4. Capitalisation

On the basis of the current regulatory requirements, available own funds and the risk capital requirement are calculated in accordance with Solvency I.

When Solvency II comes into force, the definitions and methods used to calculate available own funds as well as capital requirements and management standards will be replaced by Solvency II standards.

As at 31 December 2014, the solvency ratio on the basis of the regulatory provisions was 295.4 per cent. Eligible equity amounted to €3,442.2 million; which included eligible subordinated liabilities of €250.0 million up to half of the equity requirement and eligible subordinated liabilities of €286.5 million up to a quarter of the equity requirement. The solvency requirement is €1,165.2 million.

4.1. Statutory requirements

Risk capital requirements and available equity are currently calculated according to Solvency I regulations. These will be replaced when the Solvency II provisions take effect. In order to guarantee a smooth transition between these two different calculation methods, the UNIQA Group has performed parallel calculations since 2008. One consequence of these efforts is an early Group-wide introduction of the new methods and processes. Gaps and shortcomings will thus be identified early and promptly rectified.

4.2. Internal capital adequacy

The UNIQA Group defines its risk appetite on the basis of an economic capital model (ECM). The cover for quantifiable risks with eligible own funds (capital ratio) should lie between 150 and 160 per cent in 2015. In the medium term, the capital ratio should be at least 170 per cent.

As at 31 December 2013, the solvency ratio in accordance with the ECM was 160.9 per cent. Details for the reporting date of 31 December 2014, including a detailed analysis of changes, can be found in the ECM report.

4.3. Standard and Poor's model

In addition to regulatory and internal provisions, the Group also takes into account the capital requirements specified by an external rating agency to ensure that the Group's credit quality is presented objectively and can be compared with other entities. Therefore, the UNIQA Group is regularly rated by the rating agency Standard & Poor's. UNIQA Insurance Group AG has been given an “A–” credit rating by Standard & Poor’s. UNIQA Österreich Versicherungen AG and UNIQA Re AG each have a rating of “A”; UNIQA Versicherung AG in Liechtenstein is rated with “A–” and the supplementary capital bond with "BBB". Standard & Poor’s rates the outlook for all the companies as stable. The UNIQA Group includes the impact on its rating in its capital planning process with the objective of improving the rating over the long term as the corporate strategy is implemented.

© UNIQA Group 2015