Governance Information • Apr 14, 2016
Governance Information
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Annual Financial Report 2015 according to section 82(4) of the Austrian Stock Exchange Act UNIQA Insurance Group AG
| Corporate Governance Report ��������������������������������������������������������������������������������������������������������������������� 4 | |
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| Report of the Supervisory Board�����������������������������������������������������������������������������������������������������������������15 | |
| Group Management Report�������������������������������������������������������������������������������������������������������������������������18 | |
| Consolidated Financial Statements ���������������������������������������������������������������������������������������������������������� 36 | |
| Notes to the Consolidated Financial Statements�����������������������������������������������������������������������������������42 | |
| Audit Opinion����������������������������������������������������������������������������������������������������������������������������������������������� 165 | |
Since 2004, the UNIQA Group has pledged to comply with the Austrian Code of Corporate Governance and publishes the declaration of conformity both in the Group annual report and on the Group website at www.uniqagroup.com in the Investor Relations section. The Austrian Code of Corporate Governance is also publicly available at www.corporate-governance.at.
Implementation and compliance with the individual rules in the Code are evaluated annually by PwC Wirtschaftsprüfung GmbH – with the exception of Rules 77 to 83. Rules 77 to 83 of the Code are evaluated by the law firm Schönherr Rechtsanwälte GmbH. The evaluation is carried out largely using the questionnaire for the evaluation of compliance with the Code published by the Austrian Working Group for Corporate Governance (as amended January 2015). The reports on the external evaluation in accordance with Rule 62 of the Austrian Code of Corporate Governance can also be found at www.uniqagroup.com.
UNIQA also declares its continued willingness to comply with the Austrian Code of Corporate Governance as currently amended. However, UNIQA deviates from the provisions of the Code as amended with regard to the following C rules (comply or explain rules) and the explanations are set out below.
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, in which these Supervisory Board members discharge duties as members of governing bodies. If such contracts require approval by the Supervisory Board in accordance with Section 95(5)(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 law. All transactions are in any case entered into and processed on an arm's length basis.
*1969, appointed 1 January 2002 until 31 December 2016
Responsible for:
Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements
Number of UNIQA shares held as at 31 December 2015: 21,819 shares
*1959, appointed 1 January 1998 until 31 December 2016
Responsible for:
Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements
Number of UNIQA shares held as at 31 December 2015: 7,341 shares
*1966, appointed 1 July 2011 until 31 December 2016
Responsible for:
• UNIQA International
Number of UNIQA shares held as at 31 December 2015: 7,341 shares
*1959, appointed 1 January 2013 until 31 December 2016
Supervisory Board appointments or comparable functions in other domestic and foreign companies not included in the consolidated financial statements
• Member of the Supervisory Board of Raiffeisen Informatik GmbH, Vienna
Number of UNIQA shares held as at 31 December 2015: 7,341 shares
*1967, appointed 1 July 2011 until 31 December 2016
Responsible for:
Number of UNIQA shares held as at 31 December 2015: 7,990 shares
The work of the members of the Management Board is regulated by the rules of procedure. The division of the business responsibility as decided by the entire Management Board is approved by the Supervisory Board. The rules of procedure govern the obligations of the members of the Management Board to provide the Supervisory Board and each other with information and approve each other's activities. The rules of procedure specify a list of activities that require consent from the Supervisory Board. The Management Board generally holds weekly meetings in which the members of the Management Board report on the current course of business, determine what steps should be taken and make strategic corporate decisions. In addition, there is a continuous exchange of information between the members of the Management Board regarding relevant activities and events.
The meetings of the Management Board of UNIQA Insurance Group AG are attended by the CEOs of UNIQA Österreich Versicherungen AG and Raiffeisen Versicherung AG – Hartwig Löger and Klaus Pekarek respectively – with an advisory vote. The resulting body is known as the Group Executive Board.
The Management Board informs the Supervisory Board at regular intervals, in a timely and comprehensive manner, about all relevant questions of business development, including the risk situation and the risk management of the Group. In addition, the Chairman of the Supervisory Board is in regular contact with the CEO to discuss the Company's strategy, business performance and risk management.
*1953, appointed 3 July 1995 until the 20th AGM (2019)
Supervisory Board appointments in domestic and foreign listed companies
• Chairman of the Supervisory Board of Raiffeisen Bank International AG, Vienna
*1954, appointed 15 May 2006 until the 20th AGM (2019)
*1956, appointed 21 May 2007 until the 20th AGM (2019)
Supervisory Board appointments in domestic and foreign listed companies
*1956, appointed 25 May 2009 until the 20th AGM (2019)
*1955, appointed 26 May 2014 until the 20th AGM (2019)
*1948, appointed 25 May 2009 until the 20th AGM (2019)
Supervisory Board appointments in domestic and foreign listed companies
• Vice Chairman of the Supervisory Board of Josef Manner & Comp. Aktiengesellschaft, Vienna
*1962, appointed 29 May 2012 until the 20th AGM (2019)
*1970, appointed 29 May 2012 until the 20th AGM (2019)
Supervisory Board appointments in domestic and foreign listed companies
• Member of the Supervisory Board of Raiffeisen International AG, Vienna
*1968, appointed 26 May 2014 until the 20th AGM (2019)
Supervisory Board appointments in domestic and foreign listed companies
Johann-Anton Auer *1954, since 18 February 2008
Number of UNIQA shares held as at 31 December 2015: 10,106 shares
*1976, from 10 April 2013 until 26 May 2015
*1962, since 10 April 2013
Number of UNIQA shares held as at 31 December 2015: 56 shares
*1969, since 26 May 2015
Number of UNIQA shares held as at 31 December 2015: 750 shares
*1956, since 17 September 1999
Number of UNIQA shares held as at 31 December 2015: 912 shares
*1952, from 31 May 2000 to 1 September 2008 and since 15 April 2009
Number of UNIQA shares held as at 31 December 2015: 912 shares
The Supervisory Board of UNIQA Insurance Group AG held six meetings in 2015.
• Walter Rothensteiner
• Christian Kuhn
• Walter Rothensteiner
• Christian Kuhn
• Walter Rothensteiner
• Christian Kuhn
• Erwin Hameseder
• Christian Kuhn
The Supervisory Board advises the Management Board in its strategic planning and projects. It decides on the matters assigned to it by law, the Articles of Association and its rules of procedure. The Supervisory Board is responsible for supervising the management of the Company by the Management Board. It is made up of nine shareholder representatives.
A Committee for Board Affairs has been appointed to handle the relationship between the Company and the members of its Management Board relating to employment and salary; this committee also acts as the Nominating and Remuneration Committee. The Committee for Board Affairs dealt with legal employment formalities concerning the members of the Management Board and with questions relating to remuneration policy and succession planning at its two meetings in 2015.
The Working Committee of the Supervisory Board is called upon to make decisions only if the urgency of the matter means that the decision cannot wait until the next meeting of the Supervisory Board. It is the Chairman's responsibility to assess the urgency of the matter. The decisions passed must be reported in the next meeting of the Supervisory Board. Generally, the Working Committee can make decisions on any issue that is the responsibility of the Supervisory Board but this does not include issues of particular importance or matters that must be decided upon by the full Supervisory Board by law. The Working Committee did not convene for any meetings in 2015. It made one decision by way of circular resolution.
The Audit Committee of the Supervisory Board performs the duties assigned to it by law. The Audit Committee convened for three meetings, which were also attended by the auditor of the (consolidated) financial statements. The meetings discussed all the documents relating to the financial statements, the Corporate Governance Report and the appropriation of profit proposed by the Management Board. Furthermore, the audit of the 2015 financial statements of the companies of the consolidated group was planned and the auditor reported on the results of preliminary audits. In particular, the Audit Committee was provided on a quarterly basis with the reports of the Internal Auditing department concerning audit areas and material findings based on the audits conducted.
Finally, the Investment Committee advises the Management Board with regard to its investment policy; it has no decision-making authority. The Investment Committee held four meetings at which the members discussed the capital investment strategy, questions concerning capital structure and the focus of risk and asset liability management.
The various chairmen of the committees informed the members of the Supervisory Board about the meetings and the work of the respective committees. For information concerning the activities of the Supervisory Board and its committees, please also refer to the details in the Report of the Supervisory Board.
All elected members of the Supervisory Board have declared their independence under Rule 53 of the Austrian Code of Corporate Governance. Kory Sorenson satisfies the criteria in Rule 54 for companies with a free float of more than 20 per cent.
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 concerned.
UNIQA has established the following points as additional criteria for determining the independence of a Supervisory Board member:
The Supervisory Board member should not have been an auditor of the Company or a shareholder or salaried employee of the auditing company within the last three years.
The Supervisory Board member should not be a member of the Management Board of another company in which a Management Board member of our Company is a member of the other company's Supervisory Board unless one of the companies is a member of the other company's group or holds an investment in the other company.
UNIQA is convinced that a high degree of diversity in the Group can enhance its success on a sustainable basis. Diversity at management levels has a positive impact on the corporate culture. UNIQA defines diversity as different nationalities, cultures and a collective of men and women. This diversity also reflects the make-up of our customers in Austria and in 18 other European countries, and helps us to understand them better in order to offer suitable products and services. People from more than 32 different countries are employed by UNIQA at the Vienna corporate head office alone.
Over the course of 2015, the proportion of women on Management Boards and in senior executive positions throughout the Group rose to 20 per cent. The equivalent figure at an international level was 29 per cent – this represents a 4 per cent increase compared with the previous year.
The fact that the shareholder representative on our Supervisory Board Kory Sorenson was selected as one of the 100 most influential women in the insurance industry by a British professional magazine is particularly encouraging.
Enabling employees to achieve a work-life balance and providing them with straightforward access to services that make everyday life easier, especially for mothers, are key factors in promoting women. UNIQA has created a comprehensive range of services known as "Freiraum" (Latitude) that addresses these needs. In conjunction with an external partner (KibisCare), this range of services includes a comprehensive childcare service even on "bridging days" (between a public holiday and the weekend), an advisory and agency service for childcare, private tuition, as well as a broad range of health and sports activities. Advice and support with caring for family members has also been offered since 2015 as part of the "Elder Care" scheme.
UNIQA also supports flexible working hours and offers the option of teleworking. In 2015, 23 per cent of the administrative employees in Austria made use of part-time working while 11 per cent opted for teleworking.
In terms of professional development for managers, UNIQA believes that the most promising approach is to undertake joint development activities for both women and men. Cooperation between men and women then becomes a matter of course and also works much better on a day-to-day basis. The "INSPIRE" management development programme, which has been running since 2013, aims to put this joint development approach into practice: it brings together managers from all the markets in the UNIQA Group; a quarter of the participants are women. From a recruitment perspective, however, UNIQA exercises positive discrimination, giving preference to female applicants where they have the same skills and qualifications.
The members of the Management Board receive their remuneration exclusively from UNIQA Insurance Group AG, the Group holding company.
| In € thousand | 2015 | 2014 |
|---|---|---|
| The expenses attributable to the financial year in question for the remuneration of the members of the Management Board amounted to: |
||
| Fixed remuneration1) | 2,469 | 2,468 |
| Variable remuneration | 1,029 | 2,242 |
| Current remuneration | 3,498 | 4,710 |
| Termination benefit entitlements | 0 | 0 |
| Total | 3,498 | 4,710 |
| of which proportionately recharged to operating subsidiaries: | 2,157 | 2,173 |
| Former members of the Management Board and their surviving dependants received: | 2,751 | 2,706 |
1) The fixed salary components included remuneration in kind equivalent to € 86,661 (2014: € 85,463).
| Name of Mgt. Board member In € thousand |
Fixed remunera tion |
Variable remuneration (STI)1) |
Multi-year share-based remuneration (LTI)2) |
Total current remuneration |
Termination benefit entitlements |
Total for the year |
|---|---|---|---|---|---|---|
| Andreas Brandstetter | 609 | 250 | 0 | 859 | 0 | 859 |
| Hannes Bogner | 459 | 195 | 0 | 653 | 0 | 653 |
| Wolfgang Kindl | 459 | 190 | 0 | 649 | 0 | 649 |
| Thomas Münkel | 485 | 204 | 0 | 689 | 0 | 689 |
| Kurt Svoboda | 458 | 190 | 0 | 648 | 0 | 648 |
| Total 2015 | 2,469 | 1,029 | 0 | 3,498 | 0 | 3,498 |
| Total 2014 | 2,468 | 2,242 | 0 | 4,710 | 0 | 4,710 |
1) The Short-Term Incentive (STI) includes the variable remuneration for the 2014 financial year, paid out in 2015.
2) The Long-Term Incentive (LTI) corresponds with a share-based remuneration agreement that was introduced in 2013 for the first time, with the beneficiary entitled to receive a cash settlement following a 4-year term. Details can be found in the Notes to the Consolidated Financial Statements.
In 2016, it is expected that the members of the Management Board of the UNIQA Insurance Group AG will be paid a variable remuneration (STI) in the amount of €1.9 million for the 2015 financial year.
In addition to the remuneration listed above, the following pension fund contributions were paid in the financial year for the existing pension commitments to the members of the Management Board. The compensation payments arise if a member of the Management Board steps down before the age of 65 because pension entitlements are generally funded in full until the age of 65.
| the year | |
|---|---|
| Andreas Brandstetter 84 0 |
84 |
| Hannes Bogner 128 0 |
128 |
| Wolfgang Kindl 119 0 |
119 |
| Thomas Münkel 245 0 |
245 |
| Kurt Svoboda 105 0 |
105 |
| Total 2015 681 0 |
681 |
| Total 2014 681 0 |
681 |
The remuneration paid to the members of the Supervisory Board for their work in the 2014 financial year was €443,750. Provisions of €425,000 have been set aside for the remuneration to be paid for this work in 2015. A total of €49,100 was paid out in 2015 to cover attendance fees and out-of-pocket expenses (2014: €32,700).
| In € thousand | 2015 | 2014 |
|---|---|---|
| Current financial year (provision) | 425 | 444 |
| Attendance fees | 49 | 33 |
| Total | 474 | 476 |
The breakdown of the total remuneration (including attendance fees) paid to the individual
members of the Supervisory Board was as follows:
| Name of Supervisory Board member | Remuneration | Remuneration | |
|---|---|---|---|
| In € thousand | 2015 | 2014 | |
| Walter Rothensteiner | 74 | 72 | |
| Christian Kuhn | 65 | 61 | |
| Georg Winckler | 0 | 24 | |
| Erwin Hameseder | 65 | 62 | |
| Eduard Lechner | 65 | 53 | |
| Günther Reibersdorfer | 0 | 22 | |
| Ewald Wetscherek | 0 | 20 | |
| Markus Andréewitch | 33 | 20 | |
| Ernst Burger | 37 | 35 | |
| Peter Gauper | 39 | 35 | |
| Johannes Schuster | 37 | 35 | |
| Kory Sorenson | 43 | 27 | |
| Payments to employee representatives | 17 | 12 | |
| Total | 474 | 476 |
Former members of the Supervisory Board did not receive any remuneration.
The disclosures in accordance with Section 239(1) of the Austrian Commercial Code in conjunction with Section 80b of the Austrian Insurance Supervisory Act, which must be included as mandatory disclosures in the notes to the financial statements for IFRS financial statements to release the Company from the requirement to prepare financial statements in accordance with the Austrian Commercial Code, are defined more broadly for the separate financial statements in accordance with the provisions of the Austrian Commercial Code. The separate financial statements include not only the remuneration for the decision-making functions (Management Board) of UNIQA Insurance Group AG, but also the remuneration paid to the Management Boards of the subsidiaries if such remuneration is based on a contract with UNIQA Insurance Group AG.
A short-term incentive (STI) is offered in which a one-off payment is made based on the relevant earnings situation if the specified individual objectives for the payment of the incentive have been met. A long-term incentive (LTI) is also provided in parallel as a share-based payment arrangement with cash settlement, and this provides for one-off payments after a period of four years in each case based on virtual investments in UNIQA shares each year and the performance of UNIQA shares, the ROE and the total shareholder return over the period. Maximum limits are agreed. This LTI is subject to an obligation on the members of the Management Board to make an annual investment in UNIQA shares with a holding period of four years in each case. The system complies with Rule 27 of the Austrian Code of Corporate Governance.
UNIQA has agreed retirement pensions, occupational disability benefits and surviving dependants' pensions for the members of the Management Board. The beneficiaries' actual pension entitlements are a contractual arrangement with Valida Pension AG, which is responsible for managing the pensions. The retirement pension generally becomes due for payment when the beneficiary reaches 65 years of age. The pension entitlement is reduced in the event of an earlier retirement, with the pension eligible for payment once the beneficiary reaches the age of 60 at the earliest. In the case of the occupational disability pension and survivor's benefits, basic amounts are provided as a minimum pension.
The pension plan at Valida Pension AG is funded by UNIQA through ongoing contributions for the individual members of the Management Board. Compensation payments must be made to Valida Pension AG if members of the Management Board step down before the age of 65 (imputed contribution payment duration to prevent overfunding).
Severance payments have been agreed based on the provisions of the Austrian Salaried Employee Act. These severance payments, which are made if the employment contract of a member of the Management Board is terminated prematurely, comply with the criteria set out in Rule 27a of the Austrian Code of Corporate Governance. The member of the Management Board generally retains his or her pension entitlements if his or her function is terminated, but the entitlements are subject to curtailment rules.
The remuneration paid to the Supervisory Board is approved at the Annual General Meeting as a total amount for the work in the previous financial year. The remuneration applicable to the individual Supervisory Board members is based on their position within the Supervisory Board and the number of committee positions held.
UNIQA has taken out directors' & officers' (D&O) insurance and, in connection with the implementation of the re-IPO in 2013, public offering of securities insurance (POSI) for the members of the Management Board, Supervisory Board and senior executives. The costs are borne by UNIQA.
A comprehensive Risk report (Rule 67 of the Austrian Code of Corporate Governance) is included in the notes to the consolidated financial statements. The notifications concerning directors' dealings in the year under review (Rule 73 of the Austrian Code of Corporate Governance) can be found in the Investor Relations section of the Group website at www.uniqagroup.com.
Implementation of, and compliance with, the individual rules in the Austrian Code of Code of Corporate Governance were evaluated by PwC Wirtschaftsprüfung GmbH for the 2015 financial year – with the exception of Rules 77 to 83. Compliance with Rules 77 to 83 of the Code was evaluated by Schönherr Rechtsanwälte GmbH. The evaluation is carried out largely using the questionnaire for the evaluation of compliance with the Code published by the Austrian Working Group for Corporate Governance (as amended January 2015).
On completion of the evaluation, PwC Wirtschaftsprüfung GmbH and Schönherr Rechtsanwälte GmbH confirmed that UNIQA had complied with the rules of the Austrian Code of Corporate Governance in 2015 – to the extent that these rules were covered by UNIQA's declaration of conformity. Some of the rules were not applicable to UNIQA in the evaluation period.
Vienna, 18 March 2016
Andreas Brandstetter Chairman of the Management Board
Hannes Bogner Member of the Management Board
Wolfgang Kindl Member of the Management Board
Thomas Münkel Member of the Management Board
Kurt Svoboda Member of the Management Board
The year 2015 was a challenging one for the European insurance industry. Returns on European government bonds with the best credit ratings fell to record lows following the ECB's decision to implement significant bond purchases. This affects all long-term investors in secure fixed-income securities, and therefore the insurance industry as well. Despite this, in 2015 – the fourth full year of the UNIQA 2.0 strategic programme – UNIQA was able to achieve the best results in the history of the Group.
The cornerstones of the strategic programme remain unchanged: the aim is to further increase the number of customers in the two existing core markets by 2020 through UNIQA focusing on its core expertise as a direct insurer. The company is striving for the further gradual improvement in the overall technical results, an increase in economic earnings performance for the life insurance business – particularly in Austria – and careful but profitable growth in Central and Eastern Europe.
The increased digitalisation of our entire societal and economic life represents a challenge as well as an opportunity. UNIQA intends to launch a significant investment programme in 2016 in preparation for this change and in order to set a new direction for information technology in the Group as a whole. This programme is being implemented from a position of strength: as at the end of 2015 the economic capital ratio amounted to 182.2 per cent. In conjunction with the continued low level of interest rates, however, these planned investments will result in the earnings before taxes in 2016 being well below the 2015 level from today's point of view. Nevertheless, they are absolutely necessary for the long-term stable safeguarding of the Group's profits.
During 2015, the Supervisory Board was regularly informed by the Management Board about the business performance and position of UNIQA Insurance Group AG and the Group as a whole. It also supervised the Management Board's management of the business and fulfilled all the tasks assigned to the Supervisory Board by law and the Articles of Association. At the Supervisory Board meetings, the Management Board presented detailed quarterly reports and provided additional oral as well as written reports. The Supervisory Board was given timely and comprehensive information about those measures requiring its approval.
The members of the Supervisory Board are regularly invited to participate in information events on relevant topics. Two special seminars were held in 2015 on the topic of "The Insurance Supervision Act 2016, the Solvency II regulations and the International Financial Reporting Standards (IFRSs)", and on "Compliance and audit under the new Solvency II regulations".
The Supervisory Board met on six occasions in 2015. It also adopted two decisions by circulating a written resolution.
Discussions focused on the Group's earnings situation and its further strategic development.
At the meeting held on 5 March, the Supervisory Board mainly discussed the Group's preliminary results for 2014 and the trends in the first few weeks of the 2015 financial year.
The Supervisory Board meeting on 14 April focused on the audit of the annual financial statements and consolidated financial statements for the year ended 31 December 2014 and on the reports from the Management Board with up-to-date information on the performance of the Group in the first quarter of 2015. The Supervisory Board also discussed the agenda for the 16th Annual General Meeting held on 26 May 2015.
The meeting of the Supervisory Board held on 21 May was dedicated to a discussion of the Group's earnings situation in the first quarter of 2015.
The Supervisory Board was reconstituted in the meeting on 26 May based on the new election of all Supervisory Board members.
The Supervisory Board approved a new issue of a hybrid capital bond amounting to €500 million by circular resolution on 31 May.
On 29 July, the Supervisory Board passed the resolution by circular to sell the stake in Casinos Austria Aktiengesellschaft.
At its meeting on 10 September, the Supervisory Board discussed the Group's earnings situation in the first half of the 2015, the latest developments in the third quarter of 2015, and the forecast for the 2015 financial year. It also addressed the equity planning of the Group companies under Solvency II.
In addition to receiving reports on the results of the Group in the first three quarters of 2015 and the latest performance information for the fourth quarter of 2015, the meeting of the Supervisory Board on 26 November held detailed discussions on the forecast for 2015. The Supervisory Board also evaluated is activities in accordance with the Austrian Code of Corporate Governance.
To facilitate the work of the Supervisory Board and to improve its efficiency, other committees have been set up in addition to the mandatory financial Audit Committee.
The Working Committee did not hold any meetings in the past financial year. The Working Committee approved the terms of the hybrid capital bond by way of a circular resolution on 17 July.
The Committee for Board Affairs, which also exercises the functions of the Nominating and Remuneration Committee, dealt with legal employment formalities concerning the members of the Management Board and with questions relating to remuneration strategy and succession planning at two separate meetings.
The Investment Committee held four meetings at which the members discussed the capital investment strategy, questions concerning capital structure and the focus of risk and asset liability management.
The Audit Committee held three meetings in 2015 and these meetings were also attended by the auditors of the (consolidated) financial statements. All of the documents relating to the financial statements and the appropriation of profit proposed by the Management Board were discussed at the meeting on 14 April, with the Compliance Manager's annual activity report for 2014 also submitted and acknowledged in particular. At the meeting held on 21 May, the auditor presented the planning for the audits of the 2015 financial statements prepared by the companies in the UNIQA Group and coordinated this planning and strategy with the committee. At the meeting held on 26 November, the auditor informed the committee about the findings from its preliminary audits to date. The meeting acknowledged a report by the auditor assessing the extent to which the risk management system was fully functioning. In addition, the Audit Committee received quarterly reports from Internal Audit on the areas audited by this department and any material findings that arose from these audits.
The various chairmen of the committees informed the members of the Supervisory Board about the meetings and their committee's work.
The separate financial statements prepared by the Management Board, the management report of UNIQA Insurance Group AG, the consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRSs) – as adopted by the EU – and the Group management report for the year ended 31 December 2015 were audited by PwC Wirtschaftsprüfung GmbH, which issued an unqualified audit opinion.
The Supervisory Board noted the findings of the audit with approval.
The audit of the compliance of the Corporate Governance Report with Section 243b of the Austrian Commercial Code and the evaluation of UNIQA's compliance with the rules of the Austrian Code of Corporate Governance (with the exception of Rules 77 to 83) in the 2015 financial year was carried out by PwC Wirtschaftsprüfung GmbH Wirtschaftsprüfungs- und Steuerberatungsgesellschaft. The audits found that UNIQA had complied with the rules of the Austrian Code of Corporate Governance in the 2015 financial year to the extent that the rules were included in UNIQA's declaration of conformity.
The Supervisory Board acknowledged the consolidated financial statements for 2015 and approved the 2015 annual financial statements of UNIQA Insurance Group AG. It also endorsed both the management report and the Group management report. The 2015 annual financial statements were thereby adopted in accordance to Section 96(4) of the Austrian Stock Corporation Act.
The Supervisory Board reviewed and approved the proposal for the appropriation of profit submitted by the Management Board. Accordingly, a dividend distribution of 47 cents per share will be proposed to the Annual General Meeting on 30 May 2016.
The Supervisory Board would like to take this opportunity to thank all employees of the UNIQA Group for the immense personal commitment and dedication they have shown over the past year.
Vienna, April 2016
On behalf of the Supervisory Board
Walter Rothensteiner Chairman of the Supervisory Board
The eurozone economy experienced moderate expansion in the past year and proved itself to be resilient to the global headwind. Gross domestic product (GDP) rose by 1.5 per cent in 2015 according to forecasts, thereby showing accelerated growth as compared with the previous year. European consumers have regained their confidence following the euro crisis of 2011/2012, resulting in an expansion of private consumption which is driving domestic demand in the eurozone, with corporate investments still lagging somewhat behind. Some of the major emerging nations which export raw materials, including Russia and Brazil, suffered from the rapid decline in the oil price last year; at the same time it had an overwhelmingly positive price effect on the eurozone. The fall in demand from China also caused uncertainty on the global financial markets. The unemployment rate fell slightly in the entire eurozone. However, this should not hide the fact that the unemployment rate remained very high in 2015 at 10.9 per cent, and the labour markets remain under strain in many countries in Western and in particular Southern Europe. The seasonally adjusted unemployment rate in Austria rose to 5.7 per cent (Eurostat), corresponding to a 9.1 per cent increase according to the Austrian calculation method. Growth in GDP in Austria also remained below the eurozone average for the second year in a row in 2015 at 0.8 per cent. By contrast the Italian economy experienced a mild recovery with growth in GDP expected at 0.7 per cent, following a recession lasting three years.
Inflation remained below expectations in the eurozone contrary to the growth forecasts, caused not least by the heavy fall in prices for raw materials and energy. The European Central Bank (ECB) relaxed its monetary policy further last year in response to this. The main refinancing rate has been virtually zero since 2014. The ECB has also been implementing some unconventional monetary policy measures since last year, principally in the form of a bond acquisition programme with a value of €60 billion per month. In December 2015, the bond acquisition programme was extended to March 2017, and the deposit rate was pushed down even farther into the negative range (–0.3 per cent). These measures continued to suppress general capital market yields.
In Central and Eastern Europe (CEE) the business environment remained generally positive thanks to the macroeconomic structural conditions, although the picture was not entirely consistent. Countries in Central Europe (Poland, Slovakia, Czech Republic and Hungary) were characterised by positive developments in the labour markets, with unemployment rates to some extent coming close to the levels before the financial crisis in 2008. Economic growth in the region remained above 3 per cent on average for the second year in a row. Solid domestic demand is driving economic performance, and stable public finances and debt levels are making Central Europe a safe harbour.
Most of the national economies in CEE are benefiting from the fall in the prices for raw materials and energy. By contrast, Russia's raw-material exporting economy fell into recession in the first half of 2015, and its further development remains heavily dependent on price developments for petroleum on the global markets. The value of the Russian rouble fell heavily against the hard currencies and inflation accelerated over the course of the year, with households forced to accept significant falls in real income. The international economic sanctions against Russia also remained in place. The economic structural conditions in Ukraine were likewise still under strain, although the political and financial situation showed signs of stabilising in the second half of the year. For instance, the Ukrainian government was able to agree on debt relief with its international bond creditors. Real gross domestic product in Ukraine fell by around 10 per cent in 2015 as a result of the slump in the first half of the year. The fall in GDP in Russia is estimated to be around 3.8 per cent.
The negative developments in Russia and Ukraine more or less act as a counterbalance to the solid economic performance in Central Europe and the recovery in Southeastern Europe. Performance in some of the Balkan countries was even better than economic analysts had predicted at the start of last year. GDP in Croatia rose in 2015 for the first time following a six-year recession. Serbia and Bosnia and Herzegovina recovered from the 2014 flood disaster somewhat more quickly than had been originally expected. The South Western Balkan countries (Albania, Macedonia and Montenegro) recorded growth rates which were above the average for the region, supported in part by some major public investment projects.
The economic conditions in most of the core countries in CEE are expected to remain positive with the support of solid macroeconomic structural conditions. The significant fluctuations on the markets for raw materials render the economic conditions in Russia uncertain and make a recovery any time soon more difficult. Economic analysts in Austria expect a boost to the economy for 2016 as a result of the tax reforms that came into force as of 1 January 2016.
According to initial forecasts, total premium revenues in the Austrian insurance market are expected to increase again by about 0.3 per cent to around €17.5 billion in 2016.
Up 0.2 per cent, life insurance premium revenues rose to a total of €6.8 billion in 2015. Recurring premiums fell by 0.9 per cent. At €1.6 billion, single premiums were up 3.8 per cent. According to initial forecasts, life insurance is expected to record premium revenues of around €6.6 billion in 2016 (–2.7 per cent).
Private health insurance is a complementary partner to the statutory health insurance in Austria. Private health insurance is expected to rise 4.3 per cent for 2015 with total premium revenues of €2.0 billion. Initial forecasts for health insurance show growth of around 3 per cent for 2016.
Premium volumes for property and casualty insurance grew to €8.7 billion in 2015, which represents a 2.4 per cent increase. In 2016, premium revenues in property and casualty insurance are expected to rise by 1.9 per cent to around €8.9 billion.
The German-speaking insurance markets are faced with existing and new challenges, which are still intensifying against the background of the financial and economic crisis. These include long-term developments e.g. in the sociodemographic area, and ongoing developments such as changes in customer behaviour. The "insurance customer 2.0" is more independent, demanding and price sensitive. The change in customers, as illustrated by their new requirements, expectations and values, presents new challenges for insurance undertakings. The "insurance customer 2.0" is more informed and independent when dealing with insurance undertakings. Customer expectations are increasing in relation to greater product flexibility, standardised and reasonably priced products and existing high levels of service. Increased use of new media and greater product transparency are playing a significant role in this. In both the life and the non-life business, the multichannel sales approach is becoming standard in the retail business and electronic channels are becoming an absolute necessity. Greater importance is being attached to technologically-assisted channels in the non-life business in particular.
Most of the markets in the CEE region experienced above average growth rates in 2015, which were also generally well above the levels in Western Europe. The economic outlook is also positive for the region in 2016. UNIQA therefore expects the convergence process for the countries in Central and Eastern Europe to continue, albeit at a slower speed than previously predicted. A comparable trend is also expected for the insurance market in the CEE region. Although the trends in the some of the individual insurance markets were highly heterogeneous in 2015, the region was able to stabilise to a noticeable extent as compared with the last two years.
The market grew in the non-life sector in Central and Eastern Europe in 2015, although the intense price competition, particularly in the vehicle and property insurance business in a series of markets, also continued to prevent higher premium revenues. Improved legal structural conditions combined with the exit or withdrawal of individual competitors should, however, play a part in easing the competitive situation in these markets in the medium term.
Developments in the life insurance sector in CEE were patchy: on the one hand a series of markets – particularly in Southeastern Europe – were able to record double-digit premium growth, despite the downward trend in interest rates, while on the other the continued decline in single premiums – particularly in the Czech Republic – resulted in a slight fall in premium volumes for the region as a whole. The aggregate figures on market development were also impacted in 2015 by negative exchange rate trends in some of the major markets in Eastern Europe, such as in Ukraine and Russia.
The significant improvements in the economic situation in the countries in Central and Eastern Europe should have a greater impact on consumer spending and investment activity by companies in 2016. The insurance markets in CEE should also benefit from this. The insurance markets which are heavily affected by the detrimental effects of the current political crisis in Ukraine and Russia should also return to positive growth rates.
Despite the patchy development overall in 2015, the CEE region remains a growth region with high potential for UNIQA. Per capita expenditure on insurance products, the ratio of premiums to gross domestic product and the share of life insurance in total premium revenues illustrate that there are still significant opportunities for market development in these countries. The economic growth in CEE, which is notably higher as compared with Western Europe and the EU, with the resulting increased prosperity accompanied by a rise in the need for insurance in the population, offer very good growth opportunities for the insurance industry that clearly surpass those in the already saturated insurance markets of Western Europe.
With a premium volume written (including savings portions from the unit-linked and indexlinked life insurance) of €6,325.1 million, the UNIQA Group is among the leading insurance groups in Central and Eastern Europe. The savings portion from the unit-linked and indexlinked life insurance in the amount of €485.4 million was set off against the change in insurance provision, pursuant to FAS 97 (US-GAAP). Without taking the savings portion from the unitlinked and index-linked life insurance into consideration, the premium volume written amounted to €5,839.7 million.
UNIQA offers its products and services via all distribution channels (hired sales force, general agencies, brokers, banks and direct sales) and covers the entire range of insurance lines.
The listed holding company, UNIQA Insurance Group AG, manages the Group and also operates the indirect insurance business. In addition, it carries out numerous service functions for the Austrian and international insurance companies, in order to take best advantage of synergy effects and to consistently implement the Group's long-term corporate strategy.
UNIQA International AG manages the international activities of the Group. This entity is also responsible for the ongoing monitoring and analysis of the international target markets and for acquisitions and post-merger integration.
In July 2015, UNIQA Insurance Group AG successfully placed a subordinated capital bond (Tier 2) to the value of €500 million with institutional investors in Europe. The bond is scheduled for repayment after a period of 31 years and subject to certain conditions, and can only be cancelled by UNIQA after 11 years have elapsed and under certain conditions. The coupon amounts to 6.00 per cent per annum during the first 11 years, after which variable interest applies.
In 2015, the rating agency Standard & Poor's confirmed the rating of UNIQA Insurance Group AG as "A–". The ratings of UNIQA Österreich Versicherungen AG and the Group's reinsurer, UNIQA Re AG in Switzerland, also remained "A". UNIQA Versicherung AG in Liechtenstein received an "A–". Standard & Poor's rates the outlook for all the companies as stable. The rating of the UNIQA subordinated capital bond continues to be "BBB".
In addition to UNIQA Insurance Group AG, UNIQA's 2015 consolidated financial statements also include 56 Austrian and 67 international companies. A total of 23 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, eight Austrian companies and one foreign company were valued according to the equity method as associates. Five associates were of minor importance.
Details on the consolidated companies and associates are contained in the corresponding overview in the consolidated financial statements. The accounting policies are also described in the consolidated financial statements.
UNIQA's comprehensive risk report is included in the notes to the consolidated financial statements 2015.
Since 2004, UNIQA has pledged to comply with the Austrian Code of Corporate Governance and publishes the Corporate Governance Report at www.uniqagroup.com in the Investor Relations section.
UNIQA provides life and health insurance and is active in almost all lines of property and casualty insurance. It serves about 10.0 million customers, over 19.3 million insurance contracts with a premium volume written (including savings portions from the unit-linked and index-linked life insurance) of about €6.3 billion (2014: €6.1 billion) and investments of €29.4 billion (2014: €29.0 billion). UNIQA is the second-largest insurer in Austria, has a strong network in Central and Eastern Europe with a presence in 15 countries and is additionally active in Italy, Liechtenstein and Switzerland.
UNIQA's total premium volume increased in 2015, taking into account the savings portions of the unit-linked and index-linked life insurance in the amount of €485.4 million (2014: €544.7 million), by 4.3 per cent to €6,325.1 million (2014: €6,064.4 million). The total consolidated premium volume written rose by 5.8 per cent to €5,839.7 million (2014: €5,519.7 million).
In the area of insurance policies with recurring premium payments, there was a rise of 0.6 per cent to €5,131.2 million (2014: €5,102.7 million). In the single premium business the premium volume increased by 24.2 per cent to €1,194.0 million (2014: €961.6 million) due to very strong growth in the Raiffeisen Insurance Austria segment and in Italy.
The Group premiums earned, including savings portions from the unit-linked and indexlinked life insurance (after reinsurance) in the amount of €469.3 million (2014: €526.1 million), rose by 4.5 per cent to €6,102.8 million (2014: €5,839.0 million). The volume of premiums earned (net, according to IFRS) increased by 6.0 per cent to €5,633.5 million (2014: €5,312.9 million).
In the 2015 financial year, 41.8 per cent (2014: 43.2 per cent) of the premium volume written (including savings portions from the unit-linked and index-linked life insurance) arose in property and casualty insurance, 15.8 per cent (2014: 15.8 per cent) in health insurance and 42.5 per cent (2014: 40.9 per cent) in life insurance.
The insurance benefits before reinsurance (see Note 33 in the consolidated financial statements) rose in the 2015 financial year by 5.1 per cent to €4,749.9 million (2014: €4,517.7 million). Consolidated net insurance benefits also increased in the past year by 5.1 per cent to €4,607.6 million (2014: €4,383.7 million), principally on account of the sharp increase in single premium business and the negative impact of hailstorms in the third quarter of 2015 amounting to €30 million. The combined ratio in property and casualty insurance improved after reinsurance at Group level to 97.8 per cent (2014: 99.6 per cent).
Total consolidated operating expenses (see Note 34 in the consolidated financial statements) less reinsurance commission and share of profit from reinsurance ceded (see Note 34 in the consolidated financial statements) remained at the same level in the 2015 financial year as the previous year at €1,298.7 million (2014: €1,299.1 million). Expenses for the acquisition of insurance less reinsurance commission and share of profit from reinsurance ceded in the amount of €24.8 million (2014: €26.0 million) increased by 1.4 per cent to €925.6 million (2014: €912.5 million). Other operating expenses fell by 3.5 per cent to €373.1 million (2014: €386.6 million). This was mainly attributable to adjustments in the works agreements for pension fund provision which had a positive effect amounting to €50.6 million.
UNIQA's cost ratio after reinsurance, i.e. the relation of total operating expenses less the amounts received from reinsurance commission and share of profit from reinsurance ceded to the Group premiums earned including savings portions from the unit-linked and index-linked life insurance, dropped to 21.3 per cent during the past year (2014: 22.2 per cent) as a result of the developments mentioned above. The cost ratio before reinsurance was 21.0 per cent (2014: 21.8 per cent).
Total investments including investment property, shares in associates and investments of the unit-linked and index-linked life insurance and current cash held at banks and cash-in-hand rose in the 2015 financial year by €391.1 million to €29,416.1 million (31 December 2014: €29,024.9 million).
Net investment income fell by 6.4 per cent to €831.1 million (2014: €888.2 million) as a result of the low interest rates. Among other things, the gains from the disposal of property had a positive effect on net investment income in the 2015 financial year. Additional drivers of performance included the restructuring of strategic asset allocation for economic optimisation of capital and positive currency effects from investments in US dollars. Due to the balancing of the 13.8 per cent holding in STRABAG SE according to the equity method, there was a positive contribution in the amount of €23.7 million in 2015. A detailed description of the investment income can be found in the consolidated financial statements (see Note 35).
Other income fell in 2015 by 31.9 per cent to €42.5 million (2014: €62.4 million) mainly due to differences in the exchange rate of the Ukrainian hryvnia. Other expenses also fell in the reporting period due to exchange rate differences of the Russian rouble and Ukrainian hryvnia and amounted to €61.0 million (2014: €70.3 million).
The technical result of the UNIQA Group rose significantly in 2015 by 56.5 per cent to €199.9 million (2014: €127.7 million). Operating profit increased to €494.1 million (2014: €447.6 million). UNIQA's earnings before taxes were very satisfactory, above all due to the welcome trend in the operative segments UNIQA Austria and UNIQA International, rising by 11.9 per cent to €422.8 million (2014: €377.9 million). Profit/(loss) for the year rose by 14.2 per cent to €334.6 million (2014: €292.9 million). The consolidated profit/(loss), i.e. the proportion of the net profit for the year attributable to the shareholders of UNIQA Insurance Group AG, amounted to €331.1 million (2014: €289.9 million). The earnings per share rose as a result to €1.07 (2014: €0.94). The return on equity after tax and non-controlling interests in the reporting period was 10.6 per cent (2014: 9.9 per cent).
On this basis therefore the Management Board will propose a dividend of 47 cents per share to the Supervisory Board and the Annual General Meeting (2014: 42 cents per share).
The UNIQA Group's equity rose in the past financial year by 2.3 per cent or €70.5 million to €3,152.7 million due to the net consolidated profit (31 December 2014: €3,082.2 million). The minority interests came to €22.1 million (31 December 2014: €20.2 million). The solvency ratio (Solvency I) increased accordingly to 301.7 per cent (31 December 2014: 295.4 per cent). The total assets of the Group remained almost unchanged in the reporting period, and amounted to €33,078.4 million as at 31 December 2015 (31 December 2014: €33,038.2 million).
UNIQA's cash flows from operating activities amounted to €49.5 million in 2015 (2014: €1,558.5 million). The cash flow from investing activities amounted to –€499.9 million (2014: –€1,088.2 million). As a consequence of the issue of the subordinated capital bond (Tier 2), net cash from financing activities rose to €365.1 million (2014: –€111.2 million).
In total, liquid funds changed by –€85.3 million (2014: €359.1 million). Financial resources available as at the end of 2015 amounted to €890.1 million (2014: €975.8 million).
In 2015, the average number of employees at UNIQA fell to 14,113 (2014: 14,336). These included 5,427 (2014: 5,821) field sales employees. The number of employees in administration amounted to 8,686 (2014: 8,515).
In the 2015 financial year, the Group had 2,591 employees in the Central Europe region (CE) – Poland, Slovakia, Czech Republic and Hungary (2014: 2,806 employees), 2,561 employees (2014: 2,412) in the Southeastern Europe region (SEE) – Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Macedonia, Montenegro and Serbia – and 2,068 employees (2014: 2,328) in the Eastern Europe region (EE) of Romania and Ukraine. There were 96 employees (2014: 103) in Russia. The average number of employees in the Western European markets rose slightly to 369 (2014: 360). A total of 6,428 people were employed in Austria (2014: 6,327). Including the employees of the general agencies working exclusively for UNIQA, the total number of people working for the Group amounts to 21,227.
In 2015, 51 per cent of the staff working in administrative positions at UNIQA Insurance Group AG in Austria were women (2014: 51 per cent). In sales, the ratio was 82 per cent men to 18 per cent women. Twenty-one per cent (2014: 21 per cent) of the employees in administration were working part time. The average age in the past year was 44 years (2014: 43 years). In 2015, a total of 14.8 per cent (2014: 15.3 per cent) of the employees participated in UNIQA's bonus system – a variable remuneration 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, 29 apprentices are being trained. Thirteen new apprentices were accepted in 2015.
Premiums At UNIQA Austria, the premiums written including savings portions from the unit-linked and index-linked life insurance increased in 2015 by 1.2 per cent to €2,807.7 million (2014: €2,773.5 million). Recurring premiums rose by 1.2 per cent to €2,775.5 million (2014: €2,741.7 million), and single premiums increased by 1.2 per cent to €32.2 million (2014: €31.9 million).
Including savings portions from the unit-linked and index-linked life insurance, the volume of premiums earned at UNIQA Austria amounted to €2,229.9 million (2014: €2,137.0 million). The volume of premiums earned (net, according to IFRS) rose in 2015 by 5.5 per cent to €2,102.8 million (2014: €1,993.9 million) as a result of changes to the reinsurance structure.
While premiums written in property and casualty insurance rose by 1.3 per cent to €1,380.6 million (2014: €1,362.6 million), in health insurance they increased by 3.9 per cent to €921.6 million (2014: €887.3 million). In life insurance (including savings portions from the unit-linked and index-linked life insurance) they fell 3.5 per cent to €505.5 million (2014: €523.7 million).
Net premiums earned (according to IFRS) rose in property and casualty insurance by 9.8 per cent to €826.9 million (2014: €753.0 million); in health insurance, they increased by 3.9 per cent to €921.9 million (2014: €886.9 million). They remained stable in life insurance at €354.0 million (2014: €353.9 million). Including savings portions from the unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €481.1 million (2014: €497.0 million).
Benefits Net insurance benefits at UNIQA Austria increased by 5.6 per cent in 2015 to €1,729.4 million (2014: €1,637.2 million). In property and casualty insurance they rose by 11.8 per cent to €577.6 million (2014: €516.5 million) as a result of the changes in the solution for reinsurance; in health insurance they increased by 2.5 per cent to €762.9 million (2014: €744.3 million). In life insurance they grew 3.3 per cent to reach €388.9 million (2014: €376.4 million). Overall, in 2015 the loss ratio in property and casualty insurance amounted to 69.8 per cent (2014: 68.6 per cent). The combined ratio in the UNIQA Austria segment therefore increased after reinsurance to 93.9 per cent (2014: 91.8 per cent).
Operating expenses Operating expenses, less reinsurance commission and share of profit from reinsurance ceded, which amounted to €160.3 million (2014: €175.8 million), decreased in the 2015 financial year by 4.0 per cent to €390.7 million (2014: €407.1 million), also on account of the revaluation of the pension provisions in accordance with IAS 19. They rose 13.9 per cent in property and casualty insurance to €199.1 million (2014: €174.8 million) on account of the changes in the reinsurance structure. They decreased 8.9 per cent in health insurance to €121.8 million (2014: €133.7 million). They fell sharply by 29.2 per cent in life insurance to €69.8 million (2014: €98.6 million) on account of the IAS 19 effect described above and a change to the cost allocation.
The cost ratio of UNIQA Austria after reinsurance, i.e. the relation of total operating expenses, less reinsurance commission and share of profit from reinsurance ceded, to the premiums earned, including savings portions from the unit-linked and index-linked life insurance, amounted to 17.5 per cent during the past year (2014: 19.0 per cent).
Investment income Net investment income in the UNIQA Austria segment dropped in 2015 by 8.8 per cent to €343.2 million (2014: 376.1 million), despite currency gains from the investments in US dollars on account of the low interest rates that still prevail.
Earnings before taxes Earnings before taxes from ordinary activities of UNIQA Austria rose in the reporting period by 5.3 per cent to €288.5 million (2014: €273.9 million) driven by the solid profits in health insurance. They fell by 19.6 per cent in property and casualty insurance to €81.0 million (2014: €100.7 million). In health insurance they rose by 44.0 per cent to €187.5 million (2014: €130.2 million). In life insurance earnings before taxes fell by 53.5 per cent to €20.0 million (2014: €43.0 million); the principal reason for this was the fall in investment income by 21.8 per cent to €147.4 million (2014: €188.6 million).
Premiums The Raiffeisen Insurance Austria segment recorded significant growth in 2015 and increased the premiums written, including savings portions from the unit-linked and index-linked life insurance, by 18.8 per cent to €1,075.8 million (2014: €905.3 million), despite a decline recorded in premiums in unit-linked life insurance. However, the very strong performance in the Austrian core business with Raiffeisen as a partner bank was more than capable of compensating for that deterioration. Recurring premiums were just above the previous year's level at €756.1 million (2014: €754.0 million), while single premiums rose 111.3 per cent to €319.7 million (2014: €151.3 million).
Including savings portions from the unit-linked and index-linked life insurance, the volume of premiums earned at Raiffeisen Insurance Austria amounted to €965.1 million (2014: €794.0 million). The volume of premiums earned (net, according to IFRS) rose in 2015 by 28.8 per cent to €838.0 million (2014: €650.8 million).
While premiums written rose in property and casualty insurance by 4.6 per cent to €160.1 million (2014: €153.2 million), in life insurance they increased by 21.7 per cent to €915.7 million (2014: €752.1 million). Health insurance is not offered in the Raiffeisen Insurance Austria segment.
Net premiums earned (according to IFRS) rose in property and casualty insurance by 4.4 per cent to €83.3 million (2014: €79.8 million); in life insurance, they increased by 32.2 per cent to €754.7 million (2014: €571.1 million). Including savings portions from the unitlinked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €881.8 million (2014: €714.2 million).
Benefits Net insurance benefits in the Raiffeisen Insurance Austria segment increased in 2015 by 21.1 per cent to €829.8 million (2014: €685.2 million). They fell by 2.2 per cent in property and casualty insurance to €55.9 million (2014: €57.1 million). In life insurance they grew 23.2 per cent to reach €773.9 million (2014: €628.1 million) on account of the sharp increase in premium volumes. Overall, in 2015 the loss ratio in property and casualty insurance amounted to 67.1 per cent (2014: 71.6 per cent). The combined ratio in the Raiffeisen Insurance Austria segment therefore improved after reinsurance to 82.7 per cent (2014: 88.1 per cent).
Operating expenses Operating expenses minus reinsurance commission and share of profit from reinsurance ceded, which amounted to €32.9 million (2014: €30.5 million), increased by 20.9 per cent to €135.5 million in 2015 (2014: €112.1 million) on account of the increase in business revenue. They fell slightly in property and casualty insurance by 0.9 per cent to €13.0 million (2014: €13.1 million); in life insurance, they increased by 23.8 per cent to €122.5 million (2014: €99.0 million).
The cost ratio in the Raiffeisen Insurance Austria segment after reinsurance, i.e. the ratio of total operating expenses, less reinsurance commission and share of profit from reinsurance ceded, to the premiums earned, including savings portions from the unit-linked and indexlinked life insurance, fell to 14.0 per cent in 2015 (2014: 14.1 per cent).
Investment income Net investment income in the Raiffeisen Insurance Austria segment also fell in 2015 by 8.3 per cent to €254.7 million (2014: 277.7 million) on account of the low interest rates that still prevail.
Earnings before taxes Earnings before taxes in the Raiffeisen Insurance Austria segment fell by 2.9 per cent to €105.4 million in the reporting year (2014: €108.6 million). They rose by 34.6 per cent in property and casualty insurance to €18.9 million (2014: €14.1 million). In life insurance on the other hand they fell by 8.5 per cent to €86.5 million (2014: €94.6 million).
UNIQA International increased the premiums written, including savings portions from the unit-linked and index-linked life insurance, in 2015 by 2.7 per cent to €2,416.8 million (2014: €2,353.1 million). The premiums written even increased by 4.6 per cent when adjusted for foreign currency effects. Recurring premiums remained stable at €1,574.9 million (2014: €1,574.6 million). Single premiums rose due to the very strong business performance in Italy by 8.2 per cent to reach €842.0 million (2014: €778.5 million). That means that in 2015 the international companies contributed a total of 38.2 per cent (2014: 38.8 per cent) to total Group premiums.
Including savings portions from the unit-linked and index-linked life insurance, UNIQA International's volume of premiums earned amounted to €1,892.3 million (2014: €1,822.2 million). The volume of premiums earned (net, according to IFRS) rose in 2015 by 6.0 per cent to €1,677.1 million (2014: €1,582.3 million).
While premiums written in property and casualty insurance only increased slightly due to negative currency effects and the continued restraint in the highly competitive motor vehicle segment in CEE by 0.1 per cent to €1,085.8 million (2014: €1,084.9 million), these grew by 4.6 per cent in health insurance to €76.9 million (2014: €73.5 million). In life insurance (including savings portions from the unit-linked and index-linked life insurance) they rose, driven by the positive business performance in Italy, by 5.0 per cent to €1,254.1 million (2014: €1,194.6 million).
Net premiums earned (according to IFRS) rose in property and casualty insurance by 1.3 per cent to €595.8 million (2014: €588.2 million), in health insurance they rose by 5.4 per cent to €75.6 million (2014: €71.7 million) and in life insurance by 9.0 per cent to €1,005.8 million (2014: €922.5 million). Including savings portions from the unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €1,221.0 million (2014: €1,162.4 million).
In the Central Europe region (CE) – Poland, Slovakia, the Czech Republic and Hungary – premiums earned, including savings portions from the unit-linked and index-linked life insurance, increased slightly in the 2015 financial year by 0.6 per cent to €527.7 million (2014: €524.7 million). In Eastern Europe (EE) – comprising Romania and Ukraine – premiums earned, including savings portions from the unit-linked and index-linked life insurance, fell above all due to the loss in value of the Ukrainian hryvnia and the restraint in the highly competitive Romanian motor vehicles business by 21.6 per cent to €92.1 million (2014: €117.4 million). In the Southeastern Europe region (SEE) – Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Macedonia, Montenegro and Serbia – in 2015 premiums grew by 12.9 per cent to €232.1 million (2014: €205.7 million). In Russia (RU) the premiums earned, including savings portions from the unit-linked and index-linked life insurance, fell by 26.1 per cent to €48.5 million (2014: €65.6 million) on account of the decrease in value of the Russian rouble. In Western Europe (WE) – Italy, Liechtenstein and Switzerland – the premiums earned, including savings portions from the unit-linked and index-linked life insurance, rose in particular due to the increase in single premiums in Italy by 9.1 per cent to €991.9 million (2014: €908.9 million).
Benefits Net insurance benefits of UNIQA International increased in 2015 by 6.0 per cent to €1,329.3 million (2014: €1,253.6 million). They fell by 2.7 per cent in property and casualty insurance to €362.7 million (2014: €372.7 million). In health insurance they grew 6.8 per cent to reach €48.8 million (2014: €45.7 million). They also increased 9.9 per cent in life insurance to €917.8 million (2014: €835.2 million) due to the strong rise in premium revenue. In 2015 the loss ratio in property and casualty insurance fell to 60.9 per cent (2014: 63.4 per cent) on account of the restructuring of the motor vehicle business which is already at an advanced stage. The combined ratio in the UNIQA International segment after reinsurance amounted to 99.1 per cent (2014: 102.3 per cent).
In the CE region, benefits fell by 3.4 per cent in 2015 to €237.3 million (2014: €245.8 million); in the EE region they fell by 40.4 per cent to €41.5 million (2014: €69.6 million). They grew 16.2 per cent in SEE to reach €149.8 million (2014: €128.9 million). In Russia, benefits amounted to €36.3 million (2014: €44.2 million), and in Western Europe, the volume of benefits also rose due to the strong growth in premiums in life insurance by 13.0 per cent to €864.5 million (2014: €765.2 million).
Operating expenses Operating expenses, not including reinsurance commission and share of profit from reinsurance ceded, which amounted to €134.4 million (2014: €147.9 million), decreased in the 2015 financial year by 1.7 per cent to €427.5 million (2014: €434.8 million) on account of consistent cost management and improvements in process efficiency through the implementation of a target operating model. They fell by 0.5 per cent in property and casualty insurance to €227.7 million (2014: €228.9 million). In health insurance on the other hand they rose by 0.9 per cent to €31.0 million (2014: €30.7 million). In life insurance they fell 3.7 per cent to €168.8 million (2014: €175.3 million).
The cost ratio of UNIQA International after reinsurance, i.e. the ratio of total operating expenses, less reinsurance commission and share of profit from reinsurance ceded, to premiums earned, including savings portions from the unit-linked and index-linked life insurance, decreased during the past year for the reasons mentioned above to 22.6 per cent (2014: 23.9 per cent).
In CE, operating expenses, not including reinsurance commission and share of profit from reinsurance ceded, rose in the reporting year by 7.9 per cent to €172.3 million (2014: €159.7 million). They fell by 20.5 per cent in EE to €51.6 million (2014: €64.9 million). In SEE they increased slightly by 1.6 per cent to €91.2 million (2014: €89.7 million). In Russia, costs fell by 44.0 per cent to €9.4 million (2014: €16.8 million), while they increased in Western Europe by 5.4 per cent to €82.5 million (2014: €78.3 million). In administration (UNIQA International AG), costs decreased by 19.3 per cent to €20.5 million (2014: €25.4 million).
Investment income Net investment income rose during 2015 by 12.0 per cent to €195.3 million (2014: 174.3 million).
Earnings before taxes in the UNIQA International segment rose in the reporting year to €54.5 million (2014: –€1.2 million) despite an extraordinary impairment of goodwill in Ukraine amounting to €13.0 million. Earnings before taxes in property and casualty insurance increased despite the impairment of goodwill mentioned above to €17.6 million (2014: –€21.4 million). In health insurance, it came to –€22,862(2014: –€1.3 million). Lastly, in life insurance earnings before taxes improved by 71.8 per cent to €36.9 million (2014: €21.5 million).
In the reinsurance segment, the premium volume written fell in 2015 by 6.5 per cent to €1,112.1 million (2014: €1,189.3 million). The volume of premiums earned (net, according to IFRS) also fell by 6.1 per cent to €1,014.4 million (2014: €1,080.9 million).
Net insurance benefits fell in 2015 by 10.1 per cent to €720.1 million (2014: €800.8 million).
Operating expenses less reinsurance commission and share of profit from reinsurance ceded in the amount of €8.2 million (2014: €8.2 million) fell by 5.8 per cent to €315.7 million (2014: €335.1 million).
Net investment income fell in 2015 to €27.7 million (2014: €31.3 million).
Earnings before taxes in the reinsurance segment increased to –€2.1 million (2014: –€30.5 million).
In the Group Functions and Consolidation segment, earnings before taxes fell to –€23.5 million (2014: €27.0 million).
Net investment income fell in 2015 to €10.3 million (2014: €28.7 million).
In January 2016 the Management Board of UNIQA Insurance Group AG decided in agreement with the Supervisory Board to launch a comprehensive programme of investments as of 2016 with the aim of aligning processes and products with the changes to requirements and customer expectations as a result of the digital transformation. This innovation and investment programme, which is the biggest in the Company's history, is split over several years and has a total value of around €500 million.
Following the decision to implement this programme, UNIQA is also aligning the Group structure to meet the strategic objectives and challenges of the future. The Management and Supervisory Boards at UNIQA Insurance Group AG decided on a new streamlined Group structure in early March 2016 with a functional organisation and Group-wide responsibilities.
The listed holding UNIQA Insurance Group AG will have three members of the Management Board in future. As of 1 June 2016, the Management Board will consist of Andreas Brandstetter (CEO), Kurt Svoboda (CFO/CRO) and Erik Leyers (COO). Their terms of office will run until 30 June 2020.
The four direct insurance companies operating on the Austrian market up to now, UNIQA Österreich Versicherungen AG, Raiffeisen Versicherung AG, FinanceLife Lebensversicherung AG and Salzburger Landes-Versicherung AG will – subject to the requisite approvals from the authorities – be merged by the first quarter of 2017 at the latest. UNIQA Österreich Versicherungen AG will be the acquiring company.
The moderate economic recovery in the eurozone is expected to continue. Economic analysts in Austria expect a boost to the economy for 2016 as a result of the tax reforms that came into force as of 1 January 2016, as well as an increase in government expenditures for transfer payments. The headwind in the global economy has in recent times increasingly come from the emerging nations in Asia and Latin America and from the national economies dependent on raw materials. By contrast, the economic conditions in most of the core countries in Central and Eastern Europe are expected to be supported by solid macroeconomic structural conditions. The four countries in Central Europe (Poland, Slovakia, Czech Republic and Hungary) can once again expect real economic growth of more than 3 per cent, and the recovery is also generally strengthening in Southeastern Europe. If the recovery in the oil price on the global markets fails to materialise in the medium term, this will increase the uncertainty regarding the performance of the Russian economy following the recession in 2015. Continued financial and macroeconomic stabilisation in Ukraine would also be accompanied by a slow normalisation in the business environment.
Price developments remain muted in the eurozone and in many countries in Central and Eastern Europe, and deflation can also be expected to some extent. Against this background the European Central Bank's highly expansionary monetary policy can continue to be expected, with a similar policy implemented by some of the central banks in CEE as a result. UNIQA is therefore adjusting to a very low general interest rate environment which will last even longer.
UNIQA is launching the biggest innovation programme in its corporate history in 2016, and will be investing around €500 million over the next few years in "re-designing" its business model, establishing the staff expertise required for this and in the IT systems required. These significant investments in the future will to a large extent take effect in 2016 and will be reflected in changes to the expected results. Combined with the ongoing difficulties with the structural conditions, such as an economic outlook which remains moderate, sustained low interest rates, falls in investment income and political uncertainties in certain markets, UNIQA expects earnings before taxes to fall by up to 50 per cent for the 2016 financial year, compared with the very good results for 2015.
Despite the investments and challenging economic environment, UNIQA intends to continue increasing its annual distribution per share over the next few years as part of a progressive dividend policy.
The most important features of the internal controlling and risk management system with regard to the financial reporting process are described in the consolidated financial statements (Risk Report).
The separate financial statements of UNIQA Insurance Group AG, prepared in accordance with the Austrian Commercial Code, report an annual net profit for the 2015 financial year in the amount of €145,318,925.52 (2014: €130,571,950.61). The Management Board will propose to the Annual General Meeting on 30 May 2016 that this net profit be used for a dividend of 47 cents for each of the 309,000,000 dividend-entitled no-par value shares issued as at the reporting date and the remaining amount carried forward to a new account.
Vienna, 18 March 2016
Andreas Brandstetter Chairman of the Management Board
Wolfgang Kindl Member of the Management Board
Hannes Bogner
Member of the Management Board
Thomas Münkel Member of the Management Board
Kurt Svoboda
Member of the Management Board
| Assets In € thousand |
Notes | 31/12/2015 | 31/12/2014 Adjusted |
01/01/2014 Adjusted |
|---|---|---|---|---|
| Property, plant and equipment | 8 | 307,741 | 283,506 | 286,589 |
| Investment property | 9 | 1,392,590 | 1,504,483 | 1,652,485 |
| Intangible assets | 10 | 1,472,476 | 1,517,058 | 1,529,131 |
| Financial assets accounted for using the equity method | 11 | 514,165 | 528,681 | 545,053 |
| Investments | 13 | 21,392,476 | 20,629,354 | 19,038,091 |
| Unit-linked and index-linked life insurance investments | 13 | 5,226,748 | 5,386,650 | 5,332,611 |
| Reinsurers' share of technical provisions | 21 | 548,966 | 563,540 | 553,252 |
| Reinsurers' share of technical provisions for unit-linked and index-linked life insurance | 27 | 315,646 | 332,974 | 389,206 |
| Receivables, including insurance receivables | 14 | 911,477 | 1,094,544 | 979,746 |
| Income tax receivables | 15 | 87,270 | 53,917 | 69,881 |
| Deferred tax assets | 16 | 9,427 | 6,630 | 8,695 |
| Cash and cash equivalents | 17 | 890,083 | 975,764 | 616,976 |
| Assets in disposal groups held for sale | 12 | 9,289 | 161,053 | 0 |
| Total assets | 33,078,355 | 33,038,153 | 31,001,715 | |
| Equity and liabilities In € thousand |
Notes | 31/12/2015 | 31/12/2014 Adjusted |
01/01/2014 Adjusted |
| Total equity | 18 | |||
| Portion attributable to shareholders of UNIQA Insurance Group AG | ||||
| Subscribed capital and capital reserves | 1,789,920 | 1,789,920 | 1,789,920 | |
| Holding of own shares | – 10,857 | – 10,857 | – 10,857 | |
| Accumulated results | 4 | 1,373,651 | 1,303,179 | 984,065 |
| 3,152,713 | 3,082,242 | 2,763,127 | ||
| Non-controlling interests | 19 | 22,127 | 20,193 | 22,012 |
| 3,174,840 | 3,102,434 | 2,785,139 | ||
| Liabilities | ||||
| Subordinated liabilities | 20 | 1,095,745 | 600,000 | 600,000 |
| Technical provisions | 22, 23, 24, 26 | 21,100,072 | 21,220,068 | 19,900,215 |
| Technical provisions for unit-linked and index-linked life insurance | 27 | 5,175,437 | 5,306,000 | 5,251,035 |
| Financial liabilities | 28 | 33,580 | 49,181 | 26,836 |
| Other provisions | 4, 29 | 796,442 | 801,837 | 793,190 |
| Liabilities and other items classified as equity and liabilities | 4, 30 | 1,271,572 | 1,400,828 | 1,405,608 |
| Income tax liabilities | 31 | 95,970 | 43,272 | 40,712 |
| Deferred tax liabilities | 16 | 334,696 | 355,424 | 198,980 |
| Liabilities in disposal groups held for sale | 12 | 0 | 159,107 | 0 |
| 29,903,515 | 29,935,719 | 28,216,576 | ||
| Total equity and liabilities | 33,078,355 | 33,038,153 | 31,001,715 |
To make the presentation clearer, the items in the consolidated statement of financial position have been summarised for the reporting period (and that of the previous year) and then listed and explained in the notes to the consolidated financial statements according to their importance.
| In € thousand | Notes | 2015 | 2014 adjusted |
|---|---|---|---|
| Premiums earned (net) | 32 | ||
| a) Gross | 5,829,514 | 5,523,218 | |
| b) Reinsurers' share | – 196,007 | – 210,322 | |
| 5,633,507 | 5,312,896 | ||
| Technical interest income | 518,439 | 560,384 | |
| Other insurance income | |||
| a) Gross | 29,806 | 32,595 | |
| b) Reinsurers' share | 863 | 1,897 | |
| 30,669 | 34,492 | ||
| Insurance benefits | 33 | ||
| a) Gross | – 4,749,877 | – 4,517,700 | |
| b) Reinsurers' share | 142,310 | 134,038 | |
| –4,607,567 | –4,383,662 | ||
| Operating expenses | 4, 34 | ||
| a) Expenses for the acquisition of insurance | – 950,390 | – 938,593 | |
| b) Other operating expenses | – 373,144 | – 386,558 | |
| c) Reinsurance commission and share of profit from reinsurance | |||
| ceded | 24,839 | 26,044 | |
| –1,298,695 | –1,299,106 | ||
| Other technical expenses | 38 | ||
| a) Gross | – 50,207 | – 71,304 | |
| b) Reinsurers' share | – 26,282 | – 25,994 | |
| –76,489 | –97,298 | ||
| Technical result | 199,864 | 127,706 | |
| Net investment income | 4, 35 | 831,145 | 888,151 |
| of which profit from financial assets accounted for using the equity | |||
| method | 23,205 | 23,583 | |
| Other income | 36 | 42,525 | 62,428 |
| Reclassification of technical interest income | –518,439 | –560,384 | |
| Other operating expenses | 37 | –60,993 | –70,334 |
| Non-technical result | 294,238 | 319,860 | |
| Operating profit/(loss) | 494,102 | 447,566 | |
| Amortisation of goodwill and impairment losses | –21,018 | –32,292 | |
| Finance costs | –50,243 | –37,343 | |
| Earnings before taxes | 422,840 | 377,932 | |
| Income taxes | 38 | –88,254 | –85,055 |
| Profit/(loss) for the year | 334,586 | 292,877 | |
| of which attributable to shareholders of UNIQA Insurance Group AG | 331,087 | 289,863 | |
| of which attributable to non-controlling interests | 3,499 | 3,014 | |
| Earnings per share (in €)1) | 18 | 1.07 | 0.94 |
| Average number of shares in circulation | 308,180,350 | 308,180,350 |
1) Diluted earnings per share is equal to undiluted earnings per share. Calculated on the basis of the consolidated profit/(loss).
| In € thousand | 2015 | 2014 adjusted |
|---|---|---|
| Profit/(loss) for the year | 334,586 | 292,877 |
| Items not to be reclassified to profit or loss in subsequent periods | ||
| Actuarial gains and losses on defined benefit obligations | ||
| Gains (losses) recognised in equity | – 57,554 | – 46,042 |
| Gains (losses) recognised in equity – deferred taxes | 12,727 | 8,841 |
| Gains (losses) recognised in equity – deferred profit participation | 7,062 | 9,779 |
| –37,765 | –27,422 | |
| Items to be reclassified to profit or loss in the subsequent periods | ||
| Currency translation | ||
| Gains (losses) recognised in equity | – 16,429 | – 62,125 |
| Recognised in the consolidated income statement | – 1,155 | 0 |
| Valuation of financial instruments available for sale | ||
| Gains (losses) recognised in equity | – 64,569 | 1,318,234 |
| Gains (losses) recognised in equity – deferred taxes | 5,737 | – 127,346 |
| Gains (losses) recognised in equity – deferred profit participation | 22,057 | – 893,479 |
| Recognised in the consolidated income statement | – 87,860 | – 174,736 |
| Recognised in the consolidated income statement – deferred tax | 11,076 | 11,112 |
| Recognised in the consolidated income statement – deferred profit participation | 64,934 | 98,135 |
| Other income from financial assets accounted for using the equity method | ||
| Gains (losses) recognised in equity | – 19,067 | – 7,445 |
| –85,276 | 162,350 | |
| Other comprehensive income | –123,041 | 134,928 |
| Total comprehensive income | 211,545 | 427,805 |
| of which attributable to shareholders of UNIQA Insurance Group AG | 205,982 | 426,516 |
| of which attributable to non-controlling interests | 5,563 | 1,289 |
| In € thousand | Notes | 2015 | 2014 Adjusted |
|---|---|---|---|
| Profit/(loss) for the year | 334,586 | 292,877 | |
| Amortisation of goodwill and other intangible assets, impairment losses and other depreciation of property, plant and equipment |
55,952 | 87,763 | |
| Impairment losses/reversal of impairment losses on other investments | – 2,849 | – 13,490 | |
| Gain/loss on the disposal of investments | 4 | – 100,009 | – 41,208 |
| Change in deferred acquisition costs | 18,745 | – 4,451 | |
| Change in securities at fair value through profit or loss | 12,364 | 83,232 | |
| Change in direct insurance receivables | 70,596 | 26,756 | |
| Change in other receivables | 83,930 | – 123,711 | |
| Change in direct insurance liabilities | – 129,565 | – 7,230 | |
| Change in other liabilities | 57,699 | 1,423 | |
| Change in technical provisions | – 218,656 | 1,140,249 | |
| Change in defined benefit obligations | – 48,336 | – 2,509 | |
| Change in deferred tax assets and deferred tax liabilities | – 23,526 | 156,461 | |
| Change in other statement of financial position items | – 44,639 | 22,548 | |
| Other non-cash income and expenses as well as adjustments to profit | |||
| for the year | – 16,796 | – 60,185 | |
| Cash flows from operating activities | 49,497 | 1,558,523 | |
| Proceeds from disposal of intangible assets and property, plant and | |||
| equipment | 14,500 | 13,503 | |
| Payments for acquisition of intangible assets ad property, plant and equipment |
– 31,716 | – 74,725 | |
| Proceeds from disposal of consolidated companies | 2,136 | 34,303 | |
| Payments for acquisition of consolidated companies | – 18,058 | – 72,247 | |
| Proceeds from disposal and maturity of other investments | 4 | 4,666,786 | 8,301,173 |
| Payments for acquisition of other investments | – 5,293,419 | – 9,236,185 | |
| Change in unit-linked and index-linked life insurance investments | 159,902 | – 54,039 | |
| Net cash flow from investing activities | –499,868 | –1,088,217 | |
| Change in treasury shares held | – 129,621 | – 109,342 | |
| Dividend payments | 495,745 | 0 | |
| Proceeds from other financing activities | – 1,034 | – 1,843 | |
| Net cash flows from financing activities | 365,091 | –111,185 | |
| Change in cash and cash equivalents | –85,280 | 359,121 | |
| Change in cash and cash equivalents due to movements in exchange rates |
– 401 | – 334 | |
| Cash and cash equivalents at beginning of the year | 975,764 | 616,976 | |
| Cash and cash equivalents at end of period | 890,083 | 975,764 | |
| Income taxes paid | – 63,518 | – 18,997 | |
| Interest paid | – 64,842 | – 65,797 | |
| Interest received | 569,996 | 607,524 | |
| Dividends received | 62,185 | 63,764 |
| Accumulated | ||||||
|---|---|---|---|---|---|---|
| In € thousand | Notes | Subscribed capital and | Holding of own shares | Valuation of financial | Actuarial gains and | |
| capital reserves | instruments available for sale |
losses on defined benefit obligations |
||||
| As at 31 December 2013 | 1,789,920 | –10,857 | 177,133 | –116,081 | ||
| Restatement IAS 8 | 4 | 32,971 | ||||
| As at 1 January 2014 | 1,789,920 | –10,857 | 210,105 | –116,081 | ||
| Change in basis of consolidation | ||||||
| Dividends to shareholders | ||||||
| Total comprehensive income | 233,645 | –27,422 | ||||
| Profit/(loss) for the year | ||||||
| Other comprehensive income | 233,645 | – 27,422 | ||||
| As at 31 December 2014 | 1,789,920 | –10,857 | 443,750 | –143,503 | ||
| As at 1 January 2015 | 1,789,920 | –10,857 | 443,750 | –143,503 | ||
| Change in basis of consolidation | ||||||
| Dividends to shareholders | ||||||
| Total comprehensive income | –51,997 | –37,060 | ||||
| Profit/(loss) for the year | ||||||
| Other comprehensive income | – 51,997 | – 37,060 | ||||
| As at 31 December 2015 | 1,789,920 | –10,857 | 391,753 | –180,563 | ||
Results
| Differences from currency translation |
other accumulated results |
Portion attributable to shareholders of UNIQA Insurance Group AG |
Non-controlling interests |
Total equity |
|---|---|---|---|---|
| –91,140 | 1,014,152 | 2,763,127 | 22,012 | 2,785,139 |
| – 32,971 | 0 | 0 | ||
| –91,140 | 981,181 | 2,763,127 | 22,012 | 2,785,139 |
| 462 | 462 | – 1,629 | – 1,167 | |
| – 107,863 | – 107,863 | – 1,479 | – 109,342 | |
| –64,364 | 284,657 | 426,516 | 1,289 | 427,805 |
| 289,863 | 289,863 | 3,014 | 292,877 | |
| – 64,364 | – 5,206 | 136,653 | – 1,725 | 134,928 |
| –155,504 | 1,158,437 | 3,082,242 | 20,193 | 3,102,434 |
| –155,504 | 1,158,437 | 3,082,242 | 20,193 | 3,102,434 |
| – 6,075 | – 6,075 | – 3,313 | – 9,388 | |
| – 129,436 | – 129,436 | – 315 | – 129,751 | |
| –16,980 | 312,020 | 205,982 | 5,563 | 211,545 |
| 331,087 | 331,087 | 3,499 | 334,586 | |
| – 16,980 | – 19,067 | – 125,104 | 2,063 | – 123,041 |
| –172,485 | 1,334,945 | 3,152,713 | 22,127 | 3,174,840 |
UNIQA Insurance Group AG (UNIQA) is a company domiciled in Austria. The address of the company's registered office is Untere Donaustraße 21, 1029 Vienna. The Group primarily conducts business with property, casualty, health and life insurance.
UNIQA Insurance Group AG is registered in the company registry of the Commercial Court of Vienna under FN 92933t. The shares of UNIQA Insurance Group AG are listed on the Vienna Stock Exchange.
Unless otherwise stated, these consolidated financial statements are prepared in thousand euros; rounding differences may occur through the use of automated calculation tools when totalling rounded amounts and percentages. The functional currency at UNIQA is the euro.
UNIQA's reporting date is 31 December.
The consolidated financial statements were prepared in line with the International Financial Reporting Standards (IFRSs) as well as the provisions of the International Financial Reporting Interpretations Committee (IFRIC) as adopted by the European Union (EU) as at the reporting date. The additional requirements of section 245a(1) of the Austrian Commercial Code (UGB) were also met.
The following table provides an overview of the valuation principles for the individual balance sheet items in the assets and liabilities:
| Balance sheet item | Standard of valuation |
|---|---|
| Assets | |
| Property, plant and equipment | at lower of amortised cost or recoverable amount |
| Investment property | at lower of amortised cost or recoverable amount |
| Intangible assets | |
| -with determinable useful life | at lower of amortised cost or recoverable amount |
| -with indeterminable useful life | at lower of acquisition cost or recoverable amount |
| Financial assets accounted for using the equity method | at lower of amortised pro-rata value of the equity or recoverable amount |
| Investments | |
| -Financial assets held for sale | fair value or acquisition cost |
| -Loans and receivables | armortised cost |
| -Derivative financial instruments | fair value |
| Investments of unit-linked and index-linked life insurance | fair value |
| Reinsurers' share of technical provisions | as per the valuation of technical provisions |
| Reinsurers' share of technical provisions of unit-linked and index-linked life insurance |
as per the valuation of technical provisions |
| Receivables, including insurance receivables | armortised cost |
| Income tax receivables | at the amount of any obligations to the tax authorities, based on the tax rates applicable on the reporting date or in the near future |
| Deferred tax assets | undiscounted valuation applying the tax rates that are expected for the period in which an asset is realised or a liability met |
| Cash and cash equivalents | armortised cost |
| Assets in disposal groups held for sale | lower of carrying amount and fair value less cost to sale |
| Balance sheet item | Standard of valuation |
|---|---|
| Liabilities | |
| Subordinated liabilities | amortised cost |
| Technical provisions | property insurance: provisions for losses and unsettled claims (undiscounted value of expected future payment obligations) |
| life and health insurance: insurance provision in accordance with actuarial calculation principles (discounted value of expected future benefits less premiums) |
|
| Technical provisions for unit-linked and index-linked life insurance insurance provision based on the change in value of the | contributions assessed |
| Financial liabilities | |
| -Liabilities from loans | amortised cost |
| -Derivative financial instruments | fair value |
| Other provisions | |
| -from defined benefit obligations | actuarial valuation applying the projected benefit obligation method |
| -other | present value of future settlement value |
| Liabilities and other items classified as equity and liabilities | amortised cost |
| Income tax liabilities | at the amount of any obligations towards the tax authorities, based on the tax rates applicable on the reporting date or in the near future |
| Deferred tax liabilities | undiscounted valuation applying the tax rates that are expected for the period in which an asset is realised or a liability met |
UNIQA has applied IFRS 4 (published in 2004) for insurance contracts since 1 January 2005. This standard demands that the accounting policies be largely unaltered with regard to the actuarial items.
The IFRSs contain no specific regulations that comprehensively govern the recognition and measurement of insurance and reinsurance policies and investment contracts with a discretionary participation feature. Therefore, in accordance with IAS 8, the provisions of US Generally Accepted Accounting Principles (US GAAP) in the version applicable on 1 January 2005 were applied to all cases for which IFRS 4 contains no specific regulations. For balancing the accounts and evaluation of the insurance-specific entries of life insurance with profit sharing, FAS 120 was observed; FAS 60 was applied for specific items in health, property and casualty insurance and FAS 113 for reinsurance. Unit-linked life insurance, where the policyholder bears the entire investment risk, was accounted for in accordance with FAS 97.
Based on the regulations, technical items must be covered by suitable assets (cover funds). As is standard in the insurance industry, amounts dedicated to the cover funds are subject to a limitation as regards availability in the group.
If the Group has obtained control, it accounts for business combinations in line with the acquisition method. The consideration transferred for the acquisition and the identifiable net assets acquired are measured at fair value. Any generated goodwill is tested annually for impairment. Any profit from an acquisition at a price below the fair value of the net assets is recognised directly in profit/(loss) for the year. Transaction costs are recognised as expenses immediately.
The consideration transferred does not include any amounts associated with the fulfilment of pre-existing relationships. Such amounts are generally recognised in profit/(loss) for the year.
Any contingent obligation to pay consideration is measured at fair value as of the acquisition date. If the contingent consideration is classified as equity, it is not revalued, and a settlement is accounted for within equity. Otherwise, later changes in the fair value of the contingent consideration are recognised in profit/(loss) for the year.
Non-controlling interests are measured as at the acquisition date with their proportionate share in the identifiable net assets of the acquired entity.
Changes in the Group's share in a subsidiary that do not result in a loss of control are recognised directly as equity transactions with non-controlling interests.
Subsidiaries are entities controlled by the Group. The Group controls a company if
The financial statements of subsidiaries are included in the consolidated financial statements from the date control begins until the date control ends.
If the Group loses control of a subsidiary, it derecognises the subsidiary's assets and liabilities and all associated non-controlling interests and other equity components. Any resulting profit or loss is recognised in profit/(loss) for the year. Any retained interest in the former subsidiary is measured at fair value as of the date of the loss of control.
Associates are all the entities over which the Group has significant influence but does not exercise control or joint control over their financial and operating policies. This is generally the case as soon as there is a voting share of between 20 and 50 per cent or a comparable significant influence is guaranteed legally or in practice via other contractual regulations.
Investments in associates are equity-accounted. They are initially recognised at acquisition cost, which also includes transaction costs. After the first-time recognition, the consolidated financial statements include the Group's share in profit/(loss) for the year and in changes in other comprehensive income until the date the significant influence ends.
At each reporting date, the Group reviews whether there are any indications that the investments in associates are impaired. If this is the case, then the impairment loss is recorded as the difference between the participation carrying amount of the associate and the corresponding recoverable amount and recognised separately in profit/(loss) for the year.
Intragroup balances and transactions and all unrealised income and expenses from intragroup transactions are eliminated when consolidated financial statements are prepared.
A discontinued operation is a part of the Group that has either been sold or has been categorised as held for sale, and which
The entity is classified as a discontinued operation when the aforementioned criteria are fulfilled.
If an operation is classified as a discontinued operation, the consolidated statement of comprehensive income for the comparative year is adjusted so that it were as if the operation had been discontinued from the start of the comparative year.
Non-current assets or disposal groups that include assets and liabilities are classified as held for sale if it is highly probable that they will be realised through sale rather than continued use.
In general, these assets or disposal groups are recognised at the lower of their carrying amounts or fair values less costs to sell. Any impairment loss of a disposal group is firstly attributed to goodwill and then to the remaining assets and liabilities on a proportional basis – with the exception that no loss is attributed to financial assets, deferred tax assets, assets in connection with employee benefits or investment property that continues to be measured based on the Group's other accounting policies. Impairment losses on the first-time classification as held for sale and any subsequent impairment losses are recognised in profit or loss.
Intangible assets held for sale, and property, plant and equipment are no longer amortised or depreciated and any investments recognised using the equity method are no longer equityaccounted.
In addition to the annual financial statements of UNIQA Insurance Group AG, the consolidated financial statements include the financial statements of all subsidiaries in Austria and abroad. The basis of consolidation comprised– including UNIQA Insurance Group AG –56 Austrian (2014: 52) and 67 (2014: 70) foreign subsidiaries. The associates are eight domestic (2014: 8) and one foreign company (2014: 1) that were included in the consolidated financial statements using the equity method accounting.
On page 161 there is a list of the fully consolidated subsidiaries and associates.
Shares in subsidiaries that are not consolidated (for lack of materiality), associates or joint ventures not accounted for using the equity method are classified as financial assets available for sale in accordance with IAS 39 and recognised at fair value in other comprehensive income. Those equity investments for which the fair value cannot be reliably ascertained are recognised at cost less any impairments.
In application of IFRS 10, fully-controlled investment funds are included in the consolidation, insofar as their fund volumes were not of minor importance when viewed separately and as a whole.
There were no business combinations in accordance with IFRS 3 in the reporting year. Any acquisitions of shares in other companies represented an acquisition of a group of assets because the prerequisites for a business operation were not met. The companies acquired were mainly financial and strategic shareholdings.
The following companies were included in the consolidated financial statements for the first time in the reporting year:
| Date of initial inclusion |
Share in equity as at 31.12.2015 Figures in per cent |
|
|---|---|---|
| Diakonissen & Wehrle Privatklinik GmbH | 31.3.2015 | 60.0 |
| PremiQaMed Beteiligungs GmbH | 31.3.2015 | 100.0 |
| UNIQA Immobilien-Projekterrichtungs GmbH | 30.6.2015 | 100.0 |
| sTech d.o.o | 31.12.2015 | 100.0 |
| UNIQA Leasing GmbH | 31.12.2015 | 25.0 |
The sale of UNIQA Lebensversicherung AG in Vaduz, as decided in the fourth quarter of 2014, was completed in the first quarter of 2015. The following four companies also exited the scope of consolidation as part of the portfolio optimisation: UNIQA Real Estate Ukraine (Kiev), Suoreva Ltd. (Limassol), Poliklinika Medico (Rijeka) and UNIQA Internationale Anteilsverwaltung GmbH (Vienna). As part of the UNIQA 2.0 strategic programme focussing on the core insurance business in the key markets of Austria and Central and Eastern Europe, UNIQA also sold its 29 per cent stake in Medial Beteiligungs-Gesellschaft m.b.H. (Vienna) to NOVOMATIC AG (Gumpoldskirchen) in a transfer agreement dated 28 July 2015. Medial Beteiligungs-Gesellschaft m.b.H. itself has a stake of around 38 per cent in Casinos Austria Aktiengesellschaft (Vienna), which corresponds to a stake for UNIQA in Casinos Austria Aktiengesellschaft of around 11 per cent. The sale to NOVOMATIC AG is subject to a condition precedent. The conditions precedent are essentially mandatory approvals still required under merger law and public law approvals. The closing is expected to occur in 2016.
The items included in the financial statement for each operating subsidiary are valued based on the currency that corresponds with the currency of the primary economic environment in which the subsidiary operates (functional currency). The consolidated financial statements are prepared in euros which is UNIQA's reporting currency.
Transactions in foreign currencies are translated into the functional currency of the Group entity at the exchange rate on the date of the transaction or, in the case of revaluations, at the time of the valuation.
Monetary assets and liabilities denominated in a foreign currency on the reporting date are translated into the functional currency at the closing rate. Non-monetary assets and liabilities measured at fair value in a foreign currency are translated at the rate valid on the date the fair value is calculated. Currency translation differences are generally recognised in profit/(loss) for the year. Non-monetary items recognised at historical acquisition cost or the cost of selfconstruction in a foreign currency are not translated.
In deviation from this policy, there is one case where currency translation differences are recognised in other comprehensive income:
• available-for-sale equity instruments (except in the case of impairment, for which currency translation differences are reclassified from other comprehensive income to profit/(loss) for the year).
Assets and liabilities from foreign operations, including the goodwill and fair value adjustments that result from the acquisition, are translated into euros at the closing rate on the reporting date. Income and expenses from foreign operations are translated at the monthly closing rates.
Currency translation differences are reported in other comprehensive income and recognised in equity as a part of the accumulated results in the item "Differences from currency translation" if the foreign exchange difference is not attributable to non-controlling interests.
When the disposal of a foreign operation results in loss of control, joint control or significant influence, the corresponding amount recognised in the item "Differences from currency translation" under the accumulated results up to this date is reclassified to profit/(loss) for the year as part of the gain or loss on disposal. In the case of only partial disposal without loss of control over a subsidiary that includes a foreign operation, the corresponding portion of the cumulative exchange difference is attributed to the non-controlling interests. If the Group partially disposes of an associate or jointly controlled company that includes a foreign operation, but retains significant influence or joint control, the corresponding portion of the cumulative currency translation difference is reclassified to profit/(loss) for the year.
If the settlement of monetary items in the form of receivables or liabilities from or to a foreign operation is neither planned nor probable in the foreseeable future, the resulting foreign currency gains and losses are considered part of the net investment in the foreign operation. The foreign currency gains and losses are then reported in other comprehensive income and recognised in the "Differences from currency translation" in equity.
Major exchange rates:
| EUR closing rates 31.12.2015 |
EUR closing rates 31.12.2014 |
EUR average rates 2015 |
EUR average rates 2014 |
|
|---|---|---|---|---|
| Swiss franc CHF | 1.0835 | 1.2024 | 1.0752 | 1.2139 |
| Czech koruna CZK | 27.0230 | 27.7350 | 27.3053 | 27.5418 |
| Hungarian forint HUF | 315.9800 | 315.5400 | 310.0446 | 308.9869 |
| Croatian kuna HRK | 7.6380 | 7.6580 | 7.6211 | 7.6342 |
| Polish złoty PLN | 4.2639 | 4.2732 | 4.1909 | 4.1909 |
| Bosnia and Herzegovina convertible mark BAM | 1.9558 | 1.9558 | 1.9558 | 1.9558 |
| Romanian leu RON | 4.5240 | 4.4828 | 4.4440 | 4.4410 |
| Bulgarian lev BGN | 1.9558 | 1.9558 | 1.9558 | 1.9558 |
| Ukrainian hryvnia UAH | 26.1223 | 19.1492 | 24.6297 | 15.7763 |
| Serbian dinar RSD | 121.5835 | 121.3495 | 120.7530 | 116.9427 |
| Russian rouble RUB | 80.6736 | 72.3370 | 69.0427 | 51.3856 |
| Albanian lek ALL | 136.9100 | 139.8700 | 139.5977 | 139.9069 |
| Macedonian denar MKD | 61.3868 | 61.4218 | 61.5080 | 61.5244 |
| U.S. dollars (USD) | 1.0887 | 1.2141 | 1.1130 | 1.3232 |
The (gross) premiums written include those amounts that have been called due by the insurer either once or on an ongoing basis in the financial year for the purposes of providing the insurance coverage. The premiums written are increased by the charges added during the year (in the event of payment in instalments) and the ancillary charges in line with the tariffs. In the case of unit-linked and index-linked life insurance, only the premiums decreased by the savings portion are stated in the item "Premiums written".
Insurance contracts, i.e. contracts through which significant insurance risk is assumed, and investment contracts with a discretionary participation feature are treated in accordance with IFRS 4, i.e. under application of US GAAP. Investment contracts, i.e. contracts that do not transfer a significant insurance risk and that do not include a discretionary participation feature, fall under the scope of IAS 39 (Financial Instruments).
Assumed reinsurance (indirect business) is recognised as an insurance contract in accordance with IFRS 4.
Ceded reinsurance is also subject to the application of IFRS 4 and is presented in a separate item under assets in accordance with IFRS 4. The profit and loss items (premiums and payments) are deducted openly from the corresponding items in the gross account, while commission income is reported separately as its own item.
Based on US GAAP, deferred acquisition costs are accounted for in accordance with IFRS 4. In the case of property and casualty insurance contracts, costs directly attributable to the acquisition are deferred and distributed over the expected contract term or according to the unearned premiums. In life insurance, the deferred acquisition costs are amortised in line with the pattern of expected gross profits or margins.
For short-term insurance contracts, such as most property and casualty insurance policies, the premiums relating to future years are reported as unearned premiums in line with the applicable regulations of US GAAP. The amount of these unearned premiums corresponds to the insurance cover granted proportionally in future periods.
Premiums levied upon entering into certain long-term contracts (e.g. upfront fees) are recognised as unearned premiums. In line with the applicable regulations of US GAAP, these fees are recorded in the same manner as the amortisation of deferred acquisition costs.
These 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 insurance provision.
Insurance provisions are established in the life and health insurance lines. Their carrying amount is determined based on 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. Similarly, insurance provisions are established in the casualty lines that also cover life-long obligations (accident pensions). The insurance provision of the life insurer is calculated by taking into account prudent and contractually agreed calculation principles.
For policies that are mainly of investment character (e.g. unit-linked life insurance), the provisions of FAS 97 are used to measure the insurance provision. The insurance 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 in which the policyholder carries the sole risk of the value of the investment rising or falling, the insurance provision is listed as a separate liability entry under "Technical provisions for unit-linked and index-linked life insurance".
The insurance provisions for health insurance are determined based on calculation principles that correspond to the "best estimate", taking into account safety margins. Once calculation principles have been determined, they have to be applied to the corresponding partial portfolio for the whole duration (locked-in principle).
The provision for outstanding claims in the property and casualty insurance lines contains the actual and the expected amounts of future financial obligations, including the direct claims settlement expenses appertaining thereto, based on accepted statistical methods. This applies for claims already reported as well as for claims incurred but not yet reported (IBNR). In insurance lines in which past experience does not allow the application of statistical methods, individual loss provisions are set aside.
Life insurance is calculated on an individual loss basis with the exception of the provision for unreported claims.
As for health insurance, the provisions for outstanding claims are estimated on the basis of past experience, taking the known arrears in claim payments into consideration.
The provision for the assumed reinsurance business generally complies with the figures of the cedents.
The provision for premium refunds includes the amounts for profit-related and non-profit related profit sharing to which the policyholders are entitled on the basis of statutory or contractual provisions.
In life insurance policies with a discretionary participation feature, differences between local measurement and measurement according to IFRS are presented with deferred profit participation taken into account, whereby this is also reported in profit/(loss) for the year or in other comprehensive income depending on the recognition of the change in the underlying measurement differences. The amount of the provision for deferred profit participation generally comes to 85 per cent of the valuation differentials before tax.
This item basically contains the provision for contingent losses for acquired reinsurance portfolios as well as a provision for expected cancellations and premium defaults.
The Liability Adequacy Test evaluates whether the established IFRS reserves are sufficient. For the life insurance portfolio, a so-called best estimate reserve is compared with the IFRS reserve less the deferred acquisition costs. This calculation is done separately each quarter for mixed insurance policies, pension policies, risk insurance policies, and unit-linked and index-linked policies.
Because UNIQA uses the best estimate approach for calculating the loss reserves in non-life, only the unearned premiums are tested. Only segments that show a surplus of less than 10 per cent at the time of the annual calculation are tested every quarter. In non-life insurance, the segments tested are the general motor vehicle liability lines and other.
This item relates to the insurance provisions and the remaining technical provisions for obligations from life insurance policies where the 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 unit-linked and index-linked life insurance investments written at current market values.
Obligations from short-term employee benefits are recognised as expenses through profit or loss as soon as the associated work is performed. A liability must be recognised for the expected amount to be paid if the Group currently has a legal or de facto obligation to pay this amount on the basis of work performed by the employee and the obligation can be reliably estimated.
Obligations for contributions to defined contribution plans are recognised as expenses through profit or loss as soon as the associated work is performed. Prepaid contributions are recognised as assets if an entitlement to refund or reduction of future payments arises. The defined contribution plan is financed completely by UNIQA.
There are individual contractual pension obligations, individual contractual bridge payments, and pension allowances in accordance with association recommendations. Individuals who have an individual contractual obligation can generally claim a pension when they reach the age of 65, but not before the age of 62, and in the event of an inability to work. The amount of the pension generally depends on the number of their years of service and their last salary before leaving their active employment. In the event of death, the spouse of the individual entitled to the claim receives a pension at 60 per cent, 50 per cent or 40 per cent depending on the policy. The pensions are suspended for any period in which a termination benefit is paid and their value is generally guaranteed.
Board members, special policyholders and active employees in Austria who meet the criteria for inclusion according to the association recommendations are subject to a basic defined contribution pension fund scheme. The beneficiaries are also entitled to a final pension fund contribution which guarantees them a fixed cash value for retirement when they begin their retirement. According to the provisions of IAS 19, this obligation in the contribution phase is to be classified as a defined benefit. The works council agreement states the extent to which a final pension fund contribution is provided to the beneficiary's individual assurance cover account in the event of a transfer to the old-age pension or of an incapacity to work or the death as a participant. UNIQA has no obligations during the benefit phase.
In the case of employees of Austrian companies whose employment began prior to 31 December 2002 and lasted three years without interruption, the employee is entitled to termination benefits when the employment is terminated, unless the employee quits, leaves without an important reason or is guilty of an act resulting in early dismissal. The amount is double the salary owed to the employee in the last month of the employee relationship and increases after five years of employment to three times, after ten years of employment to four times, after fifteen years of employment to six times, after twenty years of employment to nine times and after twenty-five years of employment to twelve times the monthly salary. Employees subject to the collective agreement for insurance undertakings – back office and whose employment began before 1 January 1997 also receive after five years of employment three times, after ten years of employment six times the monthly salary.
If the employment ends due to the death of the employee, the termination benefit only amounts to half of the above-mentioned amounts and is only owed to legal beneficiaries who were legal dependents of the deceased.
For employees of Austrian companies who joined the Group after 31 December 2002, the statutory provisions apply. These people are not included in the calculation of the termination benefits.
The Group's net liability with regard to defined benefit plans is calculated separately for each plan by estimating the future benefits that the rightful claimants have already earned in the current and in earlier periods. This amount is discounted and the fair value of any plan assets is deducted.
The calculation of defined benefit obligations is carried out annually by a qualified actuary using the projected unit credit method. If the calculation results in a potential asset for the Group, the asset recognised is limited to the present value of any economic benefit available in the form of future refunds from the plan or reductions in future contributions to the plan. Any valid minimum funding requirements are included in the calculation of the present value of the economic benefit.
Revaluations of the net liability from defined benefit plans are recognised directly in other comprehensive income. The revaluation includes the actuarial gains and losses, the income from plan assets (not including projected interest income) and the effect of any asset ceiling. The Group calculates net interest expenses (income) on the net liabilities (assets) from defined benefit plans for the reporting period by applying the discount rate used to measure the defined benefit obligation at the start of the annual reporting period. This discount rate is applied to net liabilities (assets) from defined benefit plans on this date. Any changes in the net liabilities (assets) from defined benefit plans resulting from contribution and benefit payments over the course of the reporting period are taken into account. Net interest expenses and other expenses for defined benefit plans are recognised through profit or loss in the profit/(loss) for the year.
If a plan's defined benefits are changed or a plan is curtailed, the resulting change in the benefit relating to past service or the gain or loss on the curtailment is recognised directly in profit/(loss) for the year. The Group recognises gains and losses from the settlement of a defined benefit plan at the date of the settlement. The pensions are financed through provisions that are based on individual policies or on the association recommendations. The final pension contribution is set aside during the contribution phase and transferred to the pension fund at the time of retirement. The financing is specified in the business plan, in the works council agreement and in the pension fund contract.
The Group's net obligation with regard to long-term employee benefits comprises the future benefits that the employees have earned in return for work performed in the current and in earlier periods. These obligations include provisions for length of service awards that are paid to employees after reaching a certain length of service. These benefits are discounted to determine their present value. Revaluations are recognised in profit/(loss) for the year in which they arise.
Post-employment benefits are recognised as expenses on the earlier of the following dates: when the Group can no longer withdraw the offer of such benefits or when the Group recognises costs for restructuring. If benefits are not expected to be settled within twelve months of the end of the reporting period, they are discounted.
The fair value on the date share-based payment awards are granted to employees is recognised as expense over the period in which the employees become unconditionally entitled to the awards. The amount recognised as expense is adjusted in order to reflect the number of awards expected to fulfil the corresponding service conditions and non-market performance conditions, so that the expense recognised is ultimately based on the number of awards that fulfil the corresponding service conditions and non-market performance conditions at the end of the vesting period. Changes in valuation assumptions likewise result in an adjustment of the recognised provision amounts affecting income.
Tax expense includes actual and deferred tax. Actual tax and deferred tax is recognised in profit/(loss) for the year, with the exception of any amount associated with a business combination or with an item recognised directly in equity or other comprehensive income.
Actual tax is the expected tax liability or tax receivable on taxable income for the financial year or the tax loss on the basis of interest rates that apply on the reporting date or will soon apply, plus all adjustments of the tax liability relating to previous years. Actual tax liabilities include all tax liabilities resulting from the determination of dividends.
UNIQA exercises the option of forming a Group of companies for tax purposes provided by lawmakers with the Tax Reform Act 2005; there are three taxable groups of companies with the parent groups UNIQA Insurance Group AG, PremiQaMed Holding GmbH and R-FMZ Immobilienholding GmbH.
The group members are charged the corporation tax amounts attributable to them by the parent group by distributing their tax burden in the tax group. Losses from foreign group members are also included within the scope of taxable profits. The tax realisation for these losses is accompanied by a future tax obligation to pay income taxes at an unspecified point in time. The corresponding liability from ongoing tax liabilities is presented in undiscounted form.
Deferred taxes are recognised with regard to temporary differences between the carrying amounts of assets and liabilities in the IFRS consolidated financial statements and the amounts used for tax purposes. Deferred taxes are not recognised for:
• Temporary differences on the first-time recognition of assets or liabilities in the event of a transaction that is not a business combination and that affects neither net earnings before taxes nor taxable income,
A deferred tax asset is recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profit will be available for which they can be used. Deferred tax assets are tested for impairment on every reporting date and reduced to the extent that it is no longer probable that the associated tax advantage will be realised.
Deferred taxes are measured on the basis of the tax rates expected to be applied to temporary differences as soon as they reverse, and using tax rates that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred taxes reflects the tax consequences arising from the Group's expectation of the manner in which it will recover the carrying amounts of its assets or settle its liabilities on the reporting date. For investment property measured at fair value, the presumption that the carrying amount will be recovered through sale was not rebutted.
Deferred tax assets and debts are netted out if the conditions for a legal claim to offsetting are met and the deferred tax claims and liabilities relate to income tax that is levied by the same tax authority, either for the same taxable item or different taxable items, aimed at achieving a settlement on a net basis.
Property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
If parts of an item of property, plant and equipment have different useful lives, they are recognised as separate items (main components) of property, plant and equipment.
Any gain or loss from the disposal of an item of property, plant and equipment is recognised in profit/(loss) for the year.
If the use of a property changes and an owner-occupied property becomes an investment property, the property is reclassified as investment land and buildings with the carrying amount as of the date of the change.
Subsequent costs are only capitalised when it is probable that the future economic benefit associated with the expense will flow to the Group. Ongoing repairs and maintenance are recognised as expenses immediately.
The depreciation is calculated in order to write down the costs of property, plant and equipment less their estimated residual values on a straight-line basis over the period of their estimated useful lives. The depreciation is recognised in the profit/(loss) for the year. Land is not depreciated.
The estimated useful lives of significant property, plant and equipment for the current year and comparative years are as follows:
Depreciation methods, useful lives and residual values are reviewed on every reporting date and adjusted if necessary. The depreciation charges for property, plant and equipment are recognised in profit/(loss) for the year on the basis of allocated operating expenses under the items insurance benefits, operating expenses and net investment income.
Deferred acquisition costs for insurance activities that are directly related to new business and/or to extensions of existing policies and that vary in line with that business are capitalised and amortised over the term of the insurance contracts they relate to. If they are attributable to property and casualty insurance, they are amortised over the probable contractual term, with a maximum of seven years. In life insurance, the acquisition costs are amortised over the duration of the contract in the same proportion as the actuarial profit margin of each individual year is realised in comparison to the total margin to be expected from the contracts. For long-term health insurance contracts, the amortisation of acquisition costs is measured in line with the proportionate share of earned premiums in the present value of expected future premium income. The changes in deferred acquisition costs are shown as operating expenses.
The goodwill arising in the context of business combinations is measured at cost less accumulated impairment losses. Goodwill arises upon acquisition of subsidiaries and represents the surplus of the consideration transferred for acquisition of the company above the fair value of the Group's share in the identifiable assets acquired, the liabilities assumed, contingent liabilities and all non-controlling shares in the acquired company at the time of the acquisition.
Values of life, property and casualty insurance policies relate to expected future margins from purchased operations and are recognised at the fair value at the acquisition date.
With regard to life insurance business acquired, the amortisation of the current value follows the progression of the estimated gross margins.
Other intangible assets include both purchased and internally-developed software, which is depreciated on a straight-line basis over its useful economic life of 2 to 5 years.
In accordance with the provisions of IAS 38, costs that are incurred at the research stage for inhouse software are recognised through profit or loss in profit/(loss) for the year in which they were incurred. Costs that are incurred at the development stage are deferred provided that it is foreseeable that the software will be completed, there is the intention and ability for future internal use and a future economic benefit arises from this.
The useful lives of both the in-house software and acquired intangible assets amount to between 2 and 5 years. The amortisation and impairment losses of the other intangible assets were recognised in profit/(loss) for the year on the basis of allocated operating expenses under the items insurance benefits, operating expenses and net investment income.
Land and buildings, including buildings on third-party land, held as long-term investments to generate rental income and/or for the purpose of capital appreciation are measured at cost when they are acquired. Subsequent measurement follows the cost model. The useful lives of the investment property are between 10 and 80 years.
The Group classifies non-derivative financial assets to the following categories: Financial assets measured at fair value through profit or loss, loans and receivables, and financial assets available for sale.
The Group categorises non-derivative financial liabilities as other financial liabilities.
With the exception of mortgages and other loans, 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 that are not listed on an active market, the fair value is determined through internal valuation models or on the basis of estimates of what amounts could be achieved under current market conditions in the event of proper realisation.
Derivatives are used within the limits permitted under the Austrian Insurance Supervisory Act for hedging investments and for increasing earnings. All fluctuations in value are recognised in profit/(loss) for the year. Financial assets from derivative financial instruments are recognised under investments. Financial liabilities from derivative financial instruments are recognised under financial liabilities.
Financial assets are measured at fair value through profit or loss if the asset is either held for trading or is designated at fair value and recognised in profit and loss (fair value option).
The fair value option is applied to structured products which are not split between the underlying transaction and the derivative, but are accounted for as a unit. All the structured products can therefore be found in the item "financial instruments at fair value through profit or loss" on the statement of financial position. Unrealised gains and losses are recognised in profit/(loss) for the year. 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 recognised under the items for securities at fair value through profit or loss.
Financial assets "at fair value through profit or loss" are carried at fair value. Each profit or loss resulting from the measurement is recognised through profit or loss.
These investments concern life insurance contracts 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 contracts. The investments in question are collected in asset pools, recognised at their fair value and kept separately from the remaining investments of the companies. The policyholders are entitled to all income from these investments. The amount of the recognised investments strictly corresponds to the insurance provisions (before reinsurance business ceded) for life insurance, to the extent that the investment risk is borne by the policyholders. The unrealised gains and losses from fluctuations in the fair values of the investment pools are thus offset by the appropriate changes in these provisions.
The Group recognises loans, receivables and issued debt securities from the date on which they arise. All other financial assets and liabilities are recognised for the first time on the settlement date. The Group derecognises a financial asset when the contractual rights to cash flows from an asset expire or it transfers the rights to receive the cash flows in a transaction in which all major risks and opportunities connected with the ownership of the financial asset are transferred. Derecognition also occurs when the Group neither transfers nor retains all major risks and opportunities connected with ownership and does not retain control over the transferred asset. Every share in such transferred financial assets that arise or remain in the Group is recognised as a separate asset or separate liability.
Financial liabilities are derecognised when the contractual obligation is fulfilled, extinguished or expired.
Financial assets and liabilities are set off and recognised in net amounts in the statement of financial position if the Group has a legal right to set off the reported amounts against each other and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
When first recognised, such assets are measured at their fair value plus directly attributable transaction costs. Subsequently, they are measured at amortised cost using the effective interest method.
In the consolidated cash flow statement, cash and cash equivalents includes bank balances available upon demand, which are a central component of the management of the Group's payment transactions.
Available-for-sale financial assets are initially measured at fair value plus directly attributable transaction costs. Subsequently, available-for-sale financial assets are measured at fair value and corresponding value changes are, with the exception of impairment and foreign exchange differences in the case of available-for-sale debt securities, recognised in the accumulated results in equity. When an asset is derecognised, the accumulated other comprehensive income is reclassified to profit/(loss) for the year.
When first recognised, non-derivative financial liabilities are measured at fair value less directly attributable transaction costs. Subsequently, these financial liabilities are measured at amortised cost using the effective interest method.
Financial assets not designated as at fair value through profit or loss, including interests in entities accounted for using the equity method, are tested on every reporting date to determine whether there is any objective indication of impairment.
Objective indications that financial assets are impaired are:
In the case of an investment in an equity instrument, a significant or prolonged decline in the fair value below its cost is also objective evidence of impairment. The Group considers a decline of 20 per cent as significant and a period of nine months as prolonged.
The Group considers indications of impairment for these financial assets both at the level of the individual assets and collectively. All assets significant in themselves are tested for specific impairment. Those that prove not to be specifically impaired are then collectively tested for impairment that has occurred but not yet been identified. Assets not significant in themselves are collectively tested for impairment by pooling assets with similar risk characteristics in one group.
When testing for collective impairment, the Group uses historical information on the timing of payments and the value of the incurred losses, adjusted by a judgement on the part of the Management Board on whether the current economic conditions and credit conditions are such that the actual losses are probably higher or lower than the losses to be expected on the basis of historical trends.
Impairment is calculated as the difference between the carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate of the asset. Losses are recognised in profit/(loss) for the year. If the Group has no realistic hope of recovering the asset, the amounts are written off. If an event occurring after the recognition of impairment reduces the level of impairment, the reduction is recognised in profit/(loss) for the year.
Impairment of available-for-sale financial assets is recognised in profit/(loss) for the year by reclassifying the losses accumulated in equity. The accumulated loss that is reclassified from equity to profit/(loss) for the year is the difference between the acquisition cost, net of any redemptions, and current fair value, less any impairment loss previously recognised in profit or loss. If the fair value of an impaired, available-for-sale debt instrument increases in a subsequent period and the increase can be objectively related to an event occurring after the impairment was recognised, the impairment is reversed, with the amount of the reversal recognised in profit or loss. In other cases, impairment reversal is recognised in other comprehensive income.
An impairment loss relating to an associate accounted for using the equity method is measured by comparing the recoverable amount of the shares with their carrying amount. The impairment loss is recognised in profit/(loss) for the year. An impairment loss is reversed in the event of an advantageous change in the estimates used to determine the recoverable amount.
The carrying amounts of the Group's non-financial assets – excluding deferred tax assets – are tested on every reporting date to determine whether there is an indication of impairment. If this is the case, the recoverable amount of the asset is estimated. The goodwill and intangible assets with indefinite useful lives are tested for impairment annually.
In order to test for impairment, assets are grouped into the smallest groups of assets whose continued use generates cash flows that are to the greatest possible extent independent of cash flows from other assets or cash-generating units (CGUs). Goodwill acquired in a business combination is allocated to the CGUs or groups of CGUs expected to benefit from the synergies of the combination.
The recoverable amount of an asset or a CGU is the higher of its value in use or its fair value less costs to sell. When calculating value in use, the estimated future cash flows are discounted to their present value, whereby a pre-tax discount rate is used that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.
An impairment loss is recognised when the carrying amount of an asset or a CGU exceeds its recoverable amount.
Impairment losses are recognised in profit/(loss) for the year. Impairment recognised for CGUs is first allocated to any goodwill allocated to the CGU and then allocated to the carrying amount of the other assets of the CGU (group of CGUs) on a proportional basis.
An impairment loss on goodwill is not reversed. In the case of other assets, an impairment loss is reversed only to the extent that it does not increase the carrying amount of the asset above the carrying amount that would have been determined net of depreciation or amortisation had no impairment loss been recognised.
Provisions are formed if the Group has a current obligation (be it legal or practical in nature) from a past event, it is likely that fulfilment of the obligation will be associated with an outflow of resources, and a reliable estimate of the amount for the provision is possible.
The provision amount assessed is the best estimate for the additional benefit as at the reporting date for the purposes of settling the current obligation.
The level of the provisions is calculated by discounting the expected future cash flows at a pre-tax interest rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost.
The acquisition costs of treasury shares are recognised as a deduction from the equity.
A range of Group accounting policies and disclosures require the determination of the fair value of financial and non-financial assets and liabilities. The Group 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 Group Management Board.
The measurement team carries out a regular review of the major unobservable input factors and the measurement adjustments. If information from third parties (e.g. price quotations from brokers or price information services) is used to determine fair values, the measurement team examines the evidence obtained from the third parties for the conclusion that such measurements meet the requirements of IFRS, including the level in the fair value hierarchy to which these measurements are attributable. Major items in the measurement are reported to the Audit Committee.
As far as possible, the Group uses data that are observable on the market when determining the fair value of an asset or a liability. On the basis of the input factors used in the valuation techniques, the fair values are assigned to different levels in the fair value hierarchy:
If the input factors 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 level of the fair value hierarchy that corresponds to the lowest input factor significant for the measurement overall.
The Group recognises reclassifications between different levels of the fair value hierarchy at the end of the reporting period in which the change occurred.
Further information on the assumptions used to determine the fair values is given in the following Notes:
The accounting and valuation methods of the segments that are subject to mandatory reporting correspond to the consolidated accounting and valuation methods disclosed in Note 2. The earnings before taxes for the segments were determined taking the following components into consideration: summation of the IFRS earnings in the individual companies, taking the elimination of investment income in the various segments and amortisation of goodwill into consideration. All other consolidation effects (profit/(loss) at associates, elimination of interim results, and other overall effects) are included in the segment Group functions and consolidation. The segment profit/(loss) obtained in this manner is reported to the Management Board of the UNIQA Insurance Group AG to manage the Group in the following five operating segments:
With the exception of the following changes, the Group applied the accounting policies outlined consistently to all periods presented in these consolidated financial statements.
The Group applied the following new standards, interpretations and amendments to standards, with these first being applied as of 1 January 2015. None of the new regulations arising from this have any essential impact on UNIQA.
| Miscellaneous | Annual Improvements Project 2010 –2012 |
|---|---|
| IFRIC | 21 Charges |
For the purposes of more transparent presentation of the consolidated income statement as of 2015, income from management fees, which in previous years was deducted from operating expenses, is reported under investment income. Prior-year amounts have been adjusted accordingly.
An adjustment was made to a deferred tax liability in the reporting year amounting to €33 million, which was recognised in 2011 in connection with a proportion allocated to the IAS 39 category "Available for sale" within the scope of a benefit in kind. Prior-year amounts have been adjusted accordingly. The adjustments are shown in the consolidated statement of changes in equity.
In order to achieve a transparent presentation of the balance sheet, starting in the 2015 financial year debt that was reported in the previous year under other provisions is now reported under liabilities and other items classified as equity and liabilities. This essentially includes liabilities to employees. Prior-year amounts have been adjusted accordingly.
With the objective of enabling a clearer presentation of cash flows, reclassifications have been made compared to the presentation in the previous years. The figures for the previous year have been adjusted accordingly.The impact of the adjustments described above on the consolidated statement of financial position and the consolidated income statement is presented below:
| Consolidated statement of financial sosition Equity and liabilities in € thousand |
31/12/2014 Adjusted |
31/12/2014 Published |
31/12/2014 Adjustment |
|---|---|---|---|
| Liabilities | |||
| Other provisions | 801,837 | 833,914 | – 32,077 |
| Liabilities and other items classified as equity and liabilities | 1,400,828 | 1,368,751 | 32,077 |
| Total equity and liabilities | 33,038,153 | 33,038,153 | 0 |
| Consolidated income statement in € thousand |
2014 Adjusted | 2014 Published | Adjustment 2014 |
|---|---|---|---|
| Operating expenses | |||
| b) Other operating expenses | – 386,558 | – 362,782 | – 23,776 |
| Technical result | 127,706 | 151,482 | –23,776 |
| 0 | |||
| Net investment income | 888,151 | 864,375 | 23,776 |
| Non-technical result | 319,860 | 296,084 | 23,776 |
| Profit/(loss) for the year | 292,877 | 292,877 | 0 |
| Earnings per share (in €) | 0.94 | 0.94 | 0.00 |
A series of new standards, amendments to standards and interpretations were due to be applied for the first time in the first reporting period of a financial year starting after 1 January 2015 and were not applied in preparing these consolidated financial statements. Those which could be relevant for the Group are outlined below. The Group does not intend to early apply these standards.
| New standards and interpretations | Effective date | Endorsement | |
|---|---|---|---|
| IFRS 9 9 |
Financial instruments | 1 January 2018 | No |
| IFRS 14 | Regulatory deferral accounts | 1 January 2016 | No1 |
| IFRS 15 | Revenue from contracts with customers | 1 January 2018 | No |
| IFRS 16 | Leases | 1 January 2019 | No |
| Amended standards and interpretations | Effective date | ||
| IAS 1 | Presentation of financial statements (disclosure initiative) | 1 January 2016 | Yes |
| IAS 19 | Employee benefits – defined benefit plans: employee contributions | 1 February 2015 | Yes |
| Miscellan eous |
Annual Improvements Project 2011 –2013 | 1 February 2015 | Yes |
| IAS 16, IAS 38 Property, plant and equipment and intangible assets – clarification of the admissible methods of depreciation and amortisation |
1 January 2016 | Yes | |
| IAS 27 | Separate financial statements – equity method in separate financial statements |
1 January 2016 | Yes |
| IFRS 10, IAS 28 |
Consolidated financial statements and investments in associates and joint ventures – sale or contribution of assets between an investor and its associate or joint venture |
The endorsement was postponed indefinitely |
|
| IFRS 10, | 1 January 2016 | No | |
| IFRS 12, IAS 28 |
Consolidated financial statements and investments in associates and joint ventures – investment entities: applying the consolidation exception |
||
| IFRS 11 | Joint arrangements – acquisition of interests in joint operations | 1 January 2016 | Yes |
| Miscellan eous |
Annual Improvements Project 2012 –2014 | 1 January 2016 | Yes |
| IAS 16, IAS 41 Property, plant and equipment and agriculture – bearer plants | 1 January 2016 | Yes |
IFRS 9 "Financial Instruments" deals with the classification, recognition and measurement of financial assets and financial liabilities. The full version of IFRS 9 was published in July 2014. This standard replaces the regulations of those sections of the existing IAS 39 that address the
1 The European Commission decided not to adopt this interim standard and to wait for publication of the final standard. classification and measurement of financial instruments. IFRS 9 adheres to a mixed measurement model, but it simplifies this and sets out three principal measurement categories for financial assets: measurement of amortised cost, measurement at fair value with value fluctuations recorded in profit/(loss) for the year (fair value through profit and loss) and measurement at fair value with value fluctuations recorded in other comprehensive income (fair value through OCI). The classification depends directly on the company's business model as well as on the features of the contractually agreed payment flows for the financial assets. Shares of equity instruments must be measured at fair value, with fluctuations in fair value recognised through profit or loss, or with fluctuations in fair value measured through other comprehensive income if the company irrevocably opts to do so upon first-time recognition of the equity instruments (with no subsequent reclassification in net profit for the year). There is also a new measurement model for impairments based on expected losses (expected credit losses model) which replaces the existing measurement model of actual losses incurred that was used in IAS 39 (incurred loss model). Regarding financial liabilities, there are no changes to classification or measurement, with the exception of mandatory reporting of own creditworthiness risk in other comprehensive income for financial liabilities designated at fair value and recognised in profit/(loss) for the year. IFRS 9 eases the requirements in relation to hedging effectiveness by removing the previous narrow limits of hedging effectiveness. There is now a requirement for an economic relationship between the underlying transaction and the hedging instrument, and also that the hedged part (hedged ratio) corresponds with the assumptions and conditions with which the Company manages the items as part of its risk management activities. Furthermore, hedging documentation must be prepared as currently prescribed, whereby it will differ from the documentation required under IAS 39. The standard applies to reporting periods beginning on or after 1 January 2018. Earlier application is permitted. This is expected to have an impact on UNIQA's consolidated financial statements in relation to the classification and measurement of financial assets, although no statement can be made at present concerning the effects it will have on the company's financial position. In this context, the IASB published a draft of proposed amendments to IFRS 4 insurance contracts on 9 December 2015, aimed at addressing the concerns surrounding the different implementation dates of IFRS 9 financial instruments and the expected new standard for accounting for insurance contracts.
The amendments are intended to provide two options to companies that issue insurance contracts within the scope of IFRS 4:
This draft could therefore result in the initial application for IFRS 9 being deferred until January 2021, if it is implemented.
IFRS 15 "Revenue from Contracts with Customers" governs revenue recognition and sets out the basic principles for reporting of meaningful information on the type, amount, recognition date and uncertainties regarding revenues and payment flows from contracts with customers. Sales revenues are recorded if a customer has control over a delivered item or a service provided and has the ability to enjoy these goods and services and derive benefits from these. The standard replaces IAS 18 "Revenue" and IAS 11 "Construction Contracts" and the associated interpretations. The standard applies to reporting periods beginning on or after 1 January 2017. The Group is currently ascertaining the impact of IFRS 15.
IFRS 16 "Leases" covers the reporting of leases. UNIQA acts both as a lessee and a lessor, with no changes being made to accounting on the lessor side as a result of the introduction of IFRS 16. The leases from a lessee perspective pertain primarily to land and buildings. The standard applies to reporting periods beginning on or after 1 January 2019. The Group is currently ascertaining the impact of IFRS 16.
The provisions stated have been implemented in these consolidated financial statements if applicable. However, this has not resulted in any significant impact on the presentation of the financial position.
The consolidated financial statements require the Group Management Board to make discretionary decisions, estimates and assumptions that relate to the application of accounting policies and the amounts stated for the assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recorded prospectively.
The most significant instances where discretion has been exercised and forecasts for the future have been used for these IFRS-consolidated financial statements are described below:
Goodwill arises from company mergers and acquisitions. It represents the difference between the acquisition costs and the proportional and current corresponding net fair value of identifiable assets, debts and specific contingent liabilities. In accordance with IAS 36, goodwill is not subject to amortisation, but reported at the acquisition cost less any accrued impairments.
For the purpose of the impairment test, UNIQA has allocated the goodwill to "cashgenerating units" (CGUs). These CGUs are the smallest identifiable groups of assets that generate cash flows that are 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 amount that can be generated by selling or using each CGU, the present value of future cash flows, and the value to be covered, consisting of goodwill, the proportional net assets and any capital increases and internal loans. If the resulting value exceeds the realisable value of the unit based on the discounted cash flow method, an impairment loss is recognised. The impairment test was carried out in the fourth quarter of 2015. UNIQA has allocated goodwill to the CGUs listed below, which coincide with the countries in which UNIQA operates. As an exception to this, the Austrian companies were considered individually, and SalzburgerLandesversicherung AG and UNIQA Österreich Versicherungen AG were considered as a group, as was the Sigal Group, in which the three countries of Albania, Kosovo and Macedonia were combined as one CGU, due to their similar development and organisational connection:
The assumptions with regard to risk-free interest rate, market risk premium and segment betas made for determination of the capitalisation rate are consistent with the parameters used in the UNIQA planning and controlling process and are based on the capital asset pricing model.
In order to depict the economic situation of income values as accurately as possible, considering the volatility on the markets, the capitalisation rate was calculated as follows: a uniform, risk-free interest rate according to the Svensson method (German treasury bonds with 30 year maturities) was used as a base interest rate.
The beta factor was determined on the basis of the monthly betas over the last five years for a defined peer group. The betas for the non-life, life and health segments were determined using the revenues in the relevant segments of the individual peer group companies. The health insurance segment, which is strongly focused on the Austrian market, is operated in a manner similar to life insurance. A uniform beta factor for personal injury insurance is therefore used in relation to the life and health insurance lines.
The market risk premium was determined on the basis of the current standards issued by the Austrian Chamber of Public Accountants and Tax Advisors (Kammer der Wirtschaftstreuhänder). The calculations published by Damodaran were used to determine the country risk premium. The country risk premium in accordance with the Damodaran method is calculated as follows: Starting from the rating of the country concerned (from Moody's), UNIQA obtains the yield spread from credit default swap spreads with the same rating as risk-free US government bonds, and adjusts this spread for the volatility difference between equity and bond markets. UNIQA also assumes that country risk will decline over the next few years on the basis of subsequent trends.
The calculation also factored in the inflation differential for countries outside the eurozone. In general, the inflation differential represents inflation trends in different countries and is used as a key indicator in assessing competitiveness. In order to calculate the inflation differential, the deviation of the inflation forecast for the country of the CGU in question in relation to the inflation forecast for a risk-free environment (Germany, in this case) was used. This is adjusted annually in the detailed planning by the expected inflation, and is subsequently applied for perpetuity with the value of the last year of the detailed planning phase.
UNIQA calculates the recoverable amount of the CGUs with goodwill allocated on the basis of value in use by applying generally accepted valuation principles by means of the discounted cash flow method (DCF). The budget projections (detailed planning phase) of the CGUs, the estimate of the long-term net profits achievable by the CGUs and long-term growth rates (perpetuity) are used as the starting point for determination of the capitalised value.
The earning power is determined by discounting the future profits with a suitable capitalisation interest rate after assumed retention to strengthen the capital base. In the process, the earning power values are separated by balance sheet segments, which are then totalled to yield the value for the entire company.
Taxes on operating income were set at the average effective tax rate of the past three years.
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 at UNIQA with the participation of UNIQA International, in combination with the reporting and documentation processes that are integrated into this dialogue. The plans are formally approved by the Group Management Board and also include material assumptions regarding the combined ratio, investment income, market shares and the like.
The last year of the detailed planning phase is used as the basis for determining the cash flows in phase 2. The growth in the start-up phase leading up to phase two was determined using a projection of the growth in insurance markets. It was assumed that the insurance markets would come into line with the Austrian level in terms of density and penetration in 40 to 60 years.
The capitalisation rate for all CGUs is listed below:
| Cash-Generating Unit | Discount factor | Discount factor perpetuity |
Growth rate (perpetuity) |
||
|---|---|---|---|---|---|
| Figures in per cent | Property/ casualty |
Life & health | Property/ casualty |
Life & health | Property/ casualty Life & health |
| Bosnia-Herzegovina | 17.3 | 17.9 | 13.3 | 14.0 | 7.1 |
| Bulgaria | 10.7 | 11.3 | 9.8 | 10.5 | 6.5 |
| Italy | 10.7 | 11.3 | 10.7 | 11.3 | 1.0 |
| Croatia | 11.3 | 11.9 | 10.5 | 11.2 | 5.6 |
| Liechtenstein | 6.5 | 7.1 | 6.9 | 7.6 | 1.0 |
| Montenegro | 14.6 | 15.3 | 10.6 | 11.3 | 6.5 |
| Austria | 7.8 | 8.5 | 7.8 | 8.5 | 1.0 |
| Poland | 8.2 | 8.8 | 9.5 | 10.1 | 4.7 |
| Romania | 10.3 | 11.0 | 10.8 | 11.5 | 6.2 |
| Russia | 24.3 | 24.9 | 12.3 | 13.0 | 5.5 |
| Switzerland | 6.5 | 7.1 | 6.9 | 7.6 | 1.0 |
| Serbia | 15.9 | 16.5 | 13.7 | 14.3 | 7.2 |
| Albania, Kosovo, Macedonia as "Sigal | |||||
| Group" sub-group (SEE) | 12.9 – 16.1 | 13.6 – 16.7 | 11 – 12.7 | 11.7 – 13.3 | 6.8 – 8.1 |
| Slovakia | 9.1 | 9.7 | 8.9 | 9.5 | 4.8 |
| Czech Republic | 9.1 | 9.7 | 8.8 | 9.5 | 4.5 |
| Ukraine | 73.5 | 74.2 | 22.2 | 22.8 | 7.6 |
| Hungary | 11.6 | 12.2 | 11.3 | 12.0 | 5.5 |
| Regions | |||||
| Austria | 7.8 | 8.5 | 7.8 | 8.5 | 1.0 |
| Western Europe (WE) | 6.5 – 10.7 | 7.1 – 11.3 | 6.9 – 10.7 | 7.6 – 11.3 | 1.0 |
| Central Europe (CE) | 8.2 – 11.6 | 8.8 – 12.2 | 8.8 – 11.3 | 9.5 – 12.0 | 4.5 – 5.5 |
| Eastern Europe (EE) incl. Russian | |||||
| Federation | 10.3 – 73.5 | 11.0 – 74.2 | 10.8 – 22.2 | 11.5 – 22.8 | 6.2 – 7.6 |
| Southeastern Europe (SEE) | 10.7 – 17.3 | 11.3 – 17.9 | 9.8 – 13.7 | 10.5 – 14.3 | 6.5 – 8.1 |
The discount rate ranges listed for the Sigal Group and the regions relate to the spread over the respective countries grouped under these headings. Source: Damodaran and derived factors
| Cash Generating Unit | Discount factor | Discount factor perpetuity |
Growth rate (perpetuity) |
||
|---|---|---|---|---|---|
| Figures in per cent | Property/ casualty |
Life & health | Property/ casualty |
Life & health | Property/ casualty Life & health |
| Bosnia-Herzegovina | 17.8 | 18.6 | 14.1 | 14.9 | 7.1 |
| Bulgaria | 8.4 | 9.2 | 10.6 | 11.4 | 6.5 |
| Italy | 11.2 | 11.9 | 10.1 | 10.9 | 1.0 |
| Croatia | 10.7 | 11.5 | 11.5 | 12.3 | 5.6 |
| Liechtenstein | 7.1 | 7.8 | 7.6 | 8.4 | 1.0 |
| Montenegro | 15.3 | 16.0 | 11.3 | 12.1 | 6.5 |
| Austria | 8.3 | 9.1 | 8.3 | 9.1 | 1.0 |
| Poland | 8.5 | 9.2 | 10.2 | 10.9 | 4.7 |
| Romania | 11.9 | 12.6 | 11.7 | 12.5 | 6.2 |
| Russia | 16.7 | 17.4 | 12.9 | 13.7 | 5.5 |
| Switzerland | 7.1 | 7.8 | 7.6 | 8.4 | 1.0 |
| Serbia | 16.5 | 17.3 | 14.4 | 15.1 | 7.2 |
| Albania, Kosovo, Macedonia as "Sigal | |||||
| Group" sub-group (SEE) | 14.2 – 15.5 | 14.9 – 16.3 | 11.5 – 13.4 | 12.2 – 14.1 | 6.8 – 8.1 |
| Slovakia | 9.6 | 10.4 | 9.4 | 10.1 | 4.8 |
| Czech Republic | 8.5 | 9.3 | 9.5 | 10.3 | 4.5 |
| Ukraine | 27.0 | 27.7 | 17.4 | 18.1 | 7.6 |
| Hungary | 10.9 | 11.7 | 12.0 | 12.8 | 5.5 |
| Regions | |||||
| Austria | 8.3 | 9.1 | 8.3 | 9.1 | 1.0 |
| Western Europe (WE) | 7.1 – 11.2 | 7.8 – 11.9 | 7.6 – 10.1 | 8.4 – 10.9 | 1.0 |
| Central Europe (CE) | 8.5 – 10.9 | 9.2 – 11.7 | 9.4 – 12.0 | 10.1 – 12.8 | 4.5 – 5.5 |
| Eastern Europe (EE) incl. Russian Federation |
11.9 – 27.0 | 12.6 – 27.7 | 11.7 – 17.4 | 12.5 – 18.1 | 6.2 – 7.6 |
| Southeastern Europe (SEE) | 8.4 – 17.8 | 9.2 – 18.6 | 10.6 – 14.4 | 11.4 – 15.1 | 6.5 – 8.1 |
The discount rate ranges listed for the Sigal Group and the regions relate to the spread over the respective countries grouped under these headings. Source: Damodaran and derived factors
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.
The reference sources included the following studies and materials:
In order to substantiate the results of the calculation and estimation of the value in use, random sensitivity analyses with regard to the capitalisation rate and the main value drivers are performed.
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 or regional 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.
In the event that the recovery from the economic crisis turns out to be much weaker and slower than assumed in the business plans and fundamental forecasts, and the insurance markets therefore develop completely differently from the assumptions made in those business plans and forecasts, the individual CGUs may be subject to unscheduled impairment losses. Despite slower economic growth, income expectations have not changed significantly compared to previous years.
A sensitivity analysis shows that if there is a rise in interest rates of 50 basis points in the countries of Romania and Hungary, there could be a convergence between the value in use and the carrying amount or a value in use that is lower than the carrying amount. If there were a stronger rise in interest rates of 100 basis points or more, Bosnia-Herzegovina, Italy, Serbia and Slovakia would also be affected. If the underlying cash flows change by –5.0 per cent, there will also be a risk of a convergence or a value in use that is lower than the carrying amount in Hungary. This list expands to include Bosnia-Herzegovina, Italy, Romania and Slovakia when there is a deviation of more than –10.0 per cent in the cash flows.
In 2015, due to exchange rate effects and necessary adjustments of the discount rate as a result of the changes in the economic environment, impairment losses were recognised in the amount of €13.1 million for Ukraine.
The following table shows the recoverable amounts at the time of the impairment test for all CGUs with the necessary goodwill.
| Recoverable | |||||
|---|---|---|---|---|---|
| Cash-Generating Unit | Recoverable | amount exceeds | Impairment | ||
| In € thousand | amount | carrying amount | for the period | ||
| Bulgaria | 99,916 | 27,800 | 0 | ||
| Italy | 361,076 | 20,029 | 0 | ||
| Romania | 183,564 | 17,601 | 0 |
Backtesting is regularly carried out on the planning for the individual countries. The objective is to obtain information for internal purposes on the extent to which the operating units plan their results accurately and on the extent to which details useful with regard to subsequent development are highlighted. Backtesting is intended to help draw conclusions that can be applied to the latest round of planning, in order to enhance the planning accuracy of forthcoming financial plans.
The fair value of investment property within the scope of the impairment test in accordance with IAS 36, as well as for the disclosures according to IFRS 13, is determined by using a report prepared by independent experts. These expert reports are prepared based on earned value and asset value methods. This is typically done using the DCF method by discounting expected future payments from the relevant land and buildings. It requires making assumptions, principally concerning the discount rate, the exit yield, the expected utilisation (vacancy rate), the development of future rental charges, and the condition of the land and buildings. For this reason, all measurements of the fair value for the land and buildings come under level 3 of the hierarchy according to IFRS 13. The nature of the measurement procedures stated above is that they respond sensitively to the underlying assumptions and parameters. For instance, any reduction in the discount rate applied would result in an increase in the values ascertained for the land and buildings if the other assumptions and parameters remained unchanged. Conversely, any reduction in the expected utilisation or the expected rental charges would, for instance, result in a decrease in the values ascertained for the land and buildings if the other assumptions and parameters remained unchanged. The measurement-related assumptions and parameters are ascertained carefully at each key date based on the best estimate by management and/or the experts in view of the current prevailing market conditions. These estimates are updated at each key measurement date.
As at 31 December 2015 UNIQA had deferred tax assets amounting to €9.4 million (netted out), of which €11.7 million were attributable to tax loss carryforwards. The deferred tax assets result from tax loss carryforwards, impairment in accordance with section 12 of the Corporation Tax Act (KStG), and from deductible temporary differences between the carrying amounts of the assets and liabilities in the consolidated statement of financial position and their tax values. Deferred tax assets are accounted for, provided that it is likely that there will be adequate taxable profit for them to be realised. An assessment of the ability to realise deferred tax assets requires an estimate of the amount of future taxable profits. The amount and type of these taxable earnings, the periods in which they are incurred, and the available tax planning measures are all taken into account. The corresponding analyses and forecasts, and ultimately the determination of the deferred tax assets, are carried out by the local tax and finance experts in the relevant countries. Because the effects of the underlying estimates may be significant, there are internal group procedures that guarantee the consistency and reliability of the evaluation process. The resulting forecasts are based on business plans that are reviewed and approved through proper procedures. Especially convincing evidence regarding accounting for deferred tax assets is required under internal group policies if the relevant group company has suffered a loss in the current or a prior period.
For this purpose, reference is made to the statements and sensitivity analyses in the Notes to this balance sheet item under Note 28.
Reference is made here to the statements and sensitivity analyses under Note 7.5.
Reference is made here to the statements and sensitivity analyses under Notes 7.5 and 13.
The investment in STRABAG SE, the portfolio of asset-backed securities (ABS), and the assets related to Hypo Group Alpe Adria (HGAA) and HETA Asset Resolution AG (HETA) continue to be carefully monitored.
As at 31 December 2015, UNIQA held a 13.8 per cent stake in STRABAG SE (31 December 2014: 13.8 per cent). UNIQA is continuing to treat STRABAG SE as an associate due to contractual arrangements. The carrying amount of the investment in STRABAG SE at 31 December 2015 amounted to €463.0 million (31 December 2014: €456.5 million).
UNIQA held 0.7 per cent (2014: 1.8 per cent) of its investments in ABS. There were several developments in 2015 that resulted from the continued improvement in the liquidity situation of ABS, which influenced UNIQA's decision to depart from its forecast of expected losses based on internal valuations developed during crisis periods. The switch to a market data-based measurement of the ABS portfolio resulted in a reclassification of the ABS portfolio from category two to category three. This resulted in an increase in market value of €5.3 million.
The Act to restructure the state-owned Hypo Alpe Adria International AG (HaaSanG), which took effect on 1 August 2014, and which resulted in the cancellation of the subordinate liabilities of Hypo Alpe Adria International AG (HAA) without consideration of existing guarantees of the federal state of Carinthia, resulted in a complete impairment for the bonds held by UNIQA in 2014, with a nominal value of €36 million and a loss of €34.1 million. The legal steps taken by UNIQA and other creditors against these statutory measures culminated in a decision by the Austrian Constitutional Court on 3 July 2015, G239/2014 inter alia, whereby HaaSanG, along with the order by the Austrian Financial Market Authority (FMA) regarding the implementation of restructuring measures in accordance with section 7(2) HaaSanG in conjunction with sections 3 and 4(1) HaaSanG (HaaSanV), were lifted in their entirety. As a consequence, the subordinate bonds with a nominal value of €36 million that had been derecognised in 2014 were included on the balance sheet once again as at 30 September 2015. The value of these bonds on the balance sheet as at the reporting date of 31 December 2015 was €6.8 million.
On 1 March 2015 the FMA passed a decision on a debt moratorium for Heta Asset Resolution AG (HETA) with immediate effect until 31 May 2016, whereby no interest payments or repayments may be made inter alia on bond liabilities, subordinated capital or bonded loans. Aside from the subordinated liabilities, senior bonds guaranteed by the federal state of Carinthia and held by UNIQA with a nominal value of €25.0 million are affected by this measure. The value of these bonds as at the reporting date amounts to €17.1 million.
A subordinated liability of HETA collateralised by the Republic of Austria with a balance sheet value of €10.6 million (nominal value: €10.0 million) is the only one not affected by the statutory and supervisory measures.
We have set ourselves ambitious goals in connection with our corporate strategy UNIQA 2.0. In summary, we are working towards sustainable and profitable growth. We are taking the initiative, optimising processes and building on innovations. We are doing this in order to keep the promises we made to our customers, our shareholders and our employees. In addition, we make sure we have a business strategy that knows the right answer to all of our Company's risks. The Management Board has therefore adopted a risk strategy borne by four principles:
By following these four principles, we approach the future with confidence so that we can maintain a financial strength that allows us to achieve our corporate goals, keep our promises and fulfil our obligations even in turbulent times.
Our core business is to relieve our customers of risk, pool the risk to reduce it and thereby generate profit for our Company. Here, the focal point lies in understanding risks and their particular features.
In order to ensure that we keep our focus on risk, we have created a separate risk function in the Group's Management Board by establishing the position of a Group Chief Risk Officer and made the function of Chief Risk Officer a part of the Management Board in our regional companies. This ensures that decision-making is risk-based in all relevant bodies. We have established processes that allow us to identify, analyse and manage risks. Our business involves a large range of different risk types, which is why we employ experts to identify and manage them.
We regularly validate our risk profile at all levels of the hierarchy and hold discussions in specially instituted committees with the members of the Management Board. To obtain a complete picture of our risk position, we draw on internal and external sources while also regularly checking for new threats both in the Group and in our subsidiaries.
We take risks and do so in full knowledge of our risk-bearing capacity. We define this as our ability to absorb potential losses from extreme events so that our medium and long-term objectives are not put in danger.
Our risk decisions centre on our economic capital model (ECM), which we use to quantify risk and determine economic capital. The ECM is based on the standard model according to Solvency II and also reflects our own risk assessment. This is expressed in the quantification of the risks from the non-life sectors, in which we focus on a stochastic cash flow model, additional capital requirements of government bonds and a mark-to-market valuation of asset-backed securities. Based on this model, we are aiming for risk capital cover (capital ratio) of 170 per cent. As long as the capital ratio remains within the range of 155 to 190 per cent no action will be
taken, since a certain level of fluctuation is absolutely normal within the framework of the Solvency II regulations. However, immediate steps will be taken to improve the capital position if the marginal value falls below 135 per cent.
We also seek external confirmation of the path we have chosen. Standard & Poor´s has given us a credit rating of A–. One of our key objectives is to maintain the rating at this level or to improve upon it and to achieve sustainable increases in accordance with corporate strategy.
Non-quantifiable risks, in particular operational risk, litigation risk and strategic risk are identified as part of the risk assessment process and then assessed using scenario-based techniques. This assessment is then used as the basis for implementing any necessary risk mitigation measures.
Our risk strategy specifies the risks we intend to assume and those we plan to avoid. As part of our strategy process, we define our risk appetite on the basis of our risk-bearing capacity. This risk appetite is then used to determine tolerances and limits, which provide us with an early warning system sufficient for us to initiate prompt corrective action should we deviate from our targets. We also consider risks outside our defined appetite. We counter risks that fall into this category, such as reputational risk, with proactive measures, transparency and careful assessment.
We focus on risks that we understand and can actively manage. We divest ourselves of any investments in which the business principles are inconsistent with our core business. We consciously take on risk associated with life, health and non-life underwriting in order to consistently generate our income from our core business. We aim for a balanced mix of risk to achieve the greatest possible effect from diversification.
We analyse our income and the underlying risk, optimising our portfolio using value-based principles. We therefore strive for a balance between risk and return.
Risk also means opportunity. We regularly analyse trends, risks and phenomena that influence our society and thus our customers and ourselves. We involve our employees in the whole of the business to identify and analyse trends at an early stage, produce suitable action plans and develop innovative approaches.
The focus of risk management with management structures and defined processes is the attainment of UNIQA's and its subsidiaries' strategic goals.
UNIQA's Risk Management Guidelines form the basis for a uniform standard at various company levels. The guidelines are approved by the Group CRO and the full Management Board and describe the minimum requirements in terms of organisational structure and process structure. They also provide a framework for all risk management processes for the most important risk categories.
In addition to the Group Risk Management Guidelines, similar guidelines have also been prepared and approved for the Company's subsidiaries. The Risk Management Guidelines at subsidiary level were approved by the Management Board of the UNIQA subsidiaries and are consistent with UNIQA's Risk Management Guidelines.
They aim to ensure that risks relevant to UNIQA are identified in advance and evaluated. If necessary, proactive measures are introduced to transfer or minimise the risk.
Intensive training on the content and utilisation of these guidelines is required in order to ensure that risk management is incorporated in everyday business activities. Extensive informative and training measures have therefore been taken since 2012; they will be continued in the future and extended to additional target groups.
The detailed set-up of the process and organisational structure of risk management is set out in UNIQA's Risk Management Guidelines. They reflect the principles embodied in the concept of "three lines of defence" and the clear differences between the individual lines of defence.
Those responsible for business activities must develop and put into practice an appropriate risk control environment to identify and monitor the risks that arise in connection with the business and processes.
The risk management function and the supervisory functions, such as controlling, must monitor business activities without encroaching on operational activities.
This enables an independent review of the formation and effectiveness of the entire internal control system, which comprises risk management and compliance (e.g. internal auditing).
| UNIQA Holding Management Board | UNIQA Holding Management Board |
|---|---|
| • Active risk management and controlling through value-orientated principles | |
| • Approves the UNIQA risk management strategy | |
| • Approves the risk limit for operating companies | |
| • Highest authority for decisions regarding risk transfer and mitigation | |
| UNIQA Holding CRO1) | UNIQA Holding CRO |
| • Functional management of the UNIQA risk management unit | |
| • Chair of the UNIQA Risk Management Committee | |
| • Responsible for shaping the risk management strategy | |
| • Monitors the overall risk situation | |
| • Appropriate structures for risk management and reporting | |
| Group Risk Committee | Group Risk Committee |
| • Defi nes the risk management strategy | |
| • Prepares and monitors risk-bearing capacity and risk limits and the | |
| "value-creating units" in the Group | |
| • Defi nes capital allocation and sets coherent limits | |
| • Approves the model change (capital model, partial models) | |
| Group Risk Management Functions | Group Actuarial & Risk Management |
| • Defi nes the UNIQA risk management process | |
| • Conducts the uniform risk management process | |
| • Coordinates the calculation of solvency capital requirements and | |
| minimum capital requirements | |
| • Defi nes minimum standards for all risk management processes | |
| • Ensures the eff ective and timely reporting of risk management | |
| information | |
| • Prepares and monitors risk limits for the company | |
| Operating Companies (CRO, RM) | Local Risk Committees |
| • Conducts the uniform UNIQA BU risk management process in | |
| accordance with Group standards | |
| • Prepares and maintains minimum standards for the specifi c | Operating Company (CRO, RM) |
| risk management processes for all risk categories | |
| • Prepares and monitors risk limits | |
| • Monitors overall risk management performance and ensures | |
| eff ective and timely reporting | |
1) Beginning 1 January 2015 in an interlocking directorate together with the CFO
The UNIQA Insurance Group AG Management Board is responsible for establishing the business policy objectives and determining the associated risk strategy. The core components of the risk management system and the associated governance are enshrined within the UNIQA Group Risk Management Policy adopted by the Management Board.
The function of Chief Risk Officer (CRO)1 is a separate area of responsibility at the Group Management Board level. This ensures that risk management is represented on the Management Board. The CRO is supported in the implementation and fulfilment of risk management duties by the Group Actuarial and Risk Management unit. A central component of the risk management organisation is UNIQA's risk management committee, which carries out monitoring and initiates appropriate action in relation to the current development and the short and longterm management of the risk profile. The risk management committee establishes the risk strategy, monitors and controls compliance with risk-bearing capacity and limits, and therefore plays a central role in the management process implemented under UNIQA's risk management system.
In the operative insurance companies, the CRO function has also been established at Management Board level, with the functions of the risk manager at the next level down. A consistent, uniform risk management system has therefore been set up throughout the Group.
As at Group level, each of the operative insurance companies has its own risk management committee, which forms a central element of the risk management organisation. This committee is responsible for the management of the risk profile and the associated specification and monitoring of risk-bearing capacity and limits.
The Supervisory Board at UNIQA Insurance Group AG receives comprehensive risk reports at Supervisory Board meetings.
UNIQA's risk management process delivers periodic information about the risk profile and enables the top management to make the decisions for the long-term achievement of objectives.
The process concentrates on risks relevant to the Company and is defined for the following risk categories:
1 Activities carried out concurrently by the CFO A Group-wide, standardised risk management process regularly identifies, evaluates and reports on risks to UNIQA and its subsidiaries within these risk categories.
Risk identification is the starting point for the risk management process, systematically recording all major risks and describing them in as much detail as possible. In order to conduct as complete a risk identification as possible, different approaches are used in parallel, and all risk categories, subsidiaries, processes and systems are included.
The risk categories of market risk, technical risk, counterparty default risk and concentration risk are evaluated at UNIQA by means of a quantitative method based on the standard approach of Solvency II and the ECM approach. Furthermore, risk drivers are identified for the results from the standard approach and analysed to assess whether the risk situation is adequately represented (in accordance with the Company's Own Risk and Solvency Assessment (ORSA)). All other risk categories are evaluated quantitatively or qualitatively with their own risk scenarios.
The scenario analysis (of UNIQA's economic, internal and external risk situation) is generally a crucial element in the risk management process.
A scenario is a possible internal or external event that has a short-term or medium-term effect on consolidated profit or loss, the solvency position or sustainability of future results. The scenario is formulated with respect to its inherent characteristic (e.g. the start of Greece's insolvency) and evaluated in terms of its financial effect on UNIQA. The likelihood that the scenario will actually occur is also considered.
The limit and early warning system determines risk-bearing capacity (available equity according to IFRS, financial equity) and capital requirements on the basis of the risk situation at ongoing intervals, thereby deriving the level of coverage. If critical coverage thresholds are reached, then a precisely defined process is set in motion, the aim of which is to bring the level of solvency coverage back to a non-critical level.
A quarterly report on the solvency situation along with a monthly risk report on the biggest risks identified are prepared for each operational company and for the UNIQA Group on the basis of detailed risk analysis and monitoring. The reports for each individual UNIQA subsidiary and the UNIQA Group itself have the same structure, providing an overview of major risk indicators such as risk-bearing capacity, solvency requirements and risk profile. In addition, quantitative and qualitative reporting (in the form of the quantitative reporting templates and the narrative report respectively) is implemented for the UNIQA Group and for all subsidiaries for which Solvency II reporting is mandatory.
Based on external and internal developments, activities in 2015 focused on the following:
Solvency II is an EU-wide project, the objective of which is to achieve a fundamental reform of solvency regulations (capital requirements) for insurance companies. The existing static system for determining capital requirements is to be superseded by a risk-based system. One of the main changes in the new system is that it is to take greater account of qualitative elements such as internal risk management.
Following publication of the preparation guidelines by the European Insurance and Occupational Pensions Authority (EIOPA) in October 2013 and the implementation of these guidelines in the Austrian Insurance Supervision Act (VAG) of June 2014, it is now clear what preparation work is needed before Solvency II comes into force on 1 January 2016.
As in previous years, in 2015 specific preparatory steps were again taken based on this information, both in the UNIQA Group and in the operating units. This included in particular
In addition, a comprehensive training programme for senior managers, other managers, and employees in key functions is a core component of a fully functioning Group-wide risk management framework. Understanding of the objectives and the impact of the risk management approach in the context of value-based management should be achieved. A great deal of importance is also attached to training the Supervisory Board of the UNIQA Insurance Group AG so that the members of the Supervisory Board are well informed about the ongoing developments in the management approach (economic management) and can take these developments into account with respect to their supervisory activities.
In both cases, the discussion about the use of the information from the risk capital models, in particular from the partial internal model relating to property/casualty insurance, is a relevant point, allowing users to make the connection between this information and the ongoing business.
The interest rate environment that remained low and volatile in 2015 meant that a restrictive approach was still required in terms of new products and asset liability management, particularly in life insurance.
Group guidelines ensure that products are subject to a standardised profitability test before being launched on the market and achieve minimum defined margins in terms of their expected value. The guaranteed discount rate for new traditional life insurance products was reduced even further in many UNIQA companies as a result of the interest rates, often below the relevant maximum rate permissible by statute.
The domestic market of Austria which continues to be characterised by strong customer demand for life insurance products should be mentioned as a particular example of this. Here, at UNIQA Austria and Raiffeisen Versicherung AG, the products in the traditional life insurance line were completely revised as of 1 January 2015 and given the title "New Classic" ("Klassik Neu"). The "New Classic" will give customers a 100 per cent capital guarantee on net premiums, high repurchase values from the beginning, along with the possibility of making variable additional payments and withdrawals during the term. In addition, costs and fees are spread out proportionally over the entire term and no longer taken from the premium but rather from the profit. The entire premium amount (excl. insurance tax) thus flows directly into the investment, resulting in a considerably higher savings premium from the beginning than is offered by conventional life insurance. This means the product offers customers much more transparency and flexibility.
From the Company's point of view, this product concept has the advantage that, among other things, the discount rate is set at 0 per cent, which leads, in particular on longer terms, to a reduction of the guarantee requirement. In addition, this new product concept also meets the future legal requirements concerning transparency and capital adequacy. The year 2015 was an impressive example of how the route followed meets both customer needs and earnings requirements, even though product developments are being introduced on a continuous basis. In Austria, for instance, more than 40.000 policies of the "New Classic" product were sold in 2015, which exceeded our expectations.
In Asset Liability Management (ALM), the process was consistently continued to reduce the duration gap even further, which involves more effectively adjusting the terms of the assets to the terms of the liabilities. The option of running a regular/year-round procedure to draw up the risk profile and associated limits represents a key element of the ALM process in UNIQA. Management is carried out on the basis of risk capital consumption and associated limits, which enables the Group to make strategic decisions on the basis of a value-based risk/return analysis.
In 2015, the Group focused not only on the necessary standard processes but also on scenario analyses, especially the possible changes in the liabilities profile depending on different interest rate situations. In this case, the analysis of the life insurance business plays a central role because it is difficult to predict a change in the lapse or surrender pattern for customer policies in response to a specific trend in interest rates. Associated risks were analysed and action implemented to cushion these risks.
The period of low interest rates experienced in 2014 also continued throughout 2015, with rates falling to historically low levels in some cases. This situation has a particularly marked effect in life insurance. Depending on the investment strategy, the persistently low interest rates can lead to a situation in which the income generated is insufficient to finance the guarantees made to policyholders. The topic of low interest rates continues to be of concern to the entire European insurance industry and is leading to intensive discussions about how insurance companies can ensure that customer options and guarantees (in both existing and new business) are financed over the long term. Significant measures taken by UNIQA within the defined life strategy have been to focus on implementing the ALM approach including stringent management rules (e.g. regarding the management of profit sharing) and to provide continuous portfolio management to support the new business strategy in the personal injury insurance business.
One specific issue is the question of requirements (which vary from country to country) to recognise supplementary discount rate provisions, i.e. requirements to set aside special provisions in the respective local accounting if interest rates are low. As at 31 December 2015, UNIQA had set aside a special provision exclusively in local accounting in the amount of €67.8 million in its Austrian companies because there is a statutory requirement in Austria to recognise this special provision. The corresponding regulations for forming the special provision were revised as part of the restructuring of the Insurance Supervision Act in Austria, whereby it must be emphasised that a part of the expenditure from 2016 represents a deduction item in the assessment basis for the profit participation. This special provision in the local accounting is to be seen alongside the liability adequacy test (LAT) to check whether the provisions in the IFRS financial statements are adequate. Depending on the interest rate situation and the resulting planning of investment income, there is the fundamental risk in the future of a potential provision requirement as a consequence of the LAT.
In terms of the insurance market in CEE, improved economic outlooks in the countries of Central and Eastern Europe provide better opportunities for growth for the insurance industry, considerably outperforming those in the already saturated insurance markets of Western Europe. However, the premium revenue remains patchy for 2015. For life insurance, the premium volume for the entire region fell slightly, primarily due to the continued heavy decrease in single premium business, particularly in the Czech Republic. In contrast, a series of insurance markets in Southeastern Europe recorded very strong growth in the life insurance business. The market generally grew in the non-life sector, although the intense price competition, particularly in the vehicle and property insurance lines in several Central and Eastern European markets, also resulted in lower premium revenues. Reforms to legal structural conditions combined with the exit or withdrawal of individual competitors should, however, help improve the competitive situation in individual markets. Expectations of higher premium revenue in 2016 remain cautiously optimistic in line with the changes in the insurance markets over the past year and the improved economic conditions. The additional effects of the current political crisis on the insurance industries in Ukraine and Russia are difficult to assess at the present time, although we do expect there to be a trend towards improvement in the market situation. Further political risks in the region are difficult to assess at the present time and cannot be ruled out completely, although they should be of less relevance to the Group in 2016. The risk of sustained or even more intense price competition can be categorised as comparatively higher, particularly in the non-life sector in the Central European markets.
The continued political uncertainty in Ukraine caused by the separatist movement in the east of the country raises questions about whether the country will be able to go on servicing some of its borrowing. As at 31 December 2015, the UNIQA Group's portfolio of Ukrainian government bonds came to a nominal value of €19.0 million and a fair value of €16.4 million. Of these, a nominal value of €16.9 million are invested in the Ukrainian subsidiary.
The Ukrainian currency, the hryvnia (UAH), weakened by approximately 27 per cent against the euro during the course of 2015 (exchange rate as at 31 December 2015: 0.0383. The total value of all the UAH securities in the UNIQA Group amounts to a fair value of €6.2 million.
The continued EU sanctions against Russia are impacting the exchange rate of the rouble to the euro (exchange rate as at 31 December 2015: 0.0124). In turn, this led to a volatile interest rate environment and the devaluation of government bonds. The fair value of the total portfolio of RUB securities in the UNIQA Group amounts to a fair value of €71.4 million, of which €52.1 million are invested in the Russian subsidiary. The nominal value of Russian government bonds in the UNIQA Group's portfolio amounts to €100.9 million (of which €61.2 million in the Russian subsidiary), with a fair value in the amount of €95.5 million.
In terms of technical risk, the further development of the motor business in CEE countries (comprehensive vehicle insurance, including liability insurance) continues to represent the greatest challenge because this business segment accounts for a considerable proportion of the property and casualty insurance in the CEE region. The most significant difficulties are, firstly, that there is a continuously changing legal environment leading to higher benefit payments in the event of personal injury claims and, secondly, that many markets are still subject to a price war as companies vie to win customer segments. UNIQA increasingly relies on a professional pricing approach. In addition to conducting ongoing market analyses, the Company carries out standardised profitability tests to ensure that pricing is appropriate. In addition, guidelines are intended to ensure that international insurance claims (known as green card claims) are settled within UNIQA affiliated companies or with exclusively specified partners.
In the second half of 2015, the agreements between all relevant UNIQA countries were amended accordingly. For the first time, there is an internal solution in place with UNIQA Assicurazioni as an expert partner in Italy; UNIQA Romania was the first country to switch in September 2015. The next focal point is on the selection of exclusive partners that meet our quality requirements in those countries in which we have no representation via a UNIQA company.
A structured review (leakage audit) was carried out in 12 countries in 2015 on closed claims with the aim of achieving ongoing improvements in the claims processes, with individual measures agreed with each country as a result. This will be continued in 2016. The focus will also be on "combating fraud" and measures aimed at countering the development of "personal injury".
The topic of the introduction of Solvency II continues to present a major challenge, particularly as the new legal framework is now coming into full effect for the first time. It must be highlighted here in particular that UNIQA has developed a partial internal model for property/casualty insurance which is being evaluated by the Austrian insurance supervisory authority as part of a pre-application phase. Sufficient resources must be dedicated to this task as a result of the high level of administrative effort involved in the official procedure.
Concerning operational risk, there is a need for capital investment in the renewal of IT infrastructure and systems. The present situation is currently marked by very elaborate business processes and the complexity resulting from them in the IT sector. The greatest risks in the IT sector are the increasing IT complexity, any destabilisation of older environments, monopoly of knowledge and the growing risk in the area of IT security. As a response to this, UNIQA began modernising its operating model within the IT sector in 2014, simultaneously standardising all IT processes and control bodies in the sector and reducing the operational risk in the IT field. These days, IT works exclusively based on individual tools and workflows that are standardised, with the workflows regulated by quality gates in the event of changes to the environments. Once the IT organisation has been modernised, UNIQA plans to modernise IT as a whole starting in 2016. This programme involves modernisation of the most important insurance programmes and thereby responds to the constant changes in the competitive environment, along with the requirements from customers and those related to products in today's insurance market. This solution will allow a reduction in the complexity in IT as well as in the length of time required for marketing inventions and new developments, with no need to continue relying solely on the knowledge of key individuals.
The preparatory work on Solvency II now results in control processes that will take full effect for the first time in 2016. For instance, the reporting requirements (Pillar 3 of Solvency II) in particular present challenges that must be given the appropriate priority. It is the quantitative reporting requirements (QRTs) and associated data and process requirements that result in high additional effort within the organisation and that require attention accordingly. More qualitative reports are required for the supervisory authority in the form of the Regular Supervisory Report (RSR) and the Actuarial Function Report (AFR). Extensive preparations are also needed for the Solvency and Financial Condition Report (SFCR) in order to create a good publication for the first time in 2017 (for the reporting year 2016). As already mentioned with regard to the challenges, a high priority is also being assigned to the approval procedure for the partial internal model for property/casualty insurance and the associated resources it calls for.
UNIQA is working on developing its value-oriented control approach on a continuous basis, and this is being put on a more secure footing as a result of Solvency II coming into force. In the future, capital management and the planning of estimated income will be extensively based on the risk capital position in the Group, the individual operating units and their areas of business. We have set ourselves the objective of achieving a transparent presentation of our approach to capital, the most significant risks and related stress, the associated target returns and an appropriate dividend policy. From the starting point of a defined risk-bearing capacity, the target returns are to be selected such that the return on risk capital permanently exceeds the cost of capital, ensuring ongoing dividend payments, while at the same time not jeopardising riskbearing capacity. Assurances are in place to support this ambition which guarantee that a consistent framework is used for economic value creation, starting with the risk and earnings assessment in the new product process through to the analysis of the results.
Continuation of the strategic programmes relating to cost management, ensuring profitability in property/casualty insurance, the further development of the life insurance strategy, including portfolio management (in-force management), capital investment from an ALM perspective and the associated internal processes represent crucial strategic cornerstones as they have in previous years as a result of the ongoing period of low interest rates. All programmes are to make a contribution to enable the Group to achieve the planned profits in 2016 and sustain this level in the years ahead. Particularly in this period of low interest rates and significant volatility in capital markets, the successful implementation of projects that stabilise or improve net profit in the core operating business is central to our activities.
Starting in 2016, UNIQA will pay greater attention to the topic of further developing future IFRSs (IFRS 4 and IFRS 9). The major changes expected in the assessment (balance sheet as well as income statement) of the insurance business require an adequate lead time in order for the content and process-related challenges to be implemented accordingly. Despite UNIQA's good preparations within the scope of Solvency II, we still expect that significant additional effort will be required in order to be able to meet the upcoming IFRS requirements. Initial studies are due to be carried out for this purpose in 2016 with the aim of developing a tangible implementation plan for the coming years.
Work on developing a Target Operating Model (TOM) for finance processes is taking place for the first time in 2016 as part of the restructuring and optimisation of the finance division, similar to the work on the core processes in the last few years. "TOM Finance" is aimed at ensuring as uniform an acquisition process as possible within the Group, as well as improving and accelerating processes and eliminating any inefficiencies that may still exist. We see this as a further consistent step towards improving the quality of the figures while at the same time speeding up the compilation process.
The promotion of the digital single market as well as the further development of consumer protection provisions related to financial services for private customers will support us within the scope of regulatory changes. The Green Paper published by the European Commission in mid-December 2015 has already started a consultation process on the consequences of digitalisation of financial products, and examines the potential for developing new innovative products in this field. In addition to this, the European Commission is also examining the options for creating a beneficial environment for Pan-European Pension Products ("PEPPs") via a call-foradvice to EIOPA. The appeal of long-term infrastructure investments will also increasingly be incentivised through accompanying regulatory measures and will influence investment strategies. The EU Insurance Distribution Directive "IDD" which was decided at the end of 2015 must be implemented by the Member States within the next 24 months, and will again ensure increased transparency (including in relation to disclosing commissions, standardised information sheets and disclosing the total costs of life insurance).
On the basis of the current regulatory requirements, available own funds and the risk capital requirement until the end of 2015 are calculated in accordance with Solvency I.
As Solvency II comes into force on 1 January 2016, the definitions and methods used to calculate available own funds as well as capital requirements and management standards are being replaced by Solvency II standards.
As at 31 December 2015, the solvency ratio on the basis of the regulatory provisions according to Solvency I was 301,7 per cent. Eligible equity amounted to €3,551.5 million; this included eligible subordinated liabilities of €250.0 million which constituted up to half of the equity requirement, and eligible subordinated liabilities in the amount of €290.9 million constituting up to a quarter of the equity requirement. The solvency requirement is €1,163.8 million.
Risk capital requirements and available equity are currently calculated according to Solvency I regulations. These will be replaced when the Solvency II provisions take effect. In order to guarantee a smooth transition between these two different calculation methods, UNIQA has completed parallel calculations since 2008. One consequence of these efforts was an early Group-wide introduction of the new methods and processes. Gaps and shortcomings will thus be identified early and promptly rectified.
UNIQA defines its risk appetite on the basis of an economic capital model (ECM). The cover for quantifiable risks with eligible own funds (capital ratio) should lie between 170 and 190 per cent in 2016.
As at 31 December 2014, the solvency ratio in accordance with the ECM was 150 per cent. Details for the reporting date of 31 December 2015, including a detailed analysis of changes, can be found in the ECM report.
In addition to regulatory and internal provisions, the Group also takes into account the capital requirements specified by an external rating agency to ensure that the Group's credit quality is presented objectively and can be compared with other entities. Therefore, UNIQA is regularly rated by the rating agency Standard & Poor's, which gives UNIQA Insurance Group AG a rating of "A–". UNIQA Österreich Versicherungen AG and UNIQA Re AG each have a rating of "A"; UNIQA Versicherung AG in Liechtenstein is rated with "A–". The supplementary capital bonds issued in 2013 (€350.0 million Tier 2, first call date 31 July 2023) and 2015 (€500.0 million Tier 2, first call date 27 July 2026) are rated "BBB" by Standard & Poor's. There are also further bonds with no rating (€250.0 million restricted Tier 1, first call date 31 December 2016). Standard & Poor's rates the outlook for all the companies as stable. UNIQA includes the impact on its rating in its capital planning process, with the objective of improving the rating over the long term as the corporate strategy is implemented.
UNIQA's risk profile is very heavily influenced by life insurance and health insurance portfolios in UNIQA Österreich Versicherungen AG and Raiffeisen Versicherung AG. This situation means that market risk plays a central role in UNIQA's risk profile. The composition of market risk is described in the section "Market risk".
The subsidiaries in Central Europe (CE: Hungary, Czech Republic, Slovakia and Poland) operate insurance business in the property and casualty segment and in the life and health insurance segment.
In the regions of Southeastern (SEE) and Eastern Europe (EE), insurance business is currently conducted primarily in the property/casualty segment, in particular in the motor vehicle insurance segment.
This structure is important to UNIQA, because it creates a high level of diversification from the life and health insurance lines dominated by the Austrian companies.
The distinctive risk features of the regions are also reflected in the risk profiles determined by using the internal measurement approach.
After every calculation for the life, non-life and composite insurers at UNIQA, benchmark profiles are created and compared with the risk profile for each company. The benchmark profiles show that, for composite insurers, there is a balance between market and actuarial risk. Composite insurers are also in a position to achieve the highest diversification effect.
Based on the categories defined in the Solvency II standard formula, market risk comprises interest rate, spread, equity, real property, currency and liquidity risk. Market risk is heavily influenced by interest rate risk, which arises if there is a mismatch between asset and liability maturities. This particularly affects life insurance business. Besides this, the market risk and its composition are influenced to a considerable extent by the liabilities and their allocation to the various investment classes.
| Asset allocation in € thousand |
31/12/2015 | 31/12/2014 |
|---|---|---|
| Fixed income securities | 19,557,462 | 19,281,012 |
| Equities | 374,323 | 280,652 |
| Alternative investments | 38,263 | 41,087 |
| Equity investments | 813,192 | 830,185 |
| Loans | 59,136 | 119,946 |
| Real estate | 1,623,425 | 1,702,738 |
| Liquid funds | 1,829,284 | 1,359,072 |
| Total | 24,295,085 | 23,614,692 |
Interest rate risk arises on all statement of financial position asset and liability items the value of which fluctuates as a result of changes in risk-free yield curves or associated volatility. Given the investment structure and the high proportion of interest-bearing securities in the asset allocation, interest rate risk forms an important part of market risk. However, a structural reduction to the interest rate risk has been achieved in recent years as a result of the ALM-based investment strategy implemented in 2012.
The following table shows the maturity structure of interest-bearing securities and bonds reclassified as loans. The average coupon on interest-bearing securities is 3.0 per cent .
| Exposure by term in € thousand |
31/12/2015 | 31/12/2014 |
|---|---|---|
| Up to 1 year | 1,095,058 | 1,315,407 |
| More than 1 year up to 3 years | 3,282,360 | 2,874,526 |
| More than 3 years up to 5 years | 2,845,054 | 2,681,542 |
| More than 5 years up to 7 years | 3,472,911 | 3,388,525 |
| More than 7 years up to 10 years | 2,954,254 | 3,209,569 |
| More than 10 years up to 15 years | 2,436,602 | 2,553,315 |
| More than 15 years | 3,273,532 | 3,073,726 |
| Total | 19,359,770 | 19,096,609 |
In comparison with this, the next table shows the actuarial provision before reinsurance in health and life insurance and the gross provision for unsettled insurance claims in non-life insurance, broken down into annual brackets. In health and life insurance the breakdown takes place using expected cash flows from the ALM process.
| IFRS reserve by expected maturity date in € thousand |
31/12/2015 | 31/12/2014 |
|---|---|---|
| Up to 1 year | 1,276,255 | 2,463,429 |
| More than 1 year up to 3 years | 3,071,023 | 3,311,039 |
| More than 3 years up to 5 years | 1,914,474 | 1,931,252 |
| More than 5 years up to 7 years | 1,414,351 | 1,339,805 |
| More than 7 years up to 10 years | 2,039,901 | 1,829,623 |
| More than 10 years up to 15 years | 2,780,886 | 2,459,163 |
| More than 15 years | 6,497,525 | 5,666,888 |
| Total | 18,994,414 | 19,001,199 |
Due to the dominant proportion of interest-bearing securities in the asset allocation, the spread risk represents the largest share of the ECR market risk. Spread risk refers to the risk of changes in the price of statement of financial position asset or liability items as a consequence of changes in credit risk premiums or associated volatility. In the case of interest-bearing securities, this risk increases under the Solvency II standard formula depending on rating and duration. When investing in securities, UNIQA chooses securities with a wide variety of ratings, taking into consideration the potential risks and returns. At the same time, the book values represent the maximum creditworthiness and default risk on the assets side.
The credit quality of financial instruments that are neither overdue or impaired is presented below with reference to external ratings (if these are available) or to empirical values on default ratios for the relevant business partners.
| Exposure by rating 31/12/2015 in € thousand AAA 4,801,934 |
31/12/2014 4,964,965 |
|---|---|
| AA 4,190,494 |
3,986,746 |
| A 3,816,635 |
4,130,316 |
| BBB 4,186,371 |
3,648,213 |
| BB 1,219,575 |
1,394,028 |
| B 687,580 |
363,890 |
| <=CCC 102,039 |
158,390 |
| Not rated 355,142 |
450,061 |
| Total 19,359,770 |
19,096,609 |
In line with their significant role in asset allocation, land and buildings and the risk associated with a fall in the price of land and buildings are responsible for the second largest share of ECR market risk.
Equity risk arises from movements in the value of equities and similar investments as a result of fluctuations in international stock markets. The effective equity weighting is controlled by hedging with the use of derivatives. UNIQA's equity risk resulting from investments in shares and equity has been reduced as part of the process in recent years to implement an ALM-based investment strategy, and now only plays a subordinate role in the composition of the ECR market risk.
Currency risk is caused by fluctuations in exchange rates and associated volatility. Given the international nature of the insurance business, UNIQA invests in securities denominated in different currencies, thus following the principle of matching liabilities with assets in the same currency to cover liabilities created by the products. Despite the use of derivative financial instruments for hedging purposes, the currency risks of the investments do not always match the currency risks in the technical provisions and liabilities. The greatest component of this risk arises from investments in US dollars. The following table shows a breakdown of assets and liabilities by currency.
| Currency risk | 31/12/2015 | |||
|---|---|---|---|---|
| in € thousand | Assets Provisions and liabilities | |||
| EUR | 2,919,014 | 27,369,980 | ||
| USD | 807,472 | 48,595 | ||
| CZK | 518,265 | 433,386 | ||
| HUF | 399,072 | 493,462 | ||
| PLN | 927,607 | 816,640 | ||
| RON | 258,289 | 189,655 | ||
| Other | 977,508 | 551,798 | ||
| Total | 33,078,355 | 29,903,515 | ||
| Currency risk | 31/12/2014 | |
|---|---|---|
| in € thousand | Assets Provisions and liabilities | |
| EUR | 29,492,947 | 27,734,138 |
| USD | 960,329 | 50,569 |
| CZK | 450,157 | 411,716 |
| HUF | 463,492 | 434,998 |
| PLN | 906,474 | 804,231 |
| RON | 183,090 | 121,490 |
| Other | 581,380 | 378,291 |
| Total | 33,037,868 | 29,935,434 |
UNIQA has payment obligations that it must meet on a daily basis. It therefore carries out detailed liquidity planning covering a period of one year. A minimum liquidity balance is specified by the Management Board and is made available as a cash reserve on a day-to-day basis.
In addition, a majority of the securities portfolio is listed in liquid markets and can be sold quickly and without significant markdowns if cash is required. When investing in interestbearing securities and choosing the contractual maturities, UNIQA takes into account the existing contractual maturities in the business segment concerned.
Regarding private equity investments, there are still remaining payment obligations in the amount of €1.1 million .
Market and credit risk management is integrated as a fixed part of the structured investment process. Key figures used to measure, monitor and actively manage investment risk include, in particular, data from stress tests and sensitivity analyses in addition to figures from the established market and credit risk models (MCEV, SCR, ECR, etc.).
The following table shows the most important market risks in the form of key sensitivity figures. These key figures represent a snapshot on the reporting date and are only intended as an indication of future changes in fair value. Depending on the measurement principle to be applied, any future losses from the valuation at fair value may result in different fluctuations in the net profit for the year or in other comprehensive income. 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 countermeasures taken in the various market scenarios.
The sensitivities are determined by simulating each scenario for each individual item, with all other parameters remaining constant in each case.
| Sensitivities | ||||
|---|---|---|---|---|
| Interest rate risk | 31/12/2015 | 31/12/2014 | ||
| in € thousand | + 100 basis points –100 basis points + 100 basis points –100 basis points | |||
| High grade | –988,515 | 869,960 | –960,306 | 813,246 |
| Corporates | –154,464 | 83,429 | –159,784 | 86,179 |
| Other | –7,595 | 2,819 | –26,440 | 16,721 |
| Total | –1,150,574 | 956,209 | –1,146,530 | 916,146 |
| Spread risk: | 31/12/2015 | 31/12/2014 | ||
| in € thousand | + | – | + | – |
| AAA (0 basis points) | 0 | 0 | 0 | 0 |
| AA (25 basis points) | –89,821 | 93,118 | –90,756 | 89,770 |
| A (50 basis points) | –94,086 | 98,434 | –106,631 | 87,171 |
| BBB (75 basis points) | –174,260 | 189,813 | –152,255 | 116,279 |
| BB (100 basis points) | –44,242 | 47,749 | –40,909 | 19,747 |
| B (125 basis points) | –76,073 | 108,363 | –11,567 | 7,480 |
| <=CCC (150 basis points) | –14,780 | 22,192 | –28,209 | 8,239 |
| NR (100 basis points) | –15,278 | 18,948 | –14,539 | 11,371 |
| Total | –508,539 | 578,617 | –444,866 | 340,058 |
| Equity risk | 31/12/2015 | 31/12/2014 | ||
| in € thousand | 30 % | –30 % | 30 % | –30 % |
| Total | 419,822 | –234,195 | 206,603 | –134,989 |
| Currency risk | 31/12/2015 | 31/12/2014 | ||
| in € thousand | 10 % | –10 % | 10 % | –10 % |
| USD | 47,582 | –42,443 | 30,688 | –28,308 |
| HUF | 21,702 | –21,702 | 19,016 | –19,042 |
| RON | 15,257 | –15,257 | 14,314 | –14,337 |
| CZK | 35,668 | –35,668 | 30,455 | –30,512 |
| PLN | 42,658 | –42,658 | 40,800 | –40,877 |
| Other | 50,161 | –49,057 | 39,624 | –37,819 |
| Total | 213,027 | –206,784 | 174,897 | –170,896 |
| 2015 in € thousand |
Interest rate shock (+ 100 bp) |
Interest rate shock (-100 bp) |
Spread shock (increase in spread) |
Spread shock (decrease in spread) |
Equity shock (+ 30 %) |
Equity shock (-30 %) |
Currency shock* (+ 10 %) |
Currency shock* (-10 %) |
|---|---|---|---|---|---|---|---|---|
| Income statement |
608 | 3,446 | –11,604 | 13,770 | 211,893 | –83,817 | 181,010 | –174,766 |
| Equity | –1,137,239 | 942,548 | –486,372 | 553,414 | 207,929 | –150,378 | 8,855 | –8,855 |
| Total | –1,136,631 | 945,994 | –497,976 | 567,185 | 419,822 | –234,195 | 189,865 | –183,622 |
*Changes in market value without accounting impact included risk reclassified bonds in the case of interest rate and spread risk and properties in the case of currency risk
| 2014 in € thousand |
Interest rate shock (+ 100 bp) |
Interest rate shock (-100 bp) |
Spread shock (increase in spread) |
Spread shock (decrease in spread) |
Equity shock (+ 30 %) |
Equity shock (-30 %) |
Currency shock* (+ 10 %) |
Currency shock* (-10 %) |
|---|---|---|---|---|---|---|---|---|
| Income statement |
12,303 | –3,801 | 247 | 6,451 | 120,821 | –134,989 | 150,908 | –146,889 |
| Equity | –1,158,833 | 919,947 | –445,113 | 333,607 | 85,781 | 0 | 7,481 | –7,496 |
| Total | –1,146,530 | 916,146 | –444,866 | 340,058 | 206,603 | –134,989 | 158,390 | –154,385 |
* Currency shock from land and buildings amounting to € 16.5 million (+ 10 %) and € 16.5 million (-10 %) will not be incurred either on the income statement or in equity because real estate is recognised at book value, the carrying amount and shocks on a fair value basis.
In life insurance the interest rate assumptions are the crucial influencing factor on the liability adequacy test and the deferred acquisition costs. The impact of the implied new funds assumption (incl. reinvestment) is therefore stated below.
If new funds are assumed with a +100 bp increase, then the resulting net effect (after accounting for the deferred profit participation) amounts to +€9.0 million. A –100 bp reduction in this assumption results in net effect of –€21.3 million. The effects described relate to the changes in the deferred acquisition costs along with the impact on the liability adequacy test. The results were determined using the traditional companies in Italy and Austria which make up the majority of the actuarial provision in the Group.
The provision for unsettled insurance claims is formed based on reported claims and applying accepted statistical methods. One crucial assumption here is that the pattern of claims observed from the past can be sensibly extrapolated for the future. Additional adjustments need to be made in cases where this assumption is not possible.
The calculation of the claim provisions is associated with uncertainty based on the time required to process claims. In addition to the normal chance risk, there are also other factors that may influence the future processing of the claims that have already occurred.
The partial model in property/casualty insurance is a suitable instrument for quantifying the volatility involved in processing. Following analysis of these model results and after consulting experts it was determined that a deviation of 5 per cent from the basic provision determined may represent a realistic scenario. On basis of the current provision for claims outstanding of €2,307 million (excluding additional provisions such as provisions for claims settlement) in the Group on gross basis, this would mean an increase in claims incurred by €115.3 million.
Health insurance operated on the principles of life insurance is now also affected by the period of low interest rates, as the tariffs that are currently covered primarily result in discount rates of 3 per cent, but also in some cases of 2.5 per cent and in future even of 1.75 per cent. Since the average discount rate is still relatively high, the capital earnings may not be enough for the required addition to the coverage capital. A reduction in the capital earnings by 100 bp (based on investment results 2015) would reduce the profit from ordinary activities by €33 million.
Market and credit risks have different weightings and various degrees of seriousness, depending on the investment structure. The effects of the financial risks on the value of the investments also influence the level of technical liabilities. Thus, there is a dependence – particularly in life insurance – 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 the asset liability management (ALM) process. The objective is to achieve a return on capital that is sustainably higher than the updating of the technical liabilities while retaining the greatest possible security. To do this, assets and debts are allocated to different accounting groups. The following table shows the main accounting groups generated by the various product categories.
| Total | 29,638,407 | 29,212,677 |
|---|---|---|
| Short-term property and casualty insurance contracts | 4,825,952 | 4,196,663 |
| Long-term health insurance contracts | 3,174,365 | 3,128,747 |
| Long-term unit-linked and index-linked life insurance contracts | 5,226,748 | 5,386,650 |
| Long-term life insurance contracts with guaranteed interest and profit sharing | 16,411,343 | 16,500,617 |
| Investments in € thousand |
31/12/2015 | 31/12/2014 |
These values relate to the following statement of financial position items:
| Technical provisions and liabilities (retained) in € thousand |
31/12/2015 | 31/12/2014 |
|---|---|---|
| Long-term life insurance contracts with guaranteed interest and profit sharing | 15,251,481 | 15,607,593 |
| Long-term unit-linked and index-linked life insurance contracts | 5,175,437 | 5,306,000 |
| Long-term health insurance contracts | 2,779,801 | 2,677,684 |
| Short-term property and casualty insurance contracts | 2,869,625 | 2,757,870 |
| Total | 26,076,345 | 26,349,146 |
These values relate to the following statement of financial position items:
• Technical provisions
Due to the particular importance of the ALM process in life insurance, the focus below is placed on this segment. For practical reasons, it is not possible to fully achieve the objective of matching cash flows for assets and liabilities. The duration of the assets in life insurance is 6.7 years, while for liabilities it is longer. This is referred to as a duration gap. It gives rise to interest rate risk and this risk is backed by capital in the ECR model. The discount rate that may be used in the costing when new business is written is based in most UNIQA companies on a maximum discount rate imposed by the relevant local supervisory authority. In all those countries in which the maximum permissible discount rate is not imposed in this way, appropriate prudent, market-based assumptions are made by the actuaries responsible for the calculation. In the core market of Austria, the maximum discount rate is currently 1.0 per cent per year. However, the portfolio also includes older contracts with different discount rates. In the relevant markets of the UNIQA Group, these rates amount to as much as 4.0 per cent per year.
The following table provides an indication of the average discount rates for each region.
| Average technical discount rates, core business by region and currency | EUR | USD | Local currency |
|---|---|---|---|
| in per cent | |||
| Austria (AT) | 2.5 | - | - |
| Western Europe (WE) | 1.8 | - | - |
| Central Europe (CE) | 3.6 | - | 3.3 |
| Eastern Europe (EE) | 3.5 | 4.0 | 3.6 |
| Southeastern Europe (SEE) | 3.0 | - | 2.2 |
| Russia (RU) | 3.0 | 3.0 | 4.0 |
Definition of regions:
AT - Austria
WE - Italy, Liechtenstein CE - Poland, Hungary, Czech Republic, Slovakia
SEE - Bulgaria, Serbia, Bosnia and Herzegovina, Croatia, Albania, Montenegro, Kosovo, Macedonia
EE - Romania, Ukraine
RU - Russia
As these discount rates are guaranteed by the insurance company, the financial risk lies in not being able to generate these returns. Because traditional life insurance business predominantly invests in interest-bearing securities (bonds, loans, etc.), the unpredictability of long-term interest rate trends is the most significant financial risk for a life insurance company. Investment and reinvestment risk arises from the fact that premiums received in the future must be invested to achieve the rate of return guaranteed when a policy is written. However, it is entirely possible that no appropriate securities will be available at the time the premium is received. In the same way, future income must be reinvested to achieve a return equivalent to at least the original discount rate. For this reason, UNIQA has already decided to offer products to its key markets that are only based on a low or zero discount rate.
The actuarial risk in the non-life segment is broken down into the three risk categories of premium, reserve and catastrophe risk.
Premium risk is defined as the risk that future benefits and expenses in connection with insurance operations will exceed the premiums collected for the insurance concerned. Such a loss may also be caused in insurance operations by exceptionally significant, but rare loss events, known as major claims. Appropriate distribution assumptions are made to ensure that these events are also adequately incorporated into risk modelling.
Natural disasters represent a further threat from events that are infrequent but that nevertheless cause substantial losses. This risk includes financial losses caused by natural hazards, such as floods, storms, hail or earthquakes. In contrast to major individual claims, insurance companies in this case refer to cumulative losses.
Reserve risk refers to the risk that technical provisions recognised for claims that have already occurred will turn out to be inadequate. The loss in this case is referred to as run-off loss. The claims reserve is calculated using actuarial methods. External factors, such as changes in the amount or frequency of claims, legal decisions, repair and/or handling costs, can lead to differences compared with estimates.
To counter and actively manage these risks, UNIQA runs a number of processes integrated into its insurance operations. For example, Group guidelines specify that new products may only be launched if they satisfy certain profitability criteria. Major claims and losses from natural disasters are appropriately managed by means of special risk management in the underwriting process (primarily in corporate activities) and by the provision of suitable reinsurance capacity.
In connection with claim reserves, guidelines also specify the procedures to be followed by local units when recognising such reserves in accordance with IFRS. A quarterly monitoring system and an internal validation process safeguard the quality of the reserves recognised in the whole of the Group.
An essential element in risk assessment and further risk management is the use of the nonlife partial model. This risk model uses stochastic simulations to quantify the risk capital requirement for each risk class at both Company and Group levels. The model also produces further key figures that are then used as part of the risk- and value-based management of the insurance business.
The risk of an individual insurance contract lies in the occurrence of the insured event. The occurrence is considered random and therefore unpredictable. Various risks exist in life insurance, particularly in traditional life insurance. The insurance company takes on this risk for a corresponding premium. When calculating the premium, the actuary refers to the following carefully selected calculation bases:
Carefully selecting the calculation bases gives rise to well-planned 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.
| Long-term life insurance contracts with guaranteed interest and profit sharing in € thousand |
31/12/2015 | 31/12/2014 |
|---|---|---|
| Austria (AT) | 11,147,754 | 12,039,128 |
| Western Europe (WE) | 3,197,628 | 2,719,121 |
| Central Europe (CE) | 299,162 | 296,801 |
| Eastern Europe (EE) | 26,802 | 26,320 |
| Southeastern Europe (SEE) | 492,209 | 458,655 |
| Russia (RU) | 111,734 | 88,595 |
| 15,275,289 | 15,628,619 | |
| Long-term unit-linked and index-linked life insurance contracts in € thousand |
31/12/2015 | 31/12/2014 |
| Austria (AT) | 4,310,278 | 4,458,977 |
| Western Europe (WE) | 436,702 | 419,192 |
| Central Europe (CE) | 425,652 | 425,899 |
| Eastern Europe (EE) | 0 | 0 |
| Southeastern Europe (SEE) | 2,806 | 1,932 |
| Russia (RU) | 0 | 0 |
| 5,175,437 | 5,306,000 |
UNIQA's portfolio consists primarily of long-term insurance contracts. Short-term assurances payable at death play a minor role.
The table below shows the distribution of the premium portfolio by type and region.
| Premium portfolio in % | Endowment assurance | Life insurance | Pension insurance | |||
|---|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |
| Austria (AT) | 46.5 | 46.3 | 9.0 | 9.0 | 15,1 | 14.1 |
| Western Europe (WE) | 69.7 | 72.2 | 7.9 | 8.0 | 15.0 | 16.3 |
| Central Europe (CE) | 17.6 | 18.2 | 2.6 | 2.8 | 0.2 | 0.2 |
| Eastern Europe (EE) | 54.3 | 53.8 | 5.5 | 9.1 | 0.0 | 0.0 |
| Southeastern Europe (SEE) | 82.2 | 85.4 | 5.2 | 5.1 | 0.5 | 0.6 |
| Russia (RU) | 96.5 | 94.4 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total | 48.5 | 49.2 | 7.7 | 7.7 | 12.2 | 11.3 |
| Premium portfolio in % | Unit-linked and index-linked | Residual debt insurance | Other | |||
|---|---|---|---|---|---|---|
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |
| Austria (AT) | 28.3 | 29.6 | 0.0 | 0.0 | 1,0 | 1.1 |
| Western Europe (WE) | 7.4 | 3.5 | 0.0 | 0.0 | 0.0 | 0.0 |
| Central Europe (CE) | 57.6 | 56.1 | 8.6 | 10.9 | 13.4 | 11.8 |
| Eastern Europe (EE) | 0.0 | 0.0 | 39.5 | 30.4 | 0.6 | 6.7 |
| Southeastern Europe (SEE) | 2.0 | 1.4 | 0.7 | 0.8 | 9.4 | 6.7 |
| Russia (RU) | 0.0 | 0.0 | 3.5 | 5.6 | 0.0 | 0.0 |
| Total | 27.5 | 27.5 | 1.4 | 1.9 | 2.7 | 2.4 |
Definition of regions:
AT - Austria
WE - Italy, Liechtenstein
CEE - Poland, Hungary, Czech Republic, Slovakia
EE - Romania, Ukraine SEE - Bulgaria, Serbia, Bosnia and Herzegovina, Croatia, Albania, Montenegro*, Kosovo Macedonia
RU - Russia
* Not included in 2014
With respect to assurance involving death risk, premiums are calculated based on an accounting table, implicitly allowing for the safety loading of risk premiums.
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 improvement of mortality rates means that the real mortality probabilities are consistently smaller than the values shown in the accounting table. Analyses of mortality data carried out at Group level show that, historically, the level of premiums has been sufficient to cover the death benefits.
Due to the large number of lives insured by UNIQA in the Austrian market, the mortality trends are of particular importance here. According to the 2010/2012 mortality table published by Statistics Austria, life expectancy has increased and is over 80 years for new-borns for the first time.
Life expectancy at birth
| Mortality table | Men | Women | |
|---|---|---|---|
| 1970 – 72 | 66.6 | 73.7 | |
| 1980 – 82 | 69.2 | 76.4 | |
| 1990 – 92 | 72.5 | 79.0 | |
| 2000 – 02 | 75.5 | 81.5 | |
| 2010 – 12 | 78.0 | 83.3 |
The reduction in the probability of dying at any given age is causing a huge amount of uncertainty in the annuity business. Improvements in mortality rates as a result of medical progress and changed lifestyles are 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. In the UNIQA Group, longevity risk relates mainly to the Austrian life insurance companies because very few pension products are sold in the regions covered by the international business.
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.
UNIQA's portfolios contain large quantities of risk insurance policies with a premium adjustment clause, particularly in Austria. This allows the insurer to raise the premiums in case of an (unlikely) 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 right to choose 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. from the insurer's point of view 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.
Besides the risks discussed above, the cost risk must also be mentioned: 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 (92.4 per cent is domestic and 7.6 per cent is 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 "similar to 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 calculation principles.
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 coverage ("aging 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 discount rate for this actuarial reserve is 3.0 or 2.5 per cent. If the discount rate of 3.0 per cent is not achieved by the investment, there are safety margins in the premiums that can be used to cover the insufficient investment results. Because a guideline was published by the FMA in October 2013 about the discount rate in health insurance, starting in January 2014 new business has been calculated with a discount rate of 2.5 per cent. There is now a further letter from the FMA providing that the tariffs for a new sale should include a discount rate of 1.75 per cent from 1 May 2016 at the latest. This results in a further improvement of the risk in cases where the investment results are insufficient. The average discount rate was approximately 2.95 per cent as at 31 December 2015.
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 when calculating the premiums at the end of the second quarter of 2007. This stipulated that the costs of birth and pregnancy be distributed across both sexes. No significant risk to profit has been identified here.
In the meantime, a European Court of Justice (ECJ) decision regarding insurance policies brought about a new situation as of 21 December 2012: from this point on, only completely identical premiums are allowed for men and women, excluding considerations such as age and individual pre-existing conditions. Experience from 2013 to 2015 has shown that this has not resulted in any negative changes to the portfolio structure of new business.
The risk of the health insurance business outside Austria is currently dominated primarily by UNIQA Assicurazioni in Milan (approx. €33.5 million in annual premiums). This company presently has stable portfolios, meaning that insurance risk scarcely changes. For tariffs with outdated calculation principles, whose holdings are aging, the insured will be converted in the coming years to tariffs with a modern calculation basis. Because this affects tariffs that are not life-long, the conversion problem is less significant than it is for life-long tariffs.
The remaining premiums (approx. €43.4 million) are divided among multiple companies and are of only minor importance there. Only in Switzerland (Geneva) is health insurance the primary business (approx. €10.3 million); however, the Swiss Solvency Test showed there was sufficient risk capital.
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.
Operational risk includes losses that are caused by insufficient or failed internal processes, as well as losses caused by systems, human resources or external events.
Operational risk includes legal risk, but not reputation or strategic risk. Legal risk is the risk of uncertainty due to lawsuits or uncertainty in the applicability or interpretation of contracts, laws or other legal requirements.
UNIQA's risk management process also defined the risk process for operational risks in terms of methodology, workflow and responsibilities. The risk manager is responsible for compliance in all subsidiaries.
A distinctive feature of operational risk is that it can surface in all processes and departments. This is why operational risk is identified and evaluated in every operational company at a very broad level within UNIQA. Risks are identified with the help of a standardised risk catalogue that is regularly checked for completeness. Scenarios are defined for evaluating these risks; these scenarios are meant to convey the likelihood of occurrence and the possible amount of the claim. The results are then presented by the risk manager in the form of a summarised risk report.
This process is usually conducted twice a year.
According to international standards, the UNIQA Group – as a financial service provider – forms part of the critical infrastructure of key importance to the national community. If this infrastructure were to fail or become impaired, it would cause considerable disruption to public safety and security or lead to other drastic consequences.
As a rule, emergencies, crises and disasters are unexpected events for which it is impossible to plan. However, systems and processes can be put in place to deal with such events. The systems and processes must then be treated as a special responsibility of management and must be dealt with professionally, efficiently and as quickly as possible.
UNIQA has implemented a Business Continuity Management system (BCM) covering the issues of crisis prevention, crisis management and business recovery (including business continuity plans). The main objectives are as follows:
• to prevent personal injury to, or death of, employees or third parties,
The UNIQA BCM model is based on international rules and standards and will continue to be implemented in 2016. The implementation of a BCM system forms part of UNIQA's response to the requirements imposed by relevant authorities (solvency, critical infrastructure) and the market (calls for tender). This holistic approach to a risk management system not only reduces potential losses following an event but also enhances the quality of day-to-day operations.
Reputational risk describes the risk of loss that arises due to possible damage to the Company's reputation, a deterioration in prestige, or a negative overall impression due to negative perception by customers, business partners, shareholders or supervisory agencies.
Reputational risks that occur in the course of core processes such as claims processing or advising and service quality are identified, evaluated and managed as operational risks in our subsidiaries.
The most important reputational risks are presented, like operational risks, in an aggregated form in the risk report.
Group risk management then analyses whether the risk observed in the Group or in another unit may occur, and whether the danger of "contagion" within the Group is possible.
Strategic risk describes the risk that results from management decisions or insufficient implementation of management decisions that may influence current/future income or solvency. This includes the risk that arises from management decisions that are inadequate because they ignore a changed business environment.
Like operational and reputational risks, strategic risks are evaluated twice a year. Furthermore, important decisions in various committees, such as the Risk Committee, are discussed with the Management Board. As outlined in the explanation of the risk management process, the management receives a monthly update regarding the most significant risks in the form of a heat map.
The Management Board of the holding company determines, directly and indirectly, the strategic contents of reinsurance policy with its decisions regarding risk and capital policy. The following principles can be derived from external reinsurance to inform purchasing.
Reinsurance structures sustainably support the optimisation of required risk capital and management of the use of this risk capital. Major significance accrues to the maximum use of diversification effects. Decisions regarding all reinsurance business ceded are taken with special consideration of their effects on required risk capital. Continuous analysis of reinsurance purchasing for efficiency characteristics is an essential component of internal risk management processes.
UNIQA Re AG in Zurich is responsible for the operational implementation of these tasks. It is responsible for and guarantees the implementation of reinsurance policies issued by the Management Board of the holding company. It is responsible for central guideline expertise on all activities, organisation and questions regarding internal and external reinsurance relationships. UNIQA Re AG is available to all Group companies as the risk carrier for their reinsurance needs. Naturally, internal risk transfers are subject to the same requirements and valuation processes in terms of efficiency measurement, risk capital optimisation and diversification as retrocessions to external reinsurance partners.
The assessment of the exposure of the portfolios assumed by the Group companies is of central importance. Periodic risk assessments have been performed for years in the interest of a value-based management of the capital commitment. Extensive data are used to assess risk capital requirements for affected units. Reinsurance programmes are constantly structured in a goal-oriented manner in accordance with their influence on the assignor's risk situation.
For the property and casualty insurer, promises of performance for protection against losses resulting from natural disasters frequently represent the greatest stress on risk capital by far due to the volatile nature of such claims and the conceivable amount of catastrophic damages. UNIQA has set up a specialised unit within UNIQA Re AG in order to deal with this problem. Exposure is constantly monitored and evaluated at the country and Group levels in cooperation with internal and external authorities. UNIQA substantially eases the pressure on its risk capital through the targeted utilisation of all applicable diversification effects and the launching of a highly efficient retrocession programme.
UNIQA Re AG has assumed almost all of the UNIQA Group's required reinsurance business ceded in the reporting period. Only in the life insurance line was a portion of the necessary cessions given directly to external reinsurance partners. The Group's retrocessions in the nonlife insurance line were done on a non-proportional basis. The Group assumes reasonable deductibles in the affected programmes based on risk and value-based approaches.
| Operating segments | UNIQA Austria | Raiffeisen Insurance | UNIQA International | ||||
|---|---|---|---|---|---|---|---|
| In € thousand | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | |
| Premiums written (gross), including savings portions from unit-linked and index-linked life insurance |
2,807,701 | 2,773,542 | 1,075,844 | 905,290 | 2,416,843 | 2,353,062 | |
| Premiums earned (net) including savings portions from the unit-linked and index-linked life insurance |
2,229,856 | 2,137,021 | 965,061 | 793,957 | 1,892,310 | 1,822,239 | |
| Savings portions in unit-linked and index-linked life insurance (gross) |
135,109 | 152,378 | 135,109 | 152,378 | 215,214 | 239,898 | |
| Savings portions in unit-linked and index-linked life insurance (net) |
127,051 | 143,121 | 127,051 | 143,121 | 215,214 | 239,898 | |
| Premiums written (gross) | 2,672,593 | 2,621,163 | 940,736 | 752,912 | 2,201,629 | 2,113,164 | |
| Premiums earned (net) | 2,102,805 | 1,993,900 | 838,010 | 650,837 | 1,677,097 | 1,582,342 | |
| Premiums earned (net) - intragroup | – 546,003 | – 587,892 | – 96,383 | – 91,943 | – 410,764 | – 446,736 | |
| Premiums earned (net) - non intragroup | 2,648,808 | 2,581,791 | 934,392 | 742,780 | 2,087,860 | 2,029,078 | |
| Technical interest income | 209,292 | 229,055 | 193,805 | 219,626 | 115,133 | 96,615 | |
| Other insurance income | 1,900 | 3,137 | 997 | 917 | 21,340 | 25,931 | |
| Insurance benefits | – 1,729,353 | – 1,637,225 | – 829,768 | – 685,206 | – 1,329,341 | – 1,253,637 | |
| Operating expenses | – 390,673 | – 407,088 | – 135,526 | – 112,121 | – 427,476 | – 434,847 | |
| Other technical expenses | – 23,295 | – 37,881 | – 11,560 | – 14,841 | – 47,022 | – 50,823 | |
| Technical result | 170,677 | 143,897 | 55,958 | 59,213 | 9,731 | –34,419 | |
| Net investment income | 343,170 | 376,128 | 254,738 | 277,712 | 195,321 | 174,330 | |
| Other income | 7,304 | 7,513 | 201 | 1,736 | 19,012 | 26,774 | |
| Reclassification of technical interest income | – 209,292 | – 229,055 | – 193,805 | – 219,626 | – 115,133 | – 96,615 | |
| Other operating expenses | – 11,781 | – 12,049 | – 503 | – 123 | – 34,809 | – 40,688 | |
| Non-technical result | 129,400 | 142,537 | 60,631 | 59,699 | 64,391 | 63,800 | |
| Operating profit/(loss) | 300,077 | 286,434 | 116,589 | 118,911 | 74,122 | 29,381 | |
| Amortisation of goodwill and impairment losses | – 918 | – 1,875 | – 624 | – 189 | – 19,476 | – 30,228 | |
| Finance costs | – 10,627 | – 10,627 | – 10,524 | – 10,094 | – 168 | – 317 | |
| Earnings before taxes | 288,532 | 273,932 | 105,441 | 108,628 | 54,477 | –1,164 | |
| Combined ratio | |||||||
| (property and casualty insurance, after reinsurance) | 93.9 % | 91.8 % | 82.7 % | 88.1 % | 99.1 % | 102.3 % | |
| Cost ratio (after reinsurance) | 17.5 % | 19.0 % | 14.0 % | 14.1 % | 22.6 % | 23.9 % | |
| UNIQA Austria | Raiffeisen Insurance | UNIQA International | |||||
|---|---|---|---|---|---|---|---|
| In € thousand | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | |
| Goodwill | |||||||
| Impairments | 0 | 0 | 0 | 0 | – 13,081 | – 25,000 | |
| Investments | |||||||
| Impairments | – 29,196 | – 20,665 | – 9,079 | – 37,458 | – 510 | – 193 | |
| Reversal of impairment losses | 14,867 | 9,066 | 1,482 | 11,662 | 0 | 0 |
| Reinsurance | Group functions and consolidation |
Group | |||
|---|---|---|---|---|---|
| 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 |
| 1,112,080 | 1,189,327 | – 1,087,337 | – 1,156,866 | 6,325,132 | 6,064,355 |
| 1,014,440 | 1,080,886 | 1,155 | 4,932 | 6,102,823 | 5,839,035 |
| 0 | 0 | 0 | 0 | 485,431 | 544,654 |
| 0 | 0 | 0 | 0 | 469,316 | 526,139 |
| 1,112,080 | 1,189,327 | – 1,087,337 | – 1,156,866 | 5,839,701 | 5,519,700 |
| 1,014,440 | 1,080,886 | 1,155 | 4,932 | 5,633,507 | 5,312,896 |
| 1,051,994 | 1,121,639 | 1,155 | 4,932 | 0 | 0 |
| – 37,554 | – 40,753 | 0 | 0 | 5,633,507 | 5,312,896 |
| 0 | 0 | 209 | 15,088 | 518,439 | 560,384 |
| 631 | 1,115 | 5,801 | 3,392 | 30,669 | 34,492 |
| – 720,148 | – 800,808 | 1,043 | – 6,785 | – 4,607,567 | – 4,383,662 |
| – 315,686 | – 335,108 | – 29,334 | – 9,943 | – 1,298,695 | – 1,299,106 |
| – 9,060 | – 12,193 | 14,448 | 18,440 | – 76,489 | – 97,298 |
| –29,823 | –66,109 | –6,678 | 25,124 | 199,864 | 127,706 |
| 27,652 | 31,325 | 10,264 | 28,657 | 831,145 | 888,151 |
| 2,240 | 5,270 | 13,767 | 21,135 | 42,525 | 62,428 |
| 0 | 0 | – 209 | – 15,088 | – 518,439 | – 560,384 |
| – 2,204 | – 975 | – 11,695 | – 16,499 | – 60,993 | – 70,334 |
| 27,687 | 35,621 | 12,128 | 18,204 | 294,238 | 319,860 |
| –2,136 | –30,488 | 5,450 | 43,328 | 494,102 | 447,566 |
| 0 | 0 | 0 | 0 | – 21,018 | – 32,292 |
| 0 | 0 | – 28,923 | – 16,304 | – 50,243 | – 37,343 |
| –2,136 | –30,488 | –23,474 | 27,024 | 422,840 | 377,932 |
| 101.7 % | 104.8 % | 97.8 % | 99.6 % | ||
| 31.1 % | 31.0 % | 21.3 % | 22.2 % |
| Group | Group functions and consolidation |
Reinsurance | ||||
|---|---|---|---|---|---|---|
| 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | |
| – 25,000 | – 13,081 | 0 | 0 | 0 | 0 | |
| – 89,944 | – 59,837 | – 31,628 | – 21,052 | 0 | 0 | |
| 20,867 | 16,616 | 139 | 268 | 0 | 0 | |
| Property and casualty insurance | UNIQA Austria | Raiffeisen Insurance | UNIQA International | ||||
|---|---|---|---|---|---|---|---|
| In € thousand | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | |
| Premiums written (gross) | 1,380,604 | 1,362,614 | 160,149 | 153,154 | 1,085,832 | 1,084,898 | |
| Premiums earned (net) | 826,865 | 753,037 | 83,280 | 79,775 | 595,753 | 588,155 | |
| Technical interest income | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other insurance income | 1,173 | 2,278 | 177 | 139 | 16,369 | 19,818 | |
| Insurance benefits | – 577,558 | – 516,544 | – 55,856 | – 57,140 | – 362,664 | – 372,714 | |
| Operating expenses | – 199,137 | – 174,838 | – 13,014 | – 13,129 | – 227,734 | – 228,898 | |
| Other technical expenses | – 9,727 | – 16,556 | – 475 | – 992 | – 34,766 | – 34,283 | |
| Technical result | 41,616 | 47,378 | 14,112 | 8,654 | –13,040 | –27,921 | |
| Net investment income | 43,880 | 59,976 | 5,292 | 4,705 | 52,135 | 38,178 | |
| Other income | 6,520 | 4,886 | 1 | 827 | 11,373 | 13,385 | |
| Reclassification of technical interest income | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other operating expenses | – 10,994 | – 11,516 | – 472 | – 120 | – 16,702 | – 16,851 | |
| Non-technical result | 39,406 | 53,346 | 4,821 | 5,412 | 46,805 | 34,713 | |
| Operating profit/(loss) | 81,021 | 100,723 | 18,932 | 14,066 | 33,765 | 6,791 | |
| Amortisation of goodwill and impairment losses | 0 | 0 | 0 | 0 | – 15,960 | – 27,847 | |
| Finance costs | 0 | 0 | 0 | 0 | – 168 | – 313 | |
| Earnings before taxes | 81,021 | 100,723 | 18,932 | 14,066 | 17,636 | –21,368 | |
| Health insurance | UNIQA Austria | Raiffeisen Insurance | UNIQA International | ||||
|---|---|---|---|---|---|---|---|
| In € thousand | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | |
| Premiums written (gross) | 921,619 | 887,275 | 0 | 0 | 76,928 | 73,547 | |
| Premiums earned (net) | 921,923 | 886,949 | 0 | 0 | 75,591 | 71,725 | |
| Technical interest income | 73,783 | 70,555 | 0 | 0 | 0 | 0 | |
| Other insurance income | 230 | 118 | 0 | 0 | 1,324 | 1,406 | |
| Insurance benefits | – 762,872 | – 744,309 | 0 | 0 | – 48,840 | – 45,724 | |
| Operating expenses | – 121,753 | – 133,656 | 0 | 0 | – 30,952 | – 30,669 | |
| Other technical expenses | – 2,056 | – 6,685 | 0 | 0 | – 431 | – 371 | |
| Technical result | 109,255 | 72,972 | 0 | 0 | –3,308 | –3,632 | |
| Net investment income | 151,840 | 127,596 | 0 | 0 | 2,965 | 1,714 | |
| Other income | 486 | 193 | 0 | 0 | 1,742 | 2,039 | |
| Reclassification of technical interest income | – 73,783 | – 70,555 | 0 | 0 | 0 | 0 | |
| Other operating expenses | – 301 | – 21 | 0 | 0 | – 1,422 | – 1,380 | |
| Non-technical result | 78,241 | 57,212 | 0 | 0 | 3,285 | 2,374 | |
| Operating profit/(loss) | 187,496 | 130,185 | 0 | 0 | –23 | –1,258 | |
| Amortisation of goodwill and impairment losses | 0 | 0 | 0 | 0 | 0 | 0 | |
| Finance costs | 0 | 0 | 0 | 0 | 0 | 0 | |
| Earnings before taxes | 187,496 | 130,185 | 0 | 0 | –23 | –1,258 |
| Group | Group functions and consolidation |
Reinsurance | |||
|---|---|---|---|---|---|
| 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 |
| 2,620,922 | 2,641,392 | – 1,115,771 | – 1,046,014 | 1,136,028 | 1,060,821 |
| 2,482,938 | 2,500,199 | 6,325 | 2,215 | 1,055,646 | 992,086 |
| 0 | 0 | 0 | 0 | 0 | 0 |
| 26,674 | 24,078 | 3,807 | 6,162 | 631 | 197 |
| – 1,723,584 | – 1,695,197 | – 1,205 | – 2,005 | – 775,981 | – 697,115 |
| – 748,942 | – 750,534 | – 1,529 | 1,199 | – 330,550 | – 311,848 |
| – 47,791 | – 41,332 | 11,716 | 8,848 | – 7,677 | – 5,213 |
| –10,705 | 37,214 | 19,115 | 16,420 | –57,930 | –21,892 |
| 137,573 | 125,552 | 15,182 | 6,824 | 19,532 | 17,421 |
| 35,119 | 30,035 | 10,785 | 9,959 | 5,237 | 2,183 |
| 0 | 0 | 0 | 0 | 0 | 0 |
| – 36,061 | – 42,252 | – 6,649 | – 11,961 | – 926 | – 2,122 |
| 136,631 | 113,335 | 19,318 | 4,822 | 23,843 | 17,482 |
| 125,926 | 150,549 | 38,433 | 21,241 | –34,088 | –4,410 |
| – 27,847 | – 15,960 | 0 | 0 | 0 | 0 |
| – 37,104 | – 50,089 | – 36,791 | – 49,921 | 0 | 0 |
| 60,975 | 84,499 | 1,642 | –28,679 | –34,088 | –4,410 |
| Reinsurance | Group functions and consolidation |
||||
|---|---|---|---|---|---|
| 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 |
| 646 | 1,544 | – 1,288 | – 1,591 | 997,906 | 960,776 |
| 227 | 1,424 | – 643 | – 112 | 997,098 | 959,986 |
| 0 | 0 | 0 | 0 | 73,783 | 70,555 |
| 0 | 0 | 0 | 0 | 1,553 | 1,524 |
| – 338 | – 252 | 10,865 | 9,762 | – 801,184 | – 780,523 |
| – 24 | – 503 | – 11,929 | – 2,231 | – 164,658 | – 167,058 |
| 0 | 0 | – 227 | – 247 | – 2,714 | – 7,302 |
| –134 | 669 | –1,934 | 7,172 | 103,879 | 77,182 |
| 0 | 6 | – 12,014 | – 8,612 | 142,791 | 120,704 |
| 2 | 0 | 3,421 | 1,819 | 5,650 | 4,051 |
| 0 | 0 | 0 | 0 | – 73,783 | – 70,555 |
| 0 | 0 | – 14 | 0 | – 1,736 | – 1,401 |
| 2 | 7 | –8,606 | –6,794 | 72,922 | 52,799 |
| –132 | 676 | –10,540 | 379 | 176,802 | 129,981 |
| 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | – 154 | – 234 | – 154 | – 234 |
| –132 | 676 | –10,694 | 144 | 176,648 | 129,747 |
| Life insurance | UNIQA Austria | Raiffeisen Insurance | UNIQA International | ||||
|---|---|---|---|---|---|---|---|
| In € thousand | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | |
| Premiums written (gross), including savings portions from unit-linked and index-linked life insurance |
505,478 | 523,653 | 915,695 | 752,137 | 1,254,083 | 1,194,618 | |
| Premiums earned (net) including savings portions from the unit-linked and index-linked life insurance |
481,068 | 497,034 | 881,781 | 714,182 | 1,220,966 | 1,162,360 | |
| Savings portions in unit-linked and index-linked life insurance (gross) |
135,109 | 152,378 | 135,109 | 152,378 | 215,214 | 239,898 | |
| Savings portions in unit-linked and index-linked life insurance (net) |
127,051 | 143,121 | 127,051 | 143,121 | 215,214 | 239,898 | |
| Premiums written (gross) | 370,370 | 371,274 | 780,587 | 599,758 | 1,038,869 | 954,720 | |
| Premiums earned (net) | 354,017 | 353,913 | 754,730 | 571,062 | 1,005,752 | 922,462 | |
| Technical interest income | 135,509 | 158,500 | 193,805 | 219,626 | 115,133 | 96,615 | |
| Other insurance income | 498 | 740 | 821 | 778 | 3,646 | 4,706 | |
| Insurance benefits | – 388,923 | – 376,372 | – 773,912 | – 628,066 | – 917,837 | – 835,200 | |
| Operating expenses | – 69,782 | – 98,595 | – 122,511 | – 98,992 | – 168,791 | – 175,280 | |
| Other technical expenses | – 11,513 | – 14,639 | – 11,085 | – 13,849 | – 11,825 | – 16,170 | |
| Technical result | 19,806 | 23,547 | 41,846 | 50,559 | 26,079 | –2,866 | |
| Net investment income | 147,449 | 188,556 | 249,446 | 273,007 | 140,221 | 134,437 | |
| Other income | 299 | 2,434 | 200 | 909 | 5,898 | 11,350 | |
| Reclassification of technical interest income | – 135,509 | – 158,500 | – 193,805 | – 219,626 | – 115,133 | – 96,615 | |
| Other operating expenses | – 486 | – 512 | – 31 | – 3 | – 16,685 | – 22,458 | |
| Non-technical result | 11,753 | 31,979 | 55,811 | 54,287 | 14,301 | 26,714 | |
| Operating profit/(loss) | 31,560 | 55,526 | 97,657 | 104,846 | 40,380 | 23,848 | |
| Amortisation of goodwill and impairment losses | – 918 | – 1,875 | – 624 | – 189 | – 3,516 | – 2,381 | |
| Finance costs | – 10,627 | – 10,627 | – 10,524 | – 10,094 | 0 | – 5 | |
| Earnings before taxes | 20,015 | 43,024 | 86,509 | 94,563 | 36,865 | 21,462 |
| Reinsurance | Group functions and consolidation |
Group | |||
|---|---|---|---|---|---|
| 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 |
| 50,612 | 51,755 | – 40,034 | – 39,505 | 2,685,834 | 2,482,657 |
| 22,127 | 23,815 | – 417 | – 1,280 | 2,605,525 | 2,396,111 |
| 0 | 0 | 0 | 0 | 485,431 | 544,654 |
| 0 | 0 | 0 | 0 | 469,316 | 526,139 |
| 50,612 | 51,755 | – 40,034 | – 39,505 | 2,200,403 | 1,938,002 |
| 22,127 | 23,815 | – 417 | – 1,280 | 2,136,209 | 1,869,971 |
| 0 | 0 | 209 | 15,088 | 444,656 | 489,829 |
| 433 | 484 | – 361 | – 415 | 5,037 | 6,294 |
| – 22,696 | – 24,574 | – 7,817 | – 15,342 | – 2,111,186 | – 1,879,555 |
| – 3,815 | – 4,056 | – 18,603 | – 6,183 | – 383,503 | – 383,106 |
| – 3,847 | – 4,516 | 5,826 | 6,970 | – 32,443 | – 42,205 |
| –7,797 | –8,848 | –21,164 | –1,163 | 58,770 | 61,229 |
| 10,231 | 11,787 | 15,454 | 22,087 | 562,802 | 629,874 |
| 55 | 33 | 387 | 8,532 | 6,839 | 23,258 |
| 0 | 0 | – 209 | – 15,088 | – 444,656 | – 489,829 |
| – 82 | – 49 | 280 | – 9,851 | – 17,005 | – 32,872 |
| 10,203 | 11,771 | 15,912 | 5,680 | 107,981 | 130,431 |
| 2,406 | 2,924 | –5,252 | 4,517 | 166,751 | 191,660 |
| 0 | 0 | 0 | 0 | – 5,058 | – 4,445 |
| 0 | 0 | 21,151 | 20,721 | 0 | – 5 |
| 2,406 | 2,924 | 15,899 | 25,238 | 161,693 | 187,210 |
| Premiums earned (net) | Net investment income | ||||
|---|---|---|---|---|---|
| In € thousand | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | |
| Switzerland | 10,240 | 8,592 | 224 | 251 | |
| Italy | 875,696 | 777,831 | 98,066 | 79,525 | |
| Liechtenstein | 2,540 | 1,223 | 1,254 | 1,616 | |
| Western Europe (WE) | 888,475 | 787,646 | 99,545 | 81,392 | |
| Czech Republic | 126,945 | 111,833 | 6,507 | 7,178 | |
| Hungary | 57,282 | 56,556 | 4,205 | 5,152 | |
| Poland | 160,166 | 181,181 | 21,069 | 15,136 | |
| Slovakia | 73,364 | 57,566 | 3,819 | 4,201 | |
| Central Europe (CE) | 417,756 | 407,136 | 35,599 | 31,667 | |
| Romania | 51,352 | 58,081 | 3,427 | 4,526 | |
| Ukraine | 40,708 | 59,278 | 14,739 | 9,766 | |
| Eastern Europe (EE) | 92,060 | 117,358 | 18,166 | 14,292 | |
| Albania | 25,321 | 20,229 | 225 | 733 | |
| Bosnia-Herzegovina | 23,623 | 22,683 | 2,543 | 2,404 | |
| Bulgaria | 40,358 | 38,715 | 1,142 | 649 | |
| Croatia | 65,410 | 54,445 | 17,044 | 17,282 | |
| Montenegro | 10,116 | 9,918 | 643 | 594 | |
| Macedonia | 10,105 | 9,977 | 421 | 343 | |
| Serbia | 42,003 | 37,400 | 4,328 | 6,579 | |
| Kosovo | 13,400 | 11,255 | 0 | 246 | |
| Southeastern Europe (SEE) | 230,336 | 204,623 | 26,346 | 28,828 | |
| Russia | 48,470 | 65,578 | 15,275 | 19,541 | |
| Russia (RU) | 48,470 | 65,578 | 15,275 | 19,541 | |
| Austria | 0 | 0 | 391 | – 1,389 | |
| Administration | 0 | 0 | 391 | –1,389 | |
| UNIQA International | 1,677,097 | 1,582,342 | 195,321 | 174,330 | |
| Of which | |||||
| Earnings before taxes | |||||
| insurance companies | |||||
| Impairment (Romania) | |||||
| Impairment (Ukraine) | |||||
| Earnings before taxes | Operating expenses | Insurance benefits | |||
|---|---|---|---|---|---|
| 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 |
| 910 | 1,050 | – 3,162 | – 3,473 | – 6,718 | – 7,470 |
| 21,444 | 24,695 | – 73,009 | – 79,788 | – 751,926 | – 855,908 |
| – 4,656 | 3,332 | – 2,125 | 757 | – 6,527 | – 1,139 |
| 17,698 | 29,077 | –78,296 | –82,504 | –765,172 | –864,517 |
| 10,283 | 12,650 | – 39,182 | – 45,638 | – 68,989 | – 74,238 |
| – 4,642 | – 674 | – 32,890 | – 40,019 | – 25,329 | – 13,350 |
| 9,852 | 15,752 | – 67,078 | – 57,707 | – 116,624 | – 106,976 |
| 6,474 | 5,561 | – 20,547 | – 28,921 | – 34,879 | – 42,783 |
| 21,967 | 33,289 | –159,698 | –172,286 | –245,821 | –237,346 |
| – 35,533 | – 2,429 | – 23,621 | – 22,931 | – 44,889 | – 27,063 |
| 7,273 | – 2,408 | – 41,279 | – 28,655 | – 24,697 | – 14,389 |
| –28,261 | –4,836 | –64,899 | –51,586 | –69,586 | –41,452 |
| 3,225 | 2,599 | – 9,602 | – 11,846 | – 8,179 | – 9,507 |
| 1,004 | 1,057 | – 8,105 | – 8,077 | – 16,638 | – 17,043 |
| – 4,587 | 549 | – 17,907 | – 17,086 | – 25,887 | – 24,001 |
| 3,985 | 5,490 | – 22,292 | – 21,817 | – 42,722 | – 54,170 |
| – 334 | – 601 | – 5,088 | – 4,824 | – 5,312 | – 6,395 |
| 535 | 664 | – 4,934 | – 4,796 | – 5,152 | – 5,314 |
| 2,820 | – 62 | – 17,153 | – 17,438 | – 20,218 | – 25,838 |
| 1,192 | 445 | – 4,618 | – 5,274 | – 4,787 | – 7,492 |
| 7,840 | 10,141 | –89,699 | –91,158 | –128,895 | –149,760 |
| 5,693 | 6,658 | – 16,826 | – 9,430 | – 44,163 | – 36,265 |
| 5,693 | 6,658 | –16,826 | –9,430 | –44,163 | –36,265 |
| – 26,102 | – 19,852 | – 25,429 | – 20,511 | 0 | 0 |
| –26,102 | –19,852 | –25,429 | –20,511 | 0 | 0 |
| –1,164 | 54,477 | –434,847 | –427,476 | –1,253,637 | –1,329,341 |
| 49,938 | 74,329 |
– 25,000
– 13,081
| Property and casualty insurance | Health insurance | ||||
|---|---|---|---|---|---|
| 31/12/2015 | 31/12/2014 | 31/12/2015 | 31/12/2014 | ||
| Assets | |||||
| Property, plant and equipment | 165,176 | 136,214 | 28,946 | 27,494 | |
| Investment property | 216,905 | 219,380 | 280,708 | 312,145 | |
| Intangible assets | 480,918 | 483,441 | 232,798 | 225,769 | |
| Financial assets accounted for using the equity method | 45,122 | 43,374 | 175,924 | 173,520 | |
| Investments | 4,629,614 | 4,013,081 | 2,558,942 | 2,507,148 | |
| Unit-linked and index-linked life insurance investments | 0 | 0 | 0 | 0 | |
| Reinsurers' share of technical provisions | 179,622 | 155,799 | 895 | 1,002 | |
| Reinsurers' share of technical provisions for unit-linked and index-linked life insurance |
0 | 0 | 0 | 0 | |
| Receivables, including insurance receivables | 986,588 | 1,089,632 | 149,193 | 193,922 | |
| Income tax receivables | 69,533 | 38,209 | 21 | 1,111 | |
| Deferred tax assets | 7,446 | 1,409 | 17 | 394 | |
| Cash and cash equivalents | 304,398 | 234,646 | 159,177 | 143,859 | |
| Assets in disposal groups held for sale | 0 | 0 | 0 | 0 | |
| Total assets by business line | 7,085,322 | 6,415,185 | 3,586,622 | 3,586,363 | |
| Equity and liabilities | |||||
| Subordinated liabilities | 1,100,089 | 604,187 | 0 | 0 | |
| Technical provisions | 3,059,858 | 2,914,745 | 2,780,075 | 2,677,800 | |
| Technical provisions for unit-linked and index-linked life insurance |
0 | 0 | 0 | 0 | |
| Financial liabilities | 10,568 | 11,485 | 24,016 | 28,557 | |
| Other provisions | 739,460 | 744,201 | 21,715 | 17,222 | |
| Liabilities and other items classified as equity and liabilities | 707,787 | 700,514 | 89,394 | 190,332 | |
| Income tax liabilities | 88,146 | 30,774 | 2,547 | 597 | |
| Deferred tax liabilities | 62,887 | 77,773 | 144,872 | 141,392 | |
| Liabilities in disposal groups held for sale | 0 | 0 | 0 | 0 | |
| Total equity and liabilities by business line | 5,768,794 | 5,083,678 | 3,062,619 | 3,055,901 |
| Group | Consolidation | Life insurance | |||
|---|---|---|---|---|---|
| 31/12/2014 | 31/12/2015 | 31/12/2014 | 31/12/2015 | 31/12/2014 | 31/12/2015 |
| 283,506 | 307,741 | 0 | 0 | 119,798 | 113,618 |
| 1,504,483 | 1,392,590 | 0 | 0 | 972,958 | 894,977 |
| 1,517,058 | 1,472,476 | 0 | – 10,350 | 807,848 | 769,110 |
| 528,681 | 514,165 | 0 | 0 | 311,788 | 293,119 |
| 20,629,354 | 21,392,476 | – 557,603 | – 477,555 | 14,666,728 | 14,681,475 |
| 5,386,650 | 5,226,748 | 0 | 0 | 5,386,650 | 5,226,748 |
| 563,540 | 548,966 | 0 | – 4,724 | 406,739 | 373,173 |
| 332,974 | 315,646 | 0 | 0 | 332,974 | 315,646 |
| 1,094,544 | 911,477 | – 836,164 | – 758,826 | 647,154 | 534,523 |
| 53,917 | 87,270 | 0 | 0 | 14,596 | 17,716 |
| 6,630 | 9,427 | 0 | 0 | 4,827 | 1,965 |
| 975,764 | 890,083 | 0 | 0 | 597,258 | 426,508 |
| 161,053 | 9,289 | 0 | 0 | 161,053 | 9,289 |
| 33,038,153 | 33,078,355 | –1,393,767 | –1,251,455 | 24,430,371 | 23,657,867 |
| 600,000 | 1,095,745 | – 314,187 | – 414,344 | 310,000 | 410,000 |
| 21,220,068 | 21,100,072 | – 1,178 | – 15,168 | 15,628,701 | 15,275,307 |
| 5,306,000 | 5,175,437 | 0 | 0 | 5,306,000 | 5,175,437 |
| 49,181 | 33,580 | – 258,173 | – 74,667 | 267,312 | 73,664 |
| 801,837 | 796,442 | 0 | – 12,979 | 40,414 | 48,246 |
| 1,400,828 | 1,271,572 | – 818,840 | – 731,576 | 1,328,823 | 1,205,967 |
| 43,272 | 95,970 | 0 | 0 | 11,901 | 5,277 |
| 355,424 | 334,696 | 0 | 0 | 136,259 | 126,937 |
| 159,107 | 0 | 0 | 0 | 159,107 | 0 |
| 29,935,719 | 29,903,515 | –1,392,378 | –1,248,733 | 23,188,517 | 22,320,835 |
| 3,102,434 | 3,174,840 | Consolidated equity and non-controlling interests | |||
| 33,038,153 | 33,078,355 | Total equity and liabilities |
The amounts indicated for each business line have been adjusted to eliminate amounts resulting from segment-internal transactions. Therefore, the balance of segment assets and liabilities does not allow conclusions to be drawn with regard to the equity allocated to the respective segment.
| Acquisition costs In € thousand |
Land and buildings for own use |
Other property, plant and equipment |
Total |
|---|---|---|---|
| As at 1 January 2014 | 295,133 | 234,434 | 529,567 |
| Currency translation | – 2,877 | – 2,651 | – 5,528 |
| Change in consolidation scope | 5,534 | 6,491 | 12,025 |
| Additions | 1,313 | 30,067 | 31,380 |
| Disposals | – 5,527 | – 9,979 | – 15,506 |
| Reclassifications | – 4,716 | – 4,156 | – 8,872 |
| As at 31 December 2014 | 288,860 | 254,207 | 543,067 |
| As at 1 January 2015 | 288,860 | 254,207 | 543,067 |
| Currency translation | 396 | – 365 | 31 |
| Change in consolidation scope | 46,742 | – 1,185 | 45,557 |
| Additions | 243 | 16,341 | 16,585 |
| Disposals | – 940 | – 23,328 | – 24,267 |
| Reclassifications | – 2,911 | – 1,745 | – 4,656 |
| As at 31 December 2015 | 332,390 | 243,926 | 576,316 |
| Accumulated amortisation and impairment losses In € thousand |
Land and buildings for own use |
Other property, plant and equipment |
Total |
|---|---|---|---|
| As at 1 January 2014 | –96,701 | –146,278 | –242,979 |
| Currency translation | 608 | 1,231 | 1,839 |
| Change in consolidation scope | – 951 | – 4,907 | – 5,858 |
| Additions from amortisation | – 8,268 | – 16,462 | – 24,731 |
| Disposals | 2,903 | 7,965 | 10,869 |
| Reclassifications | 1,295 | 4 | 1,299 |
| As at 31 December 2014 | –101,114 | –158,447 | –259,561 |
| As at 1 January 2015 | –101,114 | –158,447 | –259,561 |
| Currency translation | – 149 | 138 | – 11 |
| Change in consolidation scope | 0 | 923 | 923 |
| Additions from amortisation | – 3,745 | – 14,366 | – 18,110 |
| Additions from impairment | – 6,203 | 0 | – 6,203 |
| Disposals | 73 | 13,204 | 13,277 |
| Reclassifications | 1,108 | 0 | 1,108 |
| Reversal of impairment | 0 | 2 | 2 |
| As at 31 December 2015 | –110,029 | –158,547 | –268,575 |
| Carrying amounts In € thousand |
Land and buildings for own use |
Other property, plant and equipment |
Total |
|---|---|---|---|
| As at 1 January 2014 | 198,433 | 88,156 | 286,589 |
| As at 31 December 2014 | 187,746 | 95,760 | 283,506 |
| As at 31 December 2015 | 222,361 | 85,380 | 307,741 |
The fair values of the land and buildings used by the Group are derived from expert reports and are comprised as follows:
| Fair values In € thousand |
Property and casualty insurance |
Health insurance | Life insurance | Total |
|---|---|---|---|---|
| As at 31 December 2014 | 105,658 | 13,849 | 150,082 | 269,589 |
| As at 31 December 2015 | 174,877 | 13,876 | 143,952 | 332,705 |
Other property, plant and equipment refers mainly to technical systems and operating and office equipment.
| Acquisition costs In € thousand |
Total |
|---|---|
| As at 1 January 2014 | 2,217,125 |
| Currency translation | – 31,789 |
| Change in consolidation scope | 9,574 |
| Additions | 39,561 |
| Disposals | – 134,093 |
| Reclassifications | 8,872 |
| As at 31 December 2014 | 2,109,251 |
| As at 1 January 2015 | 2,109,251 |
| Currency translation | – 10,513 |
| Change in consolidation scope | 6,984 |
| Additions | 21,030 |
| Disposals | – 111,671 |
| Reclassifications | 5,197 |
| As at 31 December 2015 | 2,020,279 |
| Accumulated amortisation and impairment losses In € thousand |
Total |
|---|---|
| As at 1 January 2014 | –564,640 |
| Currency translation | 8,663 |
| Change in consolidation scope | – 97 |
| Additions from amortisation | – 45,783 |
| Additions from impairment | – 33,282 |
| Disposals | 31,632 |
| Reclassifications | – 1,299 |
| Reversal of impairment | 38 |
| As at 31 December 2014 | –604,769 |
| As at 1 January 2015 | –604,769 |
| Currency translation | 4,036 |
| Change in consolidation scope | 0 |
| Additions from amortisation | – 57,590 |
| Additions from impairment | – 9,038 |
| Disposals | 40,911 |
| Reclassifications | – 1,108 |
| Reversal of impairment | – 132 |
| As at 31 December 2015 | –627,689 |
| Carrying amounts In € thousand |
Total |
|---|---|
| As at 1 January 2014 | 1,652,485 |
| As at 31 December 2014 | 1,504,483 |
| As at 31 December 2015 | 1,392,590 |
The fair values of the investment property are derived from expert reports.
| Fair values In € thousand |
Pr operty and casualty insurance |
H ealth insurance |
ife insurance | T otal |
|---|---|---|---|---|
| As at 31 December 2014 | 384,130 | 497,845 | 1,354,047 | 2,236,021 |
| As at 31 December 2015 | 383,185 | 511,614 | 1,290,594 | 2,185,392 |
The fair values of the investment property were reduced based on a reassessment of the development of future rental charges and the expected vacancy rate as well as an increase in the discount rate. This affected one property in Austria and five properties abroad, resulting in impairments in the amount of €9,038 thousand on the investment property. The impairments relate exclusively to the Group functions segment. The recoverable amount of the impaired land and buildings amounts to €25,589 thousand and reflects the fair value. Reference is made to the statements in the section "Use of discretionary decisions and estimates for a description of the measurement procedures applied".
| Acquisition costs In € thousand |
Deferred acquisition costs |
Insurance contract portfolio |
Goodwill | Other intangible assets |
Total |
|---|---|---|---|---|---|
| As at 1 January 2014 | 994,501 | 175,942 | 567,646 | 176,227 | 1,914,317 |
| Currency translation | – 14,369 | – 83 | – 11,537 | – 2,243 | – 28,232 |
| Change in consolidation scope | 6,769 | 7,025 | 13,767 | 2,870 | 30,430 |
| Additions | 8,052 | 0 | 0 | 15,524 | 23,576 |
| Disposals | – 74,653 | – 13,544 | 0 | – 11,083 | – 99,280 |
| Reclassifications | 0 | 0 | 3,075 | 0 | 3,075 |
| Interest capitalised | 79,197 | 0 | 0 | 0 | 79,197 |
| Capitalisation | 242,600 | 0 | 0 | 0 | 242,600 |
| Depreciation (direct) | – 243,145 | 0 | 0 | 0 | – 243,145 |
| As at 31 December 2014 | 998,952 | 169,340 | 572,951 | 181,295 | 1,922,538 |
| As at 1 January 2015 | 998,952 | 169,340 | 572,951 | 181,295 | 1,922,538 |
| Currency translation | – 4,679 | – 236 | – 3,397 | 65 | – 8,247 |
| Change in consolidation scope | – 42 | 0 | 0 | – 406 | – 448 |
| Additions | 0 | – 79 | 0 | 22,320 | 22,240 |
| Disposals | 0 | 2 | – 7,103 | – 6,013 | – 13,115 |
| Reclassifications | 0 | 0 | 0 | – 541 | – 541 |
| Interest capitalised | – 2,425 | 0 | 0 | 0 | – 2,425 |
| Capitalisation | 123,518 | 0 | 0 | 0 | 123,518 |
| Depreciation (direct) | – 135,117 | 0 | 0 | 0 | – 135,117 |
| As at 31 December 2015 | 980,207 | 169,026 | 562,451 | 196,720 | 1,908,403 |
| Accumulated amortisation and impairment losses In € thousand |
Deferred acquisition costs |
Insurance contract portfolio |
Goodwill | Other intangible assets | Total |
|---|---|---|---|---|---|
| As at 1 January 2014 | 0 | –137,548 | –95,866 | –151,772 | –385,186 |
| Currency translation | 0 | 50 | – 16 | 1,335 | 1,368 |
| Change in consolidation scope | 0 | 0 | 2,972 | – 2,111 | 862 |
| Additions from amortisation | 0 | – 7,292 | 0 | – 2,920 | – 10,211 |
| Additions from impairment | 0 | 0 | – 25,000 | 0 | – 25,000 |
| Disposals | 0 | 13,544 | 0 | 2,218 | 15,762 |
| Reclassifications | 0 | 0 | – 3,075 | 0 | – 3,075 |
| As at 31 December 2014 | 0 | –131,246 | –120,985 | –153,249 | –405,480 |
| As at 1 January 2015 | 0 | –131,246 | –120,985 | –153,249 | –405,480 |
| Currency translation | 0 | 163 | 1 | – 1,850 | – 1,686 |
| Change in consolidation scope | 0 | 0 | 0 | 382 | 382 |
| Additions from amortisation | 0 | – 7,858 | 0 | – 10,701 | – 18,559 |
| Additions from impairment | 0 | 0 | – 13,081 | 0 | – 13,081 |
| Disposals | 0 | – 2 | 874 | 1,625 | 2,497 |
| As at 31 December 2015 | 0 | –138,943 | –133,191 | –163,794 | –435,927 |
| Carrying amounts In € thousand |
Deferred acquisition costs |
Insurance contract portfolio |
Goodwill | Other intangible assets | Total |
|---|---|---|---|---|---|
| As at 1 January 2014 | 994,501 | 38,394 | 471,780 | 24,455 | 1,529,131 |
| As at 31 December 2014 | 998,952 | 38,093 | 451,966 | 28,046 | 1,517,058 |
| As at 31 December 2015 | 980,207 | 30,083 | 429,260 | 32,926 | 1,472,476 |
| Goodwill by CGU In € thousand |
31/12/2015 | 31/12/2014 |
|---|---|---|
| UNIQA Austria | 8,791 | 8,791 |
| FINANCE LIFE | 28,946 | 28,946 |
| Albania, Kosovo, Macedonia as sub-group "Sigal Group" (SEE) | 20,697 | 20,259 |
| Bosnia-Herzegovina | 1,887 | 1,887 |
| Bulgaria | 55,812 | 55,812 |
| Czech Republic | 7,848 | 7,647 |
| Croatia | 16,162 | 16,120 |
| Hungary | 16,924 | 16,948 |
| Italy | 115,488 | 121,718 |
| Montenegro | 81 | 81 |
| Poland | 27,881 | 27,820 |
| Romania | 104,097 | 105,054 |
| Serbia | 19,366 | 19,403 |
| Russia | 44 | 49 |
| Slovakia | 120 | 120 |
| Ukraine | 0 | 16,187 |
| Other service companies | 5,114 | 5,124 |
| Total | 429,260 | 451,966 |
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Computer software | 20,495 | 22,561 |
| Copyrights | 0 | 13 |
| Licences | 180 | 904 |
| Other intangible assets | 12,251 | 4,569 |
| Total | 32,926 | 28,046 |
The financial assets accounted for using the equity method include the shares in STRABAG SE. These represent the only essential shares that are accounted for using the equity method. The following table shows the fair value of the shares as at the reporting date.
| Financial assets accounted for using the equity method In € thousand |
31/12/2015 | 31/12/2014 |
|---|---|---|
| Current market value of associated companies listed on a public stock exchange | ||
| (STRABAG SE) | 369,714 | 285,029 |
| Net Profit/(loss) | 23,205 | 19,970 |
As part of the accounting using the equity method, an assessment is made up until 31 December 2015 of the stake in STRABAG SE based on the interim financial statements as at 30 September 2015.
| Summarised statement of comprehensive income | STRABAG SE1) | |
|---|---|---|
| In € thousand | 1-9/2015 | 1-9/2014 |
| Revenue | 9,480,722 | 8,892,290 |
| Depreciation | – 287,985 | – 285,543 |
| Interest income | 60,152 | 44,177 |
| interest expenses | – 74,116 | – 69,031 |
| Income taxes | – 38,298 | – 19,150 |
| Net Profit/(loss) | 63,540 | 20,275 |
| Other comprehensive income | 21,020 | – 32,463 |
| Total comprehensive income | 84,560 | –12,188 |
| Dividends received from associated companies | 7,841 | 7,057 |
| Summarised Statement of Financial Position | STRABAG SE1) | |
|---|---|---|
| In € thousand | 30/09/2015 | 31/12/2014 |
| Cash and cash equivalents | 1,560,139 | 1,924,019 |
| Other current assets | 4,685,008 | 3,845,057 |
| Current assets | 6,245,147 | 5,769,076 |
| Non-current assets | 4,415,745 | 4,506,461 |
| Total assets | 10,660,892 | 10,275,537 |
| Current financial liabilities | 248,232 | 433,198 |
| Other current liabilities | 4,652,418 | 4,289,335 |
| Current liabilities | 4,900,650 | 4,722,533 |
| Non-current liabilities | 1,330,829 | 1,176,724 |
| Other non-current liabilities | 1,257,979 | 1,231,980 |
| Non-current liabilities | 2,588,808 | 2,408,704 |
| Total liabilities | 7,489,458 | 7,131,237 |
| Net assets | 3,171,434 | 3,144,300 |
All other financial assets accounted for using the equity method are negligible from the perspective of the Group when considered individually and are stated in aggregate form. The financial statements of the associates most recently published have been used for the purposes of the accounting using the equity method, and have been adjusted based on any essential transactions between the relevant reporting date and 31 December 2015.
Summary of information on associated companies that are not
| material when considered on a stand alone basis | ||||
|---|---|---|---|---|
| In € thousand | 1-12/2015 | 1-12/2014 | ||
| Group's share of profit from continuing operations | 3,259 | 1,128 | ||
| Group's share of loss from continuing operations | – 12,386 | – 1,781 | ||
| Group's share of other comprehensive income | – 1,954 | 14 | ||
| Group's share of total comprehensive income | – 11,081 | – 639 |
| Reconciliation of summarised financial information |
STRABAG SE Associated companies not material on | stand alone basis 2) | ||
|---|---|---|---|---|
| In € thousand | 20151) | 2014 | 2015 | 2014 |
| Net assets as at 1 January | 2,884,712 | 2,948,749 | 258,750 | 265,645 |
| Change in basis of consolidation | 0 | 0 | –32,215 | 0 |
| Dividends | –51,300 | –46,170 | –710 | –2,307 |
| Profit/(loss) after taxes | 174,000 | 132,558 | –52,950 | –4,655 |
| Other comprehensive income | 21,944 | –48,794 | –8,416 | 68 |
| Net assets as at 31 December | 3,029,356 | 2,986,343 | 164,459 | 258,750 |
| shares in associated companies | 13.76 % | 13.76 % | various investment amounts | |
| Carrying amount3) | 463,039 | 456,464 | 51,127 | 72,217 |
1) Estimate for 31 Dec. 2015 based on the interim report as at 30 Sept. 2015 on Strabag SE available as at the reporting date 2) Values in accordance with the last financial statements and/or interim reports available as at the reporting date
3) The carrying amounts are calculated based on the shares in circulation. 2015: 15.29 %, 2014 15.29 %
| In € thousand | 2015 | 2014 |
|---|---|---|
| Unrecognised losses in the reporting period | 2,291 | 2,281 |
| Cumulative unrecognised losses | 9,016 | 6,725 |
As part of the UNIQA 2.0 strategic programme, the UNIQA Group also sold its 29 per cent stake in Medial Beteiligungs-Gesellschaft m.b.H. (Vienna)(UNIQA International segment) in a contract of assignment dated 28 July 2015. The closing is expected in 2016 on account of conditions precedent. Reference is made here to the statements under note 2.4.
The following table shows the assets and liabilities in disposal groups held for sale:
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Assets | ||
| Property, plant and equipment | 7 | |
| Shares to Associated companies | 9,289 | |
| Investments | 52,226 | |
| Unit-linked and index-linked life insurance investments | 96,368 | |
| Receivables, including insurance receivables | 1,491 | |
| Income tax receivables | 4 | |
| Deferred tax assets | 58 | |
| Cash and cash equivalents | 10,899 | |
| Assets in disposal groups held for sale | 9,289 | 161,053 |
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Equity and liabilities | ||
| Technical provisions | 62,238 | |
| Technical provisions for unit-linked and index-linked life insurance | 96,072 | |
| Other provisions | 38 | |
| Liabilities and other items classified as equity and liabilities | 380 | |
| Income tax liabilities | 1 | |
| Deferred tax liabilities | 377 | |
| Liabilities in disposal groups held for sale | 0 | 159,107 |
| as at 31 December 2015 In € thousand |
Variable-income securities |
Fixed-income securities |
Loans and other investments |
Derivative financial instruments |
Investments under investment contracts |
Total |
|---|---|---|---|---|---|---|
| Investments at fair value through profit or loss | 76,892 | 354,607 | 0 | 126,545 | 58,452 | 616,497 |
| Available-for-sale financial assets | 659,499 | 18,495,071 | 0 | 0 | 0 | 19,154,570 |
| Loans and receivables | 0 | 510,092 | 1,111,317 | 0 | 0 | 1,621,409 |
| Total | 736,391 | 19,359,770 | 1,111,317 | 126,545 | 58,452 | 21,392,476 |
| of which fair value-option | 76,892 | 354,607 | 0 | 0 | 0 | 431,500 |
| as at 31 December 2014 In € thousand |
Variable-income securities |
Fixed-income securities |
Loans and other investments |
Derivative financial instruments |
Investments under investment contracts |
Total |
|---|---|---|---|---|---|---|
| Investments at fair value through profit or loss | 98,005 | 364,630 | 0 | 122,340 | 53,664 | 638,639 |
| Available-for-sale financial assets | 625,189 | 18,016,323 | 0 | 0 | 0 | 18,641,512 |
| Loans and receivables | 0 | 715,656 | 633,546 | 0 | 0 | 1,349,202 |
| Total | 723,194 | 19,096,609 | 633,546 | 122,340 | 53,664 | 20,629,354 |
| of which fair value-option | 98,005 | 364,630 | 0 | 0 | 0 | 462,635 |
| as at 31 December 2015 In € thousand |
Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Investments at fair value through profit or | ||||
| loss | 15,091,868 | 4,460,070 | 201,207 | 19,753,145 |
| Available-for-sale financial assets | 14,891,290 | 4,062,073 | 201,207 | 19,154,570 |
| Variable-income securities | 282,976 | 175,315 | 201,207 | 659,499 |
| Fixed-income securities | 14,608,314 | 3,886,758 | 0 | 18,495,071 |
| Investments at fair value through profit or | ||||
| loss | 200,578 | 397,997 | 0 | 598,575 |
| Variable-income securities | 6,107 | 70,786 | 0 | 76,892 |
| Fixed-income securities | 152,355 | 202,252 | 0 | 354,607 |
| Derivative financial instruments | 0 | 108,623 | 0 | 108,623 |
| Investments under investment contracts | 42,116 | 16,336 | 0 | 58,452 |
| as at 31 December 2014 In € thousand |
Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Investments at fair value through profit or | ||||
| loss | 14,364,591 | 4,250,790 | 632,281 | 19,247,662 |
| Available-for-sale financial assets | 14,164,806 | 3,852,616 | 624,090 | 18,641,512 |
| Variable-income securities | 235,397 | 195,422 | 194,371 | 625,189 |
| Fixed-income securities | 13,929,409 | 3,657,195 | 429,719 | 18,016,323 |
| Investments at fair value through profit or | ||||
| loss | 199,785 | 398,174 | 8,191 | 606,150 |
| Variable-income securities | 0 | 89,814 | 8,191 | 98,005 |
| Fixed-income securities | 158,976 | 205,654 | 0 | 364,630 |
| Derivative financial instruments | 0 | 89,851 | 0 | 89,851 |
| Investments under investment contracts | 40,808 | 12,855 | 0 | 53,664 |
| Level | Financial instruments | Valuation method | Input factors |
|---|---|---|---|
| 1 | Listed securities | Market value oriented | Nominal values, stock exchange prices |
| 2 | not listed securities, derivatives, loans Net present value approach | Cash flows already fixed or determined via forward rates, yield curve, credit risk of the contracting parties |
|
| 2 | Asset Backed Securities | Net present value approach | Probability of default Loss given default Expected advance payment Discount rate |
| 3 | Other shareholdings | Net present value approach | WACC (long-term) revenue growth rate (long-term) profit margins control premium |
| 1-12/2015 | 1-12/2014 | |||
|---|---|---|---|---|
| Net results | of which: impairment |
Net results | of which: impairment |
|
| Investments at fair value through profit or | ||||
| loss | ||||
| - of which held for trading | –52,062 | 0 | –97,252 | 0 |
| - of which fair value-option | 14,467 | 0 | –9,525 | 0 |
| Total | –37,595 | 0 | –106,778 | 0 |
| Available-for-sale financial assets | ||||
| - of which recognised in profit/(loss) for the | ||||
| period | 796,539 | –24,686 | 989,967 | –30,287 |
| - of which recognised in other comprehensive | ||||
| income | –152,429 | 8,213 | 1,143,498 | 220 |
| - of which reclassification from equity to | ||||
| consolidated income statement | –87,860 | 28,737 | –174,736 | 3,149 |
| Total | 556,251 | 12,265 | 1,958,730 | –26,918 |
| Financial liabilities measured at | ||||
| amortised cost | –50,243 | 0 | –37,343 | 0 |
The overall interest expenditure from financial instruments amounts to 51,902 thousand (2014: 35,797 thousand). The income from financial instruments amounts to 665,580 thousand (2014: 693,342 thousand).
Level 3 financial instruments The shares in Raiffeisen Zentralbank Österreich Aktiengesellschaft (RZB shares) are essentially allocated to level 3 in accordance with the hierarchy according to IFRS 13. They come under the category "Available-for-sale"
| Financial instrument | Fair value as at 31/12/2015 | Valuation method | Non-observable input factors |
|---|---|---|---|
| WACC | |||
| (long-term) revenue growth rate | |||
| (long-term) profit margins | |||
| RZB shares | 135,848 | DFC-method | control premium |
| WACC | |||
| (long-term) revenue growth rate | |||
| (long-term) profit margins | |||
| Other | 65,360 | DFC-method | control premium |
| In € thousand | RZB shares | ABS | Other | Total |
|---|---|---|---|---|
| As at 1 January 2015 | 138,935 | 437,638 | 55,707 | 632,281 |
| Transfers into level 2 | 0 | – 215,062 | – 53 | – 215,115 |
| Gains and losses recognised | ||||
| in the income statement | 0 | 31,765 | 0 | 31,765 |
| Gains and losses recognised | ||||
| in other comprehensive | ||||
| income | – 3,087 | 610 | 5,850 | 3,372 |
| Purchases | 0 | 73,482 | 4,145 | 77,627 |
| Sales/redemptions | 0 | – 328,433 | – 287 | – 328,721 |
| Changes from currency | ||||
| translation | 0 | 0 | – 2 | – 2 |
| Change in basis of | ||||
| consolidation | 0 | 0 | 0 | 0 |
| As at 31 December 2015 | 135,848 | 0 | 65,360 | 201,207 |
The sensitivity analysis was determined in the course of a valuation report and relates to a change in the discount interest rate and the increase or decrease in the growth rate.
The sensitivity analyses for the RZB shares are shown below.
| Sensitivity analysis for RZB 2015 | 2015 | 2014 | ||
|---|---|---|---|---|
| In € thousand | Upside | Downside | Upside | Downside |
| Through income statement | 0 | 0 | 0 | 0 |
| Through equity | 19,886 | – 15,813 | 18,600 | – 14,900 |
| Effect of changes in the discount rate (+/– | ||||
| 1 %) | 19,886 | –15,813 | 18,600 | –14,900 |
| Through income statement | 0 | 0 | 0 | 0 |
| Through equity | 455 | – 557 | 300 | – 400 |
| Effect of changes in the growth rate (+/– 1 %) | 455 | –557 | 300 | –400 |
| Carrying amounts | |||
|---|---|---|---|
| In € thousand | 31/12/2015 | 31/12/2014 | |
| Loans to affiliated companies | 1,600 | 1,800 | |
| Loans to participations | 8,000 | 0 | |
| Mortgage loans | 27,962 | 34,651 | |
| Loans and advance payments on policies | 12,674 | 14,236 | |
| Other loans | 8,901 | 69,260 | |
| Reclassified bonds | 510,092 | 715,656 | |
| Total | 569,228 | 835,603 | |
| In € thousand | 31/12/2015 | 31/12/2014 | |
| impairments | 30,101 | 30,382 |
On 1 July 2008, securities previously available for sale were reclassified in accordance with IAS 39/50E as other loans. Overall, fixed-income securities with a carrying amount of €2,129,552 thousand were reclassified. The corresponding amount from the measurement of the financial instruments available-for-sale as at 30 June 2008 was €–98,208 thousand.
| Reclassified bonds In € thousand |
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|---|
| Carrying amount as at 31 December | 510,092 | 715,656 | 788,061 | 906,435 | 1,089,093 | 1,379,806 | 1,796,941 | 2,102,704 |
| Fair value as at 31 December | 534,468 | 759,872 | 812,455 | 928,162 | 981,394 | 1,345,580 | 1,732,644 | 1,889,108 |
| Change in fair value | – 19,839 | 19,822 | 129,426 | 129,426 | – 73,987 | 30,586 | 149,299 | – 213,596 |
| Redemption income/expense | – 697 | 2,391 | 348 | 348 | 332 | 473 | 5,917 | – 61 |
| Impairment | 0 | – 3,539 | 0 | 0 | – 25 | – 8,043 | 0 | 0 |
| Fair values In € thousand |
||
|---|---|---|
| In € thousand | 31/12/2015 | 31/12/2014 |
| Loans to affiliated companies | 1,600 | 1,800 |
| Loans to participations | 8,000 | 0 |
| Mortgage loans | 27,962 | 34,651 |
| Loans and advance payments on policies | 12,674 | 14,236 |
| Other loans | 8,901 | 69,260 |
| Registered bonds | ||
| Reclassified bonds | 534,468 | 759,872 |
| Total | 593,604 | 879,818 |
| Contractual maturities | Fair values In € thousand |
|
|---|---|---|
| In € thousand | 31/12/2015 | 31/12/2014 |
| No maturity date | 8,000 | 10,647 |
| up to 1 year | 280,963 | 426,904 |
| more than 1 year up to 5 years | 176,383 | 282,047 |
| more than 5 years up to 10 years | 35,139 | 61,301 |
| more than 10 years | 93,119 | 98,920 |
| Total | 593,604 | 879,818 |
| Impairment Figures in € thousand |
31/12/2015 | 31/12/2014 |
| Change in impairment for current year | 3,084 | 5,507 |
of which recognised in profit or loss 3,084 5,507
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Reinsurance receivables | ||
| Receivables from reinsurance business | 51,753 | 45,883 |
| 51,753 | 45,883 | |
| Other receivables | ||
| Insurance receivables | ||
| from policyholders | 244,639 | 298,295 |
| from insurance intermediaries | 56,785 | 66,628 |
| from insurance companies | 13,836 | 19,842 |
| 315,260 | 384,765 | |
| Other receivables | ||
| Interest and rent | 238,024 | 244,462 |
| Other tax refund claims | 3,653 | 58,583 |
| Receivables from employees | 1,434 | 3,055 |
| Other receivables | 269,535 | 323,829 |
| 512,646 | 629,929 | |
| Total other receivables | 827,906 | 1,014,694 |
| Subtotal | 879,659 | 1,060,577 |
| of which receivables with a remaining maturity of | ||
| up to 1 year | 840,486 | 1,048,215 |
| more than 1 year | 10,780 | 12,362 |
| 851,266 | 1,060,577 | |
| of which receivables with values not yet impaired | ||
| up to 3 months overdue | 14,771 | 12,774 |
| more than 3 months overdue | 4,626 | 2,515 |
| Other assets | ||
| Prepaid expenses and deferred charges | 31,818 | 33,967 |
| 31,818 | 33,967 | |
| Total receivables including insurance receivables | 911,477 | 1,094,544 |
| Value adjustments 2015 In € thousand |
Receivables net (carrying amount) |
impairments | Receivables gross |
|---|---|---|---|
| Reinsurance receivables | |||
| Receivables from reinsurance business | 51,753 | –19 | 51,772 |
| 51,753 | –19 | 51,772 | |
| Other receivables | |||
| Insurance receivables | |||
| from policyholders1) | 244,639 | 0 | 244,639 |
| from insurance intermediaries | 56,785 | –3,977 | 60,762 |
| from insurance companies | 13,836 | 0 | 13,836 |
| 315,260 | –3,977 | 319,237 | |
| Other receivables | 0 | ||
| Interest and rent | 238,024 | –9,679 | 247,703 |
| Other tax refund claims | 3,653 | –614 | 4,266 |
| Receivables from employees | 1,434 | 0 | 1,434 |
| Other receivables | 269,535 | –497 | 270,032 |
| 512,646 | –10,790 | 523,435 | |
| Total other receivables | 879,659 | –14,785 | 894,444 |
1) Impairment losses related to policyholders are shown under the cancellation provision.
| Value adjustments 2014 In € thousand |
Receivables net (carrying amount) |
impairments | Receivables gross |
|---|---|---|---|
| Reinsurance receivables | |||
| Receivables from reinsurance business | 45,883 | 0 | 45,883 |
| 45,883 | 0 | 45,883 | |
| Other receivables | |||
| Insurance receivables | |||
| from policyholders1) | 298,295 | 0 | 298,295 |
| from insurance intermediaries | 66,628 | –2,259 | 68,887 |
| from insurance companies | 19,842 | 0 | 19,842 |
| 384,765 | –2,259 | 387,024 | |
| Other receivables | |||
| Interest and rent | 244,462 | –8,688 | 253,150 |
| Other tax refund claims | 58,583 | –614 | 59,197 |
| Receivables from employees | 3,055 | 0 | 3,055 |
| Other receivables | 323,829 | –2 | 323,831 |
| 629,929 | –9,304 | 639,233 | |
| Total other receivables | 1,060,577 | –11,563 | 1,072,140 |
1) Impairment losses related to policyholders are shown under the cancellation provision.
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Income tax receivables | 87,270 | 53,917 |
| of which receivables with a remaining maturity of | ||
| up to 1 year | 87,103 | 52,536 |
| more than 1 year | 167 | 1,381 |
| Deferred taxes In € thousand |
31/12/2015 | 31/12/2014 | ||
|---|---|---|---|---|
| Deferred tax assets | 9,427 | 6,630 | ||
| Deferred tax liabilities | – 334,696 | – 355,424 | ||
| Net deferred taxes | –325,268 | –348,794 | ||
| Maturity (gross - before offsetting) | 31/12/2015 | 31/12/2015 | 31/12/2014 | 31/12/2014 |
| In € thousand | up to 1 year | more than 1 year | up to 1 year | more than 1 year |
| Deferred tax assets | 26,899 | 161,930 | 16,482 | 160,233 |
| Deferred tax liabilities | – 104,526 | – 409,572 | – 42,092 | – 483,417 |
The differences between the tax carrying amounts and the carrying amounts in the IFRS consolidated statement of financial position have the following effect:
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Technical items | 54,319 | 53,975 |
| Investments | 24,531 | 18,854 |
| Actuarial gains and losses on defined benefit obligations | 70,426 | 74,611 |
| Loss carried forward | 11,664 | 8,513 |
| Partial depreciation in accordance with § 12 KStG | 0 | 0 |
| Other items | 27,890 | 20,762 |
| Deferred tax liabilities | ||
| Technical items | – 225,671 | – 228,606 |
| Investments | – 198,165 | – 247,057 |
| Actuarial gains and losses on defined benefit obligations | – 18 | – 114 |
| Other items | – 90,244 | – 49,732 |
| Net deferred taxes | –325,268 | –348,794 |
The deferred tax assets and deferred tax liabilities stated in the consolidated statement of financial position performed as follows:
| In € thousand | Net deferred taxes |
|---|---|
| As at 1 January 2014 | –190,285 |
| Changes recognised in profit/(loss) | – 47,534 |
| Changes recognised in other comprehensive income | – 107,319 |
| Changes due to acquisitions | – 2,919 |
| Foreign exchange differences | – 737 |
| As at 31 December 2014 | –348,794 |
| As at 1 January 2015 | –348,794 |
| Changes recognised in profit/(loss) | – 5,392 |
| Changes recognised in other comprehensive income | 29,540 |
| Changes due to acquisitions | 355 |
| Foreign exchange differences | – 977 |
| As at 31 December 2015 | –325,268 |
Changes recorded in other comprehensive income essentially relate to measurements of financial instruments available-for-sale and revaluation of defined benefit obligations.
The following deferred tax assets were not recognised as realisation of these in the near future cannot be assumed.
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Tax assets from loss carryforwards | 9,767 | 7,782 |
For tax loss carryforwards amounting to €7,501 thousand (2014: €14,979 thousand) there were no deferred tax assets recognised. These tax assets are forfeited as follows:
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| up to 1 year | 0 | 0 |
| 2 to 5 years | 1,200 | 2,397 |
| more than 5 years | 0 | 0 |
| Total | 1,200 | 2,397 |
The cash and cash equivalents in the reporting year amounted to 890,083 thousand (2014: 975,764 thousand) and these correspond with the fund of liquid assets pursuant to IAS 7. The cash and cash equivalents have a maximum commitment period of three months as at the reporting date.
Subscribed capital The share capital is comprised of 309,000,000 no-par bearer shares as in the previous year.
Items recognised in other comprehensive income Unrealised gains and losses from the revaluation of available-for-sale financial instruments impacted the equity in the item "Other comprehensive income", taking into account deferred profit participation (for life insurance) and deferred taxes.
Actuarial gains and losses from pension and termination benefit provisions were posted as "Revaluation from defined benefit obligations" after deducting deferred policyholder profit participation and deferred taxes.
| Change in the tax amounts included in the equity without affecting income Figures in € thousand |
31/12/2015 | 31/12/2014 |
|---|---|---|
| Deferred taxes | 29,540 | – 107,319 |
| Total | 29,540 | –107,319 |
Capital requirements Business performance as a result of organic growth and acquisitions influences the capital requirements of the UNIQA Group. In the context of Group management, the appropriate coverage of the solvency requirement on a consolidated basis is constantly monitored.
As at 31 December 2015 the adjusted equity amounted to 3,511,505 thousand (2014: 3,442,237 thousand. In ascertaining the adjusted equity, intangible economic assets (in particular goodwill) and equity investments in banks and insurance companies are deducted from equity and various forms of hybrid capital (in particular supplemental capital) and latent reserves in investments (in particular in land and buildings) are added.
With a statutory requirement for adjusted equity of 1,163,799 thousand (2014: 1,165,169 thousand) in accordance with the Solvency I Regime the statutory requirements were exceeded by 2,347,705 thousand (2014: €2,277,068 thousand), resulting in a coverage rate of 301.7 per cent (2014: 295.4 per cent). Reference is made to the statements under note 7.2.3 in relation to the introduction of Solvency II. With the change to Section 81h(2) of the Insurance Supervisory Act (VAG), the volatility reserve was added as part of the available capital as of the third quarter of 2008. This increased the adjusted equity by 136,010 thousand (2014: €135,391 thousand).
The adjusted equity funding is ascertained on the basis of the available consolidated financial statements (in accordance with Section 80b of the Insurance Supervisory Act).
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Adjusted equity without deduction acc. to Section 86h paragraph 5 of the Insurance | ||
| Supervision Act | 3,511,505 | 3,442,237 |
| Adjusted equity with deduction acc. to Section 86h paragraph 5 of the Insurance | ||
| Supervision Act | 3,375,495 | 3,306,846 |
Authorisations of the Management Board In accordance with the resolution of the Annual General Meeting dated 26 May 2014, the Management Board is authorised to increase the Company's share capital up to and including 30 June 2019 with the approval of the Supervisory Board by a total of up to €81,000,000 by issuing up to 81,000,000 no-par value bearer or registered shares in exchange for payment in cash or in kind, one time or several times.
In accordance with the resolution of the Annual General Meeting dated 26 May 2015 the Management Board was authorised to acquire treasury shares for a period of 30 months from 28 November 2015. The newly acquired shares may reach a maximum of 10 per cent of the share capital together with the own shares that already exist. The own shares can be broken down as follows:
| 31/12/2015 | 31/12/2014 | |
|---|---|---|
| Shares held by: | ||
| UNIQA Insurance Group AG | ||
| Acquisition costs | 10,857 | 10,857 |
| Number of shares | 819,650 | 819,650 |
| Share of subscribed capital in % | 0.27 | 0.27 |
In the figure for "earnings per share", the consolidated profit/(loss) is set against the average number of ordinary shares in circulation.
| Earnings per share | 2015 | 2014 |
|---|---|---|
| Consolidated profit in € thousand | 331,087 | 289,863 |
| Own shares as at 31st. Dec. | 819,650 | 819,650 |
| Average number of shares in circulation | 308,180,350 | 308,180,350 |
| Earnings per share (in €)1) | 1.07 | 0.94 |
| Dividend per share in Euros2) | 0.47 | 0.42 |
| Dividend payment in € thousand2) | 144,845 | 129,436 |
1) Calculated based on consolidated profit for the year
2) For the financial year, subject to resolution being passed by the Annual General Meeting.
The diluted earnings per share is equal to the basic earnings per share in the financial year and in the previous year.
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| In valuation of financial instruments available for sale | 1,994 | – 1,377 |
| In actuarial gains and losses on defined benefit plans | – 705 | 0 |
| In retained profit | 5,829 | 4,686 |
| In other equity | 15,008 | 16,884 |
| Total | 22,127 | 20,193 |
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Supplementary capital | 1,095,745 | 600,000 |
| Fair values In € thousand |
31/12/2015 | 31/12/2014 |
| Supplementary capital | 1,159,720 | 663,648 |
In December 2006, UNIQA Insurance Group AG issued bearer debentures with a nominal value of €150 million for deposited supplementary capital in accordance with section 73c(2) of the Austrian Insurance Supervisory Act. According to the terms and conditions of the bearer debentures, the contributed capital of UNIQA Insurance Group AG is agreed to remain at the Company's disposal for at least 5 years, with no ordinary or extraordinary cancellation possible. Interest is applied only insofar as this is covered in the net profit for the year of the issuer. The interest rate up to December 2016 is 5.079 per cent, after which a variable interest rate applies.
In January 2007, UNIQA Insurance Group AG issued bearer debentures with a nominal value of €100 million for deposited supplementary capital in accordance with section 73c(2) of the Austrian Insurance Supervisory Act. According to the terms and conditions of the bearer debentures, the contributed capital of UNIQA Insurance Group AG is agreed to remain at the Company's disposal for at least 5 years, with no ordinary or extraordinary cancellation possible. Interest is applied only insofar as this is covered in the net profit for the year of the issuer. The interest rate up to December 2016 is 5.342 per cent, after which a variable interest rate applies.
In July 2013, UNIQA Insurance Group AG successfully placed a supplementary capital bond in the volume of €350 million with institutional investors in Europe. The bond has a maturity period of 30 years and may only be cancelled after 10 years. The coupon equals 6.875 per cent per annum during the first 10 years, after which a variable interest rate applies. The supplementary capital bond meets both the supervisory requirements related to equity netting as supplementary capital under Solvency I, along with the requirements for equity netting as tier-2 capital under the Solvency II regime, which has been in force since 1 January 2016. The issue was also aimed at replacing older supplementary capital bonds from Austrian insurance groups and at bolstering UNIQA's capital resources and capital structure in preparation for Solvency II and optimising these over the long term. The supplementary capital bond has been listed on the Luxembourg Stock Exchange since the end of July 2013. The issue price was set at 100 per cent.
In July 2015, UNIQA Insurance Group AG successfully placed a subordinated capital bond (Tier 2) to the value of €500 million with institutional investors in Europe. The bond is eligible for netting as tier-2 capital under Solvency II. It is not eligible under Solvency I. The bond is scheduled for repayment after a period of 31 years and subject to certain conditions, and can only be cancelled by UNIQA after 11 years have elapsed and under certain conditions. The coupon amounts to 6.00 per cent per annum during the first 11 years, after which a variable interest rate applies. The bond has been listed on the Vienna Stock Market since July 2015. The issue price was set at 100 per cent.
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Unearned premiums | 21,962 | 16,030 |
| Property and casualty insurance | 21,883 | 15,939 |
| Krankenversicherung | 79 | 92 |
| Actuarial provision | 357,577 | 394,307 |
| Property and casualty insurance | 14 | 135 |
| Krankenversicherung | 794 | 886 |
| Lebensversicherung | 356,769 | 393,286 |
| Provision for unsettled claims | 167,874 | 151,240 |
| Property and casualty insurance | 151,645 | 137,605 |
| Krankenversicherung | 22 | 25 |
| Lebensversicherung | 16,206 | 13,610 |
| Sonstige versicherungstechnische Rückstellungen | 1,553 | 1,964 |
| Total | 548,966 | 563,540 |
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Property and casualty insurance | ||
| Gross | 616,780 | 607,373 |
| Reinsurers' share | – 21,883 | – 15,939 |
| 594,897 | 591,435 | |
| Health insurance | ||
| Gross | 19,077 | 19,268 |
| Reinsurers' share | – 79 | – 92 |
| 18,998 | 19,176 | |
| In the consolidated | ||
| financial statements | ||
| Gross | 635,857 | 626,641 |
| Reinsurers' share | – 21,962 | – 16,030 |
| Total | 613,895 | 610,611 |
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Property and casualty insurance | ||
| Gross | 12,344 | 12,565 |
| Reinsurers' share | – 14 | – 135 |
| 12,330 | 12,431 | |
| Health insurance | ||
| Gross | 2,561,667 | 2,436,865 |
| Reinsurers' share | – 794 | – 886 |
| 2,560,873 | 2,435,979 | |
| Life insurance | ||
| Gross | 14,061,089 | 14,323,869 |
| Reinsurers' share | – 356,769 | – 393,286 |
| 13,704,320 | 13,930,583 | |
| In the consolidated | ||
| financial statements | ||
| Gross | 16,635,100 | 16,773,299 |
| Reinsurers' share | – 357,577 | – 394,307 |
| Total | 16,277,523 | 16,378,992 |
| For Figures in percent |
Health insurance acc. to SFAS 60 |
Life insurance acc. to SFAS 120 |
|---|---|---|
| 2015 | ||
| For actuarial provision | 2.25 – 5.50 | 0.00 – 4.00 |
| For deferred acquisition costs | 2.25 – 5.50 | 3.33 – 3.56 |
| 2014 | ||
| For actuarial provision | 2.50 – 5.50 | 0.00 – 4.00 |
| For deferred acquisition costs | 2.50 – 5.50 | 3.20 – 3.77 |
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Property and casualty insurance | ||
| Gross | 2,371,658 | 2,240,465 |
| Reinsurers' share | – 151,645 | – 137,605 |
| 2,220,013 | 2,102,860 | |
| Health insurance | ||
| Gross | 157,917 | 165,204 |
| Reinsurers' share | – 22 | – 25 |
| 157,895 | 165,179 | |
| Life insurance | ||
| Gross | 193,741 | 179,174 |
| Reinsurers' share | – 16,206 | – 13,610 |
| 177,535 | 165,565 | |
| In the consolidated | ||
| financial statements | ||
| Gross | 2,723,316 | 2,584,844 |
| Reinsurers' share | – 167,874 | – 151,240 |
| Total | 2,555,443 | 2,433,604 |
The provision for unsettled claims (claim provision) developed in the property and casualty insurance as follows:
| In € thousand | 2015 | 2014 |
|---|---|---|
| 1. Provisions for outstanding claims as at 1 January | ||
| a) Gross | 2,240,465 | 2,054,700 |
| b) Reinsurers' share | – 137,605 | – 112,623 |
| c) Net | 2,102,860 | 1,942,077 |
| 2. Plus (net) claims expenditures | ||
| a) Current year claims | 1,376,992 | 1,584,660 |
| b) Prior-year claims | 10,474 | – 1,077 |
| c) Total | 1,387,466 | 1,583,583 |
| 3. Less (net) claims paid | ||
| a) Current year claims | – 650,301 | – 748,529 |
| b) Prior-year claims | – 619,931 | – 691,517 |
| c) Total | –1,270,232 | –1,440,046 |
| 4. Currency translation | 723 | –13,638 |
| 5. Change in consolidation scope | 0 | 32,736 |
| 6. Other changes | –803 | –1,851 |
| 7. Claim provision as at 31 December | ||
| a) Gross | 2,371,658 | 2,240,465 |
| b) Reinsurers' share | – 151,645 | – 137,605 |
| c) Net | 2,220,013 | 2,102,860 |
| Claims payments In € thousand |
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Financial year | 523,210 | 581,983 | 618,113 | 706,057 | 769,753 | 776,876 | 733,463 | 800,067 | 831,534 | 786,038 | 794,016 | |
| 1 year later | 814,005 | 884,326 | 958,737 1,073,178 1,164,904 1,160,537 1,109,179 1,195,298 1,242,907 1,207,284 | |||||||||
| 2 years later | 887,138 | 967,317 1,043,705 1,166,793 1,268,544 1,258,170 1,223,779 1,319,003 1,363,432 | ||||||||||
| 3 years later | 917,008 1,006,410 1,087,343 1,213,167 1,330,393 1,308,475 1,275,777 1,377,165 | |||||||||||
| 4 years later | 936,752 1,031,764 1,121,544 1,241,698 1,358,817 1,334,978 1,305,553 | |||||||||||
| 5 years later | 953,618 1,045,830 1,140,705 1,263,366 1,377,228 1,354,962 | |||||||||||
| 6 years later | 963,841 1,058,452 1,155,846 1,277,050 1,393,176 | |||||||||||
| 7 years later | 975,209 1,069,189 1,167,044 1,290,790 | |||||||||||
| 8 years later | 983,117 1,075,870 1,177,992 | |||||||||||
| 9 years later | 989,278 1,085,168 | |||||||||||
| 10 years later | 994,298 | |||||||||||
| Cumulated payments and provision for outstanding claims In € thousand |
2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
| Financial year | 1,044,733 1,129,365 1,221,222 1,323,499 1,439,517 1,439,838 1,407,767 1,519,755 1,579,194 1,613,892 1,621,985 | |||||||||||
| 1 year later | 1,040,851 1,144,371 1,209,144 1,326,067 1,458,485 1,442,195 1,409,757 1,518,203 1,568,880 1,598,412 | |||||||||||
| 2 years later | 1,041,599 1,128,449 1,213,701 1,341,516 1,465,215 1,446,195 1,412,978 1,531,862 1,593,265 | |||||||||||
| 3 years later | 1,022,203 1,128,640 1,213,806 1,343,576 1,460,849 1,434,378 1,416,140 1,538,025 | |||||||||||
| 4 years later | 1,020,900 1,126,022 1,222,436 1,340,638 1,456,551 1,439,324 1,413,386 | |||||||||||
| 5 years later | 1,020,818 1,126,412 1,230,254 1,339,602 1,459,601 1,442,302 | |||||||||||
| 6 years later | 1,022,787 1,120,868 1,233,181 1,347,216 1,460,901 | |||||||||||
| 7 years later | 1,022,708 1,123,015 1,237,468 1,349,966 | |||||||||||
| 8 years later | 1,027,339 1,125,569 1,234,839 | |||||||||||
| 9 years later | 1,026,410 1,126,554 | |||||||||||
| 10 years later | 1,027,192 | |||||||||||
| Run-off | – 782 | – 985 | 2,630 | – 2,749 | – 1,300 | – 2,977 | 2,753 | – 6,164 | – 24,385 | 15,479 | - | – 18,480 |
| profit and loss reserve before 2005 | – 7,648 | |||||||||||
| Total run-off | –26,128 | |||||||||||
| Provision for outstanding claims | 32,894 | 41,386 | 56,847 | 59,176 | 67,726 | 87,340 | 107,833 | 160,861 | 229,832 | 391,129 | 827,969 2,062,993 | |
| Provision for outstanding claims for accident years before 2005 |
243,921 | |||||||||||
| Plus other reserve components (internal claims regulation costs, etc.) |
64,745 | |||||||||||
| Provisions for outstanding claims (gross) as at 31. December 2015 |
2,371,658 |
| Gross in € thousand |
2015 | 2014 |
|---|---|---|
| As at 1 January | 49,743 | 46,479 |
| Changes due to: | ||
| Other changes | – 6,260 | 3,264 |
| As at 31 December | 43,483 | 49,743 |
Provision for profit-related premium refunds and/or policyholder profit participation:
| Gross | 2015 | 2014 |
|---|---|---|
| in € thousand | ||
| Provision for profit-related premium refunds and /or policyholder profit | ||
| participation | ||
| As at 1 January | 188,481 | 218,323 |
| Other changes | – 76,385 | – 29,842 |
| As at 31 December | 112,096 | 188,481 |
| Deferred profit participation | ||
| As at 1 January | 952,801 | 116,430 |
| Fluctuation in value, available-for-sale securities | – 86,990 | 821,266 |
| Actuarial gains and losses on defined benefit obligations | – 7,062 | – 9,779 |
| Revaluations through profit or loss | 46,271 | 24,884 |
| As at 31 December | 905,019 | 952,801 |
| Total | 1,017,115 | 1,141,282 |
| Gross In € thousand |
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 technical provisions |
Total |
|---|---|---|---|---|---|---|---|
| in € thousand Property and casualty insurance |
|||||||
| As at 1 January 2015 | 607,373 | 12,565 | 2,240,465 | 35,468 | 952 | 16,825 | 2,913,649 |
| Foreign exchange differences | – 2,268 | 1 | 1,032 | – 1 | 14 | 149 | – 1,072 |
| Portfolio changes | – 98 | 2,454 | 2,356 | ||||
| Additions | 17 | 108 | 1,760 | 1,619 | 3,503 | ||
| Disposals | – 240 | – 8,392 | – 1,571 | – 2,831 | – 13,033 | ||
| Premiums written | 1,690,385 | 1,690,385 | |||||
| Premiums earned | – 1,678,614 | – 1,678,614 | |||||
| Claims reporting year | 1,432,622 | 1,432,622 | |||||
| Claims payments reporting year | – 658,568 | – 658,568 | |||||
| Change in claims previous years | 11,189 | 11,189 | |||||
| Claims payments previous years | – 657,537 | – 657,537 | |||||
| As at 31 December 2015 | 616,780 | 12,344 | 2,371,658 | 27,183 | 1,155 | 15,761 | 3,044,881 |
| Health insurance | |||||||
| As at 1 January 2015 | 19,268 | 2,436,865 | 165,204 | 10,823 | 44,652 | 989 | 2,677,800 |
| Foreign exchange differences | – 260 | 132 | 149 | – 1 | 0 | 37 | 58 |
| Additions | 124,640 | 10,910 | 1 | 284 | 135,835 | ||
| Disposals | 30 | – 8,922 | – 17,436 | – 98 | – 26,425 | ||
| Premiums written | 935,525 | 935,525 | |||||
| Premiums earned | – 935,455 | – 935,455 | |||||
| Claims reporting year | 663,884 | 663,884 | |||||
| Claims payments reporting year | – 478,162 | – 478,162 | |||||
| Change in claims previous years | – 3,624 | – 3,624 | |||||
| Claims payments previous years As at 31 December 2015 |
19,077 | 2,561,667 | – 189,533 157,917 |
12,811 | 27,218 | 1,212 | – 189,533 2,779,902 |
| Life insurance As at 1 January 2015 |
14,323,869 | 179,174 | 3,452 | 1,095,678 | 26,446 | 15,628,619 | |
| Foreign exchange differences | – 8,115 | 23 | – 1 | 41 | – 4 | – 8,056 | |
| Portfolio changes | 18,353 | 154 | – 18,130 | 378 | |||
| Additions | 625,972 | 38 | – 1,634 | 8,840 | 633,216 | ||
| Disposals | – 898,991 | – 87,213 | – 7,054 | – 993,257 | |||
| Claims reporting year | 1,966,271 | 1,966,271 | |||||
| Claims payments reporting year | – 1,772,876 | – 1,772,876 | |||||
| Change in claims previous years | 32,346 | 32,346 | |||||
| Claims payments previous years | – 211,351 | – 211,351 | |||||
| As at 31 December 2015 | 14,061,089 | 193,741 | 3,489 | 988,743 | 28,228 | 15,275,289 | |
| Total | |||||||
| As at 1 January 2015 | 626,641 | 16,773,299 | 2,584,844 | 49,743 | 1,141,282 | 44,260 | 21,220,068 |
| Foreign exchange differences | – 2,528 | – 7,981 | 1,204 | – 2 | 55 | 181 | – 9,070 |
| Portfolio changes | – 98 | 18,353 | 2,608 | – 18,130 | 2,734 | ||
| Additions | 750,629 | 11,056 | 127 | 10,742 | 772,554 | ||
| Disposals | – 899,200 | – 17,313 | – 106,220 | – 9,982 | – 1,032,716 | ||
| Premiums written | 2,625,910 | 2,625,910 | |||||
| Premiums earned | – 2,614,069 | – 2,614,069 | |||||
| Claims reporting year | 4,062,778 | 4,062,778 | |||||
| Claims payments reporting year | – 2,909,607 | – 2,909,607 | |||||
| Change in claims previous years | 39,911 | 39,911 | |||||
| Claims payments previous years | – 1,058,421 | – 1,058,421 | |||||
| As at 31 December 2015 | 635,857 | 16,635,100 | 2,723,316 | 43,483 | 1,017,115 | 45,201 | 21,100,072 |
| Reinsurers' share In € thousand |
Unearned premiums |
Actuarial provisions |
Provision for outstanding claims |
Provision for profit- Provision for profit unrelated premium related premium refunds refunds and /or policyholder profit participation |
Other technical provisions |
Total |
|---|---|---|---|---|---|---|
| Property and casualty insurance | ||||||
| As at 1 January 2015 | 15,939 | 135 | 137,605 | 2,120 | 155,799 | |
| Foreign exchange differences | – 29 | 0 | 310 | – 1 | 280 | |
| Portfolio changes | – 284 | 3,257 | 2,973 | |||
| Additions | 215 | 215 | ||||
| Disposals | – 121 | – 604 | – 725 | |||
| Premiums written | 46,676 | 46,676 | ||||
| Premiums earned | – 40,419 | – 40,419 | ||||
| Claims reporting year | 55,631 | 55,631 | ||||
| Claims payments reporting year | – 8,267 | – 8,267 | ||||
| Change in claims previous years | 716 | 716 | ||||
| Claims payments previous years | – 37,606 | – 37,606 | ||||
| As at 31 December 2015 | 21,883 | 14 | 151,645 | 1,730 | 175,272 | |
| Health insurance | ||||||
| As at 1 January 2015 | 92 | 886 | 25 | 1,002 | ||
| Foreign exchange differences | 1 | 0 | 2 | |||
| Portfolio changes | – 40 | – 40 | ||||
| Disposals | – 92 | – 92 | ||||
| Premiums written | 69 | 69 | ||||
| Premiums earned | – 44 | – 44 | ||||
| Claims reporting year | 3 | 3 | ||||
| Claims payments reporting year | – 30 | – 30 | ||||
| Change in claims previous years | 26 | 26 | ||||
| Claims payments previous years | – 2 | – 2 | ||||
| As at 31 December 2015 | 79 | 794 | 22 | 895 | ||
| Life insurance | ||||||
| As at 1 January 2015 | 393,286 | 13,610 | –156 | 406,739 | ||
| Foreign exchange differences | – 29 | 0 | 0 | – 29 | ||
| Portfolio changes | – 13,237 | – 90 | – 13,327 | |||
| Additions | 3,978 | 3,978 | ||||
| Disposals | – 27,230 | – 20 | – 27,250 | |||
| Claims reporting year | 3,529 | 3,529 | ||||
| Claims payments reporting year | – 464 | – 464 | ||||
| Change in claims previous years | 305 | 305 | ||||
| Claims payments previous years | – 683 | – 683 | ||||
| As at 31 December 2015 | 356,769 | 16,206 | –177 | 372,798 | ||
| Total | ||||||
| As at 1 January 2015 | 16,030 | 394,307 | 151,240 | 1,964 | 563,540 | |
| Foreign exchange differences | – 27 | – 29 | 310 | – 1 | 252 | |
| Portfolio changes | – 324 | – 13,237 | 3,167 | – 10,395 | ||
| Additions | 3,978 | 215 | 4,194 | |||
| Disposals | – 27,442 | – 624 | – 28,067 | |||
| Premiums written | 46,745 | 46,745 | ||||
| Premiums earned | – 40,462 | – 40,462 | ||||
| Claims reporting year | 59,163 | 59,163 | ||||
| Claims payments reporting year | – 8,761 | – 8,761 | ||||
| Change in claims previous years | 1,047 | 1,047 | ||||
| Claims payments previous years | – 38,291 | – 38,291 | ||||
| As at 31 December 2015 | 21,962 | 357,577 | 167,874 | 1,553 | 548,966 | |
| Retention Figures in € thousand |
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 technical provisions |
Total |
|---|---|---|---|---|---|---|---|
| Property and casualty insurance | |||||||
| As at 1 January 2015 | 591,435 | 12,431 | 2,102,860 | 35,468 | 952 | 14,704 | 2,757,850 |
| Foreign exchange differences | – 2,239 | 2 | 723 | – 1 | 14 | 150 | – 1,352 |
| Portfolio changes | 187 | – 803 | – 617 | ||||
| Additions | 17 | 108 | 1,760 | 1,403 | 3,288 | ||
| Disposals | – 119 | – 8,392 | – 1,571 | – 2,227 | – 12,309 | ||
| Premiums written | 1,643,710 | 1,643,710 | |||||
| Premiums earned | – 1,638,195 | – 1,638,195 | |||||
| Claims reporting year | 1,376,992 | 1,376,992 | |||||
| Claims payments reporting year | – 650,301 | – 650,301 | |||||
| Change in claims previous years | 10,474 | 10,474 | |||||
| Claims payments previous years | – 619,931 | – 619,931 | |||||
| As at 31 December 2015 | 594,897 | 12,330 | 2,220,013 | 27,183 | 1,155 | 14,031 | 2,869,608 |
| 44,652 989 2,676,798 0 37 57 |
|---|
| 40 |
| 284 135,835 |
| – 98 – 26,334 |
| 935,456 |
| – 935,412 |
| 663,881 |
| – 478,132 |
| – 3,651 |
| – 189,531 |
| 1,212 2,779,007 |
| 1 – 17,436 27,218 |
| Life insurance | ||||||
|---|---|---|---|---|---|---|
| As at 1 January 2015 | 13,930,583 | 165,565 | 3,452 | 1,095,678 | 26,603 | 15,221,880 |
| Foreign exchange differences | – 8,086 | 23 | – 1 | 41 | – 4 | – 8,028 |
| Portfolio changes | 31,591 | 244 | – 18,130 | 13,705 | ||
| Additions | 621,994 | 38 | – 1,634 | 8,840 | 629,237 | |
| Disposals | – 871,761 | – 87,213 | – 7,033 | – 966,007 | ||
| Claims reporting year | 1,962,743 | 1,962,743 | ||||
| Claims payments reporting year | – 1,772,412 | – 1,772,412 | ||||
| Change in claims previous years | 32,041 | 32,041 | ||||
| Claims payments previous years | – 210,668 | – 210,668 | ||||
| As at 31 December 2015 | 13,704,320 | 177,535 | 3,489 | 988,743 | 28,405 | 14,902,491 |
| Total | |||||||
|---|---|---|---|---|---|---|---|
| As at 1 January 2015 | 610,611 | 16,378,992 | 2,433,604 | 49,743 | 1,141,282 | 42,296 | 20,656,528 |
| Foreign exchange differences | – 2,500 | – 7,952 | 894 | – 2 | 55 | 183 | – 9,323 |
| Portfolio changes | 227 | 31,591 | – 559 | – 18,130 | 13,128 | ||
| Additions | 746,651 | 11,056 | 127 | 10,527 | 768,361 | ||
| Disposals | – 871,758 | – 17,313 | – 106,220 | – 9,358 | – 1,004,649 | ||
| Premiums written | 2,579,165 | 2,579,165 | |||||
| Premiums earned | – 2,573,607 | – 2,573,607 | |||||
| Claims reporting year | 4,003,615 | 4,003,615 | |||||
| Claims payments reporting year | – 2,900,846 | – 2,900,846 | |||||
| Change in claims previous years | 38,864 | 38,864 | |||||
| Claims payments previous years | – 1,020,130 | – 1,020,130 | |||||
| As at 31 December 2015 | 613,895 | 16,277,523 | 2,555,443 | 43,483 | 1,017,115 | 43,648 | 20,551,107 |
| Total | 4,859,791 | 4,973,026 |
|---|---|---|
| Reinsurers' share | – 315,646 | – 332,974 |
| Gross | 5,175,437 | 5,306,000 |
| In € thousand | 31/12/2015 | 31/12/2014 |
As a general rule, the valuation of the technical provisions for unit-linked and index-linked life insurance policies corresponds to the investments in unit-linked and index-linked life insurance investments reported at current fair values. The share of reinsurers is accompanied by a liability for deposits in the same amount.
| In € thousand | 2015 long term | 2015 short term | 2014 long term | 2014 short term |
|---|---|---|---|---|
| Liabilities from loans | 15,613 | 45 | 16,507 | 184 |
| Derivative financial instruments | 2,711 | 15,211 | 19,903 | 12,586 |
| Financial liabilities | 18,324 | 15,256 | 36,410 | 12,771 |
| Subordinated liabilities | 845,745 | 250,000 | 600,000 | 0 |
| Total | 864,070 | 265,256 | 636,410 | 12,771 |
With the exception of the subordinated liabilities, the carrying amounts of the financial liabilities are equal to the fair values.
| In € thousand | Liabilities from loans | Derivative financial instruments |
Subordinated liabilities |
|---|---|---|---|
| Carrying amount as at 1 January 2014 | 18,535 | 8,301 | 600,000 |
| Aufnahmen | 2 | 24,188 | 0 |
| Changes from currency translation | – 5 | 0 | 0 |
| Ordinary amortisation | – 1,840 | 0 | 0 |
| Carrying amount as at 1 January 2015 | 16,692 | 32,489 | 600,000 |
| Aufnahmen | 6 | 1,401 | 495,745 |
| Changes from currency translation | – 1 | 0 | 0 |
| Profit or loss from changes of exchange rates | 0 | – 1,059 | 0 |
| Ordinary amortisation | – 1,039 | – 14,909 | 0 |
| Carrying amount as at 31 December 2015 | 15,658 | 17,922 | 1,095,745 |
| Maturity as at 31 December 2015 | Funds flow | |||||
|---|---|---|---|---|---|---|
| In € thousand | 2016 | 2017 | 2018 | 2019 | 2020 | >2020 |
| Liabilities from loans | 978 | 969 | 960 | 951 | 942 | 11,380 |
| Derivative financial instruments | 4,800 | 2,262 | 2,192 | 2,076 | 1,670 | 8,174 |
| Subordinated liabilities | 318,140 | 54,813 | 54,813 | 54,813 | 54,964 | 1,105,773 |
| Total | 323,918 | 58,044 | 57,965 | 57,840 | 57,575 | 1,125,327 |
| Maturity as at 31 December 2014 | Funds flow | |||||
| In € thousand | 2015 | 2016 | 2017 | 2018 | 2019 | >2019 |
| Liabilities from loans | 1,003 | 978 | 969 | 960 | 951 | 12,358 |
| Derivative financial instruments | 13,741 | 3,012 | 2,076 | 2,001 | 1,909 | 13,485 |
| Subordinated liabilities | 37,537 | 287,640 | 24,397 | 24,397 | 24,397 | 447,654 |
| Total | 52,282 | 291,630 | 27,442 | 27,358 | 27,257 | 473,496 |
| In € thousand | 31/12/2015 31/12/2014 | ||
|---|---|---|---|
| Other provisions | 196,049 | 190,167 | |
| Defined benefit obligations | 600,394 | 611,670 | |
| Total | 796,442 | 801,837 |
| In € thousand | Defined benefit obligations for pensions |
Plan assets at fair value |
Net defined benefit obligations for pensions |
Defined benefit obligations for termination benefits |
Total defined benefit obligations |
|---|---|---|---|---|---|
| As at 1 January 2015 | 503,899 | –71,492 | 432,407 | 179,263 | 611,670 |
| Current service costs | 18,026 | 0 | 18,026 | 7,164 | 25,189 |
| Interest expense/income | 12,264 | – 1,829 | 10,436 | 3,697 | 14,133 |
| Past service costs | – 47,782 | 0 | – 47,782 | – 13,398 | – 61,180 |
| Components of defined benefit obligations recognised | |||||
| in the income statement | –17,492 | –1,829 | –19,321 | –2,537 | –21,858 |
| Return on plan assets recognised in other comprehensive | |||||
| income | 0 | – 409 | – 409 | 0 | – 409 |
| Actuarial gains and losses that arise from changes in demographic assumptions |
0 | 0 | 0 | 147 | 147 |
| Actuarial gains and losses that arise from changes in financial | |||||
| assumptions | 33,519 | 0 | 33,519 | 16,434 | 49,953 |
| Actuarial gains and losses that arise from experience | |||||
| adjustments | 11,008 | 0 | 11,008 | – 2,701 | 8,307 |
| Other comprehensive income | 44,527 | –409 | 44,118 | 13,881 | 57,999 |
| Changes from currency translation | 1 | 0 | 1 | 0 | 1 |
| Payments | – 21,900 | 0 | – 21,900 | – 16,786 | – 38,687 |
| Contribution to plan assets | 0 | – 6,261 | – 6,261 | 0 | – 6,261 |
| Transfer in | 0 | 0 | 0 | 458 | 458 |
| Transfer out | – 7,772 | 2,728 | – 5,044 | – 461 | – 5,505 |
| Change in basis of consolidation | 620 | 17 | 637 | 1,940 | 2,577 |
| As at 31 December 2015 | 501,883 | –77,246 | 424,637 | 175,757 | 600,394 |
| In € thousand | Defined benefit obligations for pensions |
Plan assets at fair value |
Net defined benefit obligations for pensions |
Defined benefit obligations for termination benefits |
Total defined benefit obligations |
|---|---|---|---|---|---|
| As at 1 January 2014 | 454,768 | –62,816 | 391,952 | 194,805 | 586,757 |
| Current service costs | 15,694 | 0 | 15,694 | 7,718 | 23,412 |
| Interest expense/income | 12,928 | – 1,936 | 10,992 | 4,268 | 15,259 |
| Past service costs | 4,737 | 0 | 4,737 | 0 | 4,737 |
| Components of defined benefit obligations recognised | |||||
| in the income statement | 33,358 | –1,936 | 31,422 | 11,986 | 43,409 |
| Return on plan assets recognised in other comprehensive | |||||
| income | 0 | – 4,182 | – 4,182 | 0 | – 4,182 |
| Actuarial gains and losses that arise from changes in demographic assumptions |
0 | 0 | 0 | – 3 | – 3 |
| Actuarial gains and losses that arise from changes in financial assumptions |
42,467 | 0 | 42,467 | 6,514 | 48,981 |
| Actuarial gains and losses that arise from experience | |||||
| adjustments | – 500 | 0 | – 500 | 1,746 | 1,246 |
| Other comprehensive income | 41,967 | –4,182 | 37,785 | 8,257 | 46,042 |
| Changes from currency translation | – 5 | 0 | – 5 | – 5 | – 10 |
| Payments | – 20,076 | 0 | – 20,076 | – 35,780 | – 55,856 |
| Contribution to plan assets | 0 | – 7,971 | – 7,971 | 0 | – 7,971 |
| Transfer out | – 6,113 | 5,413 | – 700 | 0 | – 701 |
| Change in basis of consolidation | 0 | 0 | 0 | 0 | 0 |
| As at 31 December 2014 | 503,899 | –71,492 | 432,407 | 179,263 | 611,670 |
The provisions for social capital from the repositioning of UNIQA (2014: €17,088 thousand) were released entirely in the financial year.
Amendments were made to the works agreements for the pension fund scheme in the 2015 financial year. They resulted in a positive effect on the retrospective service cost amounting to €50,565 thousand.
| 31/12/2015 | 31/12/2014 | |||
|---|---|---|---|---|
| Listed | Not listed | Listed | Not listed | |
| Bonds - euro | 28.8 % | 0.0 % | 35.1 % | 0.1 % |
| Bonds - euro high yield | 4.4 % | 2.3 % | 2.7 % | 0.6 % |
| Corporate bonds - euro | 19.6 % | 2.2 % | 16.1 % | 1.7 % |
| Equities - euro | 7.4 % | 0.0 % | 7.4 % | 0.0 % |
| Equities - non-euro | 5.9 % | 0.0 % | 6.9 % | 0.0 % |
| Equities - emerging markets | 0.3 % | 0.0 % | 3.5 % | 0.1 % |
| Alternative investment instruments | 1.3 % | 0.0 % | 0.9 % | 0.0 % |
| Land and buildings | 0.0 % | 1.6 % | 0.0 % | 0.0 % |
| Cash | 0.0 % | 10.1 % | 0.0 % | 6.4 % |
| HTM bonds / term deposits | 16.1 % | 0.0 % | 16.4 % | 2.2 % |
| Total | 83.8% | 16.2% | 89.1% | 10.9% |
| Calculation factors applied Figures in percent |
2015 | 2014 |
|---|---|---|
| Discount rate | ||
| Termination benefits | 1.3 | 2.5 |
| Pensions | 2.0 | 2.5 |
| Valorisation of remuneration | 3.0 | 3.0 |
| Valorisation of pensions | 2.0 | 2.0 |
| Employee turnover rate | dependent on years of service | dependent on years of service |
| AVÖ 2008 P - Pagler & Pagler / | AVÖ 2008 P - Pagler & Pagler / | |
| Calculation principles | Angestellte | Angestellte |
| Weighted average duration in years | Pensions | Termination benefits |
|---|---|---|
| 31/12/2015 | 13.8 | 8.4 |
| 31/12/2014 | 19.4 | 8.4 |
Investment risk The cash value of the defined benefit obligations is calculated using a discount rate which is determined based on the returns from high-quality corporate bonds. There will be a deficit if the changes in the plan assets fall below these returns. The plans for the different benefit obligations include a diversified mix of securities. These primarily include annuities, corporate bonds, equities and other equity instruments, etc. By reducing the duration of the plans, the Group intends to reduce the investment risk by continuously adjusting the portfolio of assets to the requirements of the defined benefit plans.
Interest rate change risk A fall in the return on corporate bonds results in an increase in the cash value of the defined benefit obligations. However, this effect is absorbed in part by the increase in the plan assets or by higher income from the plan assets.
Life expectancy The cash value of the benefit obligations from pensions is heavily dependent inter alia on the life expectancy of the beneficiaries. An increase in the life expectancy of the beneficiaries results in an increase in the defined benefit obligations.
Salary risk The cash value of the defined benefit obligations is ascertained based on the future salaries of the beneficiaries. In this respect, any salary increases result in an increase in the defined benefit obligations. The majority of the assets from the plan assets are not indexed to any rates of inflation or salary increase.
The sensitivity of the defined benefit obligations on changes in the weighted actuarial calculation parameters is:
| Sensitivity analysis 2015 | Pensions | Termination benefits |
|---|---|---|
| figures in percent | ||
| Average remaining life expectancy | ||
| Change in DBO (+ 1 year) | 3.2 | |
| Change in DBO (-1 year) | – 3.4 | |
| Discount rate | ||
| Change in DBO (+ 1 %) | – 11.9 | – 7.1 |
| Change in DBO (-1 %) | 14.8 | 9.0 |
| Future salary increase rate | ||
| Change in DBO (+ 0.75 %) | 1.6 | 5.9 |
| Change in DBO (-0.75 %) | – 1.5 | – 6.0 |
| Future pension increase rate | ||
| Change in DBO (+ 0.25 %) | 3.0 | |
| Change in DBO (-0.25 %) | – 2.9 |
| Sensitivity analysis 2014 figures in percent |
Pensions | Termination benefits |
|---|---|---|
| Average remaining life expectancy | ||
| Change in DBO (+ 1 year) | 3.9 | |
| Change in DBO (-1 year) | – 4.1 | |
| Discount rate | ||
| Change in DBO (+ 1 %) | – 16.1 | – 8.0 |
| Change in DBO (-1 %) | 21.7 | 9.1 |
| Future salary increase rate | ||
| Change in DBO (+ 0.75 %) | 1.7 | 6.6 |
| Change in DBO (-0.75 %) | – 1.6 | – 6.1 |
| Future pension increase rate | ||
| Change in DBO (+ 0.25 %) | 3.4 | |
| Change in DBO (-0.25 %) | – 3.2 |
Under the defined contribution company pension scheme, the employer pays the fixed amounts into company pension funds. The employer has satisfied their obligation by making these contributions.
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Contributions to company pension funds | 2,048 | 2,293 |
| In € thousand | Provisions for jubilee benefits |
Customer services and marketing provision |
Provision for legal and consulting expenses |
Provision for premium adjustment of insurance contracts |
Provision for portfolio maintenance commission |
Miscellaneous other provisions |
Total |
|---|---|---|---|---|---|---|---|
| As at 1 January 2014 | 15,343 | 73,675 | 8,853 | 9,354 | 2,667 | 96,541 | 206,433 |
| Additions | 265 | 69,026 | 1,522 | 3,489 | 705 | 61,460 | 136,467 |
| Reversal of unused provisions | – 674 | – 3,539 | – 562 | 0 | 0 | – 18,690 | – 23,465 |
| Addition due to unwinding of the | 0 | ||||||
| discount | 0 | 0 | 0 | 0 | 0 | 0 | |
| Change in basis of consolidation | 0 | 100 | 0 | 0 | 0 | – 322 | – 222 |
| Reclassifications | 0 | 0 | – 1,111 | 0 | 0 | 1,228 | 117 |
| Recognised in profit/(loss) for the | 0 | ||||||
| year | 0 | 0 | 0 | 0 | 0 | 0 | |
| Use in current year | – 50 | – 63,336 | – 747 | – 4,922 | – 173 | – 59,537 | – 128,766 |
| Foreign exchange differences | 0 | – 163 | – 7 | – 10 | – 25 | – 192 | – 397 |
| As at 31 December 2014 | 14,884 | 75,763 | 7,948 | 7,911 | 3,174 | 80,487 | 190,167 |
| As at 1 January 2015 | 14,884 | 75,763 | 7,948 | 7,911 | 3,174 | 80,487 | 190,167 |
| Additions | 1,414 | 73,879 | 2,504 | 2,768 | 1,792 | 61,708 | 144,065 |
| Reversal of unused provisions | – 917 | – 3,137 | – 2,099 | – 3 | 0 | – 19,860 | – 26,017 |
| Addition due to unwinding of the | 321 | ||||||
| discount | 321 | 0 | 0 | 0 | 0 | 0 | |
| Change in basis of consolidation | 0 | 0 | – 1 | 0 | 0 | 1,691 | 1,690 |
| Reclassifications | 0 | 2 | 0 | 0 | 0 | – 2 | 0 |
| Recognised in profit/(loss) for the | 0 | ||||||
| year | 0 | 0 | 0 | 0 | 0 | 0 | |
| Use in current year | – 10 | – 71,219 | – 2,932 | – 4,853 | – 1,023 | – 34,171 | – 114,208 |
| Foreign exchange differences | 0 | – 10 | 0 | 7 | 57 | – 23 | 30 |
| As at 31 December 2015 | 15,692 | 75,279 | 5,420 | 5,829 | 4,000 | 89,830 | 196,049 |
Other provisions include a provision of €10,000 thousand (2014: €10,000 thousand) for liability in connection with the sale of Mannheimer AG Holding.
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Reinsurance liabilities | ||
| Deposits retained on assumed reinsurance | 665,447 | 719,592 |
| Reinsurance settlement liabilities | 34,980 | 38,991 |
| 700,427 | 758,583 | |
| Other liabilities | ||
| Liabilities under insurance business | ||
| Liabilities under direct insurance business | ||
| to policyholders | 129,512 | 178,926 |
| to insurance brokers | 51,764 | 70,611 |
| to insurance companies | 9,633 | 12,781 |
| 190,909 | 262,317 | |
| Other liabilities | 358,301 | 353,300 |
| of which for taxes | 61,059 | 46,814 |
| of which for social security | 14,182 | 12,605 |
| of which from fund consolidation | 2,224 | 2,645 |
| Total other liabilities | 549,210 | 615,617 |
| Subtotal | 1,249,637 | 1,374,200 |
| of which liabilities with a maturity of | ||
| up to 1 year | 723,678 | 984,243 |
| more than 1 year up to 5 years | 3,983 | 3,033 |
| more than 5 years | 521,975 | 386,924 |
| 1,249,637 | 1,374,200 | |
| Other liabilities | ||
| Deferred income | 21,935 | 26,628 |
| Total liabilities and other items classified as equity and liabilities | 1,271,572 | 1,400,828 |
The item "Deferred income" basically comprises the balance of the deferred income from the settlement of indirect business.
| In € thousand | 31/12/2015 | 31/12/2014 | |
|---|---|---|---|
| Income tax liabilities | 95,970 | 43,272 | |
| of which liabilities with a maturity of | |||
| up to 1 year | 13,089 | 18,545 | |
| more than 1 year up to 5 years | 82,881 | 24,728 | |
| more than 5 years | 0 | 0 |
| Premiums in € thousand |
1-12/2015 | 1-12/2014 |
|---|---|---|
| Premiums written - gross | 5,839,701 | 5,519,700 |
| Premiums written - reinsurer's share | – 203,678 | – 211,288 |
| Premiums written - net | 5,636,023 | 5,308,413 |
| Change in premiums earned - gross | – 10,187 | 3,517 |
| Change in premiums earned - reinsurers' share | 7,671 | 966 |
| Premiums earned | 5,633,507 | 5,312,896 |
| Direct insurance in € thousand |
1-12/2015 | 1-12/2014 |
| Property and casualty insurance | 2,603,942 | 2,581,315 |
| Health insurance | 997,904 | 960,775 |
| Life insurance | 2,187,818 | 1,923,396 |
| Total | 5,789,664 | 5,465,486 |
| Of which written in: | ||
| Austria | 3,607,781 | 3,362,882 |
| Remaining EU member states and other states which are party to the Agreement on the European Economic Area |
1,924,659 | 1,751,709 |
| Other countries | 257,225 | 350,894 |
| Total | 5,789,664 | 5,465,486 |
| Indirect insurance in € thousand |
1-12/2015 | 1-12/2014 |
| Property and casualty insurance | 37,449 | 39,608 |
| Health insurance | 1 | 1 |
| Life insurance | 12,586 | 14,606 |
| Total | 50,036 | 54,215 |
| In € thousand | 1-12/2015 | 1-12/2014 |
Total 5,839,701 5,519,700
| Property and casualty insurance premiums written in € thousand |
1 -12/2015 |
1 -12/2014 |
|---|---|---|
| Direct insurance | ||
| Fire and business interruption insurance | 257,710 | 255,537 |
| Household insurance | 174,015 | 146,551 |
| Other property insurance | 234,401 | 238,409 |
| Motor TPL insurance | 655,268 | 658,865 |
| Other motor insurance | 456,416 | 471,215 |
| Casualty insurance | 346,892 | 326,029 |
| Liability insurance | 255,891 | 245,851 |
| Legal expense insurance | 82,112 | 76,905 |
| Marine, aviation and transport insurance | 73,636 | 87,285 |
| Other forms of insurance | 67,601 | 74,667 |
| Total | 2,603,942 | 2,581,315 |
| Indirect insurance | ||
| Marine, aviation and transport insurance | 874 | 2,036 |
| Other forms of insurance | 36,576 | 37,571 |
| Total | 37,449 | 39,608 |
| Total direct and indirect insurance | ||
| (amount consolidated) | 2,641,392 | 2,620,922 |
| Reinsurance premiums ceded | 1 -12/2015 |
1 -12/2014 |
| in € thousand Property and casualty insurance |
137,700 | 142,388 |
| Health insurance | 1,116 | 961 |
| Life insurance | 64,862 | 67,938 |
| Total | 203,678 | 211,288 |
| Premiums earned in € thousand |
1 -12/2015 |
1 -12/2014 |
| Property and casualty insurance | 2,500,199 | 2,482,938 |
| Gross | 2,630,236 | 2,624,349 |
| Reinsurers' share | – 130,036 | – 141,411 |
| Health insurance | 997,098 | 959,986 |
| Gross | 998,187 | 960,949 |
| Reinsurers' share | – 1,088 | – 962 |
| Life insurance | 2,136,209 | 1,869,971 |
| Gross | 2,201,092 | 1,937,919 |
| Reinsurers' share | – 64,882 | – 67,948 |
| Total | 5,633,507 | 5,312,896 |
| Premiums earned - indirect insurance in € thousand |
1 -12/2015 |
1 -12/2014 |
| recognised simultaneously | 2,860 | 6,581 |
| recognised with a delay of up to 1 year | 26,587 | 32,229 |
| Property and casualty insurance | 29,447 | 38,810 |
| recognised simultaneously | 642 | 0 |
| recognised with a delay of up to 1 year | 1 | 1 |
| Health insurance | 644 | 1 |
| recognised with a delay of up to 1 year | 10,667 | 14,606 |
| Life insurance | 10,667 | 14,606 |
| Total | 40,758 | 53,417 |
| Earnings - indirect insurance in € thousand |
1-12/2015 | 1-12/2014 |
|---|---|---|
| Property and casualty insurance | 26,442 | 7,616 |
| Health insurance | 123 | – 9 |
| Life insurance | 1,898 | 768 |
| Total | 28,463 | 8,375 |
| Gross | Reinsurers' share | Retention | ||||
|---|---|---|---|---|---|---|
| In € thousand | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 |
| Property and casualty insurance | ||||||
| Claims expenses | ||||||
| Claims paid | 1,611,093 | 1,583,498 | – 60,263 | – 45,185 | 1,550,830 | 1,538,314 |
| Change in provision for unsettled claims | 127,777 | 164,927 | – 16,879 | – 23,849 | 110,898 | 141,078 |
| Total | 1,738,869 | 1,748,425 | –77,142 | –69,034 | 1,661,727 | 1,679,391 |
| Change in insurance provision | – 240 | 58 | 100 | 14 | – 140 | 72 |
| Change in other technical provisions | – 848 | 2,001 | 0 | 0 | – 848 | 2,001 |
| Non-profit related and profit-related premium refund | ||||||
| expenses | 34,458 | 42,120 | 0 | 0 | 34,458 | 42,120 |
| Total benefits | 1,772,240 | 1,792,604 | –77,042 | –69,020 | 1,695,197 | 1,723,584 |
| Health insurance | ||||||
| Claims expenses | ||||||
| Claims paid | 665,876 | 647,507 | – 325 | – 152 | 665,551 | 647,355 |
| Change in provision for unsettled claims | – 76 | – 3,843 | 2 | – 3 | – 73 | – 3,846 |
| Total | 665,801 | 643,664 | –323 | –155 | 665,478 | 643,509 |
| Change in insurance provision | 124,693 | 109,281 | 92 | 99 | 124,784 | 109,380 |
| Change in other technical provisions | 207 | 77 | 0 | 0 | 207 | 77 |
| Non-profit related and profit-related premium refund | ||||||
| expenses | 10,715 | 27,557 | 0 | 0 | 10,715 | 27,557 |
| Total benefits | 801,415 | 780,579 | –231 | –56 | 801,184 | 780,523 |
| Life insurance | ||||||
| Claims expenses | ||||||
| Claims paid | 2,441,125 | 1,857,028 | – 74,619 | – 154,102 | 2,366,506 | 1,702,925 |
| Change in provision for unsettled claims | – 18,347 | 89,726 | – 2,832 | – 2,437 | – 21,179 | 87,289 |
| Total | 2,422,778 | 1,946,754 | –77,451 | –156,540 | 2,345,326 | 1,790,214 |
| Change in insurance provision | – 317,950 | – 72,149 | 12,415 | 91,577 | – 305,535 | 19,428 |
| Change in other technical provisions | 2,122 | 480 | 0 | 0 | 2,122 | 480 |
| Non-profit related and profit-related premium refund | ||||||
| expenses and/or (deferred) benefit participation expenses | 69,272 | 69,432 | 0 | 0 | 69,272 | 69,432 |
| Total benefits | 2,176,222 | 1,944,517 | –65,037 | –64,962 | 2,111,186 | 1,879,555 |
| Total | 4,749,877 | 4,517,700 | –142,310 | –134,038 | 4,607,567 | 4,383,662 |
| In € thousand | 1-12/2015 | 1-12/2014 |
|---|---|---|
| Property and casualty insurance | ||
| a) Acquisition costs | ||
| Payments | 568,589 | 560,109 |
| Change in deferred acquisition costs | – 2,431 | – 4,908 |
| b) Other operating expenses | 195,251 | 204,240 |
| c) Reinsurance commission and share of profit from reinsurance ceded | – 10,874 | – 10,499 |
| 750,534 | 748,942 | |
| Health insurance | ||
| a) Acquisition costs | ||
| Payments | 95,728 | 101,717 |
| Change in deferred acquisition costs | – 6,561 | – 532 |
| b) Other operating expenses | 76,017 | 66,337 |
| c) Reinsurance commission and share of profit from reinsurance ceded | – 526 | – 463 |
| 164,658 | 167,058 | |
| Life insurance | ||
| a) Acquisition costs | ||
| Payments | 271,999 | 294,000 |
| Change in deferred acquisition costs | 23,067 | – 11,794 |
| b) Other operating expenses | 101,876 | 115,982 |
| c) Reinsurance commission and share of profit from reinsurance ceded | – 13,439 | – 15,082 |
| 383,503 | 383,106 | |
| Total | 1,298,695 | 1,299,106 |
| Classified by business line | Property and casualty insurance |
Health insurance | Life insurance | Group | ||||
|---|---|---|---|---|---|---|---|---|
| In € thousand | 1-12/2015 | 1-12/2014 | 1-12/2015 | 1-12/2014 | 1-12/2015 1-12/2014 1-12/2015 | 1-12/2014 | ||
| Investment property | 1,802 | 15,440 | 32,213 | 7,933 | 76,941 | 95,198 | 110,956 | 118,571 |
| Financial assets accounted for using the equity method | 3,171 | 435 | 12,439 | 11,715 | 7,596 | 11,434 | 23,205 | 23,583 |
| Variable-income securities | 13,543 | 16,880 | 6,280 | 5,769 | 31,590 | 17,856 | 51,414 | 40,505 |
| Available for sale | 13,221 | 16,352 | 5,863 | 5,229 | 28,940 | 11,228 | 48,024 | 32,809 |
| At fair value through profit or loss | 322 | 528 | 418 | 540 | 2,651 | 6,628 | 3,390 | 7,696 |
| Fixed-income securities | 110,609 | 111,341 | 101,237 | 113,181 | 459,887 | 540,680 | 671,733 | 765,202 |
| Available for sale | 110,488 | 111,680 | 100,947 | 112,651 | 449,221 | 558,091 | 660,656 | 782,422 |
| At fair value through profit or loss | 122 | – 339 | 290 | 530 | 10,666 | – 17,412 | 11,077 | – 17,221 |
| Loans and other investments | 7,687 | 13,338 | 7,534 | 10,404 | 52,465 | 72,011 | 67,686 | 95,753 |
| Loans | 433 | 1,501 | 5,931 | 3,684 | 17,474 | 18,825 | 23,838 | 24,009 |
| Other investments | 7,255 | 11,838 | 1,603 | 6,721 | 34,990 | 53,186 | 43,848 | 71,745 |
| IV. Derivative financial instruments (trading portfolio) | 245 | –6,674 | –9,425 | –19,388 | –42,883 | –71,190 | –52,062 | –97,252 |
| Investment administration expenses, interest paid and other | ||||||||
| investment expenses | –11,506 | –13,187 | –7,486 | –8,909 | –22,794 | –36,114 | –41,786 | –58,210 |
| Total | 125,552 | 137,573 | 142,791 | 120,704 | 562,802 | 629,874 | 831,145 | 888,151 |
Income from available-for-sale fixed-income securities includes gains of 32,833 thousand and income from fixed income securities at fair value through profit or loss includes losses of 1,068 thousand from Level 3 valuations (hierarchy for instruments recognised at fair value in the statement of financial position).
The adjustment of valuation allowances relates to both the reversal of impairment losses as well as the impairment of financial assets, excluding assets held for trading and financial assets at fair value through profit or loss. The interest income from impaired portfolio items amounts to 9,900 thousand (2014: 19,148 thousand). The net investment income of 831,145 thousand includes realised and unrealised gains and losses amounting to 165,566 thousand, which include currency gains of 44,715 thousand. These currency gains are essentially the result of investments in US dollars. The currency gains in the underlying US dollar securities amounted to around €106,545 thousand, and these were accompanied by expenditures from derivative financial instruments within the scope of hedging transactions amounting to €66,083 thousand. In addition, currency effects amounting to 4,216 thousand were recognised directly in equity.
Income from investment property includes rent revenues in the amount of €112,908 thousand (2014: €112,048 thousand) and direct operational expenses in the amount of €33,036 thousand (2014: €34,591 thousand).
| In € thousand | 1-12/2015 | 1-12/2014 |
|---|---|---|
| Other non-technical income | 42,525 | 55,669 |
| Property and casualty insurance | 30,035 | 28,360 |
| Health insurance | 5,650 | 4,051 |
| Life insurance | 6,839 | 23,258 |
| of which | ||
| services | 8,733 | 5,797 |
| changes in exchange rates | 10,949 | 28,862 |
| other | 22,843 | 21,010 |
| Other income | 0 | 6,758 |
| from currency translation | 0 | 517 |
| from other | 0 | 6,242 |
| Total | 42,525 | 62,428 |
| In € thousand | 1-12/2015 | 1-12/2014 | |
|---|---|---|---|
| a) Other non-technical expenses | 56,103 | 64,182 | |
| Property and casualty insurance | 37,386 | 29,909 | |
| Health insurance | 1,736 | 1,401 | |
| Life insurance | 16,982 | 32,872 | |
| of which | |||
| services | 723 | 467 | |
| exchange rate losses | 20,034 | 34,816 | |
| motor vehicle registration | 6,422 | 9,028 | |
| other | 28,924 | 19,870 | |
| b) Other expenses | 4,890 | 6,153 | |
| for currency translation | 1,833 | 4,611 | |
| other | 3,057 | 1,541 | |
| Total | 60,993 | 70,334 |
| Income tax 1-12/2015 |
1-12/2014 |
|---|---|
| Figures € thousand | |
| Actual tax - reporting year 93,948 |
50,732 |
| Actual tax - previous years – 11,086 |
– 13,212 |
| Deferred taxes 5,392 |
47,534 |
| Total 88,254 |
85,055 |
| 2015 Reconciliation statement Figures in € thousand |
2014 |
| A. Earnings before taxes 422,840 |
377,932 |
| B. Expected tax expenses (A.*Group tax rate) 105,710 |
94,483 |
| Adjusted by tax effects from | |
| Tax-free investment income – 8,266 |
– 7,103 |
| Amortisation and impairment of intangible assets 3,270 |
6,250 |
| Tax-neutral consolidation effect | 321 – 1,112 |
| Other non-deductible expenses/other tax-exempt income 5,397 |
3,866 |
| Changes in tax rates | 0 – 237 |
| Deviations in tax rates – 2,236 |
196 |
| Taxes for previous years – 11,086 |
– 13,212 |
| Lapse of loss carried forward and other – 4,857 |
1,925 |
| C. Income tax expenses 88,254 |
85,055 |
| Average effective tax burden Figures in percent 20.9 |
22.5 |
The basic corporate income tax rate applied for all segments was 25 per cent. Deviating corporate tax rates arise in life insurance in which minimum taxation is applied – with an assumed profit participation of 85 per cent.
The calculation of deferred taxes is based on the specific tax rates of each country that the Group companies are based in, which were between 9 and 34 per cent in 2015. Changes in tax rates already decided effective 31 December 2015 are taken into account.
| Personnel expenses In € thousand |
2015 | 2014 |
|---|---|---|
| Salaries and wages | 391,763 | 388,352 |
| Expenses for severance payments | 2,106 | 3,573 |
| Pension expenses | 60,200 | 52,375 |
| Expenditure on mandatory social security contributions as well as income-based charges and compulsory contributions |
106,466 | 108,676 |
| Other social expenditures | 7,350 | 8,498 |
| Total | 567,886 | 561,473 |
| of which sales | 142,148 | 160,183 |
| of which administration | 395,966 | 368,358 |
| of which retirees | 29,772 | 32,932 |
| Average number of employees | 2015 | 2014 |
|---|---|---|
| Total | 14,113 | 14,336 |
| of which sales | 5,427 | 5,821 |
| of which administration | 8,686 | 8,515 |
| In € thousand | 2015 | 2014 |
| Expenses for defined benefit obligations amounted to: | ||
| Members of the Management Board and Executives as defined by section 80 1 of the Stock Corporation Act |
4,716 | 8,319 |
| Other employees | 52,760 | 39,013 |
All disclosures on the Management Board remuneration now exclusively include amounts disbursed in the financial year. This is a departure from the mixed presentation from previous years (partially remuneration, partially expenditure) in order to provide readers of the financial statements with an even clearer picture. The amounts from the previous years have been adjusted accordingly in order to ensure that the figures can be compared with the current financial year.
The active salaries of the members of the Management Board at UNIQA Insurance Group AG amounted to €3,498 thousand in the reporting year (2014: €4,710 thousand). The amount expended on pensions in the reporting year for former members of the Management Board and their survivors was €2,751 thousand (2014: €2,705 thousand).
The compensation to the members of the Supervisory Board for their work in the 2014 financial year was €474 thousand. Provisions of €425 thousand have been recognised for the remuneration to be paid for this work in 2015. The amount paid out in attendance fees and cash expenditures in the financial year was €49 thousand (2014: €33 thousand).
There are no advance payments or loans to or liabilities for members of the Management Board and the Supervisory Board.
Share-based remuneration agreement with cash settlement In the 2013 financial year, the UNIQA Group introduced a share-based remuneration programme for members of the Management Board of UNIQA Insurance Group AG and for selected members of the Management Board of UNIQA Österreich Versicherungen AG, Raiffeisen Versicherung AG and UNIQA International AG. In accordance with this programme, entitled employees are conditionally awarded virtual shares effective 1 January of the relevant financial year which give them the right to a cash payment after the end of the benefit period. The first conditional award took place retrospectively effective 1 January 2013 and included 246,888 virtual shares in the UNIQA Insurance Group AG. The length of the benefit period for each tranche runs until 31 December 2016. No further shares were awarded.
The precise payment amount is contingent upon achieving performance targets, building up and holding UNIQA ordinary shares in real terms and holding an employment contract as a member of the Management Board by the end of the relevant benefit period. The amount of the cash payment at the end of the fourth year is linked to the average price for the ordinary share in the second half of 2016 and on achieving both performance targets, which are both weighted 50 per cent.
• Performance Target 1– Total Shareholder Return (TSR): The degree of target achievement depends on the rank of the TSR of the UNIQA ordinary share among the companies managed in the DJ EuroStoxx TMI Insurance index.
• Performance Target 2– Return on Equity (ROE): The degree of target achievement depends on the rank of the ROE of UNIQA among the companies managed in the DJ EuroStoxx TMI Insurance index.
Determination of the fair values Determination of the first component (Performance Target 1) is based purely on market-based criteria (TSR), which results in an expected degree of achievement of 0 per cent. The fair value was determined using Monte Carlo modelling. No employment and market independent performance conditions (Performance Target 2) linked to business transactions were taken into account in determining the fair value. Measurement of the second component (Performance Target 2) is contingent upon non-market based criteria. The expected degree of achievement of 80 per cent was determined based on performance as at 31 December 2014 and 31 December 2015.
The provision amount determined at year-end is split up into both components of the sharebased obligation as follows:
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| TSR tranche (performance target 1) | 0 | 214 |
| ROE tranche (performance target 2) | 531 | 380 |
| Total provision | 531 | 594 |
The following parameters were used to determine the fair value on the date of the award and on the measurement date for the virtual shares:
| Award date 1/1/2013 |
Valuationdate 31/12/2015 |
|
|---|---|---|
| TSR tranche (performance target 1) | ||
| Fair value (in €) | 6.69 | 0.00 |
| Share price (in €) | 9.32 | 7.52 |
| Simulated share price as at 31/12/2016 | 7.16 | |
| Exercise price (in €) | 0.00 | 0.00 |
| Expected volatility (weighted average, in percent) | - | 25.8 |
| Expected life (weighted average, in years) | 4.0 | 1.0 |
| Discount rate (based on AA corporate bonds, in percent) | 1.2 | – 0.2 |
| ROE tranche (performance target 2) | ||
| Fair value (in €) | 8.75 | 5.73 |
| Share price (in €) | 9.32 | 7.52 |
| Exercise price (in €) | 0.00 | 0.0 |
| Expected volatility (weighted average, in percent) | 0.0 | 0.0 |
| Expected life (weighted average, in years) | 4.0 | 1.0 |
| Discount rate (based on AA corporate bonds, in percent) | 1.2 | – 0.2 |
The expected volatility is based on an assessment of historical volatility for the Company's share price over the past year.
No virtual shares were forfeited or exercised in the current financial year. The obligations from share-based remuneration are stated under "Other provisions" (Note 29) and are also included under the statements on "Related party transactions – individuals".
Group holding company The parent company of the UNIQA Group is UNIQA Insurance Group AG. In addition to its duties as Group holding company, this company also performs the duties of a group reinsurer.
Related companies and persons Companies in the UNIQA Group maintain various relationships with related companies and persons.
In accordance with IAS 24, related companies are identified as those companies which either exercise a controlling or crucial influence on UNIQA. The group of companies also includes the non-consolidated subsidiaries, associates and joint ventures of UNIQA.
The related individuals include the members of management holding key positions for the purposes of IAS 24 along with their close family members. This also includes in particular the members of management in key positions at those companies which either exercise a controlling or crucial influence on UNIQA, along with their close family members.
| Companies with | Affiliated but not | Associated | |||
|---|---|---|---|---|---|
| significant influence | consolidated | companies of | Other related | ||
| In € thousand | on UNIQA Group | companies | UNIQA Group | parties | Total |
| Transactions 2015 | |||||
| Premiums written (gross) | 0 | 2,001 | 1,091 | 33,821 | 36,913 |
| Interest income and expenses due to loans with companies that are related | |||||
| parties | 0 | 1,271 | 45 | 1,530 | 2,847 |
| Interest income and expenses from loans with banks that are related parties and | |||||
| from investments in companies that are related parties | 0 | 490 | 7,295 | 3,522 | 11,306 |
| As at 31 December 2015 | |||||
| Investments at fair value | 135,848 | 11,820 | 445,464 | 133,323 | 726,455 |
| Bank deposits | 0 | 0 | 0 | 294,286 | 294,286 |
| Companies with | Affiliated but not | Associated | |||
|---|---|---|---|---|---|
| significant influence | consolidated | companies of | Other related | ||
| In € thousand | on UNIQA Group | companies | UNIQA Group | parties | Total |
| Transactions 2014 | |||||
| Premiums written (gross) | 318 | 1,592 | 812 | 58,659 | 61,381 |
| Interest income and expenses due to loans with companies that are related | |||||
| parties | 0 | 1,400 | 0 | 1,546 | 2,946 |
| Interest income and expenses from loans with banks that are related parties and | |||||
| from investments in companies that are related parties | 374 | 4,366 | 10,110 | 30,874 | 45,724 |
| At 31 December 2014 | |||||
| Investments at fair value | 138,935 | 198,305 | 519,123 | 385,211 | 1,241,574 |
| Bank deposits | 0 | 0 | 0 | 358,177 | 358,177 |
| In € thousand | 2015 | 2014 |
|---|---|---|
| Premiums written (gross) | 1,066 | 824 |
| Salaries and short term benefits 1) | 4,526 | 3,725 |
| Pension expenses | 819 | 857 |
| Compensation on termination of employment contract | – 324 | 45 |
| Share-based payments | 1,941 | 89 |
| Other income | 236 | 251 |
1) This item includes fixed and variable Management Board and Supervisory Board remuneration components.
| In € thousand | 31/12/2015 | 31/12/2014 |
|---|---|---|
| Contingent liabilities from risks of litigation | 0 | 24,189 |
| Austria | 0 | 0 |
| other countries | 0 | 24,189 |
| Other contingent liabilities | 13,535 | 12,125 |
| Austria | 13,262 | 12,125 |
| other countries | 273 | 0 |
| Total | 13,535 | 36,313 |
The UNIQA companies 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 UNIQA's financial situation or the operating earnings.
Ukraine (Non-Life) – Option to purchase granted Since the acquisition of the shares in the Ukrainian "Closed JSC Credo-Classic Insurance Company" (now "Insurance Company 'UNIQA'", Kiev), the shares held by UNIQA since 2006 have been gradually increased to the current level of 92.23%. The existing option agreements with the two remaining minority shareholders were agreed again in 2015. This gives UNIQA the option of acquiring further shares in the company from the local minority shareholders based on previously agreed purchase price formulas in option windows in 2017 and 2020.
| In € thousand | 2015 | 2014 |
|---|---|---|
| Current lease expenses | 3,664 | 7,826 |
| Future lease payments in connection with the financing of the UNIQA Group headquarters in | ||
| Vienna | ||
| up to 1 year | 0 | 5,102 |
| more than 1 year up to 5 years | 0 | 17,859 |
| more than 5 years | 0 | 0 |
| Total | 0 | 22,961 |
| Income from sublease | 0 | 550 |
We moved into the UNIQA Group headquarters – the UNIQA Tower – in 2004. In the second Quarter of 2015 UNIQA Immobilien-Projekterrichtungs GmbH was acquired by UNIQA, meaning that no more future lease payments will be incurred in connection with the financing of the head office in Vienna.
Expenses for the auditor of the financial statements The auditor fees in the financial year were €1,965 thousand (2014: €1,100 thousand); of which €307 thousand (2014: €280 thousand) is attributable to the annual audit, €1,590 thousand (2014: €652 thousand) to other auditing services and €68 thousand (2014: €168 thousand) to other services.
| Affiliated companies and associates Company |
Type | Location | Equity interest as at 31.12.2015 |
Equity interest as at 31/12/2014 |
|---|---|---|---|---|
| Domestic insurance companies | Figures in percent | Figures in percent | ||
| UNIQA Insurance Group AG (Group Holding Company) | Vienna | |||
| UNIQA Österreich Versicherungen AG | Fully consolidated | Vienna | 100.0 | 100.0 |
| Salzburger Landes-Versicherung AG | Fully consolidated | Salzburg | 100.0 | 100.0 |
| Raiffeisen Versicherung AG | Fully consolidated | Vienna | 100.0 | 100.0 |
| FINANCE LIFE Lebensversicherung AG | Fully consolidated | Vienna | 100.0 | 100.0 |
| SK Versicherung Aktiengesellschaft | At equity | Vienna | 25.0 | 25.0 |
| Foreign insurance companies | ||||
| UNIQA Assurances SA | Fully consolidated | Switzerland, Geneva | 100.0 | 100.0 |
| UNIQA Re AG | Fully consolidated | Switzerland, Zurich | 100.0 | 100.0 |
| UNIQA Assicurazioni S.p.A. | Fully consolidated | Italy, Milan | 99.7 | 99.7 |
| UNIQA poistovña a.s. | Fully consolidated | Slovakia, Bratislava | 99.9 | 99.9 |
| UNIQA pojištovna, a.s. | Fully consolidated | Czech Republic, Prague | 100.0 | 100.0 |
| UNIQA osiguranje d.d. | Fully consolidated | Croatia, Zagreb | 100.0 | 100.0 |
| UNIQA Towarzystwo Ubezpieczen S.A. | Fully consolidated | Poland, Lodz | 98.6 | 98.6 |
| UNIQA Towarzystwo Ubezpieczen na Zycie S.A. | Fully consolidated | Poland, Lodz | 99.8 | 99.8 |
| UNIQA Biztosító Zrt. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0 |
| UNIQA Lebensversicherung AG (Deconsolidation 31.03.2015) |
Liechtenstein, Vaduz | 100.0 | ||
| UNIQA Versicherung AG | Fully consolidated | Liechtenstein, Vaduz | 100.0 | 100.0 |
| UNIQA Previdenza S.p.A. | Fully consolidated | Italy, Milan | 99.7 | 99.7 |
| UNIQA Osiguranje d.d. | Fully consolidated | Bosnia and Herzegovina, Sarajevo |
99.8 | 99.8 |
| UNIQA Insurance plc | Fully consolidated | Bulgaria, Sofia | 99.9 | 99.9 |
| UNIQA Life Insurance plc | Fully consolidated | Bulgaria, Sofia | 99.6 | 99.6 |
| UNIQA životno osiguranje a.d. | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0 |
| Insurance company "UNIQA" Private Joint Stock Company | Fully consolidated | Ukraine, Kiev | 100.0 | 100.0 |
| UNIQA LIFE Private Joint Stock Company | Fully consolidated | Ukraine, Kiev | 100.0 | 100.0 |
| UNIQA životno osiguranje a.d. | Fully consolidated | Montenegro, Podgorica | 100.0 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0 |
| UNIQA neživotno osiguranje a.d. | Fully consolidated | Montenegro, Podgorica | 100.0 | 100.0 |
| UNIQA Asigurari SA | Fully consolidated | Romania, Bucharest | 100.0 | 100.0 |
| UNIQA Asigurari De Viata SA | Fully consolidated | Romania, Bucharest | 100.0 | 100.0 |
| Raiffeisen Life Insurance Company LLC | Fully consolidated | Russia, Moscow | 75.0 | 75.0 |
| UNIQA Life S.p.A. | Fully consolidated | Italy, Milan | 89.7 | 89.7 |
| SIGAL UNIQA Group AUSTRIA Sh.A. | Fully consolidated | Albania, Tirana | 86.9 | 68.6 |
| UNIQA AD Skopje | Fully consolidated | Macedonia, Skopje | 86.9 | 68.6 |
| SIGAL LIFE UNIQA Group AUSTRIA Sh.A. | Fully consolidated | Albania, Tirana | 86.9 | 68.6 |
| SIGAL UNIQA GROUP AUSTRIA SH.A. | Fully consolidated | Kosovo, Pristina | 86.9 | 68.6 |
| UNIQA Life AD Skopje | Fully consolidated | Macedonia, Skopje | 86.9 | 68.6 |
| SIGAL Life UNIQA GROUP AUSTRIA sh.a | Fully consolidated | Kosovo, Pristina | 86.9 | 68.6 |
| SH.A.F.P SIGAL LIFE UNIQA GROUP AUSTRIA Sh.A. | Fully consolidated | Albania, Tirana | 44.3 | 35.0 |
| Group domestic service companies | ||||
| UNIQA Real Estate Management GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Versicherungsmarkt-Servicegesellschaft m.b.H. | Fully consolidated | Vienna | 100.0 | 100.0 |
| Agenta Risiko- und Finanzierungsberatung Gesellschaft m.b.H. |
Fully consolidated | Vienna | 100.0 | 100.0 |
| Raiffeisen Versicherungsmakler Vorarlberg GmbH | At equity | Bregenz | 50.0 | 50.0 |
| Dr. E. Hackhofer EDV-Softwareberatung Gesellschaft m.b.H. | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA IT Services GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Capital Markets GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Company | Type | Location | Equity interest as at 31.12.2015 Figures in percent |
Equity interest as at 31/12/2014 Figures in percent |
|---|---|---|---|---|
| call us Assistance International GmbH | Fully consolidated | Vienna | 50.2 | 50.2 |
| UNIQA International AG | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA internationale Beteiligungs-Verwaltungs GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Assistance Beteiligungs-GesmbH | Fully consolidated | Vienna | 64.0 | 64.0 |
| UNIQA Real Estate Beteiligungsverwaltung GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Real Estate Finanzierungs GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Group Audit GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Valida Holding AG | At equity | Vienna | 40.1 | 40.1 |
| RHG Management GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Finanzbeteiligung GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Group foreign service companies | ||||
| UNIQA Raiffeisen Software Service Kft. | Fully consolidated | Hungary, Budapest | 60.0 | 60.0 |
| InsData spol. s.r.o. | Fully consolidated | Slovakia, Nitra | 98.0 | 98.0 |
| UNIPARTNER s.r.o. | Fully consolidated | Slovakia, Bratislava | 99.9 | 99.9 |
| UNIQA InsService spol. s.r.o. | Fully consolidated | Slovakia, Bratislava | 99.9 | 99.9 |
| UNIQA Ingatlanhasznosító Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0 |
| UNIQA Szolgáltató Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0 |
| UNIQA Számitástechnikai Szolgáltató Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0 |
| Vitosha Auto OOD | Fully consolidated | Bulgaria, Sofia | 99.8 | 99.8 |
| UNIQA Raiffeisen Software Service S.R.L. | Fully consolidated | Romania, Cluj-Napoca | 60.0 | 60.0 |
| sTech d.o.o. (Erstkonsolidierung: 31.12.2015) | Fully consolidated | Serbia, Belgrade | 100.0 | |
| Poliklinika Medico (Deconsolidation 31.03.2015) | Croatia, Rijeka | 100.0 | ||
| DEKRA-Expert Műszaki Szakértői Kft. | At equity | Hungary, Budapest | 50.0 | 50.0 |
| Financial and strategic domestic shareholdings | ||||
| Medial Beteiligungs-Gesellschaft m.b.H. (seit 30.09.2015 als Vermögenswert, der zur Veräußerung gehalten wird, klassifiziert) |
At equity | Vienna | 29.6 | 29.6 |
| UNIQA Leasing GmbH (First consolidation: 31.12.2015) | At equity | Vienna | 25.0 | 25.0 |
| UNIQA Internationale Anteilsverwaltung GmbH (Deconsolidation 30.09.2015) |
Vienna | 100.0 | ||
| PremiQaMed Holding GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| PremiQaMed Privatkliniken GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Ambulatorien Betriebsgesellschaft m.b.H. | Fully consolidated | Vienna | 100.0 | 100.0 |
| STRABAG SE | At equity | Villach | 13.8 | 13.8 |
| PremiaMed Management GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Beteiligungs-Holding GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Erwerb von Beteiligungen Gesellschaft m.b.H. | Fully consolidated | Vienna | 100.0 | 100.0 |
| Diakonissen & Wehrle Privatklinik GmbH (First consolidation | ||||
| 31.3.2015) PremiQaMed Beteiligungs GmbH (First consolidation |
Fully consolidated Fully consolidated |
Gallneukirchen Vienna |
60.0 100.0 |
|
| 31.3.2015) | ||||
| Real-estate companies | ||||
| UNIQA Real Estate CZ, s.r.o. | Fully consolidated | Czech Republic, Prague | 100.0 | 100.0 |
| UNIQA Real s.r.o. | Fully consolidated | Slovakia, Bratislava | 100.0 | 100.0 |
| UNIQA Real II s.r.o. | Fully consolidated | Slovakia, Bratislava | 100.0 | 100.0 |
| UNIQA Immobilien-Projekterrichtungs GmbH (First consolidation: 30.6.2015) |
Fully consolidated | Vienna | 100.0 | |
| Raiffeisen evolution project development GmbH | At equity | Vienna | 20.0 | 20.0 |
| DIANA-BAD Errichtungs- und Betriebs GmbH | At equity | Vienna | 33.0 | 33.0 |
| UNIQA Real Estate GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| PremiQaMed Immobilien GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Real Estate Zweite Beteiligungsverwaltung GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Company | Type | Location | Equity interest as at 31.12.2015 Figures in percent |
Equity interest as at 31/12/2014 Figures in percent |
|---|---|---|---|---|
| Design Tower GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Aspernbrückengasse Errichtungs- und Betriebs GmbH | Fully consolidated | Vienna | 99.0 | 99.0 |
| UNIQA Real Estate Holding GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Real Estate Dritte Beteiligungsverwaltung GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Design Tower GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
|---|---|---|---|---|
| Aspernbrückengasse Errichtungs- und Betriebs GmbH | Fully consolidated | Vienna | 99.0 | 99.0 |
| UNIQA Real Estate Holding GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Real Estate Dritte Beteiligungsverwaltung GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Real Estate Vierte Beteiligungsverwaltung GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| "Hotel am Bahnhof" Errichtungs GmbH & Co KG | Fully consolidated | Vienna | 100.0 | 100.0 |
| GLM ErrichtungsGmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| EZL Entwicklung Zone Lassallestraße GmbH & Co. KG | Fully consolidated | Vienna | 100.0 | 100.0 |
| Fleischmarkt Inzersdorf Vermietungs GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Praterstraße Eins Hotelbetriebs GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| UNIQA Plaza Irohadáz és Ingatlankezelő Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0 |
| Floreasca Tower SRL | Fully consolidated | Romania, Bucharest | 100.0 | 100.0 |
| Pretium Ingatlan Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0 |
| UNIQA poslovni centar Korzo d.o.o. | Fully consolidated | Croatia, Rijeka | 100.0 | 100.0 |
| UNIQA-Invest Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0 |
| Knesebeckstraße 8 – 9 Grundstücksgesellschaft mbH | Fully consolidated | Germany, Berlin | 100.0 | 100.0 |
| UNIQA Real Estate Bulgaria EOOD | Fully consolidated | Bulgaria, Sofia | 100.0 | 100.0 |
| UNIQA Real Estate BH nekretnine, d.o.o. | Fully consolidated | Bosnia and Herzegovina, | 100.0 | 100.0 |
| Sarajevo | ||||
| UNIQA Real Estate d.o.o. | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0 |
| Renaissance Plaza d.o.o. | Fully consolidated | Serbia, Belgrade | 100.0 | 100.0 |
| IPM International Property Management Kft. | Fully consolidated | Hungary, Budapest | 100.0 | 100.0 |
| UNIQA Real Estate Polska Sp. z o.o. | Fully consolidated | Poland, Warsaw | 100.0 | 100.0 |
| Black Sea Investment Capital | Fully consolidated | Ukraine, Kiev | 100.0 | 100.0 |
| LEGIWATON INVESTMENTS LIMITED | Fully consolidated | Cyprus, Limassol | 100.0 | 100.0 |
| UNIQA Real III, spol. s.r.o. | Fully consolidated | Slovakia, Bratislava | 100.0 | 100.0 |
| UNIQA Real Estate BV | Fully consolidated | Netherlands, Hoofddorp | 100.0 | 100.0 |
| UNIQA Real Estate Ukraine | Ukraine, Kiev | 100.0 | ||
| Reytarske | Fully consolidated | Ukraine, Kiev | 100.0 | 100.0 |
| ALBARAMA LIMITED | Fully consolidated | Cyprus, Nikosia | 100.0 | 100.0 |
| AVE-PLAZA LLC | Fully consolidated | Ukraine, Kharkiv | 100.0 | 100.0 |
| Asena CJSC | Fully consolidated | Ukraine, Nikolaew | 100.0 | 100.0 |
| BSIC Holding | Fully consolidated | Ukraine, Kiev | 100.0 | 100.0 |
| Suoreva Ltd. (Deconsolidation: 31.03.2015) | Cyprus, Limassol | 100.0 | ||
| Sedmi element d.o.o. | Fully consolidated | Croatia, Zagreb | 100.0 | 100.0 |
| Deveti element d.o.o. | Fully consolidated | Croatia, Zagreb | 100.0 | 100.0 |
| Kremser Landstraße Projektentwicklung GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Schöpferstrasse Projektentwicklung GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| "BONADEA" Immobilien GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| "Graben 27 – 28" Besitzgesellschaft m.b.H. | Fully consolidated | Vienna | 100.0 | 100.0 |
| Hotel Burgenland Betriebs GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| R-FMZ Immobilienholding GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Neue Marktgasse Einkaufspassage Stockerau GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| DEVELOP Baudurchführungs- und | Fully consolidated | Vienna | 100.0 | 100.0 |
| Stadtentwicklungs-Gesellschaft m.b.H. | ||||
| Raiffeisen-Fachmarktzentrum Mercurius GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Raiffeisen-Fachmarktzentrum ZWEI GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Raiffeisen-Fachmarktzentrum Ivesis GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Raiffeisen-Fachmarktzentrum VIER GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| Raiffeisen-Fachmarktzentrum SIEBEN GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
| R-FMZ "MERCATUS" Holding GmbH | Fully consolidated | Vienna | 100.0 | 100.0 |
These consolidated financial statements were prepared by the Management Board as of the date of signing and approved for publication.
Pursuant to Section 82(4) of the Austrian Stock Market Act, the Management Board of UNIQA Insurance Group AG hereby confirms that, to the best of our knowledge, the consolidated financial statements, which were prepared in accordance with the relevant accounting standards, give a true and fair view of the financial position, financial performance and cash flows of the Group, and that the Group management report describes the relevant risks and uncertainties which the Group faces.
Vienna, 18 March 2016
Andreas Brandstetter Chairman of the Management Board
Thomas Münkel Member of the Management Board
Hannes Bogner
Member of the Management Board
Kurt Svoboda Member of the Management Board
Wolfgang Kindl Member of the Management Board
We have audited the enclosed consolidated financial statements of UNIQA Insurance Group AG, Vienna, consisting of the consolidated statement of financial position as at 31 December 2015, the separate consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of cash flows and consolidated statement of changes in equity for the financial year ending on this reporting date as well as the Notes to the Consolidated Financial Statements.
Management's responsibility for the consolidated financial statements The legal representatives are responsible for the preparation and proper overall presentation of these consolidated financial statements in accordance with the International Financial Reporting Standards (IFRSs) as applicable in the EU, and the additional requirements of section 245a of the Austrian Commercial Code and section 80b of the Austrian Insurance Supervision Act, and for the internal controls which the legal representatives consider to be required in order to enable the preparation of consolidated financial statements that are free from material intentional or unintentional false representations.
Our responsibility is to provide an assessment of these consolidated financial statements based on our audit. We have conducted an audit of these financial statements in accordance with the Austrian principles of proper auditing of financial statements. These principles require the application of international audit standards (International Standards on Auditing). In accordance with these principles, we must meet the requirements for professional conduct and plan and carry out the audit of the financial statements in such a way that reasonable assurance is obtained regarding whether the consolidated financial statements are free from material misstatement.
An audit of financial statements involves performing procedures to obtain audit evidence about the amounts and other disclosures contained in the consolidated financial statements. The procedures selected depend on the auditor's judgement. This includes an assessment of the risks of material misstatements in the consolidated financial statements, whether due to fraud or error. In evaluating these risks, the auditor takes into account the internal control system which is relevant for preparation and proper overall presentation of the consolidated financial statements by the Group in order to plan audit actions that are reasonable under the given circumstances, but not with the objective of providing an audit assessment on the effectiveness of the Group's internal control system. An audit also includes an assessment of the reasonableness of the accounting principles applied and of the validity of the values estimated by the legal representatives in the accounting along with as assessment of the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our audit assessment.
Our audit did not give rise to any objections. In our opinion, the consolidated financial statements comply with the legal requirements and provide a true and fair view of the Group's financial position and of the Groups' earnings position as at 31 December 2015 for the financial year ending on this reporting date, in accordance with the International Financial Reporting Standards (IFRSs) as applicable in the EU and the additional requirements of section 245a of the Austrian Commercial Code and the supplementary provisions of section 80b of the Austrian Insurance Supervision Act.
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 of the 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 of the Austrian Commercial Code are appropriate.
Vienna, 18 March 2016
PwC Wirtschaftsprüfung GmbH
Liane Hirner Wirtschaftsprüfer (Austrian Certified Public Accountant)
Disclosure, publication and duplication of the consolidated financial statements together with the auditor's report according to Section 281(2) of the Austrian Commercial Code in a form not in accordance with statutory requirements and differing from the version audited by us is not permitted. Reference to our audit may not be made without prior written permission from us.
Owner and publisher UNIQA Insurance Group AG Commercial registry no.: 92933t Data processing register: 0055506
be.public Corporate & Financial Communications Gmbh / www.bepublic.at Rosebud, Inc. / www.rosebud-inc.com Translation and linguistic consulting ASI GmbH / www.asint.at Photography and image editing Outline Pictures / www.outline-pictures.com Paper Munken Pure, 240/120/90 g/m2 Printed by AV+Astoria Druckzentrum GmbH
UNIQA Insurance Group AG Investor Relations Untere Donaustraße 21, 1029 Vienna, Austria Phone: (+43) 01 21175-3773 E-mail: [email protected]
UNIQA's Group Report is published in German and English and can be downloaded as a PDF file from the Investor Relations area on our Group website. The interactive online version is also available at reports.uniqagroup.com.
This report contains statements which refer to the future development of the UNIQA Group. These statements present estimations which were reached upon the basis of all of the information available to us 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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