UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — Investor Presentation (April 2015)
24 slides from UNIQA Insurance's investor presentation, Apr 15, 2015
Slide 1: Economic Capital and Embedded Value 2014
UNIQA Insurance Group AG Economic Capital and Embedded Value 2014 15 April 2015 Kurt Svoboda, CFRO
Slide 2: Agenda
Methodology Economic Capital Results Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 2
Slide 3: Group Economic Capital Figures: Methodology
Group Economic Capital Figures Methodology Disclosure of Economic Capital Model (ECM) results: UNIQA discloses ECM results 2014 on the basis of the underlying and published methodology of the Group Economic Capital Model Economic capital is a key figure for steering UNIQA Group UNIQA disclos
Slide 4: Group Economic Capital Figures: Methodology
Group Economic Capital Figures Methodology UNIQA Group economic capital model is based on Solvency II standard approach Spread risk and concentration risk are valued on the basis of an internal approach (government bonds and ABS are treated like corporate bonds, therefore a risk charge is applie
Slide 5: Agenda
Methodology Economic Capital Results Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 5
Slide 6: Group ECR Results
Group ECR Results Economic Capital Ratio Economic capital position (EUR mn) 161% 150% The capital requirement for government bonds that are assumed to be risk-free in the Solvency II standard approach 4,442 4,080 amounts to a risk charge of EUR 535mn after diversification in the economic capital m
Slide 7: ECR Development by risk module
Group ECR Results Development by risk module ECR-Quota decreased from (EUR mn) 161% in 2013 to 150% in 2014 4,500 +50% 4,080 4,000 ECR decrease by EUR 39.5mn 167 758 Subordinated 155 600 More accurate calculation of the 454 3,500 adjustment due to deferred taxes leads to a higher tax adj. that
Slide 8: UNIQA Group market risk profile
Group ECR Results UNIQA Group market risk profile Market risk Asset Allocation 13% 2013 2014 Interest Rate Risk 15% 2.1% 1.2% 11% 0.3% 0.2% 5.8% Equity Risk 13% 8.6% 3.3% 3.5% 7.2% 17% 8.5% Property Risk 17% 44% Spread Risk 39% 77.2% 82.2% Concentration Risk 6% 8% Currency Risk 10% 7% Equities Alter
Slide 9: UNIQA Group underwriting risk profile
Group ECR Results UNIQA Group underwriting risk profile Life underwriting risk Health underwriting risk Non-life underwriting risk 1% 2% Disability Legal 2% 1% 3% 6% CAT 8% Mortality 14% Accident & Health 7% 11% 19% Longevity 10% TPL 12% 13% 6% 8% Expense 14% 5% Mortality Motor TPL 26% 27% Lapse 28%
Slide 10: IFRS reconciliation and economic value creation
Group ECR Results IFRS reconciliation and economic value creation IFRS reconciliation (EUR mn) Own Funds development 2014 (EUR mn) +4,442 0 Position 2014 2013 IFRS total equity 3,102 2,790 -237 other - Goodwill -452 -472 +4 - Value of business in force -38 -38 - Intangible assets -28 -24 +4,080 - De
Slide 11: Agenda
Methodology Economic Capital Results Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 11
Slide 12: Group Embedded Value: Methodology
Group Embedded Value Methodology Disclosure of Group Embedded Value (GEV) results: UNIQA discloses GEV results 2014 on the basis of the Market Consistent Embedded Value©(a) (MCEV) principles Includes MCEV using bottom-up, market consistent methodology for main Life and Health businesses Spli
Slide 13: Agenda
Methodology Economic Capital Results Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 13
Slide 14: Group Embedded Value
Group Embedded Value Results Group Embedded Value Life & Health Property & Casualty Total Change GEV changed by over -0.4% to EUR 4,175mn after minorities, in EUR mn 2014 2013 2014 2013 *) 2014 2013 *) period Decrease driven by Free surplus 482 334 value of in-force business due to lower Require
Slide 15: Life & health analysis of change
Group Embedded Value Life & health analysis of change 340 320 Restatement and opening 106 Rollforward adjustments include Capital and dividend 2,689 171 flows (EUR -159mn) 2 2,593 Foreign exchange 53 variance (EUR -12mn) 2,518 234 Assumptions mainly stem from the and Variance change RUB to EUR
Slide 16: Embedded Value split by regions
Group Embedded Value Results split by regions Value of UNIQA Embedded Value by region 2014 2013 driven by Austria after minorities, in EUR mn Austria Italy CEE Total Austria Italy CEE Total New business Free surplus 422 43 17 482 264 33 38 334 margin decreases to 1.7% Required capital 425 77 36
Slide 17: Agenda
Methodology Economic Capital Results Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 17
Slide 18: Life & health sensitivities
Group Embedded Value Life & health sensitivities after minorities, in EUR mn Change in Embedded Value Change in New Business Value MCEV remains sensitive against Base value 2,593 100% 53 100% decreasing interest EV change by economic factors rates due to traditional life Risk free yield curve -100
Slide 19: Implied Discount Rate / IRR / Free Surplus Generation
Group Embedded Value Implied Discount Rate / Internal Rate of Return / Free Surplus Generation Implied Discount Rate 2014 Internal Rate of Return 2014 in %, based on in-force business in %, based on new business Implied discount rate on Group level slightly 20.71% increases due to higher options a
Slide 20: Agenda
Methodology Economic Capital Results Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 20
Slide 21: Economic assumptions
Economic assumptions MCEV and ECR Consistent assumptions for MCEV and ECR valuation Reference rates based on swap rates as at 31 December 2014 including a liquidity premium (volatility adjustment). The liquidity premium is derived from observable market data and based on the approach used for in
Slide 22: Agenda
Methodology Economic Capital Results Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 22
Slide 23: Glossary
Glossary ABS Asset Backed Securities ALM Asset Liability Management ANAV Adjusted Net Asset Value CAT Catastrophe Risk CDR Counterparty Default Risk EC European Commission ECM Economic Capital Model: UNIQA‘s approach for calculating a SCR based on the standard approach with deviation of the technica
Slide 24: Disclaimer
Disclaimer Cautionary statement regarding forward looking statements This presentation contains forward-looking statements Forward-looking statements involve inherent risks and uncertainties, and it might not be possible to achieve the predictions, forecasts, projections and other outcomes descr
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