UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — H1 2018 Earnings Presentation
45 slides from UNIQA Insurance's earnings presentation, Aug 22, 2018
Slide 1: UNIQA Insurance Group AG 6M18 Results
UNIQA Insurance Group AG 6M18 Results Earnings before taxes improved by 47.5 percent to EUR 140.8m 22 August 2018 Andreas Brandstetter, CEO Kurt Svoboda, CFO/CRO, CEO UNIQA Austria
Slide 2: 6M18 Highlights
6M18 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 6M18
Executive Summary 6M18 Gross written premiums(a) remained flat compared to 6M17 Net combined ratio slightly up at 97.1% (96.8% in 6M17) Net cost ratio at 25.3% (25.0% in 6M17) Net investment result increased to EUR 288.9m (EUR 233.5m in 6M17) Earnings before taxes improved to EUR 140.8m (E
Slide 4: Snapshot 6M18
Snapshot 6M18 EURm 6M17 6M18 % Planned reduction in Life Gross premiums written(a) 2,798.6 2,798.4 0.0% business; Continued growth in Premiums earned (retained) 2,314.9 2,385.5 3.0% P&C and Health Net investment income 233.5 288.9 23.7% Including one-off gain from sale of Casinos AT stake in 1Q18 (
Slide 5: Key Financial Indicators
Key Financial Indicators Earnings per share (EUR) Regulatory and Economic Capital Position (%) 0.51 SCR ECR 250% 257% 0.40 215% 210% 214% 0.36 194% 202% 182% 153% 150% 0.22 0.13 6M14 6M15 6M16 6M17 6M18 FY14 FY15 FY16 FY17 March 18 Operating Return on Equity (%) Book value per share (EUR) 10.34 10.3
Slide 6: Group Results
6M18 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 6
Slide 7: Planned reduction in Life business; continued growth in P&C and Health
Planned reduction in Life business; Continued growth in P&C and Health business Gross written premium(a) per business line EURm 4.9% -1.8% 0.0% 5,211 5,293 1,535 5,026 5,048 29 2,799 2,798 254 275 441 169 143 60 1,287 1,249 1,263 1,245 357 1,358 77 47 31 683 1,367 1,357 64 692 1,405 331 326 313 352
Slide 8: Cost Ratio increased to 25.3% driven by higher personal costs
Cost Ratio increased to 25.3% driven by higher personal costs Cost ratio (net) (%), Costs (EURm) -0.8% -0.5% 1,286 1,276 2.6% 1,200 646 643 1,190 333 315 320 323 297 417 420 361 346 203 220 102 123 111 110 94 226 212 228 210 108 111 53 45 58 53 58 26.6% 26.5% 24.9% 25.7% 25.0% 24.1% 23.6% 24.8% 23.7
Slide 9: P&C: COR at 97.1% reflecting reserve strengthening and higher large losses
P&C: COR at 97.1% reflecting reserve strengthening and higher large losses Combined ratio (net) (%) 0.8 pp 97.8% 98.8% 97.4% 95.9% 96.7% 0.3 pp 96.8% 97.1% 99.5% 97.9% 98.1% 97.5% 30.3% 32.8% 31.2% 30.6% 31.5% 31.6% 30.9% 30.6% 30.4% 32.4% 31.6% 64.4% 67.4% 66.0% 66.3% 66.1% 69.0% 67.5% 65.7% 65.9%
Slide 10: P&C: Profitable growth in CEE & AT
P&C: Profitable growth in CEE & AT Net premiums earned EURm Investment result EURm Earnings before taxes EURm -35.0% -2.8% 69 -0.6% 71 643 642 639 630 19 19 32 29 20 21 22 16 611 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 Strong growth in AT and CEE driven by motor
Slide 11: Health: Moderate profit contribution due to seasonally higher benefit ratio
Health: Moderate profit contribution due to seasonaly higher benefit ratio Cost – benefit ratio (%) Investment result EURm Earnings before taxes EURm -46.8% -33.6% 45 47 105% 103% 103% 101% 42 95% 15% 19% 18% 17% 36 36 14% 22 30 22 87% 82% 86% 85% 86% 12 3 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q1
Slide 12: Life: Increased earnings before taxes driven by higher investment income
Life: Increased earnings before taxes driven by higher investment income in 6M18 Reserve (net) EURbn Investment result EURm Earnings before taxes EURm 15,803 15,775 15,780 15.6% N/A 15,574 15,547 37 102 99 25 97 24 32 84 28 18 60 11 7 2 0 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4Q17 1Q18 2Q18 2Q17 3Q17 4
Slide 13: Investment Activity
Investment Activity Investment income EUR 281 Net investment result of EUR 288.9m in 6M18 (EUR 209 218 233.5m in 6M17) 191 190 182 167 170 158 161 167 142 145 143 145 135 Current income of EUR 243.7m in 6M18 (EUR 108 235.5m in 6M17) 76 Contribution from participation in STRABAG: EUR 2.2m in 6M
Slide 14: Outlook
6M18 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
Outlook UNIQA expects no growth of GWP in FY18: P&C growth above 2% driven by both Austria and CEE Health growth on long term trend of more than 3% Life: Recurring premium business forecasted to slightly decrease in AT. In CEE UNIQA decided to stop single premium business in Poland and there
Slide 16: Operating Segments
6M18 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 Highlights EURm 6M17 6M18 Δ yoy Gross premiums written increased 2.0% ytd; Decline in life business Gross premiums written(a) 1,930.7 1,970.1 2.0% (-2.6%) overcompensated by growth in non-life (motor) business Reinsurers' share -362.9 -385.2 6.1% and health business Change due to pre
Slide 18: UNIQA Austria P&C
UNIQA Austria P&C Financial Highlights EURm 6M17 6M18 Δ yoy Gross premium written increased 4.5% ytd caused by motor Gross premiums written(a) 891.9 931.7 4.5% business and property retail business growth; Moderate growth of Reinsurers' share -345.5 -363.5 5.2% other lines of business Change due t
Slide 19: UNIQA Austria Health
UNIQA Austria Health Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written continued growth trend due to premium Gross premiums written(a) 493.2 506.7 2.7% adjustments Reinsurers' share -0.1 -0.1 56% Change due to premiums earned -7.0 -6.5 -7.3% Insurance claims and benefits increased
Slide 20: UNIQA Austria Life
UNIQA Austria Life Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written(a) 545.7 531.7 -2.6% Decline in top line of -2.6% driven by recurring premium decline Reinsurers' share -17.3 -21.6 24.5% partly compensated with increase of single premium business in Change due to premiums earned
Slide 21: UNIQA International
UNIQA International Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written(a) 837.1 814.2 -2.7% Gross Written Premiums decreased -2.7% driven by stop of sale of Life single premium business in Poland; Growth excluding Poland Reinsurers' share -247.9 -271.6 9.6% effect of 9.0% mainly comi
Slide 22: UNIQA International P&C
UNIQA International P&C Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written increased 7.8% Gross premiums written(a) 523.0 563.8 7.8% Reinsurers' share -242.3 -260.2 7.4% Motor growth in CE (EUR 11.6m) driven by volume Change due to premiums earned -10.0 -21.3 >100% and price Net Pr
Slide 23: UNIQA International Health
UNIQA International Health Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written(a) 29.5 42.7 44.6% Gross premium written: increased 44.6% where as highest growth rate is recorded in WE and Ukraine Reinsurers' share -1.2 -6.3 >100% Change due to premiums earned -3.5 -4.4 25.6% Commiss
Slide 24: UNIQA International Life
UNIQA International Life Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written decreased by -27.1% Gross premiums written(a) 284.7 207.7 -27.1% Reinsurers' share -4.4 -5.1 16.2% Stop of sales of Life single business in Poland Change due to premiums earned 0.1 0.1 39.2% Net Premiums Ea
Slide 25: 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 6M18 % to PY 6M18 % to PY 6M18 % to PY 6M18 % to PY FX adjusted (b) Western Europe (WE) 24.4 6.2% 11.5 62.0% 0.0 35.9 19.4% 19.4% Western Europe (WE) 24.4 6.2% 11.5 62.0% 0.0 35.9 19.4% 19.4% Czech
Slide 26: 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 6M18 6M17 6M18 6M17 6M18 6M17 6M18 6M17 6M18 6M17 Western Europe (WE) (b) 8.4 7.5 0.2 0.1 99.9% 118.2% 13.1% 46.3% -0.4 0.5 Western Europe (WE) 8.4 7.5 0.2 0.
Slide 27: Reinsurance
Reinsurance Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written(a) 621.5 615.0 -1.0% Comprises the reinsurance activities of UNIQA Insurance Group AG Reinsurers' share -53.5 -53.8 0.5% in Vienna and the central reinsurance hub UNIQA Re in Zurich Change due to premiums earned -29.0 -51
Slide 28: Group Functions
Group Functions Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written(a) 0.0 0.0 N/A Includes the remaining items for UNIQA Insurance Group AG as well Reinsurers' share 0.0 0.0 N/A as all other remaining Austrian and foreign service companies Change due to premiums earned 0.0 0.0 N/A
Slide 29: Consolidation
Consolidation Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written(a) -590.8 -600.8 1.7% Consolidation of intercompany effects Reinsurers' share 563.7 605.4 7.4% Change due to premiums earned -1.2 -0.4 -71.5% Net Premiums Earned(a) -28.3 4.2 N/A Savings portion included in premiums 0.0
Slide 30: Group Balance Sheet
Group Balance Sheet Assets Liabilities EURm June18 Dec17 EURm June18 Dec17 A. Total equity 3,002.0 3,193.4 -6.0% A. Tangible assets 307.4 310.6 -1.0% B. Land and buildings held as financial I. Shareholder equity 2,989.0 3,177.6 -5.9% investments 1,202.4 1,233.9 -2.6% C. Intangible assets 1,595.2 1,5
Slide 31: Shareholders' equity (excluding minority interest)
Shareholders‘ equity (excluding minority interest) EURm 3.178 126 2.989 16 157 110 Dec 17 Valuation of financial Dividend payment Profit attributable Other June18 instruments AFS to shareholders Shareholders’ equity decreased in 6M18: Dividend payment in amount of EUR 157m Net result contribution
Slide 32: Group Income Statement
Group Income Statement EURm 2Q17 3Q17 4Q17 1Q18 2Q18 6M17 6M18 Δ yoy Gross premiums written(a) 1,286.7 1,245.3 1,249.5 1,535.4 1,263.0 2,798.6 2,798.4 0.0% Reinsurers' share -30.6 -36.7 -47.9 -63.2 -41.9 -100.7 -105.2 4.5% Change due to premiums earned 47.9 52.1 58.2 -189.6 36.4 -114.2 -153.2 34.1%
Slide 33: Group P&C
Group P&C Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written 1,441.6 1,506.2 4.5% Gross Written Premiums increased 4.5% as a result of strong growth Reinsurers' share -83.9 -82.8 -1.3% in motor business in Austria and CE Change due to premiums earned -103.9 -142.4 37.0% Net insuran
Slide 34: Group Health
Group Health Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written 522.5 549.4 5.1% Gross Premiums Written increased by 5.1% Reinsurers' share -0.5 -1.6 >100% Change due to premiums earned -10.5 -10.9 3.7% UNIQA International: 44.6% Net Premiums Earned 511.6 536.9 4.9% UNIQA Austria
Slide 35: Group Life
Group Life Financial Highlights EURm 6M17 6M18 Δ yoy Gross premiums written(a) 834.4 742.9 -11.0% Gross premium written decreased -11.0% ytd driven by planned Reinsurers' share -16.3 -20.8 27.6% decrease of single premium business in Poland Change due to premiums earned 0.2 0.1 -31.9% Net insura
Slide 36: Asset Management
6M18 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 36
Slide 37: Fixed income portfolio
Fixed income portfolio Overall composition Rating distribution Dec17 EUR 16.5bn Governent Bonds EU 26% 26% 25% 25% 8% 2% 24%25% Covered Bonds 13% 14% 14% 46% Corporates 7% 7% 12% 4% 4% Government Bonds Non-EU Financials AAA AA A BBB <BBB Not rated 19% June 18 Dec 17 Other By segment June 18 EUR 16.4
Slide 38: Fixed income portfolio: Government and government related
Fixed income portfolio Government and government related Overall composition EUR 10.0bn Rating distribution 2% Rest of Europe 5% 4% Austria 4% 29.5% Rest of World 7% 34% Poland 27.4% Belgium 7% France 7% Europa Slovakia 21.2% 9% 12% Ireland 10% Supranational Organisations By segment Italy 12.2% 9.6%
Slide 39: Fixed income portfolio: Corporates including financials
Fixed income portfolio Corporates including financials Overall composition EUR 3.3bn Rating distribution 5% 2% United States of America 4% Rest of Europe 34.6% 21% 6% Austria France 9% 29.4% Germany 17% United Kingdom 12% Rest of World Europa 11% 12% Netherlands By segment Italy 15.3% 11.4% 20% 6.2%
Slide 40: Fixed income portfolio: Corporate thereof financials
Fixed income portfolio Corporate thereof financials Overall composition EUR 1.3bn Rating distribution 4% United States of America 5% Austria 39.1% 6% 31% Germany 5% Rest of World 7% France 6% Netherlands United Kingdom 14% 21% Switzerland Rest of Europe By segment 18.9% 15.8% 10.7% 8.8% 28% 6.7% P&C
Slide 41: Fixed income portfolio: Covered bonds
Fixed income portfolio Covered bonds Overall composition EUR 3.0bn Rating distribution Rest of Eurpoe 65.8% 3%3% 4% 18% Austria 6% France 6% Germany United Kingdom 7% 17% Australia Netherlands 8% Spain Rest of World 9% 17% Belgium By segment Norway 26.1% 17% P&C 4.6% 19% Health 1.5% 2.0% 0.0% 64% Li
Slide 42: Shareholder Information
6M18 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 42
Slide 43: Shareholder structure
Shareholder structure Current shareholder structure Free float geographic distribution 0.7% 1.0% 10.9% 2.5% 15.1% 28.7% 49.0% 26.8% 36.9% 28.3% UNIQA Versicherungsverein Privatstiftung Continental Europe Free Float Austria Raiffeisen Bank International North America UK & Ireland Collegialität Versic
Slide 44: 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 41% 38% 45% 44% 102% 97% 309m common shares ISIN: AT0000821103 0.51 0.47 0.49 Bloomberg: UQA AV Reuters: UNIQ.VI 0.42 Vienna Stock
Slide 45: 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
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