27.11.2008 |
- Clear increase in premiums at Group level of 12.6%
- Sustained strong growth dynamics in Eastern and South Eastern Europe of + 65.9%
- Reduced loss and cost ratios strengthen healthy technical core business
- Combined ratio (gross) in property and accident insurance reduced to 93.6%
- Profit falls to EUR 104 million based solely on capital market developments
- Reliable profit forecasts are not possible, due to the extremely volatile markets
- Market entry into Russia in 2009
UNIQA Group Austria has succeeded in raising premium growth still further in the first nine months. EUR 4,429 million in premium volume written corresponds to a considerable increase of 12.6% compared to the same period in the previous year. Pronounced growth impulses continue to come from Eastern and South Eastern Europe, where the UNIQA Group increased its premium revenues by 65.9% in the first three quarters, excluding significant consolidation effects due to acquisitions. In combination with simultaneously reduced cost and loss ratios, the UNIQA Group has succeeded in further improving the technical core business and strengthening its overall position for the future. The profit according to IFRS was EUR 104 million after nine months of 2008 and thus around 39% below the adjusted value for the previous year of EUR 170 million (excluding EUR 110 million of extraordinary income from the STRABAG participation).
UNIQA CEO Konstantin Klien comments: "In a difficult environment with increased competition and a weakening economy, we have succeeded in raising growth yet again. The dynamisation projects, especially in Eastern and South Eastern Europe, are producing excellent results, which have allowed us to surpass general market development again by a clear margin. Consequently, the business share of Eastern Europe rose to 21.7%, almost half again as high as one year ago (14.7%). We have also succeeded in strengthening our position further with another reduction in the loss and cost ratios. We have therefore reached our ambitious targets in the technical core business. The fall in profit is due solely to developments on the international capital markets during the second half of the year and the reduced capital income these developments have caused."
Klien on the short and medium-term outlook: "We are currently unable to produce a reliable prognosis for financial year 2008 due to the extreme fluctuations in the capital markets. Profit will probably be below the figure for the previous year, which included high extraordinary incomes from the STRABAG participation. With stabilisation and compensation of current developments in the capital markets nowhere in sight, we have also decided to set aside our medium-term forecast for 2010 until further notice. However, given our good position in twenty European markets and the positive development of our core business, I believe we are well positioned to weather any further weakening in the economy and to participate at an above-average level in the future recovery of the markets. Despite the global financial turbulence, the UNIQA Group is and will remain a strong, reliable partner in Central and Eastern Europe. This applies as much to our customers and partners as it does to our employees and shareholders. It is on the basis of this conviction that we are pushing ahead with our expansion and will also become active in Russia next year following the recently concluded takeover of UNITA, the fourth-largest non-life insurer in Romania."
In the first nine months of the current year, the UNIQA Group succeeded in increasing the consolidated premium volume written (including the savings portion of unit and index-linked life insurance) by 12.6% to EUR 4,429 million (1-9/2007: EUR 3,933 million).
The UNIQA Group experienced massive growth in Eastern and South Eastern Europe in particular, with no significant consolidation effects and a rise in premiums of 65.9% to EUR 960 million (1-9/2007: EUR 579 million). Market share was increased in almost all countries, further improving the basis for profitable developments this growth region. UNIQA achieved its strongest growth in Poland, where premiums rose by 154.9% to EUR 423 million (1-9/2007: EUR 166 million). Above all, the life insurance business and the success in bank sales contributed to this extraordinary growth. The UNIQA companies also grew strongly in all other markets in the region, with the majority of them posting gains in market share.
The volume of business in Western Europe clearly picked up speed and rose by 11.1% to EUR 746 million (1-9/2007: EUR 672 million). Primarily responsible for this was a rapid development in single-premium life insurance deposits in Italy, which led to an overall growth in premiums of 18.9% to EUR 368 million (1-7/2007: EUR 310 million). The UNIQA subsidiaries in Germany also outperformed the market with premium growth of 3.7% to EUR 338 million (1-7/2007: EUR 326 million).
Due to the high premium increases in Eastern and South Eastern Europe, the UNIQA Group has also significantly increased its level of internationalisation to 38.5% (1-9/2007: 31.8%). Eastern and South Eastern Europe alone were responsible for 21.7% (1-9/2007: 14.7%) in the first nine months.
In the core market of Austria, premium volumes written rose despite the difficult market environment by 1.5% to EUR 2,722 million (1-9/2007: EUR 2,682 million).
From a sector perspective, life insurance achieved the strongest growth at 21.0% to reach EUR 1,856 million (1-9/2007: EUR 1,534 million). In property and accident insurance, the premium volume increased by 8.6% to EUR 1,859 million (1-9/2007: EUR 1,712 million). The premium volume written in health insurance rose by 3.9% to EUR 714 million (1-9/2007: EUR 687 million). The highest international share of business was seen again property and casualty insurance at 44.6% (1-9/2007: 40.9%), followed by life insurance at 39.3% (1-9/2007: 26.7%) and health insurance at 21.0% (1-9/2007: 20.5%).
At the same time as achieving increases in premiums, the Group succeeded in holding the increase in costs and benefits below the increases in premiums. The loss ratio across all sectors has therefore been reduced by almost 10 percentage points to 65.9% (1-9/2007: 75.4%). The cost ratio was also reduced across all sectors and the Group-wide figure after the first nine months of this year was 21.8% (1-9/2007: 22.2%). Despite events caused by storms 'Paula' and 'Emma', the combined ratio (gross) in property and casualty insurance fell markedly to a Group-wide figure of 93.6% (1-9/2007: 98.0%). The actuarial results (before investment income) in the non-life sectors also improved - in property and casualty to EUR 49 million (1-9/2007: EUR -19 million) and in health insurance to EUR 17 million (1-9/2007: EUR -25 million).
The level of capital investments fell slightly compared to the previous period to stand at EUR 21,822 million on 30 September 2008 (30 Sept. 2007: EUR 21,943 million). The income (net) from capital investments reduced as a consequence of the general financial market crisis in the first nine months of 2008 to EUR 255 million.
The profit before taxes has fallen to EUR 104 million and is therefore around 39% lower than the figure for the previous year of EUR 170 million, adjusted for the extraordinary income from the STRABAG participation.
Outlook The previously established profit goal for the entire year can no longer be achieved due to the negative developments in the capital markets and as a result of the general economic downturn. Due to the persistently high volatility and uncertainty over the further development of the capital markets, no valid forecasts for financial year 2008 or beyond are possible at this time.
Reservations concerning statements about the future This message contains statements that refer to future developments at UNIQA Group Austria. These statements are appraisals that are made based on all information available to us at the current point in time. If the assumptions on which they are based do not occur, the actual events may vary from the results currently expected. For this reason, we cannot accept liability for these statements.
Vienna, 27. November 2008