29.11.2000 |
UNIQA Group Austria increased premiums in the first nine months of 2000 by 9.8% to ATS 25.2 billion.
Chairman Herbert Schimetschek: "The pleasing overall development in the Group makes it possible for us to energetically pursue our future orientated strategy at home and abroad. The picture is however spoiled by individual events such as the catastrophical thunderstorms and the imminent additional tax burden on insurance companies".
Investment income increased compared to the previous year, but share development in the fourth quarter burdens further development of investment income The total capital investment income of the UNIQA Group as at end September amounted to - excluding the deposits receivable from the reinsurance business - ATS 145.2 billion (EUR 10.6 billion). Compared to end September 1999, this represents an increase of 6.2 % or ATS 8.5 billion (EUR 615.0 million).
Compared to the same time period the previous year, the investment income of the domestic and foreign Group companies included in the consolidated accounts improved. In the first three quarters of 2000, they were, with ATS 6.7 billion (EUR 484.5 million), 32.4% above the results of 1999, which were however effected by the extraordinary high write-down of fixed interest securities, which only clearly recovered in the fourth quarter of 1999. The current development of the fourth quarter 2000 is marked by a noticeable weakening of the stock market, which will encumber the investment income development in the fourth quarter.
Costs continue to develop moderately In the first three quarters 2000, the total costs (excluding commissions) increased by 6.6% to ATS 3.9 billion (EUR 281,9 million) compared to the same period last year. Commissions developed inline with the premium growth during the reporting period - to about ATS 1.9 billion (EUR 135.0 million) or by 21.3%. Including claims expenses and assets administration costs - excluding costs for social capital reserves - the total operating expenses amounted to ATS 5.7 billion (EUR 416.9 million) in the first nine months of 2000. This was an 11.0% increase compared to the same period last year.
Growth motor life assurance on high revs The continued noticeable expansion of the UNIQA Group continues to be supported to a large extent by the above average positive life assurance development. In the first three quarters 2000, the premiums written climbed clearly by 16.8% to ATS 10.4 billion (EUR 755.8 million). Once again, the extraordinary high rise in single premium business contributed substantially to this result. Connected with the extremely obvious increase in premium income in life assurance, was a decline in paid benefits by 3.1% during the first nine months of the current financial year.
Health insurance on the ascent with increasing benefits In the health insurance the positive trend continued with an increase in premium volume written of 2.6% to ATS 6.6 billion (EUR 476.3 million). The possibility for certain professional workers to choose a private mandatory health insurance since the beginning of the year continued to provide a positive impulse. Opposing the upward trend on premium contribution is an above proportional increase in benefits paid. In the first three quarters 2000, the paid benefits in health insurance increased by 9.6% to ATS 5.4 billion (EUR 391.2 million); there was, however, a decrease in benefits paid in the comparable period the previous year. As a result of the increase in benefit payments in health insurance, an increase in the benefits ratio of about 2.0% is expected for the whole year 2000.
Natural phenomena burden the property and casualty insurance Considering Assicurazioni "La Carnica" S.p.A., Udine, acquired in April 2000, the premiums written volume in direct business in the property and casualty insurance increased by 7.3% to ATS 6.0 billion (EUR 436.0 million Euro). The benefits paid increased as a result of the large claims relating to the weather and a dramatic growth in the number of claims in the motor vehicle insurance by 12.7% to ATS 32 billion (EUR 235.0 million). In property insurance, the continuing predatory competition is noticeable across all lines. Especially difficult is, as before, the structural requirements in the motor vehicle insurance. Thus, the premiums increased by 1.3% whilst the number of policies increased by 8.9% during the same time. Reconstruction measures in the motor vehicle insurance belong to the most important tasks in the next months.
Outlook At the end of the third quarter, the Ministry of Finance presented the proposed measures to reconstruct the federal budget. Planned therein are incisive burdens for the insurance industry. According to the present status, a higher tax burden of the actuarial reserves is scheduled; the planned measures will affect the property and casualty insurance line in particular. The resulting burdens therefrom are in stark contrast to the profit development in the property and casualty insurance. This would be an important competitive disadvantage for the Austrian insurance companies and would substantially influence the premium composition.
From today's point of view, allowing for the extraordinary claims burden from natural phenomena and the exceptional development of the stock market, an encumbrance of the Group results is anticipated unless the capital markets stabilise towards the year end and the stock markets recover.
Supervisory Board decisions The Supervisory Board of the UNIQA Versicherungen AG decided to conclude profit and transfer loss agreements with both 100% subsidiaries, UNIQA Sachversicherung AG und Raiffeisen Versicherung AG, effective for the current financial year. Through these measures, the industry-conditioned fluctuations can accordingly be centralised and stabilised at the Holding level. So far, an administrative unit existed with both companies.
Vienna, 29. November 2000