UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — FY2019 Earnings Presentation
37 slides from UNIQA Insurance's earnings presentation, Feb 20, 2020
Slide 1: UNIQA Insurance Group AG FY19 Results
UNIQA Insurance Group AG FY19 Results Improved combined ratio and stable investment result led to earnings before taxes above expectations 20 Febuary 2020 Andreas Brandstetter, CEO Kurt Svoboda, CFO/CRO
Slide 2: Highlights
FY19 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 FY19
Executive Summary FY19 Gross written premiums(a) slightly increased (+1.2%) compared to FY18 Net combined ratio improved to 96.4% (96.8% in FY18) Net cost ratio rose to 27.2% (25.9% in FY18) Net investment result stable at EUR 585.2m (EUR 585.0m in FY18) Earnings before taxes of EUR 295.7m
Slide 4: Snapshot FY19
Snapshot FY19 EURm FY18 FY19 % Gross premiums written (a) 5.309.5 5.372.6 1.2% Continued growth in P&C and Health; Ongoing reduction in Life Premiums earned (retained) 4.760.7 4.861.1 2.1% business Net investment income 585.0 585.2 0.0% Higher gains from sale of real- estate, higher running income
Slide 5: Key Financial Indicators
Key Financial Indicators Earnings per share (EUR) Regulatory Capital Position (SCR %) 1.09 250% 248% 0.79 194% 202% 203% 0.76 0.56 0.48 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 2018 9M19 Operating Return on Equity (%) Book value per share (EUR) 10.82 17.2% 10.34 10.29 10.20 10.0% 10.2% 10.5% 10.6% 9.
Slide 6: Group Results
FY19 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 1.2% 0.8% 5.293 5.309 5.373 1.530 1.2% 5.048 113 105 25 254 5309 5373 169 1.285 1.281 1.277 113 105 1,336 1,290 1.267 335 1,358 28 30 25 25 1,357 1,336 1,290 342 322 302 33
Slide 8: Cost Ratio increased to 27.2% driven by higher CAPEX and DAC amortization in Life
Cost Ratio increased to 27.2% driven by higher CAPEX and DAC amortization in Life business Cost ratio (net) (%), Costs (EURm) 7.0% 7.0% 7.0% 1.407 389 1.315 363 1.407 1.286 1.276 350 347 1.315 322 500 144 417 420 463 139 500 120 127 463 108 221 64 228 210 220 221 27.2% 62 52 58 47 220 26.6% 25.9% 25
Slide 9: P&C: COR improved further to 96.4%
P&C: COR improved further to 96.4% Combined ratio (net) (%) 0.6 pp 98.1% 97.2% 98.3% 97.8% 97.5% 96.8% 96.4% 96.3% -0.4 pp 93.0% 96.8% 96.4% 32.4% 31.6% 31.4% 33.5% 31.6% 33.0% 34.7% 32.2% 29.4% 31.4% 32.2% 65.7% 65.9% 65.4% 64.2% 63.7% 64.7% 65.4% 63.6% 63.2% 65.4% 64.2% 2016 2017 2018 2019 4Q18 1Q
Slide 10: P&C: Lower investment result vs strong FY18
P&C: Lower investment result vs strong FY18 Net premiums earned EURm Investment result EURm Earnings before taxes EURm 4.0% 310.9 N/A % 683 44 41 671 34 36 21 666 32 658 17 13 645 10 1 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Growth of net premiums earned (+3.7%)
Slide 11: Health: Long term growth continued
Health: Long term growth continued Cost – benefit ratio (%) Investment result EURm Earnings before taxes EURm -36.0% 104% -21.6% 103% 103% 51 99% 99% 42 41 19% 16% 16% 20% 17% 33 33 29 21 19 84% 88% 88% 82% 80% 8 2 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 Benefit Ra
Slide 12: Life: Solid earnings contribution despite low interest rate environment
Life: Solid earnings contribution despite low interest rate environment Reserve (net) EURbn Investment result EURm Earnings before taxes EURm -8.6% 16.000 16.016 113 15.762 15.747 15.483 -34.8% 98 42 91 90 35 27 54 56 51 50 61 16 16 6 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19 3Q19 4Q19 4Q18 1Q19 2Q19
Slide 13: Investment Activity
Investment Activity Investment income EUR 281 Net investment result of EUR 585m in FY19 (EUR 209 218 585m in FY18) 191 190 182 179 200 170 167 160 141 158 152 135 142 145 140149155 132 Current income of EUR 531m in FY19 (EUR 528m in 108 101 FY18) 76 Contribution from participation in STRABAG:
Slide 14: Outlook
FY19 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 FY20
Outlook FY20 UNIQA expects slightly growing GWP in FY20: 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 further improve compared to FY19 (96.4%)
Slide 16: Operating Segments
FY19 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 FY18 FY19 Δ yoy Gross prem iums written(a) 3.734.4 3.800.8 1.8% Reinsurers' share -697.9 -742.6 6.4% Change due to premium s earned -4.7 -1.2 -74.4% Net Prem iums Earned(a) 3.031.8 3.057.0 0.8% Savings portion included in premium s -220.2 -211.7 -3.9% Premium s Earned 2.811.6 2.84
Slide 18: UNIQA Austria Segments
UNIQA Austria Segments P&C Health Life EURm FY18 FY19 Δ yoy FY18 FY19 Δ yoy FY18 FY19 Δ yoy Gross prem iums written(a) 1.703.5 1.760.7 3.4% 1.008.9 1.056.3 4.7% 1.022.0 983.9 -3.7% Reinsurers' share -666.3 -709.8 6.5% -0.3 -5.6 1596.3% -31.3 -27.3 -12.9% Change due to premium s earned -4.1 -1.1 -73.
Slide 19: UNIQA International
UNIQA International EURm FY18 FY19 Δ yoy Gross prem iums written 1.564.6 1.561.2 -0.2% Reinsurers' share -477.0 -454.4 -4.7% Change due to premium s earned -28.6 -24.2 -15.3% Net Premiums Earned 1.059.1 1.082.6 2.2% Savings portion included in prem iums -100.7 -98.1 -2.6% Premium s Earned 958.4 984.
Slide 20: UNIQA International Segments
UNIQA International Segments P&C Health Life EURm FY18 FY19 Δ yoy FY18 FY19 Δ yoy FY18 FY19 Δ yoy Gross prem iums written 1.067.4 1.076.9 0.9% 77.6 74.6 -3.9% 419.7 409.8 -2.4% Reinsurers' share -456.8 -443.3 -3.0% -9.7 -2.5 -74.5% -10.5 -8.7 -17.4% Change due to premium s earned -25.7 -19.6 -23.7%
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 FY19 % to PY FY19 % to PY FY19 % to PY FY19 % to PY FX adjusted (b) Western Europe (WE) 8.1 -71% 0.0 -100% 0.0 8.1 -83% -83% Western Europe (WE) 8.1 -71% 0.0 -100% 0.0 8.1 -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 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 (b) Western Europe (WE) 1.2 16.4 0.0 0.4 241.7% 137.8% 172.4% 19.3% -1.6 -0.5 Western Europe (WE) 1.2 16.4 0
Slide 23: Group Balance Sheet
Group Balance Sheet Liabilities Assets EURm Dec 19 Dec 18 EURm Dec 19 Dec 18 A. Total equity 3.340.0 2.986.6 11.8% A. Tangible assets 351.8 311.1 13.1% B. Land and buildings held as financial I. Shareholder equity 3.320.6 2.972.1 11.7% investments 1.137.4 1.104.1 3.0% C. Intangible assets 1.641.1 1.
Slide 24: Shareholders' equity (excluding minority interest)
Shareholders‘ equity (excluding minority interest) EURm 39 3.321 232 163 318 2.972 Valuation of financial Dividend Profit attributable Other Dec 19 Dec 18 instruments AFS to shareholders Shareholders’ equity increased in FY19: Increase of revaluation reserves due to positive market movements in FY
Slide 25: Group Income Statement
Group Income Statement EURm 4Q18 1Q19 2Q19 3Q19 4Q19 FY18 FY19 Δ yoy Gross prem iums written(a) 1.267.2 1.530.0 1.285.0 1.280.8 1.276.8 5.309.5 5.372.6 1.2% Reinsurers' share -45.7 -58.5 -38.9 -33.4 -44.5 -191.5 -175.3 -8.5% Change due to premium s earned 62.7 -176.7 37.3 41.7 71.2 -36.3 -26.4 -27.2
Slide 26: Group Operating Segments
Group Operating Segments P&C Health Life EURm FY18 FY19 Δ yoy FY18 FY19 Δ yoy FY18 FY19 Δ yoy Gross prem iums written(a) 2.774.4 2.846.8 2.6% 1.086.4 1.130.8 4.1% 1.448.6 1.394.9 -3.7% Reinsurers' share -157.5 -146.7 -6.9% -3.6 -2.6 -29.2% -30.4 -26.1 -14.2% Change due to premium s earned -32.9 -21.
Slide 27: Other Segments
Other Segments Consolidation Reinsurance Group Functions EURm FY18 FY19 Δ yoy FY18 FY19 Δ yoy FY18 FY19 Δ yoy Gross prem iums written -1.087.9 -1.118.7 2.8% 1.098.3 1.129.2 2.8% 0.0 0.0 N/A Reinsurers' share 1.087.9 1.117.5 2.7% -104.5 -95.9 -8.2% 0.0 0.0 N/A Change due to premium s earned 5.3 3.0 -
Slide 28: Asset Management
FY19 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% 23% 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% Dec 19 Dec 18 Other By segment Dec 19 EUR 16.5b
Slide 30: Fixed income portfolio Government and government related
Fixed income portfolio Government and government related Overall composition EUR 10.1bn Rating distribution 2% Rest of Europe 4% 4% Austria 3% 30.0% Rest of World 6% 34% Poland 7% Belgium 26.3% France 7% Europa Slovakia 8% 12% Ireland 19.2% 18.7% 13% Supranational Organisations By segment Italy 21%
Slide 31: Fixed income portfolio Corporates including financials
Fixed income portfolio Corporates including financials Overall composition EUR 3.6bn 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 1.1bn Rating distribution 6% United States of Am erica 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&
Slide 33: Fixed income portfolio Covered bonds
Fixed income portfolio Covered bonds Overall composition EUR 2.7bn 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
FY19 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% 10.9% 49.0% 36.9% UNIQA Versicherungsverein Privatstiftung Free Float Raiffeisen Bank International Collegialität Versicherungsverein Privatstiftung Treasury shares UNIQA Investor Relations 35
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% 71% ISIN: AT0000821103 0.54 Bloomberg: UQA AV 0.53 0.49 0.51 Reuters: UNIQ.VI 0.47 0
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