17.11.2021 |
- Premiums written grow by 18.0% to EUR 4,827.2 million
- Combined ratio improves from 95.9% to 94.2%
- Investment income up at EUR 417.8 million
- Consolidated profit increases to EUR 235.8 million
- Solvency II ratio still around 197%
- Positive outlook confirmed for 2021 as a whole
With premiums written of EUR 4,827.2 million and earnings before taxes of EUR 298.7 million, UNIQA Insurance Group AG (UNIQA) has brought the third quarter of 2021 to a successful conclusion as well following the first half of the year. “As in the first half of the year, our consistently excellent business performance in the first nine months of this year as well is based on a gratifying underwriting performance and the anticipated positive effects of the successful integration of the former AXA companies in CEE,” said Andreas Brandstetter, CEO of UNIQA Insurance Group AG.
Despite heavy costs caused by storm damage especially in the summer months – in Austria and Czechia – of approximately EUR 200 million (gross), the combined ratio improved to 94.2%. “Thanks to the excellent performance in the first nine months of the current year – the first year in which our UNIQA 3.0 corporate strategy has been implemented – we have already laid a solid foundation for our ambitious growth targets,” Brandstetter continued. The company is continuing to focus on average annual premium growth of 3%, a further reduction in the cost ratio, a sustainable improvement in the combined ratio to around 93% by 2025 and a return on equity consistently above 9% as the basis for progressive dividend growth.
“Under our strategy for the years 2021 to 2025, ‘UNIQA 3.0 – Seeding the Future’, we are pursuing the paramount vision of significantly improving the health and wellbeing of our customers. However, our responsibility as a European insurance provider goes much further than this: We wish to enhance our relevance and effectiveness with an explicit focus on customers, comprehensive investment in digital transformation, IT and data, the prioritisation of innovation, the transformation of our corporate culture and the continuous development of healthcare services beyond those of a mere insurance company. An unfailingly strong capital position and excellent earnings capability make this possible for our customers, our owners and for our employees,” added Brandstetter. Furthermore, with its goal of climate neutrality by 2040, UNIQA is clearly committed to sustainability in all areas: UNIQA is the only insurance provider in Austria to date to have entered into a strategic partnership – in addition to a number of other memberships and cooperations – with the leading Net Zero Asset Owner Alliance, and has thus undertaken to provide detailed reporting on its progress in the field of sustainable investment.
Key Group figures January to September 2021 in detail
Premiums written by the UNIQA Group, including the savings portion of unit- and index-linked life insurance, rose by 18.0% to EUR 4,827.2 million in the first three quarters of 2021 as a result of the first-time consolidation of the former AXA companies in CEE (January to September 2020: EUR 4,091.2 million). While the recurring premiums this includes grew by 17.4% to EUR 4,724.5 million (January to September 2020: EUR 4,024.6 million), single premiums in life insurance rose by 54.1% to EUR 102.7 million (January to September 2020: EUR 66.7 million). Retained premiums earned (in accordance with IFRS) increased by 16.5% to EUR 4,257.1 million (January to September 2020: EUR 3,653.2 million).
Premiums written in property and casualty insurance rose by 20.7% to EUR 2,685.3 million in the first nine months of 2021 (January to September 2020: EUR 2,224.6 million). Retained premiums earned in this segment rose by 17.7%. Premiums written in health insurance rose by 4.1% to EUR 918.7 million in the reporting period (January to September 2020: EUR 882.8 million). Retained premiums earned in health insurance (in accordance with IFRS) grew by 3.4%. In life insurance, premiums written, including the savings portion of unit- and index-linked life insurance, increased by a total of 24.3% to EUR 1,223.2 million in the first nine months of 2021 (January to September 2020: EUR 983.8 million). The key driver behind this performance was the first-time consolidation of the former AXA companies in Poland, Czechia and Slovakia.
Internationally, premiums written, including the savings portion of unit- and index-linked life insurance, increased by 61.3% to EUR 1,822.3 million in the first nine months of 2021 (January to September 2020: EUR 1,129.9 million) as a result of the first-time consolidation of the former AXA companies. The international companies thus contributed 37.8% of total Group premiums in the first three quarters of 2021 (January to September 2020: 27.6%).
In Austria, premiums written, including the savings portion of unit- and index-linked life insurance, rose by 1.8% to EUR 2,991.3 million in the first nine months of 2021 (January to September 2020: EUR 2,938.0 million).
The total retained insurance benefits of the UNIQA Group increased at a slower rate than the growth in premiums earned in the first three quarters of 2021, rising by 14.0% to EUR 3,085.4 million (January to September 2020: EUR 2,705.4 million).
Total operating expenses less reinsurance commission received climbed by 13.4% to EUR 1,186.7 million in the first nine months of 2021 (January to September 2020: EUR 1,046.8 million). Acquisition expenses increased by 12.5% to EUR 748.8 million (January to September 2020: EUR 665.7 million). Other operating expenses (administration costs) rose by 14.9% to EUR 437.9 million in the first three quarters of 2021 as a result of the first-time consolidation of the former AXA companies in CEE (January to September 2020: EUR 381.1 million). This includes costs in conjunction with the innovation and investment programme of around EUR 35 million (January to September 2020: around EUR 43 million).
The total cost ratio – the ratio of total operating expenses to premiums earned including the net savings portion of the premiums from unit- and index-linked life insurance – less reinsurance commission received decreased to 26.4% (January to September 2020: 27.0%). The combined ratio after reinsurance in property and casualty insurance improved to 94.2% (January to September 2020: 95.9%).
Investment income increased by 5.0% to EUR 417.8 million in the first three quarters of 2021 (January to September 2020: EUR 397.8 million). While write-downs on shares and fixed-income securities weighed on investment income in first nine months of 2020, UNIQA generated gains on the disposal of shares and fixed-income securities in a strong capital market environment in the first nine months of 2021. Investment income was negatively affected by currency effects of around EUR 14 million.
The UNIQA Group’s investment portfolio contracted slightly as against the end of the previous year to EUR 21,976.6 million as at 30 September 2021 (31 December 2020: EUR 22,319.2 million).
The UNIQA Group’s underwriting result rose by 51.4% to EUR 189.2 million in the first three quarters of 2021 (January to September 2020: EUR 124.9 million), predominantly on account of the improved profitability in property and casualty insurance. Operating earnings grew by 49.0% to EUR 390.4 million (January to September 2020: EUR 262.0 million). The UNIQA Group’s earnings before taxes increased accordingly by 39.7% to EUR 298.7 million (January to September 2020: EUR 213.8 million).
Consolidated net profit (net profit for the period attributable to the shareholders of UNIQA Insurance Group AG) also rose by 41.7% to EUR 235.8 million (January to September 2020: EUR 166.5 million). Earnings per share amounted to EUR 0.77 (January to September 2020: EUR 0.54).
The equity attributable to the shareholders of UNIQA Insurance Group AG declined slightly to EUR 3,372.8 million as at 30 September 2021 (31 December 2020: EUR 3,450.1 million). The solvency II ratio was 197% as at 30 September 2021 (31 December 2020: 170%).
The average number of employees at the UNIQA Group increased to 14,681 in the first nine months of 2021 as a result of the first-time consolidation of the AXA CEE companies (January to September 2020: 12,776).
Outlook
Thanks to improved profitability in core underwriting business, earnings before taxes are expected to amount to between EUR 330 million and EUR 350 million for 2021.
Forward-looking statements
This press release contains statements concerning UNIQA’s future development. These statements are estimates based on all the information available to us at the current time. If the assumptions on which they are based do not occur, the actual results may deviate from the results currently expected. No guarantee can therefore be given for this information.