UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — Investor Presentation (April 2017)
26 slides from UNIQA Insurance's investor presentation, Apr 21, 2017
Slide 1: Economic Capital and Embedded Value 2016
UNIQA Insurance Group AG Economic Capital and Embedded Value 2016 21 April 2017 Kurt Svoboda, CFRO
Slide 2: Executive Summary
Executive Summary Overall positive development for the Group’s economic position based on strong operating earnings Sale of Italian business reflected in Economic Capital and Embedded Value Strong Economic Capital position as at year-end 2016 Economic Capital Ratio (ECR-ratio) increased to 2
Slide 3: Agenda
Methodology Economic Capital Results Sensitivities and other analysis Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 3
Slide 4: Group Economic Capital Figures: Methodology
Group Economic Capital Figures Methodology Disclosure of Economic Capital Model (ECM) results: UNIQA discloses ECM results 2016 on the basis of the underlying and published methodology of the Group Economic Capital Model Economic capital is a key figure for steering the UNIQA Group UNIQA dis
Slide 5: Group Economic Capital Figures: Model
Group Economic Capital Figures Methodology UNIQA Group’s economic capital model Model details ECR = Basic ECR + Operat. risk – Adj. Based on SII standard approach Adj (FDB und DT) Basic ECR Operat. risk Spread risk and concentration risk are valued on the basis of Market Health Default Non-life
Slide 6: Agenda
Methodology Economic Capital Results Sensitivities and other analysis Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 6
Slide 7: Group Capital Requirements
Group Capital Requirements Economic and Regulatory SII Capital Ratio Economic capital position Development of ECR-ratio Sale of Italian ECR-ratio 182% 215% 215% business increases 182% the Group ECR- 5,205 5,382 161% ratio by 35pp In EUR mn 150% 180% 2,857 2,509 108% ECR-ratio 2012 2013 2014 2015 20
Slide 8: Group ECR Results
Group ECR Results Details on Economic Capital Ratio +115% ECR development by Risk Module In EUR mn 5.382 ECR strongly reduced Tier 3 Reduction in almost all risk modules, 0,1% Tier 2 driven by sale of Italian business 17,3% 258 856 471 153 Strongest reduction in Market Risk 448 2.809 462 Tier 1
Slide 9: UNIQA Group market risk profile
Group ECR Results UNIQA Group market risk profile ECR market risk profile and development In EUR mn 349 108 -724 2,674 2,335 1,250 Interest rate risk 11% 2,335 11% Equity risk 10% 13% 598 405 Property risk 15% 349 20% Interest Equity risk Property risk Spread risk Curreny risk Conc. risk Diversific.
Slide 10: UNIQA Group underwriting risk profile
Group ECR Results UNIQA Group underwriting risk profile Life underwriting risk Health underwriting risk Non-life underwriting risk 1% 1% 3% Disability risk 2% 3% Expense risk 6% 6% Technic Insurance 2% 5% 5% 4% 4% CAT risk Legal Expenses 4% 4% 7% 8% 9% Mortality risk Mortality risk 21% Transport Oth
Slide 11: Agenda
Methodology Economic Capital Results Sensitivities and other analysis Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 11
Slide 12: ECR Sensitivities
Group ECR Results Sensitivities Impact of sensitivities on ECR-ratio Change in ECR-ratio ∆ to base value Base Value 215% Interest rates +50 bps 230% +15%-p Interest rates -50 bps 198% -16%-p Equity -30% 206% -8%-p FX +10% 220% +5%-p FX -10% 209% -5%-p Credit spread +100bps 176% -39%-p Earth quake 21
Slide 13: IFRS reconciliation and economic value creation
Group ECR Results IFRS reconciliation and economic value creation IFRS reconciliation (EUR mn) Position 2016 2015 IFRS total equity 3,213 3,175 - Goodwill -295 -429 - Intangible assets and VBI -62 -63 - Deferred acquisition costs (DAC) -1,135 -980 + Revaluation (after deferred taxes) 2,919 2,566 Rev
Slide 14: Agenda
Methodology Economic Capital Results Sensitivities and other analysis Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 14
Slide 15: Group Embedded Value: Methodology
Group Embedded Value Methodology Disclosure of Group Embedded Value (GEV) results: UNIQA discloses GEV results 2016 on the basis of the Market Consistent Embedded Value (MCEV) principles Includes MCEV using bottom-up, market consistent methodology for main Life and Health businesses Split by
Slide 16: Agenda
Methodology Economic Capital Results Sensitivities and other analysis Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 16
Slide 17: Group Embedded Value Results
Group Embedded Value Results Group Embedded Value 2016 MCEV Performance In EUR mn In EUR mn as a %* +7.3% 214 5.3% 1,993 Return on GEV 441 9.6% 5,068 2,107 3,075 194 8.1% Life&Health 941 Free Surplus Generation 128 4.3% 27 Adjusted Net Value of Life & Health P&C ANAV Group Asset Value in-force MCEV
Slide 18: New Business Value
Group Embedded Value New Business Value New Business Value New Business Margin Present Value of NB Premiums In EUR mn As a % of PVNBP In EUR mn Recurring Premium Single Premium 2015 73 +2.4% 2015 1,893 1,139 3,032 2016* 93 +4.3% 2016 * 2,018 137 2,156 NBV NBM ** Excludes Italy Split by region PVNBP
Slide 19: Life & health analysis of change
Group Embedded Value Life & health analysis of change 387 255 Restatement and opening adjustments 107 Rollforward include: Capital and dividend flows (EUR 316 -128mn) Foreign exchange variance (EUR 6mn) 3,272 126 113 Merger of Austrian business (EUR -5mn) 280 3,145 Assumptions Ongoing positive
Slide 20: Agenda
Methodology Economic Capital Results Sensitivities and other analysis Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 20
Slide 21: Life & health sensitivities
Group Embedded Value Life & health sensitivities Interest rate sensitivity in EUR mn Change in Embedded Value Change in New Business Value similar to prior year 2016 * 2015 2016 * 2015 Base value 3,075 100% 3,272 100% 93 100% 73 100% Estimated impact on EV from UFR down to EV change by economic
Slide 22: Agenda
Methodology Economic Capital Results Sensitivities and other analysis Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 22
Slide 23: Economic assumptions
Economic assumptions MCEV and ECR Consistent assumptions for MCEV and ECR valuation Reference rates based on swap rates as at 31 December 2016 including a liquidity premium (volatility adjustment). The liquidity premium is derived from observable market data and based on the approach used for in
Slide 24: Agenda
Methodology Economic Capital Results Methodology Embedded Value Results Sensitivities and other analysis Assumptions Appendix Glossary & Disclaimer 24
Slide 25: 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 26: 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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