Uniqa Insurance Group Ag · VIE:UQA
Uniqa Insurance — UNIQA Group — Investor Presentation (November 2006)
31 slides from Uniqa Insurance's investor presentation, November 2006
Slide 1: Group European Embedded Value 2005 and Increased Earnings Programme 2007-2010
UNIQA Group European Embedded Value 2005 and Increased Earnings Programme 2007-2010 Konstantin Klien CEO Hannes Bogner CFO Vienna November 2006
Slide 2: Group European Embedded Value 2005
Group European Embedded Value 2005
Slide 3: Group European Embedded Value - Introduction
Group European Embedded Value - Introduction n First publication of Group European Embedded Value (GEV) results n Includes European Embedded Value (EEV) using bottom-up, market consistent methodology compliant with CFO Forum Principles for main Life and Health businesses in Austria n Adjusted net as
Slide 4: Methodology (1)
Methodology (1) n EEV for conventional life business based on stochastic cashflow projections using market consistent capital market scenarios. Projections allow for management actions (e.g. profit participation or asset allocation) n Explicit allowance for cost of guarantees and options n Assumed p
Slide 5: Methodology (2)
Methodology (2) n GEV allows for consolidation adjustments and minority interests n Goodwill and value of business in force (VBI) eliminated in respect of businesses included in the scope of the EEV calculations n EEV defined as: - Adjusted net asset value - plus value of in-force (VIF) - less time
Slide 6: Results before Minority Interests
Results before Minority Interests € mn Life & Health Property & Total Change Casualty 2005 2004 2005 2004 2005 2004 ANAV 687.6 630.6 1,006.6 755.6 1,694.2 1,386.2 22.2% VIF 875.9 897.2 n/a n/a 875.9 897.2 -2.4% FOG -51.1 -8.7 n/a n/a -51.1 -8.7 487.4% CoCNMR -108.4 -101.7 n/a n/a -108.4 -101.7 6.6%
Slide 7: Analysis of Change Life & Health
Analysis of Change Life & Health 1,417.4 EEV at Dec 31, 2004 before dividends EEV at 31.12.04 before minority interests 16.6 Modelling changes Changes to management rules Dividends paid -37.2 Dividends paid by Life and Health businesses Roll forward 89.7 Market consistent and RDR roll forward Change
Slide 8: Minority Interests
Minority Interests The disclosure shows the results before and after „Austria Ins. and Collegialität Ins.“ minority interests. UNIQA Versicherungen AG 36.6% UNIQA Personenversicherung AG 64.4% 18.3% 81.7% FinanceLife Lebensversicherung AG page 8
Slide 9: Value of Life and Health New Business
Value of Life and Health New Business € mn before minority interests Life & Health NBV 53.6 Annual Premium Equivalent (APE) 268.1 APE-Ratio 20.0% n Exceptionally high volumes of new business in FinanceLife due to sales of „geförderte Zukunftsvorsorge“ page 9
Slide 10: EEV-Sensitivities Life&Health (in € mn)
EEV-Sensitivities Life&Health (in € mn) As % Value of Base Base value 1,404.0 +1% 1,363.6 97.1% Risk Discount Rate * -1% 1,488.9 106.0% +1% 1,630.0 116.1% Change in Yield Curve -1% 1,033.7 73.6% Equity and Property Prices -10% 1,338.5 95.3% Administration Expenses -10% 1,386.8 98.8% -10% 1,407.3 100
Slide 11: VNB-Sensitivities Life&Health (in € mn)
VNB-Sensitivities Life&Health (in € mn) As % Value of Base Base value 53,6 +1% 45,7 85,3% Risk Discount Rate * -1% 63,6 118,7% +1% 69,7 130,0% Change in Yield Curve -1% 24,5 45,7% Administration Expenses -10% 48,6 90,7% -10% 54,7 102,1% Lapses +10% 53,2 99,3% -5% 55,5 103,5% Mortality +5% 52,6 98,1%
Slide 12: Reconciliation of IFRS equity to ANAV
Reconciliation of IFRS equity to ANAV 2005 2004 Consolidated IFRS equity 1.133,7 860,2 Goodwill and VIF for EEV companies -67,5 -71,2 Differences in valuation of assets and liabilities 219,6 199,2 Additional value from non-quoted eq. holdings 408,4 398,0 Adjusted Net Asset Value bef. Minorities 1.69
Slide 13: EEV Assumptions (2004 and 2005)
EEV Assumptions (2004 and 2005) 2005 2004 Interest rate volatility (*) 1 year 2,93% 2,41% 2005 2004 5 years 3,22% 3,23% 20,40% 16,40% 10 years 3,48% 3,88% Equity volatility 15 years 3,70% 4,24% 2005 2004 20 years 3,80% 4,48% 22,37% 21,75% 25 years 3,85% 4,58% Expense/Medical inflation 2005 2004 The
Slide 14: Disclaimer
Disclaimer Cautionary statement regarding forward-looking information n This presentation contains forward-looking statements. n Forward-looking statements involve inherent risks and uncertainties, and it might not be possible to achieve the predictions, forecasts, projections and other outcomes des
Slide 15: Increased Earnings Program 2007-2010
Increased Earnings Program 2007-2010
Slide 16: Basic Considerations for PEP
Basic Considerations for PEP n Potential for optimisation at individual level has largely been exhausted n ...but there is still potential for optimisation if we look at the value-added chains n ..new potential for improvement has to be found by innovative and creative efforts which concentrate on i
Slide 17: Source of Funds / Use of Funds Austria
Source of Funds / Use of Funds Austria source of funds use of funds material costs expansion of sales personnel costs 120 mio € IT & technology 40 mio € commissions brand awareness underwrtg+claims m. infrastructure finances 80 mio € profit on ord. act. 160 mio € potential total Austria 200 million
Slide 18: Source of Funds / Use of Funds International
Source of Funds / Use of Funds International source of funds use of funds material costs expansions of sales personnel costs IT & technology 40 mio € commissions brand awareness underwritg+claims mgmt infrastructure profit on ord. act. 40 mio € potential total international 80 mio € page 18
Slide 19: Source of Funds / Use of Funds Austria + International
Source of Funds / Use of funds Austria + International source of funds use of funds domestic 200 mio Euro domestic 40 mio Euro abroad 80 mio Euro abroad 40 mio Euro prof. o.o.activ. 200 mio Euro total source 280 mio Euro total use 280 mio Euro page 19
Slide 20: Combined Ratio Targets Compared to Competition
Combined Ratio Targets Compared to Competition IRP combined ratio gross 2005 102% 100.1% 100% 97.0% 98% 95.6% 96% 94% 92% 90.7% 89.9% 90% 88% 86% 84% UNIQA AXA Group Allianz Ergo Group Generali Group Group Group page 20
Slide 21: Combined Ratio Targets Compared to Competition
Combined Ratio Targets Compared to Competition IRP combined ratio gross 2005 -1.4on%an - pp average this means --6.2 7.0 %% an --improvement pp pp of 102% (20 (87 (98mio mio mio Euro) 70 Euro) Euro) mio Euro in order 100.1% 100% 97.0% 98% to reach an 95.6% 96% international level 94% 92% 90.7% 89.9%
Slide 22: Increased Earnings Programme Costs UNIQA Group
Increased Earnings Programm Costs UNIQA Group UNIQA - Group goal 2007-2010: cost ratio reduction (incl. commission) from 2006 26.1 % to 2010 22.8 % domestic international from 23.2% from 33.6% to 20.9% to 29.2% approx. - 14% approx. - 13% cost ratio based on premium volume incl. 10 % single premium
Slide 23: Leadership Role: Cost Ratio Austria
Leadership Role: Cost Ratio Austria 35% 30% -14.5% ≅ 120 mio € 25% 20% 23.5% 23.7% 22.5% 21.7% 20.9% 20.1% 15% actual 2005 FC 1 2006 2007 e 2008 e 2009 e 2010 e page 23
Slide 24: Leadership Role: Cost Ratio International
Leadership Role: Cost Ratio International 35% -12.6% ≅ 74 mio € 30% 25% 33.4% 33.6% 32.7% 31.7% 30.7% 29.2% 20% 15% acutal 2005 plan 2006 2007 e 2008 e 2009 e 2010 e page 24
Slide 25: Source of Funds / Use of Funds Austria Status
Source of Funds / Use of Funds Austria Status source of funds use of funds material costs expansion of sales personnel costs 120 mio € IT & technology 40 mio € commissions 82.2 mio € brand awareness underwrtg+claims m. infrastructure finances 80 mio € profit on ord. act. 160 mio € 87.4 mio € potenti
Slide 26: Source of Funds / Use of Funds International Status
Source of Funds / Use of Funds International Status source of funds use of funds material costs expansions of sales personnel costs IT & technology 40 mio € commissions brand awareness underwritg+claims mgmt infrastructure profit on ord. act. 40 mio € potential 76.7 mio € total international 80 mio
Slide 27: Chances – Risks in Practice
Chances – Risks in Practice linear implementation vs „plan hockey“- effect € 280 yes no 2006 2010 t page 27
Slide 28: Mid Term Profit Targets
Mid Term Profit Targets IEP Profit Target 500 400 300 Mio € profit before tax 200 100 0 2006 2007 2008 2009 2010 Year page 28
Slide 29: "LSI"-Strategy Estimated Savings Potential Austria
„LSI“-Strategy Estimated Savings Potential Austria cost savings of 74 million Euro are spread as follows: lean structure 52% streamlining 2% chances for the future with intra-company 9% structural changes outsourcing material cost 37% page 29
Slide 30: "LSI"-Strategy Estimated Savings Potential International
„LSI“-Strategy Estimated Savings Potential International cost savings of 21 million Euro are spread as follows: lean structure 85% streamlining 0% chances for the future with intra-company 0% structural changes outsourcing material cost 15% page 30
Slide 31: Principles: Lean Structures – Streamlining – Intra-Company Outsourcing
Principles: Lean Structures – Streamlining – Intra- Company Outsourcing intra-company lean structure streamlining outsourcing structures & tasks elimination of tasks outsourcing - bundling of organisational without replacement - to regional companies units new - „nice to have‘s“ focus in PEP III - t