UNIQA Austria

• Premiums written (including savings portions from unit-and index-linked life insurance) fell to €3,631.5 million due to a decrease in single premiums
• Cost ratio rose to 20.0 per cent due to initial investments
• Combined ratio increased slightly from 92.9 per cent to 93.7 per cent
• Earnings before taxes of €232.2 million in Austria

Premiums

At UNIQA Austria the premiums written including savings portions from the unit-linked and index-linked life insurance decreased in 2016 by 6.5 per cent to €3,631.5 million (2015: €3,883.5 million). Recurring premiums however rose by 1.1 per cent to €3,570.1 million (2015: €3,531.6 million). Single premiums fell massively by 82.6 per cent to €61.3 million (2015: €352.0 million) due to the withdrawal of single premium products from the life insurance line.

Including savings portions from the unit-linked and index-linked life insurance, the volume of premiums earned at UNIQA Austria amounted to €2,941.4 million (2015: €3,194.9 million). The volume of premiums earned (net, in accordance with IFRSs) fell by 7.7 per cent to €2,715.8 million (2015: €2,940.8 million).

While premiums written in property and casualty insurance rose by 1.8 per cent to €1,568.6 million (2015: €1,540.8 million), in health insurance they increased by 3.8 per cent to €956.3 million (2015: €921.6 million). In life insurance (including savings portions from the unit-linked and index-linked life insurance) they fell 22.1 per cent to €1,106.5 million (2015: €1,421.2 million).

Premiums earned (net, according to IFRS) rose in property and casualty insurance by 3.4 per cent to €940.9 million (2015: €910.1 million); in health insurance, they increased by 3.6 per cent to €955.3 million (2015: €921.9 million). However, they fell by 26.1 per cent in life insurance to €819.5 million (2015: €1,108.7 million). Including savings portions from the unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €1,045.2 million (2015: €1,362.8 million).

Benefits

Net insurance benefits at UNIQA Austria fell by 9.8 per cent in 2016 to €2,292.1 million (2015: €2,542.1 million). In property and casualty insurance, they rose by 2.3 per cent to €648.0 million (2015: €633.4 million); in health insurance, they increased by 7.7 per cent to €821.8 million (2015: €762.9 million) due to higher claims expenses and an increase in the provision for profit participation. In life insurance, they fell by 28.2 per cent to €822.3 million (2015: €1,145.8 million). Overall, in 2016 the loss ratio in property and casualty insurance amounted to 68.9 per cent (2015: 69.6 per cent). The combined ratio in the UNIQA Austria segment therefore increased slightly after reinsurance to 93.7 per cent (2015: 92.9 per cent) due to increased costs.

Operating expenses

Operating expenses, not including reinsurance commission and share of profit from reinsurance ceded, which amounted to €207.8 million (2015: €193.2 million), increased in the 2016 financial year by 9.6 per cent to €589.2 million (2015: €537.5 million) due to investments in the context of the innovation and investment programme. They rose 10.3 per cent in property and casualty insurance to €233.9 million (2015: €212.2 million). In health insurance, they increased by 17.5 per cent to €143.1 million (2015: €121.8 million), influenced by higher commission loads and a sales campaign. In life insurance they grew 4.2 per cent to reach €212.2 million (2015: €203.6 million).

The cost ratio of UNIQA Austria after reinsurance, i.e. the ratio of total operating expenses, less reinsurance commission and share of profit from reinsurance ceded, to the premiums earned, including savings portions from the unit-linked and index-linked life insurance, amounted to 20.0 per cent during the past year (2015: 16.8 per cent).

Investment income

Net investment income in the UNIQA Austria segment dropped by 23.1 per cent to €460.1 million (2015: 597.9 million) due to the continuance of the low-interest environment, falling securities income and impacts caused by depreciation, amortisation and impairment losses. In addition, high revenues from property sales had a positive effect in the previous year.

Earnings before taxes

Earnings before taxes at UNIQA Austria fell during the reporting year by 41.9 per cent to €232.2 million (2015: €399.7 million), driven by deterioration of the technical result. They fell 29.3 per cent in property and casualty insurance to €70.6 million (2015: €100.0 million). In health insurance, however, they fell by 44.2 per cent to €104.6 million (2015: €187.5 million) due to a lower technical result and lower investment income. In life insurance earnings before taxes fell by 49.2 per cent to €57.0 million (2015: €112.3 million); the principal reason for this was the fall in investment income by 20.3 per cent to €316.4 million (2015: €396.9 million).