18. Subordinated liabilities

In July 2003, UNIQA Insurance Group AG issued partial debentures with a face value of € 45,000 thousand and UNIQA Österreich Versicherungen AG issued partial debentures with a face value of € 155,000 thousand for deposited supplementary capital according to Section 73c paragraph 2 of the Austrian Insurance Supervisory Act. In the 4th quarter of 2013, these supplementary capital bonds with a face value of € 200,000 thousand were called in and repurchased.

In December 2006, UNIQA Insurance Group AG issued bearer debentures with a face value of € 150,000 thousand for deposited supplementary capital according to Section 73c paragraph 2 of the Austrian Insurance Supervisory Act. According to the conditions of the bearer debentures, the deposited capital of UNIQA Insurance Group AG is agreed to remain at the company’s disposal for at least five years, with no ordinary or extraordinary cancellation possible. Interest is applied only insofar as this is covered in the net profit for the year of the issuer. The interest rate up to December 2016 is 5.079 per cent.

In January 2007, UNIQA Insurance Group AG issued bearer debentures with a face value of € 100,000 thousand for deposited supplementary capital according to Section 73c paragraph 2 of the Austrian Insurance Supervisory Act. According to the conditions of the bearer debentures, the deposited capital of UNIQA Insurance Group AG is agreed to remain at the company’s disposal for at least five years, with no ordinary or extraordinary cancellation possible. Interest is applied only insofar as this is covered in the net profit for the year of the issuer. The interest rate up to December 2016 is 5.342 per cent.

In July 2013, UNIQA Insurance Group AG successfully placed a supplementary capital bond with a volume of € 350 million with institutional investors in Europe. The bond has a term of 30 years and can be called in after ten years at the earliest. The coupon is 6.875 per cent per year. The supplementary capital loan meets the current supervisory requirements for recognition as own funds (supplementary capital under Solvency I) and the foreseeable requirements for recognition as own funds under the Solvency II regime expected to come into force in 2016. The issue also served to replace older supplementary capital bonds from Austrian insurance group companies and to strengthen and optimise UNIQA’s capital base and capital structure in the long term in preparation for Solvency II. The supplementary capital bond has been listed at the Stock Exchange in Luxembourg since the end of July. The issuing rate was set at 100 per cent.