UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — UNIQA Group — RCB Institutional Investor Conference 2013
41 slides from UNIQA Insurance's conference presentation, Apr 12, 2013
Slide 1: UNIQA Group Investor Presentation
UNIQA Group Investor Presentation RCB Institutional Investor Conference Zürs, 11/12 April 2013
Slide 2: Presenters and Agenda
Presenters and Agenda Today’s presenter Agenda Andreas Brandstetter CEO 1. Business overview 2. Strategy programme UNIQA 2.0 Investor meetings Hannes Bogner CFO 3. Conclusion 1
Slide 3: Agenda
Agenda Business overview Strategy programme UNIQA 2.0 Conclusion Appendix: Additional information
Slide 4: UNIQA at a glance
UNIQA at a glance • UNIQA is one of the leading international insurance groups in Austria and across CEE – Second-largest insurer in home market Austria with a market share of 22.2%(a) – Broad international presence including 19(b) regional markets (excluding Austria) • Active in all lines of insura
Slide 5: Financial snapshot
Financial snapshot €m 2012 2011 % Gross written premiums(a) 5,543 5,534 0.2% (Recurring) gross written premiums(a) 5,010 4,933 1.5% Investment result 792 202 292.2% Earnings before tax (including one-offs) 205 (322)(b) nm Earnings before tax (excluding one-offs) 205 145(b) 41.4% Net profit(c) 130 (
Slide 6: Leading position in Austria with diversified portfolio
Leading position in Austria with diversified portfolio A leading insurer in Austria GWP growth total market and health in Austria (a) 22.2% Total market share (Rank) 3.6% 3.6% 3.4% 3.2% P&C 17.9% 2 3.0% 2.0% 1.2% Market share Health 48.0% 1 0.2% -0.9% -1.7% Life 20.8% 2 2009 2010 2011 2012 2013e Tot
Slide 7: Wide footprint across CEE with strong growth record
Wide footprint across CEE with strong growth record Broad presence in CEE UNIQA recurring premium volume in CEE (€m) (a) 1,183 1,095 32 1,017 25 902 17 849 14 8 904 855 821 702 730 179 215 247 138 157 2008 2009 2010 2011 2012 Life P&C Health (a) GWP excluding single premiums Source: Company informat
Slide 8: Diversified distribution channels and strong brands
Diversified distribution channels and strong brands Austria GWP by distribution channel Strong brands in Austria and CEE • Highest customer reach among all insurance companies in Austria (31% in 2011)(a) Total Austria GWP 2012: €3,556m • UNIQA is the strongest Austrian insurance brand (with an aided
Slide 9: Agenda
Agenda Business overview Strategy programme UNIQA 2.0 Conclusion Appendix: Additional information
Slide 10: Strategic framework of UNIQA 2.0
Strategic framework of UNIQA 2.0 presented in May 2011 Concentrate on • Concentration on stable market Austria and growth region CEE core insurance business • Diversified business mix across business lines Increase • We aim to raise our number of customers to 15m by 2020 number of clients • In 2012
Slide 11: UNIQA 2.0: priority programmes
UNIQA 2.0: 4 priority programmes Development of profit on ordinary activities (€m) 1 Restructuring of Austrian business Up to €400m improvement Increase productivity of 2 bancassurance in Austria 205 3 Profitable growth in CEE 142 145 4 Optimising risk/return profile (a) 2010 2011 2012 2015 (ambitio
Slide 12: Restructuring of Austrian business to increase profitability
1 Restructuring of Austrian business to increase profitability Net cost ratios in Austria (2011) Key initiatives Simplification of • Simplified corporate structure corporate • Achievement of synergies and regulatory UNIQA structure capital improvements 28.5% Austria • Reorganisation of the 9 regiona
Slide 13: Increase productivity of bancassurance in Austria
2 Increase productivity of bancassurance in Austria Raiffeisen at a glance Significant upside potential in Austria In Austria In CEE • Further simplification and transparency for “annex” products tailored to Raiffeisen • Distribution via local • Distribution via Raiffeisen Tailored customers Raiffei
Slide 14: Growth potential in CEE markets
3 Growth potential in CEE markets Insurance density(a) (€) Ranking UNIQA 2 8 5 12 6 11 10(b) 6 4 7 4 5 8 5(c) 3 1 • Focus on the 16 CEE markets 2,500 • Increased investments in own distribution and bancassurance with RBI in CEE 2,102 Austria in 1993 – 2004 2,000 1,954 • Implementation of transparent
Slide 15: Optimising the risk/return profile
4 Optimising the risk/return profile Funds under own management (31 December 2012) Key initiatives Alternatives • Set-up of ALM process for group and all local 3.0% Participations entities Equities ALM 3.1% 3.3% • Implementation of internal risk/return evaluation of non-life portfolio Real estate 9.
Slide 16: What have we achieved so far?
What have we achieved so far? • Strengthen balance sheet structure to capture short-term opportunities (buy-out of EBRD(a) minorities, M&A) and finance Rights issue organic growth 2012 – Rights issue of €500m successfully completed • Clear and less complex Group structure as basis for UNIQA 2.0 su
Slide 17: Agenda
Agenda Business overview Strategic plan ‘UNIQA 2.0’ Conclusion Appendix: Additional information
Slide 18: Summary of FY 2012 results and outlook 2013
Summary of FY 2012 results and outlook 2013 • Stable and sound underlying core operating business despite challenging market environment • Continuing positive growth trend in P&C and Health partly offsets planned cutback of single premium business in Austria and Poland • In FY 2012 UNIQA achieved ea
Slide 19: Investment highlights
Investment highlights • Leading position in Austria • Strong upside from ongoing restructuring programme in Austria Attractive combination of: • Wide footprint across CEE with strong profitable growth outlook • Short-term restructuring play • Mid-to long-term CEE growth story • Preferred bancassuran
Slide 20: Agenda
Agenda Business overview Strategic plan ‘UNIQA 2.0’ Conclusion Appendix: Additional information
Slide 21: Key financials – FY 2012 results
Key financials – FY 2012 results GWP(a) (€m) Combined ratio (net) (%) 6,224 105.4 104.9 5,739 (3.6)ppts 5,534 0.2% 5,543 1,084 102.2 101.3 855 601 533 4,884 5,140 4,933 5,010 (b) (b) 2009 2010 2011 2012 Recurring premiums Single premiums 2009 2010 2011 (b) 2012 (b) Investment result (€m) Earnings be
Slide 22: Premium growth: business segments
Premium growth: business segments Premiums by business segment (2012 vs 2011) (€m) • The premium volume written in property and casualty insurance grew by 5.6% to €2,546m Recurring premiums: €5,010m (+1.5%) • The premium volume written in health insurance increased by (11.2)% 0.2% 3.3% to €909m (5.4
Slide 23: Premium growth: regions
Premium growth: regions Gross written premiums by region (2012 vs 2011) (€m) • In Austria, premiums written decreased by 3.2% to €3,566m due to lower single premiums in life insurance +12.0% +0.2% – Recurring premiums in Austria also declined by 2.0% to €3,474m 681 +4.5% – Single premiums declined b
Slide 24: Operating expenses
Operating expenses Operating expenses (net) (€m) Cost ratio (net) 1,413 36.9% 1,319 (1.8)ppt (6.6)% 32.9% 498 (27.1)% 363 26.8% 25.0% 20.5% 19.9% 16.4% 15.3% +4.5% 914 956 2011 2012 P&C Health Life Group P&C Health Life Group Acquisition cost Other operating expenses 2011 2012 • Total operating expe
Slide 25: Combined ratio (P&C)
Combined ratio (P&C) • Net claims ratio rose slightly to 68.4% (+0.4ppt) due to (3.6)ppt an increase in major claims and some NatCat claims 104.9% 101.2% 101.3% 98.1% 100% • Operating expenses improved to 32.9% (-4.0ppt) 36.9% 32.9% 35.4% 31.5% • Net combined ratio after reinsurance improved in 2012
Slide 26: Investment activity
Investment activity Investment income (€m) • The net investment income strongly increased to €792m due Total 2011: 227m/202m(a) to good performance on capital markets in 2012 while 2011 Total 2012: €792m(a) 250 figures were impacted by write-down on Greek bonds 207 215 200 200 204 218 175 170 103 80
Slide 27: Investment allocation
Investment allocation By product By rating Equities 3.8% Participations Alternatives 3.6% 27.0% 3.9% 25.9% Cash 24.0% 8.4% 22.6% 21.3% Real estate 20.9% 9.3% Bonds 71.0% 16.0% Total 2011: €20bn 14.0% 12.3% 11.0% Equities 3.1% Participations Alternatives 3.3% 3.0% Cash 10.2% 3.3% Real estate Bonds 1.
Slide 28: Income statement
Income statement €m 2012 2011 % Premiums written (retained) 4,651 4,703 (1.1)% Premiums earned (retained) 4,624 4,665 (0.9)% Income from fees and commissions 36 29 22.1% Net investment income 792 202 292.2% Other income 47 77 (39.4)% Total income 5,498 4,973 10.6% Insurance benefits (3,759) (3,658)
Slide 29: Balance sheet
Balance sheet Assets Liabilities €m 2012 2011 % €m 2012 2011 % Tangible assets 307 384 (20.0)% Total equity 2,018 1,096 84.2% Land and buildings held as financial investments 1,691 1,567 7.9% Subordinated liabilities 450 575 (21.7)% Intangible assets 1,414 1,500 (5.7)% Shares in associated compani
Slide 30: P&L regions
P&L regions Premiums earned Claims/ Profit on ordinary (retained) insurance benefits Operating expenses activities €m 2012 2011 % 2012 2011 % 2012 2011 % 2012 2011 % Austria 2,868 3,039 (5.6)% (2,557) (2,438) (4.9)% (798) (930) (14.2)% 153 (266) nm WE 1,076 986 9.2% (790) (791) (0.1)% (320) (254
Slide 31: Product lines
Product lines Premiums Profit on earned (retained) Claims/Insurance benefits Operating expenses ordinary activities €m 2012 2011 % 2012 2011 % 2012 2011 % 2012 2011 % P&C 2,403 2,257 6.4% (1,644) (1,529) 7.5% (798) (844) (5.4)% (20) (137) (85.2)% Health 903 874 3.4% (757) (738) 2.5% (139) (143)
Slide 32: Reduced exposure to PIIGS
Reduced exposure to PIIGS Market value Acquisition costs Market value Acquisition costs • Due to the participation of the Issuer (€m) 31-Dec-2012 31-Dec-2012 31-Dec-2011 31-Dec-2011 private sector, UNIQA sold the majority of its holding in Greek Portugal 0 0 56 102 debt instruments prior to the exch
Slide 33: Equity position (including minority interest)
Equity position (including minority interest) Solvency I ratio 123% 215% +€922m 52 (197) 360 (59) 2,018 242 524 1,096 +€654m Equity 2011 Subscribed capital Revenue reserves Revaluation Total profit Minority interests Other Equity 2012 and capital reserves reserves 09/04/2013 17:56 13bLD0109_Client P
Slide 34: Several one-time items affected the results in 2011
Several one-time items affected the results in 2011 1 Personnel costs €(75)m 1 Provisions for employee benefits Restructuring 2 Pension scheme €(30)m 2 Expansion of pension scheme costs: €(131)m Other restructuring costs including consulting costs, IT and other 3 Other restructuring costs €(26)m 3 e
Slide 35: Simplified Group structure
Simplified Group structure Structure before Autumn 2012 New structure (Autumn 2012) UNIQA UNIQA Versicherungen AG Versicherungen AG 100%(b) 100% 100% 100%(b) 100% UNIQA UNIQA Raiffeisen UNIQA Österreich UNIQA Sachversicherung AG International AG Versicherung AG Versicherungen AG(a) International AG
Slide 36: Risk management as a key focus area
Risk management as a key focus area Risk management organisation and culture • UNIQA-wide risk management governance including stable risk management processes • Risk management information is part of every management and supervisory board meeting • Employee awareness through special training and on
Slide 37: UNIQA's management team
UNIQA's management team Andreas Brandstetter Hannes Bogner CEO CFO • Appointed Chairman of the Management Board and CEO of • Appointed Chief Financial Officer (CFO) of the Company in the Company in 2011 1999. His responsibilities as a member of the Management Board comprise Group Finance and as from
Slide 38: UNIQA's management team (continued)
UNIQA's management team (continued) Wolfgang Kindl Thomas Münkel UNIQA International COO • Member of the Company's Management Board since 2011 • Appointed as Chief Operating Officer (COO) of the Company in January 2013. His main tasks are aligning the processes • Appointed Chairman of the Management
Slide 39: UNIQA's management team (continued)
UNIQA's management team (continued) Kurt Svoboda CRO • Appointed Chief Risk Officer (CRO) of the Company in 2011 • His main responsibilities at the Company lie within the area of investments back-office, Group actuarial services, Group controlling and value based management (VBM) including complianc
Slide 40: Shareholder information and contacts
Shareholder information and contacts General information Contact details • Listed since 1999 on the Vienna Stock Exchange UNIQA Group • 214.2m common shares Investor Relations • ISIN: AT0000821103 Dividend per share (in €) Michael Oplustil, Stefan Glinz 211% 133% - 41% Address: Untere Donaustrasse 2
Slide 41: Disclaimer
Disclaimer This presentation (the "Presentation"), and the information contained therein, is not directed to, or intended for viewing, release, distribution, publication or use by (directly or indirectly, in whole or in part), any person or entity that is a citizen of, or resident or located in, the
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