The UNIQA Group is sufficiently capitalised.
The solvency ratio based on supervisory provisions was 214.9 per cent as at 31 December 2012. This figure is considerably higher than the minimum solvency ratio of 135 per cent set out in the internal capital policy.
4.1. Risk strategy disclosures
The primary objective of the UNIQA Group is to remain sufficiently capitalised at all times. In order to ensure this, the risk strategy sets out the extent to which risks will be entered into on behalf of customers and shareholders. The risk appetite derived from this defines tolerance limits for a range of risk criteria and classes (e.g. for market and credit risk).
These tolerances are based on the capital and liquidity base and UNIQA’s profit target within predefined volatility thresholds.
In order to ensure a risk strategy is implemented successfully, the relevant targets become part of the annual planning cycle and are therefore embedded in the business strategy.
4.2. Statutory requirements
Risk capital requirements and available equity are currently calculated according to Solvency I regulations in the UNIQA Group, which will be replaced following the entry into force of Solvency II provisions. As the method of calculating risk capital requirements and available equity is set to change, parallel calculations have been performed in the UNIQA Group since 2008 in order to ensure it is well prepared for this changeover.
To this end, it is necessary to implement the required processes across the Group, to have data available with the required level of granularity, and to identify risk drivers at an early stage and introduce measures where necessary.
4.3. Standard & Poor’s Model
Both regulatory capital requirements and the capital requirements associated with ratings are of central importance to the UNIQA Group.
In addition to the regulatory capital models for Solvency I and Solvency II, the Standard & Poor’s capital model is therefore regularly applied and requirements are calculated oriented towards a target rating.
This information is incorporated in the capital planning process.
The UNIQA Group currently has a BBB+ rating according to Standard & Poor’s.