Operating segments

UNIQA International

  • written (including savings portions from unit-and index-linked life insurance) rose by 14.9 per cent to €1,608.5 million
  • fell to 31.2 per cent
  • reduced to 97.1 per cent
  • Earnings before taxes improved markedly to €42.8 million

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UNIQA International

In € million

2017

2016

2015

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

1,608.5

1,399.9

1,302.8

Cost ratio (after reinsurance)

31.2%

34.9%

36.6%

Combined ratio (after reinsurance)

97.1%

99.2%

99.2%

Earnings before taxes

42.8

13.1

31.3

Changes in premiums

UNIQA International increased including savings portions from unit-linked and index-linked life insurance by 14.9 per cent to €1,608.5 million in 2017 (2016: €1,399.9 million). The volume of written increased by 13.2 per cent when adjusted for foreign currency effects. Recurring premiums increased here by 7.0 per cent to €1,382.1 million (2016: €1,292.0 million). Single premiums even increased by 109.8 per cent to €226.4 million (2016: €107.9 million) as a result of the strong growth in Poland. This means that in 2017 the international companies contributed a total of 30.4 per cent (2016: 27.7 per cent) to total Group premiums.

Including savings portions from unit-linked and index-linked life insurance, UNIQA International’s volume of amounted to €1,139.9 million (2016: €963.0 million). The volume of premiums earned (net, in accordance with ) increased in 2017 by 10.7 per cent to €890.0 million (2016: €803.9 million).

While premiums written grew in property and casualty insurance by a very satisfactory 5.8 per cent to €997.3 million (2016: €942.3 million) above all due to strong growth in Czech Republic, Hungary and Ukraine; in health insurance they even rose by 31.7 per cent to €62.8 million (2016: €47.7 million) as a result of the good business performance in Bulgaria and Croatia. In life insurance (including savings portions from unit-linked and index-linked life insurance), they increased by 33.8 per cent to €548.4 million (2016: €409.9 million), driven by strong single premium business in Poland and strong growth in Russia.

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

In € million

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

(net, according to IFRSs) rose by 5.2 per cent to €544.3 million in property and casualty insurance (2016: €517.3 million); in health insurance, they increased by 30.2 per cent to €57.3 million (2016: €44.0 million). In life insurance, they increased by 18.9 per cent to €288.5 million (2016: €242.6 million). Including savings portions from unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €538.3 million (2016: €401.6 million).

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Property and casualty insurance

In € million

2017

2016

2015

Premiums written

997.3

942.3

883.6

Insurance benefits (net)

–316.2

–308.8

–296.4

Claims rate (after reinsurance)

58.1%

59.7%

58.9%

Operating expenses (net)

–212.5

–204.4

–202.6

Cost ratio (after reinsurance)

39.0%

39.5%

40.3%

Combined ratio (after reinsurance)

97.1%

99.2%

99.2%

Net investment income

28.8

32.9

44.4

Earnings before taxes

16.1

–5.9

11.1

Technical provisions (net)

631.8

635.6

755.0

In the Central Europe region (CE) – Poland, Slovakia, the Czech Republic and Hungary – including savings portions from unit-linked and index-linked life insurance increased by 18.4 per cent to €1,024.5 million in the 2017 financial year (2016: €865.6 million). In Eastern Europe (EE), comprising Romania and Ukraine, premiums written including savings portions from unit-linked and index-linked life insurance rose by 2.5 per cent to €168.8 million (2016: €164.6 million). In Southeastern Europe (SEE) – Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Macedonia, Montenegro and Serbia – they also grew by 3.1 per cent in 2017 to €283.4 million (2016: €274.9 million). In Russia (RU), premiums written including savings portions from unit-linked and index-linked life insurance climbed by 50.6 per cent to €87.7 million (2016: €58.2 million). In Western Europe (WE) – Liechtenstein and Switzerland – premiums written including savings portions from unit-linked and index-linked life insurance rose by 20.7 per cent to €44.0 million (2016: €36.5 million).

Changes in insurance benefits

Net at UNIQA International increased in 2017 by 10.9 per cent to €537.6 million (2016: €484.9 million). In property and casualty insurance, they rose by 2.4 per cent to €316.2 million (2016: €308.8 million). In health insurance, they grew 23.8 per cent to reach €36.3 million (2016: €29.3 million). In life insurance, they also increased by 26.1 per cent to €185.2 million (2016: €146.8 million) as a result of the strong growth in premiums. In 2017, the loss ratio in property and casualty insurance fell to 58.1 per cent (2016: 59.7 per cent). The combined ratio after in the UNIQA International segment improved strongly to 97.1 per cent (2016: 99.2 per cent).

In the CE region, benefits rose by 12.6 per cent in 2017 to €263.5 million (2016: €234.0 million); in the EE region, however, they increased by 7.1 per cent to €58.0 million (2016: €54.1 million). They fell by 5.7 per cent in SEE to reach €131.0 million (2016: €138.9 million). In Russia, benefits amounted to €74.1 million (2016: €48.6 million), and in Western Europe, the volume of benefits also rose by 17.6 per cent to €11.1 million (2016: €9.4 million).

Operating expenses

less reinsurance commission and share of profit from ceded, which amounted to €120.5 million (2016: €112.0 million), increased by 5.9 per cent to €356.0 million in the 2017 financial year (2016: €336.2 million). They rose by 4.0 per cent in property and casualty insurance to €212.5 million (2016: €204.4 million). In health insurance, they increased by 10.2 per cent to €21.8 million (2016: €19.8 million). In life insurance, they grew 8.7 per cent to reach €121.7 million (2016: €112.0 million).

At UNIQA International, the cost ratio after reinsurance, i.e. the relation of total , less reinsurance commission and share of profit from reinsurance ceded, to premiums earned, including savings portions from unit-linked and index-linked life insurance, decreased to 31.2 per cent during the past year for reasons stated above (2016: 34.9 per cent).

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Health insurance

In € million

2017

2016

2015

Premiums written

62.8

47.7

43.4

Insurance benefits (net)

–36.3

–29.3

–29.6

Operating expenses (net)

–21.8

–19.8

–20.0

Cost ratio (after reinsurance)

38.1%

45.0%

47.0%

Net investment income

0.3

0.5

0.2

Earnings before taxes

–0.1

–3.1

–5.5

Technical provisions (net)

32.3

24.9

71.6

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Life insurance

In € million

2017

2016

2015

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

548.4

409.9

375.7

Insurance benefits (net)

–185.2

–146.8

–159.8

Operating expenses (net)

–121.7

–112.0

–111.2

Cost ratio (after reinsurance)

22.6%

27.9%

30.2%

Net investment income

42.3

30.1

52.6

Earnings before taxes

26.8

22.1

25.7

Technical provisions (net)

1,647.4

1,493.1

4,792.2

In CE, operating expenses less reinsurance commission and share of profit from reinsurance ceded rose by 2.7 per cent to €178.5 million in the reporting year (2016: €173.7 million). In EE, they increased by 21.5 per cent to €55.7 million (2016: €45.9 million). In SEE they also grew by 4.4 per cent to €89.9 million (2016: €86.1 million). In Russia, costs rose by 14.8 per cent to €11.5 million (2016: €10.0 million), while they fell in Western Europe by 1.9 per cent to €3.8 million (2016: €3.9 million). In administration (UNIQA International AG), costs remained stable at €16.6 million (2016: €16.6 million).

Net investment income

Net investment income rose by 12.4 per cent to €71.5 million in 2017 (2016: €63.5 million).

Earnings before taxes

Earnings before taxes in the UNIQA International segment rose significantly in the reporting year to €42.8 million (2016: €13.1 million) on account of the improved technical result. Earnings before taxes in property and casualty insurance improved to €16.1 million (2016: €–5.9 million). In health insurance, they came to €–0.1 million (2016: €–3.1 million). Lastly, in life insurance, earnings before taxes increased by 21.2 per cent to €26.8 million (2016: €22.1 million).

Earnings before taxes UNIQA International

In € million

Earnings before taxes UNIQA International (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.
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.
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.
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.