Premiums
UNIQA International increased the premiums written, including the savings portion from the unit-linked and index-linked life insurance, in 2014 by 8.8 per cent to €2,353.1 million (2013: €2,162.4 million). Recurring premiums fell here by 0.6 per cent to €1,574.6 million (2013: €1,564.9 million). Single premiums rose despite the decline in Poland and Hungary due to the very strong business in Italy, where they grew 30.3 per cent to reach €778.5 million (2013: €597.5 million). That means that in 2014 the international companies contributed a total of 38.8 per cent (2013: 36.7 per cent) to total Group premiums.
Including the savings portion from the unit-linked and index-linked life insurance, UNIQA International’s volume of premiums earned amounted to €1,822.2 million (2013: 1,634.1 million). The volume of retained premiums earned (according to IFRS) rose in 2014 by 19.3 per cent to €1,582.3 million (2013: 1,325.9 million).
While premiums written in property and casualty insurance decreased slightly due to negative currency effects and the restraint in the highly competitive motor vehicle segment in CEE by 0.8 per cent to €1,084.9 million (2013: €1,093.7 million), they rose in health insurance by 3.0 per cent to €73.5 million (2013: 71.4 million). In life insurance (including the savings portion from the unit-linked and index-linked life insurance) they rose, driven by the positive course of business in Italy, by 19.8 per cent to €1,194.6 million (2013: €997.3 million).
Retained premiums earned (according to IFRS) fell in property and casualty insurance by 1.8 per cent to €588.2 million (2013: €599.2 million), in health insurance they rose by 2.7 per cent to €71.7 million (2013: €69.8 million) and in life insurance by 40.4 per cent to €922.5 million (2013: €656.8 million). Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €1,162.4 million (2013: €965.1 million).
In the Central Europe region (CE) – Poland, Slovakia, the Czech Republic and Hungary – premiums earned, including the savings portion from the unit-linked and index-linked life insurance, decreased in the 2014 financial year by 13.5 per cent to €524.7 million (2013: €606.8 million). The reduction of the very short-term-oriented single premium business in Poland, the marked withdrawal from single premium business in Hungary and the weaker exchange rate of the Czech koruna were the main factors responsible for this decrease. In Eastern Europe (EE) – comprising Romania and Ukraine – premiums earned, including the savings portion from the unit-linked and index-linked life insurance, fell above all due to the significant loss in value of the Ukrainian hryvnia and the restraint in the highly competitive Romanian motor vehicles business by 23.0 per cent to €117.4 million (2013: €152.5 million). In the Southeastern Europe region (SEE) – Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Macedonia, Montenegro and Serbia – in 2014 premium growth was generated in the amount of 29.6 per cent, to €205.7 million (2013: €158.7 million). One driver of this was the acquisition of the insurance companies in the Baloise Group in Croatia and Serbia. In Russia (RU), the pre-miums earned, including the savings portion from the unit-linked and index-linked life insurance, rose despite the decrease in value of the Russian rouble by 1.9 per cent to €65.6 million (2013: €64.3 million). In Western Europe (WE) – Italy, Liechtenstein and Switzerland – the premiums earned, including the savings portion from the unit-linked and index-linked life insurance, rose in particular due to the increase in single premiums in Italy by 39.2 per cent to €908.9 million (2013: €652.9 million).
Benefits
Retained insurance benefits of UNIQA International increased in 2014 by 30.6 per cent to €1,253.6 million (2013: €960.1 million). In property and casualty insurance they rose by 1.8 per cent to €372.7 million (2013: €366.1 million); in health insurance, profit increased by 7.5 per cent to €45.7 million (2013: €42.5 million). They increased 51.4 per cent in life insurance to €835.2 million (2013: €551.5 million) due to the strong rise in premium revenue. In 2014 the loss ratio in property and casualty insurance rose 63.4 per cent (2013: 61.1 per cent).
In the CE region, benefits rose by 3.1 per cent in 2014 to €245.8 million (2013: €238.5 million); however, in the EE region they fell by 25.1 per cent to €69.6 million (2013: €92.9 million). In SEE, due to the acquisition of the insurance companies in the Baloise Group in Croatia and Serbia, they rose 33.8 per cent to €128.9 million (2013: €96.3 million). In Russia, benefits amounted to €44.2 million (2013: €40.4 million); and in Western Europe, the volume of benefits rose due to the strong growth in premiums in life insurance by 55.5 per cent to €765.2 million (2013: €492.0 million).
Operating expenses
Operating expenses, not including reinsurance commissions received and the share of profit from reinsurance ceded, which amounted to €147.9 million (2013: €147.3 million), decreased in the 2014 financial year by 4.4 per cent to €434.8 million (2013: €454.7 million). They fell by 8.5 per cent in property and casualty insurance to €228.9 million (2013: €250.2 million). In health insurance, benefits rose on the other hand by 7.0 per cent to €30.7 million (2013: €28.7 million). They decreased by 0.3 per cent in life insurance to €175.3 million (2013: €175.8 million).
The cost ratio of UNIQA International after reinsurance, i.e. the relation of total operating expenses, less reinsurance commissions received and the share of profit from reinsurance ceded, to premiums earned, including the savings portion from the unit-linked and index-linked life insurance, decreased during the past year for the reasons mentioned above to 23.9 per cent (2013: 27.8 per cent).
In CE, operating expenses, not including reinsurance commissions received and the share of profit from reinsurance ceded, decreased in the reporting year by 10.9 per cent to €159.7 million (2013: €179.1 million) and in EE by 16.7 per cent to €64.9 million (2013: €77.9 million). In SEE, due to the acquisition of the insurance companies in the Baloise Group in Croatia and Serbia, they increased by 18.2 per cent to €89.7 million (2013: €75.9 million). In Russia, costs amounted to €16.8 million (2013: €24.4 million), while expenses increased in Western Europe by 11.0 per cent to €78.3 million (2013: €70.5 million). In administration (UNIQA International AG), costs decreased by 5.1 per cent to €25.4 million (2013: €26.8 million).
Net investment income
Net investment income rose during 2014 by 21.8 per cent to €174.3 million (2013: 143.1 million).
Profit/(loss) from ordinary activities
In the reporting period, profit/(loss) from ordinary activities in the UNIQA International segment amounted to minus €1.2 million (2013: €21.5 million). The main reason for this was the impairment of goodwill in Romania in the amount of €25 million. Profit (net of tax) in property and casualty insurance declined due to the impairment of goodwill mentioned above to minus €21.4 million (2013: €1.0 million). In health insurance, it came to minus €1.3 million (2013: €1.6 million). On the other hand, in life insurance the profit/(loss) from ordinary activities improved by 13.7 per cent to €21.5 million (2013: €18.9 million).
