Segment reporting

Operating segments

The accounting and valuation methods of the segments that are subject to mandatory reporting correspond with the consolidated accounting and valuation methods. The earnings before taxes for the segments were determined taking the following components into consideration: summation of the IFRS profits in the individual companies, taking the elimination of investment income in the various segments and impairment of goodwill into consideration. All other consolidation effects (profit/(loss) for the period at associates, elimination of interim results, and other overall effects) are included in “Consolidation”. The segment profit/(loss) obtained in this manner is reported to the Management Board of UNIQA Insurance Group AG to manage the Group in the following operating segments:

UNIQA Austria – includes the Austrian insurance business.
UNIQA International – includes the Austrian holding companies UNIQA International AG and UNIQA Internationale Beteiligungs-Verwaltungs GmbH in addition to all foreign insurance companies (with the exception of UNIQA Re AG). This segment is divided into the following main areas on a regional basis:
- Western Europe (WE – Switzerland and Liechtenstein)
- Central Europe (CE – Czech Republic, Hungary, Poland and Slovakia)
- Eastern Europe (EE – Romania and Ukraine)
- Southeastern Europe (SEE – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Montenegro, Macedonia, Serbia and Kosovo)
- Russia (RU)
- Administration (Austrian holding companies)
Reinsurance – includes UNIQA Re AG (Zurich, Switzerland), UNIQA Versicherung AG
(Vaduz, Liechtenstein) and the reinsurance business of UNIQA Insurance Group AG.
Group functions – includes the remaining items for UNIQA Insurance Group AG (investment income and administrative costs) as well as all other remaining Austrian and foreign service companies.

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In € thousand	UNIQA Austria		UNIQA International		Reinsurance		Group function		Consolidation		Group
In € thousand	1–12/2017	1–12/2016	1–12/2017	1–12/2016	1–12/2017	1–12/2016	1–12/2017	1–12/2016	1–12/2017	1–12/2016	1–12/2017	1–12/2016
Premiums written (gross), including savings portions from unit-linked and index-linked life insurance	3,656,609	3,631,453	1,608,517	1,399,890	1,091,601	1,130,795	0	0	–1,063,422	–1,113,928	5,293,305	5,048,210
Premiums earned (net), including savings portions from unit-linked and index-linked life insurance	2,991,320	2,941,445	1,139,869	962,994	1,003,018	1,022,692	0	0	–30,065	–99,436	5,104,143	4,827,696
Savings portions in unit-linked and index-linked life insurance (gross)	231,806	246,038	249,833	159,060	0	0	0	0	0	0	481,639	405,097
Savings portions in unit-linked and index-linked life insurance (net)	226,377	225,666	249,833	159,060	0	0	0	0	0	0	476,210	384,725

Premiums written (gross)	3,424,803	3,385,416	1,358,684	1,240,830	1,091,601	1,130,795	0	0	–1,063,422	–1,113,928	4,811,666	4,643,113

Premiums earned (net)	2,764,943	2,715,779	890,037	803,935	1,003,018	1,022,692	0	0	–30,065	–99,436	4,627,933	4,442,970
Premiums earned (net) – intragroup	–630,645	–635,317	–365,299	–332,689	1,026,009	1,067,442	0	0	–30,065	–99,436	0	0
Premiums earned (net) – external	3,395,588	3,351,096	1,255,336	1,136,624	–22,991	–44,750	0	0	0	0	4,627,933	4,442,970
Technical interest income	319,216	306,825	27,884	26,510	0	0	0	0	0	0	347,100	333,334
Other insurance income	4,777	2,908	19,524	16,106	354	442	505	6,157	–2,866	–1,776	22,293	23,837
Insurance benefits	–2,350,739	–2,292,130	–537,625	–484,946	–692,482	–694,723	8,414	7,708	13,783	78,525	–3,558,650	–3,385,566
Operating expenses	–548,346	–589,244	–355,974	–336,156	–320,192	–330,527	–55,345	–49,634	3,884	19,166	–1,275,974	–1,286,394
Other technical expenses	–29,065	–26,285	–31,329	–33,256	–11,629	–9,124	–1,200	–313	16,735	14,656	–56,488	–54,321
Technical result	160,785	117,853	12,517	–7,807	–20,931	–11,240	–47,625	–36,081	1,470	11,135	106,215	73,861

Net investment income	462,399	460,087	71,452	63,542	31,005	29,923	204,887	152,773	–208,807	–117,433	560,937	588,892
Income from investments	792,856	750,722	100,097	86,875	43,574	35,308	304,769	389,528	–261,197	–320,992	980,100	941,441
Expenses from investments	–344,031	–302,543	–28,829	–23,333	–12,570	–5,386	–102,987	–238,440	19,063	178,540	–469,354	–391,162
Financial assets accounted for using the equity method	13,573	11,909	184	0	0	0	3,106	1,685	33,327	25,020	50,190	38,614
Other income	1,776	7,914	13,790	21,091	4,472	1,844	20,425	10,896	–3,815	823	36,649	42,569
Reclassification of technical interest income	–319,216	–306,825	–27,884	–26,510	0	0	0	0	0	0	–347,100	–333,334
Other expenses	–16,573	–22,543	–19,472	–14,185	–6,122	–2,356	–21,385	–8,989	7,102	–5,072	–56,451	–53,145
Non-technical result	128,386	138,633	37,886	43,939	29,355	29,410	203,927	154,680	–205,520	–121,681	194,035	244,982

Operating profit/(loss)	289,171	256,487	50,403	36,132	8,424	18,170	156,302	118,599	–204,050	–110,546	300,250	318,842
Amortisation of goodwill and impairment losses	–2,478	–3,470	–2,561	–22,362	0	0	0	0	0	0	–5,039	–25,832
Finance costs	–25,083	–20,787	–5,037	–719	–2,900	–79	–64,921	–67,456	44,925	21,563	–53,017	–67,477
Earnings before taxes from continuing operations	261,610	232,230	42,804	13,051	5,524	18,091	91,381	51,143	–159,125	–88,983	242,194	225,533

Combined ratio (property and casualty insurance, after reinsurance)	91.8%	93.7%	97.1%	99.2%	100.7%	100.0%	n/a	n/a	n/a	n/a	97.5%	98.1%
Cost ratio (after reinsurance)	18.3%	20.0%	31.2%	34.9%	31.9%	32.3%	n/a	n/a	n/a	n/a	25.0%	26.6%

Associates

Associates are all the entities over which UNIQA has significant influence but does not exercise control or joint control over their financial and operating policies. This is generally the case as soon as there is a voting share of between 20 and 50 per cent or a comparable significant influence is guaranteed legally or in practice via other contractual regulations.

Reinsurance

An insurance company insures part of its risk via another insurance company.