“Encouragingly strong premium growth in our two core markets of Austria and CEE, below-average burdens from major losses and storm damage, and good performance on our investments ensured an excellent first quarter of 2024”, says Andreas Brandstetter, CEO of UNIQA Insurance Group. “We are particularly pleased with the high profitability of our international companies, as well as the increasing importance of having good coverage. We see this in health insurance, which grew strongly in the first quarter, and also in the improved development of new business in life insurance”, continues Brandstetter.
Key figures for 1 – 3/2024
The premiums written of UNIQA Insurance Group AG including savings portions from unit-linked and index-linked life insurance rose by 10.9 per cent to €2,184.3 million in the first three months of 2024 compared with the same period of the previous year (1 – 3/2023: €1,969.4 million). Above all, property and casualty insurance and health insurance contributed to this very pleasing growth.
The UNIQA Group’s insurance sales – the insurance revenue in accordance with IFRS 17 – rose by 13.7 per cent to €1,587.9 million in the first quarter of 2024 (1 – 3/2023: €1,396.7 million), to which all business lines and segments contributed: property and casualty insurance grew by 14.5 per cent, health insurance by 16.0 per cent and life insurance by 5.1 per cent. Insurance revenue in Austria rose by 7.8 per cent and gained 22.3 per cent in the international companies.
UNIQA’s insurance service result was €140.4 million (1 – 3/2023: €129.5 million).
Net investment income rose to €237.5 million in the first three months of 2024 (1 – 3/2023: €121.3 million), due in particular to higher current income. The financial result amounted to €70.7 million (1 – 3/2023: €48.6 million) in the reporting period.
The UNIQA Group’s earnings before taxes improved significantly by 16.8 per cent to €145.1 million (1 – 3/2023: €124.3 million). Consolidated profit/(loss) – the proportion of net profit/(loss) for the period attributable to the shareholders of UNIQA Insurance Group AG – increased by 5.9 per cent to €106.9 million (1 – 3/2023: €101.0 million).
The solvency capital requirement ratio in accordance with Solvency II, which is considered to be a measure of capitalisation, was at a high level at UNIQA at around 264 per cent as at the reporting date of 31 March 2024.
Results in the business lines
Property and casualty insurance
The premiums written in property and casualty insurance grew by 13.7 per cent to €1,375.7 million in the first three months of 2024 (1 – 3/2023: €1,210.4 million).
The gross combined ratio in property and casualty insurance fell to 86.7 per cent (1 – 3/2023: 88.7 per cent) due to a lower claims load.
Health and life insurance
In health insurance, growth of 11.8 per cent to €387.1 million in premiums written was recorded in the first quarter of 2024 (1 – 3/2023: €346.2 million).
In life insurance, the premiums written including savings portions from unit-linked and index-linked life insurance increased by 2.1 per cent to €421.4 million in the reporting period (1 – 3/2023: €412.8 million).
New business in health and life insurance remained at a good level in the first three months of 2024. The contractual service margin increased to €5,297.9 million as at 31 March 2024 (1 January 2024: €5,266.3 million). This balance sheet item – new since IFRS 17 – represents the profits expected from insurance contracts in future.
Business outlook
For the 2024 financial year, the last of our “UNIQA 3.0 – Seeding the Future” strategic programme, we are focusing on further improving our core underwriting business in our two home markets of Austria and CEE.
Expectations of strong growth in property and health insurance are based on both targeted sales activities and restatements in connection with inflation and index developments.
However, we continue to anticipate high expenses in the 2024 financial year for benefits in property and health insurance as well as in the general cost area due to inflation. It is therefore crucial to maintain strict cost discipline and continuously optimise cost management.
Based on a solvency ratio of at least 170 per cent, we strive to allow our shareholders to participate progressively in the success of our company, i.e. with annually increasing dividend payments. The payout ratio will remain unchanged at up to 60 per cent.
These forecasts are subject to possible negative influences on our consolidated profit, which may result from geopolitical upheavals and the associated uncertainties for the global capital markets, from a volatile interest rate environment, from the general inflation trend and, above all, from increased claims payments as a result of natural catastrophes. In connection with this, we expect our target profitability to be at the level of 2023.
Clause regarding predictions about the future
This press release contains statements which refer to the future development of UNIQA. These statements present estimations which were reached on the basis of all of the information available to us at the present time. If the assumptions on which they are based do not occur, the actual results may vary from the results currently expected. As a result, no guarantee can be provided for the information given.