Annual Report • Apr 29, 2011
Annual Report
Open in ViewerOpens in native device viewer
Annual Financial Report 2010 according to Section 82 paragraph 4 of the Austrian Stock Exchange Act UNIQA Versicherungen AG
Proposed appropriation of profit
Management Board
Notes to the Group Financial Statements
Statement by the Legal Representatives
After the most severe recession since 1945, the global economy showed signs of further recovery in 2010. Often supported by massive fiscal and monetary policy measures, economic activity picked up all over the globe. In the eurozone, overall momentum, partly overshadowed by the problem of escalating national debt, fell short of potential growth (growth with normal capacity utilisation), except in the second quarter. But the trend in the individual member states varied greatly. While Germany, Austria and Finland again experienced an upturn, Spain, Greece and Ireland persisted in a deep recession. Although economic growth in the eurozone economy may not have exceeded 1.7% in 2010, Austria again displayed higher momentum with expected growth of 2.0%. The USA continued to be confronted by high unemployment rates and the strained real estate market situation; however, it did finally pick up on speed.
The dependence on exports of the countries in Central and Eastern Europe (CEE) turned out to be a serious disadvantage during the crisis and partially resulted in significant declines in economic output, but it became an advantage in 2010. The CEE countries benefited from the significant increase in economic output, primarily in Germany, and the export sector now provided them significant growth stimuli. Accordingly, a large share of the current growth was derived from exports; however, domestic demand is again expected to provide increasing input in the months to come. The economies of Central Europe, especially Slovakia, Poland and the Czech Republic, displayed a particularly positive development in 2010. However, the countries of South Eastern Europe experienced a decline in GDP. The CEE countries in total recorded a GDP gain which is expected to reach about 3% for 2010.
After increasing its premium volume by 1.4% to €16.4 billion in 2009 despite the financial crisis, the Austrian insurance industry even saw somewhat greater momentum in 2010 with growth of 2.0% to €16.8 billion. The primary factor in this growth was the life insurance line which gained 1.9% in 2010 after relatively weak growth of 0.7% the year before. The focus was on single premium life insurance policies. With a gain of 2.9%, (2009: +3.6%), the health insurance lines continued to show solid, although somewhat reduced growth.
Property and casualty insurance also recorded strong growth in 2010. Overall, the premiums in this area rose by 1.9% and thus continued to exceed the growth rate of the previous year (2009: +1.8%). Motor vehicle liability insurance again experienced a significant decline which was, however, lower than in the previous year. In view of a continuing decline in average premiums, its revenue decreased by 1.8% (2009: +1.0%); however, this may have represented a bottoming out. Parallel to this, the premium development in motor vehicle comprehensive insurance was positive with a gain of 3.4% (2009: +3.9%). The other market segments of property and casualty insurance recorded a strong gain.
The international stock markets were restrained at the start of 2010 because of the consolidation caused by the failure of economic indicators from the USA and from Europe to live up to expectations. Not until the beginning of March did positive corporate data, significant growth in global demand and continued low interest rates trigger a short but significant recovery in the stock markets. Nonetheless, the stock markets were unable to benefit from the increasing momentum of the economic recovery in the second quarter. Concerns about the stability of the euro and the fear of payment difficulties, especially in Greece (but also in other countries of Europe's periphery), dampened sentiment. However, the rescue package instituted for the short term by the EU and IMF for highly indebted eurozone countries as well as efforts towards budget consolidation in most eurozone countries gradually had a calming effect on the markets.
After the turbulence of the first six months, the stock markets experienced relative calm in the third quarter. This easing was partly based on the fact that the recommendations of the Basel Committee on Banking Supervision for equity regulation in the context of Basel III turned out to be less strict and provided longer transition phases than were initially assumed. Another positive signal was the satisfactory performance of most European banks in the stress tests of the European banking regulatory agencies. In the fourth quarter, the stock markets again demonstrated robust performance against the backdrop of sustained low interest rates, good economic data and in part very good corporate data.
The interest rate decreases implemented as part of the economic recovery packages produced historically low interest rates worldwide again in 2010. Already in 2008, the USA had reduced its prime rate de facto to zero in order to secure refinancing of the banks. As in 2009, there was no change in this level in 2010. The same applies to the ECB's main refinancing rate which was lowered to 1.0% in 2009 and was not raised in 2010. Money market rates, which increased somewhat over the course of the year compared to the rate at year-end 2009, are still at a historically low level. For instance, the rate for the three-month EURIBOR at the end of 2010 was 1.03%. The one-month rate was 0.81% and continued to be clearly lower than the prime rate.
Bond yield performance in the reporting period was heavily dependent on the development of the debt crisis in the eurozone, which led to uncertainty again and again, and accordingly to volatility. Yields at year-end 2010 in both Europe and the USA continued to be below the figures for year-end 2009, which were already at historic lows after the slump of 2008. After some significant declines in the early months of the year, the trend was finally reversed to a certain degree, at least in the longer term segment, although at a lower level.
The exchange rate trend of the euro was also strongly influenced by the debt crisis in 2010. After having started the year at rates of €1.45 to the US dollar, the common currency rapidly declined to just under €1.20 per USD 1.00, this having been triggered by events in Greece. The slide did not stop until the EU and the IMF agreed on the rescue package for ailing euro countries. Between June and October the US dollar came under noticeable pressure due to the slowdown of the US economy with the result that the euro climbed back to €1.42 per USD 1.00 in early November before the debt crisis in the eurozone again became more critical. After Ireland was also forced to accept financial aid, concerns about a widening of the problems spread to Spain. As a result, the common currency declined again to €1.34 per USD 1.00 by year-end.
While the economic recovery which started in 2009 continued and became stronger in 2010, economic analysts expect momentum in the eurozone to let up somewhat in 2011. Specifically, growth in the eurozone, which was primarily supported by a surprisingly sound German economy in 2010, may slow to 1.4%–1.7% in the current year. In Austria as well, GDP growth is expected to soften slightly to 1.9% in 2011; the current forecast for Germany is 2.5%. According to the latest forecasts, the USA, where economic momentum finally picked up noticeably, may significantly outpace the euro region in 2011 with a gain of 3.0% to 3.6%. China will hold its place as the world's major economic mover with expected GDP growth of approximately 10%. Worldwide, economic output should grow by 4.2% in 2011.
A further improvement is expected in Central and Eastern Europe in 2011. The difference in the growth rates of the CEE and the established markets of Western Europe is also expected to continue to increase by approximately 2% per annum in the years to come. In the CEE countries as a whole, economic growth may accelerate somewhat again after an average gain of about 3% in 2011.
Consistent with the slight softening of the economy, somewhat weaker premium growth of 1.7% overall is currently forecast for the Austrian insurance industry in 2011. Health insurance is expected to continue growing by 2.8% while premiums in property and casualty may decline by 2.0%. The negative trend in life insurance will continue with an expected drop in premiums of 1.1%. Motor vehicle insurance should also have positive growth of 0.6% in 2011.
With €6,224 million in premiums written, including the savings portion of 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 €845 million is, in accordance with FAS 97 (US-GAAP), balanced out by the changes in the actuarial provision. Premium volume excluding the savings portion from the unit-linked and indexlinked life insurance amounts to €5,379 million.
The UNIQA Group offers its products and services through all distribution channels (salaried sales force, general agencies, 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 take best 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 Zürich 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 Centers as well as the Group's 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 integration of acquisitions into the Group.
Along with UNIQA Versicherung AG, the 2010 consolidated financial statements of the UNIQA Group include 48 domestic and 82 foreign companies. A total of 37 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, UNIQA included ten domestic companies as associates according to the equity accounting method. Fifteen associates were of minor importance, and shares held in these companies are recognised at market value.
The scope of the fully consolidated group was not significantly changed in 2010. Details on the consolidated and associated companies are contained in the corresponding overview in the Group notes (p. 74 f). The accounting and valuation methods are also described in the notes to the consolidated financial statements (p. 78 f).
Risk report
The comprehensive risk report of the UNIQA Group is in the notes to the consolidated financial statements 2010 (p. 82 f).
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 segments of "property and casualty insurance", "health insurance" and "life insurance".
The UNIQA Group provides life and health insurance and is active in almost all lines of property and casualty insurance. With over 16.5 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 over €6.2 billion (2009: €5.7 billion) and capital investments of more than €24.2 billion (2009: €22.6 billion), the UNIQA Group is one of the leading insurance groups in Central and Eastern Europe.
Taking into consideration the savings portion of the unit-linked and index-linked life insurance in the amount of €845 million (2009: €728 million), the total premium volume of the UNIQA Group increased in 2010 by a very pleasing 8.4% to €6,224 million (2009: €5,739 million), thus surpassing the €6 billion mark for the first time. The total consolidated premiums written even grew by 7.3% to €5,379 million (2009: €5,012 million). Developments were very positive in the area of insurance policies with recurring premium payments in particular, which grew 5.2% to € 5,141 million (2009: 4,885 million). The single premium business grew even more robustly in 2010 with a 26.8% gain to €1,084 million (2009: €855 million). The Group premiums earned including the savings portion of the unit-linked and index-linked life insurance (after reinsurance) in the amount of €823 million (2009: €704 million) rose by 9.0% to €5,964 million (2009: €5,474 million). The retained premiums earned (according to IFRS) increased by 7.8% to €5,141 million (2009: €4,770 million).
Incl. the savings portion of premiums from unit-linked and index-linked life insurance
In the 2010 financial year, 41.6% (2009: 42.6%) of the premium volume arose in property and casualty insurance, 15.6% (2009: 16.3%) in health insurance and 42.8% (2009: 41.1%) in life insurance.
In Austria, the premium volume written including the savings portion of unit-linked and index-linked life insurance increased in 2010 by 1.9% to €3,829 million (2009: €3,756 million). Recurring premiums grew by 3.3% to €3,447 million (2009: €3,338 million). In contrast, single premium revenue fell by 8.9% to €381 million (2009: €418 million). Including the savings portion of the unit-linked and index-linked life insurance, the premiums earned rose by 2.0% to €3,749 million (2009: €3,674 million). The retained premiums earned (according to IFRS) in Austria amounted to €3,100 million in 2010 (2009: €3,074 million).
In the regions of Eastern and South Eastern Europe (CEE & EEM), the premium developments in 2010 were entirely positive and promising. The premium volume written including the savings portion from the unit-linked and index-linked life insurance fell in 2010 by 12.2% to €1,294 million (2009: €1,153 million). This put the share of Group premiums coming from CEE & EEM at 20.8% (2009: 20.1%). Recurring premiums grew by 12.8% to €1,017 million (2009: €902 million). The single premium business grew by 10.4% in these regions to €277 million (2009: €251 million). Including the savings portion from the unit-linked and index-linked life insurance, the premiums earned decreased by 12.8% to €1,215 million (2009: €1,077 million). The retained premiums earned (according to IFRS) were €1,120 million (2009: €1,002 million).
In the Western European countries (WEM) the premium volume written including the savings portion from the unit-linked and index-linked life insurance in 2010 rose by 32.6% to € 1,101 million (2009: € 830 million) primarily due to strong growth in the Italian life insurance business. Recurring premiums grew by 4.8% to € 676 million (2009: € 645 million). The rise in single premiums increased at a significantly more robust rate by achieving growth of 129.6% to €425 million (2009: € 185 million). Overall, the share in Group premiums therefore rose in 2010 to 17.7% (2009: 14.5%). Including the savings portion from the unit-linked and indexlinked life insurance, the premiums earned decreased by 38.4% to € 1,001 million (2009: € 723 million). The retained premiums earned (according to IFRS) rose by 32.4% to €920 million (2009: € 695 million).
Burdened by an accumulation of major claims, flood events and the severe winter, the insurance benefits paid by the UNIQA Group (before reinsurance) increased in the 2010 financial year by 6.6% to reach €4,566 million (2009: € 4,284 million). In contrast, the consolidated retained insurance benefits rose somewhat more robustly by 9.9% to € 4,458 million in 2010 (2009: € 4,056 million).
While the insurance benefits retained were reduced in Austria in 2010 by 2.7% to € 2,749 million (2009: € 2,825 million), they rose in the Western European markets by 61.9% to €843 million (2009: € 521 million) primarily due to the strong growth in the Italian life insurance line. In the Central and Eastern European regions (CEE & EEM), they also increased by 21.9% to € 866 million (2009: € 710 million).
Retention
Total consolidated operating expenses (cf. notes to the Group financial statements, no. 37) less reinsurance commissions and profit shares from reinsurance business ceded (cf. notes to the Group financial statements, no. 33) increased in financial year 2010 by 7.4% to €1,346 million (2009: €1,252 million ). Acquisition expenses rose by 9.6% to €936 million (2009: €854 million). In contrast, other operating expenses less reinsurance commissions received increased only slightly by 2.9% to €410 million (2009: €398 million).
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 increased by 0.3 percentage points to 22.6% during the past year (2009: 22.9%). The cost ratio before reinsurance was 22.0% (2009: 22.1%).
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 again in 2010 by 7.1%, or € 1,605 million, to reach € 24,246 million (31 December 2009: € 22,641 million).
€ million
Due to the positive developments on the financial markets, the net investment income less financing costs increased by 17.3% to € 841 million (2009: €717 million). A detailed description of the investment income can be found in the Group notes (no. 34).
In the 2010 financial year, the profit on ordinary activities of the UNIQA Group (before consideration of the Hungarian special tax for the financial sector) increased massively primarily due to the improved investment results and rose by 52.8% to €153 million (2009: €100 million). With consideration of the Hungarian special tax, the profit on ordinary activities came to €146 million). Net profit grew by 70.8% in 2010 to €95 million (2009: €56 million). Group profit grew by 80.9% in 2010 to €46 million (2009: €26 mil-lion). The Management Board will nevertheless propose to the Supervisory Board and the Annual General Meeting a dividend distribution that remains unchanged from the previous year at 40 cents per share.
The UNIQA Group's total equity decreased slightly in 2010 by 1.8% to €1,536 million (31 December 2009: €1,565 million). This included shares in other companies amounting to €245 million (31 December 2009: €232 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 2010) – increased in the past financial year to 9.6% (2009: 6.7%). The total assets of the Group increased in the past financial year by €1,302 million and totalled €28,695 million on 31 December 2010 (31 December 2009: € 27,393 million).
The cash flow from operating activities in 2010 was €925 million (2009: €1,137 million). Cash flow from investing activities of the UNIQA Group amounted to €–1,125 million (2009: €–912 million). The financing cash flow was €–64 million (2009: €–42 million). A total of €57 million were spent on the dividends for the 2009 financial year. The amount of liquid funds changed in total by €–264 million (2009: €183 million). At the end of 2010, funds amounting to €533 million (2009: €798 million) were available.
The average number of employees in the UNIQA Group was reduced slightly in 2010 to 15,066 (2009: 15,107). Of these, 6,148 (2009: 6,345) were employed in sales and 8,918 (2009: 8,762) in administration. In the Eastern Emerging Markets (EEM), UNIQA employed a staff of 3,701 in the 2010 financial year (2009: 4,048), 3,541 people (2009: 3,246) in Central Eastern Europe (CEE) and 1.023 (2009: 987) in the Western European markets (WEM). In Austria, 6,801 staff were employed (2009: 6,826). Including the employees of the general agencies working exclusively for UNIQA, the total number of people working for the UNIQA Group amounts to just about 20,000.
52% of the administrative staff employed in Austria in 2010 were women, 19.3% (2009: 18.7%) of the employees were part-time. The average age in the past year remained 42 years (2009: 42 years). In total, 11.7% (2009: 11.3%) of the employees participated as managers in UNIQA's performance-related remuneration system – a variable payment system that is tied both to the success of the company and to personal performance. In addition, UNIQA offers young people in training the opportunity to get to know foreign cultures and make international contacts. Currently, 61 apprentices are being trained. 34 new apprentices were accepted in 2010.
In property and casualty insurance, the UNIQA Group was able to continue the positive developments of the previous year again in 2010, increasing the premiums written by 5.9% to €2,590 million (2009: €2,446 million). As in 2009, the premium volume in Austria rose at a significantly higher rate than the market average by 2.9% to €1,362 million (2009: €1,324 million). In the Central and Eastern European regions (CEE & EEM), the growth of the previous years continued. The premiums written grew by 12.5% to €821 million (2009: €730 million), thereby contributing 31.7% (2009: 29.9%) to the Group premiums in property and casualty insurance. The premium volume in the Western European markets also increased in 2010: The premium volume written increased by 3.7% to €406 million (2009: €392 million). Overall, the international share of Group premiums in property and casualty insurance amounted to 47.4% (2009: 45.9%).
Premium volume written in property and casualty insurance € million
Details on premium volume written in the most important risk classes can be found in the Group notes (no. 31).
The retained premiums earned (according to IFRS) in casualty and property insurance totalled €2,433 million in the reporting year (2009: €2,290 million) after growth of 6.3%.
| Property and casualty insurance | 2010 € million |
2009 € million |
2008 € million |
2007 € million |
2006 € million |
|---|---|---|---|---|---|
| Premiums written | 2,590 | 2,446 | 2,382 | 2,179 | 2,019 |
| Share CEE & EEM | 31.7% | 29.9% | 29.5% | 24.2% | 21.1% |
| Share WEM | 15.7% | 16.0% | 17.0% | 18.5% | 18.6% |
| International share | 47.4% | 45.9% | 46.5% | 42.7% | 39.7% |
| Premiums earned (net) | 2,433 | 2,290 | 2,214 | 1,858 | 1,716 |
| Net investment income | 74 | 97 | 42 | 258 | 141 |
| Insurance benefits (net) | –1,741 | –1,552 | –1,412 | –1,251 | –1,130 |
| Net loss ratio (after reinsurance) | 71.5% | 67.8% | 63.8% | 67.3% | 65.9% |
| Gross loss ratio (before reinsurance) | 69.2% | 69.7% | 62.4% | 68.1% | 63.9% |
| Other operating expenses less reinsurance commissions |
–820 | –789 | –740 | –606 | –569 |
| Cost ratio (net after reinsurance) | 33.7% | 34.4% | 33.4% | 32.6% | 33.2% |
| Net combined ratio (after reinsurance) | 105.3% | 102.2% | 97.2% | 99.9% | 99.0% |
| Gross combined ratio (before reinsurance) |
101.7% | 102.6% | 94.4% | 99.0% | 95.4% |
| Profit on ordinary activities | –43 | 8 | 113 | 238 | 129 |
| Net profit | –46 | –10 | 104 | 193 | 104 |
Burdened by an accumulation of major claims primarily in Germany, Italy, Hungary and Poland, by flood claims in Poland, Hungary, Slovakia and the Czech Republic and claims caused by the severe winter in Poland and the Czech Republic (gross burden of approximately €114 million; approximately €103 million after reinsurance), total retained insurance benefits increased in 2010 by 12.1% to €1,741 million (2009: €1,552 million). In Austria on the other hand, insurance benefits decreased by 6.5% to €905 million (2009: €968 million); in the Western European markets they increased by 70.6% to € 277 million (2009: €162 million). In the Central and Eastern European regions (CEE & EEM), the insurance benefits rose by 32.3% to €559 million (2009: €422 million).
As a result of this development, the net loss ratio (retained insurance benefits relative to premiums earned) rose by 3.7 percentage points to 71.5% (2009: 67.8%). The gross loss ratio (before reinsurance) at year-end 2010 was 69.2% (2009: 69.7%) and thus improved by half a percentage point. In contrast, the net loss ratio in Austria fell to 67.6% in 2010 (2009: 74.3%) due to the good loss trend.
Total operating expenses in property and casualty insurance less reinsurance commissions and profit shares from reinsurance business ceded rose by 4.0% to € 820 million (2009: €789 million). In the process, acquisition costs rose in line with premium income by 4.6% to €543 million (2009: €519 million), while other operating expenses increased only moderately by 2.9% to €278 million (2009: € 270 million).
The cost ratio in property and casualty insurance fell in the past financial year to 33.7% (2009: 34.4%) as a result of this development. The net combined ratio increased due to the rise in the loss ratio and was at 105.3% in 2010 (2009: 102.2%). Without taking into consideration the aforementioned extraordinary burdens, the net loss cost ratio was 101.0%. The combined ratio before reinsurance improved to 101.7% (2009: 102.6%) or 97.2% without considering the special effects.
Net investment income less financing costs rose in the past year by 23.9% to €74 million (2009: €97 million). In contrast, the capital investments in property and casualty insurance increased slightly by 0.4% to €3,200 million (2009: €3,189 million).
Burdened by an accumulation of major claims – primarily in Germany, Italy, Hungary and Poland – and claims due to floods and the severe winter in Eastern Europe, the profit on ordinary activities was negative in 2010 and amounted to €–43 million (2009: €8 million). Net profit declined to €–46 million (2009: €–10 million).
In comparison to the previous year, premiums written in health insurance increased by 3.5% to €970 million (2009: €937 million). In Austria, where UNIQA was once again the clear market leader in health insurance in 2010, premium volume was up by 2.3% from €791 million (2009: € 773 million). In the WEM region, the premiums written increased by as much as 8.3% to € 162 million (2009: € 150 million). In the countries of Eastern and South Eastern Europe, the premiums in health insurance grew by 16.4% to reach €17 million (2009: € 14 million). Overall, the international share in the total health insurance premiums in 2010 was 18.4% (2009: 17.5%).
Premium volume written in health insurance
In 2010, the retained premiums earned in health insurance (according to IFRS) rose by 3.5% to reach €966 million at the end of the year (2009: €934 million).
| Health insurance | 2010 € million |
2009 € million |
2008 € million |
2007 € million |
2006 € million |
|---|---|---|---|---|---|
| Premiums written | 970 | 937 | 907 | 871 | 852 |
| International share | 18.4% | 17.5% | 17.6% | 16.9% | 17.0% |
| Premiums earned (net) | 966 | 934 | 906 | 869 | 849 |
| Net investment income | 127 | 94 | 14 | 134 | 114 |
| Insurance benefits (net) | –839 | –812 | –783 | –776 | –772 |
| Other operating expenses less reinsurance commissions |
–141 | –126 | –133 | –128 | –135 |
| Cost ratio (net after reinsurance) | 14.6% | 13.5% | 14.7% | 14.7% | 15.9% |
| Profit on ordinary activities | 112 | 88 | 3 | 96 | 54 |
| Net profit | 83 | 67 | –1 | 72 | 35 |
The retained insurance benefits increased in 2010 by 3.4% to €839 million (2009: €812 million). The loss ratio after reinsurance thus remained stable compared to the previous year at 86.9% (2009: 86.9%). In Austria, insurance benefits grew by 2.3% to €682 million (2009: €667 million). The insurance benefits in the international markets increased by 8.5% in 2010, totalling €157 million (2009: €145 million).
Total operating expenses in health insurance less reinsurance commissions and profit shares from reinsurance business ceded rose in 2010 in by 12.3% to €141 million (2009: € 126 million). Acquisition expenses increased by 13.0% to €89 million (2009: €79 million). Other operating expenses increased by 11.1% to € 52 million (2009: € 47 million). As a result of this development, the cost ratio in health insurance increased to 14.6% (2009: 13.5%).
Net investment income less financing costs rose in 2010 by 34.7% to €127 million (2009: €94 million). In the health insurance segment, capital investments grew by 9.2% to €2,648 million (2009: €2,424 million).
Profit on ordinary activities in health insurance could be increased again in the reporting year by 26.7% to €112 million (2009: €88 million). Net profit for 2010 was up by 22.4% to €83 million (2009: €67 million).
The life insurance premium volume written, including the savings portion of unit-linked and index-linked life insurance, increased drastically in 2010, up by a total of 13.1% to €2,664 million (2009: €2,356 million). Revenues from policies with recurring premium payments rose by 5.3% to €1,580 million (2009: €1,501 million). In the single premium business premiums rose even considerably more, by 26.8% to €1,084 million (2009: €855 million). In the classic single premium business, premiums increased by 31.3% to €647 million (2009: €493 million), while single premium policies in the area of unit-linked life insurance climbed by 20.8% to €437 million (2009: €362 million).
Incl. the savings portion of premiums from unit-linked and index-linked life insurance
The premium developments in Austria were very satisfactory in 2010, above all in the area of products with recurring premium payments. Revenues from policies with recurring premium payments rose by 4.3% to € 1,294 million (2009: €1,240 million). On the other hand, single premium business declined slightly due to a reduction in classic single premiums by 8.9% to €381 million (2009: €418 million). All told, premium volume in Austria in life insurance thus increased by 1.0% to € 1,675 million (2009: €1,659 million).
The life insurance business of the Group companies in the Central and Eastern European regions (CEE & EEM) also rose considerably in 2010. The premium volume written including the savings portion from the unit-linked and index-linked life insurance went up by 11.7% to €456 million (2009: €408 million). This brought the share of life insurance from these countries to 17.1% in 2010 (2009: 17.3%). In Western European countries, on the other hand, premium volumes grew by 84.6% to €533 million (2009: €289 million) due to the booming life insurance business in Italy. Overall, the Western European region (WEM) thus contributed 20.0% (2009: 12.3%) 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 €132 million in 2010 (2009: €105 million). The savings portion of the unit-linked and index-linked life insurance lines amounted to € 845 million (2009: €728 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 €823 million (2009: €704 million), the premiums earned in life insurance declined by 14.0% to €2,564 million (2009: €2,250 million). The retained premiums earned (according to IFRS) increased in 2010 by 12.6% to €1,741 million (2009: € 1,546 million).
| Life insurance | 2010 | 2009 | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|
| € million | € million | € million | € million | € million | |
| Premiums written | 1,819 | 1,628 | 1,653 | 1,422 | 1,605 |
| Savings portion of premiums from unit-linked and index-linked life |
|||||
| insurance | 845 | 728 | 823 | 748 | 559 |
| Premiums written incl. savings portion of premiums from unit-linked and |
|||||
| index-linked life insurance | 2,664 | 2,356 | 2,476 | 2,170 | 2,164 |
| Share CEE & EEM | 17.1% | 17.3% | 23.0% | 13.1% | 9.7% |
| Share WEM | 20.0% | 12.3% | 14.2% | 16.6% | 22.0% |
| International share | 37.1% | 29.6% | 37.2% | 29.7% | 31.7% |
| Premiums earned (net) | 1,741 | 1,546 | 1,570 | 1,342 | 1,527 |
| Savings portion of premiums from unit-linked and index-linked life insurance (net after reinsurance) |
823 | 704 | 774 | 695 | 499 |
| Premiums earned (net) incl. the savings portion of premiums from unit-linked and index-linked life |
|||||
| insurance | 2,564 | 2,250 | 2,344 | 2,037 | 2,027 |
| Net investment income | 640 | 525 | 133 | 563 | 610 |
| Insurance benefits (net) | –1,878 | –1,692 | –1,328 | –1,534 | –1,780 |
| Other operating expenses less reinsurance commissions |
–384 | –338 | –363 | –321 | –261 |
| Cost ratio (net after reinsurance) | 15.0% | 15.0% | 15.5% | 15.7% | 12.9% |
| Profit on ordinary activities | 77 | 3 | –27 | 5 | 56 |
| Net profit | 59 | –1 | –37 | 4 | 37 |
The retained insurance benefits increased in the reporting period by 11.0% to €1,878 million (2009: €1,692 million). However, in Austria they were down by 2.4% to €1,162 million (2009: €1,191 million). In the Western European region (WEM), insurance benefits grew due to the strong growth in life insurance in Italy by 89.5% to €418 million (2009: €221 million), while they only rose moderately in Central and Eastern Europe (CEE & EEM) by 6.1% to €298 million (2009: €281 million).
Total operating expenses in life insurance less reinsurance commissions and profit shares from reinsurance business ceded rose in 2010 by 13.6% to € 384 million (2009: €338 million). Acquisition expenses rose by 18.5% to €304 million (2009: €257 million). In contrast, other operating expenses fell by 1.7% to €80 million (2009: €81 million). As a result of this development, the cost ratio in life insurance, i.e. the relation of all operating expenses to the Group premiums earned, including the savings portion from the unit-linked and index-linked life insurance (after reinsurance), remained stable at 15.0% (2009: 15.0%).
Net investment income less financing costs rose in the reporting year by 21.8% to €640 million (2009: €525 million). The capital investments including the investments for unit-linked and index-linked life insurance grew in 2010 by 8.0% to €18,397 million (2009: €17,028 million).
The profit on ordinary activities in life insurance increased in 2010, rising by €74 million to € 77 million (2009: € 3 million). Net profit increased to €59 million (2009: € –1 million).
The international premium volume of the UNIQA Group, including the savings portion of unit-linked and index-linked life insurance, increased drastically in 2010, following the drop in the year before and rose by a total of 20.8% to €2,395 million (2009: €1,983 million). This brought the international share of Group premiums up to 38.5% (2009: 34.6%).
Including the savings portion from the unit-linked and index-linked life insurance (after reinsurance), the premiums earned grew by 23.1% to €2,215 million (2009: €1,800 million). The retained premiums earned (according to IFRS) rose by 20.3% to €2,041 million (2009: €1,697 million ).
In 2010 the countries of Eastern and South Eastern Europe found their way back to a strong growth momentum. Overall, the premium volume written rose by 12.2% to €1,294 million (2009: €1,153 million). Insurance benefits increased in the countries of the CEE region by 10.3% to €1,005 million (2009: €912 million), for the first time passing the €1 billion mark. In the Eastern Emerging Markets, the premium volume even doubled from € 241 million to €289 million (+19.6%). Overall, the CEE & EEM regions therefore contributed 20.8% (2009: 20.1%) to the Group premiums.
The premiums in the Western European markets recorded a particularly high increase in the past financial year due to the strong life insurance business in Italy. The premium volume written rose in 2010 by 32.6% to €1.101 million (2009: €830 million). The recurring premium business increased by 4.8% to €676 million (2009: €645 million). The single premium business more than doubled, growing 129.6% to € 425 million (2009: € 185 million). In 2010, the WEM region contributed 17.7% (2009: 14.5%) to the Group premiums.
The premium volume written including the savings portion of the unit-linked and index-linked life insurance was divided as follows among the various regions in the UNIQA Group:
| Premiums written1) | Share of Group premiums |
||||
|---|---|---|---|---|---|
| 2010 | 2009 | 2008 | 2007 | 2006 | 2010 |
| 1,005 | 912 | 1,115 | 735 | 595 | 16.2% |
| 289 | 241 | 164 | 81 | 45 | 4.6% |
| 1,101 | 830 | 907 | 905 | 993 | 17.7% |
| 2,395 | 1,983 | 2,186 | 1,721 | 1,633 | 38.5% |
| € million € million | € million € million € million |
1) Incl. the savings portion of premiums from unit-linked and index-linked life insurance.
Total insurance benefits in the international Group companies rose by 38.8% in 2010 to €1,709 million (2009: €1,231 million). Consolidated operating expenses less reinsurance commissions and profit shares from reinsurance business ceded rose in the past financial year by 11.2% to €572 million (2009: €514 million) . Before consolidation based on the geographic segments (cf. segment reports), the profit on ordinary activities generated by the companies in the three regions outside of Austria amounted to €–54 million (2009: €22 million) in 2010. This decline can be attributed in particular to lower results by the companies in Italy, Bulgaria, Romania and Hungary.
No events occurred after the balance sheet date that require reporting.
At the beginning of 2011, the trend of the premium volume of the UNIQA Group was satisfactory. Premium growth over the first two months was roughly 5.6% in property and casualty insurance and 4.0% in health insurance. Life insurance experienced a decrease in premiums of 5.2% arising from a phase shift in single premium business. The overall growth in January and February 2011 was 1.6%. Whereas premiums in Austria more or less remained at last year's level with a slight negative trend of –0.8%, premiums in international markets rose by 5.7%.
On the basis of numerous initiatives in product development, customer loyalty and efficiency improvement, UNIQA expects very solid developments in the area of property and casualty insurance once again in 2011.
The growth of the legal expenses insurance line also proved favourable in 2010. The relaxation of the financial crisis was reflected by fewer mass loss claims being reported in the area of financial management in comparison to 2009. The exclusion of a majority of these risks proved to be an effective countermeasure. The stabilisation that occurred in this area had a correspondingly positive effect on the technical results of the legal expense insurance, and the goal for 2011 is to continue profitable growth. In addition to the existing scoring models, expansion will be pursued based on new and detailed portfolio analyses that allow growth to be profitably controlled and premiums to be appropriately structured for risk coverage. Attention will also be directed to the introduction of new terms and conditions for legal protection (ARB 2011) that contain innovative, risk-tailored expansions of coverage in addition to legally necessary adaptations. With the lawyer's portal initiated by the UNIQA Group and introduced in 2010, a new means of communication between attorneys and legal expense insurance providers was established in the insurance market. The aim for 2011 is to further increase the usage of the portal and thereby enhance productivity. The goal of gradually increasing the assignment of claims to specialised lawyers is to raise the success rate and hence customer satisfaction in 2011 as well.
The past year which experienced comparatively few storms and natural disasters witnessed an amelioration of the loss ratio in the storm risk segment. In view of the anticipated increase in bad weather in addition to pending new equity capital guidelines, further steps are necessary, however. Related countermeasures such as tariff segmentation by region have already been introduced, and the Group will continue to follow the course charted back in 2008. We will also continue to expand the HORA system (Austrian Flood Risk Zoning System) in coming years in cooperation with the Insurance Association of Austria and the Ministry of Agriculture, Forestry, Environment and Water Management. The goal of this system is to create and refine a risk map that makes it possible to better assess possible natural dangers.
In the area of natural dangers as well as other risk areas, such as burglary, UNIQA relies on a variety of preventive measures to avoid losses. Examples of this can be found in the severe weather warnings offered by UNIQA as an exclusive service within the insurance industry as well as security checks for corporate customers and the pilot project "NummerSicher" for household and homeowner customers and bicycle theft. The severe weather warnings offered by UNIQA since 2004 in Austria have already been successfully implemented in Poland, Romania, the Czech Republic, Hungary, Serbia, Montenegro and Croatia and should be introduced in additional countries in 2011.
The strategy of reducing complexity and increasing efficiency, especially by offering standardised, customer-oriented products, should yield further profits. After launching the new private customer product in 2009, a new corporate customer project will be introduced in autumn 2011. Like the private customer product, a range of customer needs will be addressed by the different package versions. This will yield a clear, up-to-date product line which enables quick and efficient processing. Increased productivity in sales, efficiency gains and process streamlining then result.
Further refinements in the private customer business will be seen in 2011 as well. For instance, additional security features are being integrated into the new private customer product introduced to the market in 2009. The goal of these new models is an individual and riskappropriate premium definition, in which the Group will naturally continue to pursue the goal of climate protection in accordance with the course already set jointly by Raiffeisen Versicherung and UNIQA. The features already included in the current product will be carried over and further expanded.
The market environment for motor vehicle insurance in Austria will remain difficult in 2011. The competition is traditionally sharp, and customers are confronted with offers at numerous contact points such as exclusive intermediaries, brokers, banks, automobile dealers or leasing companies.
UNIQA is reacting by continuing to focus on outstanding, unique products such as driver protection and especially SafeLine, the first automotive insurance that can save lives. The significant success of SafeLine in 2010 leads the company to expect an even more dynamic growth in the future. With its safety features, SafeLine helps establish unique customer loyalty in the motor vehicle insurance market. Over 400 emergencies have been positively resolved, and the CarFinder function has enabled lost vehicles to be immediately found in more than 40 cases. Linking GPS technology and crash sensors to automotive insurance is a Europe-wide trend of the future, and UNIQA as one of the forerunners serves as an example for other countries.
UNIQA is also unique in the Austrian market with its driver protection product. Even if the driver is at fault, this singular type of coverage provides an insured sum of up to €1 million for lost salary, treatment costs, living expenses and more. An increase of up to 20,000 policies is anticipated for this product.
Favouring electric vehicles is the logical continuation of UNIQA's commitment to climate protection. Since 2010, UNIQA has offered insurance for electric vehicles that do not require registration such as electric bicycles, mountain bikes, Segways and bikeboards. In 2011, the VCÖ anticipates a further increase in sales of these vehicles from 30,000 to 40,000.
Simultaneously, smartphones continue to enjoy great popularity. Linking the two is a logical step. Customers of UNIQA will therefore be able to obtain liability insurance and comprehensive insurance for these electric vehicles easily and without red tape by using their smartphone starting in 2011. This sends another strong signal about customer contact and simplifies the dialogue between customers and UNIQA similar to the introduction of the first vehicle damage claim reporting by smartphone in the Austrian market in the first half of 2010.
Furthermore, UNIQA rewards customers by offering premium advantages to those who combine the use of public transportation with the use of their individual automobile. UNIQA SafeLine is also a leader among motor vehicle insurance policies in the area of climate protection with its flexible environmental bonus for people who do little driving.
All of these new developments have also been tailored to affiliates in the Group. For example, driver protection has already been introduced in Raiffeisen Versicherung and SafeLine is being used in Hungary. The smartphone application for reporting damage claims has already been launched in several countries.
In the area of business interruption insurance for freelancers, the premium package introduced in 2010 will be furthered by salespromoting activities. The highlight of this package is a termination protection which is presently only offered by a few insurance companies. For a higher premium, UNIQA will abandon the right to termination after a claim for the entire term of the policy. This addresses the security needs of the customers even better than before. Premium reimbursement in the absence of claims is automatically included.
In the second half of 2011, a shared application is planned for freelancer business interruption insurance and occupational disability insurance. If freelancer business interruption insurance no longer applies, for example if a business closes due to illness, occupational disability insurance will commence. These two products provide freelancers and small business owners with adequate risk coverage. Furthermore, UNIQA grants a premium advantage of 5% for freelancer business interruption insurance.
The new accident tariff structure introduced in the second half of 2010 at UNIQA will also be employed to achieve the targeted goals in 2011. Starting from the second quarter of 2011, an entrylevel accident insurance product will be offered – hospital reimbursements for individuals with a flat fee for broken bones – a simple alternative to the primary product, "Unfall & Umsorgt".
Since many customers are involved in internationalisation and are tapping new markets, UNIQA will continue to enhance support of these customers. In addition to the related network of foreign companies, UNIQA also has the expertise and resources to offer international programmes to customers and satisfy the sophisticated demands of this strongly growing market segment.
As a response to the Environmental Liability Act passed to fulfil an EU directive, UNIQA has integrated environmental cleanup costs insurance in its liability insurance products. Since this is a Europewide issue, international experience and expertise will be exchanged with the international companies of the Group in 2011.
In years past, UNIQA was closely and successfully involved in an effort to prevent the spread of Legionella in the hotel and healthcare industries. In 2011, a cooperative effort with leading companies of this sector is planned to create systems for sanitising and preventing the spread of germs in water supply systems. In addition to the guaranteed freedom from Legionella, the advantage to UNIQA customers is the particularly attractive price for purchasing and installing the system.
Furthermore, an insurance solution and related safety strategy are presently being developed with a company that specialises in the risk management of major events. The result will be a risk management approach tailored to customers which will also include insurance coverage for the remaining risk associated with large events.
In industrial property insurance, UNIQA continues to find itself in a very competitive market, while the area of general liability insurance for larger risks is already showing the first signs of tightening terms.
In recent years, UNIQA has made a name for itself in the continental European insurance market through innovative products tailored to the requirements of a wide range of art collections and cultural institutions. This has yielded increasing demand especially in the central London market. UNIQA has risen to the challenge and will be opening an office in February 2011 in London which will be run by an international art expert who will develop relationships with international brokers and customers.
The responsibility of the new office will be to develop special insurance concepts for corporate and private collections for museums and international exhibitions, as well as galleries, dealers and auction houses. This outreach will be based on a foundation of years of international experience and the UNIQA team's extraordinary high level of expertise in the art world, as well as a special focus on flexible and innovative solutions.
At the same time, this new location not only places UNIQA closer to many customers, it will also enable UNIQA to continue the strategy it used to successfully expand its market position in central Europe on an international level.
Fortunately, the expectation expressed in these pages last year that the economic environment would become more difficult with increasing unemployment did not materialise over the past year. However, the optimistic forecast of continued demand for health insurance as well as a stable customer base did: New business rose slightly in 2010, whereas the contract cancellation dropped to an absolute low. It is apparent that customers are aware more than ever of the advantages of private health insurance in times of public discussion of the financeability of the health-care system.
A lively public discussion about "two-tier healthcare" has been instigated by an advertising campaign launched by an insurance company which is new to the market. UNIQA's position is clear: Private health insurance builds on a foundation of statutory health insurance and supplements it. A functioning first pillar is therefore a prerequisite. The second pillar offers the customer an additional freedom of choice, self-determination and comfort which, however, must never be to the disadvantage of the remaining population. In fact, the opposite is true: Every privately insured party supports the overall system with his or her own payments, be it the financing of physicians in public hospitals or as a patient in a private hospital by bearing the majority of the associated costs.
Keeping the customer's payments – i.e. the premiums – within a manageable range was a core task of private health insurers under the leadership of UNIQA in 2010 and will remain so in 2011. These negotiations with hospitals and physicians have proved to be particularly intense and tenacious this time. Of course, the successful negotiations of years past make it increasingly difficult to rescind contracts that are unattractive from the vantage point of the contractual partners. Accordingly, some of the demands submitted this year lay substantially above the rate of inflation. Nevertheless in many areas, realistic agreements were reached, and some are still being negotiated. Nonetheless, cautious optimism is appropriate that acceptable agreements will be made in these instances as well, and that customers throughout Austria will continue to be offered direct and guaranteed settlement of all treatment costs.
In sum, UNIQA also anticipates that the trend in health insurance in 2011 will be solid and stable. The entrance into the market of a new competitor (Donau Versicherung) will need to be factored in, and increased marketing and sales activities of familiar market players have also been noted. It can therefore be assumed that competition will become harder. But UNIQA will continue to successfully assert its market leadership and set the standard for the market with innovative products and services: For example, the introduction of the Select PLUS product line planned for the spring of 2011 will continue to promote the concept of prevention with attractive incentives. The process of signing up for policies will be professionalised through the teleunderwriting project with UNIQA's medical call centre as well as simplified and accelerated. The scheduled launch of Mobile Health Care, a futuristic looking truck designed by Luigi Colani, at the end of last year will substantially expand the corporate healthcare management services offered to corporate customers. At the same time, UNIQA will expand awareness of health insurance in a special advertising campaign in the spring of 2011.
The outlook for foreign markets is also positive. In Germany, the political environment for private health insurance continues to develop positively, as expected. A solid foundation for continued respectable development also exists for Mannheimer Krankenversicherung. The Geneva-based Group company, a specialist in health insurance for international organisations, will be able to continue its favourable growth this year as well. Apart from the highly possible conclusion of new large policies, the number of insured under existing policies can be significantly expanded.
In neighbouring eastern countries, health insurance will continue to grow strongly, of course starting from a relatively low level, although some of the effects of the economic and financial crisis can still be felt. The new Mobile Health Care truck will be put to use in these countries as well to provide attention-getting support of UNIQA's growth strategy. In Slovenia, health insurance will be marketed for the first time independently – from Carinthia – by the partner Raiffeisen.
The UNIQA Group offers a comprehensive range of classic indexlinked and unit-linked life insurance products. As part of the independent sales, the unit-linked life insurance products are also being offered in Germany and Slovenia in their respective, country-specific versions.
In Austria, UNIQA was able to further strengthen its leadership in the area of unit-linked and index-linked life insurance in 2010. Partly responsible for this was UNIQA's flagship "FlexSolution" and "My flexible life insurance" offered by Raiffeisen Versicherung, as well as the continuously successful index-linked life insurance including "Inflationsschutz & RZB Kapitalinvest" (hedge against inflation & RZB capital investment). The provision solutions available so far in these categories have enjoyed a positive reception among the customers, reaffirming UNIQA's strategy of offering customers products that they can indi-vidually adapt to their current life circumstances. In 2011, this individualisation will be expanded in FlexSolution to clearly and attractively present customers with the numerous options.
Government-subsidised future pension provisions will also be reorganised in 2011. The proven expansions of guaranteed capital, guaranteed lifelong pension and other well-received product features will continue unchanged. In addition, two new tariffs were developed for 2011 in which the first guarantee date begins after 10 or 15 years as opposed to upon the expiration of the policy. Investment will follow a new CPPI model with a volatility target strategy in which the costs of the investment and guarantee can be kept low while the investment can be pursued aggressively even in turbulent capital markets. The successful cooperation with Austria's largest investment company is being continued in its proven form.
Despite the difficult environment arising from the low rate of interest, innovative solutions are being pursued in index-linked life insurance in 2011 as well. The new regulations pertaining to single premiums (4% insurance tax starting at a minimum term of 15 years) that took effect on 1 January 2011 did not pose any hindrance; since the beginning of January 2011, the first single premium tranche of FINANCE LIFE has been available which factors in the new criteria. The topic of security has gained new importance to customers, especially in recent years. Against this background, both classic and capital investment oriented life insurance products are enjoying great popularity. The changes to the actuarial interest rate effective 1 April 2011 will also have consequences on product features. In light of this regulation, UNIQA is reviewing the rates of classic and capital investment based life insurance and will revise them as needed.
With classic life insurance, the primary focus will remain on burial cost insurance which was successfully launched over the last two years. In this sensitive area, a certain amount of awareness has been generated which will be continuously developed in 2011. Additional focus will remain on occupational disability pension for which additional marketing will be required despite a high level of awareness. The children's product will be redesigned in 2011.
Unanticipated events such as accidents or illness can pose serious challenges to personal financial security. The new bank insurance product, "My Raiffeisen Account protection" offered by Raiffeisen Versicherung, provides the security of covering a negative account balance of the insured party up to €5,000 quickly and without red tape in the event of death. This can relieve surviving dependents of at least one financial worry and burden in an emotionally difficult time. In addition, the product is also appropriate for retirement savings with attractive premiums.
In autumn 2010 a new tariff was set up offering payment protection insurance for loans which UNIQA will continue to promote in 2011. This offer also helps to ensure that customers and their surviving dependents do not encounter financial difficulties owing to unforeseen circumstances. The advantage of the new loan protection is the comprehensive hedging of debt in case of death, unemployment or inability to work. Multiple cases of unemployment and multiple cases of inability to work are also covered in order to meet the needs of the customers.
The intensified cooperation between UNIQA and the Raiffeisen bank group in establishing and expanding bank sales in Central and Eastern Europe will continue in 2011. The Preferred Partnership with Raiffeisen encompasses the markets of Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Croatia, Bosnia and Herzegovina, Serbia, Romania, Bulgaria, the Ukraine, Albania, Kosovo and Russia. The joint product portfolio continues to focus on tailor-made, combined banking and insurance packages as well as stand-alone products, in particular capital-forming life insurance products (endowment policies and unit-linked life insurance). Further aspects of cooperation include the successive expansion of the product portfolio and the gradual introduction of additional stand-alone products for casualty and health insurance in selected markets.
The renewed increase in financing volumes in the year 2010 has led to an increase in the scope of business, which was additionally supported by the introduction of new products. Special attention was paid here to selling stand-alone insurance products. Almost 18,000 new capitalforming life insurance policies with recurring premium payments in a total of nine markets could be concluded in this way. Around 60% of these policies are endowment insurance, with 40% unit-linked life insurance. The introduction of stand-alone products in additional markets is currently being prepared for 2011. Another focus lies on developing synergies by sharing the use of sales channels.
In addition, the cooperation with the Veneto Banca Group in Italy primarily in the area of single-premium life insurance has been a very positive stimulus for UNIQA and was put onto a long-term basis with the new cooperation agreement concluded at the end of 2009.
Outside of Europe, UNIQA founded in 2008 the life and health insurance company Takaful Al-Emarat based in Dubai and is currently developing it as a joint venture with the insurance company Al Buhaira. Takaful has offered life and health insurance for groups since 2009, and is planning individual tariffs for classic and unit-linked life insurance products starting in April 2011. The portfolio is made up exclusively of Takaful products and thus insurance products that conform with current Sharia rules and are also meeting with increased interest in Europe. Starting with Dubai and the United Arab Emirates, business activities will be expanded over the long term to include additional Gulf and Muslim states.
In the area of money laundering prevention, the precise random sampling check was optimised in 2010 based on an IT-supported, riskoriented monitoring system in Austria. The international Group standards could be implemented for the most part throughout the entire UNIQA Group by the end of 2010. The standards include internal regulations, pertinent training modules, transaction and customer monitoring as well as intensified auditing and reporting. As planned for 2010, the creation of risk profiles for all companies of the UNIQA Group was essentially completed. In Austria, the risk-oriented categorisation of the customer base and the increased use of joint IT solutions were also refined. Substantial improvements could be made in several IT systems, primarily for managing electronic applications.
International projects planned for 2011 include the transition from the implementation phase to making the UNIQA standard a matter of course, and also the continued expansion of IT support.
The economic environment continues to be defined by a number of significant uncertainties. Overcoming the government debt crisis in the eurozone and in the USA is viewed as the foremost challenge, as well as the further development of the so-called PIIGS nations. But the question of whether economic growth is sustainable for the future is also viewed as a critical success factor.
Under the prerequisite of anticipated normalisation of international profits and stable domestic profit development, we are assuming that 2011 will deliver further improvement in our operating profits. Underlying assumptions include significant reductions compared to 2010 in claims due to natural disasters, stable capital markets, and a positive economic environment.
The most important features of the internal controlling and risk management system with regard to the financial reporting process are described in the Group notes (risk report).
The individual accounts of UNIQA Versicherungen AG, prepared in accordance with the Austrian Commercial Code, report an annual net profit for the 2010 financial year of €57,617,245.61 (2009: € 57,257,946.36). The Management Board will propose to the Annual General Meeting on 30 May 2011 that this net profit be used for a dividend of 40 cents for each of the 142,985,217 dividend-entitled nopar shares issued as at the reporting date and the remaining amount carried forward onto new account.
Konstantin Klien Chairman of the Management Board Andreas Brandstetter Vice Chairman of the Management Board
Vienna, 6 April 2011
Hannes Bogner Member of the Management Board
Karl Unger Member of the Management Board
Gottfried Wanitschek Member of the Management Board
The UNIQA Group has committed itself since 2004 to compliance with the Austrian Code of Corporate Governance and publishes this compliance declaration both in the Group annual report and on the Group website under www.uniqagroup.com Î Investor Relations Î Corporate Governance. The Austrian Code of Corporate Governance is also publically available at www.corporate-governance.at.
Implementation and compliance with the individual rules of the code are annually evaluated by Univ.Prof.DDr. Waldemar Jud Corporate Governance Forschung CGF GmbH. Primarily on the basis of a questionnaire, this institution evaluates whether the company complies with the Austrian Code of Corporate Governance, as published by the Austrian Working Group for Corporate Governance. The report on the external evaluation in accordance with rule 62 of the Austrian Code of Corporate Governance can be found on the UNIQA Group website.
UNIQA declares its continued willingness to comply with the Austrian Code of Corporate Governance, as currently amended. In accordance with the code, the "L rules" (legal requirements) are all fully adhered to. However, UNIQA deviates from the provisions of the code in the version applicable for the reporting year with regard to the following "C rules" (comply or explain) and explains as follows:
UNIQA Versicherungen AG does not view individual publishing of the Management Board salaries to be meaningful or useful in consideration of data privacy issues and the right of privacy of the individual Management Board members.
Rule 45 (irrelevant as of 31 May 2010)
Markus Mair is, in addition to his function as a member of the Supervisory Board of UNIQA Versicherungen AG, also on the Supervisory Board of Grazer Wechselseitige Versicherung Aktiengesellschaft and GRAWE-Vermögensverwaltung.
Due to the growth of UNIQA's shareholder structure and the special nature of the insurance business with regard to the investment of insurance assets, there are a number of contracts with individual members of the Supervisory Boards of related companies. As long as such contracts require approval by the Supervisory Board according to Section 95 paragraph 5 sub-para 12 of the Austrian Stock Corporation Act (rule 48), the details of these contracts cannot be made public for reasons of company policy and competition laws. In any case, all transactions are handled under customary market conditions.
UNIQA Versicherungen AG does not view individual publishing of the Supervisory Board compensation to be meaningful or useful in consideration of data privacy issues and the right of privacy of the individual Supervisory Board members.
Chairman
Country responsibility
Austria
Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the Group financial statements
Appointed since 1 January 2002 until 30 September 2013
Responsible for
Country responsibility
Born in 1959 Appointed since 1 January 1998 until 30 September 2013
Responsible for
Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the Group financial statements
Member of the Board of Directors of Takaful Emarat Insurance, UAE
Private customer business
IT
Country responsibility
Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the Group financial statements
Member of the Supervisory Board of Raiffeisen Informatik GmbH, Vienna
Country responsibility
Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the Group financial statements
The rules of procedure regulate the distribution of business and the cooperation of the Management Board. They also describe the notification and reporting obligations of the Management Board with respect to the Supervisory Board and stipulate a catalogue of measures that require approval by the Supervisory Board.
Chairman
Supervisory Board appointments in domestic and foreign listed companies
Supervisory Board appointments in domestic and foreign listed companies
First Vice Chairman of the Supervisory Board of Erste Group Bank AG, Vienna
Supervisory Board appointments in domestic and foreign listed companies
Chairman of the Supervisory Board of Raiffeisen Bank International AG, Vienna
Supervisory Board appointments in domestic and foreign listed companies
Third Vice Chairman of the Supervisory Board of Raiffeisen Bank International AG, Vienna
Supervisory Board appointments in domestic and foreign listed companies
Supervisory Board appointments in domestic and foreign listed companies
Member of the Supervisory Board of Raiffeisen Bank International AG, Vienna
The Supervisory Board of UNIQA Versicherungen AG had five meetings in 2010.
Assigned by the Central Employee Council
Assigned by the Central Employee Council
Assigned by the Central Employee Council
The Supervisory Board advises the Management Board in its strategic planning and projects. It participates in the decisions assigned to it by statute, by the company articles and by its rules of procedure. The Supervisory Board is responsible for supervising the management of the company by the Management Board.
A Committee for Board Affairs of the Supervisory Board has been formed for handling the relationships between the company and the members of its Management Board relating to employment and salary.
The appointed Working Committee of the Supervisory Board shall be called upon for decisions only if the urgency of the issue will not allow the decision to wait until the next meeting of the Supervisory Board. The evaluation of the urgency is the responsibility of the chairman. The decisions passed must be reported in the next meeting of the Supervisory Board. The Working Committee decides in principle on all issues that are the responsibility of the Supervisory Board; issues of particular important or stipulated by law are excepted, however.
The Audit Committee of the Supervisory Board has the same membership as the Working Committee. The Audit Committee, including the activities of the Working Committee in its function as Audit Committee, performs the duties assigned to it by law.
Finally, the Investment Committee advises the Management Board with regard to its investment policy; it has no decision-making authority.
At its two meetings, the Committee for Board Affairs dealt with the legal employment formalities of the members of the Management Board.
The Working Committee mainly discussed the profit developments of the Group, assessed the company strategy and made one decision regarding steps to be taken by circulating it in writing. The committee had five meetings in 2010.
The Audit Committee, including the Working Committee which also met in its function as Audit Committee, met for six meetings, dealt with all audit documents and the Management Board's proposed appropriation of profit and particularly addressed the reports of Internal Auditing regarding audit areas and significant audit discoveries based on executed audits.
The Investment Committee had five meetings about the capital investment strategy and questions of the capital structure.
The various chairmen of the committees informed the members of the Supervisory Board about the meetings and their committee's work.
In recent years, UNIQA has been filling more and more top executive positions with women. In 2010 alone, four female employees were promoted to department head and managing director positions which report directly to the Management Board. One of the Group's particularly ambitious personnel policy goals is to attract women to leadership positions in sales.
With its flexible work-time models, UNIQA provides its female employees with a tool to make their careers compatible with their families as well as they can.
In the international Group companies, nearly every fourth manager of the first and second management levels is a woman. In this area, the UNIQA Group has already achieved a 25% female ratio.
In the recruiting process, UNIQA pays attention not just to education, experience, personal qualities, and equal gender treatment. As an international corporation active in 21 European countries, UNIQA places special emphasis on encouraging female employees to spend a certain amount of their professional life in international Group companies.
The Supervisory Board committee for Board affairs, which also acts as the Nominating Committee, strives to include equally qualified women to be considered for upcoming vacancies on the Supervisory Board and the Management Board.
All selected members of the Supervisory Board have declared their independence under rule 53 of the Austrian Code of Corporate Governance.
A Supervisory Board member is considered independent if he or she is not in any business or personal relationship with the company or its Management Board that represents a material conflict of interests and is therefore capable of influencing the behaviour of the member.
UNIQA has established the following points as additional criteria for the independence of a Supervisory Board member:
The rules of procedure regulate the distribution of business and the cooperation of the Management Board. They also describe the notification and reporting obligations of the Management Board with respect to the Supervisory Board and stipulate a catalogue of measures that require approval by the Supervisory Board.
Members of the Management Board receive remunerations exclusively from UNIQA Versicherungen AG.
| 2010 | 2009 |
|---|---|
| € 000 | |
| 2,747 | 2,895 |
| 1,959 | 0 |
| 4,705 | 2,895 |
| 4,470 | 2,750 |
| 2,556 | 2,522 |
| 23,548 | 21,746 |
| € 000 |
The remuneration to members of the Supervisory Board amounted to:
| 2010 € 000 |
2009 € 000 |
|
|---|---|---|
| For the current financial year (provision) | 380 | 323 |
| Meeting attendance fee | 39 | 35 |
| Total | 419 | 358 |
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 Section 80b of the Insurance Supervisory Act, which must be included in the Notes as mandatory information for financial statements according to IFRS to release the company from the requirement to prepare financial statements in accordance with the Austrian Commercial Code, is defined for the individual financial statements according to the provisions of the Austrian Commercial 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 a legally binding basis exists with UNIQA Versicherungen AG.
A variable income component was made available to the members of the Management Board in the form of bonus agreements if they meet certain defined prerequisites for entitlement. This bonus will be provided as a one-time payment based on the earnings situation. The basis for determining the size of the bonus is the return on equity based on the IFRS consolidated financial statements of UNIQA Versicherungen AG. The Management Board reports to the Committee for Board Affairs on the balance sheet work involving the development of the Group's reserves. The Committee for Board Affairs can appropriately take changes to the reserves into account in determining the size of the bonus payments and establish an adjusted Group return on equity. No changes with respect to the previous year were made to the principles of the profit participation.
Retirement pensions, a pension for occupational invalidity as well as a widow's and orphan's pension have been established, whereby the pension entitlements are managed by ÖPAG Pensionskassen AG. The retirement pension is due in principle upon meeting the requirements for the old-age pension according to the General Social Security Act. In event of an earlier retirement, the pension claim is reduced. For the occupational invalidity pension and the pension for surviving dependants, flat rates are provided as a 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 in the Management Board; however, a reduction rule applies.
Remunerations to the Supervisory Board are decided 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.
Such insurance exists, and the relevant costs are paid by UNIQA.
A comprehensive risk report (rule 67) is included in the Group notes beginning on p. 82. A description of the announcements made about the directors' dealings (rule 70) can also be found in the Corporate Governance area of the Group website.
Konstantin Klien Chairman of the Management Board
Andreas Brandstetter Vice Chairman of the Management Board
Vienna, 6 April 2011
Hannes Bogner Member of the Management Board
Karl Unger Member of the Management Board
Gottfried Wanitschek Member of the Management Board
as at 31 December 2010
| Assets | Notes | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
1 Jan. 2009 € 000 |
|
|---|---|---|---|---|---|
| A. | Tangible assets | ||||
| I. Self-used land and buildings |
1 | 268,563 | 230,077 | 220,565 | |
| II. Other tangible assets | 2 | 138,657 | 132,447 | 113,412 | |
| 407,220 | 362,524 | 333,977 | |||
| B. | Land and buildings held as financial investments | 3 | 1,465,297 | 1,433,091 | 1,147,634 |
| C. | Intangible assets | ||||
| I. Deferred acquisition costs |
4 | 885,646 | 877,394 | 872,003 | |
| II. Goodwill | 5 | 592,402 | 607,191 | 500,969 | |
| III. Other intangible assets | 6 | 31,400 | 31,875 | 34,424 | |
| 1,509,448 | 1,516,459 | 1,407,396 | |||
| D. | Shares in associated companies | 7 | 546,444 | 717,163 | 851,382 |
| E. | Investments | ||||
| I. Variable-yield securities |
|||||
| 1. Available for sale | 9 | 1,751,520 | 1,321,142 | 1,397,749 | |
| 2. At fair value through profit or loss | 694,424 | 706,219 | 948,998 | ||
| 2,445,944 | 2,027,361 | 2,346,747 | |||
| II. Fixed interest securities | |||||
| 1. Held to maturity | 8 | 340,000 | 340,000 | 448,957 | |
| 2. Available for sale | 9 | 11,198,539 | 9,879,620 | 8,605,679 | |
| 3. At fair value through profit or loss | 317,383 | 246,936 | 271,468 | ||
| 11,855,922 | 10,466,556 | 9,326,105 | |||
| III. Loans and other investments | |||||
| 1. Loans | 11 | 2,442,231 | 2,943,107 | 3,201,817 | |
| 2. Cash at credit institutions | 12 | 863,652 | 1,201,925 | 1,457,298 | |
| 3. Deposits with ceding companies | 12 | 136,794 | 136,149 | 129,405 | |
| 3,442,677 | 4,281,180 | 4,788,519 | |||
| IV. Derivative financial instruments | |||||
| 1. Variable-yield | 10 | 6,239 | 3,606 | 15,898 | |
| 2. Fixed interest | 10 | 22,013 | 8,252 | 3,179 | |
| 28,252 | 11,858 | 19,077 | |||
| 17,772,793 | 16,786,955 | 16,480,448 | |||
| F. | Investments held on account and at risk of life insurance policyholders | 24 | 4,192,730 | 3,473,553 | 2,642,462 |
| G. | Share of reinsurance in technical provisions | ||||
| I. Provision for unearned premiums |
19 | 20,755 | 20,341 | 26,853 | |
| II. Actuarial provision | 20 | 448,708 | 448,599 | 431,387 | |
| III. Provision for outstanding claims | 21 | 239,975 | 293,762 | 265,344 | |
| IV. Provision for profit-unrelated premium refunds | 22 | 33 | 99 | 225 | |
| V. Provision for profit-related premium refunds, i.e. policyholder profit sharing | 22 | 0 | 0 | 0 | |
| VI. Other technical provisions | 3,005 | 3,649 | 5,529 | ||
| 23 | 712,476 | 766,450 | 729,338 | ||
| H. | Share of reinsurance in technical provisions held on account and at risk of life insurance policyholders |
24 | 396,542 | 382,338 | 382,480 |
| I. | Receivables including receivables under insurance business | 13 | |||
| I. Reinsurance receivables |
39,741 | 52,558 | 46,766 | ||
| II. Other receivables | 912,855 | 916,653 | 835,119 | ||
| III. Other assets | 54,819 | 50,690 | 50,432 | ||
| 1,007,415 | 1,019,902 | 932,317 | |||
| J. | Receivables from income tax | 14 | 46,111 | 40,348 | 54,077 |
| K. | Deferred tax assets | 15 | 105,821 | 96,295 | 69,096 |
| L. | Liquid funds | 532,903 | 797,658 | 567,853 | |
| Total assets | 28,695,200 | 27,392,735 | 25,598,461 | ||
| Equity and liabilities | Notes | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
1 Jan. 2009 € 000 |
|
|---|---|---|---|---|---|
| A. | Total equity | ||||
| I. | Shareholders' equity | 16 | |||
| 1. Subscribed capital and capital reserves | 540,681 | 540,681 | 390,681 | ||
| 2. Revenue reserves | 731,217 | 724,523 | 809,227 | ||
| 3. Revaluation reserves | –15,639 | 10,600 | 11,570 | ||
| 4. Actuarial gains and losses on defined benefit plans | –22,287 | 7,057 | 18,660 | ||
| 5. Group total profit | 57,617 | 50,201 | 34,577 | ||
| 1,291,589 | 1,333,063 | 1,264,714 | |||
| II. Minority interests in shareholders' equity | 17 | 245,051 | 231,720 | 194,062 | |
| 1,536,641 | 1,564,782 | 1,458,776 | |||
| B. | Subordinated liabilities | 18 | 575,000 | 575,000 | 580,544 |
| C. | Technical provisions | ||||
| I. | Provision for unearned premiums | 19 | 594,822 | 552,569 | 521,637 |
| II. Actuarial provision | 20 | 16,479,742 | 16,055,368 | 15,601,625 | |
| III. Provision for outstanding claims | 21 | 2,392,372 | 2,299,943 | 2,175,342 | |
| IV. Provision for profit-unrelated premium refunds | 22 | 49,472 | 47,588 | 46,135 | |
| V. Provision for profit-related premium refunds, i.e. policyholder profit sharing | 22 | 164,695 | 196,565 | –5,229 | |
| VI. Other technical provisions | 47,392 | 47,677 | 49,452 | ||
| 23 | 19,728,494 | 19,199,710 | 18,388,962 | ||
| D. | Technical provisions for life insurance policies held on account and at risk of life insurance policyholders |
24 | 4,142,636 | 3,416,231 | 2,579,997 |
| E. | Financial liabilities | ||||
| I. | Liabilities from loans | 25 | 48,505 | 55,356 | 189,053 |
| II. Derivatives | 10 | 3,663 | 26,939 | 7,087 | |
| 52,168 | 82,295 | 196,140 | |||
| F. | Other provisions | ||||
| I. | Pensions and similar provisions | 26 | 524,376 | 466,837 | 436,478 |
| II. Other provisions | 27 | 201,149 | 192,327 | 207,919 | |
| 725,526 | 659,164 | 644,397 | |||
| G. | Payables and other liabilities | 28 | |||
| I. | Reinsurance liabilities | 889,550 | 872,587 | 869,258 | |
| II. Other payables | 660,339 | 650,881 | 567,129 | ||
| III. Other liabilities | 14,662 | 10,854 | 11,122 | ||
| 1,564,551 | 1,534,321 | 1,447,509 | |||
| H. | Liabilities from income tax | 29 | 56,170 | 48,732 | 57,294 |
| I. | Deferred tax liabilities | 30 | 314,014 | 312,499 | 244,841 |
To increase transparency in the reporting process, the UNIQA Group has decided to exercise the right stipulated in IAS 19.93A ff concerning balancing the accounts of pension and severance payment provisions, and to implement this change as of 31 December 2010. From now on, the amount of the actuarial gains and losses will therefore be reported as shareholders' equity, after deducting deferred taxes and deferred profit participation, without affecting income. In accordance with IAS 8, the amounts of the previous year have been adjusted to reflect this.
| 2009 | 2009 | 2009 | ||
|---|---|---|---|---|
| after change | before | change | ||
| € 000 | change | € 000 | ||
| € 000 | ||||
| Consolidated Balance Sheet | ||||
| I. | Shareholders' equity | |||
| 4. Actuarial gains and losses on defined | ||||
| benefit plans | 7,057 | 0 | 7,057 | |
| 5. Group total profit | 50,201 | 57,258 | –7,057 | |
| Consolidated Income Statement | ||||
| 5. | Net investment income | 751,656 | 751,603 | 53 |
| 7. | Insurance benefits | –4,056,446 –4,054,442 | –2,004 | |
| a) Gross | –4,284,398 –4,282,394 | –2,004 | ||
| 8. | Operating expenses | –1,267,206 –1,283,750 | 16,544 | |
| b) Other operating expenses | –412,852 | –429,396 | 16,544 | |
| 9. | Other expenses | –119,947 | –123,052 | 3,105 |
| 11. | Operating profit | 135,118 | 117,420 | 17,698 |
| 15. | Profit on ordinary activities | 100,026 | 82,328 | 17,698 |
| 16. | Income taxes | –44,362 | –39,596 | –4,766 |
| 17. | Net profit | 55,664 | 42,732 | 12,932 |
| of which consolidated profit | 25,672 | 14,115 | 11,557 | |
| of which minority interests | 29,993 | 28,618 | 1,375 | |
| Earnings per share | 0.19 | 0.11 | 0.08 |
The following parts of the Group report are, in accordance with IAS 8, affected by the change in the balancing of the accounts of defined benefit plans: the consolidated balance sheet, consolidated income statement, comprehensive income statement, Group cash flow statement, development of equity, segment reports, earnings per share and the details in the notes.
| 2009 | 2009 | 2009 | |
|---|---|---|---|
| after change | before change | change | |
| € 000 | € 000 | € 000 | |
| Classified by region | |||
| Net investment income | |||
| Austria | 617,996 | 617,943 | 53 |
| In the consolidated financial statements |
751,656 | 751,603 | 53 |
| Insurance benefits (net) | |||
| Austria | –2,738,835 | –2,736,831 | –2,004 |
| In the consolidated financial statements |
–4,056,446 | –4,054,442 | –2,004 |
| Operating expenses | |||
| Austria | –735,700 | –749,534 | 13,834 |
| Germany | –134,293 | –137,003 | 2,710 |
| In the consolidated financial statements |
–1,267,206 | –1,283,750 | 16,544 |
| Profit on ordinary activities | |||
| Austria | 86,143 | 74,115 | 12,028 |
| Germany | 15,217 | 9,547 | 5,670 |
| In the consolidated financial statements |
100,026 | 82,328 | 17,698 |
from 1 January to 31 December 2010
| Notes | 2010 € 000 |
2009 € 000 |
|
|---|---|---|---|
| 1. | Premiums written (retained) 31 |
||
| a) Gross | 5,379,138 | 5,011,651 | |
| b) Reinsurers' share | –202,414 | –217,254 | |
| 5,176,724 | 4,794,398 | ||
| 2. | Change due to premiums earned (retained) | ||
| a) Gross | –35,552 | –17,445 | |
| b) Reinsurers' share | –326 | –6,796 | |
| –35,877 | –24,240 | ||
| 3. | Premiums earned (retained) 32 |
||
| a) Gross | 5,343,587 | 4,994,207 | |
| b) Reinsurers' share | –202,740 | –224,049 | |
| 5,140,847 | 4,770,158 | ||
| 4. | Income from fees and commissions 33 |
||
| Reinsurance commissions and profit shares from reinsurance business ceded | 16,574 | 14,821 | |
| 5. | Net investment income 34 |
872,316 | 751,656 |
| of which profit from associated companies | 22,012 | –62,295 | |
| 6. | Other income 35 |
115,542 | 60,624 |
| Total income | 6,145,278 | 5,597,260 | |
| 7. | Insurance benefits 36 |
||
| a) Gross | –4,565,923 | –4,284,398 | |
| b) Reinsurers' share | 107,848 | 227,953 | |
| –4,458,075 | –4,056,445 | ||
| 8. | Operating expenses 37 |
||
| a) Acquisition costs | –936,001 | –854,353 | |
| b) Other operating expenses | –426,230 | –412,853 | |
| –1,362,231 | –1,267,206 | ||
| 9. | Other expenses 38 |
–126,196 | –119,947 |
| 10. | Amortisation of goodwill | –14,481 | –18,543 |
| Total expenses | –5,960,983 | –5,462,142 | |
| 11. | Operating profit | 184,295 | 135,118 |
| 12. | Financing costs | –31,492 | –35,091 |
| 13. | Profit on ordinary activities except extraordinary tax financial sector (Hungary) | 152,804 | 100,026 |
| 14. | Extraordinary tax financial sector (Hungary) | –6,771 | 0 |
| 15. | Profit on ordinary activities | 146,033 | 100,026 |
| 16. | Income taxes 39 |
–50,981 | –44,362 |
| 17. | Net profit | 95,052 | 55,664 |
| of which consolidated profit | 46,434 | 25,672 | |
| of which minority interests | 48,618 | 29,993 | |
| Earnings per share 1) in € 16 |
0.33 | 0.19 | |
| Average number of shares in circulation | 142,165,567 | 131,723,521 |
1) The diluted earnings per share is equal to the undiluted earnings per share. Calculated on the basis of the consolidated profit.
from 1 January to 31 December 2010
| 2010 | 2009 |
|---|---|
| € 000 | € 000 |
| 95,052 | 55,664 |
| 15,525 | –22,096 |
| 421 | 0 |
| –90,086 | 231,601 |
| 11,863 | –21,962 |
| 53,072 | –170,142 |
| –67,425 | –10,533 |
| 3,631 | 7,576 |
| 52,850 | –16,362 |
| 7,268 | –22,427 |
| 0 | 0 |
| –52,784 | –19,701 |
| 10,711 | 4,766 |
| 8,712 | 2,004 |
| 1,329 | 2,113 |
| –44,915 | –35,164 |
| 50,137 | 20,500 |
| 15,393 | –29,310 |
| 34,744 | 49,810 |
| 0 | 0 |
1) The other changes result primarily from currency fluctuations.
from 1 January to 31 December 2010
| 2010 € 000 |
2009 € 000 |
|
|---|---|---|
| Net profit including minority interests | ||
| Net profit | 95,052 | 55,664 |
| of which interest and dividend payments | 4,807 | –8,518 |
| Minority interests | –48,618 | –29,947 |
| Change in technical provisions (net) | 1,294,960 | 1,588,280 |
| Change in deferred acquisition costs | –8,252 | –5,390 |
| Change in amounts receivable and payable from direct insurance | –3,095 | 41,632 |
| Change in other amounts receivable and payable | 47,146 | –92,788 |
| Change in securities at fair value through profit or loss | –75,045 | 274,531 |
| Realised gains/losses on the disposal of investments | –269,251 | –930,298 |
| Depreciation/appreciation of other investments | –106,171 | 262,637 |
| Change in provisions for pensions and severance payments | 57,540 | 30,359 |
| Change in deferred tax assets/liabilities | –8,012 | 30,539 |
| Change in other balance sheet items | –59,471 | –12,166 |
| Change in goodwill and intangible assets | 12,690 | –21,962 |
| Other non-cash income and expenses as well as accounting period adjustments | –4,801 | –54,013 |
| Net cash flow from operating activities | 924,672 | 1,137,078 |
| of which cash flow from income tax | –30,913 | –23,385 |
| Receipts due to disposal of consolidated companies | 200,651 | 254,983 |
| Payments due to acquisition of consolidated companies | –13,112 | –273,129 |
| Receipts due to disposal and maturity of other investments | 8,558,867 | 10,878,155 |
| Payments due to acquisition of other investments | –9,152,476 | –10,941,012 |
| Change in investments held on account and at risk of life insurance policyholders | –719,177 | –831,090 |
| Net cash flow used in investing activities | –1,125,247 | –912,094 |
| Change in investments in own shares | 0 | 0 |
| Share capital increase | 0 | 150,000 |
| Dividend payments | –56,866 | –52,341 |
| Receipts and payments from other financing activities | –6,851 | –139,242 |
| Net cash flow used in financing activities | –63,717 | –41,583 |
| Change in cash and cash equivalents | –264,292 | 183,401 |
| Change in cash and cash equivalents due to foreign currency translation | –465 | –2,132 |
| Change in cash and cash equivalents due to acquisition/disposal of consolidated companies | 2 | 48,535 |
| Cash and cash equivalents at beginning of period | 797,658 | 567,853 |
| Cash and cash equivalents at end of period | 532,903 | 797,658 |
| of which cash flow from income tax | –30,913 | –23,385 |
The cash and cash equivalents correspond to item L. of the assets: Liquid funds.
| Subscribed capital and capital reserves |
Revaluation reserve | Actuarial gains and losses on defined benefit plans |
||
|---|---|---|---|---|
| € 000 | € 000 | € 000 | ||
| As at 31 Dec. 2008 | 390,681 | 11,570 | 18,660 | |
| Changes due to: | ||||
| Capital increase | 150,000 | |||
| Change in consolidation scope | ||||
| Dividends to shareholders | ||||
| Income and expenses according to the consolidated comprehensive income statement | –969 | –11,603 | ||
| As at 31 Dec. 2009 | 540,681 | 10,600 | 7,057 | |
| Changes due to: | ||||
| Change in consolidation scope | ||||
| Dividends to shareholders | ||||
| Income and expenses according to the consolidated comprehensive income statement | –26,240 | –29,343 | ||
| As at 31 Dec. 2010 | 540,681 | –15,639 | –22,287 |
| Revenue reserves including reserves for own shares |
Holding of own shares | Profits carried forward and net profit for the year |
Equity | Minority interests |
Total equity |
|---|---|---|---|---|---|
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
| 820,085 | 10,857 | 34,577 | 1,264,714 | 194,062 | 1,458,776 |
| 150,000 | 150,000 | ||||
| –3,717 | –3,717 | ||||
| –52,341 | –52,341 | –8,436 | –60,777 | ||
| –84,704 | 67,966 | –29,310 | 49,810 | 20,500 | |
| 735,381 | 10,857 | 50,201 | 1,333,063 | 231,720 | 1,564,782 |
| –5,613 | –5,613 | ||||
| –56,866 | –56,866 | –15,799 | –72,665 | ||
| 6,694 | 64,282 | 15,393 | 34,744 | 50,137 | |
| 742,075 | 10,857 | 57,617 | 1,291,589 | 245,051 | 1,536,641 |
| Property and casualty | Health | ||||
|---|---|---|---|---|---|
| 31 Dec. 2010 | 31 Dec. 2009 | 31 Dec. 2010 | 31 Dec. 2009 | ||
| € 000 | € 000 | € 000 | € 000 | ||
| Assets | |||||
| A. Tangible assets |
182,928 | 189,425 | 29,356 | 29,693 | |
| B. Land and buildings held as financial investments |
289,959 | 377,011 | 288,647 | 285,541 | |
| C. Intangible assets |
535,163 | 595,092 | 237,721 | 233,387 | |
| D. Shares in associated companies |
27,762 | 120,188 | 190,200 | 0 | |
| E. Investments |
2,887,092 | 2,683,346 | 2,197,962 | 2,170,268 | |
| F. Investments held on account and at risk of life insurance policyholders |
0 | 0 | 0 | 0 | |
| G. Share of reinsurance in technical provisions |
246,362 | 305,285 | 3,183 | 2,709 | |
| H. Share of reinsurance in technical provisions held on account and at risk of life insurance policyholders |
0 | 0 | 0 | 0 | |
| I. Receivables including receivables under insurance business |
770,306 | 625,437 | 279,236 | 213,443 | |
| J. Receivables from income tax |
36,396 | 28,899 | 580 | 1,258 | |
| K. Deferred tax assets |
83,564 | 80,958 | 2,957 | 527 | |
| L. Liquid funds |
156,319 | 232,910 | 136,362 | 181,642 | |
| Total segment assets | 5,215,850 | 5,238,551 | 3,366,204 | 3,118,468 | |
| Equity and liabilities | |||||
| B. Subordinated liabilities |
335,000 | 335,000 | 0 | 0 | |
| C. Technical provisions |
2,761,658 | 2,658,848 | 2,786,820 | 2,622,190 | |
| D. Technical provisions for life insurance policies held on account and at risk of life insurance policyholders |
0 | 0 | 0 | 0 | |
| E. Financial liabilities |
41,495 | 35,116 | 27,243 | 34,107 | |
| F. Other provisions |
657,813 | 611,441 | 21,358 | 20,197 | |
| G. Payables and other liabilities |
989,251 | 1,041,905 | 86,371 | 69,479 | |
| H. Liabilities from income tax |
50,906 | 42,880 | 1,985 | 2,162 | |
| I. Deferred tax liabilities |
213,740 | 198,246 | 75,958 | 73,449 | |
| Total segment liabilities | 5,049,864 | 4,923,436 | 2,999,736 | 2,821,584 |
| Life | Consolidation | Group | |||
|---|---|---|---|---|---|
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
| 194,936 | 143,406 | 0 | 0 | 407,220 | 362,524 |
| 886,690 | 770,539 | 0 | 0 | 1,465,297 | 1,433,091 |
| 736,565 | 687,980 | 0 | 0 | 1,509,448 | 1,516,459 |
| 328,483 | 596,975 | 0 | 0 | 546,444 | 717,163 |
| 13,036,902 | 12,293,992 | –349,163 | –360,651 | 17,772,793 | 16,786,955 |
| 4,192,730 | 3,473,553 | 0 | 0 | 4,192,730 | 3,473,553 |
| 462,930 | 458,456 | 0 | 0 | 712,476 | 766,450 |
| 396,542 | 382,338 | 0 | 0 | 396,542 | 382,338 |
| 660,807 | 901,783 | –702,933 | –720,762 | 1,007,415 | 1,019,902 |
| 9,135 | 10,191 | 0 | 0 | 46,111 | 40,348 |
| 19,301 | 14,810 | 0 | 0 | 105,821 | 96,295 |
| 240,222 | 383,106 | 0 | 0 | 532,903 | 797,658 |
| 21,165,242 | 20,117,129 | –1,052,096 | –1,081,413 | 28,695,200 | 27,392,735 |
| 270,000 | 270,000 | –30,000 | –30,000 | 575,000 | 575,000 |
| 14,174,223 | 13,918,159 | 5,793 | 512 | 19,728,494 | 19,199,710 |
| 4,142,636 | 3,416,231 | 0 | 0 | 4,142,636 | 3,416,231 |
| 208,384 | 218,788 | –224,955 | –205,716 | 52,168 | 82,295 |
| 46,354 | 27,526 | 0 | 0 | 725,526 | 659,164 |
| 1,279,930 | 1,265,080 | –791,001 | –842,143 | 1,564,551 | 1,534,321 |
| 3,279 | 3,691 | 0 | 0 | 56,170 | 48,732 |
| 24,316 | 40,804 | 0 | 0 | 314,014 | 312,499 |
| 20,149,122 | 19,160,280 | –1,040,163 | –1,077,347 | 27,158,559 | 25,827,952 |
| Shareholders' equity and minority interests | 1,536,641 | 1,564,782 | |||
| Total equity and liabilities | 28,695,200 | 27,392,735 |
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 | ||||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | ||
| € 000 | € 000 | € 000 | € 000 | ||
| 1. a) Gross premiums written |
2,613,997 | 2,470,840 | 970,308 | 937,467 | |
| 1. Premiums written (retained) |
2,483,406 | 2,325,158 | 966,595 | 935,120 | |
| 2. Change due to premiums earned (retained) |
–33,692 | –26,007 | –397 | –1,241 | |
| 3. Premiums earned (retained) |
2,449,714 | 2,299,151 | 966,197 | 933,879 | |
| 4. Income from fees and commissions |
13,355 | 13,697 | 44 | 113 | |
| 5. Net investment income |
91,768 | 117,382 | 128,463 | 96,852 | |
| 6. Other income |
107,359 | 62,590 | 5,794 | 2,711 | |
| 7. Insurance benefits |
–1,751,238 | –1,562,407 | –839,357 | –811,779 | |
| 8. Operating expenses |
–834,698 | –800,105 | –141,484 | –126,074 | |
| 9. Other expenses |
–84,269 | –90,605 | –6,205 | –4,845 | |
| 10. Amortisation of goodwill |
–5,901 | –12,837 | –156 | 0 | |
| 11. Operating profit |
–13,910 | 26,866 | 113,295 | 90,859 | |
| 12. Financing costs |
–17,757 | –21,013 | –391 | –549 | |
| 13. Profit on ordinary activities except extraordinary tax financial sector | |||||
| (Hungary) | –31,667 | 5,853 | 112,904 | 90,309 | |
| 14. Extraordinary tax financial sector (Hungary) |
–3,573 | 0 | 0 | 0 | |
| 15. Profit on ordinary activities |
–35,241 | 5,853 | 112,904 | 90,309 | |
| 16. Income taxes |
–2,792 | –18,880 | –29,418 | –20,904 | |
| 17. Net profit |
–38,033 | –13,027 | 83,486 | 69,405 | |
| of which consolidated profit | –38,359 | –12,527 | 38,533 | 53,697 | |
| of which minority interests | 326 | –500 | 44,953 | 15,708 |
| Property and casualty | Health | ||||
|---|---|---|---|---|---|
| 2010 € 000 |
2009 € 000 |
2010 € 000 |
2009 € 000 |
||
| Goodwill | |||||
| Change in impairment for current year | 11 | 0 | 0 | 0 | |
| of which reallocation affecting income | 11 | 0 | 0 | 0 | |
| Investments | |||||
| Change in impairment for current year | –12,707 | –27,935 | –1,945 | –15,505 | |
| of which reallocation/reinstatement of original values affecting income | –12,707 | –27,935 | –1,945 | –15,505 |
| Life | Consolidation | Group | |||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 |
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
| 1,818,746 | 1,628,017 | –23,913 | –24,672 | 5,379,138 | 5,011,651 |
| 1,740,934 | 1,547,040 | –14,211 | –12,921 | 5,176,724 | 4,794,398 |
| 405 | –1,046 | –2,193 | 4,053 | –35,877 | –24,240 |
| 1,741,339 | 1,545,995 | –16,404 | –8,868 | 5,140,847 | 4,770,158 |
| 7,793 | 5,407 | –4,618 | –4,395 | 16,574 | 14,821 |
| 651,246 | 538,758 | 839 | –1,336 | 872,316 | 751,656 |
| 20,824 | 17,875 | –18,435 | –22,552 | 115,542 | 60,624 |
| –1,878,103 | –1,692,384 | 10,624 | 10,125 | –4,458,075 | –4,056,445 |
| –391,532 | –343,235 | 5,483 | 2,207 | –1,362,231 | –1,267,206 |
| –50,395 | –50,223 | 14,672 | 25,726 | –126,196 | –119,947 |
| –8,423 | –5,707 | 0 | 0 | –14,481 | –18,543 |
| 92,749 | 16,486 | –7,838 | 908 | 184,295 | 135,118 |
| –13,344 | –13,529 | 0 | 0 | –31,492 | –35,091 |
| 79,405 | 2,957 | –7,838 | 908 | 152,804 | 100,026 |
| –3,198 | 0 | 0 | 0 | –6,771 | 0 |
| 76,207 | 2,957 | –7,838 | 908 | 146,033 | 100,026 |
| –18,771 | –4,578 | 0 | 0 | –50,981 | –44,362 |
| 57,436 | –1,621 | –7,838 | 908 | 95,052 | 55,664 |
| 54,098 | –16,406 | –7,838 | 908 | 46,434 | 25,672 |
| 3,339 | 14,784 | 0 | 0 | 48,618 | 29,993 |
| Life | Consolidation | Group | |||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 |
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
| 0 | –7,418 | 0 | 0 | 11 | –7,418 |
| 0 | –7,418 | 0 | 0 | 11 | –7,418 |
| –49,318 | –206,298 | 0 | 0 | –63,969 | –249,738 |
| –49,318 | –206,298 | 0 | 0 | –63,969 | –249,738 |
| Premiums earned (retained) | Net investment income | ||||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | ||
| € 000 | € 000 | € 000 | € 000 | ||
| Western Europe (incl. Austria) | 4,337,079 | 4,038,185 | 818,815 | 705,217 | |
| Austria | 3,062,780 | 3,028,391 | 747,609 | 617,996 | |
| Other Europe | 2,094,471 | 1,750,634 | 133,442 | 142,627 | |
| Western Europe | 1,274,299 | 1,009,793 | 71,206 | 87,221 | |
| Italy | 481,920 | 291,411 | 55,158 | 48,980 | |
| Germany | 331,449 | 323,454 | 38,044 | 28,626 | |
| Switzerland | 457,665 | 392,286 | –24,238 | 12,225 | |
| Liechtenstein | 3,266 | 2,642 | 2,254 | –95 | |
| The Netherlands | 0 | 0 | –13 | –2,516 | |
| Eastern Europe | 820,172 | 740,841 | 62,236 | 55,406 | |
| Poland | 354,459 | 325,161 | 17,973 | 12,187 | |
| Hungary | 73,812 | 67,723 | 9,856 | 13,494 | |
| Czech Republic | 107,924 | 99,097 | 8,531 | 6,868 | |
| Bulgaria | 26,544 | 27,152 | 1,562 | –304 | |
| Slovakia | 53,471 | 51,939 | 3,870 | 3,728 | |
| Ukraine | 38,097 | 30,487 | 2,432 | 1,495 | |
| Romania | 60,991 | 76,605 | 2,782 | 9,896 | |
| Serbia | 27,123 | 26,027 | 5,795 | 5,483 | |
| Croatia | 22,003 | 20,544 | 4,451 | 1,553 | |
| Bosnia-Herzegovina | 14,529 | 13,802 | 1,176 | 1,142 | |
| Albania | 13,601 | 0 | 1,627 | –50 | |
| Russia | 11,597 | 128 | 1,436 | 139 | |
| Kosovo | 6,168 | 0 | 406 | 0 | |
| Macedonia | 5,533 | 0 | 247 | 0 | |
| Montenegro | 4,321 | 2,176 | 353 | 223 | |
| Other | 0 | 0 | –259 | –448 | |
| Total before consolidation | 5,157,251 | 4,779,025 | 881,052 | 760,623 | |
| Consolidation (based on geographic segments) | –16,404 | –8,868 | –8,736 | –8,967 | |
| In the consolidated financial statements | 5,140,847 | 4,770,158 | 872,316 | 751,656 |
1) Before extraordinary tax on the financial sector (Hungary).
The investment income and profit on ordinary activities by region are presented adjusted for the capital consolidation effects contained in the investment income. The consolidation item includes the expenditure and income consolidation from operational business relations between Group companies on the basis of geographic segments.
| Insurance benefits (net) | Operating expenses | Profit on ordinary activities1) | |||
|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 |
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
| –3,846,975 | –3,528,619 | –1,135,020 | –1,070,895 | 186,004 | 92,574 |
| –2,749,062 | –2,738,834 | –776,873 | –735,700 | 217,207 | 86,142 |
| –1,719,637 | –1,327,736 | –724,104 | –658,955 | –53,873 | 21,547 |
| –1,097,914 | –789,784 | –358,147 | –335,195 | –31,202 | 6,432 |
| –459,844 | –271,854 | –78,214 | –68,876 | 2,785 | 4,393 |
| –269,234 | –229,517 | –133,443 | –134,294 | –7,092 | 15,217 |
| –359,827 | –287,361 | –142,003 | –128,799 | –27,781 | –10,413 |
| –9,009 | –1,052 | –4,487 | –3,226 | 898 | –249 |
| 0 | 0 | 0 | 0 | –13 | –2,516 |
| –621,723 | –537,951 | –365,957 | –323,760 | –22,671 | 15,115 |
| –336,398 | –288,695 | –74,719 | –64,574 | –18,740 | –431 |
| –36,559 | –26,323 | –60,845 | –60,928 | –3,076 | 8,586 |
| –66,563 | –59,754 | –59,742 | –53,776 | 8,749 | 13,062 |
| –12,701 | –15,753 | –18,535 | –20,077 | 1,727 | –4,505 |
| –29,512 | –28,887 | –33,783 | –33,437 | 7,067 | 7,737 |
| –18,879 | –13,840 | –23,835 | –18,493 | –1,151 | –1,584 |
| –55,959 | –62,346 | –35,246 | –36,134 | –18,160 | –4,585 |
| –16,174 | –17,344 | –14,861 | –13,810 | 1,163 | 339 |
| –19,204 | –14,897 | –13,211 | –11,891 | –783 | 225 |
| –9,188 | –8,739 | –6,584 | –6,305 | 267 | 168 |
| –6,581 | 0 | –6,708 | 0 | 2,645 | –51 |
| –6,526 | –120 | –8,292 | –2,035 | –1,763 | –2,033 |
| –2,701 | 0 | –3,237 | 0 | 382 | 0 |
| –3,494 | 0 | –2,582 | 0 | 134 | 0 |
| –1,285 | –1,254 | –3,845 | –2,077 | –943 | –1,140 |
| 0 | 0 | 68 | –223 | –191 | –671 |
| –4,468,698 | –4,066,570 | –1,500,977 | –1,394,655 | 163,334 | 107,689 |
| 10,624 | 10,125 | 138,746 | 127,449 | –10,530 | –7,663 |
| –4,458,075 | –4,056,445 | –1,362,231 | –1,267,206 | 152,804 | 100,026 |
As a publicly listed company, UNIQA is obligated to prepare its consolidated financial statements according to internationally accepted accounting principles. In accordance with Section 245a of the Austrian Commercial Code, the company has prepared the consolidated financial statements exclusively in agreement with the International Financial Reporting Standards (IFRS) as applied within the European Union. These consolidated financial statements and Group management report therefore do not follow the accounting principles according to the Insurance Supervisory Act, rather the International Financial Reporting Standards (IFRS) and the International Accounting Standards (IAS) in the versions applicable to this reporting period. No early application of modified standards was performed.
Since 2005, UNIQA Versicherungen AG has applied IFRS 4 published in 2004 for insurance policies. This standard demands that the methods of accounting and valuation be largely unaltered with regard to the technical items.
The present Group financial statements were therefore prepared, as in previous years, in compliance with IFRS 4 and in accordance with the regulations of the US Generally Accepted Accounting Principles (US-GAAP). For balancing the accounts and evaluation of the insurancespecific entries of the life insurer with profit participation, FAS 120 was observed; FAS 60 was applied for specific items in the health, property and casualty insurance and FAS 113 in the area of reinsurance. The unit-linked life insurance, where the policyholder bears the investment risk, is stated according to FAS 97.
The financial instruments were balanced in accordance with IAS 39 including the information required by IFRS 7, as most recently amended in November 2009. Aside from recording the securities under "Held to maturity", "Available for sale", "At fair value through profit or loss" and "Derivative financial instruments (held for trading)", additional disclosures for securities available for sale are reported in the following investment categories, which were utilised for the internal risk reports:
The modification of IFRS 2 (rev. 06/2009), share-based compensation, clarifies the way the share-based compensation with cash settlement is entered on the balance sheet. The new regulation does not affect UNIQA.
The revision of IFRS 3 (rev. 01/2008), mergers, and IAS 27 (rev. 01/2008), Group and individual company annual reports, particularly affects modifications in the balance sheet representation of nondominant shares, successive acquisition of holdings, costs related to acquisitions and conditional purchase price components. The impact of these new regulations on UNIQA in the 2010 financial year stems mainly from the costs related to acquisitions that can no longer be capitalised.
The amendment of IAS 39 (rev. 07/2008), financial instruments: recognition and measurement - eligible hedged items, clarifies how the designation of portions of cash flows or of risk affects the hedged item and to what extent inflation risks can be designated as a hedged item. The new regulation does not affect UNIQA.
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. 37 affiliated companies did not form part of the consolidated Group. They were only of minor significance, even if taken together, for the presentation of a true and fair view of the Group's assets, financial position and income. Therefore the scope of consolidation contains – in addition to UNIQA Versicherungen AG – 47 domestic and 82 foreign subsidiaries in which UNIQA Versicherungen AG held the majority of voting rights.
The scope of consolidation was extended in the reporting period by the following companies:
| Date of initial | Net profit | Acquired shares | Acquisition costs | Goodwill | |
|---|---|---|---|---|---|
| inclusion | € million | % | € million | € million | |
| Suoreva Ltd., Limassol | 1.1.2010 | 0.0 | 100.0 | 6.4 | 0.0 |
In the 1st quarter the Romanian company UNIQA Asigurari de Viata SA with its headquarters in Bucharest was merged with the Romanian life insurance UNIQA Life S.A. With the acquisition of Soureva Ltd., Limassol, the remaining 50% of the AVE-PLAZA LLC were brought into the Group.
In the 4th quarter the Albanian SIGAL Holding Sh.A. with its headquarters in Tirana was merged with the SIGAL UNIQA Group AUSTRIA Sh.A. 25% of Raiffeisen Life Insurance Company LLC was sold to ZAO Raiffeisen Bank Moscow. In addition, because of the intention to sell the Romanian property and casualty insurer Astra S.A. with its headquarters in Bucharest in 2011, it was transferred from the balance sheet item "shares in associated companies" to the item "variable yield securities available for sale".
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 ten domestic companies consolidated at equity; 15 companies were of minor significance and were listed at current market value.
In applying IAS 39 and in terms of the present interpretation of this statement by the IASB (SIC 12), fully controlled investment funds will be included in the consolidation insofar as their fund volumes were not of minor importance when viewed singularly and in total.
There have been no significant changes to the scope of consolidation.
Capital consolidation follows the acquisition method. The costs of acquiring shares in the subsidiaries are written as the proportional equity of the subsidiary that was first 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.
Negative differences from mergers consummated after 31 March 2004 must be credited with an effect on income immediately after reappraisal.
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.
The goodwill arises from company mergers and acquisitions. It represents the difference between the acquisition costs and the proportional and current corresponding net market value of identifiable assets, debts and specific contingent liabilities. In accordance with IAS 36, the goodwill is not subject to scheduled depreciation but listed as the acquisition costs less any accrued impairments.
For the purpose of the impairment test, the UNIQA Group has apportioned the goodwill into "cash-generating units" (CGU). These CGUs are the smallest identifiable groups of assets that generate cash which is to the greatest possible extent independent from the cash generating units of other assets or other groups of assets. The impairment test implies a comparison between the realisable value that can be generated by selling or using each CGU and its book value, consisting of the stock value and goodwill and the proportional net assets. If the book value of the CGU exceeds the realisable value of the unit based on the earning power method, an impairment is performed.
The UNIQA Group has apportioned the goodwill into the following CGUs:
| Region | 31 Dec. 2010 |
|---|---|
| € 000 | |
| Austria | 40,562 |
| Western European Markets (WEM) | 147,293 |
| Central Eastern Europe (CEE) | 62,663 |
| Eastern Emerging Markets (EEM) | 276,155 |
| Total | 526,672 |
The realisable value is determined by the UNIQA Group according to the earning power method (discounted cash flow method – DCF) and through application of generally accepted valuation principles. The budget projections (detailed planning phase) of the CGUs, the estimate of the long-term results achievable by the CGUs (perpetuity) are used as the starting point for determination of the earning power.
The earning power is determined through discounting of the future profits with a suitable capitalisation interest rate. The earning power values here are separated by balance sheet segments, which are then totalled to yield the value for the entire company.
Taxes on profit were set at the effective average tax rate of the past three years.
The assumptions with regard to risk-free interest rate, market risk premium and segment betas made for determination of the capitalisation interest rate are consistent with the parameters used in the UNI-QA planning and controlling process and are based on the capital asset pricing model.
In order to depict the economic situation and the financial crisis in the income values as accurately as possible in consideration of the volatility on the markets, the capitalisation interest rate was calculated as follows:
The capitalisation interest rate is listed below for all CGUs – compared to the previous year the interest rates are generally lower:
| Cash-Generating Unit |
Discount factor | Discount factor perpetuity | ||
|---|---|---|---|---|
| Property and casualty |
Life & Health | Property and casualty |
Life & Health | |
| Albania | 12.9% | 15.8% | 10.4% | 12.9% |
| Bosnia Herzegovina |
12.9% | 15.8% | 10.4% | 12.9% |
| Bulgaria | 8.9% | 10.6% | 7.4% | 9.0% |
| Germany | 6.8% | 7.8% | 5.8% | 6.8% |
| Italy | 8.0% | 9.4% | 6.9% | 8.2% |
| Kosovo | 11.1% | 13.4% | 8.3% | 10.1% |
| Croatia | 9.6% | 11.5% | 7.7% | 9.3% |
| Liechtenstein | 6.8% | 7.8% | 5.8% | 6.8% |
| Macedonia | 11.1% | 13.4% | 8.3% | 10.1% |
| Montenegro | 11.1% | 13.4% | 8.3% | 10.1% |
| Austria | 6.8% | 7.8% | 5.8% | 6.8% |
| Poland | 8.5% | 10.0% | 7.1% | 8.5% |
| Romania | 11.0% | 13.3% | 7.9% | 9.6% |
| Russia | 8.9% | 10.6% | 7.4% | 9.0% |
| Switzerland | 6.8% | 7.8% | 5.8% | 6.8% |
| Serbia | 12.8% | 15.7% | 9.7% | 12.0% |
| Slovakia | 8.0% | 9.4% | 6.9% | 8.2% |
| Czech Republic | 8.2% | 9.6% | 6.9% | 8.2% |
| Ukraine | 12.9% | 15.8% | 10.4% | 12.9% |
| Hungary | 9.6% | 11.5% | 7.7% | 9.3% |
Source: Damodaran and derived factors
The detailed company planning generally encompasses a period of five years. The company plans used for the calculation are the result of a structured and standardised management dialogue between the UNIQA headquarters in Vienna and the operational units in combination with the reporting and documentation process integrated into this dialogue.
The phases of the earning power model with no operational or strategic planning were extended to a seven-year period in order to avoid giving too much weight and influence to the perpetuity.
The cash flows determined at the end of phase 2 were used as the basis for the perpetuity and therefore correspond to results that can be realistically achieved and sustained over the long term.
The earning power of the individual CGUs is determined by a weighted probability scenario. Three scenarios were calculated, whereby scenario 1 depicts the base case according to the current and strategic planning, scenario 2 the best case for expected market and company development and scenario 3 the worst case.
Scenarios 1 and 2 assume that the credit spreads as of 2014 will return to an average level as before the crisis and that a rating improvement will take place after two years and then once after five years. Scenarios 1 and 2 assume that by 2014 the credit spreads will have returned to an average level as before the crisis and that a rating improvement will take place after two years and then once again after five years. The cash value of the perpetuity was calculated in scenario 1 with a growth deduction of 1% and in scenario 2 with a growth deduction of 2%.It is assumed in the third scenario that the credit spreads also remain at the same level in the future and no rating improvement takes place relative to the current situation. A growth deduction of 1.5% was also applied here in the perpetuity in order to appropriately counteract the decline in growth in the purely negatively oriented scenario.
The company value was calculated individually based on the discounting of the cash flow forecasts and the individual weighting of the probability of occurrence of the various scenarios based on the business development of the individual CGUs.
Various studies and statistical analyses were used as sources to provide a basis for determining the growth rates in order to consistently and realistically reflect the market situation and macroeconomic development.
Sensitivity analyses with regard to the capitalisation interest rate and the main value drivers are performed in order to verify the results of the calculation and estimation of the realisable value.
These analyses show that sustained surpluses on the part of the individual CGUs are highly dependent on the actual development of these assumptions within the individual national economies (GDP, insurance density, purchasing power parities, particularly in the CEE markets), as well as the associated implementation of the individual profit goals. These forecasts and the related assessment of how the situation in the markets will develop in the future, under the influence of the continuing financial crisis in individual markets, are the largest uncertainties in connection with measurement results.
All the budgeted profit was calculated with the exchange rates as at 31 December 2010.
For the event that the intensity and duration of the recovery from the economic crisis turns out to be much slower than assumed in the business plans and fundamental forecasts, unscheduled depreciations may result for the individual CGUs. At this time, the current developments and the cautiously, slowly growing improvement estimates of the individual CGUs and the markets give no cause for applying unscheduled depreciations. Very tight coverage is currently being achieved in Bulgaria, Romania, Croatia and Albania. Corresponding measures for stabilisation and to promote the required upward trend in company development have already been initiated by the Group.
The table below shows the historical GDP development in the relevant markets since 2008. Viewed in conjunction with this forecast for 2010 and the subsequent years, these figures give reason to expect a sustained upward trend again in the CEE markets and make the crisis of 2008 and 2009 appear as a real but only temporary slowdown to economic growth. As such, no loss of these core markets for UNIQA is expected over the long term.
| 2008 | 2009 | 2010e | 2011f | 2012f | |
|---|---|---|---|---|---|
| Poland | |||||
| GDP (% in annual comparison) | 5.1 | 1.7 | 3.6 | 3.9 | 4.5 |
| Hungary | |||||
| GDP (% in annual comparison) | 0.6 | –6.7 | 1.0 | 2.5 | 4.0 |
| Czech Republic | |||||
| GDP (% in annual comparison) | 2.3 | –4.0 | 2.2 | 1.5 | 2.3 |
| Slovakia | |||||
| GDP (% in annual comparison) | 5.8 | –4.8 | 4.2 | 4.0 | 4.5 |
| Slovenia | |||||
| GDP (% in annual comparison) | 3.7 | –8.1 | 0.9 | 2.0 | 2.5 |
| Croatia | |||||
| GDP (% in annual comparison) | 2.4 | –5.8 | –1.5 | 1.5 | 2.0 |
| Bosnia-Herzegovina | |||||
| GDP (% in annual comparison) | 5.7 | –2.9 | 0.5 | 2.0 | 4.5 |
| Serbia | |||||
| GDP (% in annual comparison) | 5.5 | –3.0 | 1.5 | 2.5 | 3.0 |
| Bulgaria | |||||
| GDP (% in annual comparison) | 6.2 | –4.9 | –0.2 | 2.7 | 4.5 |
| Romania | |||||
| GDP (% in annual comparison) | 7.3 | –7.1 | –1.9 | 1.5 | 3.5 |
| Ukraine | |||||
| GDP (% in annual comparison) | 2.3 | –15.1 | 5.0 | 4.5 | 5.0 |
| Albania | |||||
| GDP (% in annual comparison) | 7.8 | 3.3 | 2.6 | 3.3 | 5.0 |
| Russia | |||||
| GDP (% in annual comparison) | 5.2 | –7.9 | 3.7 | 3.5 | 4.0 |
Source: Raiffeisen Research January 2011.
The expected global development graph of the CEE-17 countries also exhibits a positive prospective future trend in comparison with the USA and the EU.
In consideration of the data and statistical sources on which these calculations were based and trend scenarios such as GDP forecasts per CGU, insurance density development per CGU and significantly lower interest rates, no situations of insufficient coverage were identified in 2010 within the impairment test.
The general economic situation as well as the developments of the national economies continue to call for constant observation and the implementation of measures to achieve a balanced mix of stability, growth and profitability. With its ongoing profit improvement programme and with the sales focus on the profitable retail business in Eastern Europe, UNIQA took the necessary steps for accomplishing this even before the crisis years.
The purchase price allocation of the acquisition price for the subgroup of SIGAL Holding Sh.A. according to IFRS 3 was not yet completed at the time this Group annual report was written in 2009; in 2010 a purchase price adjustment of € –1,292,000 was made.
As a general rule, shares in associated companies are 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 supplies 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 supplies and services within the Group are set off against the corresponding expenditures.
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 notes to the consolidated financial statements. Rounding differences may result from the formatting to euro thousands.
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 euro are converted at the rate on the balance sheet closing date according to the following guidelines:
Resulting exchange rate differences are set off against the shareholders' equity without affecting income.
The most important exchange rates are summarised in the following table:
| Euro rates on balance sheet closing date | 31.12.2010 | 31.12.2009 |
|---|---|---|
| Swiss franc CHF | 1.2504 | 1.4836 |
| Czech koruna CZK | 25.0610 | 26.4730 |
| Hungarian forint HUF | 277.9500 | 270.4200 |
| Croatian kuna HRK | 7.3830 | 7.3000 |
| Polish złoty PLN | 3.9750 | 4.1045 |
| Bosnia-Herzegovina convertible mark BAM | 1.9592 | 1.9533 |
| Romanian leu (new) RON | 4.2620 | 4.2360 |
| Bulgarian lev (new) BGN | 1.9558 | 1.9558 |
| Ukrainian hrywnja UAH | 10.4950 | 11.5281 |
| Serbian dinar RSD | 106.1300 | 96.2300 |
| Russian ruble RUB | 40.8200 | 43.1540 |
| Albanian Lek ALL | 139.1900 | 137.6894 |
| Macedonian denar MKD | 62.6973 | 61.0103 |
For creation of the Group consolidated financial statements according to IFRS, it is necessary to make assumptions for the future within various items. These estimates can have a considerable influence on the valuation of assets and debts on the balance sheet closing date as well as the amount of expenses and income in the financial year. The items below carry a not insignificant level of risk that considerable adjustments to asset or debt values may be necessary in the following year:
The annual financial statements of the companies in Austria and abroad included in the consolidated financial statements were predominantly prepared up to the reporting date of UNIQA Versicherungen AG, i.e. 31 December. For recording in the consolidated financial statements, the annual financial statements of UNIQA Versicherungen AG and its included subsidiaries are unified to conform to the accounting and valuation principles of IFRS/IAS and, as far as actuarial provisions, acquisition costs and actuarial expenses and income are concerned, according to the provisions of US GAAP.
Securities transactions are recorded using the settlement date. As a rule, the fair values are derived from an active market.
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.
Capitalised 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 capitalised 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 two to five 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. Ownerused land and buildings are shown at book value (IAS 16). The scheduled depreciation term generally corresponds to the useful life, up to a maximum of 80 years. Real estate is depreciated on a straight-line basis over time.
The list of fair values can be found in the notes under no. 1 and 3.
To the extent that the annual financial statements of affiliated and associated companies are not consolidated for being of minor significance and/or included at equity, these companies are valued as available for sale in accordance with IAS 39.
With the exception of securities held to maturity, mortgage loans and other loans, the investments are listed at the current fair value, which is established by determining a market value or stock market price. In the case of investments for which no market value can be determined, the fair value is determined through internal valuation models, external reports or on the basis of estimates of what amounts could be achieved under the current market conditions in event of proper liquidation.
These are recognised as amortised costs in the balance sheet. This means that the difference between the acquisition costs and the repayment amount changes the book value with an effect on income in proportion to time and/or equity. The items included under other loans are recognised at their nominal amount less any redemptions made in the interim.
These are recognised in the financial statements at their fair value on the reporting date. Differences between the fair value and historical acquisition costs are dealt with under equity with a neutral effect on income, after deduction of the provisions for latent profit sharing in life insurance and deferred taxes. Depreciation that affects income (impairment) is undertaken only where we anticipate a lasting fall in value. This uses the fluctuations in fair value over the last nine months as well as the absolute difference between acquisition costs and the fair value on the reporting date as the basis for assessing a necessary impairment. For variable yield securities we assume a sustained impairment when the highest quoted price within the last nine months lies below the acquisition cost or the difference between the cost of acquisition and the market value is greater than 20%. These same selection criteria are also applied for fixed interest securities in order to perform a precise credit-related evaluation of a sustained impairment per security for the items in question. In addition, foreign exchange differentials resulting from fixed-income securities are recognised with an effect on income. Foreign exchange differentials resulting from variable yield securities are recognised as equity with no effect on income to the extent that these are not securities which are written off as the result of 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.
The current market value of assets traded on the active markets is determined with respect to the listed market prices (includes government bonds, corporate bonds, listed shares).
The current market value of other financial assets (excluding derivative instruments) is determined in accordance with generally accepted valuation models, based on discounted cash flow analyses and using prices of observable current market transactions and trader listings for similar instruments.
The current market value of derivative instruments is calculated using listed prices. If such prices are not available, discounted cash flow analyses are performed with application of the corresponding interest yield curves for the term of the instruments in the case of derivatives without optional components as well as option price models in the case of derivatives with optional components. Currency futures are valued based on listed forward rates and interest yield curves that are derived from listed market interest rates in consideration of the contact maturity dates. Interest swaps are valued with the cash value of the estimated future payment flows. The discounting took place using the pertinent interest yield curves, which were derived from listed interest rates.
These are recognised at 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 side of the balance sheet, taking the reinsurance contracts into consideration.
These are recognised at their nominal value, taking into account redemptions made and reasonable value adjustments.
These 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 life (up to a maximum of ten years).
Equity
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.
The amount of the actuarial gains and losses from the provisions for pensions and similar obligations will be reported in the shareholders' equity, after deducting deferred taxes and deferred profit participation and without affecting income under the item actuarial gains and losses from defined retirement benefit.
The portfolio of own 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 accident, life and health insurance lines. Their recognition value on the balance sheet is determined according to actuarial principles on the basis of the present value of future benefits to be paid by the insurer less the present value of future net premiums the insurer expects to receive. The actuarial provision of the life insurer is calculated by taking into account prudent and contractually agreed bases of calculation.
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 policies held on account and at risk of policyholders".
The actuarial provisions for health insurance are determined on a calculation basis of "best estimate", taking into account safety margins. Once the calculation bases have been determined, these have to be applied to the corresponding partial portfolio for the whole term (locked-in principle).
The provision for outstanding claims in property insurance consists of the future payment obligations determined by realistic estimation using recognised statistical methods taking into account current or expected volumes, 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. These valuation differences can also give rise to net positive items, which are also listed here.
This item primarily 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-orientated old age provision systems of the UNIQA Group, pension provisions are calculated in accordance with IAS 19 using the projected unit credit method. Future obligations are spread over the whole employment duration of the employees. All actuarial gains and losses due to changed parameters were so far 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.
To increase transparency in the reporting process, the UNIQA Group has decided to exercise the right stipulated in IAS 19.93A ff concerning balancing the accounts of pension and severance reserves, and to implement this change as of 31 December 2010. From now on, the amount of the actuarial gains and losses will therefore be reported as shareholders' equity, after deducting deferred taxes and deferred profit participation and without affecting income.
The amount of other provisions is determined by the extent to which the provisions will probably be made use of. Payables and other liabilities are shown at the amount to be repaid.
Deferred tax assets and liabilities are to be created according to IAS 12 for temporary differences arising from the comparison of a stated asset or an obligation using the respective taxable value. This results in probable tax burdens affecting future cash-flow. These are to be accounted for independently of the date of their release. Moreover, according to IAS, deferred taxes for accumulated losses brought forward and not yet used are to be capitalised to the extent that they can be used in the future with adequate probability.
In principle, the carrying amounts of assets on the balance sheet are checked at least once a year with regard to possible impairment. Securities with an expected lasting and/or significant 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 and index-linked life insurance, only those parts calculated to cover the risk and costs are allocated as premiums.
(direct business and partly accepted reinsurance business)
In the case of sustained impairment, the entire goodwill is written off 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 Commercial 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 Commercial Code, they are mostly also influenced by tax regulations.
Affiliated and associated companies that are not consolidated fully or at equity due to their minor significance are recognised at fair value.
As a general rule, participating interests are valued at equity insofar as the company has the opportunity to exercise considerable influence. This is assumed, as a matter of principle, for shares between 20% and 50%. The actual exercising of considerable influence has no bearing on these figures.
According to IAS 39, a different classification system is applicable to financial assets. It classifies other securities into the following categories: held to maturity, available for sale, fair value through profit or loss (FVTPL) and trading portfolio (derivative financial instruments). The main valuation difference that applies to the other securities available for sale, which account for the majority of financial assets, as well as the other securities recorded with effect on income is that these are stated at fair value on the balance sheet date. According to the Austrian Commercial Code, the acquisition costs constitute the maximum valuation limit.
With regard to the other securities available for sale, the difference between book value and fair value is treated within the shareholders' 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 statements according to the Austrian Business Code, depreciation always affects income even in the case of a temporary reduction in value and appreciation 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 Commercial Code.
The shares of reinsurers in actuarial provisions are shown on the assets side 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 refund. 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 provisions 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 Commercial Code. These are listed in detail in IAS 19. Overall, the individual differences result in greater detail than under the Austrian Commercial Code. This is most notably the result of the stronger weighting of future salary increases and the use of the project-unit-credit method, anticipating future demographic and economic developments.
Deferred tax assets and liabilities are to be created according to IAS 12 for temporary differences arising from the comparison of a stated asset or an obligation using the respective taxable value. This results in 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
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 additional 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 business.
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 of the UNIQA Group in Austria. All Group companies in which UNIQA has a participating interest of more than 50% have been integrated into this risk management process since the end of 2007.
The risk management process of the UNIQA Group is centrally controlled.
Each subsidiary has a responsible risk manager who operates the risk management process and reports to the Group risk management team.
The company's risk situation in terms of market risks, technical risks and operational risks is evaluated and reported on in the half-yearly report. Measures to minimise risks are developed on this basis of the report.
The Group's actuarial office/risk management team consolidates the results of the half-yearly risk assessment in a Group Risk Report, which is made available to the Group management for the purpose of controlling risk.
The UNIQA Group places particular emphasis on the topic of risk management and is preparing the Group for Solvency II. Within the framework of these activities, the Group takes part in all quantitative impact studies. The results of the already performed quantitative impact studies enter into the corresponding projects that prepare the Group for Solvency II.
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.
taxation is only permissible as a result of a temporary difference between the commercial balance sheet profit and the income calculated according to the tax regulations.
Moreover, according to IAS, deferred taxes for accumulated losses brought forward and not yet used are to be capitalised to the extent that they can be used in the future with adequate probability.
| Premiums earned (gross) | € 000 |
|---|---|
| 2010 | 5,343,587 |
| 2009 | 4,994,207 |
| 2008 | 4,901,214 |
| 2007 | 4,432,436 |
| 2006 | 4,444,802 |
| 2005 | 4,299,227 |
| 2004 | 3,560,558 |
| 2003 | 2,967,476 |
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.
A great deal of attention is paid to the profitability of the insurance portfolio. In order to ensure this, the product premiums are appropriately calculated and the profitability is continuously evaluated throughout the entire Group with the help of monitoring systems. In this regard, the discounts offered outside of normal rates are adapted to the risk situation in the segments of household/home, legal expenses protection, casualty, motor vehicle liability and motor vehicle comprehensive.
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, 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) | % |
|---|---|
| 2010 | 68.8% |
| 2009 | 69.9% |
| 2008 | 61.6% |
| 2007 | 68.1% |
| 2006 | 64.3% |
| 2005 | 66.7% |
| 2004 | 64.1% |
| 2003 | 68.9% |
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 contracts also considerably reduce the level at which any losses occur. 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 program 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 and of UNIQA Versicherungen AG is covered with Group internal reinsurance policies at UNIQA Re AG.
Within these internal reinsurance policies ratio figures, which reach from 25% and 90% depending upon the volatility of the respective insurance branch, 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.).
UNIQA Re AG pools the business acquired by the Group companies according to insurance segments and passes gross excess loss policies, which are supplemented by net ratios, on to international reinsurers as a "bouquet".
The effect of the reinsurance programme on the claim ratio in retained earnings can be seen in the following table:
| Claims ratio (retained earnings) | % |
|---|---|
| 2010 | 71.5% |
| 2009 | 68.0% |
| 2008 | 64.2% |
| 2007 | 67.6% |
| 2006 | 66.0% |
| 2005 | 68.0% |
| 2004 | 65.6% |
| 2003 | 69.8% |
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 from the property insurance lines to companies outside the Group. The cessions of the international Group subsidiaries are not included.
| Rating | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| AAA | 0 | 0 |
| AA | 92,350 | 72,653 |
| A | 58,343 | 122,485 |
| BBB | 13 | 23 |
| Not rated | 6,190 | 6,747 |
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.
Systematic analyses, supported by actuarial methods, are used to assess the appropriateness of the actuarial provisions.
The Group's central actuarial office supports the operational domestic and foreign UNIQA companies on a quarterly basis with the introduction of adequate processes and by checking the results of the analyses.
In addition to the elemental lines, the commercial property business also includes liability and technical insurance. In the UNIQA Group, this is divided into three areas:
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 risks with high hazards 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 Group-wide for their exposure and composition (risk mix), and survey reports on the exposed risks are prepared.
The most important decisions are made here on a central basis in coordination with the experts at the Group headquarters (International Desk).
The risk of an individual insurance contract lies in the occurrence of the insured event. The occurrence is considered random and therefore unpredictable. The risk in life insurance outside of Austria is of minor importance due to the low volume (approx. 20%). Various risks exist in Austria, particularly in classic life insurance. The insurance company takes on this risk for a corresponding premium paid by the policyholder. When calculating the premium, the actuary refers to the following carefully selected bases of calculation:
Carefully selecting the bases of calculation gives rise to scheduled profits, an appropriate amount of which is credited to the policyholders as part of profit sharing.
The calculation of the premium is also based on the acceptance of a large, homogenous inventory of independent risks, so that the randomness inherent in an individual insurance policy is balanced out by the law of large numbers.
The following risks exist for a life insurance company:
The risks of the insurer can be roughly divided into actuarial and financial risks.
UNIQA's portfolio consists primarily of long-term insurance policies. Short-term assurances payable at death play a minor role.
In the following table, the number of insurance policies is divided by rate groups and insured sum categories; included here are the policies of the companies UNIQA Personenversicherung, Raiffeisen Versicherung, Salzburger Landes-Versicherung and CALL DIRECT Versicherung AG.
| Number of insurance policies as at 31 Dec. 2010 Category1) |
Capital insurance |
Retirement annuity deferred |
Retirement annuity in payment |
Risk insurance |
|---|---|---|---|---|
| € 0 to € 20,000 | 767,070 | 84,657 | 7,548 | 139,658 |
| € 20,000 to € 40,000 | 173,036 | 31,235 | 3,359 | 37,493 |
| € 40,000 to € 100,000 | 72,468 | 18,070 | 2,474 | 125,609 |
| € 100,000 to € 200,000 | 8,598 | 4,347 | 761 | 67,935 |
| More than € 200,000 | 2,032 | 1,528 | 272 | 9,113 |
1) For capital assurance and risk insurance, the insurance total is used as basis; for deferred retirement annuities, the redemption capital at the start of the pension payment phase is used. For liquid pension annuities, the category refers to ten times the annuity.
Insurance policies with an assurance character implicitly include a safety surcharge on the risk premium in that the premium calculation is based on an accounting table (the Austrian Mortality Table for 1990/92 and for 2000/02 respectively).
Using risk selection (health examinations) means that the mortality probabilities of the portfolio are consistently smaller than those of the overall population; in addition, the gradual advancement of mortality means that the real mortality probabilities are consistently smaller than the values shown in the accounting table.
An insurance company takes great pains to compose a portfolio of the most homogenous, independent risks possible, in accordance with the classic, deterministic approach to calculating premiums. Because this is virtually impossible in practice, a considerable risk arises for the insurer due to random fluctuations, in particular from the outbreak of epidemic illnesses, as not only could the calculated mortality probabilities prove to be too low, the independence of the risks can also no longer be assumed.
Cumulative risks contained in the portfolio can be reduced by using reinsurance contracts. As the first reinsurer, UNIQA Holding operates with a retained risk of €200,000 per insured life; the excesses are mostly reinsured with Swiss Re, Munich Re and Gen Re. A catastrophic excess (CAT-XL) contract is also held with Swiss Re, although it excludes losses resulting from epidemics.
The portfolios of Raiffeisen Versicherung AG and UNIQA Personenversicherung AG contain large inventories of risk insurance policies with a premium adjustment clause. This allows the insurer to raise the premiums in case of a (less probable) worsening of the mortality behaviour. However, this presents the danger of possible antiselection behaviour, meaning that policies for good risks tend to be terminated while worse ones remain in the portfolio.
The reduction of mortality probabilities represents a large uncertainty for retirement annuities. The gradual advancement of mortality as a result of medical progress and changed lifestyles is virtually impossible to extrapolate.
Attempts to predict this effect were made when producing the generation tables. However, such tables only exist for the Austrian population, and this data cannot be applied to other countries. Moreover, the past shows that the effect of these changes was seriously underestimated 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 who feel very healthy choose the annuity payment; all others choose partial or full capital payment. In this way, the pension portfolio tends to consist of mostly healthier people, i.e. worse risks than the population average.
This phenomenon is countered by corresponding modifications to the retirement mortality tables. A further possibility exists in the requirement that the intention to exercise the right to choose annuity payments must be announced no later than one year in advance of the expiration.
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 2.71% (2009: 2.75%).
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 (bonds, loans 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 are extremely long-term policies.
The interest risk functions in the following ways:
Premiums received in the future must be invested at an interest rate guaranteed at the time the policy was taken out. However, it is entirely possible that no corresponding titles are available at the time the premium is received. In the same way, future income must be reinvested at the actuarial interest rate.
For practical reasons, the goal of duration matching cannot be fully achieved on the assets and liability side. The duration of the assets is 5.1 years (2009: 4.9), while for liabilities it is considerably longer. This creates a duration gap, which means that the ratio of assets to liabilities reduces as interest rates fall.
Life insurance policies contain implicit options that can be exercised by the policyholder. While the possibilities of partial or full buy-back or the partial or full release of premiums in fact represent financing options, these options are not necessarily exercised as a consequence of correct, financially rational decisions. However, in the case of a mass buy-back, 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 insured sum including profit-sharing) in accordance with a mortality table (the risk involved is not exclusively financial) and an interest rate set at the time the policy is taken out.
Besides these actuarial and financial risks, the cost risk must also be specified. The insurer guarantees that it will deduct only the calculated costs for the entire term of the policy. The business risk here is that the cost premiums are insufficient (e.g. due to cost increases resulting from inflation).
The health insurance business is operated primarily in Austria (82% domestic and 18% international). As a result, the focus lies on risk management in Austria.
Health insurance is a loss insurance which is calculated under consideration of biometric risks and is operated in Austria "depending on the type of life insurance". Terminations by the insurer are not possible except in the case of obligation violations by the insured. Premiums must therefore be calculated in such a way that the premiums are sufficient to cover the insurance benefits that generally increase with age, assuming probabilities that remain constant. The probabilities and cost structures can change frequently over time. For this reason, it is possible to adjust the premiums for health insurance as necessary to the changed bases of calculation.
When taking on risks, the existing risk of the individual is also evaluated. If it is established that an illness already exists for which the cost risk is expected to be higher than for the calculated portfolio, then either this illness is excluded from the policy, an adequate risk surcharge is demanded or the risk is not underwritten.
In health insurance, assurance cover ("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, for instance, 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). These 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 that sharply reduce the income opportunities. Developments in this area will be observed by the insurance association, and an attempt will be made where necessary to react to negative developments from the perspective of the private health insurer.
The EU Directive on the equal treatment of men and women in insurance, which is implemented in Austria by the Insurance Amendment Act 2006 (VersRÄG 2006), was also taken into account in the calculation of premiums in the last quarter of 2007. As the differences between men and women can be proven, only the childbirth costs had to be shared between men and women; these costs were explicitly defined in the EU Directive and VersRÄG as an exception to the riskbased calculation. No negative effects have been observed on business results to date.
The risk of the health insurance business outside Austria is dominated primarily by Mannheimer Krankenversicherung (approx. €123.7 million in annual premiums) as well as UNIQA Assicurazioni in Milan (approx. €31.4 million in annual premiums). The remaining premiums (approx. €23.8 million) are divided among multiple companies and are of only minor importance there. Life-long health insurance policies without termination options by the insurer rarely exist outside of Austria, meaning that the risk can be considered low for this reason as well.
The greatest risk for Mannheimer Krankenversicherung is a result of the legal situation in Germany. Due to the future inclusion of ageing provisions in some cases, there could be a danger that good risks might leave Mannheimer Krankenversicherung. However, it should be possible to avert the majority of this risk through rate adjustments.
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:
Model risks also exist with regard to the valuation of ABS securities ("Asset-Backed Securities") and the valuation of the participating interest in STRABAG SE; these are presented as an excursus to the risk report.
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 main accounting groups generated by the various product categories.
| Investments | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Long-term life insurance policies with guaranteed interest and profit sharing |
14,444,730 | 13,937,185 |
| Long-term unit-linked and index-linked life insurance | ||
| policies | 4,192,730 | 3,473,553 |
| Long-term health insurance policies | 2,784,528 | 2,605,618 |
| Short-term property and casualty insurance policies | 3,356,743 | 3,422,140 |
| Total | 24,778,730 | 23,438,496 |
These values refer to the following balance sheet items:
A.I. Self-used land and buildings
| Technical provisions and liabilities (retained) | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Long-term life insurance policies with guaranteed interest and profit sharing |
14,141,590 | 13,893,689 |
| Long-term unit-linked and index-linked life insurance policies |
4,142,636 | 3,416,231 |
| Long-term health insurance policies | 2,785,246 | 2,620,930 |
| Short-term property and casualty insurance policies | 2,538,406 | 2,370,291 |
| Total | 23,607,879 | 22,301,142 |
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 | |||
|---|---|---|---|---|---|---|
| % | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 |
| Fixed interest securities | ||||||
| High-grade bonds | 3.89 | 4.23 | 3.90 | 3.92 | 5.18 | 5.64 |
| Bank/company bonds | 3.91 | 3.82 | 5.26 | 8.63 | 4.13 | 4.36 |
| Emerging markets bonds | 5.71 | 5.97 | 9.67 | 12.88 | 10.06 | 9.70 |
| High-yield bonds | 7.63 | 8.27 | 10.07 | 11.29 | 5.44 | 4.30 |
| Other investments | 3.48 | 4.44 | 0.00 | 0.00 | 0.00 | 1.63 |
| Fixed interest liabilities | ||||||
| Subordinated liabilities | 5.34 | 5.34 | ||||
| Guaranteed interest life insurance | 2.71 | 2.75 |
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. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Annuities | 9,440,828 | 8,220,882 |
| Shares | 642,456 | 392,346 |
| Alternatives | 708,594 | 674,353 |
| Holdings | 411,382 | 680,592 |
| Loans | 1,267,004 | 1,728,081 |
| Real estate | 1,107,667 | 946,261 |
| Liquidity | 743,515 | 1,172,910 |
| Deposits receivable | 123,284 | 121,760 |
| Total | 14,444,730 | 13,937,185 |
| Difference between book value and market value | ||
| Real estate | 264,055 | 361,773 |
| Loans | –27,812 | 38,695 |
| Provisions and liabilities from long-term life insurance policies with guaranteed interest and profit sharing |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Actuarial provision | 13,459,346 | 13,193,063 |
| Provision for profit-unrelated premium refunds | 1,869 | 226 |
| Provision for profit-related premium refunds, i.e. policyholder profit sharing |
112,060 | 146,659 |
| Other technical provisions | 23,806 | 23,451 |
| Provision for outstanding claims | 108,309 | 92,365 |
| Deposits payable | 436,200 | 437,925 |
| Total | 14,141,590 | 13,893,689 |
The following table shows the structure of the remaining terms of interest bearing securities and loans.
| Remaining term | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Up to 1 year | 810,676 | 660,875 |
| Of more than 1 year up to 3 years | 1,052,770 | 1,125,700 |
| Of more than 3 years up to 5 years | 1,792,639 | 1,069,452 |
| Of more than 5 years up to 7 years | 2,192,915 | 1,672,212 |
| Of more than 7 years up to 10 years | 2,208,519 | 1,889,945 |
| Of more than 10 years up to 15 years | 1,361,612 | 1,644,980 |
| More than 15 years | 1,288,702 | 1,696,312 |
| Total | 10,707,832 | 9,759,476 |
The capital-weighted average remaining term of technical liabilities is around 8.0 years (2009: 7.9 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 indexlinked life insurance policies.
| Investments in unit-linked and index-linked life insurance policies |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Share-based funds | 988,689 | 805,713 |
| Bond funds | 3,044,113 | 2,536,917 |
| Liquidity | 81,107 | 86,935 |
| Other investments | 78,821 | 43,987 |
| Total | 4,192,730 | 3,473,553 |
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 any lower capital income that may be expected. The following table shows the investment structure available to cover insurance liabilities.
| Investments for long-term health insurance policies | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Annuities | 1,238,629 | 1,203,938 |
| Shares | 53,963 | 58,105 |
| Alternatives | 93,450 | 64,839 |
| Holdings | 199,705 | 8,666 |
| Loans | 710,918 | 693,555 |
| Real estate | 318,529 | 301,341 |
| Liquidity | 169,333 | 275,175 |
| Total | 2,784,528 | 2,605,618 |
| Difference between book value and market value | ||
| Real estate | 144,441 | 116,426 |
| Loans | 3,828 | –54,466 |
| Provisions and liabilities from long-term health insurance policies |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Actuarial provision | 2,533,728 | 2,373,869 |
| Provision for profit-unrelated premium refunds | 16,578 | 20,252 |
| Provision for profit-related premium refunds, i.e. policyholder profit sharing |
44,876 | 42,224 |
| Other technical provisions | 548 | 596 |
| Provision for unearned premiums | 15,914 | 15,629 |
| Provision for outstanding claims | 172,279 | 166,913 |
| Deposits payable | 1,323 | 1,447 |
| Total | 2,785,246 | 2,620,930 |
Most property and casualty insurance policies are short-term. The technical provisions are not discounted, meaning that no interest is calculated for the short-term investment. The average terms of interest bearing securities and loans invested to cover technical provisions are shown in the following table.
| Remaining term | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Up to 1 year | 102,103 | 169,807 |
| Of more than 1 year up to 3 years | 182,759 | 232,867 |
| Of more than 3 years up to 5 years | 325,941 | 270,080 |
| Of more than 5 years up to 7 years | 358,017 | 273,275 |
| Of more than 7 years up to 10 years | 570,630 | 507,728 |
| Of more than 10 years up to 15 years | 186,249 | 293,120 |
| More than 15 years | 223,849 | 335,114 |
| Total | 1,949,547 | 2,081,993 |
The investment structure in the property and casualty insurance is as follows.
| Investments for short-term property and casualty insurance policies |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Annuities | 1,606,661 | 1,451,018 |
| Shares | 221,229 | 140,508 |
| Alternatives | 62,332 | 64,162 |
| Holdings | 120,430 | 215,805 |
| Loans | 464,308 | 521,471 |
| Real estate | 384,524 | 463,290 |
| Liquidity | 483,748 | 551,497 |
| Deposits receivable | 13,510 | 14,389 |
| Total | 3,356,743 | 3,422,140 |
| Difference between book value and market value | ||
| Real estate | 332,259 | 197,569 |
| Loans | 3,110 | –35,805 |
| Provisions and liabilities from short-term property and casualty insurance policies |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Provision for unearned premiums | 558,153 | 516,599 |
| Actuarial provision | 37,959 | 39,837 |
| Provision for outstanding claims | 1,871,810 | 1,746,904 |
| Provision for profit-unrelated premium refunds | 30,991 | 27,011 |
| Provision for profit-related premium refunds, i.e. policyholder profit sharing |
7,760 | 7,682 |
| Other technical provisions | 20,032 | 19,980 |
| Deposits payable | 11,701 | 12,278 |
| Total | 2,538,406 | 2,370,291 |
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, benchmark-oriented or value growth approach, fundamental or industry-/region-specific 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. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Shares in Europe | 438,554 | 268,481 |
| Shares in America | 48,112 | 11,275 |
| Shares in Asia | 26,802 | 6,049 |
| Shares international1) | 4,932 | 623 |
| Shares in emerging markets | 32,149 | 10,805 |
| Shares total return2) | 158,228 | 156,531 |
| Other shares | 208,872 | 199,247 |
| Total | 917,648 | 653,010 |
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.
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. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| AAA | 3,317,270 | 3,037,727 |
| AA | 3,062,155 | 3,490,318 |
| A | 2,979,241 | 3,351,431 |
| BBB | 2,655,684 | 1,834,494 |
| BB | 874,895 | 437,410 |
| B | 577,764 | 352,635 |
| CCC | 168,868 | 127,070 |
| Not rated | 30,047 | 50,534 |
| Total | 13,665,924 | 12,681,619 |
The values as at 31 December 2010 also include the securities reclassified to the category of loans in the 3rd quarter of 2008 with a value of €1,379,806,000 (2009: €1,796,941,000).
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. 2010 € 000 |
€ | USD | Other | Total |
|---|---|---|---|---|
| Assets | ||||
| Investments | 22,304,607 | 466,618 | 2,007,505 | 24,778,730 |
| Other tangible assets | 116,976 | 21,681 | 138,657 | |
| Intangible assets | 1,401,567 | 107,881 | 1,509,448 | |
| Share of reinsurance in the technical provisions |
1,029,126 | 79,892 | 1,109,018 | |
| Other assets | 889,829 | 269,519 | 1,159,348 | |
| Total | 25,742,104 | 466,618 | 2,486,478 | 28,695,200 |
| Provisions and liabilities | ||||
| Subordinated liabilities | 575,000 | 0 | 575,000 | |
| Technical provisions | 22,241,444 | 1,629,686 | 23,871,130 | |
| Other provisions | 701,989 | 23,536 | 725,526 | |
| Liabilities | 1,845,157 | 141,747 | 1,986,904 |
Total 25,363,590 0 1,794,969 27,158,559
| 31 Dec. 2009 € 000 |
€ | USD | Other | Total |
|---|---|---|---|---|
| Assets | ||||
| Investments | 21,400,489 | 336,507 | 1,701,499 | 23,438,496 |
| Other tangible assets | 112,148 | 20,299 | 132,447 | |
| Intangible assets | 1,413,610 | 102,850 | 1,516,459 | |
| Share of reinsurance in the technical provisions |
1,040,996 | 107,793 | 1,148,788 | |
| Other assets | 892,315 | 264,229 | 1,156,544 | |
| Total | 24,859,557 | 336,507 | 2,196,670 | 27,392,735 |
| Provisions and liabilities | ||||
| Subordinated liabilities | 575,000 | 0 | 575,000 | |
| Technical provisions | 21,230,666 | 1,385,275 | 22,615,941 | |
| Other provisions | 629,390 | 29,773 | 659,164 | |
| Liabilities | 1,811,277 | 166,570 | 1,977,848 | |
| Total | 24,246,334 | 0 | 1,581,618 | 25,827,952 |
The fair value of securities investments in USD amounted to € 1,625 million as at 31 December 2010 (2009: € 1,344 million). The exchange rate risk was reduced using derivative financial instruments to € 467 million (2009: € 337 million), while the safeguard ratio was 71.0% (2009: 75.0%). The safeguard was maintained in a range of between 56% and 81% during the financial year (2009: 67% and 96%).
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 exchanges and can be sold quickly in the case of liquidity burdens. When choosing the remaining maturities stipulated by contract for investing variable-interest securities (cf. notes no. 9), the existing remaining contractual maturities (cf. 2.1 interest rate risk) are taken into consideration in the various business segments.
Additional underwriting obligations exist for private equity investments in the amount of €102 million (2009: €168 million).
The risk management for investments is done in a structured investment process in which the various market risks are controlled at the level of the strategic asset allocation with tactical weighting of the individual asset classes based on market opinion and in the form of timing and selection decisions. In particular, stress tests and sensitivity analyses are used as key figures for measuring, observing and actively controlling the risk.
The table below shows the most important market risks in the form of key sensitivity figures; the information is presented as available on the reporting date, meaning that only rough figures can be offered for future losses of fair value. Depending on the assessment principle to be applied, if there are any future fair value losses, they can lead to different fluctuations in equity that are with or without an effect on the income statement. The key figures are calculated theoretically on the basis of actuarial principles and do not take into consideration any diversification effects between the individual market risks or countercontrolled measures taken in the various market scenarios.
| Interest rate risk | 31 Dec. 2010 | 31 Dec. 2009 | ||
|---|---|---|---|---|
| € 000 | +100 basis points |
–100 basis points |
+100 basis points |
–100 basis points |
| High-grade bonds | –382,196 | 410,964 | –407,638 | 429,092 |
| Bank/company bonds | –55,312 | 59,475 | –55,555 | 58,479 |
| Emerging markets bonds | –71,990 | 77,408 | –49,408 | 52,008 |
| High-yield bonds | –912 | 981 | –1,745 | 1,837 |
| Total | –510,410 | 548,828 | –514,345 | 541,416 |
| Equity risk | 31 Dec. 2010 | 31 Dec. 2009 | ||
|---|---|---|---|---|
| € 000 | +10% | –10% | +10% | –10% |
| Shares in Europe | 38,221 | –37,744 | 23,331 | –23,331 |
| Shares in America | 6,117 | –6,117 | 1,714 | –1,714 |
| Shares in Asia | 2,053 | –2,053 | 389 | –389 |
| Shares international | 2,175 | –2,175 | 1,950 | –1,950 |
| Shares in emerging markets | 3,403 | –3,403 | 1,320 | –1,320 |
| Shares total return | 16,663 | –16,663 | 15,646 | –15,646 |
| Derivative financial instruments | ||||
| and other shares | 3,448 | –3,448 | 4,615 | –4,615 |
| Total | 72,080 | –71,603 | 48,965 | –48,965 |
| Currency risk | 31 Dec. 2010 31 Dec. 2009 |
|||
|---|---|---|---|---|
| € 000 | +10% | –10% | +10% | –10% |
| € | 0 | 0 | 0 | 0 |
| USD | 45,924 | –45,924 | 32,817 | –32,817 |
| Other | 161,797 | –161,797 | 140,959 | –140,959 |
| Total | 207,721 | –207,721 | 173,775 | –173,775 |
| Credit risk | 31 Dec. 2010 | 31 Dec. 2009 | |||
|---|---|---|---|---|---|
| € 000 | + | – | + | – | |
| AAA | 0 basis points | 0 | 0 | 0 | 0 |
| AA | 25 basis points | –38,313 | 38,313 | –49,296 | 49,296 |
| A | 50 basis points | –53,030 | 53,030 | –69,170 | 69,170 |
| BAA | 75 basis points | –70,948 | 70,948 | –43,105 | 43,105 |
| BA | 100 basis points | –34,735 | 34,735 | –14,196 | 14,196 |
| B | 125 basis points | –30,641 | 30,641 | –16,588 | 16,588 |
| CAA | 150 basis points | –7,453 | 7,453 | –5,901 | 5,901 |
| Not rated | 100 basis points | –13,098 | 13,098 | –6,756 | 6,756 |
| Total | –248,219 | 248,219 | –205,011 | 205,011 |
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 with a balancing of the individual values (decay factor of 1).
The following table shows the key value-at-risk figures for the last financial year as reporting date values, annual average and maxima/minima for the year.
| Value at Risk | Total value at risk € 000 |
Equity risk € 000 |
Currency risk € 000 |
Interest rate risk € 000 |
Diversification € 000 |
|---|---|---|---|---|---|
| 31.12.2010 | 676,337 | 342,165 | 116,127 | 713,066 | –495,021 |
| 31.12.2009 | 819,743 | 315,354 | 93,564 | 860,208 | –449,382 |
| Lowest | 619,672 | 256,201 | 74,627 | 683,922 | –330,302 |
| Average | 690,723 | 311,046 | 121,869 | 735,232 | –438,202 |
| Highest | 792,199 | 344,586 | 168,371 | 846,673 | –513,715 |
The UNIQA Group has placed a 2.6% (2009: 2.7%) of its investments in asset-backed securities (ABS).
The securities held in the direct portfolio and in the fund portfolio have been valued mostly using a mark-to-model method.
The individual transactions vary with regard to structure, risk profile, interest claims, rating and other parameters.
UNIQA is of the view that it will not be possible to ascertain a fair value for these securities on the basis of market prices or market transactions for the year 2010 due to low liquidity and the crisis on the financial markets. So-called market prices, insofar as these can even be identified in individual cases, pertain only in the rarest of cases to securities that are held directly in the portfolio, or even to securities from the same issuer, but rather generally to another investment that is similar in terms of rating and securitisation category. Direct transfer of such prices does not appropriately take into account either the complexity or the heterogeneity of the different structures. For both reasons, UNIQA has decided to set the fair value of the specified papers by means of a model approach.
ABS investments are noted for being highly complex and are therefore extensively documented. Due to its longstanding activity in the area of securitisation, UNIQA has developed various models on its own or with others that permit analyses of high quality at acceptable expense.
The main parameters of the model for assessing the estimate of the future development of the (financial) economic environment are the speed of repayment, the failure frequency, the failure severity and the discount rate.
All parameters refer to the assets used to collateralise the transaction, i.e. to the corporate credits, bonds, preferential shares, etc. The future payments are calculated using external forecasts for failure rates. The modelling system of Intex Solutions, Inc., which represents a widely accepted market standard, serves as the basis for the analysis. For forecasting the failure rates of companies, UNIQA now uses the forecasts of Moody's Investors Service. These forecasts encompass a period of five years. Other parameters besides the failure rates are calibrated with the help of the data history. Objective and predetermined values are used for the discounting.
To this extent, the losses expected by an investor on a transaction are already taken into consideration when generating the payment streams. In order to take account of the current economic crisis, a risk premium was additionally added to the applied discount rate. This premium corresponds to the surcharge originally applied on execution of the individual transaction.
The sensitivity analysis of the ABS portfolio with regard to a rise or a fall in the failure rates in the investments underlying the ABS structures is also based on the forecast values from Moody's Investors Service.
The sensitivities for these securities subjected to model-based analysis are also determined using Moody's failure scenarios. According to Moody's, these failure scenarios correspond to the 10% quantile or the 90% quantile of the distribution function of the failures.
| Sensitivity analysis (in € million) | Upside | Downside |
|---|---|---|
| Total profit/loss | 5.8 | –40.0 |
| on P&L | 0.8 | –19.4 |
| on equity | 5.0 | –20.6 |
UNIQA has a participating interest in STRABAG SE of 14.97% as at the reporting date of 31 December 2010 (31 December 2009: 21.91%). Even following the re-entry of a major investor, UNIQA retained a significant influence over the business activity of STRA-BAG SE. UNIQA is therefore continuing the participating interest in STRABAG SE as an associated share. In the 4th quarter of 2010, a purchase option was conceded to a strategic investor for an additional 1.4 million shares of STRABAG SE. It can be exercised between July 2012 and July 2014.
The valuation on the reporting date takes place in consideration of the option agreement and the expected proportional equity on the reporting date. The current market value of this option was determined as the difference between the current book value and the price for exercising the option.
| € 000 | |
|---|---|
| As at 1 Jan. | 601,644 |
| Disposal | –164,907 |
| Updating affecting income1) | 24,274 |
| Updating not affecting income | 4,536 |
| Dividends | –12,467 |
| As at 31 Dec. | 453,079 |
| Value in € per share | 26.54 |
1) The estimate for the as-yet-unpublished 4th quarter of 2010 was also worked on during the financial year.
Selected government bond risks
| Issuer | Current market |
|---|---|
| value | |
| 31 Dec. 2010 | |
| € 000 | |
| Spain | 154,249 |
| Greece | 319,407 |
| Ireland | 257,281 |
| Italy | 883,130 |
| Portugal | 83,955 |
| Total | 1,698,022 |
The difference to the cost of acquisition of this investment affects mainly the revaluation reserve, reduced by the deferred profit-sharing arrangement (in life insurance) and deferred taxes.
Currently it must be assumed that government bonds from member countries will be completely paid back and the current risk reduction on bond prices in some European countries will not last.
In particular, European and international initiatives should be mentioned in this regard. Among others, in this context the European Financial Stabilisation Mechanism (EFSM), the European Financial Stability Facility (EFSF), the International Money Fund (IMF) and the European Central Bank (ECB) should be mentioned.
As early as May 2010 €110 billion were made available to Greece within the framework of the EFSM and €30 billion through the IMF. Furthermore, the placement of the first European bonds via the EFSF in January 2011 made it possible to refinance at very favourable rates (AAA rating; interest warrant: 2.75%, volume: €5 billion), thus demonstrating the availability of this venue for providing financial assistance to distressed member states. Altogether, the EFSF, EFSM and IMF can currently raise €750 billion.
Ireland also applied for and received financial aid through this mechanism in November 2010.
In an additional step, the ECB's Security Markets Programme is contributing to the stabilisation of the secondary market for government bonds by purchasing bonds from member states that are under pressure.
These aid measures are available to all member states. In the cases of Greece and Ireland, the measures have proven their practicality. Hence, it does not currently look like we can assume there will be a long-lasting reduction in value of the affected government bonds.
The RMS of UNIQA Versicherungen AG is a well documented system covering all company activities that includes a systematic and permanent process based on the defined risk strategy with the following elements: identification, analysis, evaluation, controlling, documentation and communication of risks and monitoring of these activities. The scope and orientation of the established systems were designed based on the company-specific requirements. Despite the creation of appropriate frameworks, a certain residual risk always remains since even appropriately and functionally erected systems cannot guarantee absolute certainty in the identification and management of risks.
The goal of the accounting process internal control system is to implement controls to ensure that a proper report can be reliably produced despite the identified risks. In addition to the risks described in the risk report, the RMS also deals with additional risks as well as those in operational processes, compliance, internal reporting, etc.
The accounting process of the UNIQA Group is standardised throughout the Group. Compliance guidelines, operational organisation manuals, balance sheet and consolidation manuals exist to ensure a reliable process. The processing is largely centralised for domestic affiliated companies. For international Group companies, the accounting process is largely decentralised.
An inventory of the existing risks was taken and appropriate monitoring measures were defined for the identification of existing risks. The most important checks were defined in guidelines and instructions and coupled with an authorisation concept. The checks cover both manual coordination and reconciliation routines as well as acceptance inspections of system configurations for connected IT systems. Identified risks and weak points in monitoring the accounting process are reported quickly to management in order for corrective measures to be taken. The procedure for identification and monitoring of the risks is regularly evaluated by an independent, external consultant.
Deviations from expected results and analyses are monitored in monthly reports and figures and are the basis for the continuing supply of information to management.
| Balance sheet values | Currency differences | Additions | Unrealised capital gains | ||
|---|---|---|---|---|---|
| previous year | and losses | ||||
| € 000 | € 000 | € 000 | € 000 | ||
| A. Tangible assets |
|||||
| I. Self-used land and buildings |
230,077 | 986 | 12,577 | 0 | |
| II. Other tangible assets | |||||
| 1. Tangible assets | 61,054 | –68 | 24,123 | 0 | |
| 2. Inventories | 5,211 | 745 | |||
| 3. Other assets Total A. II. |
66,182 132,447 |
–68 | 0 24,868 |
0 | |
| Total A. | 362,524 | 918 | 37,445 | 0 | |
| B. Land and buildings held as financial investments |
1,433,091 | 1,586 | 134,189 | 0 | |
| C. Intangible assets |
|||||
| I. Deferred acquisition costs |
877,394 | 744 | 257,564 | 0 | |
| II. Goodwill | |||||
| 1. Purchased positive goodwill | 3,632 | –89 | 0 | 0 | |
| 2. Positive goodwill 3. Value of insurance policies |
527,284 76,274 |
546 382 |
1,301 0 |
0 0 |
|
| Total C. II. | 607,191 | 839 | 1,301 | 0 | |
| III. Other intangible assets | |||||
| 1. Self-developed software | 1,688 | –157 | 685 | 0 | |
| 2. Acquired intangible assets | 30,187 | 126 | 15,746 | 0 | |
| Total C. III. | 31,875 | –31 | 16,431 | 0 | |
| Total C. | 1,516,459 | 1,552 | 275,296 | 0 | |
| D. Shares in associated companies |
717,163 | 0 | 9,696 | 7,268 | |
| E. Investments |
|||||
| I. Variable-yield securities |
|||||
| 1. Shares, investment shares and other variable-yield securities, | |||||
| including holdings and shares in associated companies | 1,321,142 | 775 | 795,832 | 172,521 | |
| 2. At fair value through profit or loss | 706,219 | 0 | 179,961 | 0 | |
| Total E. I. | 2,027,361 | 775 | 975,794 | 172,521 | |
| II. Fixed interest securities | |||||
| 1. Fixed interest securities, held to maturity | 340,000 | 0 | 0 | 0 | |
| 2. Debt securities and other fixed interest securities | 9,879,620 | 67,308 | 8,039,883 | –268,948 | |
| 3. At fair value through profit or loss | 246,936 | 0 | 80,856 | 0 | |
| Total E. II. | 10,466,556 | 67,308 | 8,120,739 | –268,948 | |
| III. Loans and other investments | |||||
| 1. Loans | |||||
| a) Debt securities issued by and loans to associated companies | 472 | 0 | 17 | 0 | |
| b) Debt securities issued by and loans to participating interests | 552 | 0 | 0 | 0 | |
| c) Mortgage loans | 119,216 | 0 | 116 | 0 | |
| d) Loans and advance payments on policies | 19,091 | –7 | 4,773 | 0 | |
| e) Other loan receivables and registered bonds | 2,803,776 | 3,325 | 184,317 | 6,341 | |
| Total E. III. 1. | 2,943,107 | 3,318 | 189,222 | 6,341 | |
| 2. Cash at credit institutions/cash at banks | 1,201,925 | 7,290 | 0 | 0 | |
| 3. Deposits with ceding companies | 136,149 | 0 | 6,168 | 0 | |
| Total E. III. | 4,281,180 | 10,608 | 195,390 | 6,341 | |
| IV. Derivative financial instruments | 11,858 | 9 | 56,830 | 0 | |
| Total E. | 16,786,955 | 78,700 | 9,348,752 | –90,086 | |
| F. Investments held on account and at risk of life insurance policyholders |
3,473,553 | 6,074 | 1,799,768 | 42,729 | |
| Aggregate total | 24,289,744 | 88,830 | 11,605,145 | –40,089 |
Amortisation
| € 000 | € 000 | € 000 | € 000 | € 000 | financial year € 000 |
|---|---|---|---|---|---|
| 0 | 46,199 | 9,188 | 0 | 12,088 | 268,563 |
| 0 | 5,816 | 3,386 | 0 | 18,672 | 68,866 |
| 0 | 5,956 | ||||
| 2,348 | 63,835 | ||||
| 0 | 5,816 | 5,733 | 0 | 18,672 | 138,657 |
| 0 | 52,015 | 14,921 | 0 | 30,760 | 407,220 |
| 0 | –52,157 | 10,919 | 0 | 40,493 | 1,465,297 |
| 0 | 0 | 0 | 0 | 250,055 | 885,646 |
| 0 | 0 | 0 | 0 | 3,368 | 175 |
| 0 | 0 | 2,448 | 0 | 11 | 526,672 |
| 0 | 0 | 0 | 0 | 11,101 | 65,555 |
| 0 | 0 | 2,448 | 0 | 14,481 | 592,402 |
| 0 | 0 | 0 | 0 | 306 | 1,909 |
| 0 | 143 | 5,242 | 0 | 11,469 | 29,491 |
| 0 | 143 | 5,242 | 0 | 11,775 | 31,400 |
| 0 | 143 | 7,690 | 0 | 276,311 | 1,509,448 |
| 0 | 0 | 206,666 | 25,559 | 6,575 | 546,444 |
| –15 | –9,421 | 504,140 | 27,869 | 53,043 | 1,751,520 |
| 0 | 0 | 238,321 | 103,946 | 57,381 | 694,424 |
| –15 | –9,421 | 742,461 | 131,815 | 110,424 | 2,445,944 |
| 0 | 0 | 0 | 0 | 0 | 340,000 |
| 7,782 | 6,879 | 6,602,873 | 156,393 | 87,506 | 11,198,539 |
| –233 | 0 | 18,290 | 20,997 | 12,882 | 317,383 |
| 7,549 | 6,879 | 6,621,164 | 177,390 | 100,387 | 11,855,922 |
| 0 | 0 | 38 | 0 | 0 | 451 |
| 0 | 0 | 0 | 0 | 0 | 552 |
| 0 | –644 | 20,341 | 0 | 1,848 | 96,497 |
| 0 | 0 | 9,205 | 0 | 0 | 14,652 |
| 473 | 644 | 650,901 | 557 | 18,454 | 2,330,078 |
| 473 | 0 | 680,485 | 557 | 20,302 | 2,442,231 |
| 0 | 0 | 345,329 | 2,688 | 2,921 | 863,652 |
| 0 | 0 | 5,522 | 0 | 0 | 136,794 |
| 473 | 0 | 1,031,337 | 3,244 | 23,223 | 3,442,677 |
| 0 | 0 | 39,031 | 58,123 | 59,537 | 28,252 |
| 8,007 | –2,542 | 8,433,993 | 370,572 | 293,572 | 17,772,793 |
| 0 | 2,542 | 1,233,899 | 149,923 | 47,961 | 4,192,730 |
| 8,007 | 0 | 9,908,087 | 546,054 | 695,673 | 25,893,932 |
Reclassifications
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Book values for | ||
| Property and casualty | 81,601 | 86,265 |
| Life | 171,593 | 128,012 |
| Health | 15,369 | 15,800 |
| 268,563 | 230,077 | |
| Market values for | ||
| Property and casualty | 100,776 | 109,015 |
| Life | 197,614 | 156,861 |
| Health | 17,919 | 17,979 |
| 316,309 | 283,855 | |
| Acquisition values | 387,630 | 324,749 |
| Cumulative depreciation | –119,068 | –94,673 |
| Book values | 268,563 | 230,077 |
| Useful life for land and buildings | 10–80 years | 10–80 years |
| Additions from company acquisition | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
| Self-used land and buildings | 0 5,624 |
The market values are derived from expert reports.
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Tangible assets | 68,866 | 61,054 |
| Inventories | 5,956 | 5,211 |
| Other assets | 63,835 | 66,182 |
| Total | 138,657 | 132,447 |
| Tangible assets Development in financial year |
€ 000 |
|---|---|
| Acquisition values as at 31 Dec. 2009 | 215,388 |
| Cumulative depreciation up to 31 Dec. 2009 | –154,334 |
| Book values as at 31 Dec. 2009 | 61,054 |
| Currency translation changes | –68 |
| Additions | 24,123 |
| Disposals | –3,386 |
| Transfers | 5,816 |
| Appreciation and depreciation | –18,672 |
| Book values as at 31 Dec. 2010 | 68,866 |
| Acquisition values as at 31 Dec. 2010 | 234,568 |
| Cumulative depreciation up to 31 Dec. 2010 | –165,702 |
| Book values as at 31 Dec. 2010 | 68,866 |
Tangible assets refer mainly to office equipment. They are depreciated over a useful life of four to ten years. The amounts of depreciation are recognised in the income statement on the basis of allocated operating expenses under the items insurance benefits, operating expenses and net investment income.
| Additions from company acquisition | 31 Dec. 2010 | 31 Dec. 2009 |
|---|---|---|
| € 000 | € 000 | |
| Other tangible assets | 0 | 18,322 |
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Book values for | ||
| Property and casualty | 289,959 | 377,011 |
| Health | 288,647 | 285,541 |
| Life | 886,690 | 770,539 |
| 1,465,297 | 1,433,091 | |
| Market values for | ||
| Property and casualty | 603,044 | 551,830 |
| Health | 430,538 | 399,788 |
| Life | 1,124,723 | 1,103,463 |
| 2,158,305 | 2,055,081 | |
| Acquisition values | 1,968,476 | 1,884,787 |
| Cumulative depreciation | –503,179 | –451,696 |
| Book values | 1,465,297 | 1,433,091 |
| Useful life for land and buildings | 10–80 years | 10–80 years |
| Additions from company acquisition | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
The market values are derived from expert reports.
| 31 Dec. 2010 € 000 |
|
|---|---|
| Change in impairment for current year | 3,125 |
of which reallocation affecting income 3,125
Land and buildings held as financial investments 0 165,546
| 2010 € 000 |
2009 € 000 |
|
|---|---|---|
| Property and casualty | ||
| As at 1 Jan. | 146,366 | 135,129 |
| Currency translation changes | 438 | –451 |
| Change in consolidation scope | 0 | 258 |
| Capitalisation | 119,389 | 91,273 |
| Depreciation | –109,586 | –79,843 |
| As at 31 Dec. | 156,606 | 146,366 |
| Health | ||
| As at 1 Jan. | 224,414 | 215,855 |
| Currency translation changes | 57 | –8 |
| Capitalisation | 16,083 | 17,883 |
| Interest surchage | 8,710 | 9,476 |
| Depreciation | –22,079 | –18,793 |
| As at 31 Dec. | 227,185 | 224,414 |
| Life | ||
| As at 1 Jan. | 506,614 | 521,019 |
| Currency translation changes | 249 | –108 |
| Change in consolidation scope | 0 | 474 |
| Capitalisation | 96,006 | 102,066 |
| Interest surchage | 17,375 | 14,595 |
| Depreciation | –118,390 | –131,432 |
| As at 31 Dec. | 501,854 | 506,614 |
| In the consolidated financial statements | ||
| As at 1 Jan. | 877,394 | 872,003 |
| Currency translation changes | 744 | –567 |
| Change in consolidation scope | 0 | 732 |
| Capitalisation | 231,479 | 211,223 |
| Interest surchage | 26,085 | 24,071 |
| Depreciation | –250,055 | –230,068 |
| As at 31 Dec. | 885,646 | 877,394 |
| € 000 | |
|---|---|
| Acquisition values as at 31 Dec. 2009 | 759,240 |
| Cumulative depreciation up to 31 Dec. 2009 | –152,049 |
| Book values as at 31 Dec. 2009 | 607,191 |
| Acquisition values as at 31 Dec. 2010 | 760,540 |
| Cumulative depreciation up to 31 Dec. 2010 | –168,138 |
| Book values as at 31 Dec. 2010 | 592,402 |
There were no major additions in 2010 – see also the information on the scope of consolidation beginning on page 74.
| € 000 | |
|---|---|
| Cumulative depreciation up to 31 Dec. 2010 | 168,138 |
| of which relating to impairment | 28,767 |
| of which current depreciation | 139,371 |
| 31 Dec. 2010 | |
|---|---|
| € 000 | |
| Change in impairment for current year | 11 |
| of which reallocation affecting income | 11 |
The above values include the goodwill as well as the purchase price paid for the total insurance policies acquired.
| Company acquisitions 2010 | Amounts placed at the time of acquisition € 000 |
Book values of the acquired companies € 000 |
|---|---|---|
| Assets | 8,941 | 8,941 |
| Tangible assets | 0 | 0 |
| Land and buildings held as financial investments | 0 | 0 |
| Intangible assets | 0 | 0 |
| Shares in associated companies | 0 | 0 |
| Investments | 8,937 | 8,937 |
| Investments held on account and at risk of life insurance policyholders |
0 | 0 |
| Share of reinsurance in technical provisions | 0 | 0 |
| Receivables including receivables under insurance business |
2 | 2 |
| Receivables from income tax | 0 | 0 |
| Deferred tax assets | 0 | 0 |
| Liquid funds | 2 | 2 |
| Equity and liabilities | 8,941 | 8,941 |
| Total equity | 8,924 | 8,924 |
| Subordinated liabilities | 0 | 0 |
| Technical provisions | 0 | 0 |
| Technical provisions held on account and at risk of life insurance policyholders |
0 | 0 |
| Financial liabilities | 0 | 0 |
| Other provisions | 0 | 0 |
| Payables and other liabilities | 17 | 17 |
| Liabilities from income tax | 0 | 0 |
| Deferred tax liabilities | 0 | 0 |
| Currency differences | 0 | 0 |
| Self-developed software € 000 |
Acquired intangible assets € 000 |
|
|---|---|---|
| Acquisition values as at 31 Dec. 2009 | 37,224 | 171,757 |
| Cumulative depreciation up to 31 Dec. 2009 | –35,536 | –141,571 |
| Book values as at 31 Dec. 2009 | 1,688 | 30,187 |
| Acquisition values as at 31 Dec. 2010 | 37,752 | 182,263 |
| Cumulative depreciation up to 31 Dec. 2010 | –35,843 | –152,772 |
| Book values as at 31 Dec. 2010 | 1,909 | 29,491 |
| 31 Dec. 2010 | 31 Dec. 2009 | ||
|---|---|---|---|
| € 000 | € 000 | ||
| Computer software | 27,954 | 27,652 | |
| Copyrights | 0 | 0 | |
| Licences | 512 | 764 | |
| Other intangible assets | 2,935 | 3,459 | |
| 31,400 | 31,875 |
| Useful life | ||
|---|---|---|
| Self-developed software | 2–5 years | 2–5 years |
| Acquired intangible assets | 2–5 years | 2–5 years |
The intangible assets include paid-for and self-produced computer software as well as licences and copyrights.
The depreciation of the other intangible assets was recognised in the income statement on the basis of allocated operating expenses under the items of insurance benefits, operating expenses and net investment income.
The intangible assets are depreciated using the straight-line method.
| Additions from company acquisition | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Self-developed software | 0 | 0 |
| Acquired intangible assets | 0 | 1,024 |
| 2010 | |
|---|---|
| € 000 | |
| Research and development expenditure recorded as an expense during the | |
| period under review | 5,656 |
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Current market values for | ||
| Shares in affiliated companies of minor importance 1) |
21,235 | 19,820 |
| Shares in associated companies of minor importance |
3,574 | 2,049 |
| Book values for | ||
| Shares in associated companies valued at equity | 542,870 | 715,113 |
| Equity for | ||
| Shares in affiliated companies of minor importance |
21,595 | 20,197 |
| Annual net profit/loss for the year | ||
| Shares in affiliated companies of minor importance |
1,508 | –5,315 |
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.).
The decline in the shares in associated companies resulted mainly from the disposal of the STRABAG shares and the transfer of the shares held in Astra S.A., which were reclassified as variable-yield securities – available for sale due to the decision to sell.
| Shares in associated companies | 31 Dec. 2010 € 000 |
|---|---|
| Current market value of associated companies listed on a public stock exchange |
434,499 |
| Profits/losses for the period | 19,785 |
| Unrecorded, proportional loss, ongoing, if shares of loss are no longer recorded |
0 |
| Unrecorded, proportional loss, cumulative, if shares of loss are no longer recorded |
0 |
| Proportional asset value of shares in associated companies valued at equity | 1,724,179 |
| Proportional liabilities of shares in associated companies valued at equity | 1,190,095 |
| Book values | |||
|---|---|---|---|
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
||
| Corporate bonds of domestic financial institutions | 340,000 | 340,000 | |
| Other securities | 0 | 0 | |
| Total | 340,000 | 340,000 |
| Market values | |||
|---|---|---|---|
| 31 Dec. 2010 | 31 Dec. 2009 | ||
| € 000 | € 000 | ||
| Corporate bonds of domestic financial institutions | 340,000 | 340,000 | |
| Other securities | 0 | 0 | |
| Total | 340,000 | 340,000 |
| Contractual remaining term | Book values | |
|---|---|---|
| 31 Dec. 2010 31 Dec. 2009 € 000 |
||
| Up to 1 year | 340,000 | 0 |
| more than 1 year up to 5 years | 0 | 340,000 |
| Total | 340,000 | 340,000 |
| Contractual remaining term | Market values | ||
|---|---|---|---|
| 31 Dec. 2010 31 Dec. 2009 |
|||
| € 000 | € 000 | ||
| Up to 1 year | 340,000 | 0 | |
| more than 1 year up to 5 years | 0 | 340,000 | |
| Total | 340,000 | 340,000 |
| Type of investment | Acquisition costs | Fluctuation in value not affecting income |
Accumulated value adjustments |
Foreign currency differences affecting income |
Market values | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
| Shares in affiliated companies | 21,235 | 19,820 | 0 | 0 | 0 | 0 | 0 | 0 | 21,235 | 19,820 |
| Shares | 799,655 | 628,161 | 197,862 | 107,072 | –139,796 | –145,979 | 0 | 0 | 857,721 | 589,254 |
| Equity funds | 356,651 | 240,373 | 29,634 | 13,260 | –24,826 | –29,945 | 0 | 0 | 361,459 | 223,688 |
| Debenture bonds not capital-guaranteed | 252,986 | 244,448 | 2,044 | –4,823 | –17,471 | –14,326 | –3,379 | –4,109 | 234,180 | 221,190 |
| Other variable-yield securities | 41,875 | 41,870 | –352 | –359 | –3,400 | –3,400 | 0 | 0 | 38,123 | 38,110 |
| Participating interests and other investments |
237,222 | 240,534 | 36,298 | 25,125 | –34,718 | –36,579 | 0 | 0 | 238,802 | 229,079 |
| Fixed-interest securities | 11,943,303 | 10,615,617 | –415,099 | –117,183 | –288,634 | –501,477 | –41,030 | –117,338 | 11,198,539 | 9,879,620 |
| Total | 13,652,927 | 12,030,821 | –149,614 | 23,092 | –508,845 | –731,705 | –44,409 | –121,446 | 12,950,059 | 11,200,762 |
Valuations based on internal calculations are included in the market values of shares. The effect of the internal valuation for 2010 results in a value reduction not affecting income in the amount of € 33,546,000 (2009: value reduction of € 113,938,000).
| Type of investment | Accumulated value adjustments | Of which accumulated from previous years | Of which from current year | |||
|---|---|---|---|---|---|---|
| 31 Dec. 2010 | 31 Dec. 2009 | 31 Dec. 2010 | 31 Dec. 2009 | 31 Dec. 2010 | 31 Dec. 2009 | |
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
| Shares in affiliated companies | 0 | 0 | 0 | 0 | 0 | 0 |
| Shares | –139,796 | –145,979 | –113,763 | –80,437 | –26,033 | –65,542 |
| Equity funds | –24,826 | –29,945 | –24,567 | –18,855 | –259 | –11,091 |
| Debenture bonds not capital-guaranteed | –17,471 | –14,326 | –14,326 | –65,900 | –3,145 | 51,574 |
| Other variable-yield securities | –3,400 | –3,400 | –3,400 | 0 | 0 | –3,400 |
| Participating interests and other investments | –34,718 | –36,579 | –34,475 | –20,229 | –243 | –16,350 |
| Fixed-interest securities | –288,634 | –501,477 | –280,351 | –307,869 | –8,283 | –193,608 |
| Total | –508,845 | –731,705 | –470,882 | –493,290 | –37,963 | –238,415 |
| Type of investment | Change in value adjustment current year |
of which write-off/write-up affecting income |
of which changes due to disposal |
Write-up of equity |
|---|---|---|---|---|
| 31 Dec. 2010 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2010 € 000 |
|
| Shares in affiliated companies | 0 | 0 | 0 | 0 |
| Shares | 6,183 | –26,033 | 32,216 | 0 |
| Equity funds | 5,119 | –259 | 5,378 | 0 |
| Debenture bonds not capital-guaranteed | –3,145 | –3,145 | 0 | 0 |
| Other variable-yield securities | 0 | 0 | 0 | 0 |
| Participating interests and other investments | 1,861 | –243 | 2,104 | 0 |
| Fixed-interest securities | 212,843 | –8,283 | 221,125 | 0 |
| Total | 222,860 | –37,963 | 260,824 | 0 |
| Change in equity | Allocation not affecting income | Withdrawal1) due to disposals affecting income |
Change in unrealised gains/losses | |||
|---|---|---|---|---|---|---|
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
| Other securities - available for sale2) | ||||||
| Gross | –90,086 | 231,601 | –67,425 | –10,533 | –157,511 | 221,068 |
| Deferred tax | 11,863 | –21,962 | 3,631 | 7,576 | 15,494 | –14,386 |
| Deferred profit participation | 53,072 | –170,142 | 52,850 | –16,362 | 105,922 | –186,504 |
| Minority interests | 5,980 | –14,362 | 3,875 | –6,784 | 9,856 | –21,147 |
| Net | –19,171 | 25,134 | –7,069 | –26,103 | –26,240 | –969 |
1) Withdrawals affecting the income statement due to disposals and impairments.
2) Incl. reclassified securities.
The table below depicts the financial instruments for which subsequent valuation is performed at the current market value. These are divided into levels 1 to 3, depending on the extent to which the current market value can be observed.
Level 1 valuations at current market value are ones that result from listed prices (unadjusted) on the active markets for identical financial assets and liabilities.
Level 2 valuations at current market value are those based on parameters that do not correspond to listed prices for assets and liabilities as in level 1 (data) and are derived either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 valuations at current market value are those arising from models using parameters for the valuation of assets and liabilities that are not based on observable market data (unobservable prices, assumptions).
| Investments at fair value | Level 1 | Level 2 | Level 3 | Group total |
|---|---|---|---|---|
| 31 Dec. 2010 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2010 € 000 |
|
| Securities available for sale | 9,692,736 | 2,613,378 | 643,945 | 12,950,059 |
| Shares in affiliated companies | 0 | 21,235 | 0 | 21,235 |
| Shares | 439,962 | 417,436 | 322 | 857,721 |
| Equity funds | 238,264 | 123,193 | 2 | 361,459 |
| Debenture bonds not capital-guaranteed | 34,101 | 200,079 | 0 | 234,180 |
| Other variable-yield securities | 0 | 38,123 | 0 | 38,123 |
| Participating interests and other investments | 0 | 238,802 | 0 | 238,802 |
| Fixed-interest securities | 8,980,409 | 1,574,508 | 643,621 | 11,198,539 |
| At fair value through profit and loss | 179,913 | 819,081 | 12,813 | 1,011,807 |
| Derivative financial instruments | 425 | 24,163 | 0 | 24,589 |
| Total | 9,873,074 | 3,456,621 | 656,758 | 13,986,454 |
No transfers between levels 1 and 2 took place during the reporting period. The entire portfolio of asset-backed securities was classified as
level 3. No other level 3 assets existed as at 31 December 2010.
| Level 3 Investments at fair value | Securities available for sale |
At fair value through profit and loss |
Derivative financial instruments |
Total |
|---|---|---|---|---|
| 31 Dec. 2010 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2010 € 000 |
|
| As at 1 Jan. 2010 | 592,185 | 20,174 | 0 | 612,359 |
| Exchange rate differences | 291 | 0 | 0 | 291 |
| Total gains or losses for the period recognised in profit or loss | 44,484 | –1,192 | 0 | 43,292 |
| Total gains or losses for the period recognised in other comprehensive income (revaluation reserve) |
49,314 | 0 | 0 | 49,314 |
| Purchase | 27,442 | 6 | 0 | 27,448 |
| Sales | –83,086 | –6,175 | 0 | –89,261 |
| Issues | 0 | 0 | 0 | 0 |
| Settlements | 13,315 | 0 | 0 | 13,315 |
| Transfers | 0 | 0 | 0 | 0 |
| As at 31 Dec. 2010 | 643,945 | 12,813 | 0 | 656,758 |
| Contractual remaining term | Acquisition costs | Market values | ||
|---|---|---|---|---|
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
| Infinite | 103,414 | 57,667 | 88,908 | 58,489 |
| Up to 1 year | 1,542,452 | 1,984,978 | 1,374,544 | 1,709,230 |
| more than 1 year up to 5 years | 3,731,367 | 2,518,608 | 3,634,209 | 2,454,377 |
| More than 5 years up to 10 years |
4,396,211 | 3,182,603 | 4,233,496 | 3,074,097 |
| More than 10 years | 2,464,720 | 3,158,079 | 2,139,685 | 2,842,728 |
| Total | 12,238,163 | 10,901,934 | 11,470,842 | 10,138,921 |
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. 2010 € 000 |
|---|---|
| Fixed-interest securities | |
| Rating AAA | 2,997,688 |
| Rating AA | 1,904,314 |
| Rating A | 2,934,754 |
| Rating BBB | 1,887,992 |
| Rating < BBB | 1,513,125 |
| Not assigned | 232,970 |
| Rating total of fixed-interest securities | 11,470,842 |
| Issuer countries | |
| Share securities | |
| IE, NL, UK, US | 392,828 |
| AT, BE, CH, DE, DK, FR, IT | 623,043 |
| ES, FI, NO, SE | 33,288 |
| Remaining EU | 108,889 |
| Other countries | 167,619 |
| Issuer countries total of share securities | 1,325,666 |
| Other shareholdings | 132,315 |
| Total variable-yield securities | 1,457,981 |
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Market values | ||
| Equity price risk | 4,321 | –11,528 |
| Interest rate risk | 2,217 | 1,348 |
| Currency risk | 7,008 | –10,928 |
| Structured risk | 11,044 | 6,026 |
| Total | 24,589 | –15,081 |
| Structured risk - of which: | ||
| Equity price risk | 2,788 | 2,750 |
| Interest rate risk | 2,821 | –2,653 |
| Currency risk | 5,435 | 5,929 |
| Credit risk | 0 | 0 |
| Balance sheet values | ||
| Investments | 28,252 | 11,858 |
| Financial liabilities | –3,663 | –26,939 |
| Book values | |||
|---|---|---|---|
| 31 Dec. 2010 | 31 Dec. 2009 | ||
| € 000 | € 000 | ||
| Loans to affiliated companies | 451 | 472 | |
| Loans to participating interests | 552 | 552 | |
| Mortgage loans | 96,497 | 119,216 | |
| Loans and advance payments on policies | 14,652 | 19,091 | |
| Other loans | 613,679 | 684,926 | |
| Registered bonds | 336,592 | 321,909 | |
| Reclassified bonds | 1,379,806 | 1,796,941 | |
| Total | 2,442,231 | 2,943,107 |
On 1 July 2008, securities previously available for sale were reclassified according to IAS 39/50E as other loans. Overall, fixed-interest securities with a book value of €2,129,552,000 were reclassified. The corresponding revaluation reserve as at 30 June 2008 was €–98,208,000.
| Reclassified bonds | 2010 € 000 |
2009 € 000 |
2008 € 000 |
|---|---|---|---|
| Book value 31 Dec. | 1,379,806 | 1,796,941 | 2,102,704 |
| Market value 31 Dec. | 1,345,580 | 1,732,644 | 1,889,108 |
| Change in market value | 30,586 | 149,299 | –213,596 |
| Amortisation income/expense | 473 | 5,917 | –61 |
| Book values | |
|---|---|
| 31 Dec. 2010 | 31 Dec. 2009 |
| € 000 | € 000 |
| 4,878 | 1,361 |
| 789,704 | 1,102,383 |
| 599,738 | 632,270 |
| 827,016 | 958,837 |
| 220,895 | 248,256 |
| 2,442,231 | 2,943,107 |
| Market values | |||
|---|---|---|---|
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
||
| Loans to affiliated companies | 451 | 472 | |
| Loans to participating interests | 552 | 552 | |
| Mortgage loans | 96,497 | 119,216 | |
| Loans and advance payments on policies | 14,652 | 19,091 | |
| Other loans | 627,032 | 697,647 | |
| Registered bonds | 336,592 | 321,909 | |
| Reclassified bonds | 1,345,580 | 1,732,644 | |
| Total | 2,421,357 | 2,891,530 |
| Contractual remaining term | Market values | |
|---|---|---|
| 31 Dec. 2010 | 31 Dec. 2009 | |
| € 000 | € 000 | |
| Infinite | 4,878 | 1,361 |
| Up to 1 year | 734,687 | 1,023,561 |
| more than 1 year up to 5 years | 625,244 | 658,445 |
| More than 5 years up to 10 years | 835,704 | 963,145 |
| More than 10 years | 220,843 | 245,019 |
| Total | 2,421,357 | 2,891,530 |
| Impairment | 31 Dec. 2010 | 31 Dec. 2009 |
|---|---|---|
| € 000 | € 000 | |
| Change in impairment for current year | 20,302 | 8,711 |
| of which reallocation affecting income | 20,302 | 8,711 |
| 31 Dec. 2010 | 31 Dec. 2009 | |
|---|---|---|
| € 000 | € 000 | |
| Deposits with credit institutions | 863,652 | 1,201,925 |
| Deposits with ceding companies | 136,794 | 136,149 |
| Total | 1,000,446 | 1,338,073 |
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| I. Reinsurance receivables |
||
| 1. Accounts receivables under reinsurance | ||
| operations | 39,741 | 52,558 |
| 39,741 | 52,558 | |
| II. Other receivables |
||
| Receivables under the insurance business | ||
| 1. from policyholders | 320,375 | 296,340 |
| 2. from intermediaries | 75,569 | 71,292 |
| 3. from insurance companies | 12,832 | 9,368 |
| 408,776 | 377,000 | |
| Other receivables | ||
| Accrued interest and rent | 254,254 | 220,754 |
| Other tax refund claims | 64,535 | 49,900 |
| Receivables due from employees | 4,300 | 3,507 |
| Other receivables | 180,990 | 265,492 |
| 504,079 | 539,653 | |
| Total other receivables | 912,855 | 916,653 |
| Subtotal | 952,596 | 969,211 |
| of which receivables with a remaining term of | ||
| Up to 1 year | 937,351 | 942,005 |
| more than 1 year | 15,245 | 27,206 |
| 952,596 | 969,211 | |
| of which receivables with values not yet adjusted | ||
| up to 3 months overdue | 65,863 | 67,350 |
| more than 3 months overdue | 9,285 | 12,068 |
| III. Other assets |
||
| Accruals | 54,819 | 50,690 |
| 54,819 | 50,690 | |
| Total receivables incl. receivables under insurance business |
1,007,415 | 1,019,902 |
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Receivables from income tax | 46,111 | 40,348 |
| of which receivables with a remaining term of | ||
| Up to 1 year | 44,104 | 38,341 |
| more than 1 year | 2,007 | 2,007 |
| Cause of origin | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Actuarial items | 8,358 | 213 |
| Social capital | 47,276 | 37,268 |
| Investments | 8,901 | 9,254 |
| Loss carried forward | 16,908 | 20,694 |
| Other | 24,379 | 28,866 |
| Total | 105,821 | 96,295 |
| of which not affecting income | 8,325 | –2,386 |
For losses carried forward in the amount of €103,609,000, the deferred tax of €26,764,000 was not capitalised because utilisation will not be possible in the foreseeable future.
| 31 Dec. 2010 | 31. Dec. 2009 | |
|---|---|---|
| Number of authorised and issued no-par shares | 142,985,217 | 142,985,217 |
| of which fully paid up | 142,985,217 | 142,985,217 |
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.
Actuarial gains and losses from pension and severance payment provisions were posted as "actuarial gains and losses from defined benefit pensions plans" after deducting deferred policyholder profit participation and deferred taxes.
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.
The share capital was increased in the previous financial year in partial use of this authorisation by €11,312,217 to €142,985,217.
Furthermore, the Management Board made use of its authorisation to buy back shares in accordance with the resolution of the 9th Annual General Meeting of 19 May 2008 and resolved on 19 May 2008 that UNIQA would buy back its own shares. The Supervisory Board of the company confirmed the decision of the Management Board in its meeting on 19 May 2008. In this regard, the ongoing resale programme was ended. The programme for the repurchase of shares entered into effect on 22 May 2008. During the financial year 2010 and the previous year no own shares were acquired through the stock exchange.
The business development due to organic growth and acquisitions influences the capital requirement of the UNIQA Group. In the context of Group controlling, the appropriate coverage of the solvency requirement on a consolidated basis is constantly monitored.
As at 31 December 2010, the adjusted equity amounted to €1,665,788,000 (2009: €1,600,580,000). In ascertaining the adjusted equity, non-tangible economic goods (especially goodwill) and participating interests in banks and insurance companies are deducted from the equity and various forms of hybrid capital (especially supplemental capital) and latent reserves in investments (especially in real estate) are added. With a statutory requirement for adjusted equity of €1,117,246,000 (2009: €1,058,638,000), the statutory requirements were exceeded by €548,542,000 (2009: €541,942,000), resulting in a coverage rate of 149.1% (2009: 151.2%). With the change to Section 81h Paragraph 2 of the Insurance Supervisory Act, the volatility reserve was added as part of the available capital as of the third quarter of 2008. This increased the adjusted equity by €221,895,000 (2009: €218,668,000).
The adjusted equity base is ascertained on the basis of the available consolidated financial statements (produced in accordance with Section 80b of the Insurance Supervisory Act).
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Adjusted equity without deduction acc. to Section 86h paragraph 5 of the Insurance Supervision Act |
1,665,788 | 1,600,580 |
| Adjusted equity with deduction acc. to Section 86h paragraph 5 of the Insurance Supervision Act |
1,443,894 | 1,381,912 |
| 31 Dec. 2010 | 31. Dec. 2009 | |
|---|---|---|
| Shares held by: | ||
| UNIQA Versicherungen AG | ||
| Acquisition costs in € 000 | 10,857 | 10,857 |
| Number of shares | 819,650 | 819,650 |
| Share of subscribed capital in % | 0.57 | 0.57 |
In the performance figure "earnings per share", the consolidated profit is set against the average number of ordinary shares in circulation.
| Earnings per share | 2010 | 2009 |
|---|---|---|
| Consolidated profit (in € 000) | 46,434 | 25,672 |
| of which accounts for ordinary shares (in € 000) | 46,434 | 25,672 |
| Own shares as at 31st. Dec. | 819,650 | 819,650 |
| Average number of shares in circulation | 142,165,567 | 131,723,521 |
| Earnings per share (in €)1) | 0.33 | 0.19 |
| Earnings before taxes per share (in €)1) | 0.69 | 0.53 |
| Earnings per share1), adjusted for goodwill amortisation (in €) |
0.43 | 0.34 |
| Profit from ordinary activities per share, adjusted for goodwill amortisation (in €) |
1.13 | 0.90 |
| Dividend per share2) | 0.40 | 0.40 |
| Dividend payment (€ 000)2) | 56,866 | 56,866 |
1) Calculated on the basis of the consolidated profit of 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. 2010 € 000 |
|---|---|
| Effective tax | 0 |
| Deferred tax | 26,205 |
| Total | 26,205 |
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| In revaluation reserve | –18,997 | –9,142 |
| In actuarial gains and losses on defined benefit plans | –4,816 | –798 |
| In net income for the year | 48,618 | 29,993 |
| In other equity | 220,247 | 211,667 |
| Total | 245,051 | 231,720 |
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Supplementary capital | 575,000 | 575,000 |
Partial debentures with a nominal value of €325 million for paid up supplementary capital were issued by Raiffeisen Versicherung AG in December 2002 and by UNIQA Versicherungen AG, UNIQA Personenversicherung AG and UNIQA Sachversicherung AG in July 2003 according to Section 73c paragraph 2 of the Austrian Insurance Supervision Act. The partial debentures are valid for an unlimited time period. An ordinary or extraordinary notice of redemption to the issuer is not possible for at least five years. Subject to coverage in the annual net profit before the issuer's movements in reserves, the interest to July 2013 will be 5.36%, 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 73c paragraph 2 of the Austrian Insurance Supervision Act. According to the conditions of the bearer debentures, the deposited capital of UNIQA Versicherungen AG is agreed to remain at the company's disposal for at least five years, with no ordinary or extraordinary cancellation possible. Interest is applied only insofar as this is covered in the net profit for the year of the issuer. The interest rate up to December 2016 is 5.079%.
In January 2007, UNIQA Versicherungen AG issued additional bearer debentures with a face value of €100 million for deposited supplementary capital according to Section 73c paragraph 2 of the Austrian Insurance Supervisory Act. According to the conditions of the bearer debentures, the deposited capital of UNIQA Versicherungen AG is agreed to remain at the company's disposal for at least five years, with no ordinary or extraordinary cancellation possible. Interest is applied only insofar as this is covered in the net profit for the year of the issuer. The interest rate up to December 2016 is 5.342%.
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Property and casualty | ||
| Gross | 577,602 | 536,212 |
| Reinsurers' share | –19,449 | –19,613 |
| 558,153 | 516,599 | |
| Health | ||
| Gross | 17,220 | 16,357 |
| Reinsurers' share | –1,305 | –728 |
| 15,914 | 15,629 | |
| In the consolidated financial statements | ||
| Gross | 594,822 | 552,569 |
| Reinsurers' share | –20,755 | –20,341 |
| Total (fully consolidated values) | 574,067 | 532,228 |
| 31 Dec. 2010 | 31 Dec. 2009 | |
|---|---|---|
| € 000 | € 000 | |
| Property and casualty | ||
| Gross | 38,336 | 40,280 |
| Reinsurers' share | –376 | –443 |
| 37,959 | 39,837 | |
| Health | ||
| Gross | 2,535,051 | 2,375,317 |
| Reinsurers' share | –1,323 | –1,447 |
| 2,533,728 | 2,373,869 | |
| Life | ||
| Gross | 13,906,355 | 13,639,771 |
| Reinsurers' share | –447,009 | –446,708 |
| 13,459,346 | 13,193,063 | |
| In the consolidated financial statements | ||
| Gross | 16,479,742 | 16,055,368 |
| Reinsurers' share | –448,708 | –448,599 |
| Total (fully consolidated values) | 16,031,033 | 15,606,769 |
The interest rates used as an accounting basis were as follows:
| For | Health insurance | Life insurance |
|---|---|---|
| acc. to SFAS 60 % | acc. to SFAS 120 % | |
| 2010 | ||
| For actuarial provision | 4.50 or 5.50 | 1.75 –4.00 |
| For deferred acquisition costs | 4.50 or 5.50 | 4.34 |
| 2009 | ||
| For actuarial provision | 4.50 or 5.50 | 1.75 –4.00 |
| For deferred acquisition costs | 4.50 or 5.50 | 4.63 |
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Property and casualty | ||
| Gross | 2,095,145 | 2,028,238 |
| Reinsurers' share | –223,336 | –281,334 |
| 1,871,810 | 1,746,904 | |
| Health | ||
| Gross | 172,834 | 167,447 |
| Reinsurers' share | –555 | –534 |
| 172,279 | 166,913 | |
| Life | ||
| Gross | 124,393 | 104,259 |
| Reinsurers' share | –16,084 | –11,894 |
| 108,309 | 92,365 | |
| In the consolidated financial statements | ||
| Gross | 2,392,372 | 2,299,943 |
| Reinsurers' share | –239,975 | –293,762 |
| Total (fully consolidated values) | 2,152,397 | 2,006,182 |
The provision for outstanding claims developed in the property and casualty insurance as follows:
| 2010 | 2009 | ||
|---|---|---|---|
| € 000 | € 000 | ||
| 1. | Provisions for outstanding claims as at 1 Jan. | ||
| a) Gross | 2,028,238 | 1,919,387 | |
| b) Reinsurers' share | –281,334 | –252,684 | |
| c) Retention | 1,746,904 | 1,666,703 | |
| 2. | Plus (retained) claims expenditures | ||
| a) Losses of the current year | 1,759,858 | 1,582,095 | |
| b) Losses of the previous year | –60,022 | –88,493 | |
| c) Total | 1,699,835 | 1,493,601 | |
| 3. | Less (retained) losses paid | ||
| a) Losses of the current year | –946,201 | –845,587 | |
| b) Losses of the previous year | –620,472 | –576,343 | |
| c) Total | –1,566,673 | –1,421,930 | |
| 4. | Foreign currency translation | –8,920 | –1,814 |
| 5. | Change in consolidation scope | 0 | 10,343 |
| 6. | Other changes | 664 | 0 |
| 7. | Provisions for outstanding claims as at 31 Dec. | ||
| a) Gross | 2,095,145 | 2,028,238 | |
| b) Reinsurers' share | –223,336 | –281,334 | |
| c) Retention | 1,871,810 | 1,746,904 |
| 2005 | 2006 | 2007 | ||||
|---|---|---|---|---|---|---|
| 2008 | 2009 | 2010 | Total | |||
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 |
| 600,769 | 651,046 | 709,247 | 786,074 | 848,670 | 879,761 | |
| 931,472 | 990,164 | 1,099,380 | 1,196,623 | 1,288,176 | ||
| 1,011,823 | 1,081,757 | 1,193,312 | 1,296,470 | |||
| 1,049,911 | 1,122,965 | 1,239,518 | ||||
| 1,067,332 | 1,148,725 | |||||
| 1,086,589 | ||||||
| 1,086,589 | 1,148,725 | 1,239,518 | 1,296,470 | 1,288,176 | 879,761 | |
| 1,159,572 | 1,243,192 | 1,371,515 | 1,476,000 | 1,590,990 | 1,616,056 | |
| 72,983 | 94,466 | 131,997 | 179,530 | 302,813 | 736,294 | 1,518,083 |
| 445,624 | ||||||
| 1,963,708 | ||||||
| 131,437 | ||||||
| 2,095,145 | ||||||
| 31 Dec. 2010 | 31 Dec. 2009 | |
|---|---|---|
| € 000 | € 000 | |
| Property and casualty | ||
| Gross | 38,784 | 34,792 |
| Reinsurers' share | –33 | –99 |
| 38,751 | 34,693 | |
| Health | ||
| Gross | 61,454 | 62,476 |
| Reinsurers' share | 0 | 0 |
| 61,454 | 62,476 | |
| Life | ||
| Gross | 113,929 | 146,885 |
| Reinsurers' share | 0 | 0 |
| 113,929 | 146,885 | |
| In the consolidated financial statements | ||
| Gross | 214,167 | 244,153 |
| Reinsurers' share | –33 | –99 |
| Total (fully consolidated values) | 214,134 | 244,054 |
| of which profit-unrelated (retention) | 49,439 | 47,489 |
| of which profit-related (retention) | 164,695 | 196,565 |
| Gross | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| a) Provision for profit-unrelated premium refunds |
49,472 | 47,588 |
| of which property and casualty insurance | 31,024 | 27,110 |
| of which health insurance | 16,578 | 20,252 |
| of which life insurance | 1,869 | 226 |
| b) Provision for profit-related premium refunds and /or policyholder profit participation |
217,463 | 187,277 |
| of which property and casualty insurance | 7,760 | 7,682 |
| of which health insurance | 44,876 | 42,224 |
| of which life insurance | 164,827 | 137,372 |
| Deferred profit participation | –52,767 | 9,287 |
| Total (fully consolidated values) | 214,167 | 244,153 |
| Gross | 2010 | 2009 | |
|---|---|---|---|
| € 000 | € 000 | ||
| a) | Provision for profit-unrelated premium refunds, profit-related premium refunds and policyholder profit participation |
||
| As at 1 Jan. | 234,866 | 257,680 | |
| Changes due to: | |||
| Other changes | 32,069 | –22,815 | |
| As at 31 Dec. | 266,934 | 234,866 | |
| b) | Deferred profit participation | ||
| As at 1 Jan. | 9,287 | –216,675 | |
| Changes due to: | |||
| fluctuation in value, securities available for sale |
–105,922 | 186,504 | |
| actuarial gains and losses on defined benefit plans |
–8,712 | –2,004 | |
| revaluations affecting income | 52,580 | 41,461 | |
| As at 31 Dec. | –52,767 | 9,287 |
The latent profit sharing was changed to an asset item in the financial year 2010. On the basis of the business model used in life insurance and the management rules applied in the Group, this asset item will be reduced against the technical liabilities over the term of the policy. The appropriateness of the entire technical liability will also be regularly checked under a discounted cashflow model ("liability adequacy test").
| Gross | Unearned premiums |
Actuarial provisions | Provision for outstanding claims |
Provision for profit unrelated premium refunds |
Provision for profit related premium refunds and /or policyholder profit participation |
Other actuarial provisions |
Group total |
|---|---|---|---|---|---|---|---|
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
| Property and casualty | |||||||
| As at 31 Dec. 2009 | 536,212 | 40,280 | 2,028,238 | 27,110 | 7,682 | 23,775 | 2,663,298 |
| Exchange rate differences | 4,381 | –162 | –8,628 | 39 | 18 | 376 | –3,977 |
| Change in consolidation scope | 0 | 0 | 0 | ||||
| Portfolio changes | 78 | 0 | 78 | ||||
| Additions | 1,564 | 4,346 | 245 | 23,581 | 29,736 | ||
| Disposals | –3,347 | –471 | –185 | –24,532 | –28,535 | ||
| Premiums written | 2,230,033 | 2,230,033 | |||||
| Premiums earned | –2,193,102 | –2,193,102 | |||||
| Claims in reporting year | 1,782,966 | 1,782,966 | |||||
| Claims payments in reporting year | –955,866 | –955,866 | |||||
| Change in claims from previous years | –60,808 | –60,808 | |||||
| Claims payments in previous years | –690,756 | –690,756 | |||||
| As at 31 Dec. 2010 | 577,602 | 38,336 | 2,095,145 | 31,024 | 7,760 | 23,200 | 2,773,067 |
| Health | |||||||
| As at 31 Dec. 2009 | 16,357 | 2,375,317 | 167,447 | 20,252 | 42,224 | 596 | 2,622,192 |
| Exchange rate differences | 223 | 71 | 94 | –4 | –2 | 382 | |
| Change in consolidation scope | 0 | ||||||
| Portfolio changes | 0 | –8 | –8 | ||||
| Additions | 169,785 | 1,231 | 8,746 | –28 | 179,733 | ||
| Disposals | –10,122 | –4,900 | –6,094 | –10 | –21,126 | ||
| Premiums written | 804,930 | 804,930 | |||||
| Premiums earned | –804,290 | –804,290 | |||||
| Claims in reporting year | 646,568 | 646,568 | |||||
| Claims payments in reporting year | –496,184 | –496,184 | |||||
| Change in claims from previous years | –8,961 | –8,961 | |||||
| Claims payments in previous years | –136,130 | –136,130 | |||||
| As at 31 Dec. 2010 | 17,220 | 2,535,051 | 172,834 | 16,578 | 44,876 | 548 | 2,787,106 |
| Life | |||||||
| As at 31 Dec. 2009 | 0 | 13,639,771 | 104,259 | 226 | 146,659 | 23,305 | 13,914,220 |
| Exchange rate differences | 22,911 | 127 | –6 | 350 | –37 | 23,345 | |
| Change in consolidation scope | 0 | 0 | 0 | ||||
| Portfolio changes | 262,440 | 0 | 50 | 1,326 | 263,817 | ||
| Additions | 204,825 | 1,649 | 84,086 | 5,336 | 295,896 | ||
| Disposals | –223,592 | 0 | –119,085 | –6,287 | –348,964 | ||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims in reporting year | 1,680,679 | 1,680,679 | |||||
| Claims payments in reporting year | –1,592,981 | –1,592,981 | |||||
| Change in claims from previous years | 52,054 | 52,054 | |||||
| Claims payments in previous years | –119,745 | –119,745 | |||||
| As at 31 Dec. 2010 | 0 | 13,906,355 | 124,393 | 1,869 | 112,060 | 23,644 | 14,168,321 |
| Group total | |||||||
| As at 31 Dec. 2009 | 552,569 | 16,055,368 | 2,299,943 | 47,588 | 196,565 | 47,677 | 19,199,710 |
| Exchange rate differences | 4,604 | 22,820 | –8,407 | 28 | 368 | 337 | 19,750 |
| Change in consolidation scope | 0 | 0 | 0 | 0 | |||
| Portfolio changes | 78 | 262,440 | 0 | 50 | 1,318 | 263,887 | |
| Additions | 376,174 | 7,226 | 93,077 | 28,889 | 505,366 | ||
| Disposals | –237,060 | –5,371 | –125,364 | –30,830 | –398,625 | ||
| Premiums written | 3,034,963 | 3,034,963 | |||||
| Premiums earned | –2,997,392 | –2,997,392 | |||||
| Claims in reporting year | 4,110,213 | 4,110,213 | |||||
| Claims payments in reporting year | –3,045,031 | –3,045,031 | |||||
| Change in claims from previous years | –17,715 | –17,715 | |||||
| Claims payments in previous years | –946,631 | –946,631 | |||||
| As at 31 Dec. 2010 | 594,822 | 16,479,742 | 2,392,372 | 49,472 | 164,696 | 47,392 | 19,728,495 |
| Reinsurers' share | Unearned premiums |
Actuarial provisions | 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 | |||||||
| As at 31 Dec. 2009 | 19,613 | 443 | 281,334 | 99 | 0 | 3,795 | 305,285 |
| Exchange rate differences | 396 | –30 | 291 | –48 | 610 | ||
| Change in consolidation scope | 0 | 0 | 0 | ||||
| Portfolio changes | –560 | –1,034 | –1,594 | ||||
| Additions | 0 | 0 | 37 | 37 | |||
| Disposals | –37 | –66 | –616 | –719 | |||
| Premiums written | 159,178 | 159,178 | |||||
| Premiums earned | –159,179 | –159,179 | |||||
| Claims in reporting year | 23,478 | 23,478 | |||||
| Claims payments in reporting year | –9,665 | –9,665 | |||||
| Change in claims from previous years | –785 | –785 | |||||
| Claims payments in previous years | –70,284 | –70,284 | |||||
| As at 31 Dec. 2010 | 19,449 | 376 | 223,336 | 33 | 0 | 3,168 | 246,362 |
| Health | |||||||
| As at 31 Dec. 2009 | 728 | 1,447 | 534 | 0 | 0 | 0 | 2,710 |
| Exchange rate differences | 67 | 1 | 68 | ||||
| Change in consolidation scope | 0 | ||||||
| Portfolio changes | 0 | ||||||
| Additions | 0 | ||||||
| Disposals | –124 | –124 | |||||
| Premiums written | 2,866 | 2,866 | |||||
| Premiums earned | –2,355 | –2,355 | |||||
| Claims in reporting year | 62 | 62 | |||||
| Claims payments in reporting year | –32 | –32 | |||||
| Change in claims from previous years | 12 | 12 | |||||
| Claims payments in previous years | –23 | –23 | |||||
| As at 31 Dec. 2010 | 1,305 | 1,323 | 555 | 0 | 0 | 0 | 3,183 |
| Life | |||||||
| As at 31 Dec. 2009 | 0 | 446,708 | 11,894 | 0 | 0 | –146 | 458,456 |
| Exchange rate differences | 41 | 1 | 0 | 43 | |||
| Change in consolidation scope | 0 | 0 | |||||
| Portfolio changes | –11,316 | 1,303 | –10,013 | ||||
| Additions | 12,182 | –17 | 12,165 | ||||
| Disposals | –606 | 0 | 0 | –606 | |||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims in reporting year | 26,506 | 26,506 | |||||
| Claims payments in reporting year | –18,436 | –18,436 | |||||
| Change in claims from previous years | –1,733 | –1,733 | |||||
| Claims payments in previous years | –3,451 | –3,451 | |||||
| As at 31 Dec. 2010 | 0 | 447,009 | 16,084 | 0 | 0 | –163 | 462,930 |
| Group total | |||||||
| As at 31 Dec. 2009 | 20,341 | 448,599 | 293,762 | 99 | 0 | 3,649 | 766,450 |
| Exchange rate differences | 463 | 12 | 294 | 0 | –48 | 720 | |
| Change in consolidation scope | 0 | 0 | 0 | 0 | |||
| Portfolio changes | –560 | –11,316 | 269 | –11,607 | |||
| Additions | 12,182 | 0 | 20 | 12,202 | |||
| Disposals | –768 | –66 | –616 | –1,450 | |||
| Premiums written | 162,044 | 162,044 | |||||
| Premiums earned | –161,533 | –161,533 | |||||
| Claims in reporting year | 50,046 | 50,046 | |||||
| Claims payments in reporting year | –28,133 | –28,133 | |||||
| Change in claims from previous years | –2,507 | –2,507 | |||||
| Claims payments in previous years | –73,758 | –73,758 | |||||
| As at 31 Dec. 2010 | 20,755 | 448,708 | 239,974 | 33 | 0 | 3,005 | 712,475 |
| Retention | Unearned premiums |
Actuarial provisions | Provision for outstanding claims |
Provision for profit unrelated premium refunds |
Provision for profit related premium refunds and /or policyholder profit |
Other actuarial provisions |
Group total |
|---|---|---|---|---|---|---|---|
| € 000 | € 000 | € 000 | € 000 | participation € 000 |
€ 000 | € 000 | |
| Property and casualty | |||||||
| As at 31 Dec. 2009 | 516,599 | 39,837 | 1,746,904 | 27,011 | 7,682 | 19,980 | 2,358,013 |
| Exchange rate differences | 3,986 | –133 | –8,920 | 39 | 18 | 424 | –4,586 |
| Change in consolidation scope | 0 | 0 | 0 | ||||
| Portfolio changes | 638 | 1,034 | 0 | 1,672 | |||
| Additions | 1,564 | 4,346 | 245 | 23,544 | 29,699 | ||
| Disposals | –3,309 | –405 | –185 | –23,917 | –27,816 | ||
| Premiums written | 2,070,855 | 2,070,855 | |||||
| Premiums earned | –2,033,923 | –2,033,923 | |||||
| Claims in reporting year | 1,759,488 | 1,759,488 | |||||
| Claims payments in reporting year | –946,201 | –946,201 | |||||
| Change in claims from previous years | –60,022 | –60,022 | |||||
| Claims payments in previous years | –620,472 | –620,472 | |||||
| As at 31 Dec. 2010 | 558,154 | 37,959 | 1,871,810 | 30,991 | 7,760 | 20,032 | 2,526,706 |
| Health | |||||||
| As at 31 Dec. 2009 | 15,629 | 2,373,869 | 166,912 | 20,252 | 42,224 | 596 | 2,619,482 |
| Exchange rate differences | 156 | 71 | 92 | –4 | –2 | 314 | |
| Change in consolidation scope | 0 | ||||||
| Portfolio changes | 0 | –8 | –8 | ||||
| Additions | 169,785 | 1,231 | 8,746 | –28 | 179,733 | ||
| Disposals | –9,998 | –4,900 | –6,094 | –10 | –21,001 | ||
| Premiums written | 802,064 | 802,064 | |||||
| Premiums earned | –801,935 | –801,935 | |||||
| Claims in reporting year | 646,507 | 646,507 | |||||
| Claims payments in reporting year | –496,153 | –496,153 | |||||
| Change in claims from previous years | –8,973 | –8,973 | |||||
| Claims payments in previous years | –136,107 | –136,107 | |||||
| As at 31 Dec. 2010 | 15,914 | 2,533,728 | 172,279 | 16,578 | 44,876 | 548 | 2,783,923 |
| Life | |||||||
| As at 31 Dec. 2009 | 0 | 13,193,063 | 92,365 | 226 | 146,659 | 23,451 | 13,455,764 |
| Exchange rate differences | 22,870 | 126 | –6 | 350 | –37 | 23,303 | |
| Change in consolidation scope | 0 | 0 | 0 | ||||
| Portfolio changes | 273,757 | –1,303 | 50 | 1,326 | 273,830 | ||
| Additions | 192,643 | 1,649 | 84,086 | 5,353 | 283,731 | ||
| Disposals | –222,985 | 0 | –119,085 | –6,287 | –348,358 | ||
| Premiums written | 0 | ||||||
| Premiums earned | 0 | ||||||
| Claims in reporting year | 1,654,173 | 1,654,173 | |||||
| Claims payments in reporting year | –1,574,545 | –1,574,545 | |||||
| Change in claims from previous years | 53,787 | 53,787 | |||||
| Claims payments in previous years | –116,294 | –116,294 | |||||
| As at 31 Dec. 2010 | 0 | 13,459,346 | 108,309 | 1,869 | 112,060 | 23,806 | 13,705,390 |
| Group total | |||||||
| As at 31 Dec. 2009 | 532,228 | 15,606,770 | 2,006,182 | 47,490 | 196,565 | 44,028 | 18,433,260 |
| Exchange rate differences | 4,142 | 22,808 | –8,702 | 28 | 368 | 385 | 19,029 |
| Change in consolidation scope | 0 | 0 | 0 | 0 | |||
| Portfolio changes | 638 | 273,757 | –269 | 50 | 1,318 | 275,494 | |
| Additions | 363,992 | 7,226 | 93,077 | 28,869 | 493,163 | ||
| Disposals | –236,292 | –5,304 | –125,364 | –30,214 | –397,175 | ||
| Premiums written | 2,872,919 | 2,872,919 | |||||
| Premiums earned | –2,835,859 | –2,835,859 | |||||
| Claims in reporting year | 4,060,167 | 4,060,167 | |||||
| Claims payments in reporting year | –3,016,898 | –3,016,898 | |||||
| Change in claims from previous years | –15,208 | –15,208 | |||||
| Claims payments in previous years | –872,873 | –872,873 | |||||
| As at 31 Dec. 2010 | 574,067 | 16,031,033 | 2,152,398 | 49,439 | 164,695 | 44,387 | 19,016,019 |
| 31 Dec. 2010 | 31 Dec. 2009 | |
|---|---|---|
| € 000 | € 000 | |
| Gross | 4,142,636 | 3,416,231 |
| Reinsurers' share | –396,542 | –382,338 |
| Total | 3,746,094 | 3,033,893 |
As a general rule, the valuation of the technical provisions for unitlinked and index-linked life insurance policies corresponds to the investments in unit-linked and index-linked life insurance policies reported at current market values. The reinsurers' share is offset by deposits payable in the same amount.
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Loan liabilities | 48,505 | 55,356 |
| Up to 1 year | 1,440 | 1,608 |
| more than 1 year up to 5 years | 8,387 | 9,213 |
| more than 5 years | 38,678 | 44,535 |
| Total | 48,505 | 55,356 |
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Provisions for pension | 388,659 | 344,468 |
| Provision for severance payments | 135,717 | 122,369 |
| Total | 524,376 | 466,837 |
| 2010 | 2009 | |
| € 000 | € 000 | |
| As at 1 Jan. | 466,837 | 436,728 |
| Change in consolidation scope | 738 | 5,364 |
|---|---|---|
| Currency translation changes | 9 | –246 |
| Withdrawals for pension payments | –37,072 | –36,207 |
| Expenditure in the financial year | 41,080 | 41,496 |
| Actuarial profit and loss not affecting income | 52,784 | 19,701 |
| As at 31 Dec. | 524,376 | 466,837 |
Active employees with direct assurances to pension benefits, including members of the Management Board and leading executives in accordance with Section 80 paragraph 1 of the Stock Corporation Act, as well as active employees with direct assurances to pension benefits according to the "trade association recommendation for in-house and field sales staff" who approved the offer to transfer existing vested pension rights to ÖPAG Pensionskassen AG on the basis of concluded works agreements, are included in a contribution-based pension fund. The corresponding transfer amounts (the assurance cover) were paid to the ÖPAG Pensionskassen AG in 2008 in accordance with Section 48 of the Pension Fund Act. For the purpose of guaranteeing the level of the pension fund pension according to the previous direct assurances to pension benefits, those entitled to vested rights have a claim to payment of a (one-time) final pension fund contribution at the time of pension eligibility. No contributions are made for the benefit phase.
| Calculation factors applied | |||
|---|---|---|---|
| 2010 | |||
| Technical rate of interest | 4.75% | ||
| Valorisation of wages and salaries | 3.00% | ||
| Valorisation of pensions | 2.00% | ||
| Employee turnover rate | dependent on years of service | ||
| Accounting principles | AVÖ 2008 P – Pagler & Pagler / employees | ||
| 2009 | |||
| Technical rate of interest | 5.50% | ||
| Valorisation of wages and salaries | 3.00% | ||
| Valorisation of pensions | 2.00% | ||
| Employee turnover rate | dependent on years of service | ||
| Accounting principles | AVÖ 2008 P – Pagler & Pagler / employees | ||
| Specification of pension expenditures for pensions and similar commitments included in the income statement |
31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Current service cost | 15,266 | 14,244 |
| Interest cost | 25,872 | 27,282 |
| Income and expenditures due to budget changes | –59 | –30 |
| Total | 41,080 | 41,496 |
Under the contribution-orientated company pension scheme, the employer pays the fixed amounts into company pension funds. The employer has satisfied its obligation by making these contributions.
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Contributions to company pension funds | 1,814 | 1,564 |
| Balance sheet values previous year |
Currency translation changes |
Change in consolidation scope |
Utilisation | Reversals | Reclassifications | Additions | Balance sheet values financial year |
|
|---|---|---|---|---|---|---|---|---|
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
| Provision for unconsumed holidays | 27,310 | 73 | 0 | –2,173 | –4,910 | –3 | 2,499 | 22,798 |
| Provision for anniversary payments | 14,882 | 0 | 0 | –91 | –69 | 0 | 1,248 | 15,969 |
| 42,192 | 73 | 0 | –2,264 | –4,979 | –3 | 3,747 | 38,767 | |
| Other personnel provisions | 16,803 | 105 | 0 | –7,111 | –3,770 | 3 | 9,648 | 15,678 |
| Provision for customer relations and marketing | 37,248 | –74 | 0 | –33,912 | –1,773 | 0 | 39,480 | 40,970 |
| Provision for variable components of remuneration | 14,444 | 0 | 0 | –11,265 | –2,732 | 0 | 13,268 | 13,715 |
| Provision for legal and consulting expenses | 4,491 | 15 | 0 | –2,706 | –491 | –7 | 3,023 | 4,326 |
| Provision for premium adjustment of insurance contracts |
20,167 | 1,517 | 0 | –14,957 | –206 | 0 | 4,633 | 11,154 |
| Provision for portfolio maintenance commission | 5,106 | 103 | 0 | –551 | –2,800 | 0 | 1,075 | 2,933 |
| Other provisions | 51,876 | 184 | 0 | –25,317 | –14,735 | 7 | 61,592 | 73,607 |
| 150,135 | 1,849 | 0 | –95,818 | –26,506 | 3 | 132,721 | 162,383 | |
| Total | 192,327 | 1,922 | 0 | –98,082 | –31,485 | 0 | 136,468 | 201,149 |
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|
|---|---|---|
| Other provisions1) with a high probability of consumption (more than 90%) |
||
| up to 1year | 82,612 | 70,027 |
| more than 1 year up to 5 years | 2,872 | 4,311 |
| more than 5 years | 5,307 | 4,854 |
| 90,791 | 79,192 | |
| Other provisions1) with a lower probability of consumption (less than 90%) |
||
| up to 1 year | 70,434 | 66,745 |
| more than 1 year up to 5 years | 807 | 763 |
| more than 5 years | 350 | 3,435 |
| 71,591 | 70,943 | |
| Total | 162,383 | 150,135 |
1) Excl. unconsumed holidays and anniversary benefits.
| 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
||
|---|---|---|---|
| I. | Reinsurance liabilities | ||
| 1. Deposits held under reinsurance business ceded |
845,767 | 833,989 | |
| 2. Accounts payable under reinsurance operations |
43,783 | 38,598 | |
| 889,550 | 872,587 | ||
| II. | Other payables | ||
| Liabilities under insurance business | |||
| Liabilities under direct insurance business | |||
| to policyholders | 134,321 | 145,887 | |
| to intermediaries | 102,385 | 92,873 | |
| to insurance companies | 10,147 | 8,546 | |
| 246,852 | 247,306 | ||
| Liabilities to credit institutions | 1,270 | 5,378 | |
| Other liabilities | 412,217 | 398,197 | |
| of which for taxes | 63,640 | 57,734 | |
| of which for social security | 11,477 | 11,134 | |
| of which from fund consolidation | 197,156 | 174,585 | |
| Total other liabilities | 660,339 | 650,881 | |
| Subtotal | 1,549,889 | 1,523,468 | |
| of which liabilities with the remaining term of | |||
| Up to 1 year | 860,080 | 846,241 | |
| more than 1 year up to 5 years | 8,588 | 8,512 | |
| more than 5 years | 681,222 | 668,715 | |
| 1,549,889 | 1,523,468 | ||
| III. | Other liabilities | ||
| Deferred income | 14,662 | 10,854 | |
| Total payables and other liabilities | 1,564,551 | 1,534,321 |
The item "Deferred income" comprises the balance of the deferred income regarding the indirect business settlement.
| 31 Dec. 2010 | 31 Dec. 2009 | |
|---|---|---|
| € 000 | € 000 | |
| Liabilities from income tax | 56,170 | 48,732 |
| of which liabilities with the remaining term of | ||
| Up to 1 year | 4,765 | 5,192 |
| more than 1 year up to 5 years | 51,405 | 43,540 |
| more than 5 years | 0 | 0 |
| Cause of origin | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Actuarial items | 198,187 | 192,846 |
| Untaxed reserves | 25,842 | 26,062 |
| Shares in affiliated companies | 28,430 | 28,431 |
| Investments | 31,394 | 38,059 |
| Other | 30,161 | 27,102 |
| Total | 314,014 | 312,499 |
| of which not affecting income | –2,959 | 12,535 |
| Direct business | 2010 | 2009 |
|---|---|---|
| € 000 | € 000 | |
| Property and casualty | 2,559,004 | 2,417,138 |
| Health | 970,355 | 937,417 |
| Life | 1,797,586 | 1,602,929 |
| Total (fully consolidated values) | 5,326,946 | 4,957,485 |
| Of which written in: | ||
| Austria | 3,111,528 | 3,083,846 |
| other member states of the EU and other signatory states of the Treaty on the European Economic |
||
| Area | 2,021,791 | 1,743,680 |
| Other countries | 193,626 | 129,959 |
| Total (fully consolidated values) | 5,326,946 | 4,957,485 |
| Indirect business | 2010 € 000 |
2009 € 000 |
|---|---|---|
| Property and casualty | 31,081 | 29,080 |
| Health | 4 | 15 |
| Life | 21,108 | 25,072 |
| Total (fully consolidated values) | 52,193 | 54,167 |
| 2010 | 2009 | |
|---|---|---|
| € 000 | € 000 | |
| Total (fully consolidated values) | 5,379,138 | 5,011,651 |
| Premiums written in property and casualty insurance | 2010 | 2009 |
|---|---|---|
| € 000 | € 000 | |
| Direct business | ||
| Fire and business interruption insurance | 216,218 | 204,989 |
| Haushold insurance | 194,057 | 183,968 |
| Other property insurance | 236,108 | 229,600 |
| Motor TPL insurance | 638,285 | 590,316 |
| Other motor insurance | 491,548 | 480,211 |
| Casualty insurance | 280,717 | 265,765 |
| Liability insurance | 242,943 | 231,979 |
| Legal expenses insurance | 62,067 | 58,698 |
| Marine, aviation and transport insurance | 116,535 | 103,134 |
| Other insurance | 80,527 | 68,478 |
| Total | 2,559,004 | 2,417,138 |
| Indirect business | ||
| Marine, aviation and transport insurance | 2,628 | 3,070 |
| Other insurance | 28,452 | 26,010 |
| Total | 31,081 | 29,080 |
| Total direct and indirect business (fully consolidated values) |
2,590,085 | 2,446,218 |
| Property and casualty 120,945 |
Reinsurance premiums ceded | 2010 € 000 |
2009 € 000 |
|---|---|---|---|
| 134,184 | |||
| Health 3,742 |
2,344 | ||
| Life 77,728 |
80,726 | ||
| Total (fully consolidated values) 202,414 |
217,254 |
| 2010 € 000 |
2009 € 000 |
|
|---|---|---|
| Property and casualty | 2,433,276 | 2,290,120 |
| Gross | 2,555,034 | 2,431,782 |
| Reinsurers' share | –121,758 | –141,662 |
| Health | 966,213 | 933,867 |
| Gross | 969,450 | 935,521 |
| Reinsurers' share | –3,237 | –1,655 |
| Life | 1,741,357 | 1,546,171 |
| Gross | 1,819,102 | 1,626,904 |
| Reinsurers' share | –77,745 | –80,733 |
| Total (fully consolidated values) | 5,140,847 | 4,770,158 |
| Premiums earned in indirect business | 2010 | 2009 |
|---|---|---|
| € 000 | € 000 | |
| Posted immediately | 4,529 | 3,389 |
| posted after up to 1 year | 27,045 | 25,699 |
| posted after more than 1 year | 0 | 0 |
| Property and casualty | 31,574 | 29,088 |
| Posted immediately | 4 | 15 |
| posted after up to 1 year | 0 | 0 |
| posted after more than 1 year | 0 | 0 |
| Health | 4 | 15 |
| Posted immediately | 4,003 | 3,960 |
| posted after up to 1 year | 17,105 | 21,112 |
| posted after more than 1 year | 0 | 0 |
| Life | 21,108 | 25,072 |
| Total (fully consolidated values) | 52,686 | 54,175 |
| Earnings from indirect business | 2010 € 000 |
2009 € 000 |
|---|---|---|
| Property and casualty | 5,835 | 3,425 |
| Health | –7 | 19 |
| Life | 4,229 | 4,262 |
| Total (fully consolidated values) | 10,057 | 7,706 |
| Reinsurance commission and profit shares from reinsurance business ceded |
2010 € 000 |
2009 € 000 |
|---|---|---|
| Property and casualty | 9,204 | 9,656 |
| Health | 55 | 90 |
| Life | 7,315 | 5,076 |
| Total (fully consolidated values) | 16,574 | 14,821 |
| By segment Property and casualty Health 2010 2009 2010 2009 € 000 € 000 € 000 € 000 I. Properties held as investments 3,932 17,005 6,065 5,571 II. Shares in associated companies 984 5,140 12,726 227 III. Variable-yield securities 33,699 8,352 10,018 5,534 1. Available for sale 29,998 6,990 5,618 4,590 2. At fair value through profit and loss 3,701 1,361 4,400 944 IV. Fixed interest securities 52,262 80,024 94,424 57,117 1. Held to maturity 1,392 1,575 2,870 3,269 2. Available for sale 50,210 76,664 89,600 49,781 3. At fair value through profit or loss 660 1,785 1,955 4,066 V. Loans and other investments 25,946 34,353 24,948 27,053 1. Loans 16,372 17,441 23,892 25,700 2. Other investments 9,575 16,911 1,056 1,353 VI. Derivative financial instruments (held for trading) –8,247 –2,602 –13,333 2,790 VII. Expenditure for asset management, interest charges and other expenses –17,252 –24,508 –7,327 –3,375 |
||||||
|---|---|---|---|---|---|---|
| Total (fully consolidated values) | 91,323 | 117,764 | 127,521 | 94,917 |
The expenditures for shares in associated companies in the previous year result from depreciations of STRABAG SE and Medicur-Holding Gesellschaft m.b.H.
| By income type | Ordinary income | Write-ups and unrealised capital gains | Realised capital gains | ||||
|---|---|---|---|---|---|---|---|
| 2010 € 000 |
2009 € 000 |
2010 € 000 |
2009 € 000 |
2010 € 000 |
2009 € 000 |
||
| I. Properties held as investments |
57,338 | 62,099 | 0 | 0 | 378 | 75,838 | |
| II. Shares in associated companies |
19,785 | 39,672 | 0 | 0 | 2,234 | 2,391 | |
| III. Variable-yield securities |
44,316 | 91,323 | 131,676 | 145,904 | 90,282 | 91,641 | |
| 1. Available for sale | 34,070 | 30,617 | 27,730 | 57,526 | 70,017 | 55,693 | |
| 2. At fair value through profit or loss |
10,246 | 60,706 | 103,946 | 88,378 | 20,266 | 35,948 | |
| IV. Fixed interest securities |
504,341 | 477,922 | 175,204 | 38,467 | 177,871 | 204,415 | |
| 1. Held to maturity |
22,431 | 25,170 | 0 | 0 | 0 | 1,257 | |
| 2. Available for sale |
464,482 | 438,533 | 154,207 | 3,337 | 176,153 | 200,954 | |
| 3. At fair value through profit or loss |
17,428 | 14,220 | 20,997 | 35,130 | 1,718 | 2,204 | |
| V. Loans and other investments |
152,744 | 175,724 | 3,344 | 10,976 | 14,799 | 19,826 | |
| 1. Loans |
102,853 | 137,536 | 557 | 1,043 | 14,799 | 19,826 | |
| 2. Other investments |
49,890 | 38,188 | 2,788 | 9,933 | 0 | 0 | |
| VI. Derivative financial instruments (held for trading) |
–12,766 | 1,128 | 63,267 | 57,262 | 48,680 | 146,763 | |
| VII. Expenditure for asset management, interest charges and | |||||||
| other expenses | –55,073 | –37,314 | 0 | 0 | 0 | 0 | |
| Total (fully consolidated values) | 710,684 | 810,554 | 373,491 | 252,609 | 334,244 | 540,874 |
The updating of the value adjustment concerns both appreciation and depreciation of financial assets, excluding assets held for trading and financial assets at fair value through profit or loss. Interest income from impaired assets amounts to €25,173,000 (2009: €33,583,000). The net investment income of €872,316,000 includes realised and unrealised profits and losses amounting to €161,632,000, which includes currency profits of € 12,292,000. In addition, positive currency effects amounting to €28,256,000 were recorded directly under equity. The effects are mainly the result of investments in USD and GBP.
The current income from properties held as financial investments includes rental income of €86,526,000 (2009: €83,649,000) and direct operational expenses of €29,188,000 (2009: €21,602,000).
| Of which securities, available for sale type of investment |
Ordinary income | Write-ups and unrealised capital gains | Realised capital gains | ||||
|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | ||
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | ||
| III. Variable-yield securities |
|||||||
| 1. Available for sale | 34,070 | 30,617 | 27,730 | 57,526 | 70,017 | 55,693 | |
| Shares in affiliated companies | 62 | –1,127 | 4 | 0 | 1,279 | 2,503 | |
| Shares | 16,615 | 16,490 | 6,473 | 33 | 44,616 | 38,902 | |
| Equity funds | 2,520 | 2,950 | 3,942 | 88 | 11,522 | 10,221 | |
| Debenture bonds not capital-guaranteed | 7,652 | 9,829 | 17,311 | 57,331 | 183 | 3,051 | |
| Other variable-yield securities | 2,166 | 1,822 | 0 | 0 | 1,231 | 0 | |
| Participating interests and other investments | 5,055 | 653 | 0 | 74 | 11,185 | 1,015 | |
| IV. Fixed interest securities |
|||||||
| 2. Available for sale | |||||||
| Fixed-interest securities | 464,482 | 438,533 | 154,207 | 3,337 | 176,153 | 200,954 |
| Life | Group | ||
|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 |
| € 000 | € 000 | € 000 | € 000 |
| 6,006 | 73,917 | 16,003 | 96,493 |
| 8,302 | –67,662 | 22,012 | –62,295 |
| 102,707 | 57,469 | 146,424 | 71,355 |
| 37,211 | 10,836 | 72,827 | 22,417 |
| 65,496 | 46,633 | 73,597 | 48,938 |
| 583,085 | 345,431 | 729,771 | 482,571 |
| 18,169 | 21,583 | 22,431 | 26,427 |
| 541,361 | 296,961 | 681,170 | 423,407 |
| 23,555 | 26,887 | 26,170 | 32,738 |
| 75,286 | 121,063 | 126,181 | 182,469 |
| 36,054 | 96,163 | 76,318 | 139,305 |
| 39,232 | 24,900 | 49,863 | 43,164 |
| –91,421 | 18,188 | –113,001 | 18,376 |
| –30,494 | –9,431 | –55,073 | –37,314 |
| 653,472 | 538,976 | 872,316 | 751,656 |
| Write-offs and unrealised capital losses | Realised capital losses | Group | of which value adjustment | |||||
|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
| –40,493 | –41,382 | –1,219 | –62 | 16,003 | 96,493 | –5,704 | –2,612 | |
| –7 | –104,253 | 0 | –105 | 22,012 | –62,295 | 0 | 0 | |
| –110,410 | –227,757 | –9,440 | –29,755 | 146,424 | 71,355 | –29,680 | –44,807 | |
| –53,029 | –110,352 | –5,961 | –11,067 | 72,827 | 22,417 | –29,680 | –44,807 | |
| –57,381 | –117,405 | –3,479 | –18,688 | 73,597 | 48,938 | 0 | 0 | |
| –96,908 | –206,712 | –30,736 | –31,520 | 729,771 | 482,571 | –8,283 | –193,608 | |
| 0 | 0 | 0 | 0 | 22,431 | 26,427 | 0 | 0 | |
| –84,027 | –189,649 | –29,645 | –29,767 | 681,170 | 423,407 | –8,283 | –193,608 | |
| –12,882 | –17,063 | –1,091 | –1,753 | 26,170 | 32,738 | 0 | 0 | |
| –23,117 | –13,669 | –21,590 | –10,388 | 126,181 | 182,469 | –20,302 | –8,711 | |
| –20,302 | –8,711 | –21,589 | –10,388 | 76,318 | 139,305 | –20,302 | –8,711 | |
| –2,815 | –4,958 | 0 | 0 | 49,863 | 43,164 | 0 | 0 | |
| –37,218 | –84,509 | –174,964 | –102,267 | –113,001 | 18,376 | 0 | 0 | |
| 0 | 0 | 0 | 0 | –55,073 | –37,314 | 0 | 0 | |
| –308,154 | –678,283 | –237,949 | –174,098 | 872,316 | 751,656 | –63,969 | –249,738 |
| Write-offs and unrealised capital losses | Realised capital losses | Group | of which value adjustment | |||||
|---|---|---|---|---|---|---|---|---|
| 2010 € 000 |
2009 € 000 |
2010 € 000 |
2009 € 000 |
2010 € 000 |
2009 € 000 |
2010 € 000 |
2009 € 000 |
|
| –53,029 | –110,352 | –5,961 | –11,067 | 72,827 | 22,417 | –29,680 | –44,807 | |
| –657 | –154 | –422 | –226 | 267 | 997 | 0 | 0 | |
| –31,835 | –77,973 | –5,922 | –4,372 | 29,946 | –26,921 | –26,033 | –65,542 | |
| –438 | –10,980 | 403 | –3,337 | 17,948 | –1,057 | –259 | –11,091 | |
| –19,855 | –10,801 | –20 | –23 | 5,271 | 59,388 | –3,145 | 51,574 | |
| 0 | –3,400 | 0 | –3,035 | 3,397 | –4,613 | 0 | –3,400 | |
| –243 | –7,044 | 0 | –75 | 15,997 | –5,377 | –243 | –16,350 | |
| –84,027 | –189,649 | –29,645 | –29,767 | 681,170 | 423,407 | –8,283 | –193,608 |
| 2010 | 2009 | |
|---|---|---|
| € 000 | € 000 | |
| Other actuarial income | 18,369 | 16,175 |
| Property and casualty | 14,582 | 12,666 |
| Health | 463 | 466 |
| Life | 3,324 | 3,043 |
| Other non-actuarial income | 87,772 | 40,755 |
| Property and casualty | 66,694 | 23,963 |
| Health | 5,025 | 2,217 |
| Life | 16,053 | 14,575 |
| of which | ||
| Services rendered | 12,586 | 12,068 |
| Changes in exchange rates | 54,674 | 7,047 |
| Other | 20,511 | 21,639 |
| Other income | 9,401 | 3,695 |
| From foreign currency translation | 618 | 1,621 |
| From other | 8,783 | 2,073 |
| Total (fully consolidated values) | 115,542 | 60,624 |
| Gross | Reinsurers' share | Retention | ||||
|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
| € 000 | € 000 | € 000 | € 000 | € 000 | € 000 | |
| Property and casualty | ||||||
| Expenditure for claims | ||||||
| Claims paid | 1,669,218 | 1,563,552 | –79,731 | –117,552 | 1,589,487 | 1,446,000 |
| Change in provision for outstanding claims | 61,464 | 99,616 | 52,034 | –25,608 | 113,498 | 74,008 |
| Total | 1,730,682 | 1,663,167 | –27,697 | –143,160 | 1,702,985 | 1,520,008 |
| Change in actuarial provisions | –1,910 | –2,514 | 37 | 38 | –1,872 | –2,475 |
| Change in other actuarial provisions | 1,465 | 310 | 18 | 15 | 1,483 | 325 |
| Expenditure for profit-unrelated and profit-related premium refunds |
38,231 | 34,620 | 1 | –159 | 38,232 | 34,461 |
| Total amount of benefits | 1,768,469 | 1,695,583 | –27,641 | –143,265 | 1,740,828 | 1,552,318 |
| Health | ||||||
| Expenditure for claims | ||||||
| Claims paid | 643,186 | 628,850 | –581 | –880 | 642,605 | 627,970 |
| Change in provision for outstanding claims | 5,090 | 10,632 | –23 | 83 | 5,067 | 10,715 |
| Total | 648,276 | 639,482 | –604 | –797 | 647,673 | 638,685 |
| Change in actuarial provisions | 159,659 | 147,911 | 124 | 129 | 159,783 | 148,039 |
| Change in other actuarial provisions | –8 | –6 | 0 | 0 | –8 | –6 |
| Expenditure for profit-related and profit-unrelated | ||||||
| premium refunds | 31,906 | 25,046 | 0 | 0 | 31,906 | 25,046 |
| Total amount of benefits | 839,833 | 812,433 | –479 | –668 | 839,354 | 811,765 |
| Life | ||||||
| Expenditure for claims | ||||||
| Claims paid | 1,740,769 | 1,440,216 | –77,363 | –80,300 | 1,663,406 | 1,359,916 |
| Change in provision for outstanding claims | 20,005 | 4,851 | –4,189 | 149 | 15,816 | 5,001 |
| Total | 1,760,773 | 1,445,067 | –81,552 | –80,151 | 1,679,222 | 1,364,917 |
| Change in actuarial provisions | –16,951 | 147,371 | 1,824 | –4,020 | –15,127 | 143,351 |
| Change in other actuarial provisions | –4 | 602 | 0 | 0 | –4 | 602 |
| Expenditure for profit-unrelated and profit-related premium refunds and/or (deferred) profit participation |
213,803 | 183,341 | 0 | 151 | 213,803 | 183,492 |
| Total amount of benefits | 1,957,621 | 1,776,382 | –79,728 | –84,020 | 1,877,893 | 1,692,362 |
| Total (fully consolidated values) | 4,565,923 | 4,284,398 | –107,848 | –227,953 | 4,458,075 | 4,056,445 |
| 2010 | 2009 | ||
|---|---|---|---|
| Mio. € | Mio. € | ||
| Property and casualty | |||
| a) | Acquisition costs | ||
| Payments | 552,335 | 521,664 | |
| Change in deferred acquisition costs | –9,704 | –2,975 | |
| b) | Other operating expenses | 286,879 | 279,562 |
| 829,510 | 798,251 | ||
| Health | |||
| a) | Acquisition costs | ||
| Payments | 91,974 | 87,624 | |
| Change in deferred acquisition costs | –2,780 | –8,670 | |
| b) | Other operating expenses | 52,300 | 47,109 |
| 141,494 | 126,063 | ||
| Life | |||
| a) | Acquisition costs | ||
| Payments | 299,169 | 242,272 | |
| Change in deferred acquisition costs | 5,007 | 14,438 | |
| b) | Other operating expenses | 87,051 | 86,182 |
| 391,227 | 342,892 | ||
| Total (fully consolidated values) | 1,362,231 | 1,267,206 |
| 2010 € 000 |
2009 € 000 |
||
|---|---|---|---|
| a) | Other actuarial expenses | 85,408 | 85,234 |
| Property and casualty | 34,749 | 37,124 | |
| Health | 5,418 | 4,509 | |
| Life | 45,241 | 43,601 | |
| b) | Other non-actuarial expenses | 29,312 | 32,874 |
| Property and casualty | 24,055 | 26,046 | |
| Health | 470 | 297 | |
| Life | 4,787 | 6,531 | |
| of which | |||
| Services rendered | 3,633 | 3,278 | |
| Exchange rate losses | 6,623 | 4,315 | |
| Motor vehicle registration | 9,971 | 9,871 | |
| Other | 9,084 | 15,410 | |
| c) | Other expenses | 11,477 | 1,839 |
| For foreign currency translation | 3,639 | 129 | |
| For other | 7,838 | 1,710 | |
| Total (fully consolidated values) | 126,196 | 119,947 |
| Income tax | 2010 € 000 |
2009 € 000 |
|---|---|---|
| Actual tax in reporting year | 31,425 | 32,580 |
| Actual tax in previous year | 1,905 | –6,241 |
| Deferred tax | 17,651 | 18,022 |
| Total (fully consolidated values) | 50,981 | 44,362 |
| Reconciliation statement | 2010 € 000 |
2009 € 000 |
|
|---|---|---|---|
| A. | Profit from ordinary activities | 146,033 | 100,026 |
| B. | Anticipated tax expenditure (A.*Group tax rate) | 36,508 | 25,007 |
| Adjusted by tax effects from | |||
| 1. Tax-free investment income | –12,641 | 4,369 | |
| 2. Other | 27,113 | 14,986 | |
| Amortisation of goodwill | 652 | 1,945 | |
| Tax-neutral consolidation effect | 1,960 | –227 | |
| Other non-deductible expenses/other tax exempt income |
2,972 | 697 | |
| Changes in tax rates | 0 | 0 | |
| Deviations in tax rates | 17,079 | 23,423 | |
| Taxes previous years | 1,905 | –6,241 | |
| Lapse of loss carried forward and other | 2,546 | –4,611 | |
| C. | Income tax expenditure | 50,981 | 44,362 |
| Average effective tax burden in % | 34.9 | 44.4 |
The corporate income tax rate applicable to all Group segments was 25%, as expected. To the extent that the minimum taxation is applied in life insurance at an assumed profit participation of 85%, this leads to a deviating higher corporate tax rate.
| Personnel expenses1) | 2010 | 2009 |
|---|---|---|
| € 000 | € 000 | |
| Salaries and wages | 374,056 | 351,141 |
| Expenses for severance payments | 17,457 | 18,084 |
| Expenses for employee pensions | 23,672 | 27,993 |
| Expenditure on mandatory social security contributions | ||
| as well as income-based charges and compulsory | ||
| contributions | 103,659 | 100,397 |
| Other social expenditures | 11,434 | 10,237 |
| Total | 530,280 | 507,852 |
| of which business development | 142,651 | 142,055 |
| of which administration | 367,647 | 343,175 |
1) The data are based on an IFRS valuation.
| Average number of employees | 2010 | 2009 |
|---|---|---|
| Total | 15,066 | 15,107 |
| of which business development | 6,148 | 6,345 |
| of which administration | 8,918 | 8,762 |
| 2010 | 2009 | |
|---|---|---|
| € 000 | € 000 | |
| Expenses for severance payments and employee pensions amounted to: |
||
| Members of the Management Board and | ||
| executive employees, in accordance with Section | ||
| 80 paragraph 1 of the Stock Corporation Act | 4,820 | 4,224 |
| Other employees | 44,092 | 30,052 |
Both figures include the expenditure for pensioners and surviving dependants (basis: Austrian Commercial Code valuation). The indicated expenses were charged to the Group companies based on defined company processes.
The parent company of the UNIQA Group is UNIQA Versicherungen AG. This company is registered in the company register 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 | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Receivables and liabilities with affiliated and associated companies, as well as related persons |
||
| Receivables | 7,732 | 10,719 |
| Other receivables | 7,732 | 10,719 |
| Affiliated companies | 7,732 | 10,430 |
| Associated companies | 0 | 289 |
| Liabilities | 2,848 | 5,742 |
| Other liabilities | 2,848 | 5,742 |
| Affiliated companies | 2,749 | 5,677 |
| Associated companies | 98 | 65 |
| Income and expenses of affiliated companies as well as related persons |
2010 Tsd. € |
2009 Tsd. € |
| Income | 25 | 1,949 |
| Investment income | 25 | 1,941 |
| Affiliated companies | 25 | 0 |
| Related companies | 0 | 1,941 |
| Other income | 0 | 8 |
| Affiliated companies | 0 | 8 |
| Expenses | 4 | 8 |
| Other expenses | 4 | 8 |
| Affiliated companies | 4 | 8 |
There were no major transactions with related companies during this financial year. In July 2009, Raiffeisen Versicherung AG and UNIQA Personenversicherung AG each sold roughly 2.4 million shares in Leipnik-Lundenburger Invest Beteiligungs AG to Raiffeisen-Invest-Gesellschaft m.b.H., which is an associated company of Raiffeisen Zentralbank AG. As UNIQA Versicherungen AG is included in the Group consolidated financial statements of Raiffeisen Zentralbank as an associated company, this concerns a business with associated companies in accordance with IAS 24. Raiffeisen Versicherung AG and UNIQA Personenversicherung AG realised capital gains of €1,941,000 from this transaction. There are no outstanding balances from these transactions as at 31 December 2009.
| Other financial commitments and contingent liabilities | 31 Dec. 2010 € 000 |
31 Dec. 2009 € 000 |
|---|---|---|
| Contingent liabilities from risks of litigation | 11,398 | 19,704 |
| Austria | 0 | 0 |
| Foreign | 11,398 | 19,704 |
| Other contingent liabilities | 100 | 1,390 |
| Austria | 0 | 0 |
| Foreign | 100 | 1,390 |
| Total | 11,499 | 21,094 |
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.
| 2010 € 000 |
2009 € 000 |
|
|---|---|---|
| Current leasing expenses | 2,099 | 1,017 |
| Future leasing payments due to the financing of the new UNIQA Headquarters in Vienna |
||
| Up to 1 year | 5,256 | 5,287 |
| more than 1 year up to 5 years | 20,831 | 21,034 |
| more than 5 years | 18,157 | 33,574 |
| Total | 44,244 | 59,895 |
| Income from subleasing | 343 | 508 |
UNIQA moved into the new headquarters – the UNIQA Tower – in 2004. The aforementioned leasing obligations are based on the investment expenditures in connection with a specific calculatory rate of interest yield.
The expenses for the auditor in the financial year were €1,818,000 (2009: € 1,895,000), of which € 262,000 (2009: € 265,000) can be attributed to expenses for the audit, € 487,000 (2009: € 406,000) for consultancy services, € 901,000 (2009: € 1,153,000) for other confirmation services, and € 169,000 (2009: € 72,000) to other services.
| Company | Type | Location | Equity € mllion1) |
Share in equity %2) |
|---|---|---|---|---|
| Domestic insurance companies | ||||
| UNIQA Versicherungen AG (Group Holding Company) | 1029 Vienna | |||
| UNIQA Sachversicherung AG | Full | 1029 Vienna | 127.4 | 100.0 |
| UNIQA Personenversicherung AG | Full | 1029 Vienna | 424.2 | 63.4 |
| Salzburger Landes-Versicherung AG | Full | 5020 Salzburg | 21.6 | 100.0 |
| Raiffeisen Versicherung AG | Full | 1029 Vienna | 1,336.4 | 100.0 |
| CALL DIRECT Versicherung AG | Full | 1029 Vienna | 12.2 | 100.0 |
| FINANCE LIFE Lebensversicherung AG | Full | 1029 Vienna | 42.0 | 100.0 |
| SK Versicherung Aktiengesellschaft | Equity | 1050 Vienna | 7.7 | 25.0 |
| Foreign insurance companies | ||||
| UNIQA Assurances S.A. | Full | Switzerland, Geneva | 13.0 | 100.0 |
| UNIQA Re AG | Full | Switzerland, Zurich | 53.5 | 100.0 |
| UNIQA Assicurazioni S.p.A. | Full | Italy, Milan | 218.6 | 100.0 |
| UNIQA poistovńa a.s. | Full | Slovakia, Bratislava | 31.3 | 99.9 |
| UNIQA pojištovna, a.s. | Full | Czech Republic, Prague | 47.8 | 100.0 |
| UNIQA osiguranje d.d. | Full | Croatia, Zagreb | 9.2 | 80.0 |
| UNIQA Protezione S.p.A. | Full | Italy, Udine | 16.2 | 89.8 |
| UNIQA Towarzystwo Ubezpieczen S.A. | Full | Poland, Lodz | 62.1 | 68.5 |
| UNIQA Towarzystwo Ubezpieczen na Zycie S.A. | Full | Poland, Lodz | 12.8 | 69.8 |
| UNIQA Biztosító Zrt. | Full | Hungary, Budapest | 43.6 | 85.0 |
| UNIQA Lebensversicherung AG | Full | Liechtenstein, Vaduz | 5.7 | 100.0 |
| UNIQA Versicherung AG | Full | Liechtenstein, Vaduz | 5.5 | 100.0 |
| Mannheimer AG Holding | Full | Germany, Mannheim | 66.0 | 91.4 |
| Mannheimer Versicherung AG | Full | Germany, Mannheim | 49.1 | 100.0 |
| mamax Lebensversicherung AG | Full | Germany, Mannheim | 8.7 | 100.0 |
| Mannheimer Krankenversicherung AG | Full | Germany, Mannheim | 14.8 | 100.0 |
| UNIQA Previdenza S.p.A. | Full | Italy, Milan | 122.9 | 100.0 |
| UNIQA Osiguranje d.d. | Full | Bosnia-Herzegovina, Sarajevo | 6.4 | 99.8 |
| UNIQA Insurance plc | Full | Bulgaria, Sofia | 7.0 | 99.9 |
| UNIQA Life Insurance plc | Full | Bulgaria, Sofia | 4.1 | 99.7 |
| UNIQA životno osiguranje a.d. | Full | Serbia, Belgrade | 7.9 | 91.4 |
| Insurance company "UNIQA" | Full | Ukraine, Kiev | 6.1 | 80.3 |
| UNIQA LIFE | Full | Ukraine, Kiev | 1.0 | 100.0 |
| UNIQA životno osiguranje a.d. | Full | Montenegro, Podgorica | 1.8 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Full | Serbia, Belgrade | 6.4 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Full | Montenegro, Podgorica | 2.7 | 100.0 |
| UNIQA Asigurari S.A. | Full | Rumania, Bucharest | 25.1 | 100.0 |
| UNIQA Life S.A. (formerly AGRAS Asigurari S.A.) | Full | Rumania, Bucharest | 7.8 | 100.0 |
| UNIQA Health Insurance AD | Full | Bulgaria, Sofia | 0.4 | 100.0 |
| Raiffeisen Life Insurance Company LLC | Full | Russia, Moscow | 5.8 | 75.0 |
| UNIQA Life S.p.A. | Full | Italy, Milan | 21.1 | 90.0 |
| SIGAL UNIQA Group AUSTRIA Sh.A. | Full | Albania, Tirana | 20.5 | 68.6 |
| UNIQA A.D. Skopje | Full | Macedonia, Skopje | 3.8 | 100.0 |
| SIGAL LIFE UNIQA Group AUSTRIA Sh.A. | Full | Albania, Tirana | 3.6 | 100.0 |
| SIGAL UNIQA GROUP AUSTRIA SH.A. | Full | Kosovo, Pristina | 3.4 | 100.0 |
| Company | Type | Location | Equity € mllion1) |
Share in equity %2) |
|---|---|---|---|---|
| Group domestic service companies | ||||
| 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 | 1.2 | 100.0 |
| Raiffeisen Versicherungsmakler GmbH | Equity 4) |
6900 Bregenz | 0.2 | 50.0 |
| Versicherungsbüro Dr. Ignaz Fiala Gesellschaft m.b.H. | 3) | 1010 Vienna | 33.3 | |
| RSG – Risiko Service und Sachverständigen GmbH | 1029 Vienna | 100.0 | ||
| Dr. E. Hackhofer EDV-Softwareberatung Gesellschaft m.b.H. |
Full | 1070 Vienna | 0.9 | 51.0 |
| UNIQA Software-Service GmbH | Full | 1029 Vienna | 0.7 | 100.0 |
| SYNTEGRA Softwarevertrieb und Beratung GmbH | Full | 3820 Raabs | 0.2 | 100.0 |
| UNIQA Finanz-Service GmbH | Full | 1020 Vienna | 0.5 | 100.0 |
| UNIQA Alternative Investments GmbH | Full | 1020 Vienna | 2.8 | 100.0 |
| UNIQA International Versicherungs-Holding GmbH | Full | 1029 Vienna | 115.9 | 100.0 |
| UNIQA International Beteiligungs-Verwaltungs GmbH | Full | 1029 Vienna | 671.6 | 100.0 |
| Alopex Organisation von Geschäftskontakten GmbH | 3) | 1020 Vienna | 100.0 | |
| RC RISK-CONCEPT Versicherungsmakler GmbH | 3) | 1029 Vienna | 100.0 | |
| Allfinanz Versicherungs- und Finanzservice GmbH | Full | 1010 Vienna | 0.2 | 100.0 |
| Direct Versicherungsvertriebs-GesmbH | 3) | 1020 Vienna | 100.0 | |
| Assistance Beteiligungs-GmbH | Full | 1010 Vienna | 0.2 | 64.0 |
| Real Versicherungs-Makler GmbH | 3) | 1220 Vienna | 100.0 | |
| Together Internet Services GmbH | 4) | 1030 Vienna | 22.6 | |
| FL-Vertriebs- und Service GmbH | 3) | 5020 Salzburg | 75.0 | |
| UNIQA HealthService – Services im Gesundheitswesen GmbH |
3) | 1029 Vienna | 100.0 | |
| UNIQA Real Estate Beteiligungsverwaltung GmbH | Full | 1029 Vienna | 16.1 | 100.0 |
| Privatklinik Grinzing GmbH | 3) | 1190 Vienna | 100.0 | |
| Wohnen mit Service Pflegedienstleistungs GmbH | 4) | 1029 Vienna | 50.0 | |
| Versicherungsagentur Wilhelm Steiner GmbH | 3) | 1029 Vienna | 51.0 | |
| CEE Hotel Development GmbH (formerly CEE Hotel Development AG) |
4) | 1010 Vienna | 50.0 | |
| CEE Hotel Management und Beteiligungs GmbH | 4) | 1010 Vienna | 50.0 | |
| RHU Beteiligungsverwaltung GmbH & Co OG | 4) | 1010 Vienna | 50.0 | |
| UNIQA Real Estate Finanzierungs GmbH | Full | 1029 Vienna | 8.2 | 100.0 |
| UNIQA Group Audit GmbH | Full | 1029 Vienna | 0.0 | 100.0 |
| Valida Holding AG | Equity | 1020 Vienna | 25.4 | 40.1 |
| RVCM GmbH | 4) | 1010 Vienna | 0.0 | 50.0 |
| F&R Multimedia GmbH | 4) | 1060 Vienna | 0.0 | 28.0 |
| PremiaFIT Facility und IT Management u. Service GmbH | 4) | 1190 Vienna | 0.0 | 75.0 |
| Group foreign service companies | ||||
| UNIQA Raiffeisen Software Service Kft. (formerly | ||||
| SYNTEGRA Tanácsadó és Szolgáltató KFT.) | Full | Hungary, Budapest | 0.5 | 60.0 |
| Insdata spol s.r.o. | Full 3) |
Slovakia, Nitra | 1.4 | 98.0 |
| ProUNIQA s.r.o. | Czech Republic, Prague | 100.0 | ||
| UNIPARTNER s.r.o. | Full | Slovakia, Bratislava | –0.1 | 100.0 |
| UNIQA InsService s.r.o. | Full | Slovakia, Bratislava | 0.4 | 100.0 |
| UNIQA Ingatlanhasznosító Kft. | Full | Hungary, Budapest | 5.3 | 100.0 |
| Dekra Expert Muszaki Szakertöi Kft. | Full | Hungary, Budapest | 1.0 | 74.9 |
| UNIQA Szolgaltato Kft. | Full 3) |
Hungary, Budapest | 4.3 | 100.0 |
| Profit-Pro Kft. RC Risk Concept Vaduz |
3) | Hungary, Budapest Liechtenstein, Vaduz |
100.0 100.0 |
|
| Elsö Közszolgalati Penzügyi Tanacsado Kft. | 3) | Hungary, Budapest | 92.4 | |
| UNIQA Software Service Kft. | ||||
| (formerly Millennium Oktatási és Tréning Kft.) | Full | Hungary, Budapest | 0.1 | 100.0 |
| verscon GmbH Versicherungs- und Finanzmakler | 3) | Germany, Mannheim | 100.0 | |
| IMD Gesellschaft für Informatik und | ||||
| Datenverarbeitung GmbH Mannheimer Service und |
3) | Germany, Mannheim | 100.0 | |
| Vermögensverwaltungs GmbH | 3) | Germany, Mannheim | 100.0 | |
| Carl C. Peiner GmbH | 3) | Germany, Hamburg | 100.0 | |
| Wehring & Wolfes GmbH | 3) | Germany, Hamburg | 100.0 | |
| GSM Gesellschaft für Service Management mbH | 3) | Germany, Hamburg | 100.0 | |
| Skola Hotelnictivi A Gastronom | 3) | Czech Republic, Prague | 100.0 |
| Company | Type | Location | Equity € mllion1) |
Share in equity %2) |
|---|---|---|---|---|
| Group foreign service companies | ||||
| ITM Praha s.r.o. | 4) | Czech Republic, Prague | 29.1 | |
| ML Sicherheitszentrale GmbH | 4) | Germany, Mannheim | 30.0 | |
| Mannheimer ALLFINANZ Versicherungsvermittlung AG | 3) | Germany, Mannheim | 100.0 | |
| UNIQA Intermediazioni S.r.l. (formerly Claris Previdenza S.r.l.) |
3) | Italy, Milan | 100.0 | |
| UNIQA Software Service d.o.o. | 3) | Croatia, Zagreb | 100.0 | |
| Vitosha Auto OOD | Full | Bulgaria, Sofia | 0.1 | 100.0 |
| UNIQA Raiffeisen Software Service S.R.L. (formerly SYNTEGRA S.R.L.) |
Full | Romania, Cluj-Napoca | 0.1 | 60.0 |
| Agenta-Consulting Kft. | 3) | Hungary, Budapest | 100.0 | |
| UNIQA Software Service-Polska Sp.z o.o | 3) | Poland, Lodz | 100.0 | |
| AGENTA consulting s.r.o. | 3) | Czech Republic, Prague | 100.0 | |
| AGENTA Consulting Sp z oo w organizacji | 3) | Poland, Lodz | 100.0 | |
| UNIQA Software Service Bulgaria OOD | 3) | Bulgaria, Plovdiv | 99.0 | |
| UNIQA Software Service Ukraine GmbH | 3) | Ukraine, Kiev | 99.0 | |
| Financial and strategic domestic shareholdings | ||||
| Medial Beteiligungs-Gesellschaft m.b.H. | Equity | 1010 Vienna | 31.3 | 29.6 |
| Medicur-Holding Gesellschaft m.b.H.*) | Equity | 1020 Vienna | 23.2 | 25.0 |
| PKB Privatkliniken Beteiligungs-GmbH *) | Full | 1010 Vienna | 51.9 | 75.0 |
| Privatklinik Wehrle GmbH | Full | 5020 Salzburg | 1.4 | 100.0 |
| PKM Handels- und Beteiligungsgesellschaft m.b.H. | Full | 1010 Vienna | 14.3 | 100.0 |
| Privatklinik Döbling GmbH | Full | 1190 Vienna | 2.0 | 100.0 |
| Privatklinik Josefstadt GmbH | Full | 1080 Vienna | 1.1 | 100.0 |
| Privatklinik Graz Ragnitz GmbH | Full | 1010 Vienna | 0.8 | 100.0 |
| Ambulatorien Betriebsgesellschaft m.b.H. | Full | 1190 Vienna | 0.4 | 100.0 |
| STRABAG SE*) | Equity | 9500 Villach | 3,057.3 | 15.0 |
| PremiaMed Management GmbH | Full | 1190 Vienna | 1.2 | 75.0 |
| GENIA CONSULT | 3) | |||
| Unternehmensberatungs Gesellschaft mbH | 4) | 1190 Vienna | 74.0 | |
| R-SKA Baden Betriebs-GmbH | 4) | 2500 Baden | 49.0 | |
| Privatklinik Villach Gesellschaft m.b.H. & Co. KG call us Assistance International GmbH |
Equity | 9020 Klagenfurt 1090 Vienna |
0.5 | 34.9 61.0 |
| UNIQA Leasing GmbH | 4) | 1061 Vienna | 25.0 | |
| UNIQA Human Resources-Service GmbH | Full | 1020 Vienna | 0.3 | 100.0 |
| UNIQA Beteiligungs-Holding GmbH | Full | 1029 Vienna | 120.9 | 100.0 |
| UNIQA Erwerb von Beteiligungen Gesellschaft m.b.H. | Full | 1029 Vienna | 11.5 | 100.0 |
| Austria Hotels Betriebs-GmbH | Full | 1010 Vienna | 8.2 | 100.0 |
| Wiener Kongresszentrum Hofburg | ||||
| Betriebsgesellschaft m.b.H. | 4) | 1010 Vienna | 25.0 | |
| JALPAK International (Austria) Ges.m.b.H. | 4) | 1010 Vienna | 25.0 | |
| Allrisk-SCS-Versicherungsdienst Gesellschaft m.b.H. | Equity | 2334 Vösendorf-Süd | 0.0 | 37.5 |
| Real-estate companies | ||||
| UNIQA Real Estate CZ, s.r.o. | Full | Czech Republic, Prague | 15.6 | 100.0 |
| UNIQA Real s.r.o. | Full | Slovakia, Bratislava | 0.9 | 100.0 |
| UNIQA Real II s.r.o. | Full | Slovakia, Bratislava | 1.0 | 100.0 |
| Steigengraben-Gut Gesellschaft m.b.H. | 3) | 1020 Vienna | 100.0 | |
| Raiffeisen evolution project development GmbH | Equity | 1030 Vienna | 218.5 | 20.0 |
| DIANA-BAD Errichtungs- und Betriebs GmbH | Equity | 1020 Vienna | 0.7 | 33.0 |
| UNIQA Real Estate AG | Full | 1029 Vienna | 120.0 | 100.0 |
| UNIQA Real Estate | ||||
| Zweite Beteiligungsverwaltung GmbH | Full | 1020 Vienna | 26.3 | 100.0 |
| UNIQA Praterstraße Projekterrichtungs GmbH | Full | 1029 Vienna | 141.5 | 100.0 |
| Aspernbrückengasse Errichtungs- und Betriebs GmbH | Full | 1029 Vienna | 9.2 | 99.0 |
| UNIQA Real Estate Holding GmbH | Full | 1029 Vienna | 70.7 | 100.0 |
| UNIQA Real Estate Dritte Beteiligungsverwaltung GmbH |
Full | 1029 Vienna | 11.5 | 100.0 |
| UNIQA Real Estate Vierte Beteiligungsverwaltung GmbH |
Full | 1029 Vienna | 4.6 | 100.0 |
| "Hotel am Bahnhof" Errichtungs GmbH & Co KG | Full | 1020 Vienna | 10.4 | 100.0 |
| GLM Errichtungs GmbH | Full | 1010 Vienna | –0.1 | 100.0 |
| EZL Entwicklung Zone Lassallestraße GmbH & Co. KG | Full | 1029 Vienna | 40.3 | 100.0 |
| Fleischmarkt Inzersdorf Vermietungs GmbH | Full | 1230 Vienna | 9.3 | 100.0 |
| Praterstraße Eins Hotelbetriebs GmbH | Full | 1020 Vienna | 2.5 | 100.0 |
| UNIQA Plaza Irohadaz es Ingatlankezelö Kft. | Full | Hungary, Budapest | 4.2 | 100.0 |
| MV Augustaanlage GmbH & Co. KG | Full | Germany, Mannheim | 16.2 | 100.0 |
| MV Augustaanlage Verwaltungs-GmbH | Full | Germany, Mannheim | 0.0 | 100.0 |
| AUSTRIA Hotels Liegenschaftsbesitz AG5) | Full | 1010 Vienna | 25.6 | 99.5 |
| Passauerhof Betriebs-Ges.m.b.H.5) | Full | 1010 Vienna | 1.3 | 100.0 |
| Austria Hotels Liegenschaftsbesitz CZ s.r.o.5) | Full | Czech Republic, Prague | 21.6 | 100.0 |
| Grupo Borona Advisors, S.L. Ad | 3) | Spain, Madrid | 74.6 |
| Company Type |
Location | Equity € mllion1) |
Share in equity %2) |
|---|---|---|---|
| Real-estate companies | |||
| MV Grundstücks GmbH & Co. Erste KG Full |
Germany, Mannheim | 2.8 | 100.0 |
| MV Grundstücks GmbH & Co. Zweite KG Full |
Germany, Mannheim | 4.5 | 100.0 |
| MV Grundstücks GmbH & Co. Dritte KG Full |
Germany, Mannheim | 4.0 | 100.0 |
| 3) HKM Immobilien GmbH |
Germany, Mannheim | 100.0 | |
| CROSS POINT, a.s. Full |
Slovakia, Bratislava | 0.2 | 100.0 |
| Floreasca Tower SRL Full |
Rumania, Bucharest | 2.5 | 100.0 |
| Pretium Ingatlan Kft. Full |
Hungary, Budapest | 6.1 | 100.0 |
| UNIQA poslovni centar Korzo d.o.o. Full |
Croatia, Rijeka | 0.2 | 100.0 |
| UNIQA-Invest Kft. Full |
Hungary, Budapest | 13.1 | 100.0 |
| Knesebeckstraße 8–9 Grundstücksgesellschaft mbH Full |
Germany, Berlin | 1.7 | 100.0 |
| UNIQA Real Estate Bulgaria EOOD Full |
Bulgaria, Sofia | 1.3 | 100.0 |
| Bosnia and Herzegovina, | |||
| UNIQA Real Estate BH nekretnine, d.o.o. Full |
Sarajevo | 3.4 | 100.0 |
| UNIQA Real Estate d.o.o. Full |
Serbia, Belgrade | 2.6 | 100.0 |
| Renaissance Plaza d.o.o. Full |
Serbia, Belgrade | 1.2 | 100.0 |
| IPM International Property Management Kft. Full |
Hungary, Budapest | 2.1 | 100.0 |
| UNIQA Real Estate Polska Sp. z o.o. Full |
Poland, Warsaw | 9.7 | 100.0 |
| Black Sea Investment Capital Full |
Ukraine, Kiev | 0.6 | 100.0 |
| LEGIWATON INVESTMENTS LIMITED Full |
Cyprus, Limassol | 0.3 | 100.0 |
| UNIQA Real III, spol. s.r.o. Full |
Slovakia, Bratislava | 5.1 | 100.0 |
| UNIQA Real Estate BV Full |
Niederlande, Hoofddorp | 12.6 | 100.0 |
| AGENTA Svetovanje d.o.o. (formerly UNIQA Real Estate P. Volfova) Full |
Slovenia, Ljubljana | 0.1 | 100.0 |
| UNIQA Real Estate Ukraine Full |
Ukraine, Kiev | 0.0 | 100.0 |
| Reytarske Full |
Ukraine, Kiev | –2.9 | 100.0 |
| Austria Hotels Betriebs CZ Full |
Czech Republic, Prague | 1.9 | 100.0 |
| UNIQA Real Estate Albania Shpk. Full |
Albania, Tirana | 0.0 | 100.0 |
| ALBARAMA LIMITED Full |
Cyprus, Nikosia | 8.4 | 100.0 |
| AVE-PLAZA LLC Full |
Ukraine, Kharkiv | 11.9 | 100.0 |
| Asena CJSC Full |
Ukraine, Nikolaew | –0.9 | 100.0 |
| UNIQA Real Estate Poland Sp.z.o.o. Full |
Poland, Warsaw | 0.0 | 100.0 |
| BSIC Holding GmbH Full |
Ukraine, Kiev | 1.6 | 100.0 |
| Suoreva Ltd. Full |
Cyprus, Limassol | 8.9 | 100.0 |
| 3) UNIQA Assistance doo Sarajevo |
Bosnia-Herzegovina, Sarajevo | 99.8 | |
| UNIQA Agent doo za zastupanje u osiguranju Banja 3) Luka |
Bosnia-Herzegovina, Banja Luka |
99.8 | |
| 3) UNIQA Agent doo za zastupanje u osiguranju Sarajevo |
Bosnia-Herzegovina, Sarajevo | 99.8 |
1) In the case of fully consolidated companies, the value of the stated equity equals the local annual accounts, while in the case of companies
valued at equity, it equals the latest annual accounts published or, with companies marked with *), the latest Group accounts published. 2) The share in equity equals the share in voting rights before minorities, if any.
3) Unconsolidated company. 4) Associated not at equity valued company. 5) Consolidated on the basis of a non-calendar financial year (balance sheet date 30 September).
These Group consolidated financial statements were compiled by the Management Board as of the date of signing and approved for publication.
Pursuant to Section 82 paragraph 4 of the Austrian Stock Exchange Act the Management Board of UNIQA Versicherungen AG confirms, that, to the best of our knowledge, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group as required by the applicable accounting standards and that the Group management report gives a true and fair view of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties the Group faces.
Vienna, 6 April 2011
Konstantin Klien Chairman of the Management Board
Andreas Brandstetter Vice Chairman of the Management Board
Hannes Bogner Member of the Management Board
Karl Unger Member of the Management Board
(report of the independent auditor)
We have audited the accompanying consolidated financial statements of UNIQA Versicherungen AG, Vienna, for the year from 1 January 2010 to 31 December 2010. These consolidated financial statements comprise the consolidated balance sheet as of 31 December 2010, the consolidated income statement, consolidated statement of comprehensive income, the consolidated cash flow statement and the consolidated statement of changes in equity for the year ended 31 December 2010 and a summary of significant accounting policies and other explanatory notes.
The company's management is responsible for the Group accounting system and for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with laws and regulations applicable in Austria and as in accordance with International Standards on Auditing, issued by the International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC). Those standards require that we comply with professional guidelines and that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Group's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Our audit did not give rise to any objections. In our opinion, which is based on the results of our audit, the consolidated financial statements comply with legal requirements and give a true and fair view of the financial position of the Group as of 31 December 2010 and of its financial performance and its cash flows for the year from 1 January to 31 December 2010 in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU.
Pursuant to statutory provisions, the management report for the Group is to be audited as to whether it is consistent with the consolidated financial statements and as to whether the other disclosures are not misleading with respect to the company's position. The auditor's report also has to contain a statement as to whether the management report for the Group is consistent with the consolidated financial statements and whether the disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.
In our opinion, the management report for the Group is consistent with the consolidated financial statements. The disclosures pursuant to Section 243a UGB (Austrian Commercial Code) are appropriate.
Vienna, 6 April 2011
KPMG Austria GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft
Georg Weinberger Chartered Accountant
p.p. Alexander Knott
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 and fulfilled all the tasks assigned to the Supervisory Board by legislation and the company articles. In the Supervisory Board meetings, the Management Board presented detailed quarterly reports and provided additional oral and written reports to the Supervisory Board. The Supervisory Board was given timely and comprehensive information about those measures requiring its approval.
The meetings focused on the Group's earnings situation and its further strategic development. The Supervisory Board had five meetings in 2010. In the meeting on 16 March, the Supervisory Board mainly discussed the preliminary Group results for 2009. The Supervisory Board meeting on 29 April focused on the annual financial statements and consolidated financial statement as at 31 December 2009 as well as the reporting of the Management Board regarding Group developments during the 1st quarter of 2010. The reconstitution of the Supervisory Board made necessary by changes to the Supervisory Board that took place at the Annual General Meeting took place on 31 May. In the meeting on 21 September, the Supervisory Board primarily addressed the development of the company in the 1st half of 2010 and the extension of the share buyback programme; Andreas Brandstetter was named as the successor of Konstantin Klien as Chairman of the Management Board, effective 1 July 2011. In addition to the reporting on the Group results during the first three quarters of 2010 and planning for the 2011 business year, the Supervisory Board discussed the results of the self-evaluation in the meeting on 23 November. Furthermore, a decision was taken to appoint Hartwig Löger, Wolfgang Kindl and Kurt Svoboda to the Management Board of the company, effective 1 July 2011.
To facilitate the work of the Supervisory Board and to improve its efficiency, other committees were set up in addition to the mandatory Audit Committee. The Working Committee primarily discussed the profit developments of the Group, examined the company strategy and handled a number of tasks assigned to the Audit Committee since both committees share the same members. The committee held five meetings in 2010 and made one decision by circulating it in writing. The Committee for Board Affairs met two times to deal with the legal employment formalities of the members of the Management Board. The Investment Committee had five meetings about the capital investment strategy and questions of the capital structure. The Audit Committee, including the Working Committee, which was also functioning as the Audit Committee, met in six sessions, dealt with all audit documents and the Management Board's proposed appropriation of profit, concentrating particularly on the internal auditing reports on audit topics and significant audit discoveries based on executed audits. The various chairmen of the committees informed the members of the Supervisory Board about the meetings and their committee's work.
The 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 2010, 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 consistency check of the Corporate Governance Report according to Section 243b of the Austrian Commercial Code was performed by Univ. Prof. DDr. Waldemar Jud Corporate Governance Forschung CGF GmbH, and the final results yielded no significant grounds for objections.
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 2010 financial statements were thereby adopted in accordance with Section 96 paragraph 4 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 40 cents per share will be proposed at the Annual General Meeting on 30 May 2011.
The Supervisory Board thanks the Management Board and all staff members for their commitment and the work they have done.
Vienna, April 2011
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.
Konstantin Klien Chairman of the Management Board
Andreas Brandstetter Vice Chairman of the Management Board
Vienna, 6 April 2011
Hannes Bogner 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]
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.