Strong prescence in Central, Eastern and
South Eastern Europe
Expansion strategy is continued
The UNIQA Group’s strategic goal remains the consolidation of its strong position in Central and Eastern European markets and further expansion in proportion to the available capital. The Group is solidifying its successful business in the nearly saturated markets of Austria and Central Europe and, at the same time, is actively taking advantage of the ripe opportunities in the countries of the Central, Eastern and South Eastern European region with its population of about 350 million. The increasingly pronounced diversification by regions, products and also sales channels has not only brought UNIQA a greater spread of risk, it also harbours additional potential for actually achieving the desired growth.
Strong in Central and Eastern Europe
After eleven years of aggressively pursuing its strategy of internationalisation, UNIQA has become a significant market player in Central, Eastern and South Eastern Europe: With over 40 insurance companies in a total of 21 markets, a premium revenue of more than €6.2 billion and capital investments of more than €24 billion, UNIQA has achieved a respectable position in this attractive and fast-growing region. The two expansion steps in banking cooperations have borne significant fruit in 2010 – the foundation of Raiffeisen Life in Moscow, and the enhancement of cooperation with the Veneto Banca Group in Italy.
The severe weather warning service
introduced in 2004 and now offered
by many UNIQA subsidiaries has become
firmly established in the market. This
service is now offered in Serbia as well.
Expand the international position
In implementing the internationalisation strategy, the goal remains to increase the percentage of international premiums in the overall volume by at least 50% over the long-term, of which a major portion will be from Eastern Europe. Due to the rising level of internationalisation, the share of premiums generated by the UNIQA Group from international business currently lies at 38.5%. In 2000, the share was 5.9%. The markets of Central, Eastern and South Eastern Europe contribute an increasingly large portion of the total Group premium revenue, currently at 20.8%. Roughly 17.7% of the Group premiums originated in the Western European markets in 2010.
The additional goal of decreasing costs by achieving a market share of 5% in the non-life area and 3% in life insurance within the individual growth markets in Central, Eastern and South Eastern Europe was reached in 2010 in nearly every country. A further increase will be achieved by organic growth, especially in life insurance.
Optimise the strong position in Austria on the profit side
In the individual regions, the UNIQA Group is pursuing a differentiated strategy corresponding to the maturity and possibilities of the various markets: In its home market of Austria, UNIQA will maintain its strong position with segment-focused qualitative growth and higher returns. In the Western European markets, which already exhibit high insurance densities, the Group operates in profitable niches and relies on exclusive offers in individual sales channels as well as bank and broker sales.
In Central, Eastern and South Eastern Europe, UNIQA is seeking to achieve targeted growth of its market shares as a composite insurer. To achieve this goal, a series of dynamisation projects were initiated in sales. The basis for this expanded market presence lies in a uniform, Group-wide brand and advertising concept, a shared sales policy and a coordinated approach to the areas of IT, human resources and leadership development.
Expand cooperation with banks
One very important success factor for the penetration into the new insurance markets is the UNIQA Group’s Preferred Partnership with the Raiffeisen bank group and its 15 million customers. This cooperation now extends across 14 Eastern and South Eastern European countries that still lag significantly behind in both insurance and banking. Both partners profit from this cooperation, which also offers positive prospects for the future thanks to the expected above-average growth in the region. Since 2004, the first year of this cooperation, the premium volume the two partners have generated together has increased to over €3.09 million in the year 2010.
EBRD expands financial options
Through support from the European Bank for Reconstruction and Development (EBRD), UNIQA has significant funds at its disposal for minority participations by the EBRD in UNIQA companies in Central and Eastern Europe. As early as 2007, the EBRD increased the scope of its financial cooperation with UNIQA from €70 million to €150 million.