UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — Investor Presentation (September 2016)
87 slides from UNIQA Insurance's investor presentation, September 2016
Slide 1: UNIQA Insurance Group AG Investor Presentation
UNIQA Insurance Group AG Investor Presentation Sep/Oct/Nov
Slide 2: Agenda
UNIQA Group Highlights Capital & Risk Management 6M16 Results Life P&C Appendix Health Embedded Value Additional Information UNIQA Investor Relations 2
Slide 3: UNIQA at a glance
UNIQA at a glance Key financials EURm Organisational structure 2012(a) 2013 2014 2015 UNIQA Insurance Group Gross written premiums(b) 5,543 5,886 6,064 6,325 Premiums earned (retained)(b) 5,274 5,641 5,839 6,102 Raiffeisen Profit on ordinary activities UNIQA UNIQA 204 308 378 423 UNIQA Austria Insur
Slide 4: Market leading position in Austria
Market leading position in Austria Market shares in Austria(a) Macro situation and market structure P&C 17.6% 2 Highly concentrated insurance market Top 4 players with almost 70% market share in P&C and Life(a) Health 47.0% 1 Stable market structure Distribution of market shares relatively s
Slide 5: Secular and profitable growth opportunity in CEE
Secular and profitable growth opportunity in CEE Broad CEE platform with 15 core markets Insurance(a) density 6.689 2.551 Central Europe (CE) Eastern Europe (EE) South Eastern Europe (SEE) 2.238 Clients: 3.0m Clients: 0.9m Clients: 1.9m 2.174 GWP: EUR 789m GWP: EUR 144m GWP: EUR 292m 2.034 Share of
Slide 6: UNIQA International with a strong footprint to leverage potential in CEE
UNIQA International with a strong footprint to leverage potential in CEE UNIQA GWP UNIQA GWP CAGR(d) UNIQA UNIQA Insurance penetration (FY2015, EURm) (2006–15) market share Rank 2014(b) Austria 3.919 1.5% 22.24% 2 5.7% Poland 274 4.5% 2.10% 11 3.1% Czech Republic 213 7.0% 4.33% 6 3.0% Hungary 189 0.
Slide 7: Multi-channel distribution and strategic bancassurance agreements with Raiffeisen
Multi-channel distribution and strategic bancassurance agreements with Raiffeisen Austria GWP(a) by distribution channel CEE GWP(a) by distribution channel Bank Bank 24% 18% Own sales force and exclusive agencies Direct and others 37% Own employees Direct and others 47% and exclusive agencies 6% 5%
Slide 8: Key pillars of preferred strategic bancassurance partnership with RBI in CEE
Key pillars of preferred strategic bancassurance partnership with RBI in CEE Key highlights of preferred strategic bancassurance framework agreement Formalises framework of bancassurance model in CEE with aim of broad and comprehensive co-operation Indefinite period; cancellation with 1 year notic
Slide 9: Current market conditions challenge traditional business models
Current market conditions challenge traditional business models Expected investment yield Yield in % Substantial decline in investment yield 4 in 2016 driven mainly by ‒ Ongoing low interest rate environment 3 ‒ Maturing of high interest rate bonds ‒ Significantly reduced real 2 estate sales in 20
Slide 10: Digital Transformation: distinct initiatives ensure business sustainability
Distinct initiatives ensure business sustainability 2011–2012 2013–2015 2016–2020 Get ready Start winning Create future Our key initiatives for core business …have a positive effect on all our strategic pillars excellence and digital relevance… Customer Ensure customer 1 growth relevance Life Digita
Slide 11: Structural integration of all risk carriers in Austria
Structural integration of all risk carriers in Austria Our Group structure today Our new functional Group structure (end of 2016) UNIQA Insurance Group UNIQA Insurance Group Raiffeisen UNIQA UNIQA UNIQA UNIQA UNIQA UNIQA Insurance Inter- Re- Austria Austria International Re-insurance Austria nationa
Slide 12: Streamlined board level enables functional steering
Streamlined board level enables functional steering Our UNIQA management team CEO CFRO COO CITO CITO CBO CSO Life/Health Non-Life Bancassurance Sales UNIQA Insurance Group Andreas Kurt Erik Brandstetter Svoboda Leyers UNIQA Austria Hartwig Kurt Erik Peter Andreas Klaus Löger Svoboda Leyers Eichler K
Slide 13: UNIQA will further improve its cost base
UNIQA will further improve its cost base Cost development UNIQA’s plan up until 2020 Expenses in €M Approx. additional € 240M 800 15% costs until 2020 (~€ 100M in 13% 13% 2016) to advance UNIQA’s 12% future business model 11% 11% ‒ Further improve operational 10% 10% excellence in core business 9%
Slide 14: Reduced capital requirements and sustainable cash flow enable increasing dividend payments
Reduced capital requirements and sustainable cash flow enable increasing dividend payments Anticipated dividends ECR quota in % Dividend per share in € 200 >180 ECR quota expected to ECR ambition level: 170 % 1.6 remain above ambition 160 level from 2015 onwards 161 150 1.2 ‒ Product shift to less
Slide 15: Significant investments are required to advance UNIQA's business model
Significant investments are required to advance UNIQA’s business model Investments assigned to initiatives 2016–2020 2021–2025 Investment 2016–2020 Total Thereof Total Thereof Σ € 330M Investment Expensed Investment Expensed Operational € 70M € 60M - - 21% Excellence Digitisation € 75M € 65M - - 56%
Slide 16: Systematic harmonisation of UNIQA's TOM
Systematic harmonisation of UNIQA’s TOM Schematic TOM target picture Products Processes IT System Leveraging Group synergies Group across products, processes and IT Target Operating Model (TOM) As-Is Products Processes IT System initiative in line with and enabled by OE1 new Group Structure & Pr
Slide 17: Shared core platform reduces IT complexity
Shared core platform reduces IT complexity Shared platform simplifies key elements of the core business value chain Cust. Other Product Sales Service Claims Finance Services State-of-the-art Collection/Disbursement Marketing/Sales Mgmt. Development/Actuarial Life core system Policy Administratio
Slide 18: UNIQA strives to become one of the leading digital insurers in Austria and CEE
UNIQA strives to become one of the leading digital insurers in Austria and CEE Our digital path1 Digital Digital Customer Insurer Foster UNIQA’s innovation culture Sequentially build up capabilities to increase Sales Digitise customer digitise experience ‒ Customer experience ‒ Operations ! En
Slide 19: UNIQA will be able to ensure attractive financial results
UNIQA will be able to ensure attractive financial results Key initiatives 2016–2020 Operating KPIs Targeted financial results GWP 2% p.a. 13.5% Digital Transformation <21% operating ROE1 Operational Excellence Group Structure & Life average in 2017–2020 TOM & IT Core NCR2 in 2020 Governance P&C Heal
Slide 20: Shareholder structure
Shareholder structure Current shareholder structure Free float geographic distribution Collegialität Treasury Versicherungsv shares erein 0.3% Rest of World Privatstiftung 17.7% 2.3% Austria 29.3% UNIQA Free Float Versicherungsv 35.4% erein Privatstiftung 30.6% United States Poland 28.3% 6.1% UK & I
Slide 21: Capital & Risk Management
UNIQA Group Highlights Capital & Risk Management 6M16 Results Life P&C Appendix Health Embedded Value Additional Information UNIQA Investor Relations 21
Slide 22: Group Capital Requirements
Group Capital Requirements Economic and Regulatory SII Capital Ratio Economic capital position Measures used ECR-ratio 182% 166% ECR SCR 5,205 Internal Model Yes, P&C business No 5,016 In EUR m Sovereign Risk charge Yes (full loading) No 2,857 3,013 Volatility Adjustments Yes (static) Yes (static) T
Slide 23: Group ECR Results
Group ECR Results Details on Economic Capital Ratio +66% ECR development by Risk Module 5,016 Increase of ECR by EUR 156 m 166 252 1,044 Tier 2 17% ECR increase mainly driven by 517 Tier 1 restr. Life underwriting module (lapse risk) 5% 669 3,397 568 which allows for volatility in customer 184 3
Slide 24: Group ECR Results: Sensitivities
Group ECR Results Sensitivities Estimated sensitivity of ECR quota Impact on change to ECR quota 2015 2014 Base Value 182% Interest rates +100 bps 199% +17%-p +20%-p Interest rates -100 bps 171% -12%-p -16%-p Equity -30% 181% -1%-p -5%-p FX +10% 187% +5%-p +3%-p FX -10% 178% -4%-p -3%-p Credit sprea
Slide 25: UNIQA follows a clear steering approach
UNIQA follows a clear steering approach Solvency steering rules Consider returning capital Opportunity to shareholders Solid capital base as 190% Max. prerequisite in current market – ECR target set Target at 170% 170% Clearly defined risk 155% Caution ambition and shareholder Consider/apply mea
Slide 26: UNIQA has reduced its interest rate risk since 2011
UNIQA has reduced its interest rate risk since 2011 Development of duration Development of interest rate risk (ECR) In years Fixed Interest rate related capital Risk ranking income ratio requirement in €M As a % of Absolute undiversified 4.0 ECR market risk 2011 71% 2.9 2011 1,429 1. 30% 5.4 72% 201
Slide 27: UNIQA's asset and risk distribution
UNIQA’s asset and risk distribution Market risk Asset allocation 2015 (IFRS figures) Interest Rate Risk 11% 13% 1.5% 3.3% 10% 10% 6.7% Equity Risk 15% 15% Property Risk 7.5% Spread Risk 44% Equities & Alt. 45% Concentration Risk Participations Currency Risk 9% 9% Real Estate 10% 9% 81.0% Cash 2015 2
Slide 28: Solid growth in Group free surplus generation
Solid growth in Group free surplus generation Life and health free surplus generation Surplus in €M Strategic measures support 191 stable and growing free 200 surplus generation 93 100 Less capital intensive new 23 13 business in life and health 0 (reduction of guarantees) 2012 2013 2014 2015
Slide 29: 6M16 Results
UNIQA Group Highlights Capital & Risk Management 6M16 Results Life P&C Appendix Health Embedded Value Additional Information UNIQA Investor Relations 29
Slide 30: Net investment result below run rate in 6M16
Net investment result below run rate in 6M16 Reconciliation IFRS net investment income, EURm 405 5 38 27 13 302 30 6M15 Ordinary Real estate Positive FX Negative FX Other 6M16 Income effects 1H15 effects 1H16 - In 6M15 gains on sale of real estate and FX gains (mainly stronger USD) drove net investm
Slide 31: ROE currently not on satisfying level
ROE currently not on satisfying level Earnings per share (EUR) Economic Capital Ratio 0.71 182% 161% 150% 0.51 108% 0.40 0.40 0.29 0.24 N/A 6M11 6M12 6M13 6M14 6M15 6M16 FY11 FY12 FY13 FY14 FY15 Return on Equity Book value per share (EUR) 13.1% 10.23 10.60 10.00 12.0% 9.41 8.98 10.6% 8.6% 6.16 5.3%
Slide 32: Snapshot 6M16
Snapshot 6M16 Significant reduction of single EURm 6M15 6M16 % premium business in Austria and Italy as planned Gross premiums written(a) 3,552.2 3,277.7 -7.7% Premiums earned (retained) 3,081.1 2,841.4 -7.8% Reduced harvesting and negative FX valuation effects in 6M16 vs Net investment income 405.
Slide 33: GWP decreased 7.7% y-o-y
GWP decreased 7.7% y-o-y Gross written premium(a) per business line EURm -7.7% 3,552 4.3% 6,325 3,278 6,064 3.1% 5,886 859 5,543 1,194 1,719 547 687 961 536 1,559 1,513 234 1,459 1,314 313 761 752 1,670 1,522 1,492 282 205 1,552 131 394 365 394 358 505 523 938 961 998 337 909 269 245 244 249 254 2,5
Slide 34: Cost ratio increased due to reduced single premium business and first investments
Cost ratio increased due to reduced single premium business and first investments Cost ratio (net) (%), Costs (EURm) 0.0% -1.9% 1,387 350 -0,1% 1,353 342 343 1,299 1,299 685 685 313 300 433 472 105 98 387 373 111 195 209 95 83 226 59 60 247 235 239 62 119 122 44 63 25.7% 23.3% 23.5% 22.9% 22.2% 24.6
Slide 35: P&C: COR improved to 96.9%
P&C: COR improved to 96.9% Combined ratio (net) (%) -0.3 pp 2.6 pp 101.5% 99.9% 99.6% 97.1% 96.9% 97.8% 99.7% 98.0% 95.4% 97.3% 95.8% 33.0% 33.0% 30.2% 30.0% 29.3% 31.4% 31.8% 28.0% 32.9% 32.4% 30.6% 68.4% 66.9% 69.4% 67.8% 70.4% 69.3% 65.8% 65.1% 63.1% 65.1% 65.1% 2012 2013 2014 2015 2Q15 3Q15 4Q15
Slide 36: P&C: Increased underwriting profitability nearly compensating lower investment result
P&C: Increased underwriting profitability nearly compensating lower investment result Net premiums earned EURm Investment result EURm Earnings before taxes EURm 1.6% 44.8% 634 37 632 633 -48.3% 32 31 22 29 27 27 14 624 15 616 -4 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2
Slide 37: Health: One-off accounting effect drove benefits in 2Q16
Health: One-off accounting effect drove benefits in 2Q16 Cost – benefit ratio (%) Investment result EURm Earnings before taxes EURm -2.2% 65 105.0% 102% 104% 97% 50 95% 96% 17% 19% 17% 14% 19% 23 34 40 28 23 83% 88% 81% 81% 77% 17 6 3 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15
Slide 38: Life: Technical reserves stable
Life: Technical reserves stable Reserve (net) EURbn Investment result EURm Earnings before taxes EURm -40.1% -12.2% 74 157 19.9 19.8 19.8 19.8 20.0 136 91 126 120 28 83 46 87 62 27 40 17 7 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 2Q15 3Q15 4Q15 1Q16 2Q16 Margin on Reserves (a) Reserves st
Slide 39: Investment activity
Investment activity Investment income EUR Current income of EUR 290.9m nearly completely 287 covering investment income of EUR 301.5m in 6M16 232 231 230 237 213 200204218 190 214 213 175 170 159 158 168 176 126 Realized and unrealized profits and losses of EUR 103 80 10.5m in 6M16; Thereof nega
Slide 40: Outlook
Outlook UNIQA expects that the moderate growth of economic activities in the European Union will continue in 2016. For CEE a slightly higher growth is anticipated based on well-founded economic fundamentals. Business outlook Premiums are expected to decline: Life: Single premium business will co
Slide 41: Segment overview 1/2
Segment overview 1/2 UNIQA Austria UNIQA International Reinsurance in EUR m 6M16 6M15 6M16 6M15 6M16 6M15 Gross premiums written (a) 1,924.8 2,176.4 1,332.8 1,349.5 612.5 608.9 Net premiums earned (a) 1,482.1 1,740.2 1,035.4 1,067.0 517.3 521.2 Gross premiums written 1,802.1 2,042.5 1,249.3 1,231.3
Slide 42: Segment overview 2/2
Segment overview 2/2 Group Function Consolidation Group in EUR m 6M16 6M15 6M16 6M15 6M16 6M15 Gross premiums written (a) 1,924.8 2,176.4 1,332.8 1,349.5 612.5 608.9 Net premiums earned (a) 1,482.1 1,740.2 1,035.4 1,067.0 517.3 521.2 Gross premiums written 0.0 0.0 -592.4 -582.5 3,071.6 3,300.2 Net p
Slide 43: P&C business
P&C business UNIQA Austria UNIQA International UNIQA Group In EURm 6M16 6M15 6M16 6M15 6M16 6M15 Premiums written (gross) 862.7 847.9 576.5 558.3 1,454.5 1,427.0 Premiums earned (net) 457.5 444.9 299.3 296.3 1,265.3 1,249.3 Technical interest income 0.0 0.0 0.0 0.0 0.0 0.0 Other insurance income 1.4
Slide 44: Health business
Health business UNIQA Austria UNIQA International Group In EURm 6M16 6M15 6M16 6M15 6M16 6M15 Gross premiums written (a) 480.4 463.8 43.0 41.6 523.3 505.4 Net premiums earned (a) 473.3 457.7 38.8 37.4 512.4 495.2 Gross premiums written 480.4 463.8 43.0 41.6 523.3 505.4 Net premiums earned (net) 473.
Slide 45: Life business
Life business UNIQA Austria UNIQA International Group In EURm 6M16 6M15 6M16 6M15 6M16 6M15 Gross premiums written (a) 581.7 864.7 713.3 749.6 1,299.9 1,619.8 Net premiums earned (a) 551.3 837.6 697.3 733.4 1,259.3 1,581.1 Gross premiums written 459.0 730.8 629.8 631.4 1,093.8 1,367.8 Net premiums e
Slide 46: Regional Split - Life
Regional Split - Life Net Premiums Earned Technical result Earnings before taxes In EURm 6M16 Δ p.y. 6M16 Δ p.y. 6M16 Δ p.y. UNIQA Group 1,259.3 -20.3% 3.4 -28.7% 34.8 -41.8% UNIQA Austria 551.3 -34.2% -1.3 -109.5% 36.5 -3.8% UNIQA International 697.3 -4.9% 11.8 74.2% 20.4 14.7% CE 88.3 -9.6% 5.1 19
Slide 47: Regional Split - P&C
Regional Split - P&C Net Premiums Earned Technical result Earnings before taxes In EURm 6M16 Δ p.y. 6M16 Δ p.y. 6M16 Δ p.y. UNIQA Group 1,265.3 1.3% 30.6 43.5% 45.3 -24.1% UNIQA Austria 457.5 2.8% 27.7 52.8% 70.9 56.4% UNIQA International 299.3 1.0% -3.7 151.7% 13.8 -21.8% CE 158.2 -2.1% -2.0 -2179.
Slide 48: Regional Split - Health
Regional Split - Health Net Premiums Earned Technical result Earnings before taxes In EURm 6M16 Δ p.y. 6M16 Δ p.y. 6M16 Δ p.y. UNIQA Group 512.4 3.5% 23.7 -42.8% 26.2 -63.3% UNIQA Austria 473.3 3.4% 25.3 -37.6% 39.7 -56.4% UNIQA International 38.8 3.7% -2.0 -56.3% -1.4 -14.4% CE 6.3 -4.9% 1.3 -3.4%
Slide 49: Group Balance Sheet
Group Balance Sheet Assets Liabilities EURm June16 Dec15 EURm June16 Dec15 A. Total equity 3,292.5 3,174.8 3.7% A. Tangible assets 342.1 307.7 11.2% B. Land and buildings held as financial I. Shareholder equity 3,267.3 3,152.7 3.6% investments 1,324.5 1,392.6 -4.9% C. Intangible assets 1,475.0 1,472
Slide 50: Shareholders' equity (excluding minority interest)
Shareholders‘ equity (excluding minority interest) EURm 3.267 145 12 181 90 3.153 Dec 15 Valuation of financial Dividend payment Profit attributable Other June15 instruments AFS to shareholders Shareholders’ equity increased ytd: Revaluation reserves increased mainly due to lower interest rates yt
Slide 51: Group Income Statement
Group Income Statement EURm 1Q15 2Q15 3Q15 4Q15 2Q16 6M15 6M16 Δ yoy Gross premiums written(a) 1,512.8 1,313.9 1,459.0 1,718.7 1,559.0 3,552.2 3,277.7 -7.7% Reinsurers' share -52.4 -42.4 -56.3 -66.9 -48.6 -121.0 -115.5 -4.6% Change due to premiums earned 41.3 62.6 40.6 -160.8 35.7 -105.7 -125.1 18.4
Slide 52: Fixed income portfolio
Fixed income portfolio Overall composition Rating distribution 33% Dec 15 19.8 EURbn Governent Bonds EU 25% 3% 11% 21% 21% 21% Government Bonds Non-EU 20% 18% 18% 14% 48% 10% Financials 8% Covered Bonds 2% 3% 13% Other AAA AA A BBB <BBB Not rated 11% June 16 Dec 15 Corporates By segment June 16 20.2
Slide 53: Fixed income portfolio: Government and government related
Fixed income portfolio Government and government related Overall composition 12.20 EURbn Rating distribution Austria 6% 13% Italy 43.0% Europe 25% Belgium 14% France Poland 8% Ireland 4% Supranational Organisations 9% Slovakia 4% 6% 8% Rest of Europe 4% By segment Rest of World 22.4% 16.3% 14% 11.0%
Slide 54: Fixed income portfolio: Corporates including financials
Fixed income portfolio Corporates including financials Overall composition 4.5 EURbn Rating distribution 7% Austria 21% United States of America 34.1% 14% Germany France 30.6% 4% 1% United Kingdom 5% 19% Italy World 9% Netherlands 9% 11% Rest of Europe By segment Rest of World 15.1% 11.7% 20% 27% 6.
Slide 55: Fixed income portfolio: Corporate thereof financials
Fixed income portfolio Corporate thereof financials Overall composition 2.5 EURbn Rating distribution 5% Austria 4% 9% United States of America 34.6% 33% Germany 6% France 8% United Kingdom Netherlands 11% Italy 23.7% 17% 22.1% 7% Rest of Europe Rest of World By segment 12.8% 19% 4.0% P&C 2.8% 12% H
Slide 56: Fixed income portfolio: Covered bonds
Fixed income portfolio Covered bonds Overall composition 3.1 EURbn Rating distribution 5% France 18% Austria 69.4% 14% Germany United Kingdom 4% Australia 5% 14% Netherlands 5% Spain 9% Belgium 8% Italy 9% 7% Rest of Europe By segment Rest of World 25.2% 18% P&C 4.1% 20% Health 1.3% 0.0% 0.0% 63% Li
Slide 57: FX rates
FX rates Foreign currency 6M15 6M16 Dec14 Dec 15 Czech koruna CZK 27.253 27.131 27.735 27.023 Swiss franc CHF 1.041 1.087 1.202 1.084 Hungarian forint HUF 314.930 317.060 315.540 315.980 Croatian kuna HRK 7.595 7.528 7.658 7.638 Polish zloty PLN 4.191 4.436 4.273 4.264 Romanian Leu RON 4.473 4.523 4
Slide 58: Life
UNIQA Group Highlights Capital & Risk Management 6M16 Results Life P&C Appendix Health Embedded Value Additional Information UNIQA Investor Relations 58
Slide 59: Major share of UNIQA's life business in Austria
Major share of UNIQA’s life business in Austria Technical reserves1 New business FY15 in €M FY15 in APE Essential share of UNIQA’s life portfolio in Austria (~75% of technical reserves in UAT and UAT 6,057 UAT 34 RV) Currently, still focus on traditional products (~70% of RV 8,023 RV 90 all tech
Slide 60: Re-insurance: Increased focus on expense and risk result
Increased focus on expense and risk result UNIQA profit sources1 FY15 in €M Solid mortality result Investment result clearly covers guarantees and allows for small profit participation Further expense result improvement through Group-wide cost programme expected Contribution margin as residu
Slide 61: New business margin improved in 2015
New business margin improved in 2015 New business margin PVNBP Ratio in % 5.0 New business margin 2.2 2.3 increased to 1.9% (2014: 1.7 0.6%) in Italian life business 0.0 due to new product generation 2013 2014 2015 offering reduced guarantees New business value (life & health) Continuation of hi
Slide 62: Guarantees in portfolio will decrease significantly
Guarantees in portfolio will decrease significantly Austria: Actuarial reserve fund by guarantees Development until 2020 Reserve fund in €BN (FC2/2015) Av. guarantee in % Reduction of actuarial 12 2.6 reserve funds from Average guarantee € 10.9BN to € 8.6BN mainly due to 8 2.4 ‒ Stop of prolongati
Slide 63: Why life insurance in Austria is different
Why life insurance in Austria is different Austria Germany General Various similarities between Austrian and German traditional life business remarks Key differences due to new regulations or overall market development Average Market average: 2.85% Market average: 3.10% guarantee New busin
Slide 64: Key components of Austrian profit sharing system
Key components of Austrian profit sharing system Simplified illustration Profit sharing overview Premiums Within the “gross surplus” different profit sources are Savings Risk Expenses accumulated + Investment Profit sharing above 85% can Expense income Risk result be accounted for in upcoming re
Slide 65: UNIQA's new life strategy is based on three pillars
UNIQA’s new life strategy is based on three pillars Life 2016–2020 Strategic Ambition: “Reduce capital requirements and increase profitability” Management rules Inforce business New business Product management Inforce handling/manage- Tactical product Profitability steering: ment and expense
Slide 66: New traditional product reduces capital intensity
New traditional product reduces capital intensity Our new traditional product Product details Modular product incl. biometric options Higher flexibility for customers (e.g. surrender values) Customer Clear and transparent in the interest of Benefit consumer protection Based on a traditional
Slide 67: UNIQA's life insurance objectives 2020
UNIQA’s life insurance objectives 2020 Targets 2020 Life 2016–2020 “Reduce capital requirements € 2.6BN and increase profitability” GWP Management Inforce New € 30M–35M p.a. rules business business new business value 50–70 bps margin on reserves1 16% NCR UNIQA Investor Relations 1: Definition of mar
Slide 68: P&C
UNIQA Group Highlights Capital & Risk Management 6M16 Results Life P&C Appendix Health Embedded Value Additional Information UNIQA Investor Relations 68
Slide 69: UNIQA's P&C business is well-diversified
UNIQA’s P&C business is well-diversified Business mix GWP FY15 in €M P&C insurance key business line with € 2.6BN turnover Low interest rate environment UAT 1,381 increases pressure on P&C profitability RV AT 160 Profitability has improved by 5pp since 2011 due to various measures – still ongo
Slide 70: UNIQA's P&C strategy is based on six measures
UNIQA’s P&C strategy is based on six measures P&C 2016–2020 Strategic Ambition: “Further increase P&C profitability and ensure differentiated growth” Portfolio Claims Anti- Pricing Product Corporate management management fraud retail/SME innovation business Portfolio Insourcing Group-wide Ho
Slide 71: UNIQA's P&C insurance objectives 2020
UNIQA’s P&C insurance objectives 2020 Targets 2020 P&C 2016–2020 6–7% “Further increase P&C profitability 4% GWP growth and ensure differentiated growth” p.a. GWP in CEE growth in 2016– 20201 ~2% Portfolio Claims Anti management management fraud GWP growth in Austria <95% COR Pricing Product Corpora
Slide 72: Health
UNIQA Group Highlights Capital & Risk Management 6M16 Results Life P&C Appendix Health Embedded Value Additional Information UNIQA Investor Relations 72
Slide 73: UNIQA Austria drives the Group's health business
UNIQA Austria drives the Group’s health business Business mix GWP FY15 in €M In-patient insurance UNIQA’s main profit source Stable growth at 2–3% UAT 636 144 142 922 in Austria CEE business starting to evolve – opportunistically and adapted to local market UI (CEE) 331 development Main volu
Slide 74: Profitable growth demonstrated over the last decade
Profitable growth demonstrated over the last decade Profitable growth (Group figures) GWP in €M CAGR +2.8% Long-term profitability 998 supported by Austrian 1,000 832 820 1 846 878 909 938 961 717 742 765 781 799 market specifics: 500 Ability to adjust 2003 2005 2007 2009 2011 2013 2015 premiums b
Slide 75: UNIQA dominates the Austrian health market
UNIQA dominates the Austrian health market Growth of UNIQA’s health business Today 1993 ~47.2% 1960 market share 1922 in Austria AQUISITION Main contributors 1811 to current portfolio MERGER 1860 1899 1991 Solid market leader position achieved – major changes unlikely UNIQA Investor Relations 75
Slide 76: UNIQA's market dominance rests on four pillars
UNIQA’s market dominance rests on four pillars Health 2016–2020 “Remain market leader in profitable health business” Strategic Ambition: “Sustainable cash flow generation” Brand Sales Value proposition Health value chain integration Strong brand, Large tied agent High quality offer UNIQA
Slide 77: Success story to continue for many years to come
Success story to continue for many years to come Age structure of our portfolio in UNIQA Austria # clients in cluster in thousand Portfolio with high number of insured 0-10 95 clients under 45 of 11-20 102 age (~540K) 21% 22% Long-term 21-30 117 perspective for 31-40 141 profitable health 41-50
Slide 78: UNIQA's health insurance objectives 2020
UNIQA’s health insurance objectives 2020 Targets 2020 Health 2016–2020 “Remain market leader in profitable health business” 2.5–3% p.a. GWP growth 2016–2020 “Sustainable cash flow generation” Brand Sales € 25M–30M new business value 350–450 bps Value proposition Health value chain margin on rese
Slide 79: Embedded Value
UNIQA Group Highlights Capital & Risk Management 6M16 Results Life P&C Appendix Health Embedded Value Additional Information UNIQA Investor Relations 79
Slide 80: Group Embedded Value: Results
Group Embedded Value Results GEV changed by Group Embedded Value Life & Health Property & Casualty Total Change over +13.2% to in EUR m 2015 2014 2015 2014 2015 2014 period EUR 4,725m Free surplus 494 482 Value increase driven by both adjusted net asset value and value of in-force Required capit
Slide 81: Group Embedded Value: Results split by regions
Group Embedded Value Results split by regions Positive MCEV Embedded Value by region 2015 2014 development in EUR m Austria Italy CEE Total Austria Italy CEE Total across all regions, overall value still Free surplus 387 52 55 494 422 43 17 482 dominated by Austria Required capital 834 74 22 931 4
Slide 82: Group Embedded Value: Life & health sensitivities
Group Embedded Value Life & health sensitivities in EUR m Change in Embedded Value Change in New Business Value 2015 2014 2015 2014 Base value 3,272 100% 2,593 100% 73 100% 53 100% EV change by economic factors Decreased interest rate Risk free yield curve -100bp -316 -10% -508 -20% -7 -9% -42 -78
Slide 83: Group Embedded Value: Life & health analysis of change
Group Embedded Value Life & health analysis of change 417 3,272 Restatement and opening adjustments include Capital and dividend 66 flows (EUR -194m) 315 103 Rollforward Foreign exchange 2,593 192 variance (EUR 2m) 73 2,401 Ongoing positive development 212 Assumptions of operating earnings r
Slide 84: Group Embedded Value: Implied Discount Rate / IRR / Free Surplus Generation
Group Embedded Value Implied Discount Rate / Internal Rate of Return / Free Surplus Generation Implied Discount Rate 2015 Internal Rate of Return 2015 in %, based on in-force business in %, based on new business Implied discount rate on 20.8% comparable level to 2014 12.9% IRR overall decreases
Slide 85: Additional Information
UNIQA Group Highlights Capital & Risk Management 6M16 Results Life P&C Appendix Health Embedded Value Additional Information UNIQA Investor Relations 85
Slide 86: 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 133% 0% 41% 38% 45% 44% ISIN: AT0000821103 Bloomberg: UQA AV 0,47 0,42 Reuters: UNIQ.VI 0,40 Vienna Stock Excha
Slide 87: 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, th
UNIQA Insurance Group — Investor Presentation (September 2016) on 6ix