Consolidation

Scope of consolidation

In addition to the Annual Financial Statements of UNIQA Versicherungen AG, the Consolidated Financial Statements include the financial statements of all subsidiaries at home and abroad. 33 affiliated companies did not form part of the scope of consolidation. They were of only minor significance, even if taken together, for the presentation of a true and fair view of the Group's assets, financial position and income. Therefore, the scope of consolidation contains, in addition to UNIQA Versicherungen AG, 56 domestic and 72 foreign subsidiaries in which UNIQA Versicherungen AG has the majority voting rights.

The scope of consolidation was extended in the reporting period by the following companies:

The effects of these additions on the main asset and debt positions can be found under Note 5.

In June 2012, UNIQA entered into an agreement with the European Bank for Reconstruction and Development (EBRD) on the acquisition of the minority interests held by EBRD in the subsidiaries in Croatia (20 per cent), Poland (30 per cent) and Hungary (15 per cent). The acquisition of these minority interests is already legally effective. The carrying amount of the net assets of these companies was € 112,512 thousand as at the time of acquisition. The Group recognised a reduction in non-controlling interests of € 25,391 thousand and in retained earnings of € 50,023 thousand. The effects of the acquisition are presented below:

On 16 April 2012, the UNIQA Group entered into agreements to sell Mannheimer AG Holding, including its subsidiaries and the associated real estate holdings. These transactions were conducted in the 2nd quarter of 2012 and related to 91.68 per cent of the shares of Mannheimer AG Holding, its subsidiaries Mannheimer Versicherung AG, Mannheimer Krankenversicherung AG and mamax Lebensversicherung AG, and the real estate companies MV Augustaanlage Verwaltungs-GmbH and MV Augustaanlage GmbH & Co. KG. The result from discontinued operations is composed as follows:

In the 3rd quarter of 2012, the UNIQA Group resolved to sell the companies of Austria Hotels. Until this transaction is completed, the assets and liabilities of these companies will be presented as separate items in the balance sheet. Details on this can be found under Note 8.

Nine associated companies were domestic companies consolidated at equity; 13 companies were of minor significance and were listed at current market value.

In applying IAS 39 and in terms of the present interpretation of this statement by the IASB (SIC 12), fully controlled investment funds will be included in the consolidation insofar as their fund volumes were not of minor importance when viewed singularly and in total.

Changes in the 1st quarter of 2013

There have been no significant changes to the scope of consolidation.

Consolidation principles

Capital consolidation follows the acquisition method. The costs of acquiring shares in the subsidiaries are written as the proportional equity of the subsidiary that was first revalued. The conditions at the time of acquiring the shares in the consolidated subsidiary are taken into consideration for the initial consolidation. To the extent other (non-Group) shareholders hold shares in the subsidiary's equity at the reporting date, these are dealt with under minority interests.

If the shareholding was acquired before 1 January 1995, the differences are set off against profits carried forward in line with the applicable transitional provisions.

Negative differences from mergers consummated after 31 March 2004 must be credited with an effect on income immediately after reappraisal.

In compliance with IFRS 3, the goodwill is not subject to any scheduled depreciation. The value of existing goodwill resultant from the acquisition of holdings is appraised in an annual impairment test. A fall in value is written off where necessary.

Shares in associated companies

Shares in associated companies are, as a general rule, valued according to the equity method using the equity held by the Group. Differences are determined according to the principles of capital consolidation and the amounts are recorded under shares in associated companies. The updating of the development of the associated companies is based on the most recent financial statements available.

In establishing the value of shares in associated companies, an IFRS report is generally required. Where no IFRS reports are presented, the adjustment of the entries for these companies to the uniform Group valuation benchmarks must be dispensed with due to a lack of available documentation; however, this does not have any significant impact on the present Consolidated Financial Statements.

Debt consolidation

For debt consolidation, the receivables from Group companies are set off against the payables to Group companies. As a rule, any differences have an effect on income. Group-internal results from deliveries and services are eliminated if they are of minor significance for giving a true and fair view of the Group's assets, financial position and income. Proceeds and other income from deliveries and services within the Group are set off against the corresponding expenditure.

Presentation of balance sheet and income statement

The International Financial Reporting Standards (IFRS) allow a shortened version of the balance sheet and income statement. Summarising many individual items into units enhances the informative quality of the financial statements. Explanatory notes to these items are contained in the Group Notes. Because of formatting to thousand €, there may be rounding differences.

Segment reporting

The primary segment reports depict the main business segments of property and casualty insurance, life insurance and health insurance. The consolidation principles are applied here to transactions within a segment. In addition, the main items of the income statement are also broken down by regional perspectives.

Foreign currency conversion

The reporting currency of UNIQA Versicherungen AG is the euro. All Annual Financial Statements of foreign subsidiaries that are not reported in euro are converted at the rate on the balance sheet closing date according to the following guidelines:

• Assets, liabilities and transition of the annual net profit/deficit at the middle rate on the balance sheet closing date
• Income statement at the average rate for the year
• Equity capital (except for annual net profit/deficit) at the historic exchange rate

Resulting exchange rate differences are set off against the shareholders’ equity without affecting income.

The most important exchange rates are summarised in the following table:

Estimates

For creation of the Consolidated Financial Statements according to IFRS, it is necessary to make assumptions for the future within various items. These estimates can have a considerable influence on the valuation of assets and debts on the balance sheet closing date as well as the amount of expenses and income in the financial year. The items below carry a not insignificant level of risk that considerable adjustments to asset or debt values may be necessary in the following year:

• Deferred acquisition costs
• Current value and goodwill
• Shares in associated companies/investments – insofar as the valuation does not take place based on stock exchange prices or other market prices
• Technical provisions
• Pensions and similar provisions