UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — Investor Day (December 2020)
61 slides from UNIQA Insurance's investor day presentation, Dec 14, 2020
Slide 1: Capital Markets Day
Capital Markets Day December 14, 2020 UNIQA 3.0 1
Slide 2: Our mission
| UNIQA Capital Markets Day | December 14, 2020 We have what it takes to be the leading provider of services that create a better life for our customers Our mission UNIQA – Living better. together. 2
Slide 3: Agenda
| UNIQA Capital Markets Day | December 14, 2020 1. Strategy UNIQA 3.0 Andreas Brandstetter page 4 − Delivered on UNIQA 2.0 targets CEO − Seeding the future with UNIQA 3.0 − Ensuring improved return to shareholders 2. Austria Andreas Brandstetter page 19 − Market leadership in Health and P&C CEO − In
Slide 4: Strategy UNIQA 3.0
Capital Markets Day December 14, 2020 1 Strategy UNIQA 3.0 Andreas Brandstetter, CEO 4
Slide 5: Review: UNIQA 2.0 – we built a stable foundation
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 Review: UNIQA 2.0 – we built a stable foundation! Delivered INCL. AXA CEE1 UNIQA 2.0 Positive results despite challenges due to COVID-19 ~ In progress Customer Implementation Attractive Focus on core growth of key programs financials
Slide 6: Review: Homogeneous and balanced portfolio
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 Review: Homogeneous and balanced portfolio! High Low FIGURES ROUNDED Austria CEE1 GWP Σ 3,800 Σ 2,400 2019, EUR millions Bank AXA CEE Corporate Retail P&C Life Health P&C Life Health Earnings2 Contribution rel. to GWP P&C: Continuous
Slide 7: Key messages
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 Key messages UNIQA 3.0 Customer-centric excellence program for seeding the future Two core markets Established CEE as second core market – boosted by AXA CEE A established acquisition – leading to balanced earnings contribution in 20
Slide 8: UNIQA 3.0: Holistic strategy approach
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 UNIQA 3.0: Holistic strategy approach of UNIQA 3.0 MEGATRENDS VISION & MISSION CRITICAL LOW INTEREST RATES UNIQA. INITIATIVES AND THE SHIFT OF Living better. together. ECONOMIC POWER Our business goals Corporate/ 2021-2025 Retail Ban
Slide 9: UNIQA 3.0: Ambitious targets
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 UNIQA 3.0: Ambitious targets! Excl. AXA CEE Incl. AXA CEE UNIQA Group targets 2019 actuals, 2022 and 2025 targets 2019 2022 2025 Gross Written Premiums 5.4 ~6.4 ~7.0 EUR billions Operating Net cost ratio 27 ~27 ~25 business Percent N
Slide 10: UNIQA 3.0: HOW – fully customer-centric across all markets
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 UNIQA 3.0: HOW – fully customer-centric across all markets! Organizational structure CEO Clear customer-centric E2E responsibilities AT CEE Bank New target operating model unlocks CFO growth and admin cost saving potential HR Inspiri
Slide 11: UNIQA 3.0: Digital and innovative for the future
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 UNIQA 3.0: Digital and innovative for the future! Expand internationally as Develop CHERRISK ecosystem1 digital attacker Start in HU and roll out in DE Further expand to four countries in 2024 Drive innovation as Focus on future of h
Slide 12: UNIQA 3.0: Focus on sustainability
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 UNIQA 3.0: Focus on sustainability! Investment policy EUR 1 bn sustainable investments until 2025 Carbon neutral 2040 Stakeholder management Product policy Set up ESG governance Sustainable investment products Stakeholder commitment
Slide 13: A. Two core markets established: Core region focus
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 A. Two core markets established: Core region focus! Focus region AT Focus region CE (CZ, SK, PL, HU) Expansion of growing markets in CE – additionally supported by AXA CEE integration ▪ Health with strongest LoB Organic growth 2019-2
Slide 14: A. Two core markets established: Scalability in three core segments
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 A. Two core markets established: Scalability in three core segments! Retail Bank Corporate / Affinity Simplification, standardization Customization of product and scalability portfolio P&C Simplification and standardization Digital i
Slide 15: B. Core business improvement: Decreased cost ratio in 2025
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 B. Core business improvement: Decreased cost ratio in 2025! Net cost ratio, Planned reduction, percent Restructuring with significant headcount reduction (600 FTE) in Austria, facilitated by automation -2 pp 27 Synergies in CEE up to
Slide 16: B. Core business improvement: Significant profit improvement
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 B. Core business improvement: Significant profit improvement! Insurance technical result P&C and Health EUR millions Significant cost reductions − Efficiency improvements in Austria +9% CAGR − Strong synergies from AXA CEE integratio
Slide 17: C. Capital strength maintained: Strong capital position
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 C. Capital strength maintained: Strong capital position! Solvency II development1 Percent One-off decrease in 2020 following AXA CEE Excl. AXA CEE Incl. AXA CEE acquisition and planned restructuring provisions 221 205 Positive future
Slide 18: D. Shareholder return increasing: attractive dividends
Strategy UNIQA 3.0 | UNIQA Capital Markets Day | December 14, 2020 D. Shareholder return increasing: UNIQA 3.0 – attractive dividends ROE development Percent >9 Attractive and steady dividends for shareholders 50-60% Payout ratio 7.3 Stable, low-risk balance sheet <35% Leverage 2019 2025 18
Slide 19: Austria
Capital Markets Day December 14, 2020 2 Austria Andreas Brandstetter, CEO 19
Slide 20: Key messages
Austria | UNIQA Capital Markets Day | December 14, 2020 Key messages Foster top position in Health and as most trusted insurer and A Market leadership achieve market leadership in P&C by becoming best service provider Increase technical margins by reducing admin costs, achieving B Improve efficiency
Slide 21: A. Market leadership: Austria – strongest insurance brand
Austria | UNIQA Capital Markets Day | December 14, 2020 A. Market leadership: Austria – strongest insurance brand! Brand awareness1 Spontaneous brand awareness, percent 73 One-brand strategy with strong regional presence and branded locations across the country 56 55 52 Deep understanding of brand a
Slide 22: A. Market leadership: Austria – market leader
Austria | UNIQA Capital Markets Day | December 14, 2020 A. Market leadership: Austria – market leader! GWP Austria 2019 EUR millions 1,761 Focus on profitable growth in Retail P&C and profitability of commercial lines / Affinity 1,056 984 Strengthen market leadership in Health with innovative Market
Slide 23: A. Market leadership: aiming for market leadership in P&C
Austria | UNIQA Capital Markets Day | December 14, 2020 A. Market leadership: Austria – aiming for market leadership in P&C GWP P&C Future focus EUR millions +3.5% CAGR Standardization of product portfolio to accelerate profitable growth in Retail 1,704 1,761 1,541 1,569 1,622 Portfolio restructurin
Slide 24: A. Market leadership: future potential in Health
Austria | UNIQA Capital Markets Day | December 14, 2020 A. Market leadership: Austria – future potential in Health! Overview of healthcare sector Future focus Development of number of physicians in Austria, thousands Private physicians Panel doctors 9.6 9.8 Strong historical growth in the number of
Slide 25: A. Market leadership: continued success story in Health
Austria | UNIQA Capital Markets Day | December 14, 2020 A. Market leadership: Austria – continued success story in Health! Profitable growth (Group figures) Long-term profitability supported GWP, EUR millions by Austrian market specifics 3% CAGR 878 909 938 961 964 1,004 1,042 1,086 1,131 717 742 76
Slide 26: B. Improve efficiency: Austria – profitabilization
Austria | UNIQA Capital Markets Day | December 14, 2020 B. Improve efficiency: Austria – profitabilization! Insurance technical result P&C and Health EUR millions +9% Ambitiously lower costs driven by E2E process redesign, CAGR simplification and digitization ~205 ~155 Claims excellence program to l
Slide 27: B. Improve efficiency: significant cost reduction
Austria | UNIQA Capital Markets Day | December 14, 2020 B. Improve efficiency: Austria – significant cost reduction! Impact Selected cost initiatives EUR p.a. from 2022 Optimization and streamlining of E2E sales and after-sales process, ~ -40m e.g. through process redesign, bundling and streamlining
Slide 28: B. Improve efficiency: high investments into the future
Austria | UNIQA Capital Markets Day | December 14, 2020 B. Improve efficiency: Austria – high investments into the future! Internal cost perspective EUR millions ~ 30m ~675 Data & IT ~25 ~20 E.g. investments in IT 600 ~30 ~125 security and UIP ~550 ~ 20m Cost Data & IT Digitization Regular Cost base
Slide 29: C. Initiate Life restructuring: refocus of portfolio
Austria | UNIQA Capital Markets Day | December 14, 2020 C. Initiate Life restructuring: Austria – refocus of portfolio! GWP development Measures EUR millions Optimize product portfolio to increase profitability 984 – focus on biometrics and unit-linked life products Biometrics 10% ~900 10-15% Unit-l
Slide 30: C. Initiate Life restructuring: Austrian Life insurance generally attractive
Austria | UNIQA Capital Markets Day | December 14, 2020 C. Initiate Life restructuring: Austrian Life insurance generally attractive Austria Germany General Various similarities between Austrian and German traditional life business remarks Key differences due to new regulations or overall market dev
Slide 31: Austria: Summary – we deliver results
Austria | UNIQA Capital Markets Day | December 14, 2020 Austria: Summary – we deliver results Continuous GWP growth driven by P&C ~ +300 Strong earnings growth GWP growth 2019-25, EUR millions in Austria ~ +35-50 Significant administration cost reduction ~ -3 Earnings growth 2019-25, percent Net cos
Slide 32: Central and Eastern Europe
Capital Markets Day December 14, 2020 3 Central and Eastern Europe Wolfgang Kindl, C&M International 32
Slide 33: Key messages
Central and Eastern Europe | UNIQA Capital Markets Day | December 14, 2020 Key messages A Proven track record Strong, profitable and sustainable growth B AXA CEE acquisition Top five player in CEE C Future outlook Significant contribution to Group earnings 33
Slide 34: A. Proven track record: CEE – sustained growth
Central and Eastern Europe | UNIQA Capital Markets Day | December 14, 2020 A. Proven track record: CEE – sustained growth! GWP Growth Penetration per capita GWP p.a., percent GWP/GDP 19, perc. 1,961 2,002 0.3 4.5 AT CEE is growing faster CEE GWP per capita growth CEE 233 2.3 2.3 substantially higher
Slide 35: A. Proven track record: broadened footprint and relevance
Central and Eastern Europe | UNIQA Capital Markets Day | December 14, 2020 A. Proven track record: CEE – broadened footprint and relevance! EXCLUDING AXA CEE AT CEE 2001 2011 2019 Regional presence 21% CAGR GWP 1,561 EUR millions 1,080 49 Share of GWP 2 19 Percent of Group 29 81 71 98 Share of custo
Slide 36: A. Proven track record: strong premium and profit growth
Central and Eastern Europe | UNIQA Capital Markets Day | December 14, 2020 A. Proven track record: CEE – strong premium and profit growth! P&C segment 2.8% CAGR Refocus of retail business GWP 861 1,077 Penetration in non-motor and restructuring of EUR millions motor business COR -12 pp Percent 107 9
Slide 37: B. AXA CEE acquisition: CEE – top five player
Central and Eastern Europe | UNIQA Capital Markets Day | December 14, 2020 B. AXA CEE acquisition: CEE – top five player! GWP in CEE1 2019 EUR millions UNIQA AXA CEE Top five player in CEE 5th biggest insurer in CEE by GWP through 5,343 5,256 additional 4.8m customers #5 #7 3,521 Optimized cost stru
Slide 38: B. AXA CEE acquisition: strengthening core markets
Central and Eastern Europe | UNIQA Capital Markets Day | December 14, 2020 B. AXA CEE acquisition: CEE – strengthening core markets! Market position #x Pre-AXA CEE acquisition Substantial GWP growth #x Post-AXA CEE acquisition UNIQA seized top market position in all three #10 #5 countries PL #6 #5 C
Slide 39: B. AXA CEE acquisition: synergies of scale and skill
Central and Eastern Europe | UNIQA Capital Markets Day | December 14, 2020 B. AXA CEE acquisition: CEE – synergies of scale and skill! Planned synergies EUR millions Reorganization 15-20% Relocate and consolidate functions as well as 45 adopt new operating model of joint 35 cost base in CZ/SK, PL Co
Slide 40: C. Future outlook: CEE – significant contribution
Central and Eastern Europe | UNIQA Capital Markets Day | December 14, 2020 C. Future outlook: CEE – significant contribution! Critical initiatives Retail Corporate/Affinity Bancassurance Simplification of product portfolio by State-of-the-art modular risk Expansion of banking partnership with factor
Slide 41: CEE: Summary – we deliver results
Central and Eastern Europe | UNIQA Capital Markets Day | December 14, 2020 CEE: Summary – we deliver results Accelerated GWP growth driven by ~ +1.4 Strong earnings growth AXA CEE acquisition GWP growth 2019-25, EUR billions in CEE ~ +240-260 Significant cost reduction driven by acquisition synergie
Slide 42: Financials
Capital Markets Day December 14, 2020 4 Financials Kurt Svoboda, CFRO 42
Slide 43: Key messages
Financials | UNIQA Capital Markets Day | December 14, 2020 Key messages A 2020 as transition year Laying foundation for positive outlook in light of COVID-19 Continued disciplined capital management and conservatively B Solid capital position managed balance sheet C Strong ROE Growing ROE enables di
Slide 44: A. 2020 a transition year: Significant one-offs
Financials | UNIQA Capital Markets Day | December 14, 2020 A. 2020 a transition year: Significant one-offs! EXAMPLES 2018 2020 2025 Set-up Start UNIQA 3.0 and UNIQA 3.0 COVID-19 impact 2020 was a transition year with multiple items impacting our We are well positioned for the operating profit future
Slide 45: A. 2020 a transition year: COR on decline
Financials | UNIQA Capital Markets Day | December 14, 2020 A. 2020 a transition year: COR on decline! Net COR P&C development Percent Excl. AXA CEE Continuous decrease in COR from 2010 to 2020 due 105 to underwriting and operational improvements 105 2020 101 transition year1 2020 as a transition yea
Slide 46: B. Solid capital position: Solvency – solid capital position
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: Solvency – solid capital position! Solvency II development1 Percent One-off decrease in 2020 following AXA CEE Excl. AXA CEE Incl. AXA CEE acquisition and planned restructuring provisions 221 205 Positive future ef
Slide 47: B. Solid capital position: Solvency – solid capital position
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: Solvency – solid capital position! Solvency II Q3 2020 Split by risk module EUR millions Percent xx Solvency II, percent 215 Non-Life underwriting Life underwriting 13 4,799 % 18% Health SLT / CAT Tier 3 4 3% 1,122
Slide 48: B. Solid capital position: interest rate and credit risk driving market risk
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: Solvency – interest rate and credit risk are driving market risk requirement! SCR PIM market risk profile Q3 2020 EUR millions xx Risk profile, percent Interest rate risk driven by long-term business from 31 19 4 2
Slide 49: B. Solid capital position: Solvency – high resilience
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: Solvency – high resilience! Impact of sensitivities on SCR-ratio 2019 Percent Delta to base Base value 221 value, pp Sensitivity of Solvency ratio regarding interest rate Interest rates +50 bps 249 +28 movements an
Slide 50: B. Solid capital position: Freeing up capital
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: Freeing up capital! Development of Life reserves EUR billions Actuarial reserve Actuarial interest, percent Plan excl. More than 30% of the back book will be ran-off 11.1 new business continuously over the next dec
Slide 51: B. Solid capital position: Duration gap in Austrian Life closed
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: Duration gap in Austrian Life has been closed! Duration gap in Austrian Life business Years Asset duration Liabilities duration ~5 ~0.5 Significant reduction of duration gap by increasing asset duration in the last
Slide 52: B. Solid capital position: Diversified investment strategy
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: Diversified investment strategy! AUM at book value Q3 2020 AUM at market value Q3 2020 EUR billions EUR billions Total = 22.3 Total = 23.4 0.2 Fixed income 0.4 0.80.7 1.2 Credit balances, checks and cash 1.20.6 0.4
Slide 53: B. Solid capital position: Diversified bond mix
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: Diversified bond mix! Composition of bonds Q3 2020 Rating distribution EUR billions Percent Not Total = 16.1 rated <BBB 4 4 Other fixed income 4 4 0.2 BBB 19 18 Corporate bonds A 25 26 5.4 AA 25 25 10.5 AAA 23 23 G
Slide 54: B. Solid capital position: Low risk exposure
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: Low risk exposure! Corporate bonds – sector breakdown Percent Industrials Communications Government-rel. Consumer Diversified corporate bond portfolio with strong 5.3 4.9 6.2 4.5 Energy focus on Financials 4.4 Util
Slide 55: B. Solid capital position: Impacted by low interest rates
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: Impacted by low interest rates Investment yield1 Excl. AXA CEE, percent Investment yield impacted due to high exposure to fixed-income assets and low interest environment Reassessment of investment strategy targeti
Slide 56: B. Solid capital position: High reinvestments
Financials | UNIQA Capital Markets Day | December 14, 2020 B. Solid capital position: High reinvestments! Investments in illiquid assets Residual reinvestments EUR billions EUR billions Excl. AXA CEE Incl. AXA CEE Stabilization of investment yield through new Residual reinvestments of EUR 2.4bn in A
Slide 57: C. Strong ROE: Strong GWP growth
Financials | UNIQA Capital Markets Day | December 14, 2020 C. Strong ROE: Strong GWP growth! GWP development Growth EUR millions 2019-2025, CAGR Excl. AXA CEE Contribution of GWP EUR ~1bn through AXA CEE 5% acquisition CAGR 7.0 Expansion in P&C through simple products (Retail) 6.4 and tailored solut
Slide 58: C. Strong ROE: Cost ratio – reaping the benefits
Financials | UNIQA Capital Markets Day | December 14, 2020 C. Strong ROE: Cost ratio – reaping the benefits! Net cost ratio development Percent Special effects Acquisition and other Opex Commissions Excl. AXA CEE Short-term increase due to significant investments ~-2 of up to EUR 145m for strategy,
Slide 59: C. Strong ROE: ROE – significant increase
Financials | UNIQA Capital Markets Day | December 14, 2020 C. Strong ROE: ROE – significant increase! ROE development Percent Increase in net income following GWP growth trajectory, decreased COR and improved cost >9 structure ~8 7.3 Opposing trend due to decline in investment income as a result of
Slide 60: C. Strong ROE: Leverage – enables high dividend payments
Financials | UNIQA Capital Markets Day | December 14, 2020 C. Strong ROE: Leverage – enables high dividend payments! First call dates and interest expense1 EUR millions 1st Call Interest expense xx Leverage ratio, percent Significant debt repayments in 2023 and 2025 39 37 <35 <35 <35 350 200 Lower l
Slide 61: UNIQA 3.0: Ambitious targets
Financials | UNIQA Capital Markets Day | December 14, 2020 UNIQA 3.0: Ambitious targets! Excl. AXA CEE Incl. AXA CEE UNIQA Group targets 2019 actuals, 2022 and 2025 targets 2019 2022 2025 Gross Written Premiums 5.4 ~6.4 ~7.0 EUR billions Operating Net cost ratio 27 ~27 ~25 business Percent Net combi