UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — Q1 2018 Earnings Presentation
45 slides from UNIQA Insurance's earnings presentation, May 24, 2018
Slide 1: UNIQA Insurance Group AG 3M18 Results
UNIQA Insurance Group AG 3M18 Results Combined ratio and cost ratio improved Earnings before taxes of EUR 73.9m 24 May 2018 Kurt Svoboda, CFO/CRO, CEO UNIQA Austria
Slide 2: 3M18 Highlights
3M18 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 3M18
Executive Summary 3M18 Gross written premiums(a) increased by 1.6% driven by P&C and Health business Net combined ratio improved to 97.4% (97.7% in 3M17) Net cost ratio at 24.9% (25.9% in 3M17) Net investment result increased to EUR 143.4m (EUR 75.8m in 3M17) due to one-off gain related to s
Slide 4: Snapshot 3M18
Snapshot 3M18 Planned reduction in Life business EURm 3M17 3M18 % mitigated by growth in Health and P&C business both in AT and CEE Gross premiums written(a) 1,511.9 1,535.4 1.6% Premiums earned (retained) 1,157.6 1,210.6 4.6% Reflecting one-off gain from sale Net investment income 75.8 143.4 89.3%
Slide 5: Key Financial Indicators
Key Financial Indicators Earnings per share (EUR) Regulatory and Economic Capital Position (%) 0.25 SCR ECR 250% 215% 210% 0.18 0.18 194% 202% 182% 153% 150% 0.11 0.09 3M14 3M15 3M16 3M17 3M18 FY14 FY15 FY16 FY17 Operating Return on Equity (%) Book value per share (EUR) 17.2% 10.40 15.6% 10.34 10.35
Slide 6: Group Results
3M18 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 6
Slide 7: Reduction in Life single premium business compensated by growth in P&C and Health
Reduction in Life single premium business compensated by growth in P&C and Health Gross written premium(a) per business line EURm 4.9% 1.6% 5,211 5,293 1,512 1,535 1.6% 5,026 5,048 29 254 65 1,512 1,535 275 441 169 1,287 65 29 1,245 1,249 357 1,358 361 77 1,357 64 47 357 1,405 1,367 361 331 313 352
Slide 8: Cost Ratio improved to 24.9%
Cost Ratio improved to 24.9% Cost ratio (net) (%), Costs (EURm) -0.8% -3.4% 1,286 1,276 -3.4% 331 1,200 1,190 333 320 331 315 320 297 417 420 100 361 346 100 111 102 123 111 94 228 210 54 226 212 54 53 53 45 58 53 25.9% 26.5% 24.9% 24.1% 23.6% 26.6% 25.9% 24.8% 23.7% 25.0% 24.9% 614 632 642 646 176
Slide 9: P&C: COR improved to 97.4%
P&C: COR improved to 97.4% Combined ratio (net) (%) -0.2 pp 97.7% 97.8% 98.8% 97.4% 95.9% -0.2 pp 97.7% 97.4% 99.5% 97.9% 98.1% 97.5% 31.8% 30.3% 32.8% 31.2% 31.5% 31.8% 31.2% 30.6% 30.4% 32.4% 31.6% 65.9% 64.4% 67.4% 66.0% 66.3% 69.0% 67.5% 65.7% 65.9% 65.9% 66.3% 2014 2015 2016 2017 1Q17 2Q17 3Q17
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 N/A N/A 5.1% 71 69 643 642 630 27 32 29 20 26 16 14 22 611 611 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 Strong growth in CEE: Driven by motor business and
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 105% 103% 101% 101% N/A N/A 95% 45 47 15% 19% 18% 18% 42 14% 36 36 22 3 83% 87% 82% 86% 85% 12 -1 -1 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18
Slide 12: Life: Decreased earnings before taxes driven by higher benefits
Life: Decreased earnings before taxes driven by higher benefits in 3M18 Reserve (net) EURbn Investment result EURm Earnings before taxes EURm -67.6% 15,970 15,803 15,775 15,780 15,547 18.8% 24 32 102 99 28 84 18 60 2 19 51 7 11 7 0 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q17 1Q18 1Q17 2Q17 3Q17 4Q1
Slide 13: Investment Activity
Investment Activity Investment income EUR 281 Net investment result of EUR 143.4m in 3M18 (EUR 209 218 75.8m in 3M17) 191 190 182 167 170 158 161 167 142 145 143 135 Current income of EUR 103.2m in 3M18 (EUR 95.9m 108 in 3M17) 76 Contribution from participation in STRABAG: EUR -18.2m in 3M18 (
Slide 14: Outlook
3M18 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 a moderate growth of GWP in FY18: P&C growth above 2% driven by both Austria and CEE Health growth on long term trend of around 3% Life: Recurring premium business forecasted to slightly decrease in AT. In CEE UNIQA decided to stop single premium business in Poland and
Slide 16: Operating Segments
3M18 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 3M17 3M18 Δ yoy Gross premiums written increased 2.3% ytd; decline in Life Gross premiums written(a) 1,073.0 1,097.9 2.3% business (-2.0%) overcompensated by growth in non-life (motor) Reinsurers' share -221.7 -230.3 3.9% business and health business Change due to pre
Slide 18: UNIQA Austria P&C
UNIQA Austria P&C Financial Highlights EURm 3M17 3M18 Δ yoy Gross premium written increased 4.6% ytd caused by motor Gross premiums written(a) 529.8 553.9 4.6% business and property retail business growth; moderate growth of Reinsurers' share -207.6 -218.1 5.1% other lines of business Change due t
Slide 19: UNIQA Austria Health
UNIQA Austria Health Financial Highlights EURm 3M17 3M18 Δ yoy Gross premiums written continued growth trend due to premium Gross premiums written(a) 253.8 260.4 2.6% adjustments Reinsurers' share 0.0 -0.1 78% Change due to premiums earned -11.3 -10.8 -4.2% Insurance claims and benefits increase
Slide 20: UNIQA Austria Life
UNIQA Austria Life Financial Highlights EURm 3M17 3M18 Δ yoy Gross premiums written(a) 289.5 283.6 -2.0% Decline in top line driven by recurring premium decline of -2.3% Reinsurers' share -14.1 -12.1 -14.1% partly compensated with increase of single premium business in Change due to premiums earne
Slide 21: UNIQA International
UNIQA International Financial Highlights EURm 3M17 3M18 Δ yoy Gross premiums written(a) 426.7 428.0 0.3% Gross Written Premiums flattish driven by stop of sale of Life single premium business in Poland; growth excluding Poland effect 11.6% Reinsurers' share -138.2 -153.0 10.7% mainly coming from P
Slide 22: UNIQA International P&C
UNIQA International P&C Financial Highlights EURm 3M17 3M18 Δ yoy Gross premiums written increased 11.3% Gross premiums written(a) 276.1 307.4 11.3% Reinsurers' share -135.8 -148.6 9.4% Motor growth in CE (EUR +22m) due to strong Change due to premiums earned -7.1 -19.7 >100% increase in new car
Slide 23: UNIQA International Health
UNIQA International Health Financial Highlights EURm 3M17 3M18 Δ yoy Gross premiums written(a) 16.0 19.7 23.7% Gross premium written: increased 23.7% where as highest growth rate is recorded in Hungary, Ukraine and Russia Reinsurers' share -0.6 -1.8 >100% Change due to premiums earned -3.2 -2.3 -2
Slide 24: UNIQA International Life
UNIQA International Life Financial Highlights EURm 3M17 3M18 Δ yoy Gross premiums written decreased by -25.0% Gross premiums written(a) 134.6 100.9 -25.0% Reinsurers' share -1.8 -2.6 44.7% Stop of sales of Life single business in Poland Change due to premiums earned 0.3 -0.1 N/A Net Premiums Ear
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 3M18 % to PY 3M18 % to PY 3M18 % to PY 3M18 % to PY FX adjusted (b) Western Europe (WE) 20.7 12.8% 4.7 928.4% 0.0 25.4 35.2% 35.2% Western Europe (WE) 20.7 12.8% 4.7 21.2% 0.0 25.4 14.3% 35.2% Czec
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 3M18 3M17 3M18 3M17 3M18 3M17 3M18 3M17 3M18 3M17 Western Europe (WE) (b) 3.8 1.2 -0.1 0.0 64.9% 71.5% 2.3% 60.5% 0.2 0.2 Western Europe (WE) 3.8 4.0 -0.1 0.0
Slide 27: Reinsurance
Reinsurance Financial Highlights EURm 3M17 3M18 Δ yoy Gross premiums written(a) 364.7 360.2 -1.2% Comprises the reinsurance activities of UNIQA Insurance Group AG Reinsurers' share -36.5 -31.1 -14.8% in Vienna and the central reinsurance hub UNIQA Re in Zurich Change due to premiums earned -53.2 -
Slide 28: Group Functions
Group Functions Financial Highlights EURm 3M17 3M18 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 3M17 3M18 Δ yoy Gross premiums written(a) -352.5 -350.7 -0.5% Consolidation of intercompany effects Reinsurers' share 326.3 351.1 7.6% Change due to premiums earned 0.0 1.2 >100% Net Premiums Earned(a) -26.1 1.7 N/A Savings portion included in premiums 0.0 0
Slide 30: Group Balance Sheet
Group Balance Sheet Assets Liabilities EURm March18 Dec17 EURm March18 Dec17 A. Total equity 3,207.9 3,193.4 0.5% A. Tangible assets 309.3 310.6 -0.4% B. Land and buildings held as financial I. Shareholder equity 3,191.1 3,177.6 0.4% investments 1,226.3 1,233.9 -0.6% C. Intangible assets 1,586.4 1,5
Slide 31: Shareholders' equity (excluding minority interest)
Shareholders‘ equity (excluding minority interest) EURm 3.191 2 3.178 54 43 Dec 17 Valuation of financial Profit attributable Other March18 instruments AFS to shareholders Shareholders’ equity increased in 3M18: Revaluation reserves decreased mainly due to interest rates ytd development Net resu
Slide 32: Group Income Statement
Group Income Statement EURm 1Q17 2Q17 3Q17 4Q17 1Q18 3M17 3M18 Δ yoy Gross premiums written(a) 1,511.9 1,286.7 1,245.3 1,249.5 1,535.4 1,511.9 1,535.4 1.6% Reinsurers' share -70.0 -30.6 -36.7 -47.9 -63.2 -70.0 -63.2 -9.7% Change due to premiums earned -162.1 47.9 52.1 58.2 -189.6 -162.1 -189.6 17.0%
Slide 33: Group P&C
Group P&C Financial Highlights EURm 3M17 3M18 Δ yoy Gross premiums written 815.7 868.8 6.5% Gross Written Premiums increased 6.5% as a result of strong growth Reinsurers' share -56.6 -50.1 -11.5% in motor business in Austria and CEE Change due to premiums earned -147.9 -176.3 19.2% Net insurance
Slide 34: Group Health
Group Health Financial Highlights EURm 3M17 3M18 Δ yoy Gross premiums written 269.7 280.1 3.9% Gross Premiums Written increased by 3.9% Reinsurers' share -0.2 -1.3 >100% Change due to premiums earned -14.5 -13.2 -9.0% UNIQA International: 23.7% Net Premiums Earned 254.9 265.7 4.2% UNIQA Austri
Slide 35: Group Life
Group Life Financial Highlights EURm 3M17 3M18 Δ yoy Gross premiums written(a) 426.5 386.5 -9.4% Gross Premium Written decreased -9.4% ytd driven by planned Reinsurers' share -13.2 -11.9 -10.0% decrease of single premium business in Poland Change due to premiums earned 0.4 -0.1 N/A Net Insurance
Slide 36: Asset Management
3M18 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% 8% 2% 24% 25% 25%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% March 18 Dec 17 Other By segment March 18 EUR 16
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 4% 4% Austria 4% Rest of World 28.6% 28.1% 7% 34% Poland Belgium 7% France 7% Europa 21.9% Slovakia 9% 12% Ireland 10% Supranational Organisations By segment Italy 12.1% 9.2%
Slide 39: Fixed income portfolio: Corporates including financials
Fixed income portfolio Corporates including financials Overall composition EUR 3.2bn Rating distribution 4% 3% United States of America 5% Rest of Europe 21% 33.7% 7% Austria France 29.9% 10% Germany 17% United Kingdom 11% Rest of World Europa 11% 12% Netherlands By segment Italy 14.4% 11.8% 20% 7.0
Slide 40: Fixed income portfolio: Corporate thereof financials
Fixed income portfolio Corporate thereof financials Overall composition EUR 1.3bn Rating distribution 5% United States of America 6% Austria 38.8% 7% 28% Germany 5% Rest of World 8% France Netherlands 6% 21% United Kingdom 14% Switzerland Rest of Europe 20.9% By segment 18.8% 14.8% 29% 6.7% P&C 54%
Slide 41: Fixed income portfolio: Covered bonds
Fixed income portfolio Covered bonds Overall composition EUR 3.0bn Rating distribution Rest of Eurpoe 3%3% 5% 17% Austria 6% France 66.8% Germany 7% United Kingdom 17% Australia 7% Netherlands 8% Spain Rest of World 9% 16% Belgium By segment Norway 24.5% 16% P&C 4.9% 19% Health 1.9% 1.9% 0.0% 65% Li
Slide 42: Shareholder Information
3M18 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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