42. Capitalisation

As Solvency II came into force on 1 January 2016, the definitions and methods used to calculate available own funds, as well as capital requirements and management standards, have been replaced by Solvency II standards.

Statutory requirements

Risk capital requirements and available own funds have been calculated according to Solvency II regulations since 1 January 2016.

Internal capital adequacy

UNIQA defines risk appetite on the basis of the economic capital model (ECM). Based on this model, we are aiming for a risk capital cover (capital ratio) of between 155 per cent and 190 per cent. Details for the reporting date of 31 December 2018, including a detailed analysis of changes, can be found in the Group Economic Capital Report.

Standard and Poor’s model

UNIQA also takes the potential impact on the rating by recognised rating agencies into account in the capital management process. S&P currently applies a credit rating of “A–” to UNIQA Insurance Group AG. In the S&P capital model, however, UNIQA achieves significant surplus coverage for the current level. UNIQA assumes that it will secure its surplus coverage of the AA level at a minimum in the long term and will also improve the rating in line with the corporate strategy as a result.

UNIQA Österreich Versicherungen AG and UNIQA Re AG each have a rating of “A”; UNIQA Versicherung AG in Liechtenstein is rated with “A–”. The supplementary capital bonds issued in 2013 (€350.0 million Tier 2, First Call Date: 31 July 2023) and subordinated capital bond issued in 2015 (€500.0 million Tier 2, First Call Date: 27 July 2026) are rated “BBB” by Standard & Poor’s. Standard & Poor’s rates the outlook for all the companies as stable.