UNIQA Insurance Group AG · VIE:UQA
UNIQA Insurance — 6M17 Earnings Presentation
48 slides from UNIQA Insurance's earnings presentation, Aug 23, 2017
Slide 1: UNIQA Insurance Group AG 6M17 Results
UNIQA Insurance Group AG 6M17 Results Increased Earnings Before Tax Driven by Improved Technical Result 23 August 2017 Andreas Brandstetter, CEO Kurt Svoboda, CFO/CRO
Slide 2: 6M17 Group Strategy & Results
6M17 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 6M17
Executive Summary 6M17 Gross written premiums(a) increased by 6.6% driven by all lines of business Net combined ratio improved to 96.8% (97.1% in 6M16) Net cost ratio at 25.0% (26.3% in 6M16) Net investment result decreased to EUR 233.5m (EUR 252.4m in 6M16) Earnings before taxes improved
Slide 4: Key Financial Indicators
Key Financial Indicators Earnings per share (EUR) Economic Capital Ratio (%) 0.71 215% 217% 182% 0.51 161% 150% 0.40 0.29 0.13 6M13 6M14 6M15 6M16 6M17 FY13 FY14 FY15 FY16 3M17 Operating Return on Equity (%) Book value per share (EUR) 10.20 10.34 17.2% 10.00 15.6% 9.77 14.6% 10.0% 8.98 7.5% FY13 FY1
Slide 5: Snapshot 6M17
Snapshot 6M17 Growth above expectations in EURm 6M16 6M17 % CEE (P&C and single-Life) and AT Gross premiums written(a) 2,624.6 2,798.6 6.6% (P&C and Health) Premiums earned (retained) 2,229.6 2,314.9 3.8% Impairment on fixed income securities and FX losses partially Net investment income 252.4 233.
Slide 6: Disposal of Italian Operations
Disposal of Italian Operations On 2 December 2016 UNIQA agreed to sell its Italian operations to Società Reale Mutua di Assicurazioni Part of the disposed business was the bancassurance agreement between UNIQA and Veneto Banca; This agreement included compensation payment obligations if Veneto B
Slide 7: Effects of Disposal of Italian Operations
Effects of Disposal of Italian Operations EUR m FY2016 6M17 Purchase price 295,0 294,1 Price adjustments -7,2 -58,0 thereof contractual obligation Veneto -7,2 -40,0 Net assets of disposal group -360,4 -271,4 Result of deconsolidation -72,6 -35,3 Transaction costs -5,5 Operating result Italy 17,5 2,7
Slide 8: Group Results
6M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 8
Slide 9: Continued Growth Above Expectations in All Business Lines
Continued Growth Above Expectations in All Business Lines Gross written premium(a) per business line EURm 6.6% 2,799 -3.1% 8.5% 2,625 143 5,211 1,512 77 5,122 5,026 5,048 241 441 65 275 169 692 1,287 688 1,236 1,185 1,188 361 77 1,559 1,367 1,357 52 1,405 29 40 331 523 329 315 354 505 270 964 1,004
Slide 10: Cost Ratio Improved to 25.0%
Cost Ratio Improved to 25.0% Cost ratio (net) (%), Costs (EURm) 8.1% 0.1% 2.4% 1,294 1,286 352 646 1,200 1,190 331 631 314 315 304 448 417 361 346 127 195 203 100 104 95 102 221 226 212 228 108 54 117 63 53 59 49 26.7% 28.4% 26.4% 26.6% 25.4% 25.9% 24.1% 24.8% 23.7% 26.3% 25.0% 625 614 632 642 176 3
Slide 11: P&C: COR Decreased to 96.8% due to Improved Cost Ratio
P&C: COR Decreased to 96.8% due to Improved Cost Ratio Combined ratio (net) (%) -2.1 pp -0.3 pp 100.3% 99.5% 100.8% 97.1% 96.8% 97.9% 98.1% 97.9% 97.4% 97.7% 95.9% 33.6% 30.6% 29.7% 32.3% 31.6% 30.4% 32.4% 33.4% 31.8% 35.2% 31.5% 66.8% 69.0% 67.5% 71.1% 64.8% 65.1% 65.7% 64.5% 62.2% 65.9% 64.4% 2013
Slide 12: P&C: EBT Increased by 25.1% in 6M17
P&C: EBT Increased by 25.1% in 6M17 Net premiums earned EURm Investment result EURm Earnings before taxes EURm 10.2% 39.8% 56 643 66.5% 29 611 20 28 27 26 599 24 594 20 12 583 -8 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 Strong growth in CEE: Driven by motor busine
Slide 13: Health: Strong Investment Result in 2Q
Health: Strong Investment Result in 2Q Cost – benefit ratio (%) Investment result EURm Earnings before taxes EURm 104% 101% 101% 101% 87.8% 100% 40.2% 47 16% 15% 51 42 15% 20% 18% 45 32 22 23 23 88% 85% 83% 87% 81% -1 -1 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17 2Q17 Bene
Slide 14: Life: Decreased Earnings before Tax
Life: Decreased Earnings before Tax reflecting Lower Net Investment Result in 6M17 Reserve (net) EURbn Investment result EURm Earnings before taxes EURm -98.2% -8.7% 37 94 20,003 20,312 92 88 84 (b) (b) 15,970 (b) 16,224 15,803 47 51 19 0 40 35 11 19 7 11 2Q16 3Q16 4Q16 1Q17 2Q17 2Q16 3Q16 4Q16 1Q17
Slide 15: Investment Activity
Investment Activity Investment income EUR 281 Current income of EUR 235.5m in 6M17 (EUR 209 218 253.1m in 6M16) 191 190 182 167 170 158 142 145 135 Contribution from participation in STRABAG: 108 EUR -10.3m in 6M17 (EUR -14.2m in 6M16) 76 Realized and unrealized losses of EUR -2.0m (EUR -0.7m
Slide 16: Outlook
6M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 16
Slide 17: Outlook
Outlook Business outlook FY17 Overall growth of at least 3% in GWP expected for FY17: P&C growth above 3%, driven by both Austria and CEE Health slightly above long term trend of 3% Life: Recurring premium business forecasted to slightly decrease in AT. On the other hand, UNIQA expects signi
Slide 18: Operating Segments
6M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 18
Slide 19: UNIQA Austria
UNIQA Austria Highlights EURm 6M16 6M17 Δ yoy Gross premiums written(a) 1,924.8 1,930.7 0.3% Reinsurers' share -376.4 -362.9 -3.6% Change due to premiums earned -66.2 -70.6 6.6% Gross premiums written flattish ytd; stop of sale of single premium business products in life segment (-65.1%) overcompe
Slide 20: UNIQA Austria P&C
UNIQA Austria P&C Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written 862.7 891.9 3.4% Reinsurers' share -345.7 -345.5 -0.1% Gross premium written increased 3.4% ytd caused by motor Change due to premiums earned -59.5 -63.7 7.0% business and property retail business growth; moderate g
Slide 21: UNIQA Austria Health
UNIQA Austria Health Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written 480.4 493.2 2.6% Reinsurers' share -0.2 -0.1 -42% Gross premiums written continued growth trend due to premium Change due to premiums earned -7.0 -7.0 0.6% adjustments and a successful cooperation with business p
Slide 22: UNIQA Austria Life
UNIQA Austria Life Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written(a) 581.7 545.7 -6.2% Reinsurers' share -30.6 -17.3 -43.4% Change due to premiums earned 0.2 0.1 -63.3% Decline in top line driven by reduction of single premium business Net Premiums Earned(a) 551.3 528.4 -4.1% Sav
Slide 23: UNIQA International
UNIQA International Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written(a) 679.7 837.1 23.2% Reinsurers' share -218.2 -247.9 13.6% Gross Written Premiums increased by +23.2% vs 6M16 (+21.0% FX Change due to premiums earned -13.1 -13.3 1.9% adjusted) driven by Life single EUR 94.5m (Po
Slide 24: UNIQA International P&C
UNIQA International P&C Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written 476.5 523.0 9.7% Reinsurers' share -214.0 -242.3 13.2% Gross premiums written increased +9.7% compared to 6M17, Change due to premiums earned -9.9 -10.0 0.0% (+8.8% FX adjusted); growth in other P&C due to new
Slide 25: UNIQA International Health
UNIQA International Health Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written 25.1 29.5 17.7% Reinsurers' share -0.4 -1.2 >100% Change due to premiums earned -3.2 -3.5 7.9% Gross premium written: increased +17.7% where as highest growth rate is recorded in Croatia, Russia, Ukraine an
Slide 26: UNIQA International Life
UNIQA International Life Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written(a) 178.1 284.7 59.8% Reinsurers' share -3.7 -4.4 16.9% Gross premiums written: Increased by +59.8% Change due to premiums earned 0.1 0.1 7.1% Significant increase in PL - main growth driver unit- Net Premiu
Slide 27: 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 6M17 % to PY 6M17 % to PY 6M17 % to PY 6M17 % to PY FX adjusted Switzerland 0.0 -100% 0.0 -100% 0.0 0.0 -100% -100% Liechtenstein 23.0 51% 7.1 0.0 30.1 98% 96% Western Europe (WE) 23.0 51% 7.1 21%
Slide 28: 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 6M17 6M16 6M17 6M16 6M17 6M16 6M17 6M16 6M17 6M16 Switzerland 0.0 5.5 0.3 0.1 34.4% 0.5 1.1 Liechtenstein 7.5 2.0 -0.2 0.0 118.2% 65.3% 28.9% 20.5% 0.0 0.5 We
Slide 29: Reinsurance
Reinsurance Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written(a) 612.5 621.5 1.5% Comprises the reinsurance activities of UNIQA Insurance Group AG Reinsurers' share -51.5 -53.5 3.9% in Vienna and the central reinsurance hub UNIQA Re in Zurich Change due to premiums earned -43.7 -29.
Slide 30: Group Functions
Group Functions Financial Highlights EURm 6M16 6M17 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
Slide 31: Consolidation
Consolidation Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written(a) -592.4 -590.8 -0.3% Consolidation of intercompany effects Reinsurers' share 545.2 563.7 3.4% Change due to premiums earned -4.1 -1.2 -69.6% Net Premiums Earned(a) -51.2 -28.3 -44.7% Savings portion included in premiu
Slide 32: Group Balance Sheet
Group Balance Sheet Assets Liabilities EURm June17 Dec16 EURm June17 Dec16 A. Total equity 3,013.5 3,212.8 -6.2% A. Tangible assets 322.0 265.2 21.4% B. Land and buildings held as financial I. Shareholder equity 2,997.6 3,186.3 -5.9% investments 1,270.0 1,350.0 -5.9% C. Intangible assets 1,516.5 1,4
Slide 33: Shareholders' equity (excluding minority interest)
Shareholders‘ equity (excluding minority interest) EURm 3.186 137 2.998 151 58 41 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
Slide 34: Group Income Statement
Group Income Statement EURm 2Q16 3Q16 4Q16 1Q17 2Q17 6M16 6M17 Δ yoy Gross premiums written(a) 1,185.4 1,187.7 1,235.9 1,511.9 1,286.7 2,624.6 2,798.6 6.6% Reinsurers' share -43.0 -40.5 -51.0 -70.0 -30.6 -100.9 -100.7 -0.2% Change due to premiums earned 35.8 46.9 52.0 -162.1 47.9 -127.1 -114.2 -10.1
Slide 35: Group P&C
Group P&C Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written 1,354.5 1,441.6 6.4% Gross Written Premiums increased as a result of strong growth in Reinsurers' share -71.6 -83.9 17.2% CEE driven by motor business in CZ, SK, HU and non-motor business Change due to premiums earned -117.
Slide 36: Group Health
Group Health Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written 505.4 522.5 3.4% Gross Premiums Written increased by 3.4% Reinsurers' share -0.3 -0.5 36% Change due to premiums earned -10.1 -10.5 4.1% UNIQA International: +17.7% Net Premiums Earned 495.0 511.6 3.4% UNIQA Austria:
Slide 37: Group Life
Group Life Financial Highlights EURm 6M16 6M17 Δ yoy Gross premiums written(a) 764.7 834.4 9.1% Gross Premium Written rose 9.1% ytd driven by positive development Reinsurers' share -29.0 -16.3 -43.7% in both recurring and single premium business in UNIQA International Change due to premiums earned
Slide 38: Asset Management
6M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 38
Slide 39: Fixed income portfolio
Fixed income portfolio Overall composition Rating distribution 32% Dec16 31% EUR 16.5bn 2% Governent Bonds EU 11% 24%23% 21% 19% Covered Bonds 11% 15% 14% 46% Corporates 7% 8% 11% 4% 3% Government Bonds Non-EU Financials AAA AA A BBB <BBB Not rated 18% March 17 Dec 16 Other By segment June 17 EUR 16
Slide 40: Fixed income portfolio: Government and government related
Fixed income portfolio Government and government related Overall composition EUR 9.4bn Rating distribution Rest of Europe 4% 4% 2% 40.7% Austria 4% Poland 6% 32% Europe France 7% Belgium Rest of World 7% Ireland 27.1% 8% 13% Slovakia 9% Supranational Organisations By segment Italy 13.2% 10.7% 19% 8.
Slide 41: Fixed income portfolio: Corporates including financials
Fixed income portfolio Corporates including financials Overall composition EUR 3.3bn Rating distribution United States of America 4% 2% 4% Austria 22% 33.5% 9% Rest of Europe France 31.4% 9% United Kingdom 18% Rest of World 9% Germany World 11% 12% Netherlands By segment Italy 12.8% 11.0% 20% 8.5% 3
Slide 42: Fixed income portfolio: Corporate thereof financials
Fixed income portfolio Corporate thereof financials Overall composition EUR 1.5bn Rating distribution 4% 3% Austria 5% United States of America 38.5% 5% 33% France 6% Rest of World 7% United Kingdom Netherlands 13% Germany 25% Italy 23.4% Rest of Europe By segment 14.1% 9.2% 9.4% 25% 5.4% P&C Health
Slide 43: Fixed income portfolio: Covered bonds
Fixed income portfolio Covered bonds Overall composition EUR 3.1bn Rating distribution 3% Austria 4% France 71.2% 5% 18% Germany 8% Rest of Europe United Kingdom 8% 16% Netherlands Rest of World 9% Australia 10% 9% Belgium 10% Spain By segment Italy 21.5% 19% P&C 4.4% Health 1.1% 1.9% 21% 0.0% 60% L
Slide 44: FX rates
FX rates Foreign currency June 16 June 17 6M16 6M17 Czech koruna CZK 27.131 26.197 26.197 26.805 Swiss franc CHF 1.087 1.093 1.093 1.077 Hungarian forint HUF 317.060 308.970 308.970 309.270 Croatian kuna HRK 7.528 7.410 7.410 7.459 Polish zloty PLN 4.436 4.226 4.226 4.271 Romanian Leu RON 4.523 4.55
Slide 45: Shareholder Information
6M17 Highlights Group Strategy & Group Results Results Outlook Business Performance Operating Segments Appendix: Additional Asset Management Information Shareholder Information UNIQA Investor Relations 45
Slide 46: 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
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 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
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