Annual Report • Apr 25, 2008
Annual Report
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Jahresfinanzbericht 2007 UNIQA Versicherungen AG Annual Financial Report 2007 according to Section 82 paragraph 4 of the Austrian Stock Exchange Act UNIQA Versicherungen AG
Group Management Report 2 24
Notes to the Group Financial Statements
The expansion of the global economy, driven primarily by the growth engines of China and India, continued during 2007. The economy in the USA slowed down somewhat compared to the previous year, while growth remained very robust in the euro zone. The economic climate clouded over in the second half of the year due to the crisis on the US real estate market and the turbulence in the financial and stock markets. In addition, the inflationary pressure increased noticeably due to the exceptionally sharp rise in raw materials prices.
Investments and consumption remained the primary driving forces in the euro region during 2007. Early indicators such as business climate and consumer confidence showed a weakening of the economic dynamic towards the end of the year. The strength of the euro was not able to compensate for the enormous increase in petroleum and raw materials prices. Inflation also exceeded the target set by the European Central Bank of just 2.0%.
Austria's economy remained on a growth course in 2007, thanks to the export boom and the intensive investment activity. The gross domestic product increased as much as in the previous year, exhibiting growth of 3.4%. A continued rise in employment brought unemployment down once again. The unemployment and inflation rates remained below the EU average.
Austria's insurance sector continued to be characterised by slight growth in 2007. The total of premiums increased by 1.9% to €16 billion. Excluding single premium transactions, the insurance industry grew at 3.0%, roughly the same rate as the overall economy.
Health insurance exhibited a growth of 3.2% to €1.5 billion in 2007, the strongest dynamics in the industry. Life insurance performed less strongly than in 2006 and only grew by 0.4% to €7.2 billion. This was the result of an increase in recurring premiums of 2.8% and a further decline in single premium business of 6.6%. Property and casualty insurance performed better than in 2006, with an increase in premiums of 3.1% to €7.2. The driving forces here were general liability, household insurance and legal expenses insurance. No growth impulses due to the stiffer competition came from motor vehicle liability and comprehensive insurance.
The international money and financial markets were marked by turbulence and uncertainty during the second half of the year, triggered by the crisis in the US real estate market. The result was the need for massive corrections in the IFRS balance sheets of financial institutes, due to the required revaluation of securities supported by American sub-prime mortgages. This led to a liquidity squeeze with significant irritations on the money market.
The central banks in the USA and euro region made billions available to the business banks for a short period. Despite increasing inflationary pressure, the European Central Bank declined to implement an increase in the base interest rate, although this had already been indicated. It left the minimum refinancing rate, which had been raised in March and June by 25 basis points, at 4% until the end of 2007. The US central bank, on the other hand, lowered its base rate in October and December by 25 basis points each to 4.25%.
The credit crisis and interest rate increases in the euro region and Switzerland drove money market interest rates upward. The 3-month EURIBOR reached a peak value of 95 points above the minimum refinancing rate of the European Central Bank in December. The inter-bank market was characterised by significant restraint up to the end of the year.
The yields of government bonds increased during 2007 in the euro zone and in Switzerland, while falling in the USA and Japan. The yield curve of long-term euro bonds was the inverse of the money market, as a result of the financial crisis.
The dollar lost roughly 10% against the euro and the yen between June and December. The rise in value of the euro does encumber the competitiveness of producers in the euro region with regard to price, but it also absorbs price increases for imports invoiced in dollars.
After record levels up to mid-year, the international stock markets experienced highly erratic fluctuations in the second half but, nevertheless, finished the year up almost across the board. The DOW JONES INDUSTRIAL AVERAGE rose by 6.4%. The representative index for Europe, the DJ EURO STOXX 50, saw a gain of 6.8%. The Eastern European index CECE climbed by 10%. The German stock index DAX once again achieved two-digit growth of 22.3%. Top results were reported by the Chinese CSI 300 Index (+162%), as well as by the stock market index of the Ukraine PFTS (+135%), and Slovenia (+78%).
The growth of the global economy may decline more than previously expected in 2008. The driving economic engines remain China and India. However, above-average expansion is also seen in most Eastern and southeastern European countries. The economy of the euro region will grow by only about 1.5% during 2008, with increasing inflation risks.
In Austria, a decline in economic growth by roughly 2.0% is expected. The effects of slightly decreased consumer activity will, once again, be felt. Investment intensity will abate somewhat. The employment level will remain high, but consumer prices will rise more sharply.
The insurance industry in Austria will grow in 2008, at about the level of the previous year, with a premium growth of roughly 1.9%. Health insurance (+3.1%) and property and casualty insurance (+2.6%) should achieve a solid upward course despite the stiffer competition in motor and industrial insurance. Increased volume of 1.0% is expected in life insurance. While the recurring premiums should rise 4.6%, a decline of roughly 10%, as in 2007, is expected in the area of singe premiums.
In particular, long-term yields on the European capital markets may fall due to the slowing growth. The money market interest rates should decrease further in the euro zone and the USA over the course of the year. After the decision in January 2008 to lower the base interest rate by a total of 125 basis points to 3.0%, in order to shore up the American economy, the US central bank as well as the European Central Bank may loosen up on monetary policy over the course of the year, despite growing inflation risks.
The international stock markets will suffer from the continued uncertainty. If fears regarding drastic cooling of the American economy, a further increase in the oil price and the euro-dollar exchange rate prove unfounded, a broad recovery could occur in Europe.
With €5,276 million of premiums, written including the savings portion of premiums from unit-linked and index-linked life insurance, UNIQA is one of the leading insurance groups in Central and Eastern Europe. The savings portion of premiums from unit-linked and index-linked life insurance amounting to €748 million is, in accordance with FAS 97 (US-GAAP), balanced out by the changes in the actuarial provision. The premium volume excluding the savings portion from the unit-linked and indexlinked life insurance amounts to €4,528 million.
The UNIQA Group offers its products and services through all distribution channels (salaried sales force, GeneralAgencies, brokers, banks and direct sales). UNIQA is active in all types of insurance and operates its direct insurance business in Austria through UNIQA Personenversicherung AG, UNIQA Sachversicherung AG, Raiffeisen Versicherung AG, FINANCE LIFE Lebensversicherung AG, Salzburger Landes-Versicherung AG and CALL DIRECT Versicherung AG.
The listed Group holding company, UNIQA Versicherungen AG, is responsible for Group management, operates the indirect insurance business and is the central reinsurer for the Group's Austrian operational companies. In addition, it carries out numerous service functions for the Austrian and international insurance subsidiaries, in order to best take advantage of synergy effects within all the Group companies, and to consistently implement the Group's long-term corporate strategy. UNIQA Re AG has its headquarters in Zurich and is responsible for reinsuring the Group's international operational companies. In order to achieve maximum synergy effects, the international activities of the UNIQA Group are managed centrally through Competence Centres as well as the Central Services, and UNIQA International Versicherungs-Holding GmbH is responsible for ongoing monitoring and analysis of the international target markets for acquisitions as well as for the integration of acquisitions into the Group.
At the end of 2007, UNIQA decided to expand its investment in the Ukrainian company Credo-Classic from 35.3% to 61.0%, thereby taking over a majority interest in the company. A further expansion of the investment is planned over the medium term. Credo-Classic is the sixth-largest property insurance company in the Ukraine – a market with some of the best prospects and fastest growth rates in Eastern Europe with a population of over 45 million. UNIQA is active in the life insurance business in the Ukraine with UNIQA LIFE and operates a cooperation with the Raiffeisen Bank Aval within the framework of the Preferred Partnership.
Already at the start of 2007, UNIQA strengthened its commitment in Bulgaria and increased its investment in the Vitosha Group to 62.5%. At the same time, the companies were renamed to UNIQA and the cooperation with Raiffeisen banks in Bulgaria was further intensified.
In December 2007, UNIQA decided to take over 45.6% of the Albanian SIGAL Group. With a market share exceeding 28%, SIGAL is the largest insurance company in Albania and also has a corresponding market presence in Macedonia and Kosovo through subsidiaries and branches. UNIQA has already been cooperating with SIGAL since March 2007, and obtained, at the start of the cooperation, a contractually fixed option to acquire a majority by 2010.
Within the framework of the cooperation, the first jointly developed products in the area of life and health insurance have already been successfully positioned on the market. The exchange of know-how should be further intensified in the future.
In 2007, UNIQA was the first insurance company in Serbia to complete the separation of product lines and founded its own specialised company for property insurance. Since the start of July 2007, UNIQA neživotno osiguranje, with its head office in Belgrade, has also offered motor insurance on the Serbian market. The experience of the entire UNIQA Group was utilised in the product design, marketing and sales measures.
In this way, the UNIQA Group has expanded its presence in Eastern and south-eastern Europe during 2007, and the Group is now active in a total of 20 European insurance markets.
Along with UNIQA Versicherungen AG, the 2007 consolidated financial statements of the UNIQA Group include 35 domestic and 65 foreign companies. A total of 50 affiliated companies whose influence on an accurate presentation of the actual financial status of the assets, financial position and profitability was insignificant were not included in the consolidated financial statements. In addition, we included 14 domestic and two foreign companies as associates according to the equity accounting method. Ten associates were of minor importance, and their shares are recognised at market value.
The scope of consolidation of the UNIQA Group was expanded in the 2nd quarter of 2007, with the Serbian company UNIQA neživotno osiguranje a.d.o. and in the 4th quarter with UNIQA neživotno osiguranje a.d. in Montenegro, which were fully consolidated for the first time. The shares in the insurance holding company SIGAL Holding sH.A. in Albania were recognised under other shareholdings.
Details on the consolidated and associated companies are contained in the corresponding overview in the Group notes. The accounting and valuation methods used, as well as the changes in the scope of consolidation, are also explained in the Group notes.
The comprehensive risk report of the UNIQA Group is in the 2007 Group notes (cf. Group notes, p. 32ff.).
The following comments to the business development are 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 business lines of "property and casualty insurance", "life insurance" and "health insurance".
The UNIQA Group provides life and health insurance and is active in almost all lines of property and casualty insurance. With over 13 million insurance policies being managed at home and abroad, a gross premium volume written (including the savings portion of the unit-linked and index-linked life insurance) of €5.3 billion (2006: €5.1 billion) and capital investments of more than €21.5 billion (2006: €21.2 billion), the UNIQA Group is one of the leading insurance groups in Central and Eastern Europe.
In the 2007 financial year, the UNIQA Group was able to further improve its profits and earned a profit on ordinary activities that was 42.7% higher than the previous year at €340 million (2006: €238 million). Sales profitability was thereby increased to 8.3% (2006: 5.8%). Due to this development, the Management Board intends to propose a dividend payment of 50 cents per share to the Supervisory Board and the general assembly – an increase of 42.9% compared to the previous year.
1) Proposal to the Annual General Meeting.
Taking the savings portion of the unit-linked and index-linked life insurance in the amount of €748 million (2006: €559 million) into account, the total premium volume of the UNIQA Group grew in 2007 by 3.6% to €5,276 million (2006: €5,091 million). The total consolidated premiums written in 2007 remained at the level of the previous year at €4,528 million (2006: €4,532 million). While the area of recurring premium insurance developed satisfactorily with a growth of 4.4% to €4,602 million (2006: €4,410 million), the single-premium business declined by 1.2% to €673 million (2006: €681 million). The Group premiums earned, including the savings portion of the unit-linked and index-linked life insurance (after reinsurance) in the amount of €695 million (2006: €499 million), rose by 3.7% to €4,801 million (2006: €4,629 million). The retained premiums earned (according to IFRS) declined by 0.6% to €4,106 million (2006: €4,130 million).
incl. the savings portion of premiums from unit-linked and index-linked life insurance in € million
In 2007, 41.7% of the premium volume was contributed by property and casualty insurance (2006: 40.0%), 17.2% by health insurance (2006: 17.5%) and 41.1% by life insurance (2006: 42.5%).
In Austria, premium volume written, including the savings portion from the unit-linked and index-linked life insurance, increased in 2007 by 2.8% to €3,517 million (2006: €3,420 million). Including the savings portion from the unit-linked and index-linked life insurance, the premiums earned rose by 3.4% to €3,249 million (2006: €3,143 million). The retained premiums earned (according to IFRS) in Austria amounted to €2,885 in 2007 (2006: €2,916 million).
In the growth markets of Eastern and south-eastern Europe (CEE & EEM), the premium development was noticeably accelerated in 2007. Premium volume written, including the savings portion from the unit-linked and index-linked life insurance, increased in 2007 by 27.6% to €816 million (2006: €640 million). This put the share of Group premiums coming from CEE & EEM at 15.5% (2006: 12.6%). Including the savings portion from the unit-linked and index-linked life insurance, the premiums earned rose by 25.0% to €760 million (2006: €608 million). The retained premiums earned (according to IFRS) grew by 19.8% to €627 million (2006: €523 million).
In the Western European Markets (WEM), the premiums written in 2007 decreased by 8.7% to €942 million (2006: €1,031 million) due to the decline in the single-premium business. On the other hand, recurring premiums developed positively and grew by 4.5% to €688 million (2006: €658 million). Overall, the share in Group premiums in 2007 was 17.9% (2006: 20.3%). Including the savings portion from the unit-linked and index-linked life insurance, the premiums earned decreased by 9.7% to €793 million (2006: €878 million). The retained premiums earned (according to IFRS) fell by 13.9% to €594 million (2006: €690 million).
The insurance benefits before reinsurance of the UNIQA Group decreased in 2007 by 1.1% to €3,897 million (2006: €3,939 million). The consolidated retained insurance benefits even decreased last year by 3.2% to €3,597 million (2006: €3,716 million).
in € million
While the insurance benefits in Austria declined by 2.2% to €2,744 million (2006: €2,807 million), and in Western European Markets (WEM) by as much as 15.3% to €493 million (2006: €583 million), the insurance benefits in the Central and Eastern European regions (CEE & EEM) increased due to the rise in premium volume. Compared with the premium volume, however, they rose only moderately by 12.0% to €365 million (2006: €326 million).
Total consolidated operating expenses (cf. Group notes, no. 36) less reinsurance commissions and profit shares from reinsurance business ceded (cf. Group notes, no. 32) increased in the 2007 financial year by 9.2% to €1,056 million (2006: €967 million). Acquisition expenses before the change in deferred acquisition costs rose by 6.4% to €812 million (2006: €763 million). Taking into account the change in deferred acquisition costs, which represented an additional expense of €36 million in 2007 compared to the previous year, the acquisition expenses grew by 12.0% to €794 million (2006: €708 million). Other operating expenses less reinsurance commissions received rose only moderately by 1.4% to €262 million (2006: €258 million), in comparison with the increase in premium volume thanks to the cost-reduction measures implemented as part of the profit improvement programme.
In 2007, the cost ratio of the UNIQA Group after reinsurance, i.e. the relation of total operating expenses to the Group premiums earned, including the savings portion from the unit-linked and index-linked life insurance, was 22.0% (2006: 20.9%) due to an increase in expenses due to the change in deferred acquisition costs and lower reinsurance commissions received. Adjusted for the change in deferred acquisition costs, the cost ratio rose only slightly in 2007 to 22.4% (2006: 22.1%). The administrative cost ratio decreased in 2007 to 5.5% (2006: 5.6%).
Total investments, including land and buildings used by the Group, real estate held as investments, shares in associates and investments of unitlinked and index-linked life insurance, increased in 2007 by 1.8% to €21,544 million (2006: €21,155 million).
in € million
| 2004 | 16,598 | ||
|---|---|---|---|
| 2005 | 19,367 | ||
| 2006 | 21,155 | ||
| 2007 | 21,544 |
Net income from investments less financing costs rose by 10.4% to €955 million (2006: €865 million). This result can, primarily, be attributed to two effects: On the one hand, UNIQA benefited from exceptional profit through two capital increases by STRABAG SE in 2007, and was thereby able to increase the profit from associated companies to €303 million (2006: €45 million). On the other hand, the investment results in the second half of the year were influenced by the sub-prime crisis and the resulting expansion of the risk surcharges for refinancing in all credit markets and credit classes. The negative developments on the credit markets, among asset-backed securities (ABS) and on the stock markets, were only partially compensated for by falling interest rates in the bond markets. The negative performance of the ABS portfolio due to the sub-prime crisis and its revaluation ("mark-to-market") based on the drastically reduced liquidity encumbered the investment results with approximately €127 million – of which €101 million falls in the sub-prime area.
A detailed description of the investment income can be found in the Group notes. (cf. Group notes, No. 33)
The UNIQA Group's total equity increased in 2007 by €202 million to €1,532 million (31 Dec. 2006: €1,330 million). This included shares in other companies amounting to €196 million (31 Dec. 2006: €207 million). The pre-tax return on equity – the ratio of profit on ordinary activities to average total equity (without taking into consideration the included net profit for 2007) – rose significantly in the past financial year to 26.2% (2006: 20.8%). The total assets of the Group increased in the past financial year by 4.1% and totalled €25,589 million on 31 December 2007 (31 Dec. 2006: €24,587 million).
The cash flow from operating activities in 2007 was 846 million (2006: €1,237 million). Cash flow from investing activities of the UNIQA Group amounted to €–510 million (2006: €–1,280 million). There was an outflow of cash due to the acquisition of companies of €–53 million (2006: €–160 million). The financing cash flow in 2007 was €51 million (2006: €101 million). A total of €42 million were spent on the dividends from the 2006 financial year. The amount of liquid funds changed in total by €384 million (2006: €71 million). At the end of 2007, funds amounting to €647 million (2006: €263 million) were available.
The average number of employees in the UNIQA Group increased in 2007 to 10,997 (2006: 10,748). Of these, 4,273 (2006: 3,957) were in employed in sales and 6,724 (2006: 6,791) in administration. In the Eastern Emerging Markets (EEM), UNIQA employed a staff of 864 in 2007 (2006: 547), 2,987 people (2006: 2,930) in Central Eastern Europe (CEE) and 982 (2006: 989) in the Western European Markets (WEM). In Austria, 6,164 staff were employed (2006: 6,282). Including the employees of the GeneralAgencies working exclusively for UNIQA, the total staff of the UNIQA Group amounts to over 15,800 persons.
incl. employees of GeneralAgencies
Slightly over half of the administrative staff employed in Austria in 2007 were women, 18.2% (2006: 17.6%) of the employees were part-time. The average age in the past year was 42 years (2006: 43 years). In total, 10.5% (2006: 11.1%) of the managers participated in UNIQA's result-oriented remuneration system – a variable payment system that is tied both to the success of the company and to personal performance. In addition, the new UNIQA apprentice exchange programme offers young people in training the opportunity to get to know foreign cultures and make international contacts.
Due to the extremely positive development in the year 2007, the UNIQA Group was able to increase its premiums written by 7.9% to €2,198 million (2006: €2,037 million). Despite the sometimes intense competition situation, in the automotive segments in particular, the premium volume in Austria increased by 2.8% to €1,268 million (2006: €1,234 million). In the Central and Eastern European regions (CEE & EEM), the rapid growth continued in 2007 as well. The premiums written grew by 23.6% to €528 million (2006: €427 million), thereby contributing 24.0% (2006: 21.0%) to the Group premiums in property and casualty insurance. However, considerable growth was also achieved in the Western European markets (particularly in Italy and Germany), with premiums written in this region rising by 6.9% to €402 million (2006: €376 million). Overall, the international share of Group premiums in this segment was 42.3% (2006: 39.4%).
n Austria n CEE & EEM
n WEM
Details on premium volume written in the most important risk classes can be found in the Group notes (cf. Group notes no. 30).
The retained premiums earned (according to IFRS) in casualty and property insurance totalled €1,858 million at the end of the year (2006: €1,716 million) – representing an increase of 8.3%.
| Property and casualty insurance segment |
2007 € million |
2006 € million |
2005 € million |
2004 € million |
|---|---|---|---|---|
| Premiums written | 2,198 | 2,037 | 1,934 | 1,656 |
| Share CEE & NEEM | 24.0% | 21.0% | 18.7% | 18.6% |
| Share WEM | 18.3% | 18.5% | 19.6% | 13.4% |
| International share | 42.3% | 39.4% | 38.3% | 32.0% |
| Premiums earned (net) | 1,858 | 1,716 | 1,628 | 1,394 |
| Net investment income | 258 | 141 | 131 | 89 |
| Insurance benefits | –1,251 | –1,130 | –1,106 | –908 |
| Net loss ratio (after reinsurance) | 67.3% | 65.9% | 68.0% | 65.1% |
| Gross loss ratio (before reinsurance) | 67.9% | 64.1% | 66.4% | 63.6% |
| Operating expenses less reinsurance commissions |
–606 | –569 | –553 | –479 |
| Cost ratio (after reinsurance) | 32.6% | 33.2% | 34.0% | 34.4% |
| Administrative cost ratio (net after reinsurance) |
8.6% | 9.2% | 9.4% | 8.4% |
| Net-Combined ratio (after reinsurance) | 99.9% | 99.0% | 101.9% | 99.5% |
| Gross-Combined ratio (before reinsurance) |
98.7% | 95.4% | 98.2% | 95.8% |
| Profit on ordinary activities | 238 | 129 | 81 | 59 |
| Net profit | 193 | 104 | 54 | 53 |
Due to the storm losses over the course of the year and reserve-strengthening measures, the total retained insurance benefits increased in 2007 by 10.7% to €1,251 million (2006: €1,130 million). Insurance benefits increased in Austria by 7.0% to €765 million (2006: €715 million) and in Western European countries by 20.5% to €215 million (2006: €178 million) as a result of an accumulation of major losses. In the Central and Eastern European regions (CEE & EEM), insurance benefits were up only moderately – compared with the rise in business volume – by 14.7% to €237.2 million (2006: €272 million).
As a result of this development and despite the continued, consistent implementation of reorganisation measures and risk-oriented underwriting policies, the net loss ratio (retained insurance benefits relative to premiums earned) increased by 1.4 percentage points to 67.3% (2006: 65.9%). The gross loss ratio (before reinsurance) at the end of 2007 was 67.9% (2006: 64.1%). In Austria, the net loss ratio for the past financial year was 70.2% (2006: 67.9%) and in Western Europe 73.1% (2006: 67.2%), while in the CEE & EEM regions it amounted to 57.3% (2006: 59.7%).
The level of reserves in property and casualty insurance (retained technical provisions in relation to earned premiums) rose slightly again in 2007, reaching 112.2% at the end of the year (2006: 110.9%).
The total operating expenses less reinsurance commissions and profit shares from reinsurance business ceded increased in the property and casualty segment by 6.5% to €606 million (2006: €569 million) representing a lower rate of increase than the premiums. In the process, acquisition costs rose in line with premium income by 8.1% to €445 million (2006: €412 million), while other operating expenses increased only moderately by 2.1% to €160 million (2006: €157 million).
The cost ratio in property and casualty insurance sank in the past financial year to 32.6% (2006: 33.2%). The administrative cost ratio also declined 8.6% (2006: 9.2%). However, the net combined ratio increased due to the rise in the loss ratio and was at 99.9% in 2007 (2006: 99.0%). The combined ratio before reinsurance was 98.7% (2006: 95.4%). Excluding the losses from the storm "Kyrill", the net combined ratio was 99.2%, placing it only slightly above the level of the previous year. The adjusted combined ratio before reinsurance was 95.9%.
The net income from investments less financing costs increased in the past financial year by 83.4% to €258 million (2006: €141 million), primarily due to the exceptional profits from the capital increases of STRABAG SE. The capital investments in property and casualty insurance increased by 7.4% to €3,590 million (2006: €3,343 million).
Profit on ordinary activities increased in property and casualty insurance in 2007 by 85.0% to €238 million (2005: €129 million). Net profit was up by 86.2% to €193 million (2006: €104 million).
In comparison to the previous year, premiums written in health insurance increased by 2.0% to €908 million (2006: €890 million). In Austria, where UNIQA is the clear market leader, premiums of €724 million were achieved in 2007 (2006: €707 million). This was an increase of 2.3%. In the WEM region, health insurance premiums remained below the level of the previous year at €180 million (2006: €180 million). In the countries of Eastern and south-eastern Europe, private health insurance continued to play a subordinate role, with premiums income of €4 million (2006: €3 million). Overall, the international share in the total health insurance premiums in 2007 was 20.3% (2006: 20.5%).
In 2007, the retained premiums earned in health insurance totalled €906 million at the end of the year (2005: €887 million), amounting to an increase of 2.1%.
in € million
| 2004 | 673 | 71 745 |
||
|---|---|---|---|---|
| 2005 | 694 | 152 | 845 | |
| 2006 | 707 | 182 | 890 | |
| 2007 | 724 | 184 | 908 |
n Austria n International
| Health insurance segment | 2007 € million |
2006 € million |
2005 € million |
2004 € million |
|---|---|---|---|---|
| Premiums written | 908 | 890 | 845 | 745 |
| International share | 20.3% | 20.5% | 17.9% | 9.6% |
| Premiums earned (net) | 906 | 887 | 849 | 742 |
| Net investment income | 134 | 114 | 101 | 81 |
| Insurance benefits | –811 | –806 | –773 | –675 |
| Acquisition expenses less reinsurance commissions |
–129 | –137 | –131 | –119 |
| Cost ratio (net after reinsurance) | 14.3% | 15.4% | 15.4% | 16.1% |
| Administrative cost ratio | 4.8% | 5.6% | 6.2% | 7.1% |
| Profit on ordinary activities | 96 | 54 | 41 | 24 |
| Net profit | 72 | 35 | 35 | 20 |
Despite the increased business volume, insurance benefits only rose marginally by 0.7% to €811 million (2006: €806 million). This lowered the benefits ratio after reinsurance to 89.6% (2006: 90.9%). In Austria, insurance benefits also exhibited only moderate growth in comparison with the increase in premiums, increasing by 0.6% to €649 million (2006: €644 million). The insurance benefits in the international markets also hardly increased and totalled €163 million in 2007 (2006: €161 million).
Total operating expenses less reinsurance commissions and profit shares from reinsurance business ceded fell significantly in 2007 by 5.5% to €129 million (2006: €137 million). Acquisition expenses declined by 1.1% to €86 million (2006: €87 million). Other operating expenses for health insurance decreased even more significantly by 13.2% to €43 million (2006: €50 million) despite the increase in premium volume. As a result of this development, the cost ratio in health insurance decreased in 2007 to 14.3% (2006: 15.4%). The administrative cost ratio decreased to 4.8% (2006: 5.6%).
Net income from investments less financing costs rose in 2007 by 17.3% to €134 million (2006: €114 million). In the health insurance segment, capital investments grew by 1.0% to €2.087 million (2006: €2,067 million).
Profit on ordinary activities in health insurance rose again in the reporting year by 79.7% to €96 million (2006: €54 million). Net profit was up by 107.3% to €72 million (2006: €35 million).
The life insurance premium volume written, including the savings portion from the unit-linked and index-linked life insurance, increased in 2007 by 0.3% to €2,170 million (2006: €2,164 million). Revenues from policies with recurring premium payments rose by 0.9% to €1,497 million (2006: €1,483 million). In the single-premium business, the classic single premiums decreased by 39.1% to €221 million (2006: €363 million), while the single premiums in the area of unit-linked life insurance climbed by 41.9% to €452 million (2006: €318 million). Overall, the single-premium business declined by 1.2% to €673 million (2006: €681 million).
incl. the savings portion of premiums from unit-linked and index-linked life insurance in € million
| 2004 | 1,277 72 28 |
1,377 | |||
|---|---|---|---|---|---|
| 2005 | 1,498 119 | 334 | 1,951 | ||
| 2006 | 1,479 | 210 | 475 | 2,164 | |
| 2007 | 1,525 | 285 | 360 | 2,170 |
Although the premium development in Austria was encumbered by the loss of premium income from contracts with a reduced payment term once again in 2007, the premium volume still rose by 3.1% to €1,525 million (2006: €1,479 million), due to the continued growth in unit-linked life insurance products. The income from contracts with recurring premium payment remained at the level of the previous year at €1,285 million (2006: €1,287 million). The single-premium business increased in the past financial year by 25.7% to €241 million (2006: €191 million) – driven by the single premiums in unit-linked life insurance. The Group companies in the Central and Eastern European regions (CEE & EEM) enjoyed significantly greater growth in the life insurance segment. The premium volume written, including the savings portion from the unit-linked and index-linked life insurance, increased by 35.4% to €285 million (2006: €210 million). The share of life insurance from these countries thus already amounted to 13.1% in 2007 (2006: 9.7%). In Western European Markets (WEM), on the other hand, premium volumes decreased by 24.3% to €360 million (2006: €475 million), due to the decline in the single-premium business in Italy. In contrast, the recurring premium volumes saw satisfactory developments with a growth of 3.4% to €106 million (2006: €103 million). Overall, the WEM region contributed 16.6% (2006: 22.0%) to the total life insurance premiums of the Group.
The risk premium share of unit-linked and index-linked life insurance included in the consolidated financial statements totalled €86 million in 2007 (2006: €67 million). The savings portion of the unit-linked and index-linked life insurance lines amounted to €748 million (2006: €559 million) and was, in accordance with FAS 97 (US-GAAP), balanced out by the changes in the actuarial provision.
Including the savings portion of the unit-linked and index-linked life insurance (after reinsurance) in the amount of €695 million (2006: €499 million), the premiums earned in life insurance rose by 0.5% to €2,037 million (2006: €2,027 million). The retained premiums earned (according to IFRS) fell by 12.1% in 2007 to €1,342 million (2006: €1,527 million).
| Life insurance segment | 2007 | 2006 | 2005 | 2004 |
|---|---|---|---|---|
| € million | € million | € million | € million | |
| Premiums written | 1,422 | 1,605 | 1,591 | 1,199 |
| Savings portion of premiums from unit-linked and index-linked |
||||
| life insurance | 748 | 559 | 360 | 178 |
| Premiums written incl. savings portion of premiums from unit-linked and |
||||
| index-linked life insurance | 2,170 | 2,164 | 1,951 | 1,377 |
| Share CEE & NEEM | 13.1% | 9.7% | 6.1% | 5.2% |
| Share WEM | 16.6% | 22.0% | 17.1% | 2.1% |
| International share | 29.7% | 31.7% | 23.2% | 7.3% |
| Premiums earned (net) | 1,342 | 1,527 | 1,523 | 1,166 |
| Savings portion of premiums from unit-linked and index-linked |
||||
| life insurance (net after reinsurance) | 695 | 499 | 311 | 129 |
| Premiums earned (net) incl. the savings portion of premiums from unit-linked |
||||
| and index-linked life insurance | 2,037 | 2,027 | 1,834 | 1,295 |
| Net investment income | 563 | 610 | 731 | 580 |
| Insurance benefit | –1,534 | –1,780 | –1,898 | –1,451 |
| Operating expenses less reinsurance commissions and change in deferred |
||||
| acquisition costs | –328 | –304 | –284 | –253 |
| Cost ratio | 16.1% | 15.0% | 15.5% | 19.6% |
| Other operating expenses less insurance commissions |
–321 | –261 | –244 | –231 |
| Cost ratio (net after reinsurance) | 15.7% | 12.9% | 13.3% | 17.8% |
| Administrative cost ratio (net after reinsurance) |
2.9% | 2.6% | 4.2% | 5.6% |
| Profit on ordinary activities | 5 | 56 | 69 | 39 |
| Net profit | 4 | 37 | 44 | 29 |
The retained insurance benefits saw heavy declines out of proportion with the decline in earned premiums, falling by 13.8% to €1,534 million (2006: €1,780 million). Insurance benefits also decreased in Austria by 8.5% to €1,326 million (2006: €1,448 million). While insurance benefits in Western Europe (WEM) decreased by as much as 51.6% to €118 million (2006: €244 million), they increased in Central and Eastern Europe (CEE & EEM) by only 3.7% to €91 million (2006: €87 million) despite the strong premium growth.
The international premium volume of the UNIQA Group, including the savings portion from unit-linked and index-linked life insurance, rose in 2007 by 5.2% to €1,758 million (2006: €1,671 million), primarily, as a result of the strong organic growth of the companies in Eastern and southeastern Europe. This brought the international share of Group premiums up to 33.3% (2006: 32.8%).
incl. the savings portion of premiums from unit-linked and index-linked life insurance in € million
n WEM
Including the savings portion from the unit-linked and index-linked life insurance (after reinsurance), the premiums earned increased by 4.5% to €1,552 million (2006: €1,486 million). The retained premiums earned (according to IFRS) increased by 0.6% to €1,221 million (2006: €1,213 million).
Total operating expenses in life insurance less reinsurance commissions and profit shares from reinsurance business ceded rose in 2007 by 22.7% to €321 million (2006: €261 million). Acquisition expenses increased by 25.1% to €262 million (2006: €210 million) due to the satisfactory new business volume. In line with the development of new business, an increase in expenses due to the change in deferred acquisition costs in the amount of €36 million was also observed in 2007. Reinsurance commissions received decreased by €10 million to €11 million (2006: €21 million), while other operating expenses increased by 13.0% to €58 million (2006: €52 million). As a result of this development, the cost ratio in life insurance, i.e. the relation of all claims incurred to the Group premiums earned, including the savings portion from the unit-linked and index-linked life insurance, rose to 15.7% (2006: 12,9%). Adjusted for the change in deferred acquisition costs, the cost ratio in 2007 was 16.1% (2006: 15.0%). The administrative cost ratio increased slightly to 2.9% (2006: 2.6%).
The net income from investments less financing costs declined in the reporting year by 7.7% to €563 million (2006: €610 million), due in part to consequences of the sub-prime crisis). The capital investments, including the investments for unit-linked and index-linked life insurance, increased in 2007 by 0.8% to €15,867 million (2006: €15,745 million).
Due to the declining investment income and the profit-sharing allocations far exceeding the statutory requirements, the profit on ordinary activity in life insurance fell to €5 million (2006: €56 million). Net profit was down to €4 million (2006: €37 million).
The countries of Eastern and south-eastern Europe achieved very high growth rates in 2007, and were able to increase their total premiums written by 27.6% to €816 million (2006: €640 million). Due primarily to the dynamisation projects implemented in most of these countries in order to increase organic growth, the growth in 2007 was far above the growth in the respective markets. In the Eastern Emerging Markets, the premium volume grew by as much as 81.0% to €81 million (2006: €45 million). Overall, the CEE & EEM regions already contributed 15.5% (2006: 12.6%) to the Group premiums.
In Western Europe, the year 2007 was characterised by the weak performance of the single-premium business in Italy. The premiums written declined as a result by 8.7% to €942 million (2006: €1,031 million). The recurring premium business improved in Italy by 4.4% to €90 million (2006: €86 million). Growth was satisfactory in Germany as well at 2.8% to €406 million (2006: €395 million). In 2007, The WEM region contributed 17.9% (2006: 20.3%) to the Group premiums.
The premium volume written, including the savings portion from the unitlinked and index-linked life insurance, was divided as follows among the various regions in the UNIQA Group:
| UNIQA international markets |
Premiums written1) | Share of Group premiums |
|||
|---|---|---|---|---|---|
| 2007 € million |
2006 € million |
2005 € million |
2004 € million |
2007 % |
|
| Central Eastern Europe (CEE) |
735 | 595 | 482 | 381 | 13.9 |
| Eastern Emerging Markets (EEM) |
81 | 45 | 0 | 0 | 1.5 |
| Western European Markets (WEM) |
942 | 1,031 | 863 | 320 | 17.9 |
| Total international | 1,758 | 1,671 | 1,345 | 701 | 33.3 |
1) Incl. the savings portion of premiums from unit-linked and index-linked life insurance.
The total insurance benefits in the international Group companies increased 5.5% in 2006 to €858 million (2005: €908 million). Consolidated operating expenses less reinsurance commissions and profit shares from reinsurance business ceded rose in the past financial year by 21.1% to €419 million (2006: €346 million).
The profit on ordinary activities earned by the companies in the three regions outside of Austria declined in 2007 prior to consolidation on the basis of geographic segments (see segment reporting) to €53 million (2006: €64 million) due to the pressure on the results of UNIQA Re from storm losses and the companies being established in the EEM. This amounted to a share in the Group results of 14.2% (2006: 26.2%).
The closing for the acquisition of 45.6% of the insurance group SIGAL Holding sH.A. in Albania, took place on 12 February 2008. The increase of the investment in the Ukrainain company Credo-Classic from 35.3% to 61.0% closed on 19 February 2008.
After the successful achievement in 2007 of all goals of the Profit Improvement Programme (PIP), the PIP will be continued as planned again in 2008. The focus is on achieving a cost, claims and profit structure that is comparable to international benchmark companies. The goal of the PIP is sustained improvement in the Group's pre-tax profits to €430 million in the year 2010. The PIP is based on a number of action plans intended to secure long-term achievement of this ambitious goal.
UNIQA will consistently continue on its path of further improvement in technical results in the 2008 financial year as well. The goal is a sustained improvement in profit through stabilisation of the loss ratios at a low level. One focus will be the accumulation of weather extremes in recent years. Special attention will be paid in the area of elementary insurance to accounting for risk zones according to the Austrian flood risk zoning system (HORA), with regard to floods and earthquakes. Another area to be observed is the development of the loss ratios in burglary and water-damage insurance. The crime rate has slackened somewhat; however, it can hardly be considered a trend reversal. With more precise observation, it can be seen that the number of burglaries is declining, but the amount of average losses is increasing. Losses from the storms "Paula" and "Emma" in the 1st quarter of 2008 are expected to encumber the 2008 profit by approximately €30 million.
In the area of premium definition, the focus is on expanding and refining scoring models for achieving individual and risk-appropriate premium definitions. This strategy has been successfully implemented in the private segment and will also be implemented in the business segment as of 2008. In the area of legal expenses insurance, UNIQA expects to continue in 2008 its profitable growth exceeding that of the market. In 2008, Raiffeisen Versicherung will promote automotive, home and flat insurance products within the framework of the spring campaign, and will offer its advantage customers the already successful severe weather warnings within the framework of "My secure advantage".
The reduction of complexity will be an important component of the strategy for 2008. This consists of two main components – continuing with standardisation of the product world as well as optimisation of the processing procedures.
In the corporate customer business, UNIQA consciously relies on highquality insurance protection and innovative product ideas, in order to counteract the price pressures that are clearly noticeable in this segment. For example, we concluded a framework agreement in 2007 with the Austrian Association of Real Estate Trustees, in order to insure the liability of this professional group, for which mandatory insurance is required by law as of the first half of 2008.
UNIQA offers risk management against legionnaires' disease to the hospitals we insure, in order to set new standards in this area and to offer our policy holders the highest quality of insurance protection. In the area of alternative energy, UNIQA is planning to develop a combined property and liability insurance product during 2008, in order to offer simple and customised insurance solutions in these areas for this future technology.
In corporate customer business, such as the SuccessPartnership, a customer advantage programme with a selection of supplemental services for freelancers, farmers and small and medium-sized businesses will be strongly promoted. Over 7,000 new partnerships are expected for the first full year. This service and customer loyalty instrument should reduce cancellation rates and bind customers more strongly to UNIQA through the claims-based SuccessBonus. Cross-selling will be heavily expanded in the corporate customer business through additional trainings and centrally supported campaigns.
One of the hot topics during the last few months of the year 2007 was the implementation of the unisex directive. Nearly the entire product range was recalculated in order to comply with the requirement of distributing the costs associated with pregnancy equally among men and women, for all contracts concluded as of 1 December 2007. The redesign was used as an occasion for some product improvements that will enter into effect in the year 2008. The protection and service concept of the core product "special class insurance" was expanded with the following new features:
The idea of allowing health insurance to grow along with the various needs of different phases of life was introduced with the product "FirstCare". The coverage ranges here from costs for the accompaniment of small children in hospital to accident costs for youths to serious illnesses in adults, with the added option of a discounted switch to full special-class insurance. The further development of the life-cycle concept and the associated additional flexibility of the health insurance protection will be key points for the current year.
This will also be one of the answers of Mannheimer Krankenversicherung AG, a member of the UNIQA Group, to the health reform being realised this year in Germany. Mannheimer Krankenversicherung will, in this way, continue its path as an innovative service-oriented insurance company in the premium segment.
The "Expatriate" product concept developed according to plan during 2007 and now available, will be important for the entire UNIQA Group. This product allows individually customised insurance solutions to be offered to people who will be living abroad temporarily for periods longer than a year, with the inclusion, if desired, of corresponding follow-on insurance after the end of the time abroad. Particularly for people who were already insured with UNIQA, the opportunity to return to this insurance without disadvantages is of great importance. The option for Austrian companies to insure even their non-Austrian employees while working abroad is also worth highlighting. Especially in high-level management positions, optimal coverage in the event of an illness is a "fringe benefit" in high demand, and a decisive competitive advantage in the Central and Eastern European employment market.
The big breakthrough toward a developed private health insurance market in Eastern and south-eastern Europe is still not in sight for 2008. Regardless of this, UNIQA is evaluating selected markets for the implementation of a product concept that combines services and insurance protection at various levels in cooperation with health care service providers, as well as with institutions not yet established.
The UNIQA Group offers a comprehensive selection of classic and unitlinked life insurance products as well as private nursing care insurance.
One focus of the UNIQA sales and marketing activities in 2008 will be the innovative product FlexSolution, which is being realised within the framework of the new future provisions platform and combines the advantages of classic and unit-linked life insurance within a single contract. The future provisions solution accompanies the customer throughout his or her life and can be flexibly adapted to changed life circumstances and customer needs, making it an optimal solution for actively reacting to life cycles or a specific market situation.
Private insurance companies and state-subsidised future provisions will also be extremely important during 2008. UNIQA is always "in tune with the times" and develops new products and product features:
As bank insurer for the Austrian Raiffeisen banks, Raiffeisen Versicherung will reintroduce Raiffeisen personal protection in March 2008. This product, introduced as an innovation to the Austrian insurance market in 1983, combines life insurance and casualty insurance with special advantages. Raiffeisen personal protection is specially oriented toward target groups who would like to secure their credit and establish provisions for the future at the same time.
Some flexible and customer-oriented offers are also planned within the comprehensive life insurance product line. These include dynamisation of capital insurance contracts with an arbitrary percentage and arbitrary years, as well as the option of flexibly selectable mixed life insurance protection. This variant is particularly intended for the 20- to 40-year-old target group, who would like to secure credit and provide for the future. The future provisions can be continuously adapted to the customer's individual life circumstances.
At the end of the first half of 2008, a life insurance variant with fixed payout sums and instalments is planned at Raiffeisen Versicherung. This offer will be directed toward customers who would like to rely on a fixed minimum pay-out amount for their plans, or financial coverage upon ending of the contract.
Internationally, the UNIQA Group will further intensify its cooperation with the Raiffeisen bank group in Eastern and south-eastern Europe during 2008. The focus in the product area will continue to be combined banking and insurance products, as well as preparation for the staged introduction of capital-forming life insurance products. The know-how transfer in Albania will be intensified after the acquisition of 45.6% of SIGAL and the first successful placement of newly developed life insurance products on the market.
The individual accounts of UNIQA Versicherungen AG, prepared in accordance with the Austrian Business Code, report an annual net profit for the 2007 financial year of €60,036,789.70 (2006: €42,036,959.37). The Management Board shall thus recommend to the Annual General Meeting on 19 May 2008, that the annual net profit be distributed as a dividend of 50 cents on each of the 119,777,808 individual share certificates issued at the balance sheet date and entitled to receive a dividend, and that the remaining amount be carried forward to a new account.
rule that when a Supervisory Board member turns 70 years of age, he or she shall be retired from the Supervisory Board at the end of the next Annual General Meeting.
Vienna, 7 April 2008
Konstantin Klien Chairman of the Management Board
Hannes Bogner Member of the Management Board
Andreas Brandstetter Member of the Management Board
Karl Unger Member of the Management Board
Gottfried Wanitschek Member of the Management Board
as at 31 December 2007
| Assets | Notes | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|---|---|
| A. | Tangible assets | |||
| I. | Self-used land and buildings 1 |
227,187 | 233,997 | |
| II. | Other tangible assets 2 |
138,030 | 111,113 | |
| 365,218 | 345,110 | |||
| B. | Land and buildings held as financial investments 3 |
1,014,259 | 927,456 | |
| C. | Intangible assets | |||
| I. | Deferred acquisition costs 4 |
873,462 | 863,430 | |
| II. | Goodwill 5 |
293,458 | 253,064 | |
| III. | Other intangible assets 6 |
39,273 | 47,167 | |
| 1,206,193 | 1,163,661 | |||
| D. | Shares in associated companies 7 |
506,654 | 371,998 | |
| E. | Investments | |||
| I. | Variable-yield securities | |||
| 1. Available for sale 8 |
3,969,512 | 3,462,337 | ||
| 2. At fair value through profit or loss | 975,953 | 1,025,332 | ||
| 4,945,465 | 4,487,668 | |||
| II. | Fixed interest securities | |||
| 1. Held to maturity | 0 | 0 | ||
| 2. Available for sale 8 |
10,072,617 | 10,634,769 | ||
| 3. At fair value through profit or loss | 496,638 | 508,599 | ||
| 10,569,255 | 11,143,369 | |||
| III. | Loans and other investments | |||
| 1. Loans 10 |
982,480 | 1,034,044 | ||
| 2. Cash at credit institutions 11 |
649,313 | 802,106 | ||
| 3. Deposits with ceding companies 11 |
118,908 | 105,678 | ||
| 1,750,700 | 1,941,827 | |||
| IV. | Derivative financial instruments | |||
| 1. Variable-yield derivatives 9 |
17,977 | 41,144 | ||
| 2. Fixed interest derivatives 9 |
42,252 | 54,826 | ||
| 60,228 | 95,970 | |||
| 17,325,648 | 17,668,834 | |||
| F. | Investments held on account and at risk of life insurance policyholders 23 |
2,470,340 | 1,952,897 | |
| G. | Share of reinsurance in technical provisions | |||
| I. | Provision for unearned premiums 18 |
7,902 | 31,031 | |
| II. | Actuarial provision 19 |
408,653 | 384,279 | |
| III. | Provision for outstanding claims 20 |
351,617 | 322,567 | |
| IV. | Provision for profit-unrelated premium refunds 21 |
365 | 315 | |
| V. | Provision for profit-related premium refunds, i.e. policyholder profit sharing 21 |
100 | 100 | |
| VI. | Other technical provisions | 3,029 | 2,656 | |
| 22 | 771,666 | 740,947 | ||
| H. | Share of reinsurance in technical provisions for life insurance policies where the investment risk is borne by policyholders 23 |
346,868 | 305,580 | |
| I. | Receivables including receivables under insurance business 12 |
|||
| I. | Reinsurance receivables | 67,795 | 36,298 | |
| II. | Other receivables | 695,198 | 634,784 | |
| III. | Other assets | 43,383 | 37,150 | |
| 806,377 | 708,233 | |||
| J. | Receivables from income tax 13 |
51,253 | 54,249 | |
| K. | Deferred tax assets 14 |
77,055 | 85,000 | |
| L. | Liquid funds | 647,133 | 263,164 | |
| Total assets | 25,588,664 | 24,587,131 | ||
| Equity and liabilities Notes |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
||
|---|---|---|---|---|
| A. | Total equity | |||
| I. | Shareholders' equity 15 |
|||
| 1. Subscribed capital and capital reserves | 206,305 | 206,305 | ||
| 2. Revenue reserves | 885,532 | 692,161 | ||
| 3. Revaluation reserves | 184,506 | 181,982 | ||
| 4. Group total profit | 60,037 | 42,037 | ||
| 1,336,380 | 1,122,485 | |||
| II. | Minority interests in shareholders' equity 16 |
195,843 | 207,299 | |
| 1,532,223 | 1,329,784 | |||
| B. | Subordinated liabilities 17 |
575,000 | 475,000 | |
| C. | Technical provisions | |||
| I. | Provision for unearned premiums 18 |
429,985 | 389,987 | |
| II. | Actuarial provision 19 |
15,166,700 | 14,942,474 | |
| III. | Provision for outstanding claims 20 |
2,191,671 | 2,022,881 | |
| IV. | Provision for profit-unrelated premium refunds 21 |
48,231 | 48,027 | |
| V. | Provision for profit-related premium refunds, i.e. policyholder profit sharing 21 |
389,796 | 752,647 | |
| VI. | Other technical provisions | 38,492 | 43,461 | |
| 22 | 18,264,874 | 18,199,478 | ||
| D. | Technical provisions for life insurance policies held on account and at risk of policyholders 23 |
2,412,937 | 1,911,516 | |
| E. | Financial liabilities | |||
| I. | Liabilities from loans 24 |
185,900 | 193,526 | |
| II. | Derivatives 9 |
12,342 | 1,209 | |
| 198,242 | 194,734 | |||
| F. | Other provisions | |||
| I. | Pensions and similar provisions 25 |
509,541 | 542,418 | |
| II. | Other provisions 26 |
194,272 | 179,900 | |
| 703,813 | 722,319 | |||
| G. | Payables and other liabilities 27 |
|||
| I. | Reinsurance liabilities | 796,780 | 724,329 | |
| II. | Other payables | 720,778 | 655,096 | |
| III. | Other liabilities | 9,483 | 8,232 | |
| 1,527,041 | 1,387,657 | |||
| H. | Liabilities from income tax 28 |
41,618 | 66,754 | |
| I. | Deferred tax liabilities 29 |
332,916 | 299,889 | |
| Total equity and liabilities | 25,588,664 | 24,587,131 |
for the 2007 business year
| Notes | 2007 € 000 |
2006 € 000 |
|
|---|---|---|---|
| 1. | Premiums written (retained) 30 |
||
| a) Gross | 4,527,889 | 4,532,137 | |
| b) Reinsurers' share | –388,449 | –372,366 | |
| 4,139,440 | 4,159,771 | ||
| 2. | Change due to premiums earned (retained) | ||
| a) Gross | –38,243 | –31,152 | |
| b) Reinsurers' share | 5,180 | 1,048 | |
| –33,063 | –30,104 | ||
| 3. | Premiums earned (retained) 31 |
||
| a) Gross | 4,489,647 | 4,500,985 | |
| b) Reinsurers' share | –383,269 | –371,318 | |
| 4,106,377 | 4,129,666 | ||
| 4. | Income from fees and provisions 32 |
||
| Reinsurance provisions and profit shares from reinsurance business ceded | 71,426 | 80,865 | |
| 5. | Net investment income 33 |
993,005 | 890,342 |
| of which profit from associated companies | 303,075 | 45,017 | |
| 6. | Other income 34 |
37,131 | 41,884 |
| Total income | 5,207,939 | 5,142,757 | |
| 7. | Insurance benefits (net) 35 |
||
| a) Gross | –3,891,922 | –3,938,925 | |
| b) Reinsurers' share | 294,897 | 223,290 | |
| –3,597,024 | –3,715,635 | ||
| 8. | Operating expenses 36 |
||
| a) Acquisitions costs | –793,661 | –708,444 | |
| b) Other operating expenses | –333,443 | –339,361 | |
| –1,127,104 | –1,047,805 | ||
| 9. | Other expenses 37 |
–86,569 | –107,024 |
| 10. | Amortisation of goodwill | –19,095 | –8,448 |
| Total expenses | –4,829,792 | –4,878,912 | |
| 11. | Operating profit | 378,147 | 263,845 |
| 12. | Financing costs | –37,891 | –25,359 |
| 13. | Profit on ordinary activities | 340,256 | 238,487 |
| 14. | Income taxes 38 |
–71,263 | –63,422 |
| 15. | Net profit | 268,993 | 175,065 |
| of which consolidated profit | 247,103 | 151,900 | |
| of which minority interests | 21,889 | 23,165 | |
| Earnings per share1) in € 15 |
2.07 | 1.27 | |
| Average number of shares in circulation | 119,427,808 | 119,427,808 |
1) The diluted earnings per share are equal to the undiluted earnings per share. Calculated on the basis of the consolidated profit.
for the 2007 business year
| 2007 € 000 € 000 Net profit including minority interests Net profit 268,993 175,065 of which interest and dividend payments 3,378 Minority interests –21,889 Change in technical provisions 494,741 Change in deferred acquisition costs –10,032 Change in amounts receivable and payable from direct insurance 58,399 Change in other amounts receivable and payable –61,491 Change in securities at fair value through profit or loss 97,082 Realised gains/losses on the disposal of investments –144,154 Depreciation/appreciation of other investments 185,077 Change in provisions for pension and severance payments –32,878 Change in deferred tax assets/liabilities 37,881 Change in other balance sheet items 465 Change in goodwill and intangible assets –32,078 Other non-cash income and expenses as well as accounting period adjustments 6,067 Net cash flow from operating activities 846,183 of which cash flow from income tax –45,599 Receipts due to disposal of consolidated companies and other business units 207,869 Payments due to acquisition of consolidated companies and other business units –53,403 Receipts due to disposal and maturity of other investments 12,125,000 Payments due to acquisition of other investments –12,272,398 Change in investments held on account and at risk of life insurance policyholders –517,443 Net cash flow used in investing activities –510,375 Change in investments on own shares 0 Dividend payments –41,800 Receipts and payments from other financing activities 92,375 Net cash flow used in financing activities 50,575 Change in cash and cash equivalents 386,384 Change in cash and cash equivalents due to foreign currency translation –2,666 Change in cash and cash equivalents due to acquisition/disposal of consolidated companies 252 Cash and cash equivalents at beginning of period 263,164 Cash and cash equivalents at end of period 647,133 |
||
|---|---|---|
| 2006 | ||
| 54,651 | ||
| –23,165 | ||
| 1,372,731 | ||
| –55,965 | ||
| 53,830 | ||
| 121,029 | ||
| –184,484 | ||
| –468,225 | ||
| 211,661 | ||
| 19,291 | ||
| 13,542 | ||
| –5,714 | ||
| 1,737 | ||
| 5,638 | ||
| 1,236,972 | ||
| –115,688 | ||
| 59,807 | ||
| –159,821 | ||
| 9,488,763 | ||
| –10,208,539 | ||
| –460,656 | ||
| –1,280,446 | ||
| 0 | ||
| –31,051 | ||
| 131,794 | ||
| 100,743 | ||
| 57,268 | ||
| 911 | ||
| 12,961 | ||
| 192,024 | ||
| 263,164 | ||
| of which cash flow from income tax –45,599 |
–115,688 | |
The cash and cash equivalents correspond to item L. of the assets: Liquid funds.
| Subscribed capital | Revaluation | Revenue reserves | |
|---|---|---|---|
| and capital reserves | reserve | including reserves for own shares |
|
| € 000 | € 000 | € 000 | |
| Situation as at 31 Dec. 2005 | 206,305 | 116,433 | 578,950 |
| Changes for: | |||
| Foreign currency translation | 4,962 | ||
| Change in consolidation scope | |||
| Unrealised capital gains and losses from evaluation at equity | |||
| Dividends to shareholders | |||
| Own shares | |||
| Unrealised capital gains and losses from investments | 65,549 | ||
| Net profit for the period | |||
| Changes in revenue reserves | 109,661 | ||
| Changes in capital reserves | |||
| Other | 1,149 | ||
| Situation as at 31 Dec. 2006 | 206,305 | 181,982 | 694,722 |
| Changes for: | |||
| Foreign currency translation | 3,771 | ||
| Change in consolidation scope | |||
| Unrealised capital gains and losses from evaluation at equity | 1,894 | ||
| Dividends to shareholders | |||
| Own shares | |||
| Unrealised capital gains and losses from investments | 2,524 | ||
| Net profit for the period | |||
| Changes in revenue reserves | 187,304 | ||
| Changes in capital reserves | |||
| Other | 402 | ||
| Situation as at 31 Dec. 2007 | 206,305 | 184,506 | 888,093 |
| Equity Minority interests |
Profits carried forward and net profit |
Holding of own shares |
|---|---|---|
| € 000 € 000 |
for the year € 000 |
€ 000 |
| 930,449 203,226 |
31,321 | –2,561 |
| 4,962 | ||
| 4,975 | ||
| –31,051 –9,848 |
–31,051 | |
| 65,549 –14,218 |
||
| 151,900 23,165 |
151,900 | |
| –109,661 | ||
| 676 | –473 | |
| 1,122,485 207,299 |
42,037 | –2,561 |
| 3,771 | ||
| –5,355 | ||
| 1,894 244 |
||
| –41,800 –10,304 |
–41,800 | |
| 2,524 –17,930 |
||
| 247,103 21,889 |
247,103 | |
| –187,304 | ||
| 402 | ||
| 1,336,380 195,843 |
60,037 | –2,561 |
| Property and casualty | Health | ||||
|---|---|---|---|---|---|
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
||
| Assets | |||||
| A. Tangible assets |
220,276 | 202,477 | 15,727 | 15,993 | |
| B. Land and buildings held as financial investments |
329,023 | 334,423 | 179,540 | 181,204 | |
| C. Intangible assets |
323,265 | 284,162 | 215,600 | 215,067 | |
| D. Shares in associated companies |
367,836 | 270,794 | 59,048 | 19,929 | |
| E. Investments |
2,848,992 | 2,707,690 | 1,854,097 | 1,877,779 | |
| F. Investments held on account and at risk of life insurance policyholders |
0 | 0 | 0 | 0 | |
| G. Share of reinsurance in technical provisions |
350,810 | 346,393 | 2,482 | 2,681 | |
| 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 incl. receivables under insurance business |
610,462 | 682,119 | 201,110 | 174,445 | |
| J. Receivables from income tax |
21,108 | 26,853 | 3,108 | 1,019 | |
| K. Deferred tax assets |
70,848 | 74,770 | 3,210 | 6,310 | |
| L. Liquid funds |
105,935 | 95,637 | 157,909 | 15,873 | |
| Total segment assets | 5,248,556 | 5,025,318 | 2,691,832 | 2,510,300 | |
| Equity and liabilities | |||||
| B. Subordinated liabilities |
335,000 | 235,000 | 0 | 0 | |
| C. Technical provisions |
2,435,552 | 2,250,311 | 2,348,345 | 2,223,393 | |
| D. Technical provisions for life insurance policies held on account and at risk of policyholders |
0 | 0 | 0 | 0 | |
| E. Financial liabilities |
169,000 | 185,419 | 1,386 | 0 | |
| F. Other provisions |
665,029 | 681,973 | 8,833 | 8,195 | |
| G. Payables and other liabilities |
898,741 | 835,028 | 30,103 | 89,747 | |
| H. Liabilities from income tax |
31,472 | 42,667 | 4,614 | 10,414 | |
| I. Deferred tax liabilities |
233,629 | 200,188 | 64,226 | 44,871 | |
| Total segment liabilities | 4,768,424 | 4,430,587 | 2,457,506 | 2,376,621 |
| Group | Consolidation | Life | |||
|---|---|---|---|---|---|
| 31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
| 345,110 | 365,218 | 0 | 0 | 126,641 | 129,215 |
| 927,456 | 1,014,259 | 0 | 0 | 411,829 | 505,697 |
| 1,163,661 | 1,206,193 | 0 | 0 | 664,432 | 667,328 |
| 371,998 | 506,654 | 0 | 0 | 81,275 | 79,770 |
| 17,668,834 | 17,325,648 | –211,537 | –170,433 | 13,294,902 | 12,792,992 |
| 1,952,897 | 2,470,340 | 0 | 0 | 1,952,897 | 2,470,340 |
| 740,947 | 771,666 | 0 | 0 | 391,873 | 418,374 |
| 305,580 | 346,868 | 0 | 0 | 305,580 | 346,868 |
| 708,233 | 806,377 | –565,834 | –437,017 | 417,502 | 431,821 |
| 54,249 | 51,253 | 0 | 0 | 26,377 | 27,036 |
| 77,055 | 0 | 0 | 3,921 | 2,997 | |
| 263,164 | 647,133 | 0 | 0 | 151,653 | 383,289 |
| 24,587,131 | 25,588,664 | –777,372 | –607,449 | 17,828,884 | 18,255,725 |
| 475,000 | 575,000 | –30,000 | –30,000 | 270,000 | 270,000 |
| 18,199,478 | 18,264,874 | –476 | –4,319 | 13,726,250 | 13,485,296 |
| 1,911,516 | 2,412,937 | 0 | 0 | 1,911,516 | 2,412,937 |
| 194,734 | 198,242 | –42,615 | –21,366 | 51,930 | 49,222 |
| 722,319 | 703,813 | 0 | 0 | 32,150 | 29,952 |
| 1,387,657 | 1,527,041 | –703,637 | –550,602 | 1,166,519 | 1,148,799 |
| 66,754 | 41,618 | 0 | 0 | 13,673 | 5,532 |
| 299,889 | 332,916 | 0 | 0 | 54,829 | 35,060 |
| 23,257,347 | 24,056,441 | –776,728 | –606,287 | 17,226,866 | 17,436,798 |
| 1,329,784 | 1,532,223 | Equity and minority interests | |||
| 24,587,131 | 25,588,664 | Total equity and liabilities | |||
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 | |||
|---|---|---|---|---|
| 2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
|
| 1. a) Gross premiums written | 2,199,785 | 2,039,463 | 907,761 | 889,801 |
| 1. Premiums written (retained) | 1,887,344 | 1,742,395 | 906,356 | 887,825 |
| 2. Change due to premiums earned (retained) | –32,238 | –27,561 | –736 | –2,008 |
| 3. Premiums earned (retained) | 1,855,105 | 1,714,834 | 905,620 | 885,817 |
| 4. Income from fees and provisions | 63,482 | 60,440 | 106 | 414 |
| 5. Net investment income | 278,876 | 148,292 | 137,181 | 115,804 |
| 6. Other income | 29,961 | 38,120 | 1,047 | 1,336 |
| 7. Insurance benefits | –1,253,528 | –1,132,322 | –811,254 | –804,974 |
| 8. Operating expenses | –667,457 | –632,131 | –127,892 | –136,602 |
| 9. Other expenses | –45,970 | –60,985 | –3,285 | –5,671 |
| 10. Amortisation of goodwill | –4,688 | 0 | 0 | 0 |
| 11. Operating profit | 255,780 | 136,247 | 101,522 | 56,125 |
| 12. Financing costs | –23,276 | –10,774 | 0 | 0 |
| 13. Profit on ordinary activities | 232,504 | 125,474 | 101,522 | 56,125 |
| 14. Income taxes | –45,386 | –25,191 | –24,425 | –18,919 |
| 15. Net profit | 187,118 | 100,282 | 77,097 | 37,206 |
| of which consolidated profit | 179,418 | 93,641 | 55,813 | 27,490 |
| of which minority interests | 7,700 | 6,641 | 21,284 | 9,716 |
| Property and casualty | Health | ||||
|---|---|---|---|---|---|
| 2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
||
| Goodwill | |||||
| Change in impairment for current year | –4,689 | 0 | 0 | 0 | |
| of which reallocation affecting income | –4,689 | 0 | 0 | 0 | |
| Investments | |||||
| Change in impairment for current year | –50,359 | –21,105 | –17,063 | –11,424 | |
| of which reallocation/reinstatement of original values affecting income | –50,359 | –21,105 | –17,063 | –11,424 |
| Consolidation | Group | Life | ||||
|---|---|---|---|---|---|---|
| 2007 € 000 |
2006 € 000 |
2007 € 000 |
||||
| –2,054 | 1,605,224 | 1,422,398 | ||||
| 2,861 | 1,527,607 | 1,342,880 | ||||
| 391 | –200 | –480 | ||||
| 3,252 | 1,527,407 | 1,342,401 | ||||
| –3,646 | 22,088 | 11,484 | ||||
| –2,369 | 626,283 | 579,318 | ||||
| –1,160 | 7,156 | 7,283 | ||||
| 2,255 | –1,779,823 | –1,534,497 | ||||
| 622 | –284,125 | –332,376 | ||||
| 479 | –39,123 | –37,792 | ||||
| 0 | –8,448 | –14,407 | ||||
| –567 | 71,415 | 21,412 | ||||
| 0 | –14,585 | –14,615 | ||||
| –567 | 56,830 | 6,797 | ||||
| 0 | –19,311 | –1,452 | ||||
| –567 | 37,518 | 5,345 | ||||
| –567 | 30,711 | 12,440 | ||||
| 0 | 6,807 | –7,095 |
| Life Consolidation Group 2007 2006 2007 2006 2007 2006 € 000 € 000 € 000 € 000 € 000 € 000 0 0 0 0 –4,689 0 0 0 0 –4,689 –138,422 –102,607 0 0 –205,844 –135,136 –138,422 –102,607 0 0 –205,844 –135,136 |
||||
|---|---|---|---|---|
| 0 | ||||
| 0 | ||||
| Premiums earned (retained) | Net investment income | |||
|---|---|---|---|---|
| 2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
|
| Austria | 2,889,769 | 2,919,866 | 863,864 | 763,497 |
| Other Europe | 1,213,356 | 1,208,191 | 138,176 | 133,331 |
| Western Europe | 797,053 | 852,153 | 90,754 | 93,249 |
| Italy | 193,335 | 306,581 | 48,817 | 47,240 |
| Germany | 288,006 | 272,000 | 29,188 | 36,439 |
| Switzerland | 311,286 | 266,707 | 9,612 | 6,173 |
| Liechtenstein | 4,426 | 6,864 | 3,026 | 3,397 |
| The Netherlands | 0 | 0 | 110 | 0 |
| Eastern Europe | 416,303 | 356,039 | 47,422 | 40,082 |
| Poland | 139,939 | 134,495 | 12,844 | 11,005 |
| Hungary | 86,788 | 71,077 | 20,953 | 18,704 |
| Czech Republic | 77,084 | 64,345 | 5,176 | 5,049 |
| Bulgaria | 40,086 | 35,764 | 1,408 | 639 |
| Slovakia | 37,643 | 29,945 | 2,986 | 2,119 |
| Croatia | 11,815 | 9,117 | 995 | 797 |
| Bosnia and Herzegovina | 9,800 | 8,519 | 799 | 550 |
| Others | 13,147 | 2,776 | 2,260 | 1,218 |
| Total before consolidation | 4,103,125 | 4,128,058 | 1,002,039 | 896,828 |
| Consolidation (based on geographic segments) | 3,252 | 1,609 | –9,035 | –6,486 |
| In the consolidated financial statements | 4,106,377 | 4,129,666 | 993,005 | 890,342 |
The presentation of the investment income and the profit on ordinary activities by region has been adjusted for the effects from the capital consolidation included in the investment income. Accordingly, the consolidation based on geographic segments comprises the expenses and income consolidation from operative business between Group companies.
| Insurance benefits | Operating expenses | Profit on ordinary activities | |||
|---|---|---|---|---|---|
| 2007 | 2006 | 2007 | 2006 | 2007 | 2006 € 000 |
| € 000 | € 000 | € 000 | € 000 | € 000 | |
| –2,725,751 | –2,813,002 | –671,928 | –665,495 | 323,012 | 181,531 |
| –844,771 | –904,118 | –575,905 | –483,890 | 53,399 | 64,461 |
| –598,276 | –681,971 | –332,512 | –293,222 | 11,767 | 25,885 |
| –160,667 | –275,827 | –78,653 | –72,833 | 4,400 | 13,691 |
| –222,918 | –221,314 | –127,864 | –115,844 | 4,024 | 8,960 |
| –209,950 | –177,073 | –123,622 | –102,099 | 3,021 | 3,339 |
| –4,741 | –7,757 | –2,374 | –2,446 | 212 | –104 |
| 0 | 0 | 0 | 0 | 110 | |
| –246,495 | –222,146 | –243,393 | –190,668 | 41,632 | 38,575 |
| –102,632 | –98,310 | –59,877 | –56,083 | 7,817 | 8,376 |
| –34,682 | –34,889 | –66,732 | –48,479 | 20,314 | 19,375 |
| –40,445 | –35,531 | –45,000 | –37,548 | 13,086 | 9,145 |
| –25,676 | –22,482 | –24,670 | –15,072 | –2,259 | –602 |
| –19,981 | –17,429 | –23,821 | –19,322 | 7,341 | 3,873 |
| –7,767 | –5,845 | –8,772 | –7,360 | –99 | –140 |
| –5,997 | –5,657 | –4,687 | –4,613 | 146 | –1,002 |
| –9,314 | –2,004 | –9,834 | –2,190 | –4,714 | –449 |
| –3,570,521 | –3,717,119 | –1,247,833 | –1,149,385 | 376,412 | 245,992 |
| –26,503 | 1,484 | 120,729 | 101,580 | –36,156 | –7,505 |
| –3,597,024 | –3,715,635 | –1,127,104 | –1,047,805 | 340,256 | 238,487 |
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 Business 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. No early application of modified standards was performed.
Since 2005, UNIQA Versicherungen AG has applied IFRS 4 published in 2004 for insurance contracts. This standard demands that the methods of accounting and valuation be largely unaltered with regard to the technical items.
The present Group financial statements were prepared therefore, 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 life insurance with profit sharing, FAS 120 was observed; FAS 60 was applied for specific items in health, property and casualty insurance, and FAS 113 for reinsurance. Unit-linked life insurance, for which the policyholder bears the investment risk, was accounted for in accordance with FAS 97.
The disclosures required according to IFRS 7 as of 1 January 2007, are included for the first time in this report. In addition to the presentation of securities in "Held to maturity", "Available for sale", "At fair value through profit or loss" and "Derivative financial instruments (held for trading)" as already performed in previous years, the additional disclosures for securities available for sale are reported for the following investment categories, which were utilised for the internal risk report:
Under receivables including receivables under reinsurance operations, there is additional information on overdue receivables with values that have not yet been corrected.
In addition to the annual financial statement of UNIQA Versicherungen AG, the Group financial statements include the financial statements of all subsidiaries at home and abroad. Fifty affiliated companies did not form part of the consolidated Group. 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 – 34 domestic and 65 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 year in € million1) |
Acquired shares % |
Acquisition costs € million |
Goodwill € million |
|
|---|---|---|---|---|---|
| UNIQA životno osiguranje a.d. (previously Zepter osiguranje a.d.), Podgorica | 1.1.2007 | –0.1 | 100.0 | 0.0 | 0.0 |
| UNIQA neživotno osiguranje a.d.o., Belgrade | 1.4.2007 | –1.3 | 100.0 | 5.0 | 0.0 |
| UNIQA Real Estate Inlandsholding GmbH, Vienna | 1.7.2007 | 0.0 | 100.0 | 0.0 | 0.0 |
| UNIQA Real Estate Dritte Beteiligungsverwaltung GmbH, Vienna | 1.7.2007 | –0.2 | 100.0 | 0.0 | 0.0 |
| UNIQA Real Estate Vierte Beteiligungsverwaltung GmbH, Vienna | 1.7.2007 | 0.0 | 100.0 | 0.0 | 0.0 |
| UNIQA Real Estate Bulgaria EOOD, Sofia | 1.7.2007 | 0.0 | 100.0 | 0.0 | 0.0 |
| UNIQA Real Estate BH nekretnine, d.o.o., Sarajevo | 1.7.2007 | 0.0 | 100.0 | 0.0 | 0.0 |
| IPM International Property Management Kft., Budapest | 1.7.2007 | 0.4 | 100.0 | 13.6 | 0.0 |
| UNIQA Real Estate Polska Sp.z.o.o., Warsaw | 1.7.2007 | 0.0 | 100.0 | 0.0 | 0.0 |
| UNIQA Real III, spol.s.r.o., Bratislava | 1.7.2007 | 1.3 | 100.0 | 0.0 | 0.0 |
| Austria Hotels Betriebs CZ r.o., Prague | 1.10.2007 | –0.4 | 100.0 | 0.0 | 0.0 |
| UNIQA Real Estate d.o.o., Laibach | 1.10.2007 | 0.0 | 100.0 | 0.0 | 0.0 |
| UNIQA Real Estate BV, Hoofddorp | 1.10.2007 | 0.1 | 100.0 | 0.0 | 0.0 |
| "Hotel am Bahnhof" Errichtungs GmbH&Co KG, Vienna | 1.10.2007 | 0.6 | 100.0 | 0.0 | 0.0 |
| UNIQA Real Estate Bulgaria Alpha EOOD, Sofia | 1.10.2007 | 0.0 | 100.0 | 0.0 | 0.0 |
| UNIQA Real Estate P. Volfova d.o.o., Laibach | 1.10.2007 | 0.0 | 100.0 | 0.0 | 0.0 |
| UNIQA neživotno osiguranje a.d., Podgorica | 1.12. 2007 | 0.0 | 99.99 | 2.3 | 0.0 |
1) Net profit for the year included in the consolidated statements.
The non-life insurance company UNIQA neživotno osiguranje a.d.o. was founded in Serbia in the 2nd quarter of 2007, and the non-life insurance company UNIQA neživotno osiguranje a.d. in Montenegro in the 4th quarter of 2007. Both companies are fully consolidated.
Additionally, 9.62% of the shares in the insurance holding company SIGAL Holding sH.A. in Albania were acquired during the reporting period. These shares are reported on the balance sheet under "Other shareholdings".
The effects of the change to the scope of consolidation on the main asset and debt positions can be seen under no. 5 of the notes to the consolidated financial statements.
The associated companies refer to fourteen domestic and two foreign companies consolidated at equity; of these, ten 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 of the IASB (SIC 12), fully controlled investment funds were included in the consolidation, insofar as their fund volumes were not of minor importance when viewed singularly and in total.
UNIQA expanded its investment in the Ukrainian company Credo-Classic from 35.5% to 61.0%, thereby taking over a majority interest in the company. A further expansion of the investment is planned over the medium term. Credo-Classic is the sixth-largest property insurance company in the Ukraine. The investment in the Albanian SIGAL Group was also expanded to 45.6% in the 1st quarter of 2008. With a market share exceeding 28%, SIGAL is the largest insurance company in Albania and also has a corresponding market presence in Macedonia and Kosovo through subsidiaries and branches.
Capital consolidation follows the acquisition method. The costs of acquiring shares in the subsidiaries are written as the proportional equity of the subsidiary, which was first revalued. 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.
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. In doing so, the cash value of all future contributions to earnings generated by the economic units is contrasted with the deferred goodwill (including a share of the equity) from a discounted perspective by applying a risk-adequate interest rate.
The group of related companies within a country are treated as an economic unit, rather than the individual company. An impairment, therefore, only applies if depreciation is deemed necessary at this level.
Negative differences from mergers consummated after 31 March 2004 must be credited with an effect on income immediately after reappraisal.
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 euro thousands, 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 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 most important exchange rates are summarised in the following table:
| € rates on balance sheet closing date | 2007 | 2006 |
|---|---|---|
| Swiss franc CHF | 1.6547 | 1.6069 |
| Slovakian koruna SKK | 33.5830 | 34.4350 |
| Czech koruna CZK | 26.6280 | 27.4850 |
| Hungarian forint HUF | 253.7300 | 251.7700 |
| Croatian kuna HRK | 7.3308 | 7.3504 |
| Polish zloty PLN | 3.5935 | 3.8310 |
| Bosnia and Herzegovina convertible mark BAM | 1.9517 | 1.9581 |
| Romanian leu (new) RON | 3.6080 | 3.3840 |
| Bulgarian lev (new) BGN | 1.9558 | 1.9558 |
| Ukrainian hrywnja UAH | 7.3633 | 6.6631 |
| Serbian dinar RSD | 78.7950 | 79.8438 |
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 notinsignificant level of risk that considerable adjustments to asset or debt values may be necessary in the following year:
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.
Intangible assets 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 the 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 they refer to. 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 in the same proportion as the expected 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 amortisations and depreciation. Owner-used land and buildings are shown at book value (IAS 16 – benchmarking method). 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 market values can be found in the Group notes under nos. 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 the 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 costs in the balance sheet. This means that the difference between acquisition costs and the redemption 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 cost less market value is greater than 20%. For fixed interest securities, these two selection criteria are also applied in order to perform a precise credit quality evaluation of a sustained impairment per security for the portfolio items identified in this way. In addition, foreign exchange differentials resulting from fixedincome securities are recognised with an effect on income. Foreign exchange differentials resulting from variableyield 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 impairment. 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 in value are recognised in the income statement.
Structured products are not split between the underlying transaction and derivative, but are accounted for as a unit. All the structured products can, therefore, be found in the "Financial instruments at fair value through profit or loss" item of the 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.
Deposits with credit institutions and other investments are recognised at their 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 managed separately from the remaining investments of the companies. 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 market values of the investment pools are thus counterbalanced by the corresponding changes in these provisions.
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 and proceeds from transactions with UNIQA shares.
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 actuarial provision.
Actuarial provisions are established in the property, 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 a prudent and contractually agreed calculation basis.
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 unit-linked insurance policies, where 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 the calculation basis has been determined, it must be applied to the corresponding partial portfolio for the whole term (locked-in principle).
The provision for outstanding claims in the property insurance line consists of the future payment obligations determined by realistic estimation, using recognised statistical methods, taking into account current or expected volumes and including the related expense of loss adjustment. This applies to claims already reported as well as for claims incurred but not yet reported. In insurance lines where 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.
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% of the valuation differentials before tax.
This item basically contains the provision for contingent losses for acquired reinsurance portfolios as well as a provision for expected cancellations and premium losses.
This item concerns the actuarial provisions and the remaining technical provisions for obligations from life insurance policies whose 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-oriented 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. All actuarial profits and losses due to changed parameters are recognised as having an effect on income. 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.
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 probable tax burdens affecting future cash-flow. 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 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 lasting reduction in the value of assets, their carrying amount is reduced.
Of the premiums written in the area of unit-linked and index-linked life insurance, only those parts calculated to cover the risk and costs are allocated as premiums.
In the case of sustained impairment, the entire goodwill is written off at its fair 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 Business Code.
Land and buildings, including buildings on third-party land, are valued according to IAS 16 and also, if so chosen, according to IAS 40 at book value minus scheduled amortisation. These are based on the actual duration of use; in accordance with Austrian Business 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% and 50%. The actual exercising of considerable influence has no bearing on these figures.
(direct business and partly accepted reinsurance business)
Life insurance
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 Business 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' funds 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 Business 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 impairment 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 Business Code.
The shares of reinsurers in actuarial provisions are shown on the assets page of the balance sheet in accordance with IFRS 4.
Commissions as well as other variable costs that are directly related to the acquisition or extension of existing policies are capitalised and distributed over the insurance contract terms and/or the premium payment period. The capitalised 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. In particular, this refers to the non-application of the zillmerisation of acquisition costs as well as the integration of the revalued unearned premiums and real final bonus in the life insurance line.
Health insurance is mainly affected by the deviating interest rate as well as the application of the most recent parameters, including safety margins.
Due to the difference in valuation of the assets and liabilities in the area of life insurance, a provision has to be made for deferred profit sharing 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 probable future compliance amounts.
The establishment of a provision for claims equalisation and catastrophes is not permitted under IFRS or US-GAAP regulations, as it does not represent any current obligations to third parties on the balance sheet date. Accordingly, transfers or releases do not influence the results for the year.
The accounting principles used to calculate the pension provision under IFRS are different from those of the Austrian Business Code. These are listed in detail in IAS 19. Overall, the individual differences result in greater detail than under the Austrian Business Code. This is most notably the result of the use of the project unit credit method and of the anticipation of 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 anticipated future tax burdens or relief on taxes on income (temporary differences), which are to be reported regardless of the date of their liquidation. 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 probabilityn.
Chairman Konstantin Klien, Vienna
Hannes Bogner, Vienna Andreas Brandstetter, Vienna Karl Unger, Teesdorf Gottfried Wanitschek, St. Margarethen
All members of the Management Board are appointed until 30 September 2010.
Christian Konrad, Vienna, appointed from 29 June 1990 until the 12th AGM in 2011
Herbert Schimetschek, Vienna, appointed from 15 May 2006 until the 9th AGM in 2008
Member of the Board of Directors of SCOR, Paris
Walter Rothensteiner, Vienna, appointed from 3 July 1995 until the 12th AGM in 2011
Chairman of the Supervisory Board of Raiffeisen International Bank-Holding AG, Vienna
Heinz Kessler, Vienna, appointed from 17 September 1999 until the 10th AGM in 2009
appointed from 25 June 1996 until 18 December 1996, and since 17 September 1999 until the 12th AGM in 2011
Ewald Wetscherek, Vienna, appointed from 17 September 1999 until the 12th AGM in 2011
Konrad Fuchs, Maria Enzersdorf, appointed from 17 September 1999 until the 10th AGM in 2009
Erwin Hameseder, Vienna, appointed from 21 May 2007 until the 12th AGM in 2011
Christian Kuhn, Vienna, appointed from 15 May 2006 until the 12th AGM in 2011
Markus Mair, Graz, appointed from 15 May 2006 until the 12th AGM in 2011
Peter Püspök, Perchtoldsdorf, appointed from 17 September 1999 until 21 May 2007
Member of the Supervisory Board of Österreichische Elektrizitätswirtschafts-Aktiengesellschaft, Vienna
Günther Reibersdorfer, Salzburg, appointed from 23 May 2005 until the 12th AGM in 2011
Georg Winckler, Vienna, appointed from 17 September 1999 until the 12th AGM in 2011
First Vice Chairman of the Supervisory Board of Erste Bank der oesterreichischen Sparkassen AG, Vienna
Johann-Anton Auer, Ruprechtshofen (since 18 February 2008) Doris Böhm, Strasshof Hans Hahnen, Absam Franz Michael Koller, Graz Friedrich Lehner, Gunskirchen Walter Vock, Gumpoldskirchen (until 18 February 2008) Walter Zwiauer, Vienna
All selected members of the Supervisory Board have declared their independence under rule 53 of the Austrian Corporate Governance Code. The Supervisory Board appointments in domestic and foreign listed companies are given.
Christian Konrad (Chairman) Herbert Schimetschek Walter Rothensteiner Heinz Kessler
Christian Konrad (Chairman) Herbert Schimetschek Walter Rothensteiner Heinz Kessler Karl Waltle Ewald Wetscherek
Doris Böhm (assigned by the Central Employee Council) Franz Michael Koller (assigned by the Central Employee Council) Walter Zwiauer (assigned by the Central Employee Council)
Christian Konrad (Chairman) Herbert Schimetschek Walter Rothensteiner Heinz Kessler Karl Waltle Ewald Wetscherek
Doris Böhm (assigned by the Central Employee Council) Franz Michael Koller (assigned by the Central Employee Council) Walter Zwiauer (assigned by the Central Employee Council)
Peter Püspök (Chairman until 21 May 2007) Erwin Hameseder (Chairman since 21 May 2007) Konrad Fuchs (Vice Chairman) Karl Waltle Georg Winckler
Doris Böhm (assigned by the Central Employee Council) Walter Zwiauer (assigned by the Central Employee Council)
The nature of an insurance company is to take on risks in return for premium payments. However, these risks arising from the insurance business are only part of the risks which can arise within an insurance company. In addition to general technical risks, there are also financial, operational and management risks. The term external risks refers to those risks that cannot be influenced by the insurance company.
In order to identify, measure, aggregate and control all risks, a UNIQA risk management system was created which is in use in all operating companies in Austria. At the end of 2007, all Group companies in which UNIQA holds in interest greater than 50% were integrated into this risk management process.
The risk management process is centrally controlled and operated by the respective actuary departments. These are responsible for the documentation of all risks that could significantly jeopardise the continued existence of the company or the insurance business. They also report quarterly to the Management Board regarding the risk situation of the company. Ad-hoc information is also provided where necessary. Asset liability management is performed annually in the life insurance segment, and the analyses of stress tests are included in the report on a quarterly basis.
Promoters, who can be described as responsible for an area, are tasked with documenting all risks that concern their segment. The actual assessment of the risks is performed by assessors. The assessment is followed by a check by both the promoter and risk management.
Amongst other aspects, the level of risk and probability of occurrence are documented for each risk. Multiplying these two values together gives the risk potential. Each scenario that corresponds to the highest risk potential is used when assessing the risk.
The risk potential is also a figure that allows for comparing risks. This guarantees that risks with a high probability of occurrence and risks with a high level of risk are considered to be major risks.
The risk of an insurance contract is the occurrence of the insured event. By definition, the occurrence of this risk takes place by chance and is, therefore, unpredictable. Using the law of large numbers, the risk can be calculated for a sufficiently large insurance portfolio. The larger the portfolio consisting of similar insurance policies, the more accurately the result (loss) can be estimated. For this reason, insurance companies strive for growth.
| Premiums earned (gross) | € 000 |
|---|---|
| 2007 | 4,489,647 |
| 2006 | 4,500,985 |
| 2005 | 4,354,341 |
| 2004 | 3,613,794 |
| 2003 | 3,016,185 |
| 2002 | 2,636,938 |
| 2001 | 2,636,777 |
The principle of insurance is built on the law of large numbers: only a few of those at risk will actually suffer a loss. For the individual, the occurrence of loss is uncertain; for the collective, however, it is largely determined. The loss-bearing and loss-free risks theoretically cancel each other out. The actuarial risk now exists in the danger that the actual claims for a certain period deviate from those expected. This risk can be divided into the chance risk, the change risk and the error risk.
The chance risk means that higher than expected losses can occur by pure chance. Amongst other things, the change risk means that unforeseen changes to the risk factors have an impact on the actual loss payments. The error risk comes about from deviations arising through incorrect assessment of the risk factors.
The observation of the business from a total customer perspective that was begun last year was further intensified this year, and now represents an additional controlling dimension of the company. This total customer perspective, which is obtained through actuarial calculations, is used in focused sales campaigns.
The amount of the discount granted for household/own home, casualty as well as motor vehicle liability and collision has been coupled with risk criteria and customer criteria since April 2007. The objective of this measure is for discounts offered outside of normal rates to be adapted to the risk situation and justified based on the risk level.
Reinsurance policies reduce the retained earnings of the initial insurer and lead to a smoothing of results. On the one hand, they can lead to a reduction of the claim ratio in retained earnings in the event of extraordinary events; on the other head, a good level of claims can worsen the claim ratio in retained earnings. The aim of an optimal reinsurance strategy is to find a structure that takes both of these points into consideration.
| Claims ratio (gross) | % |
|---|---|
| 2007 | 68.1 |
| 2006 | 64.3 |
| 2005 | 66.7 |
| 2004 | 64.1 |
| 2003 | 68.9 |
| 2002 | 77.3 |
| 2001 | 73.7 |
With regard to unexpected claims, risk management makes assessments on elemental, major and cumulative losses in the areas of storms, floods and earthquakes that are based on accepted scenarios. Reinsurance policies considerably reduce the levels of possible losses. Due to the possibility of the failure of reinsurers, the reinsurance structure of the UNIQA Group is described below.
For the exact determination of the reserve risk and premium risk, an internal model is implemented that indicates the risk based on the fundamental portfolio structure, the current reinsurance programme and future developments. Detailed information regarding the future development of mass, major and catastrophic damages, calculated on the basis of historic data, are used as the basis for this. This makes it possible to identify developments at an early point and take direct measures (structuring of premiums and scopes of coverage, adaptation of reinsurance structures) to minimise the risk and control financial results.
The total obligatory reinsurance requirement of operating UNIQA companies is covered with reinsurance policies at UNIQA Versicherungen AG or UNIQA Re. UNIQA Versicherungen AG in Vienna is the sole reinsurer of Austrian UNIQA companies, while UNIQA Re in Zurich acts as sole risk bearer for international UNIQA companies.
Between 50% and 60% of the entire portfolio are covered by these reinsurance policies. Ratio figures, which, depending upon the volatility of the respective insurance branch, reach between 25% and 90%, are supplemented with excess loss policies. Two cumulative excess loss policies also exist which should cover major losses across the insurance branch ("umbrella") incurred through natural disasters (earthquakes, flooding, high water, storm, etc.)
In 2004, we also created our own reinsurance line on a non-proportional basis for the large industrial business of all Group companies. This includes major risks in various branches of industrial insurance according to precise earnings limits and includes general liability insurance.
UNIQA Insurer AG and UNIQA Re pool the business acquired by the Group companies according to insurance branches and pass gross excess loss policies, which are supplemented by net ratios, on to international reinsurers as a "bouquet". The reinsurance structure, the conditions, the shares and all reinsurance partners in this bouquet are identical for both companies. The reinsurance policy is fully placed. The quota agreements expired on 31 December 2007.
The effect of the reinsurance programme on the claims ratio in retained earnings can be seen in the following table:
| % |
|---|
| 67.6 |
| 66.0 |
| 68.0 |
| 65.6 |
| 69.8 |
| 76.0 |
| 73.0 |
The table below shows the reinsurance requirements for outstanding claims and incurred, but not reported, claims arranged according to ratings. This concerns the reinsurance business ceded by domestic subsidiaries and UNIQA Re from the property insurance lines to companies outside the Group. The cessions of international subsidiaries and the IWD portion of co-insurance are not included.
| Rating | 31 Dec. 2007 € 000 |
|---|---|
| AAA | 4,199 |
| AA | 119,830 |
| A | 87,341 |
| Not rated | 791 |
The creditworthiness of reinsurers is also very important, not least because of the long duration of claim settlement in the area of general liability insurance and motor vehicle liability Insurance.
The problem of duration in reinsurance (initial insurance policies are often multi-year, while reinsurance policies are taken out for only one year) is, primarily, held in check by the reinsurance team, which controls this risk. Systematic analyses, supported by actuarial methods, are used to assess the appropriateness of the actuarial provisions.
In addition to the elemental lines, the commercial property business also includes liability and technical insurance. The UNIQA Group divides this into three areas:
Since 2004, the top risks (e.g. over €10.9 million probable maximum loss in property insurance) have been covered by our own, non-proportional reinsurance policy outside of the obligatory reinsurance. A team of experts at the International Desk in Vienna decides on the contribution to this policy for the entire Group.
In the property segment, major risks are evaluated for risk prior to acceptance and subsequently at regular intervals, and documented in survey reports. In the liability insurance line, the portfolio for high level risks is subject to permanent monitoring (e.g. planning risks and liability insurance in the medical segment).
The industry holdings of the international companies are regularly analysed for their exposure and composition (risk mix), and survey reports on the exposed risks are prepared.
The risk of an individual insurance contract lies in the occurrence of the insured event. The occurrence is considered random and therefore unpredictable. The insurance company takes on this risk for a corresponding premium. When calculating the premium, the actuary refers to the following carefully selected factors as the calculation basis:
Careful selection of the calculation basis gives rise to scheduled profits, an appropriate amount of which is credited to the policyholders as part of profit sharing in accordance with the profit plan.
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 calculation basis proves to be insufficient despite careful selection.
The risks of the insurer can be divided into actuarial and financial risks.
UNIQA's portfolio consists, primarily, of long-term insurance policies. Shortterm assurances payable at death play a minor role.
In the following table, the number of insurance policies is divided by rate groups and insured sums, and takes into consideration the companies of UNIQA Personenversicherung AG, Raiffeisen Versicherung AG, Salzburger Landes-Versicherung AG and CALL DIRECT Versicherung AG.
| Number of insurance policies as at 31 Dec. 2007 Categorie1) |
Capital insurance |
Retirement annuity |
Risk insurance |
|---|---|---|---|
| €0 to €20,000 | 871,108 | 79,447 | 157,914 |
| €20,000 to €40,000 | 167,974 | 30,322 | 37,062 |
| €40,000 to €100,000 | 67,247 | 17,011 | 128,641 |
| €100,000 to €200,000 | 7,780 | 3,308 | 65,988 |
| More than €200,000 | 1,787 | 1,130 | 9,043 |
1) Capital and risk insurance policies are based on the insured sum, for deferred pension annuities the redemption capital is included at maturity, for liquid pension annuities the category refers to 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 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, as not only could the calculated mortality probabilities prove to be too low, but 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 reinsured 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 premiums in the event of a (less probable) worsening of the mortality profile. However, this presents the danger of possible antiselection behaviour: 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 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 exist only for the Austrian population. This data cannot be applied to other countries. Moreover, the past shows that the effect of these changes was seriously underestimated, so that subsequent reservations had to be made for retirement annuity contracts.
The right to choose annuity pensions for deferred retirement annuities also results in antiselection. Only those policyholders that feel very healthy opt for annuity payment, while all others choose partial or full capital payment; in this way, the retirement portfolio tends to consist mostly of healthier people, i.e. worse risks, overall, 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.
The actuarial interest that may be used in the calculation for writing new business is based on the maximum interest rate ordinance, and currently amounts to 1.75% per annum ("Lebensaktie", "Zukunftsplan") or 2.25% per annum (other life insurance policies). However, the portfolio also contains older contracts with actuarial interest of up to 4.0% per annum, while the average rate for the portfolio is 2.86%.
As these interest rates are guaranteed by the insurance company, the financial risk lies in not being able to generate these returns. As 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, as these concern extremely longterm policies.
The interest risk functions in the following ways:
Premiums that are paid in the future must be invested at an interest rate guaranteed at the time the policy is taken out; however, it is entirely possible that no corresponding securities are available at the time the premium is paid. 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 assets and liability side. The duration of assets is between 5 and 6 years, while that of liabilities is considerably larger. This creates a duration gap that reduces the ratio of assets to liabilities in the event of falling interest rates.
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 (e.g. due to an economic crisis), this represents a considerable risk to the insurance company.
The question of whether a capital or 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, so 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 sum insured including profit participation) in accordance with an interest rate and a mortality table set at the time the policy is taken out (the latter risk is not only financial).
Besides these technical and financial risks, the cost risk must also be mentioned. For the term of the policy, the insurer guarantees only to withdraw the calculated costs. The business risk here is that the cost premiums are insufficient (e.g. due to cost increases resulting from inflation).
Health insurance is a type of insurance that takes biometric risks into account within its calculations and which must be operated according to the "type of life insurance" in Austria. 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 they are sufficient to cover the insurance benefits that generally increase with age, assuming probabilities that remain constant. The probabilities and cost structures can change frequently over time. For this reason, it is possible to adjust the premiums for health insurance as necessary to the changed calculation basis.
When taking on the risks, the existing risk of the persons 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 a prudent 3%, so that the investment risk of health insurance in Austria is relatively low. If it were expected that 3% could no longer be obtained in future, this fact would have to be taken into account for future benefits and included in the premium adjustment.
The operational risks are extensively determined by the IT architecture and by errors that can arise from the business processes (policy formulation, risk assessment and benefit calculation). This risks should be kept to a minimum by using risk management.
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 sharply reduce the income opportunities. Developments in this area will be observed by the insurance association, and where necessary, an attempt will be made to react to negative developments from the perspective of the private health insurer.
In the last quarter of 2007, the EU directive concerning the equal treatment of men and women in insurance, which was implemented in Austria with the Insurance Changes Act of 2006 (VersRÄG 2006) was also taken into account in the premium calculation. Since the differences between men and women can be demonstrated, only the decoupling costs explicitly defined in the EU directive and the Insurance Changes Act as an exception to the risk-appropriate calculation had to be distributed between men and women. Since the consequences were not very significant and these changes apply to all companies, only minor negative consequences should result from this change to the legal situation, due to the fact that women of the younger age classes who are insured alone will wish to switch to the new rates.
For numerous insurance products, a calculatory interest rate is taken into consideration for the investment period between expected deposit and expected payout. The risk, therefore, lies in a deviation between the expected or calculated interest and the return on capital actually achieved on the capital market. The main components of these capital market risks are:
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. There is, therefore, a partial dependence between the growth of assets and debts 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. 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 most important accounting groups that arise from the different product categories.
| Investments | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Long-term life insurance policies with guaranteed interest and profit sharing |
13,779,745 | 13,943,506 |
| Long-term unit-linked and index-linked life insurance policies |
2,470,340 | 1,952,897 |
| Long-term health insurance policies | 2,245,370 | 2,083,161 |
| Short-term property and casualty insurance policies | 3,695,766 | 3,438,782 |
| Total | 22,191,221 | 21,418,346 |
These values refer to the following balance sheet items:
| Technical provisions and liabilities (retained) |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Long-term life insurance policies with guaranteed interest and profit sharing |
13,463,170 | 13,713,127 |
| Long-term unit-linked and index-linked life insurance policies |
2,412,937 | 1,911,516 |
| Long-term health insurance policies | 2,347,571 | 2,224,055 |
| Short-term property and casualty insurance policies | 2,097,404 | 1,918,533 |
| Total | 20,321,082 | 19,767,231 |
These values refer to the following balance sheet items:
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 | |||
|---|---|---|---|---|---|---|
| % | 2007 | 2006 | 2007 | 2006 | 2007 | 2006 |
| Fixed interest securities | ||||||
| High-grade loans | 4.05 | 4.05 | 5.22 | 4.95 | 5.31 | 5.06 |
| Bank/company loans | 4.74 | 4.75 | 7.75 | 7.50 | 3.80 | 3.97 |
| Emerging markets loans | 7.06 | 7.61 | 6.29 | 7.82 | 7.87 | 8.17 |
| High-yield loans | 6.68 | 6.30 | 8.71 | 8.07 | 7.92 | 6.51 |
| Other investments | 3.87 | 4.08 | – | – | 7.90 | 3.19 |
| Fixed interest liabilities | ||||||
| Subordinated liabilities | 5.34 | 5.34 | ||||
| Guaranteed interest life insurance | 2.86 | 2.92 | ||||
| Debenture bonds | 4.00 | 4.00 |
Insurance policies with guaranteed interest and additional profit sharing contain the risk that the guaranteed interest rate will not be achieved over a sustained period of time. Capital income produced over and above the guaranteed interest rate will be shared between the policyholder and the insurance company, with the policyholder receiving an appropriate share of the profit. The following table shows the comparison of assets and debts for such insurance policies.
| Investments for long-term life insurance policies with guaranteed interest and profit sharing |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Annuities | 9,931,822 | 10,213,018 |
| Shares | 1,170,286 | 1,164,251 |
| Alternatives | 867,749 | 810,089 |
| Holdings | 82,040 | 82,711 |
| Loans | 232,801 | 302,187 |
| Real estate | 686,939 | 642,796 |
| Liquidity | 701,803 | 635,751 |
| Deposits receivable | 106,306 | 92,702 |
| Total | 13,779,745 | 13,943,506 |
| Difference between book value and market value of land and buildings |
168,648 | 163,867 |
| Provisions and liabilities from long-term life insurance policies with guaranteed interest and profit sharing |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Actuarial provision | 12,614,575 | 12,541,017 |
| Provision for profit-unrelated premium refunds | 75 | 13 |
| Provision for profit-related premium refunds and profit sharing |
323,478 | 687,165 |
| Other technical provisions | 18,004 | 15,239 |
| Provision for outstanding claims | 106,159 | 90,982 |
| Deposits payable | 400,879 | 378,712 |
| Total | 13,463,170 | 13,713,127 |
The following table shows the structure of the remaining terms of interestbearing securities and loans.
| Remaining term | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Up to 1 year | 828,204 | 688,828 |
| Of more than 1 year up to 3 years | 1,226,330 | 1,546,677 |
| Of more than 3 years up to 5 years | 1,154,581 | 1,400,020 |
| Of more than 5 years up to 7 years | 1,629,882 | 1,923,959 |
| Of more than 7 years up to 10 years | 2,228,364 | 1,786,409 |
| Of more than 10 years up to 15 years | 1,063,760 | 1,392,811 |
| More than 15 years | 2,033,502 | 1,774,369 |
| Total | 10,164,623 | 10,513,073 |
The capital-weighted average remaining term of technical liabilities is around 8.3 years (2006: 8.5 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 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Share-based funds | 825,456 | 672,620 |
| Bond funds | 1,551,188 | 1,236,337 |
| Liquidity | 92,882 | 43,939 |
| Other investments | 814 | 1 |
| Total | 2,470,340 | 1,952,897 |
The actuarial interest rate for the actuarial provision in health insurance lines, which is selected depending on the type of life insurance, is 3%. However, this interest rate is not guaranteed and can, upon presentation of proof to the insurance supervisory authority, be reduced to a 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 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Annuities | 1,130,606 | 1,154,135 |
| Shares | 191,601 | 133,201 |
| Alternatives | 111,703 | 96,335 |
| Holdings | 65,812 | 27,476 |
| Loans | 332,223 | 303,746 |
| Real estate | 193,687 | 195,770 |
| Liquidity | 219,737 | 172,499 |
| Total | 2,245,370 | 2,083,161 |
| Difference between book value and market value of land and buildings |
259,996 | 231,861 |
| Provisions and liabilities from long-term health insurance policies |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Actuarial provision | 2,098,989 | 1,972,628 |
| Provision for profit-unrelated premium refunds | 22,199 | 20,793 |
| Provision for profit-related premium refunds or profit sharing |
58,904 | 57,191 |
| Other technical provisions | 694 | 5,916 |
| Provision for unearned premiums | 13,395 | 14,959 |
| Provision for outstanding claims | 151,683 | 150,725 |
| Deposits payable | 1,708 | 1,842 |
| Total | 2,347,571 | 2,224,055 |
Most property and casualty insurance policies are short-term. Due to the short investment term, there is naturally a lower risk arising from financial risks. The technical provisions are not discounted, so that no interest is calculated for the short-term investment. The average terms of interestbearing securities and loans invested to cover technical provisions is shown in the following table.
| Remaining term | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Up to 1 year | 162,102 | 203,409 |
| More than 1 year up to 3 years | 276,714 | 261,545 |
| More than 3 years up to 5 years | 223,488 | 304,229 |
| More than 5 years up to 7 years | 521,462 | 509,274 |
| More than 7 years up to 10 years | 298,433 | 471,467 |
| More than 10 years up to 15 years | 128,853 | 163,883 |
| More than 15 years | 157,516 | 163,397 |
| Total | 1,768,569 | 2,077,205 |
The investment structure in the property and casualty insurance is as follows.
| Investments for short-term property and casualty insurance policies |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Annuities | 1,351,113 | 1,426,894 |
| Shares | 179,428 | 166,185 |
| Alternatives | 67,429 | 80,184 |
| Holdings | 866,147 | 624,072 |
| Loans | 417,456 | 428,111 |
| Real estate | 426,685 | 441,872 |
| Liquidity | 374,906 | 258,489 |
| Deposits receivable | 12,602 | 12,975 |
| Total | 3,695,766 | 3,438,782 |
| Difference between book value and market value of land and buildings |
180,553 | 150,996 |
| Provisions and liabilities from short-term property and casualty insurance policies |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
| Provision for unearned premiums | 408,688 | 343,997 |
| Actuarial provision | 44,482 | 44,550 |
| Provision for outstanding claims | 1,582,211 | 1,458,607 |
| Provision for profit-unrelated premium refunds | 25,591 | 26,907 |
| Provision for profit-related premium refunds or profit sharing |
7,315 | 8,191 |
| Other technical provisions | 16,765 | 19,651 |
| Deposits payable | 12,351 | 16,630 |
| Total | 2,097,404 | 1,918,533 |
The average policy term in property and casualty insurance is between three and five years..
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 | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Shares in Europe | 623,775 | 649,588 |
| Shares in America | 65,374 | 85,456 |
| Shares in Asia | 187,428 | 128,591 |
| Shares international1) | 3,089 | 1,401 |
| Shares in emerging markets | 127,480 | 142,316 |
| Shares total return2) | 496,507 | 401,580 |
| Other shares | 37,662 | 56,200 |
| Total | 1,541,315 | 1,465,133 |
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.
For extensive parts of the 2007 financial year, the share items were secured in the amount of 10% below the market level at the start of the year. The majority of this safeguarding item expired in December 2007.
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 | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| AAA | 3,345,244 | 3,603,331 |
| AA | 3,600,801 | 3,603,847 |
| A | 2,852,518 | 3,110,333 |
| BBB | 975,652 | 1,029,342 |
| BB | 976,920 | 1,082,315 |
| B | 424,227 | 381,519 |
| CCC | 30,366 | 51,308 |
| Not rated | 207,813 | 150,871 |
| Total | 12,413,541 | 13,012,867 |
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. The most significant currency risk is in USD. The following table shows a breakdown of assets and debts by currency.
| 31 Dec. 2007 in € 000 |
€ | USD | Other | Total |
|---|---|---|---|---|
| Assets | ||||
| Investments | 20,133,079 | 233,523 | 1,824,619 22,191,221 | |
| Other tangible assets | 125,686 | 12,345 | 138,030 | |
| Intangible assets | 1,123,946 | 82,246 | 1,206,193 | |
| Share of reinsurance in the technical provisions |
1,044,013 | 74,521 | 1,118,534 | |
| Other assets | 771,964 | 162,721 | 934,685 | |
| Total assets | 23,198,688 | 233,523 | 2,156,452 25,588,664 | |
| Provisions and liabilities | ||||
| Subordinated liabilities | 575,000 | 575,000 | ||
| Technical provisions | 19,552,675 | 1,125,136 20,677,811 | ||
| Other provisions | 679,162 | 24,651 | 703,813 | |
| Liabilities | 1,966,855 | 132,962 | 2,099,817 | |
| Total liabilities | 22,773,693 | 1,282,748 24,056,441 | ||
| 31 Dec. 2006 in € 000 |
€ | USD | Other | Total |
| Assets | ||||
| Investments | 19,622,362 | 101,067 | 1,694,917 21,418,346 | |
| Other tangible assets | 100,264 | 10,849 | 111,113 | |
| Intangible assets | 1,097,655 | 66,006 | 1,163,661 |
| technical provisions | 953,174 | 93,353 | 1,046,527 | |
|---|---|---|---|---|
| Other assets | 733,552 | 113,931 | 847,483 | |
| Total assets | 22,507,007 | 101,067 | 1,979,056 24,587,131 | |
| Provisions and liabilities | ||||
| Subordinated liabilities | 475,000 | 475,000 | ||
| Technical provisions | 19,176,359 | 934,634 20,110,993 | ||
| Other provisions | 708,052 | 14,267 | 722,319 | |
| Liabilities | 1,831,926 | 117,108 | 1,949,035 | |
| Total liabilities | 22,191,337 | 1,066,009 23,257,347 | ||
The fair value of securities investments in USD amounted to €2,048 million as at 31 December 2007. The exchange rate risk was reduced using derivative financial instruments to €234 million, while the safeguard ratio was 88.6%. The safeguard was maintained in a range of between 83% and 93% during the financial year.
Share of reinsurance in the
The UNIQA Group must satisfy its payment obligations on a daily basis. For this reason, a precise liquidity schedule for the immediately following months is used, and a minimum liquidity holding is defined by the Management Board and is available as a cash reserve on a daily basis. In addition, a majority of the securities portfolio is listed on liquid stock exchange markets and can be sold at short notice in event of liquidity shortages.
Additional underwriting obligations exist for private equity investments in the amount of €229.3 million. Obligations of €60.0 million result from multitranche loans.
The risk management for investments is done in a structured investment process in which the various market risks are controlled at the levels of the selection of a strategic asset allocation, and the tactical weighting of the individual asset classes is controlled 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; these are details available on the reporting date and, therefore, represent rough figures for future losses of fair value. 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.
| € 000 +100 basis points –100 basis points +100 basis points –100 basis points High-grade loans –235,989 248,409 –244,381 244,381 Bank/company loans –120,139 126,462 –159,067 159,067 Emerging markets loans –42,859 45,114 –41,857 41,857 High-yield loans –2,862 3,013 –2,027 2,027 Total –401,849 422,998 –447,332 447,332 Share risk 31 Dec. 2007 31 Dec. 2006 € 000 +10% –10% +10% –10% Shares in Europe 57,295 –57,295 60,895 –60,895 Shares in America 8,717 –8,717 8,509 –8,509 Shares in Asia 19,770 –19,770 12,468 –12,468 International shares 3,579 –3,579 27 –27 Shares in emerging markets 12,848 –12,848 13,875 –13,875 Shares total return 47,879 –47,879 39,967 –39,967 Derivative financial instruments and other shares 2,729 –2,084 –18,851 34,151 Total 152,817 –152,172 116,890 –101,590 Currency risk 31 Dec. 2007 31 Dec. 2006 € 000 +10% –10% +10% –10% € 0 0 0 0 USD 23,837 –23,837 9,569 –9,569 Other 153,465 –153,465 141,597 –141,597 Total 177,302 –177,302 151,166 –151,166 Quality risk 31 Dec. 2007 31 Dec. 2006 € 000 Change to spread + – + – AAA 0 basis points 0 0 0 0 AA 25 basis points –38,845 38,845 –41,493 41,493 A 50 basis points –68,413 68,413 –64,780 64,780 BBB 75 basis points –45,329 45,329 –65,987 65,987 BB 100 basis points –46,665 46,665 –67,275 67,275 B 125 basis points –24,830 24,830 –21,536 21,536 |
Interest rate change risk | 31 Dec. 2007 | 31 Dec. 2006 | |
|---|---|---|---|---|
| CCC 150 basis points –1,376 1,376 –5,156 5,156 |
||||
| Not rated 100 basis points –15,243 15,243 –7,222 7,222 Total –240,701 240,701 –273,448 273,448 |
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% and a holding term of one year. The basic data is in the form of historical figures from the last calendar year and 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 | Total value at risk € 000 |
Share risk € 000 |
Currency risk € 000 |
Interest risk € 000 |
Diversi fication € 000 |
|---|---|---|---|---|---|
| 31 Dec. 2007 | 522,197 | 311,935 | 97,538 | 470,240 | –357,516 |
| 31 Dec. 2006 | 514,686 | 194,216 | 61,579 | 432,430 | –173,539 |
| Lowest | 485,879 | 175,006 | 50,325 | 409,177 | –164,519 |
| Average | 521,393 | 230,136 | 79,765 | 452,085 | –240,593 |
| Highest | 546,148 | 311,935 | 97,538 | 477,235 | –357,516 |
| Balance sheet values 2006 |
Currency differences |
Additions | Unrealised capital gains and losses |
|
|---|---|---|---|---|
| € 000 | € 000 | € 000 | € 000 | |
| A. Tangible assets |
||||
| I. Self-used land and buildings |
233,997 | 861 | 1,555 | 0 |
| II. Other tangible assets |
||||
| 1. Tangible assets | 44,608 | 176 | 15,373 | 0 |
| 2. Inventories | 4,844 | 0 | ||
| 3. Other assets | 61,661 | 28,676 | ||
| Total A.II. | 111,113 | 176 | 44,049 | 0 |
| Total A. | 345,110 | 1,038 | 45,604 | 0 |
| B. Land and buildings held as financial investments |
927,456 | –674 | 141,922 | 0 |
| C. Intangible assets |
||||
| I. Deferred acquisition costs |
863,430 | 1,291 | 208,173 | 0 |
| II. Goodwill |
||||
| 1. Positive goodwill | 190,545 | 0 | 40,776 | 0 |
| 2. Value of insurance policies | 62,519 | –8 | 8,620 | 0 |
| Total C.II. | 253,064 | –8 | 49,396 | 0 |
| III. Other intangible assets |
||||
| 1. Self-produced software | 7,909 | 0 | 0 | 0 |
| 2. Acquired intangible assets | 39,258 | 140 | 18,495 | 0 |
| Total C.III. | 47,167 | 140 | 18,495 | 0 |
| Total C. | 1,163,661 | 1,423 | 276,064 | 0 |
| D. Shares in associated companies |
371,998 | 0 | 30,064 | 3,417 |
| E. Investments |
||||
| I. Variable-yield interest securities |
||||
| 1. Shares, investment shares and other variable-yield securities, including holdings and shares in associated companies |
3,462,337 | 717 | 3,854,420 | 113,125 |
| 2. At fair value through profit or loss | 1,025,332 | 0 | 1,335,487 | 0 |
| Total E.I. | 4,487,668 | 717 | 5,189,906 | 113,125 |
| II. Fixed interest securities |
||||
| 1. Debt securities and other fixed interest securities | 10,634,769 | 7,972 | 8,133,629 | –386,855 |
| 2. At fair value through profit or loss | 508,599 | 0 | 175,711 | 0 |
| Total E.II. | 11,143,369 | 7,972 | 8,309,340 | –386,855 |
| III. Loans and other investments |
||||
| 1. Loans | ||||
| a) Debt securities issued by and loans to associated companies |
80 | 1 | 14,213 | 0 |
| b) Debt securities issued by and loans to | ||||
| participating interests | 792 | 0 | 0 | 0 |
| c) Mortgage loans | 178,956 | 0 | 14,098 | 0 |
| d) Loans and advance payments on policies | 15,400 | –2 | 3,964 | 0 |
| e) Other loan receivables and registered bonds | 838,814 | –474 | 155,893 | –4,237 |
| Total E.III. 1. | 1,034,044 | –475 | 188,167 | –4,237 |
| 2. Cash at credit institutions | 802,106 | 2,974 | 100 | 0 |
| 3. Deposits with ceding companies | 105,678 | –6 | 15,281 | 0 |
| Total E.III. | 1,941,827 | 2,492 | 203,548 | –4,237 |
| IV. Derivatives |
95,970 | 0 | 52,167 | 0 |
| Total E. | 17,668,834 | 11,181 | 13,754,961 | –277,967 |
| F. Investments held on account and at risk of life insurance policyholders |
1,952,897 | –528 | 1,724,254 | –33,854 |
| Aggregate total | 22,429,957 | 12,439 | 15,972,869 | –308,404 |
| Book values | Depreciation | Appreciation | Disposals | Transfers | Amortisation |
|---|---|---|---|---|---|
| for financial year € 000 |
€ 000 | € 000 | € 000 | € 000 | € 000 |
| 227,187 | 7,015 | 0 | 236 | –1,976 | 0 |
| 43,425 | 14,810 | 87 | 2,076 | 67 | 0 |
| 4,269 | 575 | ||||
| 90,336 | 0 | ||||
| 138,030 | 14,810 | 87 | 2,651 | 67 | 0 |
| 365,218 | 21,824 | 87 | 2,887 | –1,909 | 0 |
| 1,014,259 | 54,251 | 0 | 2,104 | 1,910 | 0 |
| 873,462 | 189,307 | 0 | 0 | –10,126 | 0 |
| 226,632 | 4,689 | 0 | 0 | 0 | 0 |
| 14,431 | 0 | 0 | 10,126 | 0 | |
| 19,119 | 0 | 0 | 10,126 | 0 | |
| 3,978 | 0 | 135 | 0 | 0 | |
| 11,493 | 31 | 10,954 | 0 | 0 | |
| 15,471 | 31 | 11,089 | 0 | 0 | |
| 223,897 | 31 | 11,089 | 0 | 0 | |
| 3,697 | 232,098 | 127,225 | 0 | 0 | |
| 94,062 | 8,178 | 3,375,108 | –94 | 0 | |
| 98,223 | 98,996 | 1,385,638 | 0 | 0 | |
| 192,285 | 107,174 | 4,760,746 | –94 | 0 | |
| 327,718 | 66,618 | 8,047,320 | –809 | –7,671 | |
| 30,585 | 9,233 | 165,970 | 0 | –350 | |
| 358,303 | 75,851 | 8,213,290 | –809 | –8,021 | |
| 0 | 0 | 39 | 240 | 0 | |
| 0 | 0 | 0 | –240 | 0 | |
| 2,375 | 0 | 16,468 | –1,427 | 0 | |
| 0 | 0 | 5,088 | 0 | 0 | |
| 1,870 | 0 | 209,179 | 1,427 | 0 | |
| 4,245 | 0 | 230,774 | 0 | 0 | |
| 8,169 | 171 | 147,758 | –110 | 0 | |
| 0 | 0 | 2,045 | 0 | 0 | |
| 12,414 | 171 | 380,577 | –110 | 0 | |
| 56,133 | 71,625 | 103,401 | 0 | 0 | |
| 619,135 | 254,821 | 13,458,013 | –1,012 | –8,021 | |
| 16,612 | 4,751 | 1,161,720 | 1,012 | 141 | |
| 939,418 | 491,787 | 14,763,039 | 0 | –7,880 | |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Book values for | ||
| Property and casualty insurance | 95,344 | 104,338 |
| Life insurance | 118,568 | 116,025 |
| Health insurance | 13,276 | 13,635 |
| 227,187 | 233,997 | |
| Market values for | ||
| Property and casualty insurance | 123,217 | 132,918 |
| Life insurance | 140,332 | 124,789 |
| Health insurance | 17,870 | 18,338 |
| 281,419 | 276,045 | |
| Acquisition values | 323,285 | 323,175 |
| Cumulative depreciation | –96,098 | –89,177 |
| Book value | 227,187 | 233,997 |
| Useful life for land and buildings | 10–80 years | 10–80 years |
| Additions from company acquisition | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
| Self-used land and buildings | 0 | 2,087 |
The market values are derived from expert reports.
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Tangible assets | 43,425 | 44,608 |
| Inventories | 4,269 | 4,844 |
| Other assets | 90,336 | 61,661 |
| Total | 138,030 | 111,113 |
| Tangible assets Development in financial year |
€ 000 |
|---|---|
| Acquisition values as at 31 Dec. 2006 | 159,825 |
| Cumulative depreciation up to 31 Dec. 2006 | –115,216 |
| Book value as at 31 Dec. 2006 | 44,608 |
| Currency translation changes | 176 |
| Additions | 15,373 |
| Disposals | –2,076 |
| Transfers | 67 |
| Appreciation and depreciation | –14,723 |
| Book value as at 31 Dec. 2007 | 43,425 |
| Acquisition values as at 31 Dec. 2007 | 159,608 |
| Cumulative depreciation up to 31 Dec. 2007 | –116,183 |
| Book value as at 31 Dec. 2007 | 43,425 |
Tangible assets refer mainly to office equipment. They are depreciated over a useful life of 4 to 10 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 acquisitions | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Tangible assets | 56 | 1,081 |
| 31 Dec. 2007 Group total € 000 |
31 Dec. 2006 Group total € 000 |
|
|---|---|---|
| Book values for | ||
| Property and casualty insurance | 329,023 | 334,423 |
| Health insurance | 179,540 | 181,204 |
| Life insurance | 505,697 | 411,829 |
| 1,014,259 | 927,456 | |
| Market values for | ||
| Property and casualty insurance | 481,703 | 456,839 |
| Health insurance | 434,941 | 408,361 |
| Life insurance | 652,581 | 566,932 |
| 1,569,225 | 1,432,132 | |
| Acquisition values | 1,398,800 | 1,257,256 |
| Cumulative depreciation | –384,541 | –329,800 |
| Book value | 1,014,259 | 927,456 |
| Useful life for land and buildings | 10–80 years | 10–80 years |
| Additions from company acquisition | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
| Land and buildings used by third parties | 42,879 | 52,667 |
The market values are derived from expert reports.
| 31 Dec. 2007 € 000 |
|
|---|---|
| Change on impairment for current year | 25,000 |
| of which reallocation | 25,000 |
| 2007 € 000 |
2006 € 000 |
|
|---|---|---|
| Property and casualty insurance | ||
| Situation as at 1 Jan. | 110,050 | 97,131 |
| Currency translation changes | 1,030 | 352 |
| Changes to scope of consolidation | 0 | 168 |
| Capitalisation | 60,583 | 57,065 |
| Depreciation | –49,992 | –44,665 |
| Situation as at 31 Dec. | 121,671 | 110,050 |
| Health insurance | ||
| Situation as at 1 Jan. | 213,952 | 214,008 |
| Currency translation changes | 1 | 1 |
| Capitalisation | 14,924 | 14,371 |
| Interest surcharge | 9,182 | 9,166 |
| Depreciation | –23,395 | –23,593 |
| Situation as at 31 Dec. | 214,665 | 213,952 |
| Life insurance | ||
| Situation as at 1 Jan. | 539,428 | 496,159 |
| Currency translation changes | 259 | 268 |
| Capitalisation | 104,734 | 105,867 |
| Interest surcharge | 18,750 | 22,778 |
| Transfers | –10,126 | 0 |
| Depreciation | –115,920 | –85,643 |
| Situation as at 31 Dec. | 537,126 | 539,428 |
| Consolidated financial statements | ||
| Situation as at 1 Jan. | 863,430 | 807,297 |
| Currency translation changes | 1,291 | 620 |
| Changes to scope of consolidation | 0 | 168 |
| Capitalisation | 180,241 | 177,302 |
| Interest surcharge | 27,932 | 31,944 |
| Transfers | –10,126 | 0 |
| Depreciation | –189,307 | –153,901 |
| Situation as at 31 Dec. | 873,462 | 863,430 |
| € 000 | |
|---|---|
| Acquisition values as at 31 Dec. 2006 | 353,975 |
| Cumulative depreciation up to 31 Dec. 2006 | –100,911 |
| Book value as at 31 Dec. 2006 | 253,064 |
| Acquisition values as at 31 Dec. 2007 | 415,774 |
| Cumulative depreciation up to 31 Dec. 2007 | –122,316 |
| Book value as at 31 Dec. 2007 | 293,458 |
Important additions: UNIQA Insurance plc., Bulgaria, UNIQA a.d.o., Serbia and UNIQA pojiš 'tovna, Czech Republic.
| € 000 | |
|---|---|
| Cumulative depreciation up to 31 Dec. 2007 | 122,316 |
| of which relating to impairment | 21,337 |
| of which current depreciation | 100,979 |
| 31 Dec. 2007 € 000 |
|
| Change in impairment for current year | 4,689 |
| of which reallocation | 4,689 |
The values mentioned above include the goodwill and the purchase price paid for the total acquired insurance policies.
| Company acquisitions 2007 | Amounts placed at the time of acquisition € 000 |
Book value of the acquired companies € 000 |
|---|---|---|
| Assets | 50,955 | 50,955 |
| Tangible assets | 56 | 56 |
| Land and buildings held as financial investments | 42,879 | 42,879 |
| Intangible assets | 1 | 1 |
| Shares in associated companies | 0 | 0 |
| Investments | 100 | 100 |
| Investments held for unit-linked and index-linked life insurance policyholders |
0 | 0 |
| Share of reinsurance in the technical provisions | 0 | 0 |
| Receivables including receivables under insurance business |
2,530 | 2,530 |
| Receivables from income tax | 0 | 0 |
| Deferred tax assets | 0 | 0 |
| Liquid funds | 5,389 | 5,389 |
| Equity and liabilities | 50,955 | 50,955 |
| Total equity | 31,512 | 31,512 |
| Subordinated liabilities | 0 | 0 |
| Technical provisions | 71 | 71 |
| Technical provisions for life insurance policies held on account and at risk of policyholders |
0 | 0 |
| Financial liabilities | 0 | 0 |
| Other provisions | 5 | 5 |
| Payables and other liabilities | 16,268 | 16,268 |
| Liabilities from income tax | 0 | 0 |
| Deferred tax liabilities | 3,099 | 3,099 |
| Self-produced software € 000 |
Acquired intangible assets € 000 |
|
|---|---|---|
| Acquisition values as at 31 Dec. 2006 | 40,003 | 149,972 |
| Cumulative depreciation up to 31 Dec. 2006 | –32,094 | –110,714 |
| Book value as at 31 Dec. 2006 | 7,909 | 39,258 |
| Acquisition values as at 31 Dec. 2007 | 35,536 | 154,575 |
| Cumulative depreciation up to 31 Dec. 2007 | –31,740 | –119,098 |
| Book value as at 31 Dec. 2007 | 3,796 | 35,477 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Computer software | 34,361 | 40,034 |
| Copyrights | 30 | 0 |
| Licences | 1,844 | 2,438 |
| Other intangible assets | 3,039 | 4,695 |
| 39,273 | 47,167 | |
| Useful life | years | years |
| Self-produced software | 2–5 | 2–5 |
|---|---|---|
| Acquired intangible assets | 2–5 | 2–5 |
The intangible assets include paid-for and self-produced computer software, licences and copyrights.
The amortisation of the other intangible assets was recognised in the income statement on the basis of allocated operating expenses under the items insurance benefits, operating expenses and net investment income.
Intangible assets are depreciated using the straight-line method.
| Additions from company acquisition | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Self-produced software | 0 | 0 |
| Acquired intangible assets | 1 | 1,496 |
| 31 Dec. 2007 € 000 |
|
|---|---|
| Research and development expenditures recorded as an expense during the period under review |
4,462 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Current market value for | ||
| Shares in affiliated companies of minor importance1) | 20,044 | 18,804 |
| Shares in associated companies of minor importance | 17,326 | 26,722 |
| Book value for | ||
| Shares in associated companies valued at equity | 489,328 | 345,276 |
| Equity for | ||
| Shares in affiliated companies of minor importance | 13,303 | 13,919 |
| Annual net profit/deficit for the year | ||
| Shares in affiliated companies of minor importance | 936 | –4,019 |
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 | 31 Dec. 2007 € 000 |
|---|---|
| Current market value of associated companies listed on a public stock exchange |
735,488 |
| Profits/losses for the period | 18,288 |
| Unrecorded, proportional loss, ongoing, if shares of loss are no longer recorded |
0 |
| Unrecorded, proportional loss, cumulative, if shares of loss are no longer recorded |
0 |
The book value of STRABAG SE increased in 2007 by €132.108 million. This included share premium profit in the amount of €211.416 million and a book value loss of €79.604 million from investment sales.
| Type of investment | Acquisition costs | Fluctuation in value not affecting income |
Accumulated value adjustments |
affecting income | Foreign currency differences | Market values | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
| Shares in affiliated companies | 20,044 | 18,804 | 0 | 0 | 0 | 0 | 0 | 0 | 20,044 | 18,804 |
| Shares | 869,012 | 901,955 | 26,810 | 38,249 | –29,449 | –26,771 | 0 | 0 | 866,373 | 913,433 |
| Equity funds | 825,940 | 467,114 | –28,623 | 32,194 | –7,869 | 0 | 0 | 0 | 789,449 | 499,309 |
| Debenture bonds not capital-guaranteed | 648,635 | 700,879 | 35,675 | 40,131 | 0 | 0 | –38,612 | –12,681 | 645,699 | 728,329 |
| Other variable-yield securities | 1,139,130 | 864,862 | –40,257 | 3,639 | 0 | –2,229 | 0 | 0 | 1,098,873 | 866,272 |
| Participating interests and other investments | 249,205 | 241,096 | 316,570 | 209,174 | –16,700 | –14,080 | 0 | 0 | 549,075 | 436,190 |
| Fixed interest securities | 10,765,259 | 10,793,413 | –325,920 | 33,575 | –235,797 | –129,260 | –130,926 | –62,959 | 10,072,617 | 10,634,769 |
| Total | 14,517,225 | 13,988,124 | –15,745 | 356,963 | –289,815 | –172,341 | –169,538 | –75,640 | 14,042,129 | 14,097,106 |
The market values listed for participating interests contain participating interest valuations based on internal calculations, resulting in an appreciation in the amount of €117.877 million in 2007. In 2006, application of this valuation method resulted in an appreciation of €153.145 million.
| Type of investment | Accumulated value adjustments |
Of which accumulated from previous years |
Of which from current year |
||||
|---|---|---|---|---|---|---|---|
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
||
| Shares in affiliated companies | 0 | 0 | 0 | 0 | 0 | 0 | |
| Shares | –29,449 | –26,771 | 4,534 | –10,550 | –33,982 | –16,221 | |
| Equity funds | –7,869 | 0 | –2,442 | 0 | –5,427 | 0 | |
| Debenture bonds not capital-guaranteed | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other variable-yield securities | 0 | –2,229 | –2,254 | 0 | 2,254 | –2,229 | |
| Participating interests and other investments | –16,700 | –14,080 | –13,023 | 0 | –3,677 | –14,080 | |
| Fixed interest securities | –235,797 | –129,260 | –95,785 | –38,106 | –140,012 | –91,154 | |
| Total | –289,815 | –172,341 | –108,970 | –48,656 | –180,844 | –123,684 |
| Type of investment | Change in value adjustment current year |
Of which write-down/ write-up affecting income |
Of which changes due to disposal |
Of which write-up of equity |
|---|---|---|---|---|
| 31 Dec. 2007 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2007 € 000 |
|
| Shares in affiliated companies | 0 | 0 | 0 | 0 |
| Shares | –2,678 | –33,982 | 31,305 | 0 |
| Equity funds | –7,869 | –5,427 | –2,442 | 0 |
| Debenture bonds not capital-guaranteed | 0 | 0 | 0 | 0 |
| Other variable-yield securities | 2,229 | 2,254 | –25 | 0 |
| Participating interests and other investments | –2,620 | –3,677 | 1,057 | 0 |
| Fixed interest securities | –106,537 | –140,012 | 33,476 | 0 |
| Total | –117,474 | –180,844 | 63,370 | 0 |
| Change in equity as at 31 Dec. 2007 |
Allocation not affecting income |
Withdrawal1) due to disposals affecting income |
Change in unrealised gains/losses |
|||
|---|---|---|---|---|---|---|
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
| Other securities – available for sale | ||||||
| Gross | –277,967 | 114,816 | –94,982 | –207,873 | –372,949 | –93,057 |
| Deferred tax | 52,640 | –32,029 | –43,667 | 22,673 | 8,973 | –9,356 |
| Deferred profit participation | 70,182 | 29,150 | 278,388 | 124,594 | 348,570 | 153,744 |
| Minority interest | 2,656 | 3,909 | 15,274 | 10,309 | 17,930 | 14,218 |
| Net | –152,488 | 115,846 | 155,013 | –50,297 | 2,524 | 65,549 |
1) Withdrawal affecting the income statement due to disposals and impairments.
| Remaining contractual term | Acquisition costs | Market values | |||
|---|---|---|---|---|---|
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
||
| Infinite | 24,002 | 46,558 | 24,637 | 47,347 | |
| Up to 1 year | 2,702,664 | 657,301 | 2,499,159 | 656,151 | |
| Of more than 1 year up to 5 years |
3,185,270 | 3,942,155 | 3,090,701 | 3,922,674 | |
| Of more than 5 years up to 10 years |
4,554,791 | 4,212,410 | 4,389,110 | 4,156,568 | |
| More than 10 years | 2,086,297 | 3,500,730 | 1,813,582 | 3,446,630 | |
| Total | 12,553,024 | 12,359,154 | 11,817,188 | 12,229,370 |
The remaining maturities stipulated by contract refer to fixed interest securities, other variable-yield securities and bonds without capital guarantee.
| Risk of default rating | 31 Dec. 2007 € 000 |
|---|---|
| Fixed interest securities | |
| Rating AAA | 3,140,147 |
| Rating AA | 2,804,301 |
| Rating A | 3,210,010 |
| Rating BBB | 1,151,185 |
| Rating < BBB | 1,194,994 |
| Not assigned | 316,551 |
| Rating total of fixed interest securities | 11,817,188 |
| Issuer countries | |
| Share securities | |
| IE, NL, UK, US | 351,279 |
| AT, BE, CH, DE, DK, FR, IT | 582,844 |
| ES, FI, NO, SE | 44,627 |
| Remaining EU | 463,974 |
| Other countries | 313,615 |
| Issuer countries total of share securities | 1,756,339 |
| Other shareholdings | 448,557 |
| Total variable-yield securities | 2,204,897 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Market values | ||
| Share risk | 14,793 | 42,278 |
| Interest rate change risk | 536 | 6,045 |
| Currency risk | 38,847 | 27,790 |
| Structured risk | –6,289 | 18,648 |
| Total | 47,887 | 94,761 |
| Structured risk – of which: | ||
| Share risk | 6,903 | 18,925 |
| Interest rate change risk | –15,612 | –12,108 |
| Currency risk | 2,420 | 10,428 |
| Credit risk | 0 | 1,404 |
| Balance sheet value | ||
| Investments | 60,228 | 95,970 |
| Financial liabilities | –12,342 | –1,209 |
| Book values | ||
|---|---|---|
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
| 1. Loans to affiliated companies | 14,495 | 80 |
| 2. Loans to participating interests | 552 | 792 |
| 3. Mortgage loans | 172,784 | 178,956 |
| 4. Loans and advance payments on policies | 14,274 | 15,400 |
| 5. Other loans | 529,874 | 613,566 |
| 6. Registered bonds | 250,500 | 225,248 |
| Total | 982,480 | 1,034,044 |
| Remaining contractual term | Book values | |
|---|---|---|
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
| Infinite | 1,683 | 2,184 |
| Up to 1 year | 61,906 | 204,544 |
| Of more than 1 year up to 5 years | 224,772 | 188,968 |
| Of more than 5 years up to 10 years | 476,410 | 431,477 |
| More than 10 years | 217,709 | 206,870 |
| Total | 982,480 | 1,034,044 |
| Market values | ||
|---|---|---|
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
| 1. Loans to affiliated companies | 14,495 | 80 |
| 2. Loans to participating interests | 552 | 792 |
| 3. Mortgage loans | 172,784 | 178,956 |
| 4. Loans and advance payments on policies | 14,274 | 15,400 |
| 5. Other loans | 522,624 | 617,068 |
| 6. Registered bonds | 250,500 | 225,248 |
| Total | 975,230 | 1,037,546 |
| Remaining contractual term | Market values | |
|---|---|---|
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
| Infinite | 1,683 | 2,184 |
| Up to 1 year | 61,733 | 204,585 |
| Of more than 1 year up to 5 years | 225,566 | 189,401 |
| Of more than 5 years up to 10 years | 470,536 | 434,505 |
| More than 10 years | 215,713 | 206,870 |
| Total | 975,230 | 1,037,546 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Other investments included: | ||
| Deposits with credit institutions | 649,313 | 802,106 |
| Deposits with ceding companies | 118,908 | 105,678 |
| Total | 768,221 | 907,783 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| I. Reinsurance receivables |
||
| 1. Accounts receivable under reinsurance operations |
67,795 | 36,298 |
| 67,795 | 36,298 | |
| II. Other receivables |
||
| Receivables under the insurance business | ||
| 1. from policyholders | 219,145 | 202,790 |
| 2. from intermediaries | 62,285 | 62,817 |
| 3. from insurance companies | 6,828 | 8,310 |
| 288,258 | 273,917 | |
| Other receivables | ||
| Accrued interest and rent | 205,764 | 221,679 |
| Other tax refund claims | 42,126 | 28,648 |
| Receivables due from employees | 3,614 | 3,709 |
| Other receivables | 155,437 | 106,832 |
| 406,940 | 360,867 | |
| Total other receivables | 695,198 | 634,784 |
| Subtotal | 762,993 | 671,083 |
| of which receivables with a remaining term of | ||
| up to 1 year | 746,926 | 657,315 |
| more than 1 year | 16,067 | 13,767 |
| of which receivables with values not yet adjusted | ||
| up to 3 months overdue | 48,590 | 51,410 |
| more than 3 months overdue | 5,961 | 5,661 |
| III. Other assets |
||
| Accruals | 43,383 | 37,150 |
| 43,383 | 37,150 | |
| Total receivables incl. receivables under insurance business |
806,377 | 708,233 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Receivables from income tax | 51,253 | 54,249 |
| of which receivables with a remaining term of | ||
| up to 1 year | 38,533 | 40,954 |
| more than 1 year | 12,720 | 13,295 |
| Cause of origin | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Actuarial items | 9,158 | 8,762 |
| Social capital | 45,901 | 54,585 |
| Investments | 2,636 | 2,583 |
| Loss carried forward | 3,514 | 5,052 |
| Other | 15,846 | 14,019 |
| Total | 77,055 | 85,000 |
| 31 Dec. 2007 | 31 Dec. 2006 | |
|---|---|---|
| Number of authorised and issued | ||
| no-par shares | 119,777,808 | 119,777,808 |
| of which fully paid up | 119,777,808 | 119,777,808 |
The subscribed capital and capital reserves correspond to values from the individual financial statements of UNIQA Versicherungen AG.
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.
In addition to the subscribed capital, UNIQA Versicherungen AG has at its disposal an authorised capital in the amount of €50 million. The Annual General Meeting of 23 May 2005 extended the authorisation of the Management Board of UNIQA Versicherungen AG to increase the share capital, with the approval of the Supervisory Board, up to and including 30 June 2010.
In addition, the Management Board was authorised, in the first, second and fourth Annual General Meetings, to buy own shares in accordance with Section 65 paragraph 1 number 8 and paragraph 1a of the Austrian Stock Corporation Act, upon approval by the Supervisory Board. On 28 April 2004, the UNIQA Versicherungen AG Management Board decided to resell shares which had previously been bought back. This decision was approved by the Supervisory Board on 29 April 2004, and the share buy-back programme was suspended as the resale programme came into effect on 6 May 2004.
At the reporting date, own shares are accounted for as follows:
| 31 Dec. 2007 | 31 Dec. 2006 | |
|---|---|---|
| Shares held by: | ||
| UNIQA Versicherungen AG | ||
| Acquisition costs in € 000 | 2,561 | 2,561 |
| Number of shares | 350,000 | 350,000 |
| Share of subscribed capital in % | 0.29 | 0.29 |
In the performance figure "earnings per share", the consolidated profit is set against the average number of ordinary shares in circulation.
| Earnings per share | 2007 | 2006 |
|---|---|---|
| Consolidated profit in € 000 | 247,103 | 151,900 |
| of which accounts for ordinary shares in € 000 | 247,103 | 151,900 |
| Own shares as at 31 Dec. 2007 | 350,000 | 350,000 |
| Average number of shares in circulation | 119,427,808 | 119,427,808 |
| Earnings per share in €1) | 2.07 | 1.27 |
| Earnings before taxes per share in €1) | 2.67 | 1.80 |
| Earnings per share1), adjusted for goodwill amortisation in € |
2.23 | 1.34 |
| Profit from ordinary activities per share, adjusted for goodwill amortisation in € |
3.01 | 2.07 |
| Dividend per share | 0.502) | 0.35 |
| Dividend payment in € 000 | 59,7142) | 41,800 |
1) Calculated on the basis of the consolidated profit for the year.
2) Subject to the decision to be taken in the AGM.
The diluted earnings per share is equal to the undiluted earnings per share in the reporting year and in the previous year.
| Change in the tax amounts included in the equity without affecting income |
31 Dec. 2007 € 000 |
|---|---|
| Effective tax | 0 |
| Deferred tax | 2,607 |
| Total | 2,607 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| In revaluation reserve | –14,796 | 3,134 |
| In net income for the year | 21,889 | 23,165 |
| In other equity | 188,749 | 181,000 |
| Total | 195,843 | 207,299 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Supplementary capital | 575,000 | 475,000 |
In December 2002, Raiffeisen Versicherung AG, and in July 2003, UNIQA Versicherungen AG, UNIQA Personenversicherung AG and UNIQA Sachversicherung AG issued partial debentures with a nominal value of €325 million for paid-up supplementary capital, 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 5 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%, except in the case of Raiffeisen Versicherung AG, where the interest to December 2012 will be 5.7%, plus a bonus interest payment of between 0.2% and 0.4%, 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 million for deposited supplementary capital, according to Section 73 c 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 5 years, with no ordinary or extraordinary cancellation possible. Interest is applied only insofar as this is covered in the net profit for the year of the issuer. The interest rate up to December 2016 is 5.079%.
In January 2007, UNIQA Versicherungen AG issued additional bearer debentures with a face value of €100 million for deposited supplementary capital, according to Section 73 c 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 5 years, with no ordinary or extraordinary cancellation possible. Interest is applied only insofar as this is covered in the net profit for the year of the issuer. The interest rate up to December 2016 is 5.342%.
| 31 Dec. 2007 | 31 Dec. 2006 | |
|---|---|---|
| € 000 | € 000 | |
| Property and casualty insurance | ||
| Gross | 416,518 | 374,948 |
| Reinsurers' share | –7,830 | –30,951 |
| 408,688 | 343,997 | |
| Health insurance | ||
| Gross | 13,467 | 15,039 |
| Reinsurers' share | –72 | –80 |
| 13,395 | 14,959 | |
| Consolidated financial statements | ||
| Gross | 429,985 | 389,987 |
| Reinsurers' share | –7,902 | –31,031 |
| Total (fully consolidated values) | 422,083 | 358,956 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Property and casualty insurance | ||
| Gross | 44,727 | 44,800 |
| Reinsurers' share | –244 | –251 |
| 44,482 | 44,550 | |
| Health insurance | ||
| Gross | 2,100,697 | 1,974,470 |
| Reinsurers' share | –1,708 | –1,842 |
| 2,098,989 | 1,972,628 | |
| Life insurance | ||
| Gross | 13,021,276 | 12,923,203 |
| Reinsurers' share | –406,701 | –382,186 |
| 12,614,575 | 12,541,017 | |
| Consolidated financial statements | ||
| Gross | 15,166,700 | 14,942,474 |
| Reinsurers' share | –408,653 | –384,279 |
| Total (fully consolidated values) | 14,758,046 | 14,558,195 |
The interest rates used as an accounting basis were as follows:
| For | Health insurance acc. to SFAS 60 % |
Life insurance acc. to SFAS 120 % |
|---|---|---|
| 2007 | ||
| For actuarial provision | 4.50 or 5.50 | 1.75–4.00 |
| For deferred acquisition costs | 4.50 or 5.50 | 4.70 |
| 2006 | ||
| For actuarial provision | 4.50 or 5.50 | 1.75–4.00 |
| For deferred acquisition costs | 4.50 or 5.50 | 4.80 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Property and casualty insurance | ||
| Gross | 1,921,373 | 1,770,641 |
| Reinsurers' share | –339,161 | –312,033 |
| 1,582,211 | 1,458,607 | |
| Health insurance | ||
| Gross | 152,385 | 151,484 |
| Reinsurers' share | –702 | –759 |
| 151,683 | 150,725 | |
| Life insurance | ||
| Gross | 117,913 | 100,756 |
| Reinsurers' share | –11,754 | –9,775 |
| 106,159 | 90,982 | |
| Consolidated financial statements | ||
| Gross | 2,191,671 | 2,022,881 |
| Reinsurers' share | –351,617 | –322,567 |
| Total (fully consolidated values) | 1,840,054 | 1,700,314 |
The provisions for outstanding claims developed in the property and casualty insurance as follows:
| 2007 € 000 |
2006 € 000 |
||
|---|---|---|---|
| 1. | Provisions for outstanding claims as at 1 Jan. | ||
| a. Gross | 1,770,641 | 1,694,155 | |
| b. Reinsurers' share | –312,033 | –323,220 | |
| c. Retention | 1,458,607 | 1,370,935 | |
| 2. Plus (retained) claims expenditures | |||
| a. Losses of the current year | 1,285,245 | 1,199,829 | |
| b. Losses of the previous year | –73,252 | –147,719 | |
| c. Total | 1,211,993 | 1,052,110 | |
| 3. | Less (retained) losses paid | ||
| a. Losses of the current year | –642,759 | –598,972 | |
| b. Losses of the previous year | –453,194 | –385,554 | |
| c. Total | –1,095,953 | –984,527 | |
| 4. | Foreign currency translation | 7,615 | 5,280 |
| 5. | Change in consolidation scope | 1,720 | 14,808 |
| 6. | Other changes | –1,771 | 0 |
| 7. | Provisions for outstanding claims as at 31 Dec. | ||
| a. Gross | 1,921,373 | 1,770,641 | |
| b. Reinsurers' share | –339,161 | –312,033 | |
| c. Retention | 1,582,211 | 1,458,607 |
| Claims payments | 2002 € 000 |
2003 € 000 |
2004 € 000 |
2005 € 000 |
2006 € 000 |
2007 € 000 |
Total € 000 |
|---|---|---|---|---|---|---|---|
| Financial year | 577,135 | 549,486 | 532,073 | 574,976 | 620,980 | 666,924 | |
| One year later | 905,047 | 824,772 | 828,367 | 888,892 | 944,083 | ||
| Two years later | 971,003 | 887,579 | 902,521 | 968,023 | |||
| Three years later | 1,000,623 | 916,610 | 935,170 | ||||
| Four years later | 1,015,582 | 933,776 | |||||
| Five years later | 1,028,535 | ||||||
| Accumulated payments | 1,028,535 | 933,776 | 935,170 | 968,023 | 944,083 | 666,924 | |
| Estimated final claims payments | 1,077,243 | 1,020,402 | 1,062,966 | 1,146,816 | 1,224,578 | 1,321,911 | |
| Current balance sheet reserve | 48,708 | 86,625 | 127,796 | 178,793 | 280,494 | 654,987 | 1,377,403 |
| Balance sheet reserve for the claims years "2001 and before": |
405,989 1,783,392 |
||||||
| Plus other reserve components (internal claims regulation costs, etc.) |
137,980 | ||||||
| Provisions for outstanding claims (gross) as at 31 Dec. 2007 |
1,921,373 |
| 31 Dec. 2007 | 31 Dec. 2006 | |
|---|---|---|
| € 000 | € 000 | |
| Property and casualty insurance | ||
| Gross | 33,271 | 35,413 |
| Reinsurers' share | –365 | –315 |
| 32,906 | 35,098 | |
| Health insurance | ||
| Gross | 81,103 | 77,984 |
| Reinsurers' share | 0 | 0 |
| 81,103 | 77,984 | |
| Life insurance | ||
| Gross | 323,653 | 687,278 |
| Reinsurers' share | –100 | –100 |
| 323,553 | 687,178 | |
| Consolidated financial statements | ||
| Gross | 438,027 | 800,674 |
| Reinsurers' share | –465 | –415 |
| Total (fully consolidated values) | 437,562 | 800,260 |
| of which profit-unrelated (retention) | 47,865 | 47,712 |
| of which profit-related (retention) | 389,696 | 752,547 |
| Group total | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| a) Provision for profit-unrelated premium refunds | 48,231 | 48,027 |
| of which property and casualty insurance | 25,957 | 27,222 |
| of which health insurance | 22,199 | 20,793 |
| of which life insurance | 75 | 13 |
| b) Provision for profit-related premium refunds and/or policyholder profit participation |
271,588 | 339,138 |
| of which property and casualty insurance | 7,315 | 8,191 |
| of which health insurance | 58,904 | 57,191 |
| of which life insurance | 205,370 | 273,755 |
| Deferred profit participation | 118,208 | 413,510 |
| Total (fully consolidated values) | 438,027 | 800,674 |
| Group total | 2007 € 000 |
2006 € 000 |
|---|---|---|
| a) Provision for profit-unrelated premium refunds, profit-related premium refunds and policyholder profit participation |
||
| Situation as at 1 Jan. | 387,165 | 329,333 |
| Changes for: Other changes |
–67,346 | 57,832 |
| Situation as at 31 Dec. | 319,819 | 387,165 |
| b) Deferred profit participation | ||
| Situation as at 1 Jan. | 413,510 | 577,803 |
| Changes for: | ||
| Fluctuation in value, securities available for sale | –348,570 | –153,744 |
| Revaluations affecting income | 53,268 | –10,550 |
| Situation as at 31 Dec. | 118,208 | 413,510 |
| Gross | Unearned premiums |
Actuarial provision |
Provision for outstanding |
Provision for | Provision for | Other actuarial | Group total |
|---|---|---|---|---|---|---|---|
| claims | profit-unrelated premium refunds |
profit-related premium refunds |
provisions | ||||
| and/or | |||||||
| policyholder profit | |||||||
| participation | |||||||
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
| Property and casualty insurance | |||||||
| As at 31 Dec. 2006 | 374,948 | 44,800 | 1,770,641 | 27,222 | 8,191 | 22,494 | 2,248,295 |
| Exchange rate differences | 5,575 | –7 | 8,886 | –39 | 2 | 208 | 14,626 |
| Changes in consolidation scope | 3,840 | 1,720 | 5,560 | ||||
| Portfolio changes | 9,658 | –1,771 | 7,887 | ||||
| Additions | 495 | 825 | 74 | 341 | 1,735 | ||
| Disposals | –562 | –2,052 | –952 | –3,069 | –6,634 | ||
| Premiums written | 1,640,949 | 1,640,949 | |||||
| Premiums earned | –1,618,452 | –1,618,452 | |||||
| Claims in reporting year | 1,468,383 | 1,468,383 | |||||
| Claims payments in reporting year | –743,106 | –743,106 | |||||
| Change in claims from previous years | –45,126 | –45,126 | |||||
| Claims payments in previous years | –538,255 | –538,255 | |||||
| As at 31 Dec. 2007 | 416,518 | 44,727 | 1,921,373 | 25,957 | 7,315 | 19,974 | 2,435,863 |
| Health insurance | |||||||
| As at 31 Dec. 2006 | 15,039 | 1,974,470 | 151,484 | 20,793 | 57,191 | 5,916 | 2,224,894 |
| Exchange rate differences | –42 | 6 | 16 | –19 | |||
| Changes in consolidation scope | 57 | 607 | 665 | ||||
| Portfolio changes | –2,235 | –536 | –2,771 | ||||
| Additions | 140,110 | 2,548 | 5,397 | 25 | 148,080 | ||
| Disposals | –13,890 | –1,142 | –3,685 | –5,248 | –23,964 | ||
| Premiums written | 762,748 | 762,748 | |||||
| Premiums earned | –762,101 | –762,101 | |||||
| Claims in reporting year | 618,367 | 618,367 | |||||
| Claims payments in reporting year | –502,431 | –502,431 | |||||
| Change in claims from previous years | 327 | 327 | |||||
| Claims payments in previous years | –115,450 | –115,450 | |||||
| As at 31 Dec. 2007 | 13,467 | 2,100,697 | 152,385 | 22,199 | 58,904 | 694 | 2,348,345 |
| Life insurance | |||||||
| As at 31 Dec. 2006 | 0 | 12,923,203 | 100,756 | 13 | 687,265 | 15,051 | 13,726,288 |
| Exchange rate differences | 2,111 | 108 | –14 | 8 | 2,212 | ||
| Changes in consolidation scope | 60 | 60 | |||||
| Portfolio changes | –113,344 | 221 | 183 | 151 | –112,790 | ||
| Additions | 282,135 | 63 | –223,441 | 2,815 | 61,572 | ||
| Disposals | –72,888 | –140,415 | –202 | –213,505 | |||
| Claims in reporting year | 1,624,940 | 1,624,940 | |||||
| Claims payments in reporting year | –1,536,891 | –1,536,891 | |||||
| Change in claims from previous years | 25,669 | 25,669 | |||||
| Claims payments in previous years | –96,891 | –96,891 | |||||
| As at 31 Dec. 2007 | 0 | 13,021,276 | 117,913 | 75 | 323,578 | 17,824 | 13,480,666 |
| Group total | |||||||
| As at 31 Dec. 2006 | 389,987 | 14,942,474 | 2,022,881 | 48,027 | 752,647 | 43,461 | 18,199,478 |
| Exchange rate differences | 5,533 | 2,111 | 9,010 | –39 | –13 | 216 | 16,818 |
| Changes in consolidation scope | 3,897 | 60 | 2,327 | 6,284 | |||
| Portfolio changes | 7,422 | –113,344 | –2,086 | 183 | 151 | –107,674 | |
| Additions | 422,740 | 3,436 | –217,969 | 3,181 | 211,387 | ||
| Disposals | –87,340 | –3,193 | –145,051 | –8,519 | –244,103 | ||
| Premiums written | 2,403,697 | 2,403,697 | |||||
| Premiums earned | –2,380,553 | –2,380,553 | |||||
| Claims in reporting year | 3,711,691 | 3,711,691 | |||||
| Claims payments in reporting year | –2,782,428 | –2,782,428 | |||||
| Change in claims from previous years | –19,130 | –19,130 | |||||
| Claims payments in previous years | –750,595 | –750,595 | |||||
| As at 31 Dec. 2007 | 429,985 | 15,166,700 | 2,191,670 | 48,231 | 389,797 | 38,491 | 18,264,873 |
| Reinsurers' share | Unearned | Actuarial | Provision for | Provision for | Provision for | Other actuarial | Group total |
|---|---|---|---|---|---|---|---|
| premiums | provision | outstanding | profit-unrelated | profit-related | provisions | ||
| claims | premium refunds | premium refunds and/or |
|||||
| policyholder profit | |||||||
| € 000 | € 000 | € 000 | € 000 | participation € 000 |
€ 000 | € 000 | |
| Property and casualty insurance | |||||||
| As at 31 Dec. 2006 | 30,951 | 251 | 312,033 | 315 | 0 | 2,843 | 346,393 |
| Exchange rate differences | 123 | –2 | 1,271 | –10 | 1,382 | ||
| Changes in consolidation scope | |||||||
| Portfolio changes | –27,004 | –2,996 | –29,999 | ||||
| Additions | 51 | 584 | 635 | ||||
| Disposals | –4 | –208 | –213 | ||||
| Premiums written | 283,402 | 283,402 | |||||
| Premiums earned | –279,642 | –279,642 | |||||
| Claims in reporting year | 186,134 | 186,134 | |||||
| Claims payments in reporting year | –100,347 | –100,347 | |||||
| Change in claims from previous years | 28,126 | 28,126 | |||||
| Claims payments in previous years | –85,061 | –85,061 | |||||
| As at 31 Dec. 2007 | 7,830 | 244 | 339,161 | 365 | 0 | 3,209 | 350,810 |
| Health insurance | |||||||
| As at 31 Dec. 2006 | 80 | 1,842 | 759 | 0 | 0 | 0 | 2,681 |
| Exchange rate differences | |||||||
| Changes in consolidation scope | |||||||
| Portfolio changes | –13 | –13 | |||||
| Additions | |||||||
| Disposals | –134 | –134 | |||||
| Premiums written | 543 | 543 | |||||
| Premiums earned | –551 | –551 | |||||
| Claims in reporting year | 41 | 41 | |||||
| Claims payments in reporting year | –85 | –85 | |||||
| Change in claims from previous years | 0 | ||||||
| Claims payments in previous years | 0 | ||||||
| As at 31 Dec. 2007 | 72 | 1,708 | 702 | 0 | 0 | 0 | 2,482 |
| Life insurance | |||||||
| As at 31 Dec. 2006 | 0 | 382,186 | 9,775 | 0 | 100 | –187 | 391,873 |
| Exchange rate differences | 26 | 6 | 32 | ||||
| Changes in consolidation scope | 0 | ||||||
| Portfolio changes | 6,903 | 582 | 7,485 | ||||
| Additions | 17,982 | 7 | 17,989 | ||||
| Disposals | –396 | –396 | |||||
| Claims in reporting year | 19,360 | 19,360 | |||||
| Claims payments in reporting year | –13,049 | –13,049 | |||||
| Change in claims from previous years | –470 | –470 | |||||
| Claims payments in previous years | –4,449 | –4,449 | |||||
| As at 31 Dec. 2007 | 0 | 406,701 | 11,754 | 0 | 100 | –180 | 418,374 |
| Group total | |||||||
| As at 31 Dec. 2006 | 31,031 | 384,279 | 322,567 | 315 | 100 | 2,656 | 740,947 |
| Exchange rate differences Changes in consolidation scope |
123 | 24 | 1,277 | –10 | 1,414 | ||
| Portfolio changes Additions |
–27,004 | 6,903 | –2,427 | –22,528 | |||
| 17,982 | 51 | 591 | 18,624 | ||||
| Disposals | –535 | –208 | –743 | ||||
| Premiums written | 283,945 | 283,945 | |||||
| Premiums earned | –280,194 | –280,194 | |||||
| Claims in reporting year | 205,535 | 205,535 | |||||
| Claims payments in reporting year | –113,481 | –113,481 | |||||
| Change in claims from previous years | 27,656 | 27,656 | |||||
| Claims payments in previous years As at 31 Dec. 2007 |
–89,510 | –89,510 | |||||
| 7,902 | 408,653 | 351,616 | 365 | 100 | 3,029 | 771,666 |
| Retention | Unearned premiums |
Actuarial provision |
Provision for outstanding claims |
Provision for profit-unrelated premium refunds |
Provision for profit-related premium refunds and/or |
Other actuarial provisions |
Group total |
|---|---|---|---|---|---|---|---|
| € 000 | € 000 | € 000 | € 000 | policyholder profit participation € 000 |
€ 000 | € 000 | |
| Property and casualty insurance | |||||||
| As at 31 Dec. 2006 | 343,997 | 44,550 | 1,458,607 | 26,907 | 8,191 | 19,651 | 1,901,903 |
| Exchange rate differences | 5,453 | –5 | 7,615 | –39 | 2 | 218 | 13,244 |
| Changes in consolidation scope | 3,840 | 1,720 | 0 | 5,560 | |||
| Portfolio changes | 36,661 | 1,225 | 0 | 37,887 | |||
| Additions | 495 | 774 | 74 | –243 | 1,100 | ||
| Disposals | –557 | –2,052 | –952 | –2,860 | –6,421 | ||
| Premiums written | 1,357,547 | 1,357,547 | |||||
| Premiums earned | –1,338,810 | –1,338,810 | |||||
| Claims in reporting year | 1,282,249 | 1,282,249 | |||||
| Claims payments in reporting year | –642,759 | –642,759 | |||||
| Change in claims from previous years | –73,252 | –73,252 | |||||
| Claims payments in previous years | –453,194 | –453,194 | |||||
| As at 31 Dec. 2007 | 408,689 | 44,482 | 1,582,211 | 25,591 | 7,315 | 16,765 | 2,085,054 |
| Health insurance | |||||||
| As at 31 Dec. 2006 | 14,959 | 1,972,628 | 150,725 | 20,793 | 57,191 | 5,916 | 2,222,212 |
| Exchange rate differences | –42 | 6 | 16 | –19 | |||
| Changes in consolidation scope | 57 | 607 | 665 | ||||
| Portfolio changes | –2,235 | –523 | –2,758 | ||||
| Additions | 140,110 | 2,548 | 5,397 | 25 | 148,080 | ||
| Disposals | –13,755 | –1,142 | –3,685 | –5,248 | –23,830 | ||
| Premiums written | 762,204 | 762,204 | |||||
| Premiums earned | –761,549 | –761,549 | |||||
| Claims in reporting year | 618,326 | 618,326 | |||||
| Claims payments in reporting year | –502,346 | –502,346 | |||||
| Change in claims from previous years | 327 | 327 | |||||
| Claims payments in previous years | –115,450 | –115,450 | |||||
| As at 31 Dec. 2007 | 13,395 | 2,098,989 | 151,683 | 22,199 | 58,904 | 693 | 2,345,863 |
| Life insurance | |||||||
| As at 31 Dec. 2006 | 0 | 12,541,017 | 90,982 | 13 | 687,165 | 15,239 | 13,334,415 |
| Exchange rate differences | 2,085 | 102 | –14 | 8 | 2,180 | ||
| Changes in consolidation scope | 60 | 60 | |||||
| Portfolio changes | –120,247 | –361 | 183 | 151 | –120,274 | ||
| Additions | 264,153 | 63 | –223,441 | 2,808 | 43,583 | ||
| Disposals | –72,492 | –140,415 | –202 | –213,109 | |||
| Claims in reporting year | 1,605,581 | 1,605,581 | |||||
| Claims payments in reporting year | –1,523,842 | –1,523,842 | |||||
| Change in claims from previous years | 26,139 | 26,139 | |||||
| Claims payments in previous years | –92,441 | –92,441 | |||||
| As at 31 Dec. 2007 | 0 | 12,614,575 | 106,159 | 75 | 323,477 | 18,004 | 13,062,292 |
| Group total | |||||||
| As at 31 Dec. 2006 | 358,956 | 14,558,195 | 1,700,314 | 47,712 | 752,547 | 40,805 | 17,458,531 |
| Exchange rate differences | 5,412 | 2,086 | 7,733 | –39 | –13 | 226 | 15,405 |
| Changes in consolidation scope | 3,897 | 60 | 2,327 | 6,284 | |||
| Portfolio changes | 34,426 | –120,247 | 341 | 183 | 151 | –85,146 | |
| Additions | 404,757 | 3,385 | –217,969 | 2,590 | 192,763 | ||
| Disposals | –86,805 | –3,193 | –145,051 | –8,310 | –243,360 | ||
| Premiums written | 2,119,752 | 2,119,752 | |||||
| Premiums earned | –2,100,359 | –2,100,359 | |||||
| Claims in reporting year | 3,506,156 | 3,506,156 | |||||
| Claims payments in reporting year | –2,668,947 | –2,668,947 | |||||
| Change in claims from previous years | –46,786 | –46,786 | |||||
| Claims payments in previous years | –661,085 | –661,085 | |||||
| As at 31 Dec. 2007 | 422,083 | 14,758,046 | 1,840,054 | 47,866 | 389,697 | 35,462 | 17,493,208 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Gross | 2,412,937 | 1,911,516 |
| Reinsurers' share | –346,868 | –305,580 |
| Total | 2,066,069 | 1,605,935 |
As a general rule, the valuation of the actuarial provisions for unit-linked and index-linked life insurance policies corresponds to the investments in unit-linked and index-linked life insurance policies reported at current market values. The resinsurers share is offset by deposits payable in the same amount.
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Liabilities under issued debenture bonds | ||
| UNIQA Versicherungen AG, Vienna | ||
| 4.00%, €150 million , bond 2004/2009 | 150,000 | 149,700 |
| Loan liabilities | 35,900 | 43,825 |
| up to 1 year | 88 | 5,876 |
| between 1 and 5 years | 6,969 | 0 |
| more than 5 years | 28,842 | 37,950 |
| Total | 185,900 | 193,526 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Provisions for pensions | 383,543 | 414,589 |
| Provision for severance payments | 125,998 | 127,830 |
| 509,541 | 542,418 |
| 2007 € 000 |
2006 € 000 |
|
|---|---|---|
| As at 1 Jan. | 542,418 | 523,127 |
| Changes from foreign currency translation | 15 | 2 |
| Withdrawal for pension payments | –29,705 | –27,160 |
| Expenditure in the financial year | –3,187 | 46,450 |
| As at 31 Dec. | 509,541 | 542,418 |
| Calculation factors applied | |
|---|---|
| 2007 | |
| Technical rate of interest | 5.00% |
| Valorisation of wages and salaries | 3.00% |
| Valorisation of pensions | 2.00% |
| Employee turnover rate | dependent on years of service |
| Accounting principles | AVÖ 1999 P – Pagler & Pagler/employee |
| 2006 | |
| Technical rate of interest | 4.50% |
| Valorisation of wages and salaries | 3.00% |
| Valorisation of pensions | 2.00% |
| Employee turnover rate | dependent on years of service |
| Accounting principles | AVÖ 1999 P – Pagler & Pagler/employee |
| Specification of pension expenditures for pensions and similar commitments included in the income statement |
31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Current service cost | 16,929 | 15,443 |
| Interest cost | 24,434 | 23,220 |
| Actuarial profit and loss | –44,737 | 7,525 |
| Income and expenditures from budget changes | 188 | 262 |
| Total | –3,187 | 46,450 |
Under the contribution-oriented company pension scheme, the employer pays fixed amounts into company pension funds. The employer has satisfied its obligation by making these contributions.
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Contributions to company pension funds | 1,134 | 942 |
| Balance sheet figures prev. year |
Currency trans lation changes |
Change in consolidation scope |
Utilisation | Reversals | Reclassifications | Additions | Balance sheet figures 2007 |
|
|---|---|---|---|---|---|---|---|---|
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
| Provisions for unconsumed vacations | 33,610 | 36 | 49 | –1,414 | –153 | 0 | 3,114 | 35,242 |
| Provisions for anniversary payments | 15,996 | 0 | 0 | –103 | –503 | 0 | –431 | 14,959 |
| 49,606 | 36 | 49 | –1,517 | –656 | 0 | 2,683 | 50,201 | |
| Other personnel provisions | 12,916 | 12 | –49 | –8,864 | –948 | –538 | 13,681 | 16,209 |
| Provisions for customer relations and marketing | 32,851 | –13 | 0 | –29,775 | –1,777 | 0 | 30,080 | 31,365 |
| Provision for variable components of remuneration |
14,614 | 5 | 0 | –11,942 | –173 | –228 | 13,919 | 16,193 |
| Provision for legal and consulting expenses | 5,136 | –1 | 4 | –2,093 | –1,111 | 0 | 3,064 | 4,998 |
| Provision for premium adjustment from reinsurance contracts |
6,261 | –44 | 0 | –876 | –1,737 | 313 | 6,759 | 10,675 |
| Provision for portfolio maintenance commission |
1,955 | 0 | 0 | 0 | –1,955 | 0 | 2,535 | 2,535 |
| Other provisions | 56,561 | 9 | 2 | –25,741 | –16,332 | 67 | 47,530 | 62,096 |
| 130,294 | –33 | –44 | –79,292 | –24,034 | –387 | 117,567 | 144,071 | |
| Total | 179,900 | 3 | 5 | –80,809 | –24,690 | –387 | 120,250 | 194,272 |
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Other provisions1) with a high probability of utilisation (more than 90%) |
||
| up to 1 year | 72,351 | 73,286 |
| of more than 1 up to 5 years | 3,735 | 2,907 |
| more than 5 years | 10,408 | 4,915 |
| 86,494 | 81,107 | |
| Other provisions1) with a lower probability of consumption (less than 90%) |
||
| up to 1 year | 55,629 | 47,143 |
| of more than 1 up to 5 years | 1,621 | 1,672 |
| more than 5 years | 327 | 371 |
| 57,577 | 49,186 | |
| Total | 144,071 | 130,294 |
1) Without unconsumed vacations and anniversary payments.
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
||
|---|---|---|---|
| I. | Reinsurance liabilities | ||
| 1. Deposits held under reinsurance business ceded | 761,805 | 702,765 | |
| 2. Accounts payable under reinsurance operations | 34,975 | 21,563 | |
| 796,780 | 724,329 | ||
| II. | Other liabilities | ||
| Liabilities under insurance business | |||
| Liabilities under direct insurance business | |||
| to policyholders | 139,318 | 122,319 | |
| to intermediaries | 123,603 | 99,036 | |
| to insurance companies | 8,791 | 5,341 | |
| 271,712 | 226,696 | ||
| Liabilities to credit institutions | 3,582 | 3,922 | |
| Other liabilities | 445,484 | 424,478 | |
| of which for taxes | 46,379 | 45,652 | |
| of which for social security | 10,381 | 10,055 | |
| of which from fund consolidation | 260,874 | 251,376 | |
| Total other liabilities | 720,778 | 655,096 | |
| Subtotal Of which liabilities with a remaining term of |
1,517,558 | 1,379,425 | |
| up to 1 year | 885,731 | 766,296 | |
| more than 1 up to 5 years | 9,053 | 41,472 | |
| more than 5 years | 622,774 | 571,657 | |
| III. | Other liabilities | 1,517,558 | 1,379,425 |
| Deferred income | 9,483 | 8,232 | |
| Total payables and other liabilities | 1,527,041 | 1,387,657 |
The item "deferred income" basically comprises the balance of the deferred income regarding the indirect business settlement.
| 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|
|---|---|---|
| Liabilities from income tax | 41,618 | 66,754 |
| of which liabilities with a remaining term of | ||
| up to 1 year | 3,853 | 6,150 |
| more than 1 up to years | 37,281 | 60,074 |
| more than 5 years | 483 | 530 |
| Cause of origin | 31 Dec. 2007 € 000 |
31 Dec. 2006 € 000 |
|---|---|---|
| Actuarial items | 142,052 | 152,276 |
| Untaxed reserves | 27,385 | 27,761 |
| Shares in affiliated companies | 28,425 | 28,425 |
| Investments | 120,952 | 79,261 |
| Other | 14,101 | 12,166 |
| Total | 332,916 | 299,889 |
| of which not affecting income | 55,238 | 57,845 |
| Direct business | 2007 € 000 |
2006 € 000 |
|---|---|---|
| Property and casualty insurance | 2,157,697 | 1,996,674 |
| Health insurance | 907,375 | 888,902 |
| Life insurance | 1,393,344 | 1,577,346 |
| Total (fully consolidated values) | 4,458,416 | 4,462,923 |
| Of which written in: | ||
| Austria | 3,036,834 | 3,071,160 |
| Other member states of the EU and other signatory states of the Treaty on the European Economic Area |
1,271,167 | 1,280,195 |
| Other countries | 150,415 | 111,568 |
| Total (fully consolidated values) | 4,458,416 | 4,462,923 |
| Indirect business | 2007 € 000 |
2006 € 000 |
|---|---|---|
| Property and casualty insurance | 40,052 | 40,473 |
| Health insurance | 384 | 898 |
| Life insurance | 29,037 | 27,844 |
| Total (fully consolidated values) | 69,473 | 69,214 |
| 2007 € 000 |
2006 € 000 |
|
|---|---|---|
| Total (fully consolidated values) | 4,527,889 | 4,532,137 |
| Premiums written in property | 2007 | 2006 |
|---|---|---|
| and casualty insurance | € 000 | € 000 |
| Direct business | ||
| Fire and business interruption insurance | 179,233 | 166,131 |
| Household insurance | 166,501 | 157,768 |
| Other property insurance | 203,727 | 188,244 |
| Motor TPL insurance | 554,404 | 511,755 |
| Other motor insurance | 373,768 | 335,076 |
| Casualty insurance | 240,664 | 224,076 |
| Liability insurance | 219,831 | 210,712 |
| Legal expenses insurance | 49,568 | 44,663 |
| Marine, aviation and transport insurance | 102,136 | 100,525 |
| Other insurance | 67,865 | 57,725 |
| Total | 2,157,697 | 1,996,674 |
| Indirect business | ||
| Marine, aviation and transport insurance | 2,407 | 2,529 |
| Other insurance | 37,645 | 37,943 |
| Total | 40,052 | 40,473 |
| Total direct and indirect business (fully consolidated values) |
2,197,749 | 2,037,147 |
| Reinsurance premiums ceded | 2007 € 000 |
2006 € 000 |
|---|---|---|
| Property and casualty insurance | 307,547 | 293,678 |
| Health insurance | 1,397 | 1,085 |
| Life insurance | 79,505 | 77,603 |
| Total (fully consolidated values) | 388,449 | 372,366 |
| 2007 € 000 |
2006 € 000 |
|
|---|---|---|
| Property and casualty insurance | 1,858,355 | 1,715,604 |
| Gross | 2,160,721 | 2,008,241 |
| Reinsurers' share | –302,366 | –292,637 |
| Health insurance | 905,623 | 886,672 |
| Gross | 907,028 | 887,746 |
| Reinsurers' share | –1,405 | –1,074 |
| Life insurance | 1,342,399 | 1,527,391 |
| Gross | 1,421,897 | 1,604,998 |
| Reinsurers' share | –79,498 | –77,607 |
| Total (fully consolidated values) | 4,106,377 | 4,129,666 |
| Premiums earned in indirect business | 2007 € 000 |
2006 € 000 |
|---|---|---|
| Property and casualty insurance | 39,969 | 41,155 |
| Posted immediately | 10,457 | 10,836 |
| Posted after up to one year | 29,512 | 30,318 |
| Posted after more than one year | 0 | 0 |
| Health insurance | 384 | 898 |
| Posted immediately | 384 | 495 |
| Posted after up to one year | 0 | 403 |
| Posted after more than one year | 0 | 0 |
| Life insurance | 29,037 | 27,844 |
| Posted immediately | 4,131 | 5,452 |
| Posted after up to one year | 24,906 | 22,339 |
| Posted after more than one year | 0 | 53 |
| Total (fully consolidated values) | 69,391 | 69,896 |
| Earnings from indirect business | 2007 € 000 |
2006 € 000 |
|---|---|---|
| Property and casualty insurance | 7,880 | 11,985 |
| Health insurance | –52 | –137 |
| Life insurance | 1,391 | 866 |
| Total (fully consolidated values) | 9,218 | 12,714 |
| Reinsurance commission and profit shares from reinsurance business ceded |
2007 € 000 |
2006 € 000 |
|---|---|---|
| Property and casualty insurance | 59,842 | 59,539 |
| Health insurance | 106 | 122 |
| Life insurance | 11,478 | 21,203 |
| Total (fully consolidated values) | 71,426 | 80,865 |
| 2007 2006 2007 2006 € 000 € 000 € 000 € 000 Properties held as financial investments –19,336 2,757 8,399 8,726 Shares in associated companies 201,148 36,426 64,383 –496 Variable-yield securities 50,086 69,131 14,454 53,930 1. Available for sale 45,460 63,100 9,886 47,015 2. Reported in the income statement 4,626 6,031 4,568 6,915 Fixed interest securities 31,721 33,156 15,050 28,231 1. Held to maturity 0 0 0 0 2. Available for sale 31,509 32,284 14,570 25,663 3. Reported in the income statement 212 872 480 2,568 Loans and other investments 20,684 13,877 17,690 20,244 1. Loans 10,259 13,107 13,770 16,074 2. Other investments 10,425 770 3,920 4,169 Derivative financial instruments 14,170 8,753 14,851 6,882 interest expenditures and other –16,777 –12,448 –1,306 –3,717 281,696 151,652 133,521 113,798 |
By segment | Property and casualty insurance | Health insurance | |
|---|---|---|---|---|
| I. | ||||
| II. | ||||
| III. | ||||
| IV. | ||||
| V. | ||||
| VI. | ||||
| VII. Expenditures for asset management, | ||||
| Total (fully consolidated values) |
The exceptionally high income from shares in associated companies resulted, during the financial year, in sales profit (€72.937 million) as well as profit from dilution (€211.416 million), within the framework of the capital increases and the floatation of STRABAG SE. In addition, the net investment income from investments decreased during the financial year, due to the effects of the sub-prime crisis (€101.300 million) in the area of fixed interest and variable-yield securities.
| By income type | Ordinary income | Write-ups and unrealised capital gains |
Realised capital gains | ||||
|---|---|---|---|---|---|---|---|
| 2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
||
| I. Properties held as financial investments |
48,223 | 43,985 | 0 | 0 | 1,516 | 8,820 | |
| II. Shares in associated companies |
18,288 | 45,017 | 211,416 | 0 | 73,593 | 0 | |
| III. Variable-yield securities |
129,863 | 153,107 | 107,174 | 44,400 | 318,192 | 333,091 | |
| 1. Available for sale | 109,757 | 122,585 | 8,178 | 661 | 265,103 | 303,447 | |
| 2. Reported in the income statement | 20,106 | 30,522 | 98,996 | 43,739 | 53,089 | 29,644 | |
| IV. Fixed interest securities |
518,154 | 440,069 | 75,851 | 2,141 | 38,099 | 43,857 | |
| 1. Held to maturity | 0 | 0 | 0 | 0 | 0 | 0 | |
| 2. Available for sale | 488,146 | 410,441 | 66,638 | 1,553 | 35,578 | 42,017 | |
| 3. Reported in the income statement | 30,008 | 29,627 | 9,213 | 589 | 2,521 | 1,840 | |
| V. Loans and other investments |
62,171 | 67,740 | 162 | 2,399 | 0 | 0 | |
| 1. Loans | 39,703 | 49,901 | 0 | 2,399 | 0 | 0 | |
| 2. Other investments | 22,468 | 17,839 | 162 | 0 | 0 | 0 | |
| VI. Derivative financial instruments |
–22,707 | –26,327 | 117,997 | 65,361 | 153,434 | 139,993 | |
| VII. Expenditures for asset management, interest expenditures and other |
–27,152 | –23,326 | 0 | 0 | 0 | 0 | |
| Total (fully consolidated values) | 726,840 | 700,265 | 512,601 | 114,302 | 584,834 | 525,761 |
The updating of the value correction applies to both appreciation and depreciation of financial investments, with the exception of the trading portfolio and financial assets at fair value through profit or loss. The interest income from impaired portfolio items amounts to €42.415 million (31 Dec. 2006: €116.578 million).
The amortisations and unrealised losses of €683.469 million include expenses from currency fluctuations to the value of €207.818 million. These expenses from currency fluctuations are offset by income from hedging business amounting to €178.131 million, which are shown under income from derivative financial instruments.
| Of which securities, available for sale Type of investment |
Ordinary income | Write-ups and unrealised capital gains |
Realised capital gains | ||||
|---|---|---|---|---|---|---|---|
| 2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
||
| III. Variable-yield securities |
|||||||
| 1. Available for sale | 109,757 | 122,585 | 8,178 | 661 | 265,103 | 303,447 | |
| Shares in associated companies | 1,709 | –1,264 | 0 | 0 | 3,984 | 9 | |
| Shares | 17,107 | 20,498 | 597 | 35 | 132,013 | 217,794 | |
| Equity fonds | 12,513 | 11,126 | 0 | 0 | 67,280 | 52,053 | |
| Debenture bonds. not capital guaranteed | 21,636 | 29,528 | 129 | 581 | 42,731 | 24,233 | |
| Other variable-yield securities | 51,353 | 26,622 | 7,452 | 84 | 347 | 117 | |
| Participating interests and other investments | 5,439 | 36,074 | 0 | –39 | 18,749 | 9,240 | |
| IV. Fixed interest securities |
|||||||
| 2. Available for sale | |||||||
| Fixed interests | 488,146 | 410,441 | 66,638 | 1,553 | 35,578 | 42,017 |
| Life insurance | Consolidated financial statements | ||
|---|---|---|---|
| 2007 2006 2007 € 000 € 000 € 000 |
2006 € 000 |
||
| 6,344 3,370 –4,593 |
14,852 | ||
| 37,544 9,088 303,075 |
45,017 | ||
| 222,522 302,237 287,062 |
425,298 | ||
| 168,165 257,310 223,511 |
367,425 | ||
| 54,357 44,927 63,551 |
57,873 | ||
| 180,141 209,024 226,912 |
270,411 | ||
| 0 0 0 |
0 | ||
| 172,587 188,906 218,666 |
246,853 | ||
| 7,554 20,118 8,247 |
23,559 | ||
| 11,543 27,735 49,917 |
61,856 | ||
| 11,426 14,835 35,455 |
44,017 | ||
| 117 12,900 14,462 |
17,839 | ||
| 128,762 80,599 157,783 |
96,233 | ||
| –9,068 –7,160 –27,152 |
–23,326 | ||
| 577,788 624,892 993,005 |
890,342 |
| Write-offs and unrealised Realised capital losses Consolidated financial statements capital losses |
Of which value adjustment |
||||||
|---|---|---|---|---|---|---|---|
| 2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
| –54,251 | –36,630 | –81 | –1,323 | –4,593 | 14,852 | –25,000 | –11,451 |
| 0 | 0 | –222 | 0 | 303,075 | 45,017 | 0 | |
| –192,286 | –88,807 | –75,881 | –16,493 | 287,062 | 425,298 | –40,832 | –32,530 |
| –94,063 | –53,011 | –65,465 | –6,257 | 223,511 | 367,425 | –40,832 | –32,530 |
| –98,223 | –35,797 | –10,416 | –10,235 | 63,551 | 57,873 | 0 | |
| –358,301 | –166,729 | –46,891 | –48,928 | 226,912 | 270,411 | –140,012 | –91,154 |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| –327,715 | –159,091 | –43,982 | –48,068 | 218,666 | 246,853 | –140,012 | –91,154 |
| –30,587 | –7,638 | –2,909 | –860 | 8,247 | 23,559 | 0 | |
| –12,414 | –8,283 | –3 | 0 | 49,917 | 61,856 | 0 | |
| –4,245 | –8,283 | –3 | 0 | 35,455 | 44,017 | 0 | |
| –8,169 | 0 | 0 | 0 | 14,462 | 17,839 | 0 | |
| –66,217 | –22,420 | –24,724 | –60,373 | 157,783 | 96,233 | 0 | |
| 0 | 0 | 0 | 0 | –27,152 | –23,326 | 0 | |
| –683,469 | –322,869 | –147,801 | –127,116 | 993,005 | 890,342 | –205,844 | |
| Write-offs and unrealised capital losses |
Realised capital losses | Consolidated financial statements | Of which value adjustment |
||||
|---|---|---|---|---|---|---|---|
| 2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
| –94,063 | –53,011 | –65,465 | –6,257 | 223,511 | 367,425 | –40,832 | –32,530 |
| 0 | 0 | –31 | –9 | 5,662 | –1,263 | 0 | |
| –45,166 | –18,482 | –42,935 | –527 | 61,615 | 219,318 | –33,982 | |
| –8,501 | –1 | –12,174 | –2,081 | 59,119 | 61,097 | –5,427 | |
| –31,776 | –17,860 | –1,646 | –99 | 31,075 | 36,382 | 0 | |
| –4,942 | –2,229 | –8,202 | –2,920 | 46,007 | 21,675 | 2,254 | |
| –3,677 | –14,438 | –476 | –621 | 20,035 | 30,216 | –3,677 | |
| –327,715 | –159,091 | –43,982 | –48,068 | 218,666 | 246,853 | –140,012 | |
| 2007 € 000 |
2006 € 000 |
||
|---|---|---|---|
| a) | Other actuarial income | 13,247 | 18,771 |
| Property and casualty insurance | 10,858 | 15,538 | |
| Health insurance | 516 | 675 | |
| Life insurance | 1,874 | 2,558 | |
| b) | Other non-actuarial income | 22,263 | 19,534 |
| Property and casualty insurance | 16,461 | 14,443 | |
| Health insurance | 530 | 655 | |
| Life insurance | 5,272 | 4,435 | |
| of which | |||
| Services rendered | 7,619 | 7,312 | |
| Changes in exchange rates | 4,350 | 3,629 | |
| Other | 10,294 | 8,593 | |
| c) | Other income | 1,621 | 3,579 |
| From foreign currency conversion | 1,629 | 2,967 | |
| From other | –9 | 612 | |
| Total (fully consolidated values) | 37,131 | 41,884 |
| Gross | Reinsurers' share | Retention | |||||
|---|---|---|---|---|---|---|---|
| 2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
2007 € 000 |
2006 € 000 |
||
| Property and casualty insurance | |||||||
| Expenditure for claims | |||||||
| Claims paid | 1,296,433 | 1,204,312 | –183,900 | –150,890 | 1,112,534 | 1,053,422 | |
| Change in provision for outstanding claims | 147,397 | 60,800 | –32,660 | –4,053 | 114,737 | 56,746 | |
| Total | 1,443,830 | 1,265,112 | –216,559 | –154,943 | 1,227,271 | 1,110,169 | |
| Change in actuarial provision | –104 | –1,723 | 5 | –4,157 | –99 | –5,880 | |
| Change in other actuarial provisions | –1,672 | –491 | –9 | –1 | –1,681 | –492 | |
| Expenditure for profit-unrelated and profit-related premium refunds |
26,082 | 24,933 | –188 | 1,328 | 25,894 | 26,262 | |
| Total amount of benefits | 1,468,136 | 1,287,832 | –216,751 | –157,773 | 1,251,385 | 1,130,059 | |
| Health insurance | |||||||
| Expenditure for claims | |||||||
| Claims paid | 653,484 | 649,390 | –968 | –616 | 652,516 | 648,774 | |
| Change in provision for outstanding claims | 996 | –2,474 | 58 | –726 | 1,053 | –3,199 | |
| Total | 654,480 | 646,917 | –910 | –1,342 | 653,570 | 645,575 | |
| Change in actuarial provision | 126,213 | 132,727 | 134 | 133 | 126,347 | 132,861 | |
| Change in other actuarial provisions | 0 | 9 | 0 | 0 | 0 | 9 | |
| Expenditure for profit-unrelated and profit-related premium refunds |
31,336 | 27,352 | –3 | –2 | 31,333 | 27,350 | |
| Total amount of benefits | 812,028 | 807,004 | –779 | –1,210 | 811,250 | 805,794 | |
| Life insurance | |||||||
| Expenditure for claims | |||||||
| Claims paid | 1,532,342 | 975,275 | –60,214 | –48,192 | 1,472,128 | 927,083 | |
| Change in provision for outstanding claims | 17,050 | 5,807 | –1,975 | 3,997 | 15,074 | 9,804 | |
| Total | 1,549,392 | 981,082 | –62,190 | –44,195 | 1,487,202 | 936,887 | |
| Change in actuarial provision | –144,232 | 638,341 | –15,136 | –20,207 | –159,368 | 618,134 | |
| Change in other actuarial provisions | 253 | –2,418 | –41 | 0 | 212 | –2,418 | |
| Expenditure for profit-unrelated and profit-related premium refunds and/or (deferred) profit participation |
206,344 | 227,085 | 0 | 95 | 206,344 | 227,180 | |
| Total amount of benefits | 1,611,757 | 1,844,089 | –77,367 | –64,307 | 1,534,390 | 1,779,782 | |
| Total (fully consolidated values) | 3,891,922 | 3,938,925 | –294,897 | –223,290 | 3,597,024 | 3,715,635 |
| 2007 € 000 |
2006 € 000 |
||
|---|---|---|---|
| Property and casualty insurance | |||
| a) | Acquisition costs | ||
| Payments | 455,648 | 424,170 | |
| Change in deferred acquisition costs | –10,356 | –12,342 | |
| b) | Other operating expenses | 220,234 | 216,582 |
| 665,527 | 628,410 | ||
| Health insurance | |||
| a) | Acquisition costs | ||
| Payments | 86,806 | 86,845 | |
| Change in deferred acquisition costs | –816 | 64 | |
| b) | Other operating expenses | 43,301 | 49,878 |
| 129,290 | 136,787 | ||
| Life insurance | |||
| a) | Acquisition costs | ||
| Payments | 269,870 | 252,282 | |
| Change in deferred acquisition costs | –7,492 | –42,576 | |
| b) | Other operating expenses | 69,909 | 72,902 |
| 332,287 | 282,608 | ||
| Total (fully consolidated values) | 1,127,104 | 1,047,805 |
| Income tax | 2007 € 000 |
2006 € 000 |
|---|---|---|
| Actual tax in reporting year | 33,052 | 52,218 |
| Actual tax in previous year | –9,600 | 9,086 |
| Deferred tax | 47,811 | 2,117 |
| Total (fully consolidated values) | 71,263 | 63,422 |
| Reconciliation statement | 2007 | 2006 | |
|---|---|---|---|
| € 000 | € 000 | ||
| A. | Profit from ordinary activities | 340,256 | 238,487 |
| B. | Anticipated tax expenditure (A * Group tax rate) |
85,206 | 59,607 |
| Adjusted by tax effects from | |||
| 1) Tax-free investment income | –7,191 | –10,943 | |
| 2) Other | –6,752 | 14,757 | |
| Amortisation of goodwill | 4,622 | 91 | |
| Non-deductible expenses/ | |||
| other tax-exempt income | –3,446 | 1,406 | |
| Changes/deviations in tax rates | –6,028 | –45 | |
| Deviations in tax rates | 6,336 | 370 | |
| Taxes previous year | –9,600 | 9,086 | |
| Lapse of loss carried forward and other | 1,364 | 3,849 | |
| C. | Income tax expenditure | 71,263 | 63,422 |
| Average effective tax burden in % | 20,9 | 26,6 |
| 2007 € 000 |
2006 € 000 |
||
|---|---|---|---|
| a) | Other actuarial expenses | 58,586 | 74,391 |
| Property and casualty insurance | 20,119 | 33,129 | |
| Health insurance | 2,773 | 5,101 | |
| Life insurance | 35,694 | 36,161 | |
| b) | Other non-actuarial expenses | 26,875 | 27,009 |
| Property and casualty insurance | 24,316 | 23,513 | |
| Health insurance | 513 | 565 | |
| Life insurance | 2,047 | 2,931 | |
| of which | |||
| Services rendered | 1,391 | 2,155 | |
| Exchange rate losses | 6,703 | 8,821 | |
| Motor vehicle registration | 6,603 | 6,404 | |
| Other | 12,178 | 9,629 | |
| c) | Other expenses | 1,107 | 5,623 |
| For foreign currency translation | 469 | 304 | |
| For other | 638 | 5,320 | |
| Total (fully consolidated values) | 86,569 | 107,024 |
In principle, the expected Group income tax rate 25% applied to all segments. To the extent that the minimum taxation is applied in life insurance at an assumed profit participation of 85%, a different corporate tax rate applies here. .
| Personnel expenses1) | 2007 € 000 |
2006 € 000 |
|---|---|---|
| Salaries and wages | 311,133 | 291,929 |
| Expenses for severance payments | 12,894 | 17,942 |
| Expenses for employee pensions | –14,985 | 30,788 |
| Expenditure on mandatory social security contributions as well as income-based charges and compulsory contributions |
90,259 | 87,909 |
| Other social expenditures | 5,630 | 5,926 |
| Total | 404,931 | 434,493 |
| of which business development | 126,745 | 134,928 |
| of which administration | 259,310 | 280,425 |
1) The data are based on IFRS valuation.
| Average number of employees | 2007 | 2006 |
|---|---|---|
| Total | 10,997 | 10,748 |
| of which business development | 4,273 | 3,958 |
| of which administration | 6,724 | 6,791 |
| 2007 € 000 |
2006 € 000 |
|
|---|---|---|
| Expenses for severance payments and employee pen sions amounted to |
||
| Members of the Management Board and executive employees, in accordance with Section 80 para |
||
| graph 1 of the Stock Corporation Law | 5,786 | 5,929 |
| Other employees | 37,770 | 34,016 |
Both figures include the expenditure for pensioners and surviving dependants (basis: Business Code valuation). The indicated expenses were charged to the Group companies based on defined company processes.
Members of the Management Board receive remunerations exclusively from UNIQA Versicherungen AG.
| 2007 € 000 |
2006 € 000 |
|
|---|---|---|
| The expenses for remuneration of Management Board members attributable to the reporting year amounted to: |
||
| Regular payments | 2,236 | 1,902 |
| Performance-related remunerations | 1,815 | 1,540 |
| Total | 4,051 | 3,442 |
| of which charged to operational subsidiaries: | 3,848 | 3,270 |
| Former members of the Management Board and their surviving dependants were paid: |
2,665 | 2,574 |
| Because of pension commitments to these persons, the following provision was set up on 31 December |
21,054 | 24,796 |
| 2007 € 000 |
2006 € 000 |
|
|---|---|---|
| For the current financial year (provision) | 410 | 410 |
| Meeting attendance fee | 41 | 39 |
| Total | 451 | 449 |
Former members of the Supervisory Board did not receive any remuneration.
The information according to Section 239 paragraph 1 of the Austrian Business Code in connection with 80b of the Insurance Supervisory Act, which must be included in the appendix as mandatory information for financial statements according to IFRS, releasing the company from the requirement to prepare financial statements in accordance with the Austrian Commercial Code, are defined for the individual financial statements according to the provisions of the Austrian Business Code, with expanded scope. In addition to the executive functions (Management Board) of UNIQA Versicherungen AG, the individual financial statements also include the earnings of the Management Boards of the subsidiaries, insofar as there exists a legally binding basis with UNIQA Versicherungen AG.
A variable income component was made available to the members of the Management Board for the 2007 financial year, in the form of bonus agreements, and provided as a one-time payment based on the earnings situation in 2007. The basis for determining the size of the bonus is the return on equity based on the 2007 IFRS consolidated financial statements, of UNIQA Versicherungen AG.
Retirement pensions, a pension for occupational invalidity as well as a widow's and orphans' pension have been established. The retirement pension is due upon meeting the requirements for the old-age pension according to the General Social Security Act. The pension amount is calculated from a percentage of a contractually established assessment basis. In the event of early pension eligibility according to the transitional provisions included in the General Social Security Act, the pension claim is reduced. For the occupational invalidity pension and the pension for surviving dependants, flat rates are provided as the minimum pension.
Severance payments have been agreed upon based partially on the provisions of the Salaried Employee Act. The benefits are fundamentally retained in the event of termination of membership of the Management Board; however, a reduction rule based on the remaining time until meeting the claim requirements for the old-age pension according to the General Social Security Act applies.
Remunerations to the Supervisory Board are passed at the Annual General Meeting as a total amount for the work in the past financial year. The remuneration amount applicable to the individual Supervisory Board members is based on the position within the Supervisory Board and the number of committee positions.
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.
| Related companies and persons | 2007 € 000 |
2006 € 000 |
|---|---|---|
| Receivables and liabilities with affiliated and associ ated companies, as well as related persons |
||
| Mortgage loans and other loans | 14,264 | 80 |
| Affiliated companies | 14,264 | 80 |
| Receivables | 5,098 | 2,383 |
| Other receivables | 5,098 | 2,383 |
| Affiliated companies | 5,085 | 2,376 |
| Associated companies | 13 | 6 |
| Liabilities | 2,226 | 1,270 |
| Other liabilities | 2,226 | 1,270 |
| Affiliated companies | 2,226 | 1,270 |
| Income and expenses of affiliated companies as well as related persons |
||
| Income | 92 | –1,271 |
| Investment income | 19 | –1,274 |
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.
| 2007 € 000 |
2006 € 000 |
|
|---|---|---|
| Current leasing expenses | 28 | 21 |
| Future leasing payments due to the financing of the new UNIQA headquarters in Vienna |
||
| up to 1 year | 6,048 | 5,693 |
| of more than 1 year up to 5 years | 24,279 | 22,878 |
| of more than 5 years | 60,483 | 56,932 |
| Total | 90,810 | 85,503 |
| Income from subleasing | 489 | 297 |
We moved into the new UNIQA 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.
.
| Other financial commitments and contingent liabilities |
2007 € 000 |
2006 € 000 |
|---|---|---|
| Contingent liabilities from risks of litigation | 7,981 | 8,563 |
| Foreign | 7,981 | 8,563 |
| Other contingent liabilities (affiliated, not consolidated) |
0 | 0 |
| Foreign | 0 | 0 |
| Other contingent liabilities | 1,425 | 130 |
| Foreign | 1,425 | 130 |
| Total | 9,405 | 8,693 |
Affiliated companies 19 –1,274 Other income 73 3 Affiliated companies 73 3
| Company | Type | Location | Equity in € million1) |
Share in equity in %2) |
|---|---|---|---|---|
| Domestic insurance companies | ||||
| UNIQA Versicherungen AG (Group Holding Company) | 1029 Vienna | |||
| UNIQA Sachversicherung AG | Full | 1029 Vienna | 123.6 | 100.0 |
| UNIQA Personenversicherung AG | Full | 1029 Vienna | 368.5 | 63.4 |
| Salzburger Landes-Versicherung AG | Full | 5020 Salzburg | 21.2 | 100.0 |
| Raiffeisen Versicherung AG | Full | 1029 Vienna | 395.6 | 100.0 |
| CALL DIRECT Versicherung AG | Full | 1029 Vienna | 11.3 | 100.0 |
| FINANCE LIFE Lebensversicherung AG | Full | 1029 Vienna | 19.3 | 100.0 |
| SK Versicherung Aktiengesellschaft | Equity | 1020 Vienna | 6.9 | 25.0 |
| Foreign insurance companies | ||||
| UNIQA Assurances S.A. | Full | Switzerland, Geneva | 9.5 | 100.0 |
| UNIQA Re AG | Full | Switzerland, Zurich | 85.2 | 100.0 |
| UNIQA Assicurazioni S.p.A. | Full | Italy, Milan | 125.6 | 100.0 |
| UNIQA poištovˇna a.s. ' | Full | Slovakia, Bratislava | 22.1 | 99.9 |
| UNIQA pojištovˇna, a.s. ' | Full | Czech Republic, Prague | 30.3 | 100.0 |
| UNIQA osiguranje d.d. | Full | Croatia, Zagreb | 8.1 | 80.0 |
| UNIQA Protezione S.p.A | Full | Italy, Udine | 19.3 | 89.3 |
| UNIQA Towarzystwo Ubezpieczen S.A. | Full | Poland, Lodz | 69.6 | 69.9 |
| UNIQA Towarzystwo Ubezpieczen na Zycie S.A. | Full | Poland, Lodz | 5.6 | 69.7 |
| UNIQA Biztosító Zrt. | Full | Hungary, Budapest | 42.7 | 85.0 |
| UNIQA Lebensversicherung AG | Full | Liechtenstein, Vaduz | 4.8 | 100.0 |
| UNIQA Versicherung AG | Full | Liechtenstein, Vaduz | 3.2 | 100.0 |
| Towarzystwo Ubezpieczen FILAR S.A. | Full | Poland, Stettin | 26.1 | 96.2 |
| Mannheimer AG Holding | Full | Germany, Mannheim | 66.7 | 90.8 |
| Mannheimer Versicherung AG | Full | Germany, Mannheim | 49.1 | 100.0 |
| mamax Lebensversicherung AG | Full | Germany, Mannheim | 8.6 | 100.0 |
| Mannheimer Versicherung AG | Full | Switzerland, Zurich | 23.7 | 100.0 |
| Mannheimer Krankenversicherung AG | Full | Germany, Mannheim | 9.1 | 100.0 |
| UNIQA Previdenza S.p.A. | Full | Italy, Milan | 50.0 | 80.0 |
| UNIQA Osiguranje d.d. | Full | Bosnia and Herzegovina, Sarajevo | 5.2 | 99.8 |
| ASTRA S.A. | Equity | Romania, Bucharest | 34.2 | 27.0 |
| UNIQA Insurance plc | Full | Bulgaria, Sofia | 10.0 | 62.5 |
| UNIQA Life Insurance plc | Full | Bulgaria, Sofia | 4.5 | 99.7 |
| UNIQA a.d.o. | Full | Serbia, Belgrade | 5.4 | 80.0 |
| Credo-Classic | Equity | Ukraine, Kiev | 11.5 | 35.3 |
| UNIQA LIFE | Full | Ukraine, Kiev | 1.0 | 100.0 |
| UNIQA životno osiguranje a.d. (formerly Zepter osiguranje a.d.) | Full | Montenegro, Podgorica | 0.5 | 100.0 |
| UNIQA neživotno osiguranje a.d.o. | Full | Serbia, Belgrade | 5.9 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Full | Montenegro, Podgorica | 2.3 | 100.0 |
| Company | Type | Location | Equity | Share in equity |
|---|---|---|---|---|
| Group domestic service companies | in € million1) | in %2) | ||
| UNIQA Immobilien-Service GmbH | Full | 1029 Vienna | 0.3 | 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 | 0.8 | 100.0 |
| Raiffeisen Versicherungsmakler GmbH | Equity | 6900 Bregenz | 0.1 | 50.0 |
| Versicherungsbüro Dr. Ignaz Fiala Gesellschaft m.b.H. | *2) | 1010 Vienna | 33.3 | |
| RSG – Risiko Service und Sachverständigen GmbH | *1) | 1029 Vienna | 100.0 | |
| Dr. E. Hackhofer EDV-Softwareberatung Gesellschaft m.b.H. | Full | 1070 Vienna | 1.0 | 51.0 |
| UNIQA Software-Service GmbH | Full | 1029 Vienna | 0.6 | 100.0 |
| SYNTEGRA Softwarevertrieb und Beratung GmbH | Full | 3820 Raabs | 0.4 | 100.0 |
| UNIQA Finanz-Service GmbH | Full | 1020 Vienna | 0.3 | 100.0 |
| UNIQA Alternative Investments GmbH | Full | 1020 Vienna | 2.1 | 100.0 |
| UNIQA International Versicherungs-Holding GmbH | Full | 1029 Vienna | 115.9 | 100.0 |
| UNIQA International Beteiligungs-Verwaltungs GmbH | Full | 1029 Vienna | 390.7 | 100.0 |
| Alopex Organisation von Geschäftskontakten GmbH | *1) | 1020 Vienna | 100.0 | |
| RC RISK-CONCEPT Versicherungsmakler GmbH | *1) | 1029 Vienna | 100.0 | |
| Allfinanz Versicherungs- und Finanzservice GmbH | Full | 1010 Vienna | 0.2 | 100.0 |
| Direct Versicherungsvertriebs-GesmbH | *1) | 1020 Vienna | 100.0 | |
| Assistance Beteiligungs-GmbH | Full | 1010 Vienna | 0.2 | 52.0 |
| Real Versicherungs-Makler GmbH | *1) | 1220 Vienna | 100.0 | |
| Together Internet Services GmbH | *2) | 1030 Vienna | 24.0 | |
| FL-Vertriebs- und Service GmbH | *1) | 5020 Salzburg | 100.0 | |
| UNIQA HealthService – Services im Gesundheitswesen GmbH | *1) | 1029 Vienna | 100.0 | |
| UNIQA Real Estate Beteiligungsverwaltung GmbH | Full | 1029 Vienna | –0.2 | 100.0 |
| Privatklinik Grinzing GmbH | *1) | 1190 Vienna | 100.0 | |
| Wohnen mit Service Pflegedienstleistungs GmbH | *1) | 1029 Vienna | 100.0 | |
| Versicherungsagentur Wilhelm Steiner GmbH | *1) | 1029 Vienna | 51.0 | |
| CEE Hotel Development AG | *2) | 1010 Vienna | 50.0 | |
| CEE Hotel Management und Beteiligungs GmbH | *2) | 1010 Vienna | 50.0 | |
| RHU Beteiligungsverwaltung GmbH & Co OG | *2) | 1010 Vienna | 50.0 | |
| Group foreign service companies | ||||
| Syntegra Szolgaltato es Tanacsado KFT | Full | Hungary, Budapest | 0.3 | 60.0 |
| Insdata spol s.r.o. | *1) | Slowakei, Nitra | 100.0 | |
| Racio s.r.o. | *1) | Czech Republic, Prague | 100.0 | |
| UNIQA partner, s.r.o | Full | Slovakia, Bratislava | 0.0 | 100.0 |
| UNIQA Pro | *1) | Czech Republic, Prague | 100.0 | |
| UNIQA InsService s.r.o. | Full | Slovakia, Bratislava | 0.2 | 100.0 |
| UNIQA Penztarszolgaltato Kft | Full | Hungary, Budapest | 5.4 | 100.0 |
| Heller Saldo 2000 Penztarszolgaltato Kft | Full | Hungary, Budapest | 0.6 | 83.6 |
| Dekra Expert Muszaki Szakertöi Kft | Full | Hungary, Budapest | 0.9 | 74.9 |
| UNIQA Vagyonkezelö Zrt | Full | Hungary, Budapest | 5.4 | 100.0 |
| UNIQA Szolgaltato Kft | Full | Hungary, Budapest | 7.6 | 100.0 |
| Profit-Pro Kft. | *1) | Hungary, Budapest | 100.0 | |
| RC Risk Concept Vaduz | *1) | Liechtenstein, Vaduz | 100.0 | |
| Elsö Közszolgalati Penzügyi Tanacsado Kft | *1) | Hungary, Budapest | 92.4 | |
| Millennium Oktatási és Tréning Kft | Full | Hungary, Budapest | 0.1 | 100.0 |
| verscon GmbH Versicherungs- und Finanzmakler | *1) | Germany, Mannheim | 100.0 | |
| IMD Gesellschaft für Informatik und Datenverarbeitung GmbH | *1) | Germany, Mannheim | 100.0 | |
| UMV Gesellschaft für Unterstützungskassen-Management und Vorsorge GmbH | *1) | Germany, Mannheim | 100.0 | |
| Mannheimer Service und Vermögensverwaltungs GmbH | *1) | Germany, Mannheim | 100.0 | |
| Carl C. Peiner GmbH | *1) | Germany, Hamburg | 100.0 | |
| Wehring & Wolfes GmbH | *1) | Germany, Hamburg | 100.0 | |
| Falk GmbH | *1) | Germany, Hamburg | 100.0 | |
| Company | Type | Location | Equity in € million1) |
Share in equity in %2) |
|---|---|---|---|---|
| Group foreign service companies | ||||
| Hans L. Grauerholz GmbH | *1) | Germany, Hamburg | 100.0 | |
| GSM Gesellschaft für Service Management mbH | *1) | Germany, Hamburg | 100.0 | |
| FL Servicegesellschaft m.b.H. | *1) | Germany, Munich | 100.0 | |
| Skola Hotelnictivi A Gastronom | *1) | Czech Republic, Prague | 100.0 | |
| ITM Praha s.r.o. | *2) | Czech Republic, Prague | 29.1 | |
| ML Sicherheitszentrale GmbH | *2) | Germany, Mannheim | 30.0 | |
| Mannheimer ALLFINANZ Versicherungsvermittlung AG | *1) | Germany, Mannheim | 100.0 | |
| UFL UNIQA Finance Life Service GmbH | *1) | Germany, Mannheim | 100.0 | |
| Financni poradci s.r.o. | *1) | Czech Republic, Prague | 75.0 | |
| Claris Previdenza | *1) | Italy, Milan | 100.0 | |
| UNIQA Software Service d.o.o. | *1) | Croatia, Zagreb | 100.0 | |
| Vitosha Auto OOD | Full | Bulgaria, Sofia | 0.0 | 100.0 |
| Syntegra S.R.L. | *1) | Romania, Klausenburg | 100.0 | |
| Agenta-Consulting Kft. | *1) | Hungary, Budapest | 100.0 | |
| UNIQA Software Service-Polska Sp.z o.o | *1) | Poland, Lodz | 100.0 | |
| AGENTA consulting s.r.o. | *1) | Czech Republic, Prague | 100.0 | |
| AGENTA Consulting Sp z oo w organizacji | *1) | Poland, Lodz | 100.0 | |
| UNIQA Software Service Bulgaria OOD | *1) | Bulgaria, Plovdiv | 99.0 | |
| UNIQA Software Service Ukraine GmbH | *1) | Ukraine, Kiev | 99.0 | |
| Financial and strategic domestic shareholdings | ||||
| Medial Beteiligungs-Gesellschaft m.b.H. | Equity | 1010 Vienna | 11.2 | 29.6 |
| Medicur-Holding Gesellschaft m.b.H.**) | Equity | 1020 Vienna | –0.4 | 25.0 |
| ÖVK Holding GmbH | Equity | 1030 Vienna | 4.8 | 25.0 |
| PKB Privatkliniken Beteiligungs-GmbH**) | Equity | 1010 Vienna | 18.6 | 50.0 |
| STRABAG SE**) | Equity | 9500 Villach | 2,790.3 | 12.5 |
| Humanomed Krankenhaus Management Gesellschaft m.b.H. | Equity | 1040 Vienna | 0.4 | 44.0 |
| Privatklinik Villach Gesellschaft m.b.H. & Co. KG | *2) | 9020 Klagenfurt | 34.9 | |
| ÖPAG Pensionskassen Aktiengesellschaft | Equity | 1203 Vienna | 27.5 | 40.1 |
| call us Assistance International GmbH | Equity | 1090 Vienna | 0.5 | 61.0 |
| EBV Leasing Gesellschaft m.b.H. | Equity | 1061 Vienna | 0.2 | 50.0 |
| UNIQA Leasing GmbH | Full | 1061 Vienna | 0.2 | 100.0 |
| UNIQA Human Resources-Service GmbH | Full | 1020 Vienna | 0.3 | 100.0 |
| UNIQA Beteiligungs-Holding GmbH | Full | 1029 Vienna | 165.2 | 100.0 |
| UNIQA Erwerb von Beteiligungen Gesellschaft m.b.H. | Full | 1029 Vienna | 10.9 | 100.0 |
| Austria Hotels Betriebs-GmbH3) | Full | 1010 Vienna | 8.3 | 100.0 |
| Wiener Kongresszentrum Hofburg Betriebsgesellschaft m.b.H. | *2) | 1010 Vienna | 24.5 | |
| JALPAK International (Austria) Ges.m.b.H. | *2) | 1010 Vienna | 25.0 | |
| Allrisk-SCS-Versicherungsdienst Gesellschaft m.b.H. | Equity | 2334 Vösendorf-Süd | 0.0 | 37.5 |
| Real-estate companies | ||||
| Fundus Praha s.r.o. | Full | Czech Republic, Prague | 2.9 | 100.0 |
| UNIQA Reality s.r.o. | Full | Czech Republic, Prague | 1.3 | 100.0 |
| UNIQA Real s.r.o. | Full | Slovakia, Bratislava | 1.0 | 100.0 |
| UNIQA Real II s.r.o. | Full | Slovakia, Bratislava | 1.0 | 100.0 |
| Steigengraben-Gut Gesellschaft m.b.H. | *1) | 1020 Vienna | 100.0 | |
| Raiffeisen evolution project development GmbH | Equity | 1030 Vienna | 111.1 | 20.0 |
| DIANA-BAD Errichtungs- und Betriebs GmbH | Equity | 1020 Vienna | 1.0 | 33.0 |
| UNIQA Real Estate AG | Full | 1029 Vienna | 149.0 | 100.0 |
| "Hoher Markt 4" Besitzgesellschaft m.b.H. | Full | 1020 Vienna | 8.6 | 100.0 |
| UNIQA Praterstraße Projekterrichtungs GmbH | Full | 1029 Vienna | 18.0 | 100.0 |
| Aspernbrückengasse Errichtungs- und Betriebs GmbH | Full | 1029 Vienna | 5.8 | 99.0 |
| UNIQA Real Estate Inlandsholding GmbH | Full | 1029 Vienna | 0.0 | 100.0 |
| UNIQA Real Estate Dritte Beteiligungsverwaltung GmbH | Full | 1029 Vienna | 1.0 | 100.0 |
| UNIQA Real Estate Vierte Beteiligungsverwaltung GmbH | Full | 1029 Vienna | 0.0 | 100.0 |
| "Hotel am Bahnhof" Errichtungs GmbH & Co KG | Full | 1020 Vienna | 4.4 | 100.0 |
| UNIQA Plaza Irohadaz es Ingatlankezelö Kft | Full | Hungary, Budapest | 5.8 | 100.0 |
| MV Augustaanlage GmbH & Co. KG | Full | Germany, Mannheim | 16.1 | 100.0 |
| MV Augustaanlage Verwaltungs-GmbH | Full | Germany, Mannheim | 0.0 | 100.0 |
| Company | Type | Location | Equity in € million1) |
Share in equity in %2) |
|---|---|---|---|---|
| Real-estate companies | ||||
| AUSTRIA Hotels Liegenschaftsbesitz AG3) | Full | 1010 Vienna | 33.6 | 99.5 |
| Passauerhof Betriebs-Ges.m.b.H.3) | Full | 1010 Vienna | 1.3 | 100.0 |
| Austria Österreichische Hotelbetriebs s.r.o.3) | Full | Czech Republic, Prague | 19.3 | 100.0 |
| Grupo Borona Advisors, S.L. Ad | *1) | Spain, Madrid | 74.6 | |
| MV Grundstücks GmbH & Co. Erste KG | Full | Germany, Mannheim | 4.0 | 100.0 |
| MV Grundstücks GmbH & Co. Zweite KG | Full | Germany, Mannheim | 6.3 | 100.0 |
| MV Grundstücks GmbH & Co. Dritte KG | Full | Germany, Mannheim | 5.1 | 100.0 |
| HKM Immobilien GmbH | *1) | Germany, Mannheim | 100.0 | |
| CROSS POINT, a.s. | Full | Slovakia, Bratislava | 4.9 | 100.0 |
| Aniger s.r.o. | Full | Czech Republic, Prague | 4.7 | 100.0 |
| Floreasca Tower SRL | Full | Romania, Bucharest | 0.7 | 100.0 |
| Pretium Ingatlan Kft. | Full | Hungary, Budapest | 5.1 | 100.0 |
| UNIQA poslovni centar Korzo d.o.o. | Full | Croatia, Rijeka | 0.5 | 100.0 |
| UNIQA-Invest Kft | Full | Hungary, Budapest | 8.6 | 100.0 |
| Knesebeckstraße 8–9 Grundstücksgesellschaft mbH | Full | Germany, Berlin | 0.1 | 100.0 |
| UNIQA Real Estate Bulgaria EOOD | Full | Bulgaria, Sofia | 0.0 | 100.0 |
| UNIQA Real Estate BH nekretnine, d.o.o | Full | Bosnia and Herzegovina, Sarajevo | 3.6 | 100.0 |
| UNIQA Real Estate d.o.o | *1) | Serbia, Belgrade | 100.0 | |
| Renaissance Plaza d.o.o. | *1) | Serbia, Belgrade | 100.0 | |
| IPM International Property Management Kft | Full | Hungary, Budapest | 1.5 | 100.0 |
| UNIQA Real Estate Polska Sp. z o.o. | Full | Poland, Warsaw | 0.0 | 100.0 |
| Black Sea Investment Capital | *1) | Ukraine, Kiev | 100.0 | |
| LEGIWATON INVESTMENTS LIMITED | *1) | Cyprus, Limassol | 100.0 | |
| UNIQA Real III, spol. s.r.o. | Full | Slovakia, Bratislava | 4.6 | 100.0 |
| UNIQA Real Estate d.o.o | Full | Slovenia, Laibach | 0.0 | 100.0 |
| UNIQA Real Estate BV | Full | Netherlands, Hoofddorp | 15.1 | 100.0 |
| UNIQA Real Estate Bulgaria Alpha EOOD | Full | Bulgaria, Sofia | 0.0 | 100.0 |
| UNIQA Real Estate P. Volfova | Full | Slowenien, Laibach | 0.0 | 100.0 |
| UNIQA Real Estate Ukraine | *1) | Ukraine, Kiev | 100.0 | |
| Reytarske | *1) | Ukraine, Kiev | 100.0 | |
| Austria Hotels Betriebs CZ | Full | Czech Republic, Prague | 6.6 | 100.0 |
| UNIQA Real Estate Alpha d.o.o. | *1) | Serbia, Belgrade | 100.0 | |
| UNIQA Real Estate Beta d.o.o. | *1) | Serbia, Belgrade | 100.0 |
*1) Unconsolidated company.
*2) Associated not "at equity" valued company.
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) 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.
Management Board
Konstantin Klien Chairman of the
Hannes Bogner Member of the Management Board
Andreas Brandstetter Member of the Management Board
Vienna, 7 April 2008
Karl Unger Member of the Management Board
Gottfried Wanitschek Member of the Management Board
We have audited the German version of the consolidated financial statements of UNIQA Versicherungen AG, Vienna, for the financial year from 1 January to 31 December 2007. These Group consolidated financial statements include the consolidated balance sheet as at 31 December 2007, the consolidated income statement, the Group cash flow statement and the statement of changes in Group equity for the financial year ending 31 December 2007, 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 (IFRS) 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. Our audit was conducted in accordance with the prevailing statutory provisions and the International Standards on Auditing (ISA) as published by the International Auditing and Assurance Standards Board (IAASB) of the International 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 an 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; the auditor does not, however, give an opinion on the effectiveness of the Group's internal control system. 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 comply with the statutory requirements and give as accurate a view as possible of the net assets and financial position of the Group as of 31 December 2007, as well as the Group's profit situation and cash flow for the financial year from 1 January to 31 December 2007, in accordance with the International Financial Reporting Standards (IFRS), as applicable in the EU.
Due to the prevailing statutory provisions in Austria, the Group management report is to 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 Group management report agrees with the consolidated financial statements.
Vienna, 8 April 2008
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Georg Weinberger ppa Alexander Knott
Chartered Accountant Chartered Accountant
During the past financial year, the Supervisory Board was regularly informed of the business development and the situation of the Group and the company by the Management Board. It also supervised the Management Board's conduct of business. In the Supervisory Board meetings held in 2007, the Management Board presented detailed quarterly reports and provided additional oral and written reports to the Supervisory Board. The Supervisory Board was given timely and comprehensive information about those measures requiring its approval.
The meetings focussed on the Group's earnings situation and its further strategic development. The Supervisory Board had five meetings in 2007. In the meeting on 22 March, the Supervisory Board mainly discussed the companies' 2006 results and the progress of expansion measures in Romania. The Supervisory Board also decided to expand the business operations of CALL DIRECT Versicherung AG. The meeting of the Supervisory Board on 25 April focussed on a discussion of the annual financial statements and the Group's consolidated financial statements as at 31 December 2006, as well as the report of the Management Board about the development of the Group in the 1st quarter of 2007. Changes were made to the Supervisory Board at the Annual General Meeting, calling for a reorganisation of the Supervisory Board which took place on 21 May. At the meeting on 18 September, the Supervisory Board mainly discussed the development of the company in the first half of 2007. Aside from reporting on the results of the Group in the first three quarters of 2007, and the approval of additional expansion measures in Albania and the Ukraine, the Supervisory Board discussed the business plan for 2008 at its meeting on 28 November.
To facilitate the work of the Supervisory Board and to improve its efficiency, additional committees were set up in addition to the mandatory Audit Committee. The Working Committee mainly talked about the development of the Group's earnings and the company's long-term strategy, and made various decisions. They had five meetings in 2007, and made three decisions by circulating them in writing. The Committee for Board Affairs met twice to deal with the legal employment formalities of the members of the Management Board. The Investment Committee had four meetings about the capital investment strategy and questions of the capital structure. In its meeting, the Audit Committee concentrated on all audit documents and the Management Board's proposed appropriation of profit, and reported to the Supervisory Board. The various chairmen of the committees informed the members of the Supervisory Board about the meetings and their committee's work.
The financial statements prepared by the Management Board and the management report of UNIQA Versicherungen AG, as well as the consolidated financial statements prepared according to the International Financial Reporting Standards (IFRS) and the Group management report for the year 2007, were audited by KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft and given an unqualified audit opinion. The Supervisory Board noted the results of the audit with approval.
The Supervisory Board consented to the consolidated financial statements and the financial statements of UNIQA Versicherungen AG, and agreed to the Group management report and the management report. The 2007 financial statements were thereby adopted in accordance with Section 125 of the Stock Corporation Law.
The proposed appropriation of profit submitted by the Management Board to the Supervisory Board was examined and approved by the Supervisory Board. On this basis, a dividend distribution of 50 cents per share will be proposed at the Annual General Meeting on 19 May 2008.
The Supervisory Board thanks the Management Board and all staff members for their commitment and the work they have done.
Vienna, April 2008
On behalf of the Supervisory Board
Christian Konrad
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, 7 April 2008
Konstantin Klien Chairman of the Management Board
Hannes Bogner Member of the Management Board
Andreas Brandstetter Member of the Management Board
Karl Unger Member of the Management Board
Gottfried Wanitschek Member of the Management Board
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) 1 211 75 3773 Fax: (+43) 1 211 75 793773 E-mail: [email protected]
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