIQA Group acquired an additional 36.0% in the Albanian insurance holding SIGAL Holding sH.A., bringing the Group's share in the SIGAL Group up to 45.6%. This is recorded on
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:
Resulting exchange rate differences are set off against the shareholders' equity without affecting income.
the balance sheet under shares in associated companies. The holding in the Ukrainian company Credo-Classic was expanded from 35.5% to 61.0%. The company has been fully consolidated since 31 March 2008.
The most important exchange rates are summarised in the following table:
| 30.9.2008 31.12.2007 | |
|---|---|
| 1.5774 | 1.6547 |
| 30.3000 | 33.5830 |
| 24.6600 | 26.6280 |
| 242.8300 | 253.7300 |
| 7.1049 | 7.3308 |
| 3.3967 | 3.5935 |
| 1.9187 | 1.9517 |
| 3.7410 | 3.6080 |
| 1.9558 | 1.9558 |
| 7.2070 | 7.3633 |
| 76.9897 | 78.7950 |
| By segment | Property and casualty | Health | Life | Group | |||||
|---|---|---|---|---|---|---|---|---|---|
| 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | ||
| €million | €million | €million | €million | €million | €million | €million | €million | ||
| I. | Land and buildings held as financial investments | 5 | 4 | 17 | 6 | 11 | 5 | 33 | 16 |
| II. | Shares in associated companies | 4 | 138 | 1 | 48 | 125 | 0 | 131 | 186 |
| III. | Variable-yield securities | –13 | 45 | –18 | 15 | –162 | 141 | –193 | 201 |
| 1. Available for sale | –11 | 41 | –12 | 13 | –138 | 107 | –161 | 161 | |
| 2. At fair value through profit and loss | –2 | 3 | –6 | 2 | –23 | 34 | –32 | 40 | |
| IV. | Fixed interest securities | 22 | 22 | 10 | 14 | 167 | 180 | 200 | 216 |
| 1. Held to maturity | 2 | 0 | 0 | 0 | 0 | 0 | 2 | 0 | |
| 2. Available for sale | 21 | 22 | 12 | 14 | 175 | 174 | 208 | 209 | |
| 3. At fair value through profit and loss | –1 | 0 | –2 | 1 | –7 | 6 | –10 | 7 | |
| V. | Loans and other investments | 38 | 16 | 18 | 12 | 35 | 11 | 91 | 39 |
| 1. Loans | 8 | 7 | 12 | 10 | 3 | 8 | 23 | 26 | |
| 2. Other investments | 30 | 8 | 5 | 2 | 32 | 3 | 68 | 14 | |
| VI. | Derivative financial instruments | 4 | 9 | –2 | 9 | 2 | 91 | 4 | 109 |
| VII. Expenditures for asset management, interest | |||||||||
| expenditures and others | –3 | –14 | –2 | –1 | –6 | –5 | –11 | –21 | |
| Total (fully consolidated values) | 57 | 219 | 25 | 104 | 173 | 424 | 255 | 747 |
| By segment and income type | Property and casualty | Health | Life | Group | ||||
|---|---|---|---|---|---|---|---|---|
| 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | 1–9/2008 | 1–9/2007 | |
| €million | €million | €million | €million | €million | €million | €million | €million | |
| Ordinary income | 114 | 106 | 64 | 67 | 402 | 371 | 580 | 543 |
| Write-ups and unrealised capital gains | 15 | 117 | 19 | 62 | 246 | 246 | 279 | 425 |
| Realised capital gains | 5 | 77 | 2 | 26 | 203 | 255 | 210 | 357 |
| Write-offs and unrealised capital gains | –63 | –64 | –51 | –41 | –530 | –358 | –644 | –463 |
| Realised capital losses | –14 | –16 | –9 | –10 | –148 | –91 | –171 | –116 |
| Total (fully consolidated values) | 57 | 219 | 25 | 104 | 173 | 424 | 255 | 747 |
The net investment income of €255 million includes realised and unrealised gains and losses amounting to €–325 million, which include currency losses of €44 million. In addition, positive currency effects amounting to €57 million were recorded directly under equity. The effects mainly result from investments in US dollar and pound sterling.
| Average number of employees | 1–9/2008 | 1–9/2007 |
|---|---|---|
| Total | 12,573 | 11,299 |
| of which business development | 5,638 | 4,442 |
| of which administration | 6,935 | 6,857 |
UNIQA Versicherungen AG Untere Donaustrasse 21 (UNIQA Tower) 1029 Vienna Austria Commercial registry no.: 92933t Data processing register: 0055506
UNIQA Versicherungen AG Stefan Glinz Untere Donaustrasse 21 1029 Vienna Austria Tel.: (+43) 1 21175 3773 Fax: (+43) 1 21175 793773 E-mail: [email protected]
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