UNIQA Insurance Group AG · VIE:UQA

UNIQA Insurance — 9M 2017 Earnings Presentation

46 slides from UNIQA Insurance's earnings presentation, Nov 16, 2017

  1. Slide 1: UNIQA Insurance Group AG 9M17 Results

    UNIQA Insurance Group AG 9M17 Results Increased earnings before tax despite lower investment result driven by improved underwriting result 16 November 2017 Andreas Brandstetter, CEO Kurt Svoboda, CFO/CRO

  2. Slide 2: 9M17 Highlights

    9M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 2

  3. Slide 3: Executive Summary 9M17

    Executive Summary 9M17  Gross written premiums(a) increased 6.1% driven by all lines of business  Net combined ratio improved to 97.1% (98.3% in 9M16)  Net cost ratio at 24.5% (26.0% in 9M16)  Net investment result decreased to EUR 393.6m (EUR 419.4m in 9M16)  Earnings before taxes improved to

  4. Slide 4: Key Financial Indicators

    Key Financial Indicators Earnings per share (EUR) Economic Capital Ratio (%) 215% 214% 0.98 182% 0.79 161% 150% 0.61 0.48 0.37 9M13 9M14 9M15 9M16 9M17 FY13 FY14 FY15 FY16 6M17 Operating Return on Equity (%) Book value per share (EUR) 10.20 10.34 10.12 17.2% 10.00 15.6% 14.6% 10.0% 9.4% 8.98 FY13 FY

  5. Slide 5: Snapshot 9M17

    Snapshot 9M17 Growth above expectations in EURm 9M16 9M17 % CEE (P&C and single-Life) and AT (P&C and Health) Gross premiums written(a) 3,812.3 4,043.9 6.1% Premiums earned (retained) 3,332.4 3,473.0 4.2% Impairment on fixed income securities and FX losses only Net investment income 419.4 393.6 -6.

  6. Slide 6: Group Results

    9M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 6

  7. 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 -3.1% 4.8% 6.1% 5,122 5,211 1,512 4,044 5,026 5,048 241 441 65 3,812 207 275 169 1,287 117 1,236 1,245 1,188 361 77 1,559 1,367 1,357 52 64 1,005 1,405 40 1,003 354 331 313 315 270 1,004 784 903

  8. Slide 8: Cost Ratio decreased to 24.5%

    Cost Ratio decreased to 24.5% Cost ratio (net) (%), Costs (EURm) 8.1% -2.2% 1,294 1,286 0.9% 352 1,200 1,190 331 935 943 315 304 297 448 417 361 346 127 100 290 297 95 102 94 221 226 212 228 54 165 152 63 53 49 45 26.4% 26.6% 28.4% 24.8% 23.7% 25.4% 25.9% 24.1% 23.6% 26.0% 24.5% 625 614 632 642 176

  9. Slide 9: P&C: Underwriting improved – COR decreased to 97.1%

    P&C: Underwriting improved – COR decreased to 97.1% Combined ratio (net) (%) -1.2 pp -3.0 pp 100.8% 98.3% 97.1% 100.3% 99.5% 98.1% 97.9% 97.4% 97.7% 97.8% 95.9% 29.7% 31.4% 31.2% 33.6% 30.6% 30.4% 30.3% 32.4% 31.8% 31.5% 35.2% 66.8% 69.0% 67.5% 71.1% 67.4% 66.9% 65.9% 65.7% 62.2% 65.9% 64.4% 2013 20

  10. Slide 10: P&C: EBT slightly decreased ytd due to one-off gain

    P&C: EBT slightly decreased ytd due to one- off gain on disposal in 3Q16 Net premiums earned EURm Investment result EURm Earnings before taxes EURm 5.1% -61.4% 643 56 630 -44.7% 22 16 29 28 27 611 26 24 20 599 594 -8 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17  Strong

  11. Slide 11: Health: Strong EBT contribution on improved underwriting

    Health: Strong EBT contribution on improved underwriting and solid investment result in 3Q17 Cost – benefit ratio (%) Investment result EURm Earnings before taxes EURm 102.0 100% 101% 101% 101% % 95% 55.2% 47 51 47 15% 20% 18% 15% 42 14% 45 36 23 23 85% 81% 83% 87% 82% -1 -1 3Q16 4Q16 1Q17 2Q17 3Q17

  12. Slide 12: Life: Decreased earnings before tax reflecting lower investment result

    Life: Decreased earnings before tax reflecting lower net investment result in 9M17 Reserve (net) EURbn Investment result EURm Earnings before taxes EURm 117.2 % 37 20,312 16.5% 102 94 24 88 84 15,803 16,224 15,970 15,775 48 51 31 28 11 19 7 11 0 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16 4Q16 1Q17 2Q17 3Q17 3Q16

  13. Slide 13: Investment Activity

    Investment Activity Investment income EUR 281  Net investment result of EUR 393.6m in 9M17 209 218 (EUR 419.4m in 9M16) 191 190 182 167 170 158 161 142 145 135  Current income of EUR 377.7m in 9M17 (EUR 108 391.2m in 9M16) 76  Contribution from participation in STRABAG: EUR +15.0m in 9M17 (EUR +3

  14. Slide 14: Outlook

    9M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 14

  15. Slide 15: Outlook

    Outlook  Overall growth of ~4% in GWP expected for FY17:  P&C growth above 4% 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 expects significant growth in life insurance in FY17,

  16. Slide 16: Operating Segments

    9M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 16

  17. Slide 17: UNIQA Austria

    UNIQA Austria Highlights EURm 9M16 9M17 Δ yoy Gross premiums written(a) 2,774.7 2,793.9 0.7% Reinsurers' share -534.1 -516.1 -3.4% Change due to premiums earned -36.9 -42.6 15.5%  Gross premiums written flattish ytd; stop of sale of single premium business products in life segment (-62.7%) overcomp

  18. Slide 18: UNIQA Austria P&C

    UNIQA Austria P&C Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written 1,222.1 1,268.5 3.8% Reinsurers' share -488.1 -485.7 -0.5%  Gross premium written increased 3.8% ytd caused by motor Change due to premiums earned -33.9 -39.6 16.6% business and property retail business growth; moder

  19. Slide 19: UNIQA Austria Health

    UNIQA Austria Health Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written 719.2 737.8 2.6% Reinsurers' share -0.2 -0.1 -42%  Gross premiums written continued growth trend due to premium Change due to premiums earned -3.0 -3.0 -0.9% adjustments and a successful cooperation with business

  20. Slide 20: UNIQA Austria Life

    UNIQA Austria Life Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written(a) 833.4 787.7 -5.5% Reinsurers' share -45.8 -30.2 -34.0% Change due to premiums earned 0.0 -0.1 N/A  Decline in top line driven by reduction of single premium business; Net Premiums Earned(a) 787.6 757.3 -3.8% recc

  21. Slide 21: UNIQA International

    UNIQA International Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written(a) 1,017.3 1,217.7 19.7% Reinsurers' share -314.3 -345.0 9.8%  Gross Written Premiums increased by 19.7% vs 9M16 (18.0% FX Change due to premiums earned -11.1 -8.3 -24.9% adjusted) driven by Life single EUR 125.7m

  22. Slide 22: UNIQA International P&C

    UNIQA International P&C Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written 702.5 753.5 7.3% Reinsurers' share -307.6 -336.5 9.4%  Gross premiums written increased 7.3% compared to 9M17, (6.3% Change due to premiums earned -9.0 -5.9 -33.9% FX adjusted); growth in other P&C due to new b

  23. Slide 23: UNIQA International Health

    UNIQA International Health Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written 36.1 46.0 27.3% Reinsurers' share -0.6 -2.4 >100% Change due to premiums earned -2.6 -2.4 -6.6%  Gross premium written: increased 27.3% where as highest growth rate is recorded in Croatia, Russia, Ukraine an

  24. Slide 24: UNIQA International Life

    UNIQA International Life Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written(a) 278.7 418.2 50.1% Reinsurers' share -6.1 -6.2 1.4%  Gross premiums written: Increased by +50.1% Change due to premiums earned 0.5 0.0 -92.3%  Significant increase in PL - main growth driver unit- Net Premi

  25. 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 9M17 % to PY 9M17 % to PY 9M17 % to PY 9M17 % to PY FX adjusted (b) Western Europe (WE) 25.1 44% 10.2 19% 0.0 35.3 36% 36% Western Europe (WE) 25.1 44% 10.2 19% 0.0 35.3 36% 36% Czech Republic 145.

  26. 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 9M17 9M16 9M17 9M16 9M17 9M16 9M17 9M16 9M17 9M16 Western Europe (WE) (b) 11.3 10.1 -0.6 0.2 135.7% 93.0% 24.2% 26.5% 0.2 1.3 Western Europe (WE) 11.3 10.1 -0

  27. Slide 27: Reinsurance

    Reinsurance Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written(a) 866.5 856.4 -1.2%  Comprises the reinsurance activities of UNIQA Insurance Group AG Reinsurers' share -69.5 -73.6 5.8% in Vienna and the central reinsurance hub UNIQA Re in Zurich Change due to premiums earned -26.7 -9.

  28. Slide 28: Group Functions

    Group Functions Financial Highlights EURm 9M16 9M17 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 

  29. Slide 29: Consolidation

    Consolidation Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written(a) -846.3 -824.2 -2.6%  Consolidation of intercompany effects Reinsurers' share 776.6 797.4 2.7% Change due to premiums earned -5.4 -1.5 -72.4% Net Premiums Earned(a) -75.1 -28.3 -62.3% Savings portion included in premiu

  30. Slide 30: Group Balance Sheet

    Group Balance Sheet Assets Liabilities EURm Sep17 Dec16 EURm Sep17 Dec16 A. Total equity 3,122.0 3,212.8 -2.8% A. Tangible assets 314.0 265.2 18.4% B. Land and buildings held as financial I. Shareholder equity 3,107.6 3,186.3 -2.5% investments 1,261.6 1,350.0 -6.5% C. Intangible assets 1,510.2 1,492

  31. Slide 31: Shareholders' equity (excluding minority interest)

    Shareholders‘ equity (excluding minority interest) EURm 3.186 93 3.108 50 150 114 Dec 16 Valuation of financial Dividend payment Profit attributable Other June 17 instruments AFS to shareholders Shareholders’ equity decreased in 6M17:  Revaluation reserves decreased mainly due to higher interest ra

  32. Slide 32: Group Income Statement

    Group Income Statement EURm 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17 Δ yoy Gross premiums written(a) 1,187.7 1,235.9 1,511.9 1,286.7 1,245.3 3,812.3 4,043.9 6.1% Reinsurers' share -40.5 -51.0 -70.0 -30.6 -36.7 -141.3 -137.4 -2.8% Change due to premiums earned 46.9 52.0 -162.1 47.9 52.1 -80.2 -62.1 -22.5%

  33. Slide 33: Group P&C

    Group P&C Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written 1,937.6 2,048.4 5.7%  Gross Written Premiums increased 5.7% as a result of strong growth Reinsurers' share -97.4 -108.0 10.8% in CEE driven by motor business in CZ, SK, HU and non-motor Change due to premiums earned -75.2 -5

  34. Slide 34: Group Health

    Group Health Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written 755.2 783.5 3.7%  Gross Premiums Written increased by 3.7% Reinsurers' share -0.5 -0.7 39% Change due to premiums earned -5.5 -5.3 -2.3%  UNIQA International: 27.3% Net Premiums Earned 749.3 777.5 3.8%  UNIQA Austria: 2

  35. Slide 35: Group Life

    Group Life Financial Highlights EURm 9M16 9M17 Δ yoy Gross premiums written(a) 1,119.4 1,211.9 8.3%  Gross Premium Written rose 8.3% ytd driven by positive development Reinsurers' share -43.4 -28.7 -33.9% in both recurring and single premium business in UNIQA International Change due to premiums ea

  36. Slide 36: Asset Management

    9M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 36

  37. Slide 37: Fixed income portfolio

    Fixed income portfolio Overall composition Rating distribution 32% Dec16 30% 2% Governent Bonds EU EUR 16.5bn 11% 24%23% 20% 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% June 17 Dec 16 Other By segment Sep 17 EUR 16.1

  38. Slide 38: Fixed income portfolio: Government and government related

    Fixed income portfolio Government and government related Overall composition EUR 9.4bn Rating distribution 4% 2% 4% Rest of Europe 4% Austria 39.7% Poland 6% 33% Europe France 7% Belgium 7% Rest of World Ireland 27.6% 8% 13% Slovakia 9% Supranational Organisations By segment Italy 12.9% 10.6% 19% 9.

  39. Slide 39: Fixed income portfolio: Corporates including financials

    Fixed income portfolio Corporates including financials Overall composition EUR 3.2bn Rating distribution 4% 2% United States of America 31.9% 6% Austria 22% 29.7% Rest of Europe 10% France 7% United Kingdom 12% Rest of World 9% Germany World 10% 17% Netherlands By segment Italy 14.2% 12.2% 20% 9.1%

  40. Slide 40: Fixed income portfolio: Corporate thereof financials

    Fixed income portfolio Corporate thereof financials Overall composition EUR 1.3bn Rating distribution 4% 4% Austria 36.5% 6% 22% United States of America 7% France Rest of World 6% United Kingdom 7% Netherlands 29% Germany 14% Italy Rest of Europe By segment 18.1% 16.4% 11.4% 11.5% 29% 6.1% P&C Heal

  41. Slide 41: Fixed income portfolio: Covered bonds

    Fixed income portfolio Covered bonds Overall composition EUR 3.1bn Rating distribution 3% Austria 4% 6% 17% France 68.1% Germany 8% Rest of Europe United Kingdom 7% 17% Netherlands Rest of World 9% Australia 10% 9% Belgium 10% Spain By segment Italy 23.7% 18% P&C 5.3% 19% Health 1.1% 1.9% 0.0% 63% L

  42. Slide 42: Shareholder Information

    9M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 42

  43. 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

  44. 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 309m common shares 133% 0% 41% 38% 45% 44% 102% ISIN: AT0000821103 0.49  Bloomberg: UQA AV 0.47 0.42  Reuters: UNIQ.VI 0.40  Vienna S

  45. 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

  46. Slide 46: 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

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