31.05.2007 |
- Operating profit and profit before taxes each increased by more than 40%
- Net profit (Group profit) increased by approximately 65%
- Earnings per share of 39 cents, more than 65% above the previous year's value
- Strong growth of recurring premium payments
- Eastern Europe as growth driver
- Profit-oriented reduction of single premium business in life insurance
In the first quarter of 2007, the UNIQA Group Austria confirmed its constant increase of profits once again and achieved a profit before taxes of €63.2 million. This corresponds to an increase of 40.4% as compared to the previous year. As a consequence of a significant profitability increase and improvements in the technical core business, Group profits increased by 65.4% to €46.0 million. The earnings per share of 39 cents are 65.4% above the value from the same period of the previous year. This trend was driven by a solid premium trend which concentrated on high-margin areas and a - despite the storm damage - further improved operating profit of €72.2 million (+40.8%).
Recurring premium business very satisfactory, single premium policies reduced for reasons of profitability In the area of recurring premium products (incl. the savings portions of premiums from the fund and index-linked life insurance), the UNIQA Group achieved a business volume of €1,328.8 million, an increase of 4.9%. The single premiums, by contrast, were reduced significantly due to special effects in Italy and especially due to the insufficient profitability of this product group in the current market environment. The premium volume from single premiums declined as a result of this decision by 49.4% to €110.7 million. In total, the premiums written were therefore reduced by 3.1% to €1,439.6 million.
On the regional level, the Eastern European markets continue to show the strongest growth impulses with a premium increase of 15.8% to €187.8. In Austria too, the companies of the UNIQA Group succeeded, despite the continued high expirations in bank sales and the strategic reduction of single premiums, in increasing the total premium volume slightly by 0.7% to €1,016.2 million. Due to a special situation in Italy - where in the previous year the life insurance business showed extraordinarily high premium growth - the premiums in Western Europe declined in total by 25.2% to €235.6 million.
In property and casualty insurance, the UNIQA Group was able to increase premiums by 4.3% to €720.7 million. This trend was dominated by strong growth impulses from Eastern Europe with a premium increase of 14.6% to €133.0 million. Also on the ripe markets of Western Europe and Austria marked by increased competition, the UNIQA Group succeeded in increasing premium volume - in Austria by 1.8% to € 443.4 million and on the Western European markets by 3.7% to €144.3 million. Overall, the share of the international business in property insurance is thus 38.5%.
In life insurance, the Group premiums from recurring premium business increased by 7.4% to €368.8 million. The 49.4% reduction of single premiums to €110.7 million due to the stronger focus on profitability caused a decline of the total premium volume in life insurance of 14.8% to €479.5%. In Austria, revenue from contracts for recurring premiums was increased by 5.6% to €320.7 million. Despite the 24.6% reduction of single premiums to €66.6 million, the overall life insurance premiums declined in Austria by just 1.2% to €387.3 million. Significant growth impulses came from the unit-linked life insurance with a premium increase of 24.9% to €118.4 million. In Eastern and South-Eastern Europe, the continued stable growth trend in life insurance caused a premium increase of 17.4% to €53.8 million. On the Western European markets, the premiums, as a result of the special situation in Italy, declined by 69.3% to €38.3 million, whereby in the second quarter there was already a significant increase in the trend.
The premium volume written in health insurance increased on the Group level by 2.7% to €239.3 million. In Austria, growth of 2.1% to €185.5 million was achieved, in the international regions the premiums increased by 5.0% to €53.9 million.
Improved claims and loss ratios In the first three months of 2007, the UNIQA Group also succeeded in reducing the claim and loss ratios. Overall, the expenditures for claims and benefits could be reduced Group-wide, despite the damages from the storm "Kyrill", by 15.8% to €896.1 million. The combined ratio (net) in property and casualty insurance was improved significantly and, after the first three months of 2007, is 98.8%. Adjusted for the storm damages, the value is 96.8%.
Investments and own funds increased On 31 March 2007, the investments of the UNIQA Group, at €21,606.0 million, were 9.7% higher or €1,916.8 million more than the comparative value from the previous year. Total own funds increased in the three months since the balance sheet closing date by 5.8% to €1,406.4 million.
Earnings preview for 2007 without special effects unchanged at approximately €270 million In the course of the profitability improvement programme, the UNIQA Group is planning a sustained increase of Group profits to €430 million by 2010. For 2007, the planned profits - without special influences from the stake in STRABAG SE - are approximately €270 million.
Reservations concerning statements about the future This message contains statements that refer to future developments in the 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, 31. May 2007