20. Subordinated liabilities

In December 2006, UNIQA Insurance Group AG issued bearer debentures with a nominal value of € 150 million for deposited supplementary capital in accordance with section 73c(2) 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, after which a variable interest rate applies.

In January 2007, UNIQA Insurance Group AG issued bearer debentures with a nominal value of € 100 million for deposited supplementary capital in accordance with section 73c(2) 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 5.342 per cent, after which a variable interest rate applies.

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 during the first 10 years, after which a variable interest rate applies. The supplementary capital bond meets both the supervisory requirements related to equity netting as supplementary capital under Solvency I, along with the requirements for equity netting as tier-2 capital under the Solvency II regime, which has been in force since 1 January 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.

In July 2015, UNIQA Insurance Group AG successfully placed a subordinated capital bond (Tier 2) to the value of € 500 million with institutional investors in Europe. The bond is eligible for netting as tier-2 capital under Solvency II. It is not eligible under Solvency I. The bond is scheduled for repayment after a period of 31 years and subject to certain conditions, and can only be cancelled by UNIQA after 11 years have elapsed and under certain conditions. The coupon amounts to 6.00 per cent per annum during the first 11 years, after which a variable interest rate applies. The bond has been listed on the Vienna Stock Market since July 2015. The issue price was set at 100 per cent.