UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — 6M19 Earnings Presentation
37 slides from UNIQA Insurance's earnings presentation, Aug 28, 2019
Slide 1: UNIQA Insurance Group AG 6M19 Results
UNIQA Insurance Group AG 6M19 Results Solid earnings before taxes at EUR 136m in 6M19 28 August 2019 Andreas Brandstetter, CEO Kurt Svoboda, CFO/CRO, CEO UNIQA Austria
Slide 2: 6M19 Highlights, Group Strategy & Results
6M19 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 6M19
Executive Summary 6M19 ▪ Gross written premiums(a) slightly increased (0.6%) compared to 6M18 ▪ Net combined ratio rose to 97.3% (97.1% in 6M18) ▪ Net cost ratio at 27.0% (25.3% in 6M18) ▪ Net investment result at EUR 301.0m (EUR 288.7m in 6M18) ▪ Earnings before taxes at EUR 135.9m (EUR 145.0m in 6
Slide 4: Snapshot 6M19
Snapshot 6M19 EURm 6M18 6M19 % Reduction in Life business; Gross premiums written(a) 2.798.4 2.814.9 0.6% Continued growth in P&C and Health Premiums earned (retained) 2.385.5 2.425.1 1.7% Net investment income 288.7 301.0 4.2% Tailwinds from capital markets and gains from sale of real-estate; Insu
Slide 5: Key Financial Indicators
Key Financial Indicators Earnings per share (EUR) Regulatory and Economic Capital Position (%) 0.51 SCR ECR 250% 248% 215% 210% 205% 0.37 194% 202% 0.34 182% 153% 150% 0.22 0.24 6M15 6M16 6M17 6M18 6M19 FY14 FY15 FY16 FY17 FY18 Operating Return on Equity (%) Book value per share (EUR) 10.51 17.2% 10
Slide 6: 6M19 Group Strategy & Results
6M19 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 in P&C and Health business; Ongoing reduction in Life business
Continued growth in P&C and Health business; Ongoing reduction in Life business Gross written premium(a) per business line EURm 0.3% 1.7% 0.6% 5.211 5.293 5.309 1.530 5.048 113 25 2.798 2.815 254 441 169 60 55 1.263 1.267 335 1.285 1.336 1.244 1.358 31 25 28 30 683 657 1.367 1.357 326 311 342 322 28
Slide 8: Cost Ratio increased to 27.0% driven by higher CAPEX and DAC amortization in Life
Cost Ratio increased to 27.0% driven by higher CAPEX and DAC amortization in Life business Cost ratio (net) (%), Costs (EURm) 3.0% 8.5% 1.286 1.315 363 8.4% 1.276 347 350 1.190 697 323 309 643 417 420 463 346 139 120 127 110 248 103 220 212 228 210 220 62 52 58 58 47 111 28.3% 26.8% 27.3% 111 26.6%
Slide 9: P&C: COR slightly higher at 97.3%
P&C: COR slightly higher at 97.3% Combined ratio (net) (%) 1.7 pp 97.9% 98.1% 96.7% 97.2% 98.3% 0.3 pp 97.5% 96.8% 95.8% 96.3% 97.1% 97.3% 30.4% 32.4% 31.6% 31.4% 30.6% 30.2% 33.5% 31.6% 33.0% 30.9% 32.3% 67.5% 65.7% 65.9% 65.4% 66.1% 65.6% 63.7% 64.7% 65.4% 66.2% 65.0% 2015 2016 2017 2018 2Q18 3Q18
Slide 10: P&C: Premiums earned increased due to balanced growth in AT and CEE
P&C: Premiums earned increased due to balanced growth in AT and CEE Net premiums earned EURm Investment result EURm Earnings before taxes EURm 63.8% -25.3% 34 3.1% 36 31 666 32 658 29 17 658 23 22 645 639 10 1 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 ▪ On net earned
Slide 11: Health: Long term growth continued
Health: Long term growth continued Cost – benefit ratio (%) Investment result EURm Earnings before taxes EURm 68.3% 104% 83.3% 103% 103% 51 99% 97% 42 41 17% 19% 16% 14% 20% 29 30 30 28 22 86% 85% 84% 88% 77% 8 2 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 Benefit Rati
Slide 12: Life: Stable earnings contribution despite low interest rate environment in 2Q19
Life: Stable earnings contribution despite low interest rate environment in 2Q19 Reserve (net) EURbn Investment result EURm Earnings before taxes EURm 17.1% 16.000 113 15.762 15.522 15.498 15.483 24.2% 97 99 98 42 35 54 51 29 42 61 32 16 6 4 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q18 4Q18 1Q19 2Q19 2Q18 3Q1
Slide 13: Investment Activity
Investment Activity Investment income EUR 281 ▪ Net investment result of EUR 301m in 6M19 (EUR 209 218 289m in 6M18) 191 190182 200 179 167170 158160 142 145 143145158 134 135 ▪ Current income of EUR 251m in 6M19 (EUR 244m in 108 101 6M18) 76 ▪ Contribution from participation in STRABAG: EUR 6.6min
Slide 14: 6M19 Group Strategy & Results
6M19 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 FY19
Outlook FY19 ▪ UNIQA expects slightly growing GWP in FY19: ▪ P&C growth of roughly 2% driven by Austria and CEE ▪ Health growth on long term trend of approximately 3% ▪ Life: GWP decrease to continue mainly due to muted demand in Austria ▪ Combined Ratio will improve compared to FY18 (96.8%) ▪ Net i
Slide 16: Operating Segments
6M19 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 6M18 6M19 Δ yoy Gross premiums written(a) 1.970.1 1.992.9 1.2% ▪ Gross premiums written increased 1.2% ytd; Decline in life business (-4.4%) overcompensated by growth in non-life (motor & Reinsurers' share -385.2 -399.5 3.7% property/retail) business and health business
Slide 18: UNIQA Austria Segments
UNIQA Austria Segments P&C Health Life EURm 6M18 6M19 Δ yoy 6M18 6M19 Δ yoy 6M18 6M19 Δ yoy Gross premiums written(a) 931.7 966.1 3.7% 506.7 518.6 2.4% 531.7 508.2 -4.4% Reinsurers' share -363.5 -385.5 6.1% -0.1 -0.1 -7.8% -21.6 -13.9 -35.5% Change due to premiums earned -69.6 -67.1 -3.6% -6.5 -6.6
Slide 19: UNIQA International
UNIQA International Financial Highlights EURm 6M18 6M19 Δ yoy Gross premiums written(a) 814.2 808.0 -0.8% ▪ Gross Written Premiums decreased 0.8% influenced by reduced Fronting business in Liechtenstein (net earned premiums + 3.3%); Reinsurers' share -271.6 -246.3 -9.3% Life business decrease due to
Slide 20: UNIQA International Segments
UNIQA International Segments P&C Health Life EURm 6M18 6M19 Δ yoy 6M18 6M19 Δ yoy 6M18 6M19 Δ yoy Gross premiums written 563.8 555.6 -1.5% 42.7 49.5 16.0% 207.7 202.9 -2.3% Reinsurers' share -260.2 -237.8 -8.6% -6.3 -4.2 -32.7% -5.1 -4.2 -17.4% Change due to premiums earned -21.3 -22.3 4.7% -4.4 -6.
Slide 21: 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 6M19 % to PY 6M19 % to PY 6M19 % to PY 6M19 % to PY FX adjusted (b) Western Europe (WE) 6.1 -75% 10.4 -10% 0.0 16.5 -54% -54% Western Europe (WE) 6.1 -75% 10.4 -10% 0.0 16.5 -54% -54% Czech Republi
Slide 22: 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 6M19 6M18 6M19 6M18 6M19 6M18 6M19 6M18 6M19 6M18 (b) Western Europe (WE) 7.8 8.4 0.1 0.2 312.0% 99.9% 34.4% 13.1% -1.6 -0.5 Western Europe (WE) 7.8 8.4 0.1 0
Slide 23: Group Balance Sheet
Group Balance Sheet Liabilities Assets EURm Jun 19 Dec 18 EURm Jun 19 Dec 18 A. Total equity 3.239.6 2.986.6 8.5% A. Tangible assets 358.9 311.1 15.4% B. Land and buildings held as financial I. Shareholder equity 3.224.8 2.972.1 8.5% investments 1.098.0 1.104.1 -0.6% C. Intangible assets 1.649.0 1.6
Slide 24: Shareholders' equity (excluding minority interest)
Shareholders‘ equity (excluding minority interest) EURm 32 3.225 163 106 342 2.972 Valuation of financial Dividend Profit attributable March 19 June 19 Dec 18 instruments AFS to shareholders Shareholders’ equity increased in 6M19: ▪ Increase of revaluation reserves due to positive market movements i
Slide 25: Group Income Statement
Group Income Statement EURm 2Q18 3Q18 4Q18 1Q19 2Q19 6M18 6M19 Δ yoy Gross premiums written(a) 1.263,0 1.243,9 1.267,2 1.530,0 1.285,0 2.798,4 2.814,9 0,6% Reinsurers' share -41,9 -40,7 -45,7 -58,5 -38,9 -105,2 -97,5 -7,3% Change due to premiums earned 36,4 54,2 62,7 -176,7 37,3 -153,2 -139,4 -9,0%
Slide 26: Group Operating Segments
Group Operating Segments P&C Health Life EURm 6M18 6M19 Δ yoy 6M18 6M19 Δ yoy 6M18 6M19 Δ yoy Gross premiums written(a) 1.506.2 1.535.0 1.9% 549.4 568.1 3.4% 742.9 711.8 -4.2% Reinsurers' share -82.8 -83.0 0.3% -1.6 -1.7 7.1% -20.8 -12.7 -38.8% Change due to premiums earned -142.4 -127.5 -10.5% -10.
Slide 27: Other Segments
Other Segments Consolidation Reinsurance Group Functions EURm 6M18 6M19 Δ yoy 6M18 6M19 Δ yoy 6M18 6M19 Δ yoy Gross premiums written -600.8 -602.7 0.3% 615.0 616.8 0.3% 0.0 0.0 N/A Reinsurers' share 605.4 602.8 -0.4% -53.8 -54.5 1.2% 0.0 0.0 N/A Change due to premiums earned -0.4 3.1 N/A -51.2 -41.3
Slide 28: Asset Management
6M19 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 28
Slide 29: Fixed income portfolio
Fixed income portfolio Overall composition Rating distribution Dec18 EUR 16.2bn Governent Bonds EU 8% 2% 23% 24% 25% 25% 25% 23% Covered Bonds 19% 14% 16% 45% Corporates 6% 7% 4% 4% 14% Government Bonds Non-EU Financials AAA AA A BBB <BBB Not rated 17% June 19 Dec 18 Other By segment March 19 EUR 16
Slide 30: Fixed income portfolio Government and government related
Fixed income portfolio Government and government related Overall composition EUR 9.8bn Rating distribution 2% Rest of Europe 4% 4% Austria 30.7% 3% Rest of World 6% 35% Poland Belgium 26.3% 7% France 7% Europa Slovakia 8% 11% Ireland 18.6% 18.3% 12% Supranational Organisations By segment Italy 21% 5
Slide 31: Fixed income portfolio Corporates including financials
Fixed income portfolio Corporates including financials Overall composition EUR 4.0bn Rating distribution 4% 2% United States of America 0% 5% Rest of Europe 21% 38.2% 7% Austria France Germany 32.6% 16% 16% United Kingdom Rest of World Europa 14% 13% Netherlands By segment Italy 13.2% 20% 10.4% 32%
Slide 32: Fixed income portfolio Corporate thereof financials
Fixed income portfolio Corporate thereof financials Overall composition EUR 1.4bn Rating distribution 46.9% 6% United States of America 4% Austria 6% 29% Germany 5% Rest of World 10% France Netherlands 5% 19% United Kingdom 16% Switzerland Rest of Europe By segment 20.0% 13.9% 9.6% 37% 5.9% 40% P&C
Slide 33: Fixed income portfolio Covered bonds
Fixed income portfolio Covered bonds Overall composition EUR 2.8bn Rating distribution 1% Rest of Eurpoe 3%4% 20% Austria 7% 67.6% France 4% Germany 7% United Kingdom 16% Australia 9% Netherlands Spain 11% Rest of World 18% Belgium By segment Norway 24.1% 15% 14% P&C 4.7% 3.0% Health 0.0% 0.6% Life
Slide 34: Shareholder Information
6M19 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 34
Slide 35: Shareholder structure
Shareholder structure Current shareholder structure Free float geographic distribution 0.7% 2.5% 1.0% 10.9% 15.1% 28.7% 49.0% 26.8% 36.9% 28.3% UNIQA Versicherungsverein Privatstiftung Free Float Continental Europe Raiffeisen Bank International Austria North America Collegialität Versicherungsverein
Slide 36: 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 41% 38% 45% 44% 102% 91% 67% ISIN: AT0000821103 ▪ Bloomberg: UQA AV 0.53 0.51 ▪ Reuters: UNIQ.VI 0.49 0.47 ▪ Vienna S
Slide 37: 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