UNIQA posts a strong first half year result
- Premium volume written (including savings portion from unit- and index-linked life insurance) increased by 31.1% to EUR 2,487.1 million (excluding savings portion: EUR 2,296.0 million / +25.2%)
- IFRS EGT already at EUR 85.5 million (+ 63.3%)
- Cost ratio reduced further
- Profit expectancy for 2005 remains at EUR 150 million despite floods
The UNIQA Group successfully continued its positive growth trend in the first half year of 2005 and further increased not only premium revenue but also the results domestically and abroad. This was due to strong organic growth (incl. savings portion +11.6% / excl. savings portion +7.4%) and acquisitions.
The premium volume written increased in comparison to the same period in the previous year by a total of 31.1% to EUR 2,487.1 million. Excluding the savings portion from the unit- and index-linked life insurance, which was not taken into consideration in accordance with the international accounting regulations, to the amount of EUR 191.1 million (+201.2%), there has been an increase in premiums of 25.2% to EUR 2,296.0 million.
Benefits paid increased within the Group merely by 12.8% to EUR 1,141.9 million. The entire expenses and benefits paid by the UNIQA Group amounted to EUR 1,879.8 million in the first half year. The 27% increase is essentially due to the expansion of the group of consolidated companies.
At the end of the first half of the year, profit on ordinary activities according to IFRS amounts to EUR 85.5 million which is already around 71% of the amount of the entire previous year (EUR 120.8 million). The foreign companies' contribution to the half-year result was increased by 110.0% to EUR 27.8 million; this amounted to almost one third (32.6%).
For the entire year of 2005, the UNIQA Group expects a profit on ordinary activities of roughly EUR 150 million which, due to developments in the first half year, seems to be well secured even after the flooding damage over the past weeks.
Konstantin Klien, CEO of UNIQA Versicherungen AG, is very satisfied with the development of the first half year: "We have successfully continued along our path of profitable growth in the first half of the year 2005 and implemented our strategy of internationalisation according to plan with our entry into further markets in Central and Eastern Europe. UNIQA has expanded its business in all segments, increased its number of clients and policies and laid the foundation for further positive Group development with numerous in-company measures. In my opinion, the satisfactory organic growth of our Group domestically as well as abroad and the decrease of the cost ratio constitute an essential confirmation of our endeavours."
The UNIQA Group's Austrian companies contributed EUR 1,793.0 (+9.7%) - not including the savings portions from the unit- and index-linked life insurance this was EUR 1,652.6 million, 4.9% more than in the previous year. This means UNIQA has managed to achieve clear growth even in the mature Austrian market. According to the information about the market presently available we can expect that UNIQA will continue to expand its leading position on the domestic insurance market this year.
In addition to the organic growth of 22.9%, the expansion of the group of consolidated companies also played a major role in the increase in premiums written in the foreign companies of 163.7 % to EUR 694.1 million (excl. savings portion +149.2% to EUR 643.4 million). As opposed to the same period last year the numbers have been accounted for from the Italian Claris Vita and the Mannheimer Group (two quarters) as well as the Raiffeisen Osiguranje in Bosnia and Herzegovina and the Mannheimer Krankenversicherung (one quarter). This disproportionately large growth rate has doubled the share of companies outside of Austria that are on a fully consolidated IFRS basis from 14% to over 28%.
Clear growth in premiums in all lines, both in Austria and internationally
Premiums written in life insurance could be increased by 43.7% to EUR 993.5 million - excl. savings premiums by EUR 802.4 million (+27.8%). A large portion of the growth in Austria (16.5% incl. savings premium / 4.3% excl.) continues to be generated by the state assisted pension plans. This new business field (since 2003) and the positive development of the "classic" unit-linked life insurance elevated FinanceLife - which services the fund- and index-linked life insurance within the UNIQA Group - to the clear market leader in this area. FinanceLife currently manages more than 236,500 policies - 122,713 of them from state assisted pension plans. In this area alone, more than 25,000 new customers could be won over for this sort of pension provision. Outside of Austria the premium volume in life insurance rose - among other things due to Claris Vita being accounted for for the first time - by an unusual 471.2% to EUR 235.9 million (excl. savings premium: EUR 185.2 million / +411.0 %). As a result of this development the foreign portion in the life insurance line on an IFRS basis grew from around 6% to its present 23%.
Benefits paid in the health insurance segment were up by 10.8% to EUR 364.2 million, the entire benefits paid including the change in the actuarial provisions rose 30.2% to EUR 957.0 million.
In property and casualty insurance Group premiums written increased by 30.1% to EUR 1,082.9 million. The premium increase in the motor vehicle lines was 21.4% for the entire Group. In Austria the premium volume of EUR 687.3 million corresponds to a 6.3% growth. Outside of Austria property and casualty insurance premiums rose by 113.1% to EUR 395.5 million. In addition to the organic growth of 18.5 % the inclusion of the EUR 164.2 premiums from Mannheimer Versicherung played a major role. The foreign portion is currently at 36.5% after the 22.3% at the middle of last year.
Payments for claim settlements in the property and casualty segment rose disproportionally less by 22.0% to EUR 469.6 million. The entire expenses and benefits paid increased by 33.0% to EUR 543.3 million.
Premium volume written in health insurance was up during the reporting period throughout the Group by 10.0% to EUR 410.8 million. In Austria UNIQA, as the unchallenged market leader, was able to increase health insurance premiums by 3.2% to EUR 348.0 million. Foreign premiums increased by 73.0% to EUR 62.8 million. The first-time inclusion of Mannheimer Krankenversicherung's premiums amounted to EUR 26.1 million which is what makes up the major portion of this increase. The foreign share rose clearly from under 10% to about 15.3%.
Benefits paid in the health insurance segment were up by 3.0% to EUR 308.1 million, the entire expenses and benefits paid including the change in the actuarial provisions rose 12.6% to EUR 379.5 million.
Cost ratio reduced - net income from investments up 32.9%
After successfully reducing operating expenses in Austria in absolute terms, and because the increase abroad remained clearly behind the development in premiums, the cost ratio on a Group level could be reduced by 1.3 percentage points to 21.6%. The reduction in Austria is even more obvious; here the value is at 19.9% after six months compared to 21.6% at midyear last year. Group-wide operating expenses only rose by 18,1% to EUR 428.0 million.
The sum of UNIQA Group's capital investments amounted to EUR 18,513.4 million at the middle of the year; this is 26.3% above the previous year's level. Net investment income could be increased by 32.9% to EUR 443.1 million, among other things due to the pleasing situation on the stock exchange.
Vienna, 31. August 2005