UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — FY2017 Earnings Presentation
45 slides from UNIQA Insurance's earnings presentation, Feb 28, 2018
Slide 1: FY17 Preliminary Results
UNIQA Insurance Group AG FY17 Preliminary Results FY17 results right on target 28 February 2018 Andreas Brandstetter, CEO Kurt Svoboda, CFO/CRO, CEO UNIQA Austria
Slide 2: Highlights
FY17 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 FY17
Executive Summary FY17 Gross written premiums(a) increased 4.9% driven by all lines of business Net combined ratio improved to 97.5% (98.1% in FY16) Net cost ratio at 25.0% (26.6% in FY16) Net investment result decreased to EUR 560.9m (EUR 588.9m in FY16) Earnings before taxes improved to
Slide 4: Snapshot FY17
Snapshot FY17 Growth above expectations in EURm FY16 FY17 % CEE (P&C and single-Life) and AT (P&C) Gross premiums written(a) 5,048.2 5,293.3 4.9% Premiums earned (retained) 4,443.0 4,627.9 4.2% Impairment on fixed income securities and FX losses only Net investment income 588.9 560.9 -4.7% partiall
Slide 5: Key Financial Indicators
Key Financial Indicators Earnings per share (EUR) Regulatory and Economic Capital Position (%) 1.21 SCR ECR 1.09 ~ 250% 0.94 194% 202% 215% ~ 216% 182% 155% 161% 153%150% 0.48 0.53 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17e Operating Return on Equity (%) Book value per share (EUR) 10.34 10.3
Slide 6: Group Results
FY17 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 above expectations in all business lines
Continued growth above expectations in all business lines Gross written premium(a) per business line EURm 4.9% 1.1% 5,211 5,293 1,512 4.9% 5,026 5,048 254 65 5,293 275 441 169 1,287 5,048 1,236 1,245 1,249 254 1,358 361 169 1,357 52 77 64 47 1,405 1,367 1,358 1,357 354 331 313 352 1,042 270 964 1,00
Slide 8: Cost Ratio decreased to 25.0%
Cost Ratio decreased to 25.0% Cost ratio (net) (%), Costs (EURm) -0.8% -5.3% -0.8% 1,286 1,276 352 1,200 1,190 1,286 1,276 331 333 315 297 417 420 361 346 127 100 417 420 102 123 94 226 212 228 210 54 228 210 26.6% 63 53 24.8% 25.0% 45 58 23.7% 28.4% 25.9% 26.5% 24.1% 23.6% 26.6% 25.0% 614 632 642 6
Slide 9: P&C: COR improved to 97.5% despite weather impact
P&C: COR improved to 97.5% despite weather impact Combined ratio (net) (%) 1.5 pp 97.4% 97.7% 97.8% 98.8% -0.6 pp 95.9% pp 98.1% 97.5% 99.5% 97.9% 98.1% 97.5% 31.8% 30.3% 32.8% 35.2% 31.5% 30.6% 32.4% 31.6% 30.4% 32.4% 31.6% 65.9% 64.4% 67.4% 66.0% 69.0% 62.2% 65.7% 65.9% 67.5% 65.7% 65.9% 2014 2015
Slide 10: P&C: EBT increased to EUR 83.9m in FY17
P&C: EBT increased to EUR 83.9m in FY17 (+44.8% yoy) Net premiums earned EURm Investment result EURm Earnings before taxes EURm 2.9% 33.9% 643 32 N/A 27 29 21 630 26 24 20 611 22 16 611 594 -8 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4Q17 Strong growth in CEE: Driven b
Slide 11: Health: Solid EBT contribution on improved underwriting
Health: Solid EBT contribution on improved underwriting and stable investment result in FY17 Cost – benefit ratio (%) Investment result EURm Earnings before taxes EURm 105% -53.6% 101% 101% 101% 95% -30.3% 47 47 15% 19% 51 20% 18% 42 14% 45 22 36 36 81% 83% 87% 82% 86% -1 -1 4Q16 1Q17 2Q17 3Q17 4Q17
Slide 12: Life: Decreased earnings before tax
Life: Decreased earnings before tax reflecting lower net investment and other result in FY17 Reserve (net) EURbn Investment result EURm Earnings before taxes EURm -52.7% 37 5.6% 102 99 16,224 15,970 15,803 15,780 94 48 18 15,775 84 24 32 28 51 19 7 11 0 4Q16 1Q17 2Q17 3Q17 4Q17 4Q16 1Q17 2Q17 3Q17 4
Slide 13: Investment Activity
Investment Activity Investment income EUR 281 Net investment result of EUR 560.9m in FY17 209 218 (EUR 588.9m in FY16) 191 190 182 167 170 158 161 167 142 145 135 Current income of EUR 510.6m in FY17 (EUR 108 537.1m in FY16) 76 Contribution from participation in STRABAG: EUR +42.4m in FY17 (EU
Slide 14: Outlook
FY17 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 around 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 therefo
Slide 16: Operating Segments
FY17 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 FY16 FY17 Δ yoy Gross premiums written flattish ytd; stop of sale of single premium Gross premiums written(a) 3,631.5 3,656.6 0.7% business products in life segment (-55.0%) overcompensated by Reinsurers' share -689.3 -665.2 -3.5% growth in non-life (motor) business a
Slide 18: UNIQA Austria P&C
UNIQA Austria P&C Financial Highlights EURm FY16 FY17 Δ yoy Gross premium written increased 3.4% ytd caused by motor Gross premiums written(a) 1,568.6 1,621.8 3.4% business and property retail business growth; moderate growth of Reinsurers' share -627.4 -621.7 -0.9% other lines of business Change
Slide 19: UNIQA Austria Health
UNIQA Austria Health Financial Highlights EURm FY16 FY17 Δ yoy Gross premiums written continued growth trend due to premium Gross premiums written(a) 956.3 979.7 2.4% adjustments and a successful cooperation with business partner Reinsurers' share -0.6 -0.2 -62% Hartlauer Change due to premiums ea
Slide 20: UNIQA Austria Life
UNIQA Austria Life Financial Highlights EURm FY16 FY17 Δ yoy Gross premiums written(a) 1,106.5 1,055.2 -4.6% Decline in top line driven by reduction of single premium business; Reinsurers' share -61.4 -43.3 -29.4% recurring premium decline of -1.3% partly compensated with Change due to premiums ea
Slide 21: UNIQA International
UNIQA International Financial Highlights EURm FY16 FY17 Δ yoy Gross premiums written(a) 1,399.9 1,608.5 14.9% Gross Written Premiums increased by 14.9% vs FY16 (13.2% FX adjusted) driven by Life single business mainly sold in Poland, other Reinsurers' share -424.0 -455.2 7.3% P&C and motor busines
Slide 22: UNIQA International P&C
UNIQA International P&C Financial Highlights EURm FY16 FY17 Δ yoy Gross premiums written increased 5.8% compared to FY16 (4.7% Gross premiums written(a) 942.3 997.3 5.8% FX adjusted); growth in other P&C due to new big insurance Reinsurers' share -413.8 -442.2 6.9% contract in Ukraine and higher p
Slide 23: UNIQA International Health
UNIQA International Health Financial Highlights EURm FY16 FY17 Δ yoy Gross premiums written(a) 47.7 62.8 31.7% Gross premium written: increased 31.7% where as highest growth rate is recorded in Croatia, Russia, Ukraine and Liechtenstein Reinsurers' share -1.9 -3.5 88% Change due to premiums earned
Slide 24: UNIQA International Life
UNIQA International Life Financial Highlights EURm FY16 FY17 Δ yoy Gross premiums written: Increased by +33.8% Gross premiums written(a) 409.9 548.4 33.8% Reinsurers' share -8.4 -9.4 12.9% Significant increase in PL - main growth driver unit- Change due to premiums earned 0.2 -0.7 N/A linked Lif
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 FY17 % to PY FY17 % to PY FY17 % to PY FY17 % to PY FX adjusted (b) Western Europe (WE) 30.6 21.4% 13.5 19.1% 0.0 44.0 20.7% 20.9% Western Europe (WE) 30.6 21.4% 13.5 19.1% 0.0 44.0 20.7% 20.9% Cze
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 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 Western Europe (WE) (b) 15.3 12.5 -0.8 0.4 145.1% 138.0% 24.7% 30.8% 0.4 0.9 Western Europe (WE) 15.3 12.5 -
Slide 27: Reinsurance
Reinsurance Financial Highlights EURm FY16 FY17 Δ yoy Gross premiums written(a) 1,130.8 1,091.6 -3.5% Comprises the reinsurance activities of UNIQA Insurance Group AG Reinsurers' share -94.5 -98.7 4.4% in Vienna and the central reinsurance hub UNIQA Re in Zurich Change due to premiums earned -13.6
Slide 28: Group Functions
Group Functions Financial Highlights EURm FY16 FY17 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 FY16 FY17 Δ yoy Gross premiums written(a) -1,113.9 -1,063.4 -4.5% Consolidation of intercompany effects Reinsurers' share 1,015.5 1,033.9 1.8% Change due to premiums earned -1.0 -0.5 -49.9% Net Premiums Earned(a) -99.4 -30.1 -69.8% Savings portion included i
Slide 30: Group Balance Sheet
Group Balance Sheet Assets Liabilities EURm Dec17 Dec16 EURm Dec17 Dec16 A. Total equity 3,193.4 3,212.8 -0.6% A. Tangible assets 310.6 265.2 17.1% B. Land and buildings held as financial I. Shareholder equity 3,177.6 3,186.3 -0.3% investments 1,233.9 1,350.0 -8.6% C. Intangible assets 1,529.5 1,492
Slide 31: Shareholders' equity (excluding minority interest)
Shareholders‘ equity (excluding minority interest) EURm 3.186 3.178 76 57 150 161 Dec 16 Valuation of financial Dividend payment Profit attributable Other Dec17 instruments AFS to shareholders Shareholders’ equity decreased in FY17: Revaluation reserves decreased mainly due to interest rates ytd d
Slide 32: Group Income Statement
Group Income Statement EURm 4Q16 1Q17 2Q17 3Q17 4Q17 FY16 FY17 Δ yoy Gross premiums written(a) 1,235.9 1,511.9 1,286.7 1,245.3 1,249.5 5,048.2 5,293.3 4.9% Reinsurers' share -51.0 -70.0 -30.6 -36.7 -47.9 -192.3 -185.3 -3.7% Change due to premiums earned 52.0 -162.1 47.9 52.1 58.2 -28.2 -3.9 -86.1% N
Slide 33: Group P&C
Group P&C Financial Highlights EURm FY16 FY17 Δ yoy Gross premiums written 2,518.4 2,639.7 4.8% Gross Written Premiums increased 4.8% as a result of strong growth Reinsurers' share -133.0 -143.2 7.6% in CEE driven by motor business in CZ, SK, HU and non-motor Change due to premiums earned -26.4 -1
Slide 34: Group Health
Group Health Financial Highlights EURm FY16 FY17 Δ yoy Gross premiums written 1,003.7 1,042.0 3.8% Gross Premiums Written increased by 3.8% Reinsurers' share -1.3 -1.1 -12% Change due to premiums earned -2.0 -2.0 -3.1% UNIQA International: 31.7% Net Premiums Earned 1,000.4 1,038.9 3.9% UNIQA A
Slide 35: Group Life
Group Life Financial Highlights EURm FY16 FY17 Δ yoy Gross premiums written(a) 1,526.1 1,611.6 5.6% Gross Premium Written rose 5.6% ytd driven by positive development Reinsurers' share -58.0 -41.0 -29.4% in both recurring and single premium business in UI (EUR +144.1m Change due to premiums earned
Slide 36: Asset Management
FY17 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 32% Dec16 EUR 16.5bn 2% Governent Bonds EU 26% 11% 25% 25% 23% 19% Covered Bonds 11% 14% 14% 46% Corporates 7% 8% 11% 4% 3% Government Bonds Non-EU Financials AAA AA A BBB <BBB Not rated 18% Dec 17 Dec 16 Other By segment Dec 17 EUR 16.5
Slide 38: Fixed income portfolio: Government and government related
Fixed income portfolio Government and government related Overall composition EUR 9.7bn Rating distribution Rest of Europe 4% 2% 4% Austria 4% 29.6% Rest of World 7% 34% Poland 27.9% Belgium 7% France 8% Europa Slovakia 20.5% 9% 13% Ireland 9% Supranational Organisations By segment Italy 12.4% 9.4% 2
Slide 39: Fixed income portfolio: Corporates including financials
Fixed income portfolio Corporates including financials Overall composition EUR 3.3bn Rating distribution 4% 2% United States of America 5% Rest of Europe 21% 33.8% 7% Austria France 30.4% 10% Germany 17% United Kingdom 10% Rest of World Europa 11% 13% Netherlands By segment Italy 13.2% 12.1% 20% 7.6
Slide 40: Fixed income portfolio: Corporate thereof financials
Fixed income portfolio Corporate thereof financials Overall composition EUR 1.3bn Rating distribution United States of America 4% 4% 40.7% 5% Austria 30% 6% Germany 6% Rest of World France 7% Netherlands United Kingdom 15% 24% Switzerland Rest of Europe By segment 20.5% 18.0% 14.8% 29% 6.0% P&C Heal
Slide 41: Fixed income portfolio: Covered bonds
Fixed income portfolio Covered bonds Overall composition EUR 3.2bn Rating distribution Rest of Eurpoe 65.1% 3%3% 4% 17% Austria 6% France Germany 8% United Kingdom 17% Australia 8% Netherlands 8% Spain Rest of World 16% 9% Belgium By segment Norway 24.3% 17% P&C 6.5% 3.4% 21% Health 0.7% 0.0% 62% Li
Slide 42: Shareholder Information
FY17 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% 2.5% Free Float 7.6% 8.2% 36.9% Raiffeisen Zentralbank Austria 44.3% Continental Europe UNIQA North America 49.0% Versicherungsverein 20.6% Privatstiftung UK & Ireland Collegialität Germany Versicherungs
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