31.05.2007 |
The embedded value of the UNIQA Group Austria (prior to the deduction of minority stakes) was increased in 2006 by 14.9% to €2,754.9 million (2005: €2,396.7 million). After deduction of the minority stakes, there is a Group embedded value (GEV) of €2,178.3 million, which is 15.6% above the previous year's value (€1884.4 million). This corresponds to an increase of the embedded value per share from €15.7 in 2005 to €18.2 as of 31 December 2006.
For the determination of this amount the life and health insurance business in Italy and life insurance in the Czech Republic, Slovakia and Hungary were considered for the first time. Thus the reporting was expanded considerably and the previous year's values were adapted accordingly for better comparison. The share of the Group companies included for the first time in GEV as of 31 December 2006 was approximately 10% of the GEV (€216 million).
The minority shareholdings to be taken into account in the group embedded value of the UNIQA Group result primarily from the direct participation of the Austria Versicherungsverein Stiftung and the Collegialität VaG in UNIQA Personenversicherung AG as well as from various minority shareholdings in the foreign Group companies included for the first time.
The value of the newly-signed life and health insurance business (new business value - NBV) was €48.0 million in 2006. With an annual premium equivalent (APE) of €237.3 million, this corresponds to a margin of 20.2%.
The increase of embedded value can be traced to several factors. The essential value growth came especially from the significantly-increased value of the total insurance policies in the GEV, which was influenced by the improved interest-rate environment in life insurance and a favourable claims trend in health insurance. In addition, the costs of the options and guarantees included in the products declined significantly due to increased interest rates with simultaneously-lower interest rate volatility.
The embedded value is an indicator of the economic value of the existing insurance portfolio and serves as additional information for shareholders and the financial community. The new business expected in the future does not enter into this perspective and therefore represents an additional contribution to the company value. In accordance with international guidelines, the embedded value is composed of the net assets of the life, health insurance, property and accident insurance as well as the cash value of future income from the existing policy holdings of the life and health insurance.
The embedded value of the UNIQA Group Austria was created on the basis of the principles defined by the CFO forum and audited and confirmed by Deloitte & Touche.
Vienna, 31. May 2007