25.05.2012 |
The information in this press release is not intended for publication in or tansmission to or within the United States of America, Australia, Canada or Japan.
- Profit on ordinary activities increased by 20.2% to €54.4 million
- Group profit up 13.8% to €30.4 million
- Recurring premiums increased by 2.6% to €1,614.1 million
- PIIGS exposure reduced by 43% to €1,166 million compared with 31 December 2011
UNIQA Group increased profit on ordinary activities in the first quarter of 2012 by 20.2% to €54.4 million (Q1 2011: €45.2 million). Group profit (after taxes and minority interests), at €30.4 million, exceeded the previous year by 13.8% (Q1 2011: €26.7 million).
The positive earnings development is based on a solid core operating business: Recurring premiums - including the savings portions of unit- and index-linked life insurance - rose by 2.6% to €1,614.1 million (Q1 2011: €1,573.1 million), and in the growth markets in Central and Eastern Europe by 11% to €306.6 million (Q1 2011: €276.1 million).
Total premiums written - including the savings portions of unit- and index-linked life insurance - fell by 5.4% to €1,703.5 million (Q1 2011: €1,799.9 million). This is due primarily to the industry-wide downturn in single premiums in life insurance across all markets, particularly in Austria and Italy. In Poland, UNIQA is consciously reducing single premium business and is promoting more profitable business areas which also tie up less risk capital. The Annual Premium Equivalent (APE) rose by 1.7% in the 1st quarter of 2012 to €1,623 million (Q1 2011: € 1,595.7 million). To calculate the premiums written, 10% of the single premiums are taken into consideration in the APE calculation since the average term of the single premiums in Europe is 10 years. Annual fluctuations are evened out in this calculation.
Due to the ongoing good claims development in the area of property and casualty insurance and the reduced payments for claims incurred in life insurance, retained insurance benefits decreased by 5.3% to €1,044 million (Q1 2011: €1,102.7 million). The claims and benefits ratio increased across all insurance lines by 1.9 percentage points to 74.8% (Q1 2011: 72.9%).
The loss ratio after reinsurance in property and casualty insurance improved slightly to 66.5% (Q1 2011: 66.6%).
The loss ratio in health insurance increased by 1.2 percentage points to 90.4 % (Q1 2011: 89.2 %), whereby the loss ratio in the 1st quarter is always disproportionately high.
Operating expenses (including reinsurance commission and profit shares from reinsurance business) fell by 2.7% to €353.4 million (Q1 2011: €363.2 million). While acquisition expenses (sales costs) increased by 4.2 % to € 258.8 million (Q1 2011: € 248.3 million), other operating expenses excluding reinsurance commission received (administration costs) decreased by 17.7 % to € 94.6 million (Q1 2011: €114.9 million).
The Group cost ratio after reinsurance rose to 25.3% (Q1 2011: 24%) due to the decline in premiums written. On an APE basis, the cost ratio fell to 26.9 % (Q1 2011: 27.8 %).
The combined ratio after reinsurance in property and casualty insurance dropped marginally to 100.7% (Q1 2011: 100.9%) due to the improved claims history. Before taking reinsurance into account, the combined ratio decreased to 97.2% (Q1 2011: 99.5%).
Investments including unit- and index-linked life insurance increased as of 31 March 2012 compared with 31 December 2011 by 4.3% to €25,661.4 million (31 December 2011: €24,601.1 million). Net investment income rose by 19.5% to €209.3 million (Q1 2011: €175.1 million) due to the development on the capital markets.
The total equity of UNIQA Group climbed by 17.3% compared with 31 December 2011 to €1,285.4 million (31 December 2011: €1,095.6 million) due to the Group profit and the development on the capital markets. Compared with the first quarter 2011 it fell by 17% (Q1 2011: €1,547.8 million).
UNIQA Group significantly improved its risk position and reduced its portfolio of government securities in the PIIGS countries (Portugal, Italy, Ireland, Greece and Spain) by 43% in the 1st quarter: From a nominal value of €2,045 million as of 31 December 2011 to a value of €1,166 million as of 31 March 2012. The majority of the remaining portfolio consists of investments in Italy (€634 million), which have a direct relation to UNIQA's Italian life insurance business.
The average number of employees in the UNIQA Group increased in the 1st quarter of 2012 to 15,153 (Q1 2011: 15,025). Of this figure, 6,192 (Q1 2011: 5,840) were employed in sales. The number of employees in administration fell to 8,961 (Q1 2011: 9,185).
The development of Group embedded value in financial year 2011
The Group embedded value of UNIQA Group decreased by 28% in the financial year 2011 due to the interest rate situation and the associated higher costs for options and guarantees, as well as the volatility on the financial markets. In total, UNIQA Group had Market Consistent Embedded Value (MCEV) of €1,995 million in 2011 (2010: €2,759 million). After deducting the minority interests, the Group embedded value amounted to €1,467 million (2010: €2,159 million).
The MCEV, which is calculated based on international guidelines, represents the value of the insurance policy portfolio and is composed of the net assets for life, health and property/casualty insurance as well as the current value of future income from the existing life and health insurance portfolio. This calculation took into account the life and health insurance business of UNIQA Group in Austria, Italy, Slovakia, Hungary, Poland, the Czech Republic and Germany was taken into account.
The MCEV of UNIQA Group was fully confirmed by B & W Deloitte GmbH, Cologne.
Legal notices
This announcement contains statements which refer to the future development of the UNIQA Group. These statements are appraisals that are made based on all information available to us at the current point in time. Should the assumptions underlying this information not come to pass, the actual results could vary from the results currently expected. For this reason, we cannot accept liability for these statements.
T his information neither contains an offer, nor is it a request or an invitation to make an offer to purchase or to issue shares in UNIQA Versicherungen AG. A public offer of shares in UNIQA Versicherungen AG may only be made in Austria after publishing a prospectus compiled in accordance with the conditions of the Capital Market Act. Any purchase order relating to shares in UNIQA Versicherungen AG that are received before the beginning of a public offer shall be rejected. If a public offering is to take place in Austria, a prospectus shall be prepared in accordance with the Capital Market Act and be made available at no cost at the headquarters of the company during normal working hours.
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Vienna, 25. May 2012