18. Subordinated liabilities

In December 2006, UNIQA Insurance Group AG issued bearer debentures with a nominal value of €150,000 thousand for deposited supplementary capital in accordance with section 73c paragraph of the Austrian Insurance Supervisory Act. According to the terms and conditions of the bearer debentures, the contributed capital of UNIQA Insurance Group AG is agreed to remain at the Company’s disposal for at least 5 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 nominal value of €100,000 thousand for deposited supplementary capital in accordance with section 73c paragraph of the Austrian Insurance Supervisory Act. According to the terms and 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 5 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 in the volume of €350 million with institutional investors in Europe. The bond has a maturity period of 30 years and may only be cancelled after 10 years. The coupon equals 6.875 per cent per annum. The supplementary capital bond meets both the current supervisory requirements related to equity netting (supplementary capital under Solvency I) along with the foreseeable requirements for equity netting under the Solvency II regime which comes into force in 2016. The issue was also aimed at replacing older supplementary capital bonds from Austrian insurance groups and at bolstering UNIQA’s capital resources and capital structure in preparation for Solvency II and optimising these over the long term. The supplementary capital bond has been listed on the Luxembourg Stock Exchange since the end of July 2013. The issue price was set at 100 per cent.