Premiums
At UNIQA Austria, the premiums written, including the savings portion from the unit-linked and index-linked life insurance, decreased slightly in 2014 by 1.2 per cent to €2,773.5 million (2013: €2,806.7 million). This was due to the continued clear decrease in premiums in unit-linked life insurance. The main causes of this development are subsequent effects of maturing life insurance policies in conjunction with the decision that was already made back in 2011 to withdraw completely from the German market and not to underwrite any more new business. Recurring premiums decreased by 1.2 per cent to €2,741.7 million (2013: €2,774.6 million). Single premiums remained more or less at the level of the previous year of €31.9 million (2013: €32.1 million).
Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned at UNIQA Austria amounted to €2,137.0 million (2013: €2,196.2 million). Retained premiums earned (according to IFRS) declined slightly in 2014 by 0.3 per cent to €1,993.9 million (2013: €1,999.2 million).
Whereas premiums written in property and casualty insurance rose by 2.7 per cent to €1,362.6 million (2013: €1,326.2 million), they increased in health insurance by 2.4 per cent to €887.3 million (2013: €866.2 million). In contrast, in life insurance (including the savings portion from the unit-linked and index-linked life insurance), they decreased by 14.7 per cent to €523.7 million (2013: €614.2 million).
Retained premiums earned (according to IFRS) rose in property and casualty insurance by 0.7 per cent to €753.0 million (2013: €747.6 million); in health insurance, they increased by 2.5 per cent to €886.9 million (2013: €865.2 million). They fell 8.4 per cent in life insurance to €353.9 million (2013: €386.4 million). Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €497.0 million (2013: €583.5 million).
Benefits
Retained insurance benefits at UNIQA Austria fell by 2.6 per cent in 2014 to €1,637.2 million (2013: €1,680.5 million). However, driven by settlement losses in marine hull insurance, they rose in property and casualty insurance by 4.7 per cent to €516.5 million (2013: €493.5 million) and in health insurance they increased by 1.1 per cent to €744.3 million (2013: €736.2 million). In contrast, they fell 16.5 per cent in life insurance, in line with the premiums earned, to €376.4 million (2013: €450.7 million). Consequently, in 2014 the loss ratio in property and casualty insurance amounted to 68.6 per cent (2013: 66.0 per cent).
Operating expenses
Operating expenses, less reinsurance commissions received and the share of profit from re-insurance ceded, amounting to €175.8 million (2013: €179.4 million) decreased in the 2014 financial year by 5.8 per cent to €394.0 million (2013: €418.1 million). In the previous year, this figure contained extraordinary expenses related to strategic projects. They fell 9.3 per cent in property and casualty insurance to €173.1 million (2013: €190.9 million). In health insurance, they increased by 6.0 per cent to €130.0 million (2013: €122.6 million). The main driver of this development is the change in the cost allocation due to the new business model in Austria. On the other hand, in life insurance they fell 13.1 per cent to €90.9 million (2013: €104.6 million).
The cost ratio of UNIQA Austria after reinsurance, i.e. the relation of total operating expenses, less reinsurance commissions received and the share of profit from reinsurance ceded, to the premiums earned, including the savings portion from the unit-linked and index-linked life insurance, amounted to 18.4 per cent during the past year (2013: 19.0 per cent).
Investment results
Net investment income in the UNIQA Austria segment dropped by 4.2 per cent to €363.0 million (2013: 379.1 million).
Profit/(loss) from ordinary activities
Profit/(loss) from ordinary activities of UNIQA Austria rose in the reporting period, driven by the solid profit development in property and casualty insurance as well as health insurance, by 18.6 per cent to €273.9 million (2013: €231.0 million). It rose in property and casualty insurance by 21.8 per cent to €100.7 million (2013: €82.7 million); in health insurance, profit increased by 37.6 per cent to €130.2 million (2013: €94.6 million). In contrast, profit/(loss) from ordinary activities fell by 19.9 per cent in life insurance to €43.0 million (2013: €53.7 million). The main reason for this development was net investment income, which was 25.1 per cent lower at €180.8 million (2013: €241.5 million).
