31.08.2006 |
- IFRS Profit on Ordinary Activities 31.3% higher than the previous year at EUR 112.0 million
- Profit for the period (after tax) up 35.3% to EUR 87.3 million
- Profit forecast for 2006 confirmed up 20% to around EUR 228 million and well-covered by half-year results
- Premiums earned (incl. savings portions) up by 8.3% to EUR 2,355 million
- Loss expenses and benefits paid up only slightly (+2.0%) despite bad weather
The UNIQA group has produced a clear increase in profits in the first half of 2006. Profit on ordinary activities reached EUR 112.0 million, rising by 31.1% compared to the previous year. Expectations of an increase in profits of 20% to around EUR 228 million for financial year 2006 can therefore be confirmed, subject to the absence of any significantly negative influences by the capital market or extraordinary loss events, and is also well-covered following the results of the first 6 months. Even more significant than the profit on ordinary activities, the profit for the period (after tax) rose by 35.5% to EUR 87.3 million. Premiums earned (including the savings portion of fund and index-linked life insurance products) were 8.3% higher than the previous year after the first six months of the current financial year at EUR 2,355.0 million. By comparison, total loss expenses and benefits paid increased by only 2.0% to EUR 1,917.7 million, despite heavy snow and flooding. The pleasing development on the cost side also continued with a reduction in the cost ratio from 21.6% (1-6/2005) to 21.1%.
According to UNIQA chairman Dr. Konstantin Klien, "The results for the first six months reconfirm our path of high earnings and sustained growth, as does the well-covered expectation of a 20% increase in profit to around EUR 228 million for the whole of 2006. Following 2005, all companies in Western, Eastern and South-Eastern Europe included in the half-year report have again made a positive contribution to the results, attaining a share of 28.8% in profit on ordinary activities with EUR 32.3 million (+16.0%). We also increased our pre-tax profit sharply by 38.4% to EUR 79.7 million in our core market of Austria. I view the successfully lowered cost ratios at home and abroad, as well as a pleasing Combined Ratio (before reinsurance) of 97.2%, despite losses due to bad weather, as forming a good basis for the ongoing positive development of the UNIQA group this year."
In total, premiums earned of the UNIQA group (incl. the savings portion) increased by 8.3% to EUR 2,355.0 million in the first half of 2006. The group companies in Austria contributed EUR 1,617.1 million (+1.5%), while fully-consolidated companies abroad successfully increased their premium volume by 26.6% to EUR 737.9 million. The overseas portion is therefore currently 31.3% compared to 26.8% in the middle of last year. The premiums of companies in Eastern and South-Eastern Europe attained an increase of 27.1% to EUR 236.2 million. The success of the niche strategy pursued by UNIQA in Germany, Italy, Switzerland and Liechtenstein is seen in the high growth of premiums of 26.4% to EUR 501.7 million.
The group premium written, including the savings portion, at mid-2006 is EUR 2,682.9 million and therefore 7.9% higher than the previous year.
The increase in total loss expenses and benefits paid of 2% to EUR 1,917.7 million is much lower than the increase in premiums. This can be traced to the successful implementation of measures to reduce expenses in all three segments. The total insurance benefits of the foreign group companies in the first half of 2006 were 21.3% higher compared to the previous year, at EUR 494.5 million. In Austria, total loss expenses and benefits paid fell by 3.3% to EUR 1,423.2 million.
Compared to the increase in premiums, total operating expenses increased marginally in the first two quarters of 2006 by 5.7% to EUR 495.8 million. In Austria, the increase was just 0.9%, while abroad the cost increase of 16.8% was held clearly below the growth in premiums. As a consequence of the successful cost reduction programme, the cost ratio fell from 21.6% to 21.1%.
Total investments of the UNIQA group amounted to EUR 19,807.0 million up to 30 June 2006. This corresponds to an increase of 7.0% over the last 12 months. Net capital income was EUR 437.7 million to mid-2006. The 3.8% deterioration is due to lower profits from disposals.
Segments In life insurance, premiums earned, including the savings portion from the premiums of unit- and index-linked life insurance, rose by 10.0% to EUR 1,058.0 million. In Austria, premiums were the same as the previous year at EUR 742.1 million (+0.2%). Group companies in Central Europe increased the premium volume by a very pleasing 42.6% to EUR 316.0 million. As a result of this development, the overseas portion increased to 29.9%.
Premium-subsidised future pensions also continue to develop very pleasingly. FinanceLife - which manages fund and index-linked life insurance within the UNIQA group - administrates 255,139 policies in premium-subsidised future pensions. So far this year alone, 28,315 new customers have been acquired for this pension variant, and the UNIQA group has further expanded its clear market leadership in this segment.
The premiums earned in property and casualty insurance during the first six months of 2006 increased by 6.2% to EUR 855.5 million. In Austria, premiums increased by 3.0% to EUR 522.4 million; at the group companies abroad, they increased by 11.6% to EUR 333.0 million. The overseas portion is therefore already at 38.9%. Despite the impact of heavy snow and flooding, it was possible to hold the Combined Ratio (gross) at the pleasing level of 97.2%.
In health insurance, premiums earned increased by 8.3% to EUR 441.4 million. In Austria, the premium volume of EUR 352.5 million corresponds to growth of 2.3%. Due to the strong rise in premiums earned outside Austria (EUR 88.9 million / +41.1%), the overseas portion grew to 20.1% (in 2005, premiums of Mannheimer Health Insurance were only taken into consideration from the second quarter).
Vienna, 31. August 2006