UNIQA Insurance Group AG · VIE:UQA

UNIQA Insurance — FY2016 Earnings Presentation

48 slides from UNIQA Insurance's earnings presentation, Mar 9, 2017

  1. Slide 1: UNIQA Insurance Group AG FY16 Results

    UNIQA Insurance Group AG FY16 Results FY16 results in line with guidance 9 March 2016 Andreas Brandstetter, CEO Kurt Svoboda, CFO/CRO

  2. Slide 2: FY16 Highlights

    FY16 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: Sale of Italian Operations

    Sale of Italian Operations  On 2 December 2016 UNIQA decided to sell its Italian operations (segment UNIQA International)  The sales price is EUR 295m (gross)  Closing – subject to approval by the authorities - is expected for the first half of 2017  According to IFRS 5.33 UNIQA presents the tra

  4. Slide 4: Executive summary FY16

    Executive summary FY16  Gross written premiums(a) decreased by 3.1% due to reduction of single premium business in Austria  Net combined ratio worsened slightly to 98.1% (97.9% FY15) driven by investments and large losses; 97.1% excluding investments  Net cost ratio increased to 26.6% (23.7% FY15

  5. Slide 5: Key Financial Indicators

    Key Financial Indicators Earnings per share (EUR) Economic Capital Ratio 1.21 182% > 180% 1.09 161% 0.94 0.75 108% 0.48 N/A FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Operating Return on Equity (%) Book value per share (EUR) 11.74 16.6% 16.8% 17.2% 15.0% 10.79 10.0% 10.34 10.20 9.95 FY12 FY13

  6. Slide 6: Snapshot FY16

    Snapshot FY16 EURm FY15 FY16 % (a) Reduction of single premium Gross premiums written 5,211.0 5,048.2 -3.1% business in Austria Premiums earned (retained) 4,651.1 4,443.0 -4.5% Reduced harvesting, lower Net investment income 732.0 588.9 -19.5% interest rates and positive FX effects in FY15 Insuranc

  7. Slide 7: Group Results

    FY16 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 7

  8. Slide 8: GWP decreased 3.1% y-o-y

    GWP decreased 3.1% y-o-y Gross written premium(a) per business line EURm -3.1% 4.0% -3.1% 1,439 5,211 5,048 5,122 5,211 47 5,026 5,048 441 169 241 275 441 169 1,236 1,189 1,185 1,188 359 52 41 29 40 1,367 1,357 1,559 1,367 1,357 1,405 329 315 354 355 259 964 1,004 964 1,004 903 926 239 246 250 248 7

  9. Slide 9: Cost ratio up to 26.6% due to reduced single premium business

    Cost ratio up to 26.6% due to reduced single premium business and capital expenditure Cost ratio (net) (%), Costs (EURm) 8.1% 30.2% 1,294 8.1% 1,286 352 1,200 1,190 1,286 316 314 1,190 304 448 417 361 346 270 127 417 91 104 346 95 76 221 226 212 228 57 63 212 228 26.4% 26.6% 59 49 24.8% 23.7% 59 26.

  10. Slide 10: P&C: In FY16 COR increased to 98.1%

    P&C: In FY16 COR increased to 98.1% driven by capital expenditure Combined ratio (net) (%) 0.2 pp 1.0 pp 100.3% 100.8% 97.9% 98.1% 99.5% 97.9% 98.1% 97.9% 96.4% 96.2% 97.4% 29.7% 30.4% 32.4% 33.6% 30.6% 30.4% 28.1% 32.4% 31.1% 33.4% 35.2% 66.8% 69.0% 67.5% 68.3% 71.1% 67.5% 65.7% 65.7% 65.1% 64.5% 6

  11. Slide 11: P&C: EBT contribution of EUR 57.9m in FY16

    P&C: EBT contribution of EUR 57.9m in FY16 Net premiums earned EURm Investment result EURm Earnings before taxes EURm -26.1% 4.7% 56 599 N/A 594 24 583 583 33 32 27 29 26 20 12 568 -8 4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16  Growth driven by motor business in AT a

  12. Slide 12: Health: FY16 EBT contribution of EUR 96.1m

    Health: FY16 EBT contribution of EUR 96.1m in line with expectations Cost – benefit ratio (%) Investment result EURm Earnings before taxes EURm -23.5% 7.1% 62 102% 104% 101% 51 100% 96% 48 47 16% 19% 15% 20% 19% 32 23 88% 22 23 84% 85% 81% 77% 8 3 4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16 4Q

  13. Slide 13: Life: Solid EBT contribution of EUR 71.6m

    Life: Solid EBT contribution of EUR 71.6m in low interest rate environment Reserve (net) EURbn Investment result EURm Earnings before taxes EURm 25.9% 37 -7.4% 20,312 19,762 19,759 20,003 102 92 94 29 83 88 (b) 16,224 68 19 48 40 35 11 17 5 4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16 2Q16 3Q16 4Q16 4Q15 1Q16

  14. Slide 14: Investment activity

    Investment activity Investment income EUR 281  Current income of EUR 537.1m in FY16 209 218 191 190 182 167 170  Realized and unrealized profits and losses of 135 142 145 EUR 51.8m in FY16 108  Thereof sale of stake in Niederösterreichische Versicherung EUR 37.2m in 3Q16  Thereof FX gains of EUR

  15. Slide 15: Outlook

    FY16 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 15

  16. Slide 16: Outlook

    Outlook Business outlook FY17  Premiums forecasted slightly growing:  P&C growth above 2%  Health in line with long term trend around 3%  Life: Recurring premium business forecasted slightly down  Combined ratio to improve to 97.5% in FY17  Capital expenditures roughly on same level as in FY16

  17. Slide 17: Operating Segments

    FY16 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 17

  18. Slide 18: UNIQA Austria

    UNIQA Austria Highlights EURm FY15 FY16 Δ yoy (a) Gross premiums written 3,883.5 3,631.5 -6.5%  Gross premiums written decrease of -6.5% y-o-y is a result of stop Reinsurers' share -690.0 -689.3 -0.1% of sale of single premium business products. Motor business, Change due to premiums earned 1.4 -0.

  19. Slide 19: UNIQA Austria P&C

    UNIQA Austria P&C Financial Highlights EURm FY15 FY16 Δ yoy  Gross premium written increased mainly supported by motor Gross premiums written 1,540.8 1,568.6 1.8% business ´growth and due to growth in property retail business. Reinsurers' share -630.5 -627.4 -0.5% Corporate business decreased accor

  20. Slide 20: UNIQA Austria Health

    UNIQA Austria Health Financial Highlights EURm FY15 FY16 Δ yoy  Gross premiums written continued growth tend due to premium Gross premiums written(a) 921.6 956.3 3.8% adjustments and a successful cooperation with business partner Reinsurers' share -0.4 -0.6 42% Hartlauer. Change due to premiums ear

  21. Slide 21: UNIQA Austria Life

    UNIQA Austria Life Financial Highlights EURm FY15 FY16 Δ yoy Gross premiums written(a) 1,421.2 1,106.5 -22.1%  Decline in top line driven decrease of reduced single premium Reinsurers' share -59.1 -61.4 3.8% business volume Change due to premiums earned 0.8 0.0 -95.3% Net Premiums Earned(a) 1,362.8

  22. Slide 22: UNIQA International

    UNIQA International Financial Highlights EURm FY15 FY16 Δ yoy Gross premiums written(a) 1,302.8 1,399.9 7.5%  Premium increase compared to FY15 of 7.5 % or EUR 97m, driven by Motor premium plus of ÉUR 58.8m (Poland EUR +25.3m; Romania Reinsurers' share -386.1 -424.0 9.8% EUR +22.5m; CZ EUR +11.0m)

  23. Slide 23: UNIQA International P&C

    UNIQA International P&C Financial Highlights EURm FY15 FY16 Δ yoy  Gross premiums written increased compared to FY15 despite Gross premiums written 883.6 942.3 6.6% negative FY effects driven by higher income in Motor business Reinsurers' share -377.5 -413.8 9.6% Change due to premiums earned -3.2

  24. Slide 24: UNIQA International Health

    UNIQA International Health Financial Highlights EURm FY15 FY16 Δ yoy Gross premiums written(a) 43.4 47.7 9.8%  Gross premium written: increased +9.8 % highest growth rates in Serbia, Croatia, Russia and Czech Republic Reinsurers' share -0.8 -1.9 >100% Change due to premiums earned -0.1 -1.8 >100% 

  25. Slide 25: UNIQA International Life

    UNIQA International Life Financial Highlights EURm FY15 FY16 Δ yoy  Gross premiums written: Increased by 9.1% Gross premiums written(a) 375.7 409.9 9.1%  due to increase in Life traditional of EUR 7.5% and life Reinsurers' share -7.9 -8.4 6.1% single premium business of EUR 21.4% Change due to pre

  26. Slide 26: 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 FY16 % to PY FY16 % to PY FY16 % to PY FY16 % to PY FX adjusted Switzerland 0.0 -8% 11.3 10% 0.0 11.3 10% 11% Liechtenstein 25.2 22% 0.0 0.0 25.2 22% 22% Western Europe (WE) 25.2 22% 11.3 10% 0.0

  27. Slide 27: 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 FY16 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 FY15 Switzerland 11.2 10.2 0.2 0.2 35.3% 33.9% 1.5 1.1 Liechtenstein 1.3 2.5 0.2 1.3 138.6% 15.0% -8.2% -29.8% -0

  28. Slide 28: Reinsurance

    Reinsurance Financial Highlights EURm FY15 FY16 Δ yoy Gross premiums written(a) 1,112.0 1,130.8 1.7%  Comprises the reinsurance activities of UNIQA Insurance Group AG Reinsurers' share -98.1 -94.5 -3.7% in Vienna and the central reinsurance hub UNIQA Re in Zurich Change due to premiums earned 0.5 -

  29. Slide 29: Group Functions

    Group Functions Financial Highlights EURm FY15 FY16 Δ yoy Gross premiums written(a) 0.0 0.0 N/A  Comprises Expenses of UIG Headquarter Reinsurers' share 0.0 0.0 N/A Change due to premiums earned 0.0 0.0 N/A  Net operating expenses increased driven by investments in FY16 Net Premiums Earned(a) 0.0

  30. Slide 30: Consolidation

    Consolidation Financial Highlights EURm FY15 FY16 Δ yoy Gross premiums written(a) -1,087.3 -1,113.9 2.5%  Consolidation of intercompany effects Reinsurers' share 984.5 1,015.5 3.1% Change due to premiums earned -2.7 -1.0 -62.1% Net Premiums Earned(a) -105.4 -99.4 -5.7% Savings portion included in p

  31. Slide 31: Group Balance Sheet

    Group Balance Sheet Assets Liabilities EURm Dec16 Dec15 EURm Dec16 Dec15 A. Total equity 3,212.8 3,166.4 1.5% A. Tangible assets 304.2 293.0 3.8% B. Land and buildings held as financial I. Shareholder equity 3,186.3 3,144.5 1.3% investments 1,310.9 1,392.6 -5.9% C. Intangible assets 1,492.4 1,703.1

  32. Slide 32: Shareholders' equity (excluding minority interest)

    Shareholders‘ equity (excluding minority interest) EURm 24 3.186 62 3.145 145 148 Dec 15 Valuation of financial Dividend payment Profit attributable Other Dec16 instruments AFS to shareholders Shareholders’ equity increased ytd:  Revaluation reserves increased mainly due to lower interest rates ytd

  33. Slide 33: Group Income Statement

    Group Income Statement EURm 4Q15 1Q16 2Q16 3Q16 4Q16 FY15 FY16 Δ yoy Gross premiums written(a) 1,188.6 1,439.2 1,185.4 1,187.7 1,235.9 5,211.0 5,048.2 -3.1% Reinsurers' share -45.8 -57.9 -43.0 -40.5 -51.0 -189.8 -192.3 1.3% Change due to premiums earned 49.9 -162.9 35.8 46.9 52.0 -4.2 -28.2 563.8% N

  34. Slide 34: Group Income Statement – Full View

    Group Income Statement – Full View In EUR tsd 1-12/2016 1-12/2015 adjusted Premiums earned (net) 4,442,970 4,651,128 Technical interest income 333,334 431,740 Other insurance income 23,837 30,429 Insurance benefits -3,385,566 -3,671,307 Operating expenses -1,286,394 -1,190,435 Expenses for the acqui

  35. Slide 35: Group P&C

    Group P&C Financial Highlights EURm FY15 FY16 Δ yoy Gross premiums written(a) 2,439.2 2,518.4 3.2%  Gross Premiums Written moderate growth driven by motor business Reinsurers' share -132.4 -133.0 0.5% in AT and CEE region Change due to premiums earned -5.5 -26.4 >100%  Net insurance claims increas

  36. Slide 36: Group Health

    Group Health Financial Highlights EURm FY15 FY16 Δ yoy (a) Gross premiums written 964.4 1,003.7 4.1%  Gross Premiums Written increased by 4.1% Reinsurers' share -1.1 -1.3 14% Change due to premiums earned 0.6 -2.0 N/A  UNIQA International: +9.8% (a) Net Premiums Earned 963.9 1,000.4 3.8%  UNIQA A

  37. Slide 37: Group Life

    Group Life Financial Highlights EURm FY15 FY16 Δ yoy Gross premiums written(a) 1,807.5 1,526.1 -15.6%  Gross Premium Written decreased 15.6% driven by reduction of Reinsurers' share -56.3 -58.0 3.1% single premium business in Austria Change due to premiums earned 0.7 0.2 -70.2%  Net Insurance Bene

  38. Slide 38: Asset Management

    FY16 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 38

  39. Slide 39: Fixed income portfolio

    Fixed income portfolio Overall composition Rating distribution(b) 32% Dec15 (a) 19.8 EURbn Governent Bonds EU 25% 3% 11% 21% 23% 21% Government Bonds Non-EU 19% 20% 14% 14% 48% 10% Financials 8% Covered Bonds 3% 3% 13% Other AAA AA A BBB <BBB Not rated 11% Dec 16 Dec 15 Corporates By segment (b) Dec

  40. Slide 40: Fixed income portfolio: Government and government related

    Fixed income portfolio Government and government related Overall composition 9.5 EURbn(a) Rating distribution(a) Austria 6% 3% 14% Italy 44.3% Europe Belgium 31% 8% France Poland 9% Ireland Supranational Organisations 8% Slovakia 8% Rest of Europe 25.9% 5% 3% 4% Rest of World By segment 12.4% 17% 10

  41. Slide 41: Fixed income portfolio: Corporates including financials

    Fixed income portfolio Corporates including financials Overall composition 3.7 EURbn(a) Rating distribution(a) 33.1% 6% Austria United States of America 13% 23% Germany 4% France 27.2% 4% United Kingdom 2% Italy 19% 9% World Netherlands 9% 10% Rest of Europe Rest of World 16.8% By segment 11.2% 20%

  42. Slide 42: Fixed income portfolio: Corporate thereof financials

    Fixed income portfolio Corporate thereof financials Overall composition 1.8 EURbn(a) Rating distribution(a) 5% Austria 32.2% 4% 5% United States of America 5% Germany 41% 27.1% 7% France United Kingdom 11% Netherlands Italy 17% Rest of Europe 5% 17.2% Rest of World By segment 11.2% 7.9% 26% 4.4% P&C

  43. Slide 43: Fixed income portfolio: Covered bonds

    Fixed income portfolio Covered bonds Overall composition 3.0 EURbn(a) Rating distribution(a) 6% France 16% Austria 69.9% 12% Germany 4% United Kingdom 5% 16% Australia Netherlands 5% Spain 8% 11% Belgium Italy 9% 8% Rest of Europe By segment Rest of World 23.1% 18% P&C 4.5% 19% Health 1.2% 0.0% 1.3%

  44. Slide 44: FX rates

    FX rates Foreign currency 12M15 12M16 Dec15 Dec 16 Czech koruna CZK 27.023 27.021 27.023 27.021 Swiss franc CHF 1.084 1.074 1.084 1.074 Hungarian forint HUF 315.980 309.830 315.980 309.830 Croatian kuna HRK 7.638 7.560 7.638 7.560 Polish zloty PLN 4.264 4.410 4.264 4.410 Romanian Leu RON 4.524 4.539

  45. Slide 45: Shareholder Information

    FY16 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 45

  46. Slide 46: Shareholder structure

    Shareholder structure Current shareholder structure Free float geographic distribution Collegialität Versicherungsv erein Treasury Privatstiftung shares Rest of World 2.5% 0.7% 17.7% Austria 29.3% Free Float UNIQA 36.9% Versicherungsv erein Privatstiftung 49.0% United States Poland 28.3% 6.1% UK & I

  47. Slide 47: 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% 133% 0% ISIN: AT0000821103 0.49  Bloomberg: UQA AV 0.47 0.42  Reuters: UNIQ.VI 0.40  Vienna S

  48. Slide 48: 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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