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Uniqa Insurance Group AG

Earnings Release Aug 19, 2021

764_ir_2021-08-19_eab413a8-a8e6-47e6-8cc9-a1e27c57f469.pdf

Earnings Release

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Consolidated Key Figures

Premiums written
3,149.9
2,674.9
+17.8%
Savings portions from unit-linked and index-linked life insurance
(before reinsurance)
160.1
152.9
+4.7%
Premiums written, including savings portions
from unit-linked and index-linked life insurance
3,310.0
2,827.8
+17.1%
of which property and casualty insurance
1,877.4
1,565.4
+19.9%
of which health insurance
615.2
585.8
+5.0%
of which life insurance
817.5
676.7
+20.8%
of which income from regular premiums
746.6
633.7
+17.8%
of which single premiums
70.8
43.0
+64.7%
Premiums written, including savings portions
from unit-linked and index-linked life insurance
3,310.0
2,827.8
+17.1%
of which UNIQA Austria
2,072.6
2,033.6
+1.9%
of which UNIQA International
1,228.8
778.9
+57.8%
of which reinsurance
821.2
630.7
+30.2%
of which consolidation
–812.6
–615.4
+32.1%
Premiums earned (net)
2,823.1
2,439.8
+15.7%
of which property and casualty insurance
1,584.7
1,351.5
+17.2%
of which health insurance
601.5
576.4
+4.3%
of which life insurance
637.0
511.8
+24.4%
Savings portions from unit-linked and index-linked life insurance
(after reinsurance)
160.1
152.9
+4.7%
Premiums earned, including savings portions
from unit-linked and index-linked life insurance
2,983.2
2,592.7
+15.1%
Insurance benefits1)
–2,050.3
–1,840.0
+11.4%
of which property and casualty insurance
–985.0
–869.2
+13.3%
of which health insurance
–515.5
–494.1
+4.3%
of which life insurance2)
–549.8
–476.7
+15.3%
Operating expenses3)
–802.5
–714.4
+12.3%
of which property and casualty insurance
–481.7
–437.5
+10.1%
of which health insurance
–103.5
–102.3
+1.2%
of which life insurance
–217.3
–174.6
+24.4%
Net investment income
307.2
215.1
+42.8%
Earnings before taxes
215.7
55.4
+289.1%
Profit/(loss) for the period
171.7
44.3
+287.7%
Consolidated profit/(loss)
170.7
40.5
+321.6%
Investments
21,903.8
20,661.3
+6.0%
Shareholders' equity
3,340.9
3,252.0
+2.7%
Equity, including non-controlling interests
3,362.2
3,274.3
+2.7%
In € million 1– 6/2021 1– 6/2020 Change
Insured sum in life insurance 106,163.6 83,091.2 +27.8%

1) Including expenditure for deferred profit participation and premium refunds

2) Including expenditure for (deferred) profit participation

3) Less reinsurance commissions and share of profit from reinsurance ceded

Foreword by the CEO

Dear shareholders,

In the first nine months of 2021, UNIQA generated earnings before taxes of €216 million.

Premiums written grew by 17 per cent in the first half of 2021. The main reason for this was the successful integration of the former AXA companies in CEE, but we were also able to increase premiums in Austria by almost 2 per cent.

The technical result of our Group developed very positively in the first half of 2021. Notwithstanding the extraordinary charges due to hailstorms, storm damage and flooding ‒ especially in Austria and the Czech Republic ‒ we were able to improve the combined ratio to a very pleasing 92.6 percent. This shows that our various optimisation initiatives in the core underwriting business combined with active cost management have paid off. In addition, reduced mobility of our motor vehicle customers due to the coronavirus also boosted our performance in the first half of 2021.

At €307 million, net investment income recovered significantly compared to the previous year (€215 million). While losses in the value of shares and fixed-income securities had a significant negative impact in the first half of 2020, we were able to realise gains from investments in equities and bonds in a strong capital market environment in the first six months of 2021.

Our development in the first half of 2021 gives us confidence. The cost programme in Austria is right on schedule, and the integration of the former AXA companies in CEE is also progressing promisingly. Combined with the very good results for the first six months, this has prompted us to raise our forecasts for the full year: UNIQA now expects earnings before taxes in the range between €330 and €350 million for the 2021 financial year.

Sincerely,

Andreas Brandstetter CEO UNIQA Group

Vienna, August 2021

Group Management Report

  • PREMIUMS WRITTEN (INCLUDING SAVINGS PORTIONS) OF €3,310.0 MILLION IN THE FIRST HALF OF 2021
  • IMPROVEMENT IN COMBINED RATIO FROM 96.7 PER CENT TO 92.6 PER CENT
  • NET INVESTMENT INCOME IMPROVED BY 42.8 PER CENT TO €307.2 MILLION
  • EARNINGS BEFORE TAXES IMPROVED FROM €55.4 MILLION to €215.7 MILLION
  • EARNINGS BEFORE TAXES FOR 2021 BETWEEN €330 AND €350 MILLION

UNIQA Group

Changes in premiums

The UNIQA Group's premiums written including savings portions from unit-linked and index-linked life insurance increased by 17.1 per cent to €3,310.0 million (1–6/2020: €2,827.8 million) in the first half of 2021, primarily due to the initial consolidation of the AXA CEE companies. While recurring premiums grew by 16.3 per cent to €3,239.2 million (1–6/2020: €2,784.8 million), single premiums in life insurance increased by 64.7 per cent to €70.8 million (1–6/2020: €43.0 million).

Premiums earned, including net savings portions of the premiums from unit-linked and index-linked life insurance totalling €160.1 million (1–6/2020: €152.9 million), rose by 15.1 per cent to €2,983.2 million in the first half of 2021 (1–6/2020: €2,592.7 million). The volume of premiums earned (net, in accordance with IFRSs) rose by 15.7 per cent to €2,823.1 million (1–6/2020: €2,439.8 million).

Premiums written in property and casualty insurance grew by 19.9 per cent to €1,877.4 million in the first six months of 2021 (1–6/2020: €1,565.4 million). Premiums earned (net, in accordance with IFRSs) increased by 17.2 per cent to €1,584.7 million (1–6/2020: €1,351.5 million).

In health insurance, premiums written in the reporting period rose by 5.0 per cent to €615.2 million (1–6/2020: €585.8 million). The volume of premiums earned (net, in accordance with IFRSs) rose by 4.3 per cent to €601.5 million (1–6/2020: €576.4 million).

In life insurance, premiums written including savings portions from unit-linked and index-linked life insurance rose overall in the first six months of 2021 by 20.8 per cent to €817.5 million (1–6/2020: €676.7 million). The main driver of this development was the initial consolidation of the AXA companies in CEE. The single premium business grew in the first half of 2021 by 64.7 per cent to €70.8 million (1–6/2020: €43.0 million). Recurring premiums also rose by 17.8 per cent to €746.6 million (1–6/2020: €633.7 million). The Annual Premium Equivalent (APE) in life insurance increased as a result of this development by 18.1 per cent to €753.7 million (1–6/2020: €638.0 million). The APE calculation accounts for 10 per cent of single premiums because the average term of single premiums in Europe is ten years. As a result of this, annual fluctuations are smoothed out in this calculation. The risk premium portion accounted for in the premiums in unitlinked and index-linked life insurance was €18.4 million in the first half of 2021 (1–6/2020: €12.5 million). The insured capital in life insurance totalled €106,163.6 million as at 30 June 2021 (30 June 2020: €83,091.2 million). Including net savings portions of the premiums from unitlinked and index-linked life insurance, premiums earned in life insurance rose by 19.9 per cent to €797.1 million in the first six months of 2021 (1–6/2020: €664.8 million). Premiums earned (net, in accordance with IFRSs) decreased by 24.4 per cent to €637.0 million (1–6/2020: €511.8 million).

Insurance benefits

The total amount of net insurance benefits in the UNIQA Group rose by 11.4 per cent to €2,050.3 million in the first half of 2021 (1–6/2020: €1,840.0 million), which was less than the growth in premiums earned. Insurance benefits before consideration of reinsurance rose by 17.7 per cent to €2,193.7 million (1–6/2020: €1,863.7 million).

Net insurance benefits in property and casualty insurance increased by 13.3 per cent to €985.0 million (1–6/2020: €869.2 million), mainly due to the initial consolidation of the AXA CEE companies. Especially in the area of motor vehicle insurance, the benefits still decreased in the second quarter of 2021 due to limited mobility. The loss ratio after reinsurance therefore declined in the first six months of 2021 to 62.2 per cent (1–6/2020: 64.3 per cent) despite the extraordinary charges caused by weather events amounting to €45 million. The combined ratio after reinsurance improved to 92.6 per cent (1–6/2020: 96.7 per cent). Before consideration of reinsurance, the combined ratio amounted to 93.5 per cent (1–6/2020: 93.3 per cent).

In health insurance, the (net) insurance benefits (including the change in insurance provision) grew in the first half of 2021 by 4.3 per cent to €515.5 million (1–6/2020: €494.1 million).

In contrast, insurance benefits in life insurance rose less strongly than premiums earned by 15.3 per cent to €549.8 million (1–6/2020: €476.7 million).

Operating expenses

Total operating expenses, less reinsurance commission received, rose in the first six months of 2021 by 12.3 per cent to €802.5 million (1–6/2020: €714.4 million). Expenses for the acquisition of insurance fell by 10.5 per cent to €495.8 million (1–6/2020: €448.6 million). The reinsurance commission received amounting to €11.0 million (1–6/2020: €8.0 million) has already been deducted from the acquisition costs. Other operating expenses (administrative expenses) increased in the first half of 2021 as a result of the initial consolidation of the AXA companies in CEE by 15.4 per cent to €306.7 million (1–6/2020: €265.8 million). This line item includes costs under the innovation and investment programme amounting to around €24 million (1–6/2020: approx. €34 million).

The total cost ratio, i.e. the ratio of total operating expenses to the premiums earned including net savings portions of the premiums from unit-linked and indexlinked life insurance, decreased to 26.9 per cent, taking into account the reinsurance commission received (1–6/2020: €27.6 per cent).

In property and casualty insurance, operating expenses less reinsurance commissions received rose in the first half of 2021 by 10.1 per cent to €481.7 million (1–6/2020: €437.5 million). The cost ratio after reinsurance increased in this line of business to 30.4 per cent (1–6/2020: 32.4 per cent).

In health insurance, operating expenses less reinsurance commission received increased slightly by 1.2 per cent to €103.5 million (1–6/2020: €102.3 million). The cost ratio after reinsurance fell to 17.2 per cent (1–6/2020: 17.8 per cent).

In life insurance, operating expenses less reinsurance commission received increased by 24.4 per cent to €217.3 million (1–6/2020: €174.6 million) on account of the initial consolidation of AXA companies in CEE. The cost ratio (after reinsurance) rose slightly to 27.3 per cent (1–6/2020: 26.3 per cent).

Investments

The UNIQA Group's investment portfolio (including investment property, financial assets accounted for using the equity method, and other investments) fell slightly to €21,903.8 million as at 30 June 2021 compared to the last reporting date (31 December 2020: €22,319.2 million).

Net investment income rose by 42.8 per cent to €307.2 million in the first half of 2021 (1–6/2020: €215.1 million). While impairments on equities and fixedincome securities had a negative impact on net investment income in the first half of 2020, UNIQA was able to realise gains from the sale of shares and fixed-income securities in the amount of €69 million in the first six months of 2021 in a strong capital market environment. Currency effects of around €5 million had a negative impact on the net investment income. The application of the equity method of accounting for the 14.3 per cent holding in construction group STRABAG SE resulted in a positive contribution to earnings in the amount of €12.4 million in the first half of 2021 (1–6/2020: €7.0 million).

Earnings before taxes

The technical result of the UNIQA Group rose by 194.1 per cent to €111.1 million (1–6/2020: €37.8 million) in the first half of 2021, mainly due to the improved loss ratio in property and casualty insurance. The operating profit soared by 224.3 per cent to €277.0 million (1–6/2020: €85.4 million). The UNIQA Group's earnings before taxes increased accordingly by 289.1 per cent to €215.7 million (1–6/2020: €55.4 million).

Profit/(loss) for the first six months of 2021 amounted to €171.7 million (1–6/2020: €44.3 million). Consolidated profit/(loss) (proportion of the net profit for the period attributable to the shareholders of UNIQA Insurance Group AG) increased by 321.6 per cent to €170.7 million (1–6/2020: €40.5 million). Earnings per share amounted to €0.56 (1–6/2020: €0.13).

The annualised return on equity (after tax and non-controlling interests) for the reporting period was 10.1 per cent (1–6/2020: 2.4 per cent).

Group equity and total assets

Equity attributable to the shareholders of UNIQA Insurance Group AG fell to €3,340.9 million as at 30 June 2021 (31 December 2020: €3,450.1 million). The main reason for this development was the decrease in the measurement of financial instruments available for sale due to the increase in returns and the dividend payment for the 2020 financial year. Non-controlling interests came to €21.3 million (31 December 2020: €24.8 million). The Group's total assets decreased to €31,849.7 million as at 30 June 2021 (31 December 2020: €31,908.0 million).

Cash flow

Net cash flow from operating activities in the first half of 2021 amounted to €620.2 million (1–6/2020: €109.7 million). Cash flow from the UNIQA Group's investing activities, in line with investment of the revenues received in the reporting period, amounted to €–399.9 million (1–6/2020: €260.2 million); the net cash flow from financing activities amounted to €–89.7 million (1–6/2020: €–61.9 million). Overall, cash and cash equivalents increased by €211.8 million to €776.7 million (1–6/2020: €564.9 million).

Employees

The average number of employees (full-time equivalents or FTEs) of the UNIQA Group rose slightly in the first six months of 2021 to 14,748 (1–6/2020: 12,777) on account of the initial consolidation of AXA companies in CEE. These included 4,217 (1–6/2020: 4,137) field sales employees. The number of administrative employees increased to 10,531 (1–6/2020: 8,640).

Operating segments

UNIQA Austria

Premiums written including savings portions from unitlinked and index-linked life insurance at UNIQA Austria increased in the first half of 2021 by 1.9 per cent to €2,072.6 million (1–6/2020: €2,033.6 million). Recurring premiums rose by 1.3 per cent to €2,046.7 million (1–6/2020: €2,021.1 million). Single premiums grew by 107.4 per cent to €25.9 million (1–6/2020: €12.5 million).

Premiums earned including net savings portions of the premiums from unit-linked and index-linked life insurance rose by 0.6 per cent to €1,547.7 million (1–6/2020: €1,538.8 million). The volume of premiums earned (net, in accordance with IFRSs) increased by 0.4 per cent to €1,443.1 million (1–6/2020: €1,436.8 million).

Premiums written in property and casualty insurance rose by 2.8 per cent to €1,026.2 million (1–6/2020: €997.8 million) due to the continuing growth in industrial insurance, and in health insurance UNIQA Austria also recorded premium growth of 2.5 per cent to €559.8 million (1–6/2020: €546.0 million).

Premiums written in life insurance including savings portions from unit-linked and index-linked life insurance decreased slightly in the UNIQA Austria segment by 0.7 per cent to €486.6 million (1–6/2020: €489.8 million). The main driver of this trend was the decrease in demand caused by the persistently low interest rate environment. Recurring premiums fell by 3.5 per cent to €460.7 million (1–6/2020: €477.3 million). Single premiums, on the other hand, increased by 107.4 per cent to €25.9 million (1–6/2020: €12.5 million). Premium volume in the area of unit-linked and index-linked life insurance at UNIQA Austria increased by 0.9 per cent to €112.8 million in the first half of 2021 (1–6/2020: €111.8 million).

Net insurance benefits recorded a slight decrease by 0.2 per cent to €1,235.1 million in the UNIQA Austria segment in the first six months of 2021 (1–6/2020: €1,237.6 million). In property and casualty insurance, the combined ratio after reinsurance improved to 96.1 per cent due to limited mobility (1–6/2020: 97.6 per cent).

Operating expenses, less reinsurance commission received, fell by 4.5 per cent to €315.0 million (1–6/2020: €329.9 million) in the first half of 2021 due to reduced legal and consulting expenses and the continued limited business activity as a result of the coronavirus. The cost ratio after reinsurance therefore fell to 20.3 per cent (1–6/2020: 21.4 per cent).

Net investment income rose by 135.0 per cent to €340.3 million in the first six months of 2021 (1–6/2020: €144.8 million) due to the special dividend from STRABAG SE. Earnings before taxes rose in the UNIQA Austria segment to €203.8 million in the first half of 2021 (1–6/2020: € –8.6 million).

UNIQA International

In the UNIQA International segment, premiums written including savings portions from unit-linked and indexlinked life insurance rose by 57.8 per cent to €1,228.8 million in the first six months of 2021 (1–6/2020: €778.9 million), primarily on account of the initial consolidation of the AXA CEE companies. Single premiums rose by 47.2 per cent to €44.9 million (1–6/2020: €30.5 million). Recurring premiums rose by 58.2 per cent to €1,183.9 million (1–6/2020: €748.4 million). This meant that the international companies contributed a total of 37.1 per cent to total Group premiums overall in the first half of 2021 (1–6/2020: 27.5 per cent).

Premiums earned including net savings portions of the premiums from unit-linked and index-linked life insurance increased by 56.5 per cent to €813.7 million (1– 6/2020: €519.8 million). The volume of premiums earned (net, in accordance with IFRSs) rose by 61.7 per cent to €758.2 million (1–6/2020: €468.8 million).

In Central Europe (CE) – i.e. Poland, Slovakia, the Czech Republic and Hungary – premiums written including savings portions from unit-linked and index-linked life insurance rose in the first six months of 2021 by 87.9 per cent to €919.2 million (1–6/2020: €489.2 million). In the region of Eastern Europe (EE) – Romania and Ukraine – an increase of 3.6 per cent to €102.9 million was recorded (1–6/2020: €99.3 million). In Southeastern Europe (SEE), comprising Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia and Serbia, premiums written including savings portions from unit-linked and index-linked life insurance rose by 11.2 per cent to €165.8 million (1–6/2020: €149.1 million). In Russia (RU) the volume of premiums written fell slightly by 2.4 per cent to €34.7 million (1–6/2020: €35.5 million). In Western Europe (WE) it increased by 9.9 per cent to €6.3 million (1–6/2020: €5.7 million).

In the UNIQA International segment, premiums written in property and casualty insurance rose by 53.3 per cent to €847.4 million (1–6/2020: €552.8 million). This meant the contribution of Group companies outside Austria to overall premiums in property and casualty insurance amounted to 45.1 per cent (1–6/2020: 35.3 per cent).

Premiums written in health insurance increased by 39.2 per cent to €55.4 million in the first half of 2021 (1–6/2020: €39.8 million). As such, the segment was responsible for 9.0 per cent (1–6/2020: 6.8 per cent) of health insurance premiums in the UNIQA Group.

In the international life insurance business, premiums written including savings portions of unit-linked and index-linked life insurance increased by 75.0 per cent to €325.9 million in the first six months of 2021 (1–6/2020: €186.3 million), driven primarily by the initial consolidation of the AXA companies in Poland, the Czech Republic and Slovakia. Single premiums increased to €44.9 million (1–6/2020: €30.5 million). Recurring premiums rose by 80.4 per cent to €281.1 million (1–6/2020: €155.8 million). UNIQA International's share of overall life insurance premiums in the UNIQA Group amounted to 39.9 per cent (1–6/2020: 27.5 per cent). Premiums from unit-linked and index-linked life insurance rose in the international area by 22.8 per cent to €65.7 million (1–6/2020: €53.5 million).

Net insurance benefits in the UNIQA International segment increased by 70.3 per cent to €417.8 million in the first half of 2021 (1–6/2020: €245.3 million). In property and casualty insurance, the combined ratio after reinsurance decreased due to the improved cost ratio to 90.7 per cent (1–6/2020: 92.1 per cent). In the Central Europe region, benefits rose by 113.7 per cent to €291.7 million (1–6/2020: €136.5 million), and in the Eastern Europe region they increased by 27.4 per cent to €33.9 million (1–6/2020: €26.6 million). In Southeastern Europe, they rose by 18.6 per cent to €64.5 million (1–6/2020: €54.3 million). In Russia, benefits amounted to €27.4 million in the first half of 2021 (1–6/2020: €27.8 million). In Western Europe, the volume of benefits reached €0.3 million (1–6/2020: €0.1 million).

In the UNIQA International segment, operating expenses less reinsurance commissions received rose by 40.9 per cent to €285.3 million (1–6/2020: €202.5 million). The cost ratio after reinsurance fell nevertheless to 35.1 per cent (1–6/2020: 39.0 per cent). In Central Europe, costs rose by 104.4 per cent to €186.2 million (1–6/2020: €91.1 million), whereas in Eastern Europe they fell by 15.0 per cent to €33.1 million (1–6/2020: €39.0 million). In Southeastern Europe, they increased by 1.9 per cent to €49.0 million (1–6/2020: €48.1 million). Costs in Russia showed a sharp decrease to €5.7 million in the first six months of 2021 (1–6/2020: €7.5 million). In Western Europe they amounted to €0.9 million (1–6/2020: €0.8 million). Conversely, costs in administration fell to €10.4 million (1–6/2020: €16.1 million).

Net investment income decreased by 42.0 per cent to €33.0 million in the UNIQA International segment (1–6/2020: €56.9 million). Earnings before taxes rose by 67.6 per cent to €77.2 million (1–6/2020: €46.1 million) due to the improvement in the technical result.

Reinsurance

Premiums written in the reinsurance segment amounted to €821.2 million in the first half of 2021 (1–6/2020: €630.7 million). Premiums written in property and casualty insurance rose by 30.3 per cent to €797.2 million (1–6/2020: €611.8 million). In health insurance, they amounted to €3.7 million (1–6/2020: €3.3 million) and in life insurance to €20.3 million (1–6/2020: €15.7 million).

Net insurance benefits rose by 10.8 per cent to €394.7 million (1–6/2020: €356.1 million) in the reinsurance segment. Operating expenses, less reinsurance commission received, rose by 10.5 per cent to €175.5 million (1–6/2020: €158.8 million). Net investment income amounted to €23.3 million (1–6/2020: €–2.1 million). Earnings before taxes rose to €60.7 million (1–6/2020: €29.2 million).

Group functions

In the Group functions segment, operating expenses less reinsurance commission received rose by 10.2 per cent to €26.4 million in the first half of 2021 (1–6/2020: €23.9 million). Net investment income rose to €118.4 million (1–6/2020: €28.7 million) due to the special dividend from STRABAG SE. Earnings before taxes, therefore, improved to €51.5 million (1–6/2020: €–27.1 million).

Capital market

UNIQA shares – key figures
In €
1– 6/2021 1– 6/2020 Change
UNIQA share price as at 30 June 7.34 5.99 +22.5%
High 7.56 9.95
Low 6.30 5.86
Market capitalisation as at 30 June (in € million) 2,253.1 1,838.7 +22.5%
Earnings per share 0.56 0.13 +321.6%
Average number of shares in circulation 306,965,261 306,965,261

UNIQA shares recorded a slight price increase in the first half of 2021 and reached €7.34 on 30 June 2021. Compared with the 2020 year-end price (€6.40), this equates to a gain of 14.7 per cent. After this, the UNIQA share price continued to rise even further and reached €7.61 on 9 August 2021.

UNIQA shares – information

Financial calendar

18 November 2021 First to Third Quarter Results 2021

Ticker symbol UQA
Reuters UNIQ.VI
Bloomberg UQA AV
ISIN AT0000821103
Market segment Vienna Stock Exchange – prime market
Trade segment Official market
ATX, ATX FIN, VÖNIX,
Indices MSCI Europe Small Cap
Number of shares 309,000,000

Significant events after the reporting date

No significant events subject to mandatory reporting occurred after the reporting date.

Outlook

Contrary to previous expectations of earnings before taxes at around the same level as 2018, due to improved profitability in the core underwriting business earnings before taxes are now expected to be in the range of €330 to €350 million.

Consolidated Interim Financial Statements

GENERAL DISCLOSURES

Accounting principles

The consolidated interim financial statements as at 30 June 2021 were prepared in accordance with the requirements of IAS 34 and the International Financial Reporting Standards (IFRSs) of the International Accounting Standards Board (IASB) recognised by the European Union (EU) as well as the interpretations of the IFRS Interpretations Committee. The additional requirements of Section 245a(1) of the Austrian Commercial Code and Section 138(8) of the Austrian Insurance Supervision Act were met.

The accounting, measurement and consolidation principles correspond to those applied in the consolidated financial statements as at 31 December 2020. The functional currency for UNIQA Insurance Group AG is the euro.

In preparing the consolidated interim financial statements, estimates and planning have been used to a greater extent than for annual reporting.

The consolidated interim financial statements were prepared in millions of euros (rounded based on commercial rounding methods). Rounding differences may occur when totalling rounded amounts and percentages.

Comparability of the previous year's figures

The initial consolidation of the acquired AXA companies in Poland, the Czech Republic and Slovakia took place in the fourth quarter of 2020. For this reason, they are included in the current half-year 2021, but not in the same period of last year from 1 January to 30 June 2020.

Adoption of new and revised standards

IFRS 9– Financial Instruments and IFRS 17– Insurance Contracts

IFRS 9 and IFRS 17 offer various possible combinations with regard to the adoption of accounting options that the two standards provide. In the course of the Group-wide IFRS 9 and IFRS 17 implementation project, a wide variety of possibilities and combinations were analysed in detail, which are to be applied as follows:

  • The premium allocation approach will be applied to the maximum extent possible. It is expected that the option of immediate recognition of the respective acquisition costs will not be exercised.
  • Furthermore, UNIQA will most likely apply the so-called OCI option provided by both standards as an option for the measurement of financial instruments according to IFRS 9 and for the measurement of technical provisions according to IFRS 17.
  • IFRS 17 offers a fair value option specifically for property. This option is expected to be exercised and all property portfolios that are to be used as reference values for the calculations under the variable fee approach will be recognised at fair value.
  • UNIQA will refrain from dividing effects from the periodic reversal of the risk adjustment according to IFRS 17 between the items "Technical income" and "Technical financial income or expenses" in the consolidated income statement. This means that the option for the socalled disaggregation of changes in the risk adjustment does not apply.

Interest Rate Benchmark Reform — Phase 2 (Adjustments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)

Relief was introduced for the modifications required by the reform. The modifications required as a direct result of the IBOR reform are accounted for by updating the effective interest rate. All other modifications are accounted for using existing IFRS rules.

The amendments to IFRS 4 are intended to ensure that insurers adopting the temporary exemption from IFRS 9 are required to apply the amendments when accounting for modifications.

UNIQA has carried out an analysis of the effects of this adjustment and only a few individual items were identified that are affected by this change.

Consolidated Statement of Financial Position

Assets Notes 30/6/2021 31/12/2020
In € million
Property, plant and equipment 358.0 364.7
Intangible assets 2,167.0 2,098.8
Investments
Investment property 1,259.6 1,219.2
Financial assets accounted for using the equity method 590.8 677.9
Other investments 1 20,053.5 20,422.1
Unit-linked and index-linked life insurance investments 1 5,181.0 5,218.1
Reinsurers' share of technical provisions 581.5 514.3
Reinsurers' share of technical provisions for unit-linked and index-linked life
insurance 0.0 0.1
Receivables, including insurance receivables 785.3 684.2
Income tax receivables 61.7 59.1
Deferred tax assets 34.6 8.6
Cash and cash equivalents 776.7 640.7
Total assets 31,849.7 31,908.0
Equity and liabilities
In € million
Notes 30/6/2021 31/12/2020
Equity
Portion attributable to shareholders of UNIQA Insurance Group AG
Subscribed capital and capital reserves 1,789.9 1,789.9
Treasury shares –16.6 –16.6
Accumulated results 1,567.6 1,676.8
3,340.9 3,450.1
Non-controlling interests 21.3 24.8
3,362.2 3,474.8
Liabilities
Subordinated liabilities 1 1,100.4 1,069.9
Technical provisions 19,297.1 19,195.7
Technical provisions for unit-linked and index-linked life insurance 5,074.0 5,115.5
Financial liabilities 1 692.1 693.6
Other provisions 746.6 847.2
Liabilities and other items classified as liabilities 1,095.9 994.2
Income tax liabilities 105.5 93.1
Deferred tax liabilities 376.0 423.9
28,487.5 28,433.1
Total equity and liabilities 31,849.7 31,908.0

Consolidated Income Statement

In € million Notes 1–6/2021 1–6/2020 4–6/2021 4–6/2020
Premiums earned (net) 3 2,823.1 2,439.8 1,405.6 1,183.2
Technical interest income 161.4 163.0 80.4 81.3
Other insurance income 14.2 12.7 3.0 9.2
Insurance benefits 4 –2,050.3 –1,840.0 –1,026.1 –889.4
Operating expenses 5 –802.5 –714.4 –396.7 –335.4
Other technical expenses –34.9 –23.4 –17.5 –10.2
Technical result 111.1 37.8 48.6 38.7
Net investment income 2 307.2 215.1 157.1 125.4
Income from investments 396.9 399.9 181.1 171.9
Expenses from investments –108.0 –197.8 –58.0 –76.0
Financial assets accounted for using the equity method 18.4 13.0 34.1 29.5
Other income 143.4 105.4 73.2 32.8
Reclassification of technical interest income –161.4 –163.0 –80.4 –81.3
Other expenses –123.4 –109.8 –64.0 –31.8
Non-technical result 165.9 47.6 85.9 45.1
Operating profit/(loss) 277.0 85.4 134.5 83.8
Amortisation of VBI and impairment of goodwill –25.6 –1.3 –13.1 –0.6
Finance cost –35.7 –28.7 –17.9 –13.8
Earnings before taxes 215.7 55.4 103.6 69.4
Income taxes –43.9 –11.1 –21.1 –14.0
Profit/(loss) for the period 171.7 44.3 82.5 55.4
of which attributable to shareholders of UNIQA Insurance
Group AG 170.7 40.5 81.3 53.7
of which attributable to non-controlling interests 1.0 3.8 1.1 1.7
Earnings per share (in €)1) 0.56 0.13 0.26 0.17
Average number of shares in circulation 306,965,261 306,965,261 306,965,261 306,965,261

1) Diluted earnings per share equate to undiluted earnings per share. This is calculated on the basis of the consolidated profit/(loss).

Consolidated Statement of Comprehensive Income

In € million
1–6/2021 1–6/2020
Profit/(loss) for the period 171.7 44.3
Items not reclassified to profit or loss in subsequent periods
Remeasurement of defined benefit obligations
Gains (losses) recognised in equity 41.9 –2.8
Gains (losses) recognised in equity – deferred tax –10.5 0.7
Other income from financial assets accounted for using the equity method
Gains (losses) recognised in equity –1.8 –5.2
29.6 –7.3
Items reclassified to profit or loss in subsequent periods
Currency translation
Gains (losses) recognised in equity 30.6 –39.0
Measurement of financial instruments available for sale
Gains (losses) recognised in equity –678.6 58.2
Gains (losses) recognised in equity – deferred tax 58.6 16.1
Gains (losses) recognised in equity – deferred profit participation 396.0 –117.1
Recognised in the consolidated income statement –95.4 –32.9
Recognised in the consolidated income statement – deferred tax 14.7 2.3
Recognised in the consolidated income statement – deferred profit participation 17.1 21.6
Other income from financial assets accounted for using the equity method
Gains (losses) recognised in equity 4.8 –1.1
–252.3 –92.0
Other comprehensive income –222.7 –99.2
Total comprehensive income –50.9 –55.0
of which attributable to shareholders of UNIQA Insurance Group AG –50.7 –58.2
of which attributable to non-controlling interests –0.2 3.3

Consolidated Statement of Cash Flows

In € million 1–6/2021 1–6/2020
Profit/(loss) for the period 171.7 44.3
Amortisation of VBI, impairment of goodwill and other intangible assets, and depreciation of property,
plant and equipment
62.0 32.2
Impairment losses/reversal of impairment losses on other investments 19.7 67.7
Gain/loss on the disposal of investments 19.4 –14.6
Change in deferred acquisition costs –53.2 18.8
Change in securities at fair value through profit or loss 11.3 41.6
Change in direct insurance receivables –77.8 –77.3
Change in other receivables –17.8 –76.0
Change in direct insurance liabilities –2.4 –11.3
Change in other liabilities 115.0 130.4
Change in technical provisions 405.8 –217.2
Change in defined benefit obligations –28.3 –1.5
Change in deferred tax assets and deferred tax liabilities –15.2 –10.0
Change in other statement of financial position items 9.8 –36.6
Net cash flow from operating activities 620.2 –109.7
Proceeds from disposal of intangible assets and property, plant and equipment 4.6 5.3
Payments for acquisition of intangible assets and property, plant and equipment –60.6 –58.2
Payments for acquisition of consolidated companies –25.8 0.0
Proceeds from disposal and maturity of other investments 1,988.7 3,147.7
Payments for acquisition of other investments –2,344.0 –3,251.2
Change in unit-linked and index-linked life insurance investments 37.1 416.6
Net cash flow from investing activities –399.9 260.2
Dividend payments –58.4 –55.4
Transactions between owners –0.4 –0.1
Payments from other financing activities –30.9 –6.4
Net cash flow from financing activities –89.7 –61.9
Change in cash and cash equivalents 130.6 88.7
of which due to acquisitions of consolidated subsidiaries 1.6 0.0
Change in cash and cash equivalents due to movements in exchange rates 5.4 –3.4
Cash and cash equivalents at beginning of year 640.7 479.6
Cash and cash equivalents at end of period 776.7 564.9
Income taxes paid (Net cash flow from operating activities) –49.4 –14.1
Interest paid (Net cash flow from operating activities) –7.5 –3.4
Interest received (Net cash flow from operating activities) 181.6 158.5
Dividends received (Net cash flow from operating activities) 123.4 12.3

Consolidated Statement of Changes in Equity

Accumulated
In € million Subscribed capital and
capital reserves
Treasury shares Measurement of
financial instruments
available for sale
Remeasurement of
defined benefit
obligations
IAS 8 restatement 65.4
At 1 January 2020 1,789.9 –16.6 633.4 –314.9
Change in basis of consolidation
Dividends to shareholders
Total comprehensive income –53.1 –2.1
Profit/(loss) for the period
Other comprehensive income –53.1 –2.1
At 30 June 2020 1,789.9 –16.6 580.3 –316.9
At 1 January 2021 1,789.9 –16.6 833.4 –341.7
Change in basis of consolidation
Dividends to shareholders
Total comprehensive income –285.4 31.3
Profit/(loss) for the period
Other comprehensive income –285.4 31.3
At 30 June 2021 1,789.9 –16.6 548.0 –310.4
Total
equity
Non-controlling
interests
Portion attributable to
shareholders of UNIQA
Insurance Group AG
Other accumulated
results
Differences from
currency translation
–33.3 –33.3 –98.7
3,387.1 19.4 3,367.7 1,446.2 –170.3
–2.5 –0.2 –2.3 –2.3
–55.4 –0.2 –55.3 –55.3
–55.0 3.3 –58.2 34.2 –37.3
44.3 3.8 40.5 40.5
–99.2 –0.5 –98.7 –6.3 –37.3
3,274.3 22.3 3,252.0 1,422.9 –207.6
3,474.8 24.8 3,450.1 1,397.9 –212.9
–3.3 –0.1 –3.2 –3.2
–58.4 –3.1 –55.3 –55.3
–50.9 –0.2 –50.7 173.7 29.7
171.7 1.0 170.7 170.7
–222.7 –1.2 –221.4 2.9 29.7

–183.2 1,513.1 3,340.9 21.3 3,362.2

results

Notes to the Condensed Consolidated Interim Financial Statements

Segment reporting

OPERATING SEGMENTS – CONSOLIDATED INCOME STATEMENT

In € million
1–6/2021
1–6/2020
1–6/2021
1–6/2020
Premiums written (gross), including savings portions from unit-linked and
index-linked life insurance
2,072.6
2,033.6
1,228.8
778.9
Premiums earned (net), including savings portions from unit-linked and index
linked life insurance
1,547.7
1,538.8
813.7
519.8
Savings portions from unit-linked and
index-linked life insurance (gross)
104.6
101.9
55.5
51.0
Savings portions from unit-linked and
index-linked life insurance (net)
104.6
101.9
55.5
51.0
Premiums written (gross)
1,968.1
1,931.7
1,173.3
727.9
Premiums earned (net)
1,443.1
1,436.8
758.2
468.8
Premiums earned (net) – intragroup
–383.4
–359.4
–272.9
–187.1
Premiums earned (net) – external
1,826.6
1,796.2
1,031.0
655.9
Technical interest income
146.0
148.1
15.4
14.9
Other insurance income
2.6
2.0
15.2
4.4
Insurance benefits
–1,235.1
–1,237.6
–417.8
–245.3
Operating expenses
–315.0
–329.9
–285.3
–202.5
Other technical expenses
–8.7
–6.7
–27.0
–18.0
Technical result
33.0
12.7
58.6
22.3
Net investment income
340.3
144.8
33.0
56.9
Income from investments
269.1
234.9
55.1
72.9
Expenses from investments
–27.4
–90.1
–22.3
–16.2
Financial assets accounted for using the equity method
98.6
0.0
0.3
0.3
Other income
1.1
1.3
63.0
12.5
Reclassification of technical interest income
–146.0
–148.1
–15.4
–14.9
Other expenses
–3.6
–4.8
–34.8
–27.9
Non-technical result
191.8
–6.8
45.8
26.7
Operating profit/(loss)
224.8
5.9
104.4
48.9
Amortisation of VBI and impairment of goodwill
–0.9
–0.9
–24.7
–0.4
Finance cost
–20.2
–13.6
–2.5
–2.5
Earnings before taxes
203.8
–8.6
77.2
46.1
Combined ratio (property and casualty insurance, after reinsurance)
96.1%
97.6%
90.7%
92.1%
Cost ratio (after reinsurance)
20.3%
21.4%
35.1%
39.0%
UNIQA Austria UNIQA International
Group Consolidation Group functions Reinsurance
1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021
2,827.8 3,310.0 –615.4 –812.6 0.0 0.0 630.7 821.2
2,592.7 2,983.2 2.3 0.4 0.0 0.0 531.9 621.4
152.9 160.1 0.0 0.0 0.0 0.0 0.0 0.0
152.9 160.1 0.0 0.0 0.0 0.0 0.0 0.0
2,674.9 3,149.9 –615.4 –812.6 0.0 0.0 630.7 821.2
2,439.8 2,823.1 2.3 0.4 0.0 0.0 531.9 621.4
0.0 0.0 2.3 0.4 0.0 0.0 544.2 655.9
2,439.8 2,823.1 0.0 0.0 0.0 0.0 –12.3 –34.5
163.0 161.4 0.0 0.0 0.0 0.0 0.0 0.0
12.7 14.2 –1.6 –3.9 0.3 0.3 7.5 0.1
–1,840.0 –2,050.3 –1.9 –4.0 1.1 1.3 –356.1 –394.7
–714.4 –802.5 0.8 –0.4 –23.9 –26.4 –158.8 –175.5
–23.4 –34.9 9.0 9.7 0.3 –0.3 –7.9 –8.7
37.8 111.1 8.5 1.8 –22.2 –25.1 16.5 42.6
215.1 307.2 –13.3 –207.8 28.7 118.4 –2.1 23.3
399.9 396.9 –65.4 –125.3 136.4 170.1 21.1 27.9
–197.8 –108.0 39.4 7.6 –107.6 –61.3 –23.2 –4.6
13.0 18.4 12.7 –90.1 0.0 9.6 0.0 0.0
105.4 143.4 –15.0 –20.4 90.2 98.2 16.3 1.6
–163.0 –161.4 0.0 0.0 0.0 0.0 0.0 0.0
–109.8 –123.4 13.4 18.2 –90.5 –97.8 –0.1 –5.4
47.6 165.9 –14.9 –209.9 28.5 118.7 14.2 19.5
85.4 277.0 –6.4 –208.1 6.3 93.7 30.6 62.2
–1.3 –25.6 0.0 0.0 0.0 0.0 0.0 0.0
–28.7 –35.7 22.2 30.5 –33.3 –42.1 –1.4 –1.4
55.4 215.7 15.8 –177.6 –27.1 51.5 29.2 60.7
96.7% 92.6% n/a n/a n/a n/a 96.8% 92.3%
27.6% 26.9% n/a n/a n/a n/a 29.9% 28.2%

OPERATING SEGMENTS – CLASSIFIED BY BUSINESS LINES

Property and casualty insurance UNIQA Austria UNIQA International
In € million 1–6/2021 1–6/2020 1–6/2021 1–6/2020
Premiums written (gross) 1,026.2 997.8 847.4 552.8
Premiums earned (net) 523.2 525.6 450.5 300.0
Technical interest income 0.0 0.0 0.4 0.7
Other insurance income 2.0 1.7 4.1 3.7
Insurance benefits –350.9 –356.0 –244.1 –162.6
Operating expenses –151.8 –156.8 –164.5 –113.6
Other technical expenses –4.6 –4.1 –21.3 –16.4
Technical result 18.0 10.3 25.0 11.7
Net investment income 85.6 –30.9 16.9 15.1
Income from investments 90.4 22.4 24.0 23.7
Expenses from investments –6.3 –53.3 –7.3 –8.9
Financial assets accounted for using the equity method 1.6 0.0 0.3 0.3
Other income 0.9 1.1 9.0 8.1
Reclassification of technical interest income 0.0 0.0 –0.4 –0.7
Other expenses –2.8 –4.2 –7.8 –6.5
Non-technical result 83.7 –34.0 17.8 16.0
Operating profit/(loss) 101.7 –23.6 42.7 27.7
Amortisation of VBI and impairment of goodwill 0.0 0.0 –5.6 –0.2
Finance cost –7.8 –1.2 –2.3 –2.4
Earnings before taxes 93.9 –24.8 34.9 25.1
Health insurance UNIQA Austria UNIQA International
In € million 1–6/2021 1–6/2020 1–6/2021 1–6/2020
Premiums written (gross) 559.8 546.0 55.4 39.8
Premiums earned (net) 549.4 535.7 48.5 37.5
Technical interest income 45.1 44.4 0.0 0.0
Other insurance income 0.5 0.3 0.3 0.1
Insurance benefits –489.2 –472.9 –26.2 –19.7
Operating expenses –77.6 –79.5 –17.6 –16.5
Other technical expenses –0.4 –0.2 –0.3 –0.3
Technical result 27.8 27.9 4.5 1.1
Net investment income 83.0 41.4 0.1 0.2
Income from investments 49.0 63.8 0.1 0.3
Expenses from investments –7.1 –22.5 0.0 –0.1
Financial assets accounted for using the equity method 41.1 0.0 0.0 0.0
Other income 0.2 0.1 1.5 1.7
Reclassification of technical interest income –45.1 –44.4 0.0 0.0
Other expenses –0.7 –0.3 –1.4 –1.6
Non-technical result 37.3 –3.4 0.3 0.2
Operating profit/(loss) 65.1 24.6 4.8 1.4
Earnings before taxes 65.1 24.6 4.8 1.4
Reinsurance Group functions Consolidation Group
1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020
797.2 611.8 0.0 0.0 –793.5 –597.0 1,877.4 1,565.4
610.4 523.7 0.0 0.0 0.6 2.2 1,584.7 1,351.5
0.0 0.0 0.0 0.0 0.0 0.0 0.4 0.7
0.1 7.4 0.2 0.3 –1.1 –1.6 5.3 11.6
–389.8 –348.9 0.1 0.0 –0.2 –1.7 –985.0 –869.2
–173.8 –158.0 –10.6 –12.2 19.1 3.1 –481.7 –437.5
–7.2 –6.3 –0.3 0.0 7.1 6.3 –26.2 –20.6
39.7 17.9 –10.6 –11.8 25.3 8.4 97.4 36.6
20.7 –5.1 50.5 19.7 –100.3 8.5 73.5 7.3
25.4 18.1 81.3 76.2 –100.2 –29.4 120.8 111.0
–4.6 –23.2 –31.0 –56.5 –4.2 32.1 –53.4 –109.8
0.0 0.0 0.2 0.0 4.2 5.9 6.2 6.1
1.4 16.1 3.4 4.6 1.1 –1.5 15.8 28.5
0.0 0.0 0.0 0.0 0.0 0.0 –0.4 –0.7
–5.4 0.0 –5.2 –4.7 –1.2 –1.3 –22.4 –16.7
16.8 11.0 48.7 19.7 –100.5 5.8 66.5 18.4
56.5 28.9 38.1 7.9 –75.1 14.1 163.9 55.0
0.0 0.0 0.0 0.0 0.0 0.0 –5.6 –0.2
–1.4 –1.4 –37.7 –29.8 13.7 6.3 –35.5 –28.6
55.0 27.5 0.4 –21.9 –61.4 20.4 122.8 26.2
Reinsurance Group functions Consolidation Group
1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020
3.7 3.3 0.0 0.0 –3.7 –3.3 615.2 585.8
3.6 3.1 0.0 0.0 0.0 0.1 601.5 576.4
0.0 0.0 0.0 0.0 0.0 0.0 45.1 44.4
0.0 0.0 0.0 0.0 0.0 0.0 0.7 0.4
–1.4 –2.8 1.3 1.0 0.0 0.3 –515.5 –494.1
–0.1 –0.1 –8.3 –6.3 0.0 0.0 –103.5 –102.3
0.0 0.0 0.0 0.2 0.0 0.0 –0.8 –0.3
2.1 0.3 –7.0 –5.1 0.0 0.3 27.5 24.6
0.0 0.0 53.1 –0.3 –47.3 –17.4 88.9 23.8
0.0 0.0 65.6 39.5 –12.0 –21.5 102.7 82.2
0.0 0.0 –12.5 –39.8 1.1 1.4 –18.6 –61.0
0.0 0.0 0.0 0.0 –36.4 2.6 4.7 2.6
0.1 0.0 93.7 82.7 –15.1 –13.4 80.4 71.0
0.0 0.0 0.0 0.0 0.0 0.0 –45.1 –44.4
0.0 0.0 –91.3 –84.3 15.0 13.8 –78.4 –72.5
0.1 0.0 55.5 –1.9 –47.4 –17.1 45.7 –22.2
2.2 0.2 48.5 –7.0 –47.4 –16.8 73.2 2.4
2.2 0.2 48.5 –7.0 –47.4 –16.8 73.2 2.4
Life insurance UNIQA Austria UNIQA International
In € million 1–6/2021 1–6/2020 1–6/2021 1–6/2020
Premiums written (gross), including savings portions from unit-linked and
index-linked life insurance
486.6 489.8 325.9 186.3
Premiums earned (net), including savings portions from unit-linked and index
linked life insurance 475.1 477.4 314.7 182.2
Savings portions from unit-linked and
index-linked life insurance (gross) 104.6 101.9 55.5 51.0
Savings portions from unit-linked and
index-linked life insurance (net) 104.6 101.9 55.5 51.0
Premiums written (gross) 382.1 387.9 270.4 135.3
Premiums earned (net) 370.5 375.5 259.2 131.2
Technical interest income 100.9 103.7 15.0 14.2
Other insurance income 0.1 0.0 10.8 0.6
Insurance benefits –395.0 –408.7 –147.5 –63.0
Operating expenses –85.6 –93.6 –103.1 –72.4
Other technical expenses –3.7 –2.4 –5.4 –1.3
Technical result –12.8 –25.6 29.2 9.4
Net investment income 171.7 134.3 16.0 41.6
Income from investments 129.7 148.7 30.9 48.8
Expenses from investments –14.0 –14.4 –15.0 –7.2
Financial assets accounted for using the equity method 55.9 0.0 0.0 0.0
Other income 0.1 0.1 52.4 2.8
Reclassification of technical interest income –100.9 –103.7 –15.0 –14.2
Other expenses –0.1 –0.2 –25.6 –19.8
Non-technical result 70.8 30.5 27.7 10.5
Operating profit/(loss) 58.0 5.0 56.9 19.9
Amortisation of VBI and impairment of goodwill –0.9 –0.9 –19.1 –0.2
Finance cost –12.4 –12.4 –0.2 –0.1
Earnings before taxes 44.7 –8.4 37.6 19.6

UNIQA INTERNATIONAL – REGIONS

Premiums earned (net) Net investment income Insurance benefits Operating expenses Earnings before taxes
In € million 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020
Central Europe (CE) 538.8 255.3 13.9 11.9 –291.7 –136.5 –186.2 –91.1 62.3 27.2
Eastern Europe (EE) 71.5 71.5 4.5 8.8 –33.9 –26.6 –33.1 –39.0 8.4 14.7
Russia (RU) 34.1 35.1 5.7 22.3 –27.4 –27.8 –5.7 –7.5 8.7 10.7
Southeastern Europe (SEE) 113.1 106.3 8.8 14.1 –64.5 –54.3 –49.0 –48.1 8.7 10.5
Western Europe (WE) 0.6 0.6 0.1 0.1 –0.3 –0.1 –0.9 –0.8 –0.4 0.0
Administration 0.0 0.0 0.0 –0.2 0.0 0.0 –10.4 –16.1 –10.4 –17.0
Total 758.2 468.8 33.0 56.9 –417.8 –245.3 –285.3 –202.5 77.2 46.1
Reinsurance Group functions Consolidation Group
1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020
20.3 15.7 0.0 0.0 –15.4 –15.1 817.5 676.7
7.5 5.1 0.0 0.0 –0.2 0.0 797.1 664.8
0.0 0.0 0.0 0.0 0.0 0.0 160.1 152.9
0.0 0.0 0.0 0.0 0.0 0.0 160.1 152.9
20.3 15.7 0.0 0.0 –15.4 –15.1 657.4 523.7
7.5 5.1 0.0 0.0 –0.2 0.0 637.0 511.8
0.0 0.0 0.0 0.0 0.0 0.0 115.9 117.8
0.0 0.0 0.0 0.0 –2.8 0.0 8.2 0.7
–3.6 –4.5 0.0 0.0 –3.8 –0.5 –549.8 –476.7
–1.6 –0.7 –7.5 –5.5 –19.4 –2.3 –217.3 –174.6
–1.5 –1.6 0.0 0.1 2.6 2.7 –7.9 –2.5
0.8 –1.7 –7.5 –5.4 –23.5 –0.2 –13.8 –23.4
2.6 3.0 14.8 9.4 –60.2 –4.4 144.9 184.0
2.6 3.0 23.2 20.7 –13.1 –14.5 173.4 206.8
0.0 0.0 –17.9 –11.3 10.8 5.9 –36.0 –27.0
0.0 0.0 9.5 0.0 –57.9 4.2 7.5 4.2
0.1 0.2 1.0 2.9 –6.4 0.0 47.2 5.8
0.0 0.0 0.0 0.0 0.0 0.0 –115.9 –117.8
0.0 0.0 –1.4 –1.5 4.5 0.8 –22.5 –20.6
2.7 3.2 14.5 10.7 –62.0 –3.6 53.7 51.4
3.5 1.5 7.0 5.4 –85.6 –3.7 39.9 28.0
0.0 0.0 0.0 0.0 0.0 0.0 –20.0 –1.0
0.0 0.0 –4.4 –3.5 16.8 15.9 –0.2 –0.1
3.5 1.5 2.6 1.9 –68.8 12.2 19.6 26.9

CONSOLIDATED STATEMENT OF FINANCIAL POSITION – CLASSIFIED BY BUSINESS LINES

Property and casualty insurance Health insurance
In € million 30/6/2021 31/12/2020 30/6/2021 31/12/2020
Assets
Property, plant and equipment 187.5 193.0 31.7 36.9
Intangible assets 681.4 683.5 308.4 294.9
Investments
Investment property 192.9 196.5 236.3 235.3
Financial assets accounted for using the equity method 85.5 81.3 195.1 230.4
Other investments 5,752.6 5,682.3 3,871.1 3,874.3
Unit-linked and index-linked life insurance investments 0.0 0.0 0.0 0.0
Reinsurers' share of technical provisions 457.4 389.1 2.7 1.1
Reinsurers' share of technical provisions for unit-linked and index-linked life
insurance 0.0 0.0 0.0 0.0
Receivables, including insurance receivables 571.3 483.6 296.3 311.8
Income tax receivables 46.6 46.4 3.0 1.8
Deferred tax assets 13.8 3.7 –0.2 0.0
Cash and cash equivalents 320.8 266.6 175.1 164.5
Total assets by business line 8,310.0 8,026.0 5,119.5 5,151.0
Liabilities
Subordinated liabilities 1,100.4 1,069.9 0.0 0.0
Technical provisions 4,491.2 4,122.7 3,742.1 3,623.9
Technical provisions for unit-linked and index-linked life insurance 0.0 0.0 0.0 0.0
Financial liabilities 655.5 716.0 26.4 29.5
Other provisions 356.1 395.2 351.7 408.5
Liabilities and other items classified as liabilities 607.9 694.2 266.6 241.2
Income tax liabilities 64.4 63.2 6.5 6.6
Deferred tax liabilities 65.7 61.3 129.4 156.8
Total liabilities by business line 7,341.1 7,122.6 4,522.8 4,466.5
Life insurance Consolidation Group
30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020
138.8 134.9 0.0 0.0 358.0 364.7
1,177.3 1,120.4 0.0 0.0 2,167.0 2,098.8
830.4 787.4 0.0 0.0 1,259.6 1,219.2
310.2 366.3 0.0 0.0 590.8 677.9
11,000.6 11,494.0 –570.9 –628.5 20,053.5 20,422.1
5,181.0 5,218.1 0.0 0.0 5,181.0 5,218.1
121.4 124.0 0.0 0.0 581.5 514.3
0.0 0.1 0.0 0.0 0.0 0.1
101.1 208.8 –183.5 –319.8 785.3 684.2
12.1 10.9 0.0 0.0 61.7 59.1
20.9 4.9 0.0 0.0 34.6 8.6
280.9 209.6 0.0 0.0 776.7 640.7
19,174.6 19,679.3 –754.4 –948.4 31,849.7 31,908.0
431.7 419.3 –431.7 –419.3 1,100.4 1,069.9
11,065.1 11,450.7 –1.3 –1.6 19,297.1 19,195.7
5,074.0 5,115.5 0.0 0.0 5,074.0 5,115.5
117.7 91.6 –107.5 –143.4 692.1 693.6
39.9 45.5 –1.1 –2.0 746.6 847.2
435.2 441.1 –213.7 –382.3 1,095.9 994.2
34.5 23.2 0.0 0.0 105.5 93.1
180.9 205.7 0.0 0.0 376.0 423.9
17,379.0 17,792.6 –755.4 –948.5 28,487.5 28,433.1
Consolidated equity and non-controlling interests 3,362.2 3,474.8
Total equity and liabilities 31,849.7 31,908.0

The amounts indicated for each business line have been adjusted to eliminate amounts resulting from internal transactions. Therefore, the balance of segment assets and segment equity and liabilities does not allow conclusions to be drawn with regard to the equity allocated to the respective business line.

1. Investments plus valuation hierarchies for fair value measurements

Investments are broken down into the following classes and categories of financial instruments:

Other investments
At 30 June 2021
In € million
Variable-income
securities
Fixed-income
securities
Loans and
other
investments
Derivative
financial
instruments
Investments
under
investment
contracts
Total
Financial assets at fair value through profit or loss 8.8 165.6 0.0 3.7 56.0 234.1
Available-for-sale financial assets 1,171.6 18,108.6 0.0 0.0 0.0 19,280.2
Loans and receivables 0.0 63.7 475.5 0.0 0.0 539.2
Total 1,180.3 18,337.9 475.5 3.7 56.0 20,053.5
of which fair value option 8.8 165.6 0.0 0.0 0.0 174.4
Other investments
At 31 December 2020
In € million
Variable-income
securities
Fixed-income
securities
Loans and
other
investments
Derivative
financial
instruments
Investments
under
investment
contracts
Total
Financial assets at fair value through profit or loss 6.4 162.8 0.0 17.8 53.9 241.0
Available-for-sale financial assets 978.8 18,700.1 0.0 0.0 0.0 19,678.9
Loans and receivables 0.0 88.3 413.9 0.0 0.0 502.2
Total 985.3 18,951.2 413.9 17.8 53.9 20,422.1
of which fair value option 6.4 162.8 0.0 0.0 0.0 169.3
Unit-linked and index-linked
life insurance investments
At 30 June 2021
In € million
Variable-income
securities
Fixed-income
securities
Loans and
other
investments
Derivative
financial
instruments
Total
Financial assets at fair value through profit or loss 2,517.8 2,572.8 70.7 19.7 5,181.0
Total 2,517.8 2,572.8 70.7 19.7 5,181.0
Unit-linked and index-linked
life insurance investments
At 31 December 2020
In € million
Variable-income
securities
Fixed-income
securities
Loans and
other
investments
Derivative
financial
instruments
Total
Financial assets at fair value through profit or loss
Total
2,076.4
2,076.4
3,024.4
3,024.4
117.4
117.4
0.0
0.0
5,218.1
5,218.1

Determination of fair value

A range of accounting policies and disclosures requires the determination of the fair value of financial and non-financial assets and liabilities. UNIQA has defined a control framework with regard to the determination of fair value. This includes a measurement team, which bears general responsibility for monitoring all major measurements of fair value, including Level 3 fair values, and reports directly to the respective Member of the Management Board.

A review of the major unobservable inputs and the measurement adjustments is carried out regularly. If information from third parties (e.g. price quotations from brokers or price information services) is used to determine fair values, the evidence obtained from third parties is examined in order to see whether such measurements meet the requirements of IFRSs. The level in the fair value hierarchy to which these measurements are attributable is also tested. Major items in the measurement are reported to the Audit Committee.

As far as possible, UNIQA uses data that are observable on the market when determining the fair value of an asset or a liability. Based on the inputs used in the measurement techniques, the fair values are assigned to different levels in the fair value hierarchy.

  • Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities. At UNIQA, these primarily involve quoted shares, quoted bonds and quoted investment funds.
  • Level 2: measurement parameters that are not quoted prices included in Level 1 but which can be observed for the asset or liability either directly (i.e. as a price) or indirectly (i.e. derived from prices), or are based on prices from markets that have been classified as inactive. The parameters that can be observed here include, for example, exchange rates, yield curves and volatilities. At UNIQA, these include in particular quoted bonds that do not fulfil the conditions under Level 1, along with structured products.

Level 3: measurement parameters for assets or liabilities that are not based or are only partly based on observable market data. The measurement here primarily involves application of the discounted cash flow method, comparative procedures with instruments for which there are observable prices and other procedures. As there are no observable parameters here in many cases, the estimates used can have a significant impact on the result of the measurement. At UNIQA, primarily other equity investments, private equity and hedge funds as well as structured products that do not fulfil the conditions under Level 2 are assigned to Level 3.

If the inputs used to determine the fair value of an asset or a liability can be assigned to different levels of the fair value hierarchy, the entire fair value measurement is assigned to the respective level of the fair value hierarchy that corresponds to the lowest input significant for the measurement overall.

UNIQA recognises reclassifications between different levels of the fair value hierarchy at the end of the reporting period in which the change occurred.

The measurement processes and methods are as follows:

Financial instruments measured at fair value

For the measurement of capital investments, techniques best suited for the establishment of corresponding value are applied. The following standard measurement techniques are applied for financial instruments which come under Levels 2 and 3:

Market approach

The measurement method in the market approach is based on prices or other applicable information from market transactions which involve identical or comparable assets and liabilities.

  • Income approach
  • The income approach corresponds to the method whereby the future (expected) payment flows or earnings are inferred on a current amount.
  • Cost approach The cost approach generally corresponds to the value which would have to be applied in order to procure the asset once again.

Measurement techniques and inputs in the determination of fair values

Assets Price method Input factors Price model
Fixed-income securities
Listed bonds Listed price - -
Unlisted bonds Theoretical price CDS spread, yield curves Discounted cash flow
Unquoted asset-backed securities Theoretical price - Discounted cash flow,
single deal review, peer
Infrastructure financing Theoretical price - Discounted cash flow
Variable-income securities
Listed shares/investment funds Listed price - -
Private equities Theoretical price Certified net asset values Net asset value method
Hedge funds Theoretical price Certified net asset values Net asset value method
Other shares Theoretical value WACC,
(long-term) revenue growth rate,
(long-term) profit margins,
control premium
Expert opinion
Derivative financial instruments
Equity basket certificate Theoretical price CDS spread, yield curves,
volatilities (FX, cap/floor, swaption,
constant maturity swap, shares)
Black-Scholes Monte Carlo N-DIM
CMS floating rate note Theoretical price CDS spread, yield curves,
volatilities (FX, cap/floor, swaption,
constant maturity swap, shares)
LIBOR market model, Hull-White
Garman-Kohlhagen Monte Carlo
CMS spread certificate Theoretical price CDS spread, yield curves,
volatilities (FX, cap/floor, swaption,
constant maturity swap, shares)
Contract specific model
FX (binary) option Theoretical price CDS spread, yield curves,
volatilities (FX, cap/floor, swaption,
constant maturity swap, shares)
Black-Scholes-Garman-Kohlhagen
Monte Carlo N-DIM
Option (inflation, OTC, OTC FX
options)
Theoretical price CDS spread, yield curves,
volatilities (FX, cap/floor, swaption,
constant maturity swap, shares)
Black-Scholes Monte Carlo N-DIM,
contract specific model, inflation market
model NKIS
Structured bonds Theoretical price CDS spread, yield curves,
volatilities (FX, cap/floor, swaption,
constant maturity swap, shares)
Black-Scholes-Garman-Kohlhagen
Monte Carlo N-DIM, LMM
Swap, cross currency swap Theoretical price CDS spread, yield curves,
volatilities (FX, cap/floor, swaption,
constant maturity swap, shares)
Black-Scholes-Garman-Kohlhagen
Monte Carlo N-DIM, Black-76-model,
LIBOR market model, contract specific
model
Swaption, total return swaption Theoretical price CDS spread, yield curves,
volatilities (FX, cap/floor, swaption,
constant maturity swap, shares)
Black - basis point volatility, contract
specific model
Investments under investment
contracts
Listed shares/investment funds Listed price - -
Unlisted investment funds Theoretical price Certified net asset values Net asset value method

Valuation hierarchy

Assets and liabilities measured at fair value

Level 1 Level 2 Level 3 Total
In € million 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020
Available-for-sale financial assets
Variable-income securities 895.7 770.7 0.1 2.9 275.8 205.3 1,171.6 978.8
Fixed-income securities 13,790.5 14,048.9 2,717.4 3,535.4 1,600.7 1,115.7 18,108.6 18,700.1
Total 14,686.2 14,819.6 2,717.5 3,538.3 1,876.4 1,321.0 19,280.2 19,678.9
Financial assets at fair value through profit or loss
Variable-income securities 1.7 0.9 1.7 2.0 5.3 3.6 8.8 6.4
Fixed-income securities 131.8 115.2 13.1 28.2 20.7 19.4 165.6 162.8
Derivative financial instruments 0.1 0.1 3.5 9.3 0.0 8.4 3.7 17.8
Investments under investment contracts 47.6 45.5 3.6 3.5 4.8 4.8 56.0 53.9
Total 181.2 161.7 21.9 43.1 30.9 36.3 234.1 241.0
Level 1 Level 2 Level 3 Total
In € million 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020
Financial liabilities
Derivative financial instruments 0.0
0.0
3.2
1.9
1.0
0.0
4.2
1.9
Total 0.0
0.0
3.2
1.9
1.0
0.0
4.2
1.9

Fair values of assets and liabilities measured at amortised cost

Level 1 Level 2 Level 3 Total
In € million 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020
Investment property 0.0 0.0 0.0 0.0 2,594.1 2,521.2 2,594.1 2,521.2
Loans and receivables
Loans and other investments 0.0 0.0 309.9 278.4 165.6 135.5 475.5 413.9
Fixed-income securities 16.0 16.1 59.4 85.7 0.0 0.0 75.4 101.8
Total 16.0 16.1 369.3 364.1 165.6 135.5 551.0 515.7
Level 1 Level 2 Level 3 Total
In € million 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020
Financial liabilities
Liabilities from loans 0.0 0.0 0.0 0.0 687.9 691.7 687.9 691.7
Total 0.0 0.0 0.0 0.0 687.9 691.7 687.9 691.7
Subordinated liabilities 1,237.6 1,231.8 0.0 0.0 0.0 0.0 1,237.6 1,231.8

Transfers between levels 1 and 2

Transfers were made in the reporting period from Level 1 to Level 2 amounting to €322.2 million (2020: €255.5 million) and from Level 2 to Level 1 amounting to €75.5 million (2020: €493.1 million). These are attributable primarily to changes in trading frequency and trading activity.

Valuation hierarchy in unit-linked and index-linked life insurance investments

Assets and liabilities measured at fair value

Level 1 Level 2 Level 3 Total
In € million 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020 30/6/2021 31/12/2020
Financial assets at fair value through profit or loss 3,294 2,908 1,122 1,117 765 1,193 5,181 5,218
Total 3,294 2,908 1,122 1,117 765 1,193 5,181 5,218

Level 3 financial instruments

The following table shows the changes to the fair values of financial instruments whose measurement techniques are not based on observable inputs.

Fixed-income securities Other Other
investments
Total
Unit-linked and index linked life insurance
investments
In € million 2021 2020 2021 2020 2021 2020 2021 2020
At 1 January 1,115.7 879.8 241.6 229.6 1,357.3 1,109.4 1,193.0 120.8
Transfers from Level 3 to Level 2 –1.0 –39.3 0.0 0.0 –1.0 –39.3 0.0
Transfers to Level 3 313.8 2.6 0.0 0.0 313.8 2.6 2.0 604.1
Gains and losses recognised in profit or loss –3.0 –1.9 0.6 –24.8 –2.5 –26.6 –6.8 6.7
Gains and losses recognised in
other comprehensive income
–4.7 14.3 0.2 1.9 –4.6 16.1 0.0
Additions 234.8 258.6 79.8 108.6 314.5 367.2 94.4 0.7
Disposals –55.2 –11.3 –16.5 –88.3 –71.7 –99.6 –521.7 –10.8
Changes from currency translation 0.4 –0.2 0.2 –0.6 0.5 –0.7 4.4 0.0
Change in basis of consolidation 0.0 13.1 0.0 15.1 0.0 28.2 471.5
At 30 June and/or 31 December 1,600.7 1,115.7 305.7 241.6 1,906.4 1,357.3 765.2 1,193.0

Sensitivities

Fixed-income securities

The main unobservable input in the measurement of fixed-income securities is the specific credit spread. In order to be able to measure these securities in a discounted cash flow model, the spreads are derived from a selection of reference securities with comparable characteristics. For the fixed-income securities in Level 3, an increase in the discount rate by 100 basis points results in a 7.1 per cent reduction in value (2020: 7.0 per cent). A reduction in the discount rate by 100 basis points results in an 8.1 per cent increase in value (2020: 8.3 per cent).

Other

Other securities under Level 3 mainly comprise private equity funds and other participations. Private equity funds are measured based on the net asset values which are determined by the fund manager using specific unobservable inputs for all underlying portfolio positions. This is done in accordance with the International Private Equity and Venture Capital Valuation (IPEV) Guideline. For other equity investments under Level 3, invested capital is considered to be an appropriate measure of fair value. In these cases, a sensitivity analysis is not applicable.

2. Net investment income

Classified by business line Property and casualty
insurance
Health insurance Life insurance Group
In € million 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020
Investment property 2.1 2.3 4.2 4.5 21.7 18.3 27.9 25.1
Financial assets accounted for using the equity method 6.2 6.1 4.7 2.6 7.5 4.2 18.4 13.0
Variable-income securities 5.0 –1.8 38.4 –14.8 1.7 2.0 45.1 –14.6
Available for sale 4.8 –1.8 38.4 –15.1 2.0 2.0 45.1 –14.9
At fair value through profit or loss 0.2 0.0 0.1 0.2 –0.2 0.0 0.0 0.3
Fixed-income securities 75.0 15.3 47.8 36.0 111.0 155.5 233.8 206.8
Available for sale 72.7 14.8 45.5 35.3 110.8 155.4 229.0 205.5
At fair value through profit or loss 2.3 0.5 2.3 0.7 0.2 0.1 4.8 1.2
Loans and other investments 3.5 1.4 1.5 1.2 7.8 11.7 12.8 14.3
Loans 0.3 –0.6 0.7 0.7 2.4 2.4 3.4 2.5
Other investments 3.2 1.9 0.7 0.5 5.4 9.3 9.4 11.8
Derivative financial instruments –5.1 –3.3 –4.2 0.0 0.8 –0.7 –8.5 –4.0
Investment administration expenses, interest paid and
other investment expenses –13.0 –12.6 –3.6 –5.7 –5.7 –7.0 –22.3 –25.3
Total 73.5 7.3 88.9 23.8 144.9 184.0 307.2 215.1
Classified by type of income Current
income/expenses
Gains/losses from
disposals and
changes in value
Total of which
impairment
In € million 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020
Financial assets at fair value through profit or loss –4.4 5.4 0.6 –7.9 –3.7 –2.5 0.0 0.0
Variable-income securities
(within the framework of fair value option)
0.3 0.2 –0.3 0.1 0.0 0.3 0.0 0.0
Fixed-income securities
(within the framework of fair value option)
0.2 0.6 4.6 0.7 4.8 1.2 0.0 0.0
Derivative financial instruments –4.8 4.7 –3.7 –8.7 –8.5 –4.0 0.0 0.0
Investments under investment contracts1) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Available-for-sale financial assets 205.2 184.5 69.0 6.1 274.1 190.6 –4.6 –36.6
Variable-income securities 14.6 12.0 30.6 –26.9 45.1 –14.9 –0.7 –21.6
Fixed-income securities 190.6 172.6 38.4 33.0 229.0 205.5 –3.9 –15.0
Loans and receivables 11.9 17.2 0.9 –2.9 12.8 14.3 0.0 –0.5
Fixed-income securities 1.4 1.9 0.0 0.0 1.4 1.8 0.0 0.0
Loans and other investments 10.4 15.3 0.9 –2.9 11.3 12.4 0.0 –0.5
Investment property 39.0 40.9 –11.1 –15.9 27.9 25.1 0.0 0.0
Financial assets accounted for using the equity method 18.4 13.0 0.0 0.0 18.4 13.0 0.0 0.0
Investment administration expenses, interest paid and
other investment expenses –22.3 –25.3 0.0 0.0 –22.3 –25.3 0.0 0.0
Total 247.9 235.8 59.4 –20.7 307.2 215.1 –4.6 –37.1

1) Income from investments under investment contracts is not stated due to its transitory character.

Net profit/(loss) by measurement category In € million

Financial assets at fair value through profit or loss
Recognised in profit/(loss) for the period –3.7 –2.5
Available-for-sale financial assets
Recognised in profit/(loss) for the period 274.1 190.6
of which reclassified from equity to consolidated
income statement –95.4 –32.9
Recognised in other comprehensive income –774.0 25.3
Net income –499.8 215.9
Loans and receivables
Recognised in profit/(loss) for the period 12.8 14.3
Financial liabilities measured at amortised cost
Recognised in profit/(loss) for the period –35.7 –28.7

The currency losses in net investment income amount to 5.2 million (1–6/2020: currency losses in the amount of 9.0 million). Furthermore, positive currency effects amounting to €3.4 million (1–6/2020: negative currency effects of €0.6million) were recognized directly in equity.

3. Premiums

In € million

1–6/2021 1–6/2020

Premiums earned

1–6/2021 1–6/2020

Property and casualty insurance 1,584.7 1,351.5
Gross 1,716.6 1,424.4
Reinsurers' share –132.0 –72.8
Health insurance 601.5 576.4
Gross 603.5 577.7
Reinsurers' share –2.0 –1.3
Life insurance 637.0 511.8
Gross 657.1 523.8
Reinsurers' share –20.2 –12.0
Total 2,823.1 2,439.8

Property and casualty insurance premiums written

1–6/2021 1–6/2020

In € million

Direct insurance
Fire and business interruption insurance 179.4 163.1
Liability insurance 194.0 166.6
Household insurance 108.2 103.3
Motor TPL insurance 413.9 309.0
Legal expense insurance 52.7 51.7
Marine, aviation and transport insurance 39.7 33.0
Other motor insurance 335.7 300.1
Other property insurance 197.1 167.1
Other forms of insurance 121.0 35.1
Casualty insurance 216.7 200.3
Total 1,858.4 1,529.2
Indirect insurance
Fire and business interruption insurance 5.9 15.0
Motor TPL insurance 4.5 6.2
Other forms of insurance 8.5 15.0
Total 19.0 36.2
Total direct and indirect insurance
(amount consolidated)
1,877.4 1,565.4

4. Insurance benefits

Gross Reinsurers' share Net
In € million 1–6/2021 1–6/2020 1–6/2021 1–6/2020 1–6/2021 1–6/2020
Property and casualty insurance
Claims expenses
Claims paid 889.5 815.4 –50.9 –36.7 838.6 778.7
Change in provision for unsettled claims 209.9 46.6 –81.2 20.9 128.7 67.5
Total 1,099.4 861.9 –132.1 –15.8 967.3 846.2
Change in insurance provision –0.2 0.4 0.0 0.0 –0.2 0.4
Change in other technical provisions –0.1 0.0 0.0 0.0 –0.1 0.0
Non-profit-related and profit-related premium
refund expenses
18.0 22.6 0.0 0.0 18.0 22.6
Total benefits 1,117.1 884.9 –132.1 –15.8 985.0 869.2
Health insurance
Claims expenses
Claims paid 386.6 360.9 –0.8 –0.3 385.9 360.6
Change in provision for unsettled claims 9.7 37.6 0.0 0.1 9.7 37.7
Total 396.4 398.5 –0.7 –0.2 395.6 398.3
Change in insurance provision 86.9 76.5 0.0 0.0 86.9 76.6
Change in other technical provisions 0.1 0.3 0.0 0.0 0.1 0.3
Non-profit-related and profit-related premium
refund expenses
33.0 19.0 0.0 0.0 33.0 19.0
Total benefits 516.3 494.3 –0.7 –0.2 515.5 494.1
Life insurance
Claims expenses
Claims paid 607.3 520.6 –12.9 –9.6 594.4 511.0
Change in provision for unsettled claims –0.4 2.2 0.1 –0.9 –0.3 1.3
Total 606.9 522.8 –12.9 –10.5 594.1 512.3
Change in insurance provision –71.5 –66.8 2.4 2.6 –69.0 –64.2
Change in other technical provisions 0.0 0.0 0.0 0.0 0.0 0.0
Non-profit-related and profit-related premium
refund expenses and/or (deferred) benefit
participation expenses 24.8 28.5 0.0 0.0 24.8 28.5
Total benefits 560.2 484.5 –10.5 –7.9 549.8 476.7
Total 2,193.7 1,863.7 –143.3 –23.8 2,050.3 1,840.0

5. Operating expenses

In € million 1–6/2021 1–6/2020
Property and casualty insurance
Acquisition costs
Payments 386.2 320.5
Change in deferred acquisition costs –47.5 –16.1
Other operating expenses 149.5 139.4
Reinsurance commission and share of profit from
reinsurance ceded
–6.5 –6.4
481.7 437.5
Health insurance
Acquisition costs
Payments 58.1 51.6
Change in deferred acquisition costs –8.5 –5.6
Other operating expenses 54.4 56.5
Reinsurance commission and share of profit from
reinsurance ceded
–0.4 –0.2
103.5 102.3
Life insurance
Acquisition costs
Payments 109.0 77.0
Change in deferred acquisition costs 9.5 29.2
Other operating expenses 102.8 69.9
Reinsurance commission and share of profit from
reinsurance ceded
–4.0 –1.5
217.3 174.6
Total 802.5 714.4

6. Restructuring measures

In November 2020, the Supervisory Board approved restructuring measures, which mainly involve reducing the number of employees in Austria. The restructuring provision formed for this purpose in the previous year has been reduced to €84.0 million through utilisation of €14.6 million in the current year.

7. Employees

Average number of employees 1–6/2021 1–6/2020
Total 14,748 12,777
of which sales 4,217 4,137
of which administration 10,531 8,640

8. Dividends paid

A dividend of 0.18 per share was paid on 14 June 2021 (previous year: 0.18). This corresponds to a distribution amounting to €55.3 million (previous year: €55.3 million).

9. Basis of consolidation

The basis of consolidation – including UNIQA Insurance Group AG – comprises 110 fully consolidated companies (31 December 2020: 110) and 5 associates (31 December 2020: 5) accounted for using the equity method.

UNIQA Capital Partners S.A. SICAV-RAIF – Private Equity Select (Munsbach, Luxembourg) and UNIQA Capital Partners S.A. SICAV-RAIF – Infrastructure Equity Select (Munsbach, Luxembourg) were consolidated for the first time in the first quarter of 2021. Light Investment Cotroceni Srl (Bucharest, Romania) was consolidated for the first time in the second quarter of 2021. The initial consolidation of these companies has no material impact on UNIQA.

In the second quarter of 2021, UNIQA Towarzystwo Ubezpieczeń S.A. (Lodz, Poland) was merged with AXA Ubezpieczenia Towarzystwo Ubezpieczeń i Reasekuracji S.A. (Warsaw, Poland) as the absorbing company and was renamed UNIQA Towarzystwo Ubezpieczeń S.A. In addition, UNIQA Towarzystwo Ubezpieczeń na Życie S.A. (Lodz, Poland) was merged with AXA Życie Towarzystwo Ubezpieczeń S.A. (Warsaw, Poland) and its name was changed to UNIQA Towarzystwo Ubezpieczeń na Życie S.A.

Furthermore, UNIQA Számítástechnikai Szolgáltató Kft. (Budapest, Hungary) was deconsolidated in the second quarter of 2021.

10.Relationships with related companies and persons

Companies in the UNIQA Group maintain various relationships with related companies and individuals.

Related companies refer to companies which exercise either a controlling or a significant influence on UNIQA. The group of related companies also includes the nonconsolidated subsidiaries, associates and joint ventures of UNIQA.

Related persons include the members of management holding key positions along with their close family members. This covers in particular the members of management in key positions at those companies which exercise either a controlling or a significant influence on the UNIQA Group, along with their close family members.

Transactions and balances with related
companies
In € million
Companies with
significant
influence on
UNIQA Group
Affiliated
but not
consolidated
companies
Associated
companies of
UNIQA Group
Other related
parties
Total
Transactions in 1–6/2021
Premiums written (gross) 0.5 0.0 0.1 23.8 24.4
Income from investments 3.7 0.1 108.3 0.2 112.2
Expenses from investments –0.9 0.0 0.0 –0.2 –1.1
Other income 0.1 4.2 1.4 0.2 5.9
Other expenses –1.0 –3.5 –1.0 –13.8 –19.2
At 30 June 2021
Investments 202.1 33.3 590.8 50.0 876.2
Cash and cash equivalents 282.1 0.0 0.0 50.7 332.8
Receivables, including insurance receivables 0.2 13.3 0.0 4.7 18.2
Liabilities and other items classified as liabilities 0.0 4.2 0.2 4.4 8.7
Transactions and balances with related
companies
In € million
Companies with
significant
influence on
UNIQA Group
Affiliated
but not
consolidated
companies
Associated
companies of
UNIQA Group
Other related
parties
Total
Transactions in 1–6/2020
Premiums written (gross) 0.4 0.0 0.7 14.6 15.7
Income from investments 0.9 0.0 13.0 2.5 16.4
Expenses from investments –0.6 0.0 0.0 –0.2 –0.8
Other income 0.1 3.6 1.7 0.2 5.6
Other expenses –1.3 –4.2 –1.0 –12.5 –18.9
At 31 December 2020
Investments 182.6 16.3 689.0 47.4 935.3
Cash and cash equivalents 293.2 0.0 0.0 45.4 338.6
Receivables, including insurance receivables 0.1 10.2 0.0 3.7 14.0
Liabilities and other items classified as liabilities 0.0 4.2 0.1 5.1 9.5

Transactions with related persons In € million 1–6/2021 1–6/2020

Premiums written (gross) 0.4 0.3
Salaries and short-term benefits 1) –2.5 –2.8
Pension expenses –1.0 –0.7
Compensation on termination of employment
contract –0.1 –0.1
Expenditures for share-based payments 0.0 –0.6
Other income 0.1 0.1

1) This item includes fixed and variable Management Board remuneration paid from the beginning of the financial year to the reporting date, as well as the Supervisory Board remuneration.

Declaration of the legal representatives

The Management Board of UNIQA Insurance Group AG hereby confirms that, to the best of its knowledge, the condensed consolidated interim financial statements, prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and that the interim Group Management Report gives a true and fair view of the Group's financial position with respect to significant events that occurred during the first six

months of the financial year and the impact on the condensed consolidated interim financial statements with respect to the significant risks and uncertainties for the remaining six months of the financial year, and with respect to the material transactions with related companies or persons that are subject to disclosure.

These consolidated interim financial statements were neither audited in full nor reviewed by an auditor.

Vienna, August 2021

Andreas Brandstetter Chairman of the Management Board

Peter Eichler Member of the Management Board

Wolf-Christoph Gerlach Member of the Management Board

Peter Humer Member of the Management Board

Wolfgang Kindl Member of the Management Board

René Knapp Member of the Management Board

Erik Leyers Member of the Management Board

Klaus Pekarek Member of the Management Board

Kurt Svoboda Member of the Management Board

IMPRINT Owner and publisher UNIQA Insurance Group AG Commercial registry no.: 92933t

Typesetting Produced in-house using firesys

CONTACT

UNIQA Insurance Group AG Untere Donaustrasse 21, 1029 Vienna, Austria Phone: (+43) 01 21175-3773 E-mail: [email protected]

www.uniqagroup.com

Clause regarding predictions about the future

This report contains statements which refer to the future development of the UNIQA Group. These statements present estimations which were reached on the basis of all of the information available to the Group at the present time. If the assumptions on which they are based do not occur, the actual events may vary from the results currently expected. As a result, no guarantee can be provided for the information given.

This is a translation of the German Group Report of UNIQA Group. In case of any divergences, the German original is legally binding.

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