UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — FY2013 Earnings Presentation
50 slides from UNIQA Insurance's earnings presentation, Feb 28, 2014
Slide 1: UNIQA Insurance Group AG FY 2013 IFRS Results
UNIQA Insurance Group AG FY 2013 IFRS Results Strong net income despite challenging environment 28 February 2014 Andreas Brandstetter, CEO Hannes Bogner, CFO Kurt Svoboda, CRO
Slide 2: Agenda
Agenda 1. Highlights FY 2013 2. Business performance 3. Investments 4. Conclusion and outlook Appendix: Additional information 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 1
Slide 3: Executive summary
Executive summary • GWP(a) increased by 6.2% to EUR 5.9bn • Cost ratio improved to 24.1% compared to 25.0% in 2012 • Profit on ordinary activities grew 49.7% to EUR 305.6m • Due to improved operating result, substantially reduced minorities and a positive result from discontinued operations consolid
Slide 4: Continued top and bottom line growth
Continued top and bottom line growth €m 2012 2013 % Gross premiums written(a) 5,543.1 5,885.5 6.2% Premiums earned (retained)(a) 5,273.8 5,638.1 6.9% APE (Life) gross 1,607.9 1,742.9 8.4% Net investment income 791.5 780.0 (1.5)% Insurance benefits 3,758.5 3,955.3 5.2% Operating expenses (net) 1,319
Slide 5: A clear long-term strategy
A clear long-term strategy Our target 2015 Our long-term ambition (embedded in UNIQA 2.0) Focus on our business as primary insurer in our two core markets Austria and CEE Increase profitability through Leading primary insurer in Austria and CEE, with significantly UNIQA Austria restructuring improve
Slide 6: UNIQA 2.0: Continues to be on track
UNIQA 2.0: Continues to be on track Since the start of UNIQA 2.0 we have delivered on our promises • Concentration on stable market Austria and Development of profit on ordinary activities (€m) growth region CEE Concentrate on core insurance business • Simplified corporate structure • Sale of non-co
Slide 7: Underlying earnings and extraordinary items
Underlying earnings and extraordinary items 2013 consolidated net profit (€m) 52 50 302 (25) 306 (16) (7) 283 (69) (4) Underlying Sale of IT & OPEX RfB Financing EBT as Discountinued Taxes Minorities Consolidated EBT Hotels costs reported operations profit • One-off gain on sale of Hotel Group in 1Q
Slide 8: GWP up 6.2%; comfortably above plan
GWP(a) up 6.2%; comfortably above plan • P&C: strategic decision to slow growth in CEE motor business and Ukraine (aviation) in second half of 2013 • Health: continued growth in line with expectations • Life – recurring: solid growth across all markets • Life – single: strong demand especially in It
Slide 9: All major segments contributed to growth
All major segments contributed to growth 2013 GWP by operating segment (€m)(a) (47.8)% +11.3% +6.2% 38 2,162 +7.2% 5,886 +3.6% 878 2,807 UNIQA Raiffeisen UNIQA Reinsurance, Group Group Austria Insurance International Functions & Consolidation • UNIQA Austria achieved 3%+ growth in P&C, Health and Li
Slide 10: Cost ratio decreased to 24.1%
Cost ratio decreased to 24.1% Operating expenses (net) (€m) Cost ratio (net) (%) 1,413 1,358 1,319 32.0% 28.1% 528 399 415 +3.9% 25.0% 24.1% 25 18.8% 19.0% 19.0% 14.6% 885 920 918 2011 2012 2013 2012 2013 Acquisition expenses Provisions Admin cost UNIQA Austria Raiffeisen Insurance UNIQA Internation
Slide 11: P&C: COR affected by one-off charges in 4Q
P&C: COR affected by one-off charges in 4Q Annual combined ratio (net) (%) Quarterly combined ratio (net) (%) 104.6 104.9 101.3 99.9 32.9 36.9 32.9 32.9 71.7 68.0 68.4 67.0 (a) 2010 2011 2012 2013 Claims ratio Cost ratio • FY 2013 combined ratio affected by: • Flood in 2Q 1.2 pps • One-off charges i
Slide 12: Life: solid profit in challenging environment
Life: solid profit in challenging environment Profit on ordinary activities (€m) Premiums earned(a) (€m) Cost ratio (net) (%)(b) 177 2,263 +14.5% 19.9 +56.6% 1,976 (2.6)ppt 17.3 113 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 • In CEE and Italy gross written premiums increased more than 20%; In
Slide 13: Health: premium growth continued on resilient business model
Health: premium growth continued on resilient business model Profit on ordinary activities (€m) Premiums earned (€m) Claims ratio (%)(a) 83.8 +3.7% 936 103 (1.7)ppt (18.8)% 903 82.1 84 FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 FY 2013 • Premium growth consistent with longer term trend and expectations
Slide 14: Agenda
Agenda 1. Highlights FY 2013 2. Business performance 3. Investments 4. Conclusion and outlook Appendix: Additional information 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 13
Slide 15: UNIQA Austria
UNIQA Austria Highlights 2013 Segment P&L UNIQA Austria includes UNIQA Österreich Versicherungen AG, Salzburger Landes-Versicherung AG and 50% of Finance Life €m 2012 2013 % Lebensversicherung AG Gross premiums written(a) 2,708.2 2,806.7 3.6% • Premiums earned increased above expectations in a slow
Slide 16: Raiffeisen Insurance
Raiffeisen Insurance Highlights 2013 Segment P&L Raiffeisen Insurance includes Raiffeisen Versicherung AG and 50% of Finance Life Lebensversicherung AG €m 2012 2013 % • Intensified cooperation with Raiffeisen Banking Group is beginning to Gross premiums written(a) 819.4 878.5 7.2% bear fruit Gross
Slide 17: UNIQA International
UNIQA International Highlights 2013 Segment P&L UNIQA International includes UNIQA International AG, UNIQA International Beteiligungsverwaltung GmbH and operative direct €m 2012 2013 % insurance companies in 18 countries Gross premiums written(a) 1,942.8 2,162.4 11.3% • GWP growth above market in C
Slide 18: Reinsurance
Reinsurance Highlights 2013 Segment P&L Reinsurance includes the reinsurance operation Rückversicherungsgesellschaft UNIQA Re in Switzerland and the €m 2012 2013 % reinsurance result of UNIQA Insurance Group AG Gross premiums written 1,280.0 1,633.1 27.6% Premiums earned (retained) 1,096.5 1,073.6
Slide 19: Group Functions and Consolidation
Group Functions and Consolidation Highlights 2013 Segment P&L Group functions and Consolidation includes consolidation effects of intra-group reinsurance, the results of UNIQA Insurance Group €m 2012 2013 % AG (excluding reinsurance), all other holding and service Gross premiums written (1,207.2) (
Slide 20: Agenda
Agenda 1. Highlights FY 2013 2. Business performance 3. Investments 4. Conclusion and outlook Appendix: Additional information 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 19
Slide 21: Investment activity
Investment activity Highlights 2013 Investment income (€m) • The net investment income decreased to €780m including gain on sale of Hotel Group which led to a positive one- off of €52m • The investment portfolio of UNIQA Group increased to €27.4bn at 31 December 2013 • Continued de-risking: Note: Ex
Slide 22: Investment allocation
Investment allocation By product By rating Equit ies Alt ernat ives Part icipat ions 3.1% 3.0% 3.3% Cash 10.2% Real est at e 9.0% Bonds 71.4% Total FY 2012: €21bn Total FY 2013: €22bn Note: Excluding unit-linked funds 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 21
Slide 23: Agenda
Agenda 1. Highlights FY 2013 2. Business performance 3. Investments 4. Conclusion and outlook Appendix: Additional information 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 22
Slide 24: Profit on ordinary activities up by 50% but result burdened by one-off items in 4Q
Profit on ordinary activities up by 50% but result burdened by one-off items in 4Q 2013 summary Quarterly development of EBT (€m) • UNIQA delivered profitable growth despite challenging FY 2013: 306 market environment 117 • Combined ratio (P&C) improved to 99.9% despite flood and one-offs 80 • Under
Slide 25: UNIQA 2.0 on track
UNIQA 2.0 on track 2015 Group target KPIs Premiums earned (retained) CAGR from Total net cost ratio improvement P&C net combined ratio improvement 2012 to 2015 99.9%/ 6.9% yoy 24.1% 98.3%(a) 5%+ 25% 101% 22% 95% 2012 2015 2012 2015 • Improvement of new business margin to clearly above 2.0% for life/
Slide 26: Outlook
Outlook • Economic outlook for Europe and our core markets improved for 2014 • UNIQA 2.0 initiatives well on track • Premium volume is targeted to grow ahead of market growth in our core markets • Focus on further improving cost efficiency and underwriting quality • Low interest rate environment con
Slide 27: Agenda
Agenda 1. Highlights FY 2013 2. Business performance 3. Investments 4. Conclusion and outlook Appendix: Additional information 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 26
Slide 28: Asset allocation
Material reduction in key risk exposures 20.6 20.2 21.3 22.0 Asset allocation Total exposure De-risking measures have led to: • Increase of bond portfolio (mainly driven by government bonds) • Reduction of equity exposure (mainly total return funds and European equities) • Reduction of alternative e
Slide 29: Income statement
Income statement €m 2012 2013 % Gross premiums written(a) 5,543.1 5,885.5 6.2% Gross premiums written(b) 4,864.2 5,157.6 6.0% Premiums earned (retained)(a) 5,273.8 5,638.0 6.9% Premiums earned (retained)(b) 4,623.9 4,935.9 6.7% Income from fees and commissions 35.7 28.3 (20.8)% Net investment incom
Slide 30: Balance sheet
Balance sheet Assets Liabilities €m FY 2012 FY 2013 % €m FY 2012 FY 2013 % Tangible assets 306.8 286.6 2.2% Total equity 2,030.0 2,789.9 37.4% Land and buildings held as financial 1,690.8 1,652.5 (2.3)% investments Subordinated liabilities 450.0 600.0 33.3% Intangible assets 1,417.7 1,462.5 3.2% S
Slide 31: UNIQA Austria – business lines
UNIQA Austria – business lines P&C Austria Life Austria Health Austria 2012 2013 ∆ 2012 2013 ∆ 2012 2013 ∆ GWP(a) (€m) 1,280.9 1,326.2 3.5% GWP(a) (€m) 591.9 614.2 3.8% GWP(a) (€m) 835.4 866.2 3.7% Profit on ordinary Profit on ordinary Profit on ordinary activities (€m) 67.7 82.7 22.2% activities (€
Slide 32: Raiffeisen Insurance – business lines
Raiffeisen Insurance – business lines P&C Raiffeisen Life Raiffeisen 2012 2013 ∆ 2012 2013 ∆ GWP(a) (€m) 134.1 145.7 8.6% GWP(a) (€m) 685.2 732.8 6.9% Profit on ordinary Profit on ordinary 5.2 9.1 74.9% activities (€m) 55.2 55.5 0.6% activities (€m) Net investment Net investment (1.0) 3.5 nm income
Slide 33: UNIQA International – business lines
UNIQA International – business lines P&C International Life International Health International 2012 2013 ∆ 2012 2013 ∆ 2012 2013 ∆ GWP(a) (€m) 1,073.1 1,093.7 1.9% GWP(a) (€m) 795.9 997.3 25.3% GWP(a) (€m) 73.8 71.4 (3.2)% Profit on ordinary Profit on ordinary Profit on ordinary activities (€m) (22.
Slide 34: NBV & NBM
NBV & NBM New business value (€m) New business margin – PVNBP ratio (%) 62 45 41 2.3% 1.9% 1.5% 2011 2012 2013 NBV in €m / Present value of new business premiums (€m) 2,636 2,700 2,382 2011 2012 2013 2,382 2,636 NB margin 2011 2012 2013 PVNBP in €m • Preliminary and unaudited results • Increase in N
Slide 35: Life profit participation in Austria
Life profit participation in Austria Profit sharing as % of base(a) 250 226.7% UNIQA Österreich 200 178.6% 182.4% Raiffeisen 150 123.2% 125.0% 139.1% 134.0% 125.5% 138.3% 97.9% 96.0% 94.0% 85.4% 100 71.8% 78.3% 85,0% 50 0 -50 -100 -150 -139.7% 2006 2007 2008 2009 2010 2011 2012 2013 • Austrian profi
Slide 36: Average Guarantees Austrian Life business
Average Guarantees Austrian Life business Average guaranteed interest rates Austrian life business(a) 3,4 3,33% 3,26% 3,19% 3,2 3,12% 2,99% 2,96% 3,0 2,92% 2,88% 2,85% 2,81% 2,78% 2,8 2,74% 2,61% 2,6 2,56% 2,51% 2,46% 2,4 2,2 2,0 2010 2011 2012 2013 UNIQA Österreich average Austrian market (c) Raiff
Slide 37: 1H 2013 economic capital
1H 2013 economic capital Economic capital ratio (a) 108% 119% 2,865 2,697 3,086 3,201 4% 4% 6% 5% 15% 14% 8% 8% 9% 9% 85% 86% 73% 74% 2012 1H 2013 2012 1H 2013 SCR Own funds Market Life Non-life Health SLT Counter party Tier 1 Subordinated liabilities default (a) Pro forma calculation (NA) 27/02/201
Slide 38: Fixed Income Portfolio
Fixed Income Portfolio Overall composition Ratings Total FY 2012: €15.1bn By segment P& C 18% Healt h 13% Life 69% Total FY 2013: €17.0bn Total FY 2013: €17.0bn 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 37
Slide 39: Fixed Income Portfolio government and government related
Fixed Income Portfolio government and government related By region By rating Total FY 2013: €9.0bn By segment P& C 17% Healt h 12% Life 71% Total FY 2013: €9.0bn 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 38
Slide 40: Fixed Income Portfolio corporates including financials
Fixed Income Portfolio corporates including financials By region By rating Total FY 2013: €4.8bn By segment Total FY 2013: €4.8bn 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 39
Slide 41: Fixed Income Portfolio Corporate thereof financials
Fixed Income Portfolio Corporate thereof financials By region By rating Total FY 2013: €3.5bn By segment Total FY 2013: €3.5bn 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 40
Slide 42: Fixed Income Portfolio covered bonds
Fixed Income Portfolio covered bonds By region By rating 31-Dec-13 54.1% Total FY 2013: €1.5bn By segment P& C 17% 16.4% 15.5% 11.1% Healt h 11% 2.2% 0.7% Life 72% AAA AA A BBB NON- Not rated Investmentgrade Total FY 2013: €1.5bn 27/02/2014 14:36 13bLD0109_Client Pitchbook template_New.pptx 41
Slide 43: Detailed breakdown of UNIQA International results
Detailed breakdown of UNIQA International results Premiums earned Premiums earned Net inves tment Prof it on ordinary in € m incl. s avings portion (retained) income Ins urance benef its Operating expens es activities F Y 2012 F Y 2013 F Y 2012 F Y 2013 F Y 2012 F Y 2013 F Y 2012 F Y 2013 F Y 2012 F
Slide 44: P&C: Segment P&L
P&C: Segment P&L €m FY 2012 FY 2013 % Gross premiums written 2,545.9 2,590.5 1.8% Premiums earned (retained) 2,394.4 2,438.9 1.9% Income from fees and commissions 8.9 10.8 22.0% Net investment income 85.2 98.6 15.6% Other income 22.6 35.8 58.1% Insurance benefits (net) (1,638.8) (1,633.8) (0.3)% Op
Slide 45: Health: Segment P&L
Health: Segment P&L €m FY 2012 FY 2013 % Gross premiums written 909.2 937.6 3.1% Premiums earned (retained) 903.0 936.1 3.7% Income from fees and commissions 0.0 0.7 nm Net investment income 92.6 79.4 (14.2)% Other income 8.1 6.5 (19.9)% Insurance benefits (net) (756.5) (768.7) 1.6% Operating expen
Slide 46: Life: Segment P&L
Life: Segment P&L €m FY 2012 FY 2013 % Gross premiums written(a) 2,088.1 2,357.4 12.9% Gross premiums written(b) 1,409.1 1,629.5 15.6% Premiums earned (retained)(b) 1,326.5 1,560.9 17.7% Income from fees and commissions 26.9 16.8 (37.4)% Net investment income 613.7 602.0 (1.9)% Other income 15.8 21
Slide 47: FX rates
FX rates Conversion rates to € Region 31-Dec-2012 31-Dec-2013 Swiss franc CHF 1.2072 1.2276 Czech koruna CZK 25.1510 27.4270 Hungarian forint HUF 292.3000 297.0400 Croatian kuna HRK 7.5575 7.6265 Polish zloty PLN 4.0740 4.1543 Bosnia-Herzegovina convertible mark BAM 1.9558 1.9558 Romanian leu RON 4.
Slide 48: Shareholding structure
Shareholding structure Current shareholder structure Geographical split of free float Collegialit ät Versicherungs Rest of verein Treasury Rest of shares Europe World Privat st ift ung 2.1% 2.3% 0.3% 6.5% Swit zerland 4.3% Free float Germany 35.4% 6.7% Aust ria UK Privat st ift ung 33.6% 30.6% Polan
Slide 49: Shareholder information and contacts
Shareholder information and contacts General information Contact details • Listed since 1999 on the Vienna Stock Exchange UNIQA Insurance Group AG • 309m common shares Investor Relations • ISIN: AT0000821103 Michael Oplustil, Stefan Glinz Dividend per share (in €) 133% - 41% 38% 0.40 0.35 Address: U
Slide 50: Disclaimer
Disclaimer This presentation (the "Presentation"), and the information contained therein, is not directed to, or intended for viewing, release, distribution, publication or use by (directly or indirectly, in whole or in part), any person or entity that is a citizen of, or resident or located in, the