UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — 9M19 Earnings Presentation
37 slides from UNIQA Insurance's earnings presentation, Nov 20, 2019
Slide 1: UNIQA Insurance Group AG 9M19 Results
UNIQA Insurance Group AG 9M19 Results Robust earnings before taxes reflecting improved combined ratio despite higher costs 20 November 2019 Andreas Brandstetter, CEO Kurt Svoboda, CFO/CRO, CEO UNIQA Austria
Slide 2: 9M19 Highlights, Group Strategy & Results
9M19 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 2
Slide 3: Executive Summary 9M19
Executive Summary 9M19 ▪ Gross written premiums(a) slightly increased (1.3%) compared to 9M18 ▪ Net combined ratio improved to 95.9% (96.6% in 9M18) ▪ Net cost ratio at 26.3% (25.1% in 9M18) ▪ Net investment result at EUR 433.4m (EUR 443.7m in 9M18) ▪ Earnings before taxes at EUR 214.7m (EUR 209.6m
Slide 4: Snapshot 9M19
Snapshot 9M19 EURm 9M18 9M19 % Reduction in Life business; Gross premiums written(a) 4.042.3 4.095.7 1.3% Continued growth in P&C and Premiums earned (retained) 3.571.4 3.642.3 2.0% Health Net investment income 443.7 433.4 -2.3% Tailwinds from capital markets; Insurance benefits 2.763.9 2.783.2 0.7
Slide 5: Key Financial Indicators
Key Financial Indicators Earnings per share (EUR) Regulatory Solvency Capital Position (%) 0.79 250% 248% 216% 194% 202% 0.54 0.54 0.48 0.37 9M15 9M16 9M17 9M18 9M19 FY15 FY16 FY17 2018 6M19 Operating Return on Equity (%) Book value per share (EUR) 17.2% 11.07 10.34 10.29 10.20 10.0% 10.2% 10.5% 10.
Slide 6: Business Performance
9M19 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 6
Slide 7: Continued growth in P&C and Health business; Ongoing reduction in Life business
Continued growth in P&C and Health business; Ongoing reduction in Life business Gross written premium(a) per business line EURm 0.3% 3.0% 1.3% 5.211 5.293 5.309 1.530 5.048 4.042 4.096 254 113 25 441 85 80 169 1.267 335 1.285 1.281 1.336 1.244 959 1.358 25 28 30 25 994 1.367 1.357 342 322 302 311 28
Slide 8: Cost Ratio increased to 26.3% driven by higher CAPEX and DAC amortization
Cost Ratio increased to 26.3% driven by higher CAPEX and DAC amortization in Life business Cost ratio (net) (%), Costs (EURm) 3.0% 4.1% 1.286 1.315 363 1.276 347 350 1.190 7.0% 322 309 1.019 417 420 463 952 346 139 120 127 108 103 356 324 212 228 210 220 62 52 58 47 47 26.6% 25.9% 28.3% 157 25.0% 26
Slide 9: P&C: COR improved to 95.9%
P&C: COR improved to 95.9% Combined ratio (net) (%) -2.8 pp 97.9% 98.1% 97.2% 98.3% 97.5% 96.8% 95.8% 96.3% -0.8 pp 93.0% 96.6% 95.9% 30.4% 32.4% 31.6% 31.4% 30.2% 33.5% 31.6% 33.0% 29.4% 30.7% 31.3% 67.5% 65.7% 65.9% 65.4% 65.6% 63.7% 64.7% 65.4% 63.6% 66.0% 64.5% 2015 2016 2017 2018 3Q18 4Q18 1Q19
Slide 10: P&C: Premiums earned increased due to balanced growth in AT and CEE
P&C: Premiums earned increased due to balanced growth in AT and CEE Net premiums earned EURm Investment result EURm Earnings before taxes EURm 3.8% -54.0% 40.8% 44 683 34 36 31 666 32 13 29 658 658 17 645 10 1 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 ▪ On net earned
Slide 11: Health: Long term growth continued
Health: Long term growth continued Cost – benefit ratio (%) Investment result EURm Earnings before taxes EURm 2.5% 104% -35.9% 103% 103% 51 99% 97% 42 41 19% 16% 16% 14% 20% 29 19 30 29 28 85% 84% 88% 88% 77% 8 2 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 Benefit Rati
Slide 12: Life: Earnings contribution holding up despite low interest rates
Life: Earnings contribution holding up despite low interest rate environment in 9M19 Reserve (net) EURbn Investment result EURm Earnings before taxes EURm -7.9% 16.000 16.016 113 15.762 265.5 15.498 15.483 % 99 98 42 91 35 51 54 50 16 61 32 16 4 6 3Q18 4Q18 1Q19 2Q19 3Q19 3Q18 4Q18 1Q19 2Q19 3Q19 3Q
Slide 13: Investment Activity
Investment Activity Investment income EUR 281 ▪ Net investment result of EUR 433m in 9M19 (EUR 209 218 444m in 9M18) 191 190182 200 179 167170 158160 142 145 143145158134 135 132 ▪ Current income of EUR 386m in 9M19 (EUR 394m in 108 101 9M18) 76 ▪ Contribution from participation in STRABAG: EUR 29m
Slide 14: Outlook
9M19 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 14
Slide 15: Outlook FY19
Outlook FY19 ▪ UNIQA expects slightly growing GWP in FY19: ▪ P&C growth of roughly 2% driven by Austria and CEE ▪ Health growth on long term trend of approximately 3% ▪ Life: GWP decrease to continue mainly due to muted demand in Austria ▪ Combined Ratio will improve compared to FY18 (96.8%) ▪ Net i
Slide 16: Operating Segments
9M19 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 16
Slide 17: UNIQA Austria
UNIQA Austria EURm 9M18 9M19 Δ yoy Gross premiums written(a) 2.853.4 2.905.9 1.8% Reinsurers' share -550.0 -574.8 4.5% Change due to premiums earned -48.3 -47.8 -1.1% Net Premiums Earned(a) 2.255.1 2.283.4 1.3% Savings portion included in premiums -153.6 -153.6 0.0% Premiums Earned 2.101.5 2.129.8 1
Slide 18: UNIQA Austria Segments
UNIQA Austria Segments P&C Health Life EURm 9M18 9M19 Δ yoy 9M18 9M19 Δ yoy 9M18 9M19 Δ yoy Gross premiums written(a) 1.330.3 1.376.7 3.5% 758.2 795.8 5.0% 764.9 733.4 -4.1% Reinsurers' share -518.1 -549.9 6.1% -0.2 -4.4 2047.4% -31.8 -20.5 -35.5% Change due to premiums earned -45.9 -42.7 -7.0% -2.1
Slide 19: UNIQA International
UNIQA International EURm 9M18 9M19 Δ yoy Gross premiums written 1.174.8 1.175.7 0.1% Reinsurers' share -372.3 -345.4 -7.2% Change due to premiums earned -21.8 -27.2 24.8% Net Premiums Earned 780.7 803.1 2.9% Savings portion included in premiums -72.5 -71.4 -1.5% Premiums Earned 708.2 731.7 3.3% Net
Slide 20: UNIQA International Segments
UNIQA International Segments P&C Health Life EURm 9M18 9M19 Δ yoy 9M18 9M19 Δ yoy 9M18 9M19 Δ yoy Gross premiums written 806.3 811.7 0.7% 59.6 59.7 0.1% 308.9 304.3 -1.5% Reinsurers' share -357.1 -337.5 -5.5% -7.7 -1.9 -74.9% -7.4 -6.0 -19.0% Change due to premiums earned -18.7 -18.5 -1.2% -3.0 -8.9
Slide 21: UNIQA International – country deep dive
UNIQA International – country deep dive in EURm GWP(a) Non-life GWP(a) Health GWP(a) Life GWP(a) Total 9M19 % to PY 9M19 % to PY 9M19 % to PY 9M19 % to PY FX adjusted (b) Western Europe (WE) 7.1 -73% 0.0 -100% 0.0 7.1 -83% -83% Western Europe (WE) 7.1 -73% 0.0 -100% 0.0 7.1 -83% -83% Czech Republic
Slide 22: UNIQA International – country deep dive
UNIQA International – country deep dive in EURm Premiums earned (a) Net investment income Combined ratio P&C Cost ratio Earnings before taxes 9M19 9M18 9M19 9M18 9M19 9M18 9M19 9M18 9M19 9M18 (b) Western Europe (WE) 0.8 12.4 0.0 0.3 305.1% 113.3% 219.5% 16.8% -1.5 -0.2 Western Europe (WE) 0.8 12.4 0
Slide 23: Group Balance Sheet
Group Balance Sheet Liabilities Assets EURm Sep 19 Dec 18 EURm Sep 19 Dec 18 A. Total equity 3.415.3 2.986.6 14.4% A. Tangible assets 372.2 311.1 19.6% B. Land and buildings held as financial I. Shareholder equity 3.398.4 2.972.1 14.3% investments 1.103.8 1.104.1 0.0% C. Intangible assets 1.652.3 1.
Slide 24: Shareholders' equity (excluding minority interest)
Shareholders‘ equity (excluding minority interest) EURm 75 3.398 163 167 497 2.972 Valuation of financial Dividend Profit attributable Other Sep 19 Dec 18 instruments AFS to shareholders Shareholders’ equity increased in 9M19: ▪ Increase of revaluation reserves due to positive market movements in 9M
Slide 25: Group Income Statement
Group Income Statement EURm 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19 Δ yoy Gross premiums written(a) 1.243.9 1.267.2 1.530.0 1.285.0 1.280.8 4.042.3 4.095.7 1.3% Reinsurers' share -40.7 -45.7 -58.5 -38.9 -33.4 -145.9 -130.8 -10.3% Change due to premiums earned 54.2 62.7 -176.7 37.3 41.7 -98.9 -97.6 -1.4%
Slide 26: Group Operating Segments
Group Operating Segments P&C Health Life EURm 9M18 9M19 Δ yoy 9M18 9M19 Δ yoy 9M18 9M19 Δ yoy Gross premiums written(a) 2.145.7 2.201.5 2.6% 817.8 855.5 4.6% 1.078.9 1.038.8 -3.7% Reinsurers' share -113.3 -110.3 -2.7% -1.9 -2.1 8.5% -30.7 -18.5 -39.7% Change due to premiums earned -93.5 -83.9 -10.3%
Slide 27: Other Segments
Other Segments Consolidation Reinsurance Group Functions EURm 9M18 9M19 Δ yoy 9M18 9M19 Δ yoy 9M18 9M19 Δ yoy Gross premiums written -846.8 -859.7 1.5% 860.9 873.8 1.5% 0.0 0.0 N/A Reinsurers' share 849.8 860.5 1.3% -73.3 -71.2 -2.9% 0.0 0.0 N/A Change due to premiums earned 3.0 3.3 10.1% -31.8 -25.
Slide 28: Asset Management
9M19 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 28
Slide 29: Fixed income portfolio
Fixed income portfolio Overall composition Rating distribution Dec18 EUR 16.2bn Governent Bonds EU 8% 2% 24% 24% 25% 25% 25% 23% Covered Bonds 19% 14% 16% 45% Corporates 6% 7% 4% 4% 14% Government Bonds Non-EU Financials AAA AA A BBB <BBB Not rated 17% Sep 19 Dec 18 Other By segment Sep 19 EUR 17.1b
Slide 30: Fixed income portfolio: Government and government related
Fixed income portfolio Government and government related Overall composition EUR 9.8bn Rating distribution 2% Rest of Europe 4% 4% Austria 30.7% 3% Rest of World 6% 35% Poland 7% Belgium 26.3% France 7% Europa Slovakia 7% 12% Ireland 19.2% 12% Supranational Organisations 18.2% By segment Italy 20% 5
Slide 31: Fixed income portfolio: Corporates including financials
Fixed income portfolio Corporates including financials Overall composition EUR 4.0bn Rating distribution 4% 2% United States of America 1% 5% Rest of Europe 21% 38.6% 7% Austria France 33.4% Germany 16% 16% United Kingdom Rest of World Europa 14% 14% Netherlands By segment Italy 13.8% 20% 9.0% 32% 4
Slide 32: Fixed income portfolio: Corporate thereof financials
Fixed income portfolio Corporate thereof financials Overall composition EUR 1.4bn Rating distribution 6% United States of America 46.3% 2% 4% Austria 5% 31% Germany 10% Rest of World France 4% Netherlands United Kingdom 16% 21% Switzerland Rest of Europe By segment 19.4% 12.4% 11.4% 24% 7.1% 45% P&C
Slide 33: Fixed income portfolio: Covered bonds
Fixed income portfolio Covered bonds Overall composition EUR 2.8bn Rating distribution 1% Rest of Eurpoe 3%4% 21% Austria 7% France 66.7% 3% Germany 6% United Kingdom Australia 16% 9% Netherlands Spain 11% Rest of World 19% Belgium By segment Norway 25.7% 15% 15% P&C 4.0% 2.9% Health 0.0% 0.7% 70% L
Slide 34: Shareholder Information
9M19 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 34
Slide 35: Shareholder structure
Shareholder structure Current shareholder structure Free float geographic distribution 0.7% 2.5% 1.0% 10.9% 15.1% 28.7% 49.0% 26.8% 36.9% 28.3% UNIQA Versicherungsverein Privatstiftung Free Float Continental Europe Raiffeisen Bank International Austria North America Collegialität Versicherungsverein
Slide 36: Shareholder information and contacts
Shareholder information and contacts Dividend per share / Pay out ratio General information UNIQA Insurance Group AG Listed on the Vienna Stock Exchange since 1999 309m common shares 41% 38% 45% 44% 102% 91% 67% ISIN: AT0000821103 ▪ Bloomberg: UQA AV 0.53 0.51 ▪ Reuters: UNIQ.VI 0.49 0.47 ▪ Vienna S
Slide 37: Disclaimer
Disclaimer ▪This Presentation is being provided for information purposes to selected recipients only and does not constitute or form part of, and should not be construed as an offer or invitation or recommendation to, purchase or sell or subscribe for, or any solicitation of any offer to purchase or