Operating segments

UNIQA Austria

  • (including savings portions from unit-linked and index-linked life insurance) rose to €3,734.4 million
  • increased slightly to 18.6 per cent
  • further improved from 91.8 per cent to 91.6 per cent
  • Earnings before taxes of €231.7 million

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UNIQA Austria

in € million

2018

2017

2016

Premiums written including savings portions from unit-linked and index-linked life insurance

3,734.4

3,656.6

3,631.5

Cost ratio (after reinsurance)

18.6%

18.3%

20.0%

Combined ratio (after reinsurance)

91.6%

91.8%

93.7%

Earnings before taxes

231.7

262.5

232.2

Changes in premiums

At UNIQA Austria, premiums written including savings portions from unit-linked and index-linked life insurance increased by 2.1 per cent to €3,734.4 million in 2018 (2017: €3,656.6 million). Recurring premiums rose by 2.2 per cent to €3,707.4 million (2017: €3,629.0 million). In contrast, single premiums fell slightly by 1.9 per cent to €27.0 million (2017: €27.6 million).

Including savings portions from unit-linked and index-linked life insurance, the volume of premiums earned at UNIQA Austria amounted to €3,031.8 million (2017: €2,991.3 million). The volume of premiums earned (net, in accordance with ) rose in 2018 by 1.7 per cent to €2,811.6 million (2017: €2,764.9 million).

While premiums written in property and casualty insurance rose by 5.0 per cent to €1,703.5 million (2017: €1,621.8 million), in health insurance they increased by 3.0 per cent to €1,008.9 million (2017: €979.7 million). In life insurance (including savings portions from unit-linked and index-linked life insurance), they fell by 3.1 per cent to €1,022.0 million (2017: €1,055.2 million).

Premiums written including savings portions from unit-linked and index-linked life insurance UNIQA Austria

In € million

Premiums written including savings portions from unit-linked and indexlinked life insurance UNIQA Austria (bar chart)

In property and casualty insurance, premiums earned (net, according to IFRSs) rose by 3.3 per cent to €1,033.1 million (2017: €999.9 million); in health insurance, they increased by 2.9 per cent to €1,008.1 million (2017: €979.4 million). However, in life insurance, they fell by 2.0 per cent to €770.4 million (2017: €785.7 million). Including savings portions from unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €990.6 million (2017: €1,012.1 million).

Changes in insurance benefits

Net insurance benefits at UNIQA Austria increased by 2.2 per cent to €2,390.3 million in 2018 (2017: €2,339.8 million). In property and casualty insurance, they rose by 2.3 per cent to €691.2 million (2017: €675.8 million) and thus less strongly than premiums earned (net). As a result, the loss ratio in property and casualty insurance fell to 66.9 per cent in the 2018 financial year (2017: 67.6 per cent). The combined ratio after reinsurance improved to 91.6 per cent (2017: 91.8 per cent) in the UNIQA Austria segment. In health insurance, insurance benefits (net) rose by 1.7 per cent to €864.4 million (2017: €849.5 million); in life insurance, they increased by 2.5 per cent to €834.7 million (2017: €814.5 million).

Operating expenses

less reinsurance commission and share of profit from reinsurance ceded, which amounted to €183.2 million (2017: €192.1 million), increased by 3.0 per cent to €564.9 million in the 2018 financial year (2017: €548.3 million) as a result of higher staff and IT costs. In property and casualty insurance, they rose by 5.6 per cent to €255.4 million (2017: €241.8 million). In health insurance, they also grew 9.5 per cent to reach €140.9 million (2017: €128.7 million). In life insurance, however, they decreased by 5.2 per cent to €168.6 million (2017: €177.9 million) as a result of lower expenses for the acquisition of insurance.

The cost ratio of UNIQA Austria after reinsurance, i.e. the ratio of total operating expenses, less reinsurance commission and share of profit from reinsurance ceded, to premiums earned, including savings portions from unit-linked and index-linked life insurance, rose slightly to 18.6 per cent during the past year (2017: 18.3 per cent).

Net investment income

Net investment income in the UNIQA Austria segment dropped in 2018 by 7.5 per cent to €418.3 million (2017: €452.4 million) due to the continuing low interest rate environment and higher volatilities on the international financial markets.

Earnings before taxes

Earnings before taxes at UNIQA Austria fell during the reporting year by 11.7 per cent to €231.7 million (2017: €262.5 million), driven by a lower net investment income. They improved by 2.4 per cent in property and casualty insurance to €112.8 million (2017: €110.2 million). In health insurance, they decreased by 8.4 per cent to €107.0 million (2017: €116.8 million). Lastly, in life insurance, earnings before taxes dropped as well by 66.3 per cent to €12.0 million (2017: €35.6 million).

Earnings before taxes UNIQA Austria

In € million

Earnings before taxes UNIQA Austria (bar chart)

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Property and casualty insurance

in € million

2018

2017

2016

Premiums written

1,703.5

1,621.8

1,568.6

Insurance benefits (net)

–691.2

–675.8

–648.0

Claims rate (after reinsurance)

66.9%

67.6%

68.9%

Operating expenses (net)

–255.4

–241.8

–233.9

Cost ratio (after reinsurance)

24.7%

24.2%

24.9%

Combined ratio (after reinsurance)

91.6%

91.8%

93.7%

Net investment income

39.0

43.0

27.6

Earnings before taxes

112.8

110.2

70.6

Technical provisions (net)

1,090.3

1,056.1

1,012.3

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Health insurance

in € million

2018

2017

2016

Premiums written

1,008.9

979.7

956.3

Insurance benefits (net)

–864.4

–849.5

–821.8

Operating expenses (net)

–140.9

–128.7

–143.1

Cost ratio (after reinsurance)

14.0%

13.1%

15.0%

Net investment income

103.0

117.7

116.1

Earnings before taxes

107.0

116.8

104.6

Technical provisions (net)

3,151.4

3,005.2

2,855.3

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Life insurance

in € million

2018

2017

2016

Premiums written including savings portions from unit-linked and index-linked life insurance

1,022.0

1,055.2

1,106.5

Insurance benefits (net)

–834.7

–814.5

–822.3

Operating expenses (net)

–168.6

–177.9

–212.2

Cost ratio (after reinsurance)

17.0%

17.6%

20.3%

Net investment income

276.3

291.7

316.4

Earnings before taxes

12.0

35.6

57.0

Technical provisions (net)

13,910.8

14,089.6

14,660.8
Premiums written
All premiums due during the financial year arising from insurance contracts under direct insurance business, regardless of whether these premiums relate (either wholly or partially) to a later financial year. This involves (net) premiums written when reduced by the amount ceded to reinsurance companies.
Cost ratio
Ratio of total insurance operations expenses (net of reinsurance commissions received and share of profit from reinsurance ceded) to consolidated premiums earned (including savings portions of unit-linked and index-linked life insurance).
Combined ratio
Total sum of operating expenses and insurance benefits in relation to the (net) premiums earned in property and casualty insurance.
IFRSs
International Financial Reporting Standards. Since 2002 the term IFRSs has applied to the overall concept of standards adopted by the International Accounting Standards Board. Standards already adopted beforehand continue to be referred to as International Accounting Standards (IASs).
Operating expenses
This item includes acquisition expenses, portfolio management expenses and the expenses for implementing reinsurance. The operating expenses remain for the company’s own account following deduction of the commissions and profit participation received from the reinsurance business ceded.