Operating segments

UNIQA Austria

  • written (including savings portions from unit-and index-linked life insurance) rose to €3,656.6 million
  • improved to 18.3 per cent on account of lower expenses for the acquisition of insurance
  • decreased from 93.7 per cent to 91.8 per cent
  • Earnings before taxes increased to €261.6 million in Austria

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UNIQA Austria

In € million

2017

2016

2015

Premiums written including savings portions
from unit-linked and index-linked life insurance

3,656.6

3,631.5

3,883.5

Cost ratio (after reinsurance)

18.3%

20.0%

16.8%

Combined ratio (after reinsurance)

91.8%

93.7%

92.9%

Earnings before taxes

261.6

232.2

399.7

Changes in premiums

At UNIQA Austria, including savings portions from unit-linked and index-linked life insurance increased by 0.7 per cent to €3,656.6 million in 2017 (2016: €3,631.5 million). Recurring rose by 1.6 per cent to €3,629.0 million (2016: €3,570.1 million). In contrast, single premiums fell by 55.0 per cent to €27.6 million (2016: €61.3 million) due to the withdrawal of single premium products from the life insurance line.

including savings portions from unit-linked and index-linked life insurance amounted to €2,991.3 million (2016: €2,941.4 million) at UNIQA Austria. The volume of premiums earned (net, in accordance with ) rose by 1.8 per cent to €2,764.9 million in 2017 (2016: €2,715.8 million).

While premiums written in property and casualty insurance rose by 3.4 per cent to €1,621.8 million (2016: €1,568.6 million), in health insurance, they increased by 2.4 per cent to €979.7 million (2016: €956.3 million). In life insurance (including savings portions from unit-linked and index-linked life insurance), they fell by 4.6 per cent to €1,055.2 million (2016: €1,106.5 million).

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Property and casualty insurance

In € million

2017

2016

2015

Premiums written

1,621.8

1,568.6

1,540.8

Insurance benefits (net)

–675.8

–648.0

–633.4

Claims rate (after reinsurance)

67.6%

68.9%

69.6%

Operating expenses (net)

–241.8

–233.9

–212.2

Cost ratio (after reinsurance)

24.2%

24.9%

23.3%

Combined ratio (after reinsurance)

91.8%

93.7%

92.9%

Net investment income

43.0

27.6

49.2

Earnings before taxes

110.2

70.6

100.0

Technical provisions (net)

1,056.1

1,012.3

926.2
Premiums written including savings portions from unit-linked and index-linked life insurance UNIQA Austria

In € million

Premiums written including savings portions from unit-linked and indexlinked life insurance UNIQA Austria (bar chart)

In property and casualty insurance, (net, in accordance with IFRSs) rose by 6.3 per cent to €999.9 million (2016: €940.9 million); in health insurance, they increased by 2.5 per cent to €979.4 million (2016: €955.3 million). However, in life insurance, they fell by 4.1 per cent to €785.7 million (2016: €819.5 million). In this line, premiums earned including savings portions from unit-linked and index-linked life insurance amounted to €1,012.1 million (2016: €1,045.2 million).

Changes in insurance benefits

Net at UNIQA Austria increased by 2.6 per cent to €2,350.7 million in 2017 (2016: €2,292.1 million). In property and casualty insurance, they rose by 4.3 per cent to €675.8 million (2016: €648.0 million) as a result of above-average claims for damage from natural disasters, and in health insurance they increased by 3.4 per cent to €849.5 million (2016: €821.8 million) due to an allocation to the provision for premium refunds. They remained virtually unchanged in life insurance at €825.4 million (2016: €822.3 million). Overall, in 2017, the loss ratio in property and casualty insurance amounted to 67.6 per cent (2016: 68.9 per cent). The combined ratio after improved to 91.8 per cent (2016: 93.7 per cent) in the UNIQA Austria segment.

Operating expenses

less reinsurance commission and share of profit from ceded, which amounted to €192.1 million (2016: €207.8 million), fell by 6.9 per cent to €548.3 million in the 2017 financial year (2016: €589.2 million) on account of lower expenses for the acquisition of insurance, despite investments in the context of the innovation and investment programme. However, in property and casualty insurance, they rose by 3.3 per cent to €241.8 million (2016: €233.9 million). In health insurance, they fell by 10.1 per cent to €128.7 million (2016: €143.1 million) due to the impact of the lower expenses for the acquisition of insurance. They decreased by 16.2 per cent in life insurance to €177.9 million (2016: €212.2 million), also as a result of lower expenses for the acquisition of insurance.

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 premiums earned, including savings portions from unit-linked and index-linked life insurance, fell to 18.3 per cent during the past year (2016: 20.0 per cent).

Net investment income

Net investment income in the UNIQA Austria segment remained more or less stable in 2017 at €462.4 million (2016: 460.1 million).

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Health insurance

In € million

2017

2016

2015

Premiums written

979.7

956.3

921.6

Insurance benefits (net)

–849.5

–821.8

–762.9

Operating expenses (net)

–128.7

–143.1

–121.8

Cost ratio (after reinsurance)

13.1%

15.0%

13.2%

Net investment income

118.9

116.1

151.8

Earnings before taxes

117.8

104.6

187.5

Technical provisions (net)

3,005.2

2,855.3

2,707.2

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Life insurance

In € million

2017

2016

2015

Premiums written including savings portions
from unit-linked and index-linked life insurance

1,055.2

1,106.5

1,421.2

Insurance benefits (net)

–825.4

–822.3

–1,145.8

Operating expenses (net)

–177.9

–212.2

–203.6

Cost ratio (after reinsurance)

17.6%

20.3%

14.9%

Net investment income

300.5

316.4

396.9

Earnings before taxes

33.5

57.0

112.3

Technical provisions (net)

14,059.9

14,660.8

15,127.3

Earnings before taxes

Earnings before taxes at UNIQA Austria rose by 12.7 per cent to €261.6 million during the reporting year (2016: €232.2 million), driven by an improvement in the technical result. They improved by 55.9 per cent in property and casualty insurance to €110.2 million (2016: €70.6 million). In health insurance, they increased by 12.8 per cent to €118.0 million (2016: €104.6 million). Lastly, in life insurance, earnings before taxes fell by 41.3 per cent to €33.5 million (2016: €57.0 million).

Earnings before taxes UNIQA Austria

In € million

Earnings before taxes UNIQA Austria (bar chart)
Premiums
Total premiums written. All premiums from contracts written in the financial year from business acquired by the company directly and as inward reinsurance.
Cost ratio
Ratio of total insurance operations expenses (net of reinsurance commissions received and share of profit from reinsurance ceded) to consolidated premiums earned (including savings portions of unit-linked and index-linked life insurance).
Combined ratio
Total sum of operating expenses and insurance benefits in relation to the (net) premiums earned in property and casualty insurance.
Premiums written
All premiums due during the financial year arising from insurance contracts under direct insurance business, regardless of whether these premiums relate (either wholly or partially) to a later financial year. This involves (net) premiums written when reduced by the amount ceded to reinsurance companies.
Premiums
Total premiums written. All premiums from contracts written in the financial year from business acquired by the company directly and as inward reinsurance.
Premiums earned
The actuarial premiums earned that determine the income for the year. In order to determine these, the changes to the unearned premiums, the cancellation provisions and the premium volume not yet written are taken into account, along with the gross premium volume written attributable to the financial year.
IFRSs
International Financial Reporting Standards. Since 2002 the term IFRSs has applied to the overall concept of standards adopted by the International Accounting Standards Board. Standards already adopted beforehand continue to be referred to as International Accounting Standards (IASs).
Premiums earned
The actuarial premiums earned that determine the income for the year. In order to determine these, the changes to the unearned premiums, the cancellation provisions and the premium volume not yet written are taken into account, along with the gross premium volume written attributable to the financial year.
Insurance benefits
Total of insurance benefit payments and changes in the claims provision during the financial year in connection with direct insurance and reinsurance contracts (gross). This involves net insurance benefits when reduced by the amount ceded to reinsurance companies. This does not include claims settlement expenses and changes in the provisions for claims settlement expenses.
Reinsurance
An insurance company insures part of its risk via another insurance company.
Operating expenses
This item includes acquisition expenses, portfolio management expenses and the expenses for implementing reinsurance. The operating expenses remain for the company’s own account following deduction of the commissions and profit participation received from the reinsurance business ceded.
Reinsurance
An insurance company insures part of its risk via another insurance company.