- Volume of premium income (including savings portions from unit-linked and index-linked life insurance) up by 26.9 % to EUR 3,514.7 million
- premiums outside Austria more than double (+107.4 %)
- further drop in Group cost ratio in all segments
- IFRS profit on ordinary activities of EUR 157.8 million (+88 %) after nine months
- profit of EUR 180 million forecast for year as a whole / corresponding to estimated ROE of about 17 % for 2005 (2004: 15.7 %)
The Austrian UNIQA Group succeeded in continuing to post positive, profitable growth in the first three quarters of this year. Strong organic growth and successful acquisitions in Western, Eastern and South-eastern Europe have boosted premium income by 26.9 % (including savings portions from unit-linked and index-linked life insurance), to EUR 3,514.7 million. The strong growth in premiums, the ongoing reduction in the cost ratio, a lesser increase in claim payments and sound returns on investments have resulted in profit on ordinary activities increasing by 88.8 %, to EUR 157.8 million. EUR 41.4 million (+171.8 %) of this figure was contributed by Group companies outside Austria. After deduction of taxes and minority interests, consolidated net profit stood at EUR 100.2 million, representing an increase of 78.6 %. Earnings per share therefore rose to EUR 0.89, representing an increase of 74.5 % on last year's EPS over nine months.
The Austrian companies in the UNIQA Group contributed EUR 2,546.9 million (+10.6 %) to premium income. Excluding the savings portions of unit-linked and index-linked life insurance, this gives a figure of EUR 2,367.0 million, representing a 7.0 % increase on the same period last year. Austria's share in premium income fell from 82.8 % to 72.2 % due to the Group's ongoing globalisation.
The premium income generated by fully consolidated companies outside Austria increased by 107.4 %, to EUR 967.8 million. Excluding the savings portions stemming from unit-linked and index-linked life insurance, the figure was EUR 910.0 million, a 98.2 % increase on the same period last year. Fully consolidated companies' share in Group premiums therefore increased from 17.2 % to 27.8 %. Organic growth of 15.4 % was achieved in these countries, ignoring extensions to the scope of consolidation. The recent purchases in Romania and Bulgaria are not taken into account.
According to Konstantin Klien, Chairman of the Board of UNIQA Versicherungen AG, a listed company, "Our sound organic growth of 11.3 %, the programme aimed at reducing costs and increasing earnings, and the successful integration of newly acquired companies in Western, Eastern and South-eastern Europe were the foundations for our positive growth during the first nine months. We have posted significant growth in all areas and have been able to meet the high expectations. For the year as a whole, we are expecting a profit on ordinary activities of EUR 180 million and an increase in the return on equity of about 17 %, as compared to last year's 15.7 %."
Premium growth in all segments The growth in life insurance has continued unabated. During the first nine months this year, the volume of premium income rose by 42.6 %, to EUR 1,365.3 million, or by 31.0 %, to EUR 1,127.7 million, after the deduction of savings premiums. A large proportion of the growth in Austria - +19.5 %, to EUR 1,067.0 million (excluding savings portions: +10.3 %/EUR 887.1 million)- was again generated by premium-based savings. FinanceLife, the UNIQA Group company specialising in all forms of unit-linked and index-linked life insurance, currently manages about 264,000 contracts, including over 158,000 relating to premium-based savings, making it the clear market leader in Austria. Outside Austria, life insurance premium income increased by 361.3 %, to EUR 298.4 million (excluding savings portions: +321.0 %/EUR 240.6 million). The foreign share of life insurance business (including the savings premiums) therefore stood at 21.9 %, as against 6.8 % for the same period in the previous year.
Life insurance benefits paid out increased by 10.7 % to EUR 522.5 million, and total amount of benefits, including the change in the actuarial provision, stood at EUR 1,335.4 million, 30.6 % up on the figure for the same period last year.
Premium income in the property and casualty insurance segment increased by 21.5 %, to EUR 1,520.8 million, in the first nine months. Group-wide premiums in the motor insurance segments rose by 16 %. In Austria, property and casualty insurance premium income increased by 6.2 % to EUR 957.2 million, and by 61.2 % - to EUR 563.6 million - in the rest of Europe. The foreign share of property and casualty insurance therefore increased from 28.0 % to 37.1 %.
Payments for claims in the property and casualty insurance segment rose by 18.8 % to EUR 733.4 million. At EUR 853.8 million, total amounts of benefits were up by 28.6 %.
Premium income in the health insurance segment rose by 12.3 % to EUR 628.5 million. In Austria, the current premium volume of EUR 522.8 million represents an increase of 3.0 %. Premiums outside the home market increased by 102.7 %, to EUR 105.8 million, partly due to Mannheimer Krankenversicherung being consolidated for the first time. This puts the foreign share at 16.8 % (Q3 2004: 9.3 %).
Claims paid rose by 6.7 % to EUR 469.7 million, while total amount of benefits, including the change in the actuarial provision, increased by 13.2 % to EUR 568.1 million.
Fall in cost ratio - rise in net investment income The cost trend in the UNIQA Group in the first nine months of 2005 was very satisfactory. Despite the increased turnover, the increase in premiums significantly outstripped the rise in total operating expenses (15.5 %, to EUR 648.1 million). At 22.1 %, the cost ratio is therefore 1.5 percentage points below the figure for the first three quarters of 2004. In absolute terms, costs actually decreased on the home market.
UNIQA Group's total investments as at 30 September 2005 stood at EUR 19,207.1 million (+28.4 %). Net income from investments also increased by 32.3 %, to EUR 662.8 million, thanks to the ongoing bullish stock-market trend.
Vienna, 30. November 2005