UNIQA International

• Premiums written (including savings portions from unit-and index-linked life insurance) rose to €1,399.9 million
• Cost ratio improved to 34.9 per cent
• Combined ratio stable at 99.2 per cent
• Extraordinary impairment of goodwill in Croatia in the amount of €16.6 million
• Earnings before taxes in international markets at €13.1 million

Premiums

UNIQA International increased the premiums written, including savings portions from the unit-linked and index-linked life insurance, in 2016 by 7.5 per cent to €1,399.9 million (2015: €1,302.8 million). The premiums written even increased by 9.3 per cent when adjusted for foreign currency effects. Recurring premiums increased here by 6.4 per cent to €1,292.0 million (2015: €1,214.1 million). Single premiums also increased by 21.7 per cent to €107.9 million (2015: €88.6 million). That means that in 2016 the international companies contributed a total of 27.7 per cent (2015: 25.0 per cent) to total Group premiums.

At UNIQA International, including the savings portions from the unit-linked and index-linked life insurance, the volume of premiums earned amounted to €963.0 million (2015: €913.2 million). The volume of premiums earned (net, in accordance with IFRSs) remained nearly unchanged in 2016 at €803.9 million (2015: €801.4 million).

While premiums written grew in property and casualty insurance –above all due to strong growth in Romania, Poland and the Czech Republic – by a very satisfactory 6.6 per cent to €942.3 million (2015: €883.6 million), in health insurance they even increased by 9.8 per cent to €47.7 million (2015: €43.4 million). In life insurance (including savings portions from the unit-linked and index-linked life insurance) they increased by 9.1 per cent to €409.9 million (2015: €375.7 million), driven by strong single premium business in Poland.

Premiums earned (net, according to IFRS) rose in property and casualty insurance by 2.9 per cent to €517.3 million (2015: €503.0 million); in health insurance, they increased by 3.4 per cent to €44.0 million (2015: €42.5 million). They decreased however by 5.2 per cent in life insurance to €242.6 million (2015: €255.9 million). Including the savings portion from the unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €401.6 million (2015: €367.7 million).

In the Central Europe region (CE) – Poland, Slovakia, the Czech Republic and Hungary – premiums written, including savings portions from the unit-linked and index-linked life insurance, increased in the 2016 financial year by 9.8 per cent to €865.6 million (2015: €788.5 million). In Eastern Europe (EE), comprising Romania and Ukraine, premiums written including savings portions from the unit-linked and index-linked life insurance increased by 14.5 per cent to €164.6 million (2015: €143.8 million). They fell, however, in Southeastern Europe (SEE) – Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Macedonia, Montenegro and Serbia – by 5.4 per cent to €274.9 million (2015: €290.4 million). In Russia (RU), premiums written, including savings portions from the unit-linked and index-linked life insurance, grew strongly by 18.7 per cent to €58.2 million (2015: €49.1 million). In Western Europe (WE) – Italy, Liechtenstein and Switzerland – the premiums written, including savings portions from the unit-linked and index-linked life insurance, rose by 18.2 per cent to €36.5 million (2015: €30.9 million).

Benefits

Net insurance benefits at UNIQA International fell in 2016 by 0.2 per cent to €484.9 million (2015: €485.8 million). They rose 4.2 per cent in property and casualty insurance to €308.8 million (2015: €296.4 million). In health insurance, they fell slightly by 0.9 per cent to reach €29.3 million (2015: €29.6 million). In life insurance, they also fell by 8.1 per cent to €146.8 million (2015: €159.8 million). In 2016 the loss ratio in property and casualty insurance rose 59.7 per cent (2015: 58.9 per cent) due to an extraordinary claim load in Poland. The combined ratio in the UNIQA International segment after reinsurance remained stable at 99.2 per cent (2015: 99.2 per cent).

In the CE region, benefits fell by 6.2 per cent in 2016 to €234.0 million (2015: €249.4 million); in the EE region however they increased by 30.5 per cent to €54.1 million (2015: €41.5 million). They fell by 7.4 per cent in SEE to reach €138.9 million (2015: €150.0 million). In Russia, benefits amounted to €48.6 million (2015: €36.3 million), and in Western Europe, the volume of benefits also rose by 9.3 per cent to €9.4 million (2015: €8.6 million).

Operating expenses

Operating expenses, not including reinsurance commission and share of profit from reinsurance ceded, which amounted to €112.0 million (2015: €102.8 million), increased in the 2016 financial year by 0.7 per cent to €336.2 million (2015: €333.8 million). They rose 0.9 per cent in property and casualty insurance to €204.4 million (2015: €202.6 million). In health insurance on the other hand, they fell by 1.1 per cent to €19.8 million (2015: €20.0 million). In life insurance they grew 0.7 per cent to reach €112.0 million (2015: €111.2 million).

The cost ratio of UNIQA International after reinsurance, i.e. the ratio of total operating expenses, less reinsurance commission and share of profit from reinsurance ceded, to premiums earned, including savings portions from the unit-linked and index-linked life insurance, decreased during the past year for the reasons mentioned above to 34.9 per cent (2015: 36.6 per cent).

In CE operating expenses, not including reinsurance commission and share of profit from reinsurance ceded, rose in the reporting year by 9.5 per cent to €173.7 million (2015: €158.7 million). They fell by 11.1 per cent in EE to €45.9 million (2015: €51.6 million). In SEE they also dropped slightly by 5.2 per cent to €86.1 million (2015: €90.9 million). In Russia, costs increased by 5.9 per cent to €10.0 million (2015: €9.4 million), while they increased in Western Europe by 41.8 per cent to €3.9 million (2015: €2.7 million). In administration (UNIQA International AG), costs decreased by 19.0 per cent to €16.6 million (2015: €20.5 million).

Investment income

Net investment income fell during 2016 by 34.7 per cent to €63.5 million (2015: €97.3 million).

Earnings before taxes

Earnings before taxes in the UNIQA International segment fell in the reporting year to €13.1 million (2015: €31.3 million) due to an extraordinary impairment of goodwill in Croatia amounting to €16.6 million. Earnings before taxes in property and casualty insurance decreased due to the impairment of goodwill mentioned above to €–5.9 million (2015: €11.1 million). In health insurance, earnings before taxes came to €–3.1 million (2015: €–5.5 million). Lastly, in life insurance, earnings before taxes fell by 14.1 per cent to €22.1 million (2015: €25.7 million).