14. Assets and liabilities in disposal groups held for sale, as well as discontinued operations

Assets and liabilities held for sale

Non-current assets and liabilities are classified as held for sale if it is highly probable that they will be realised through sale rather than continued use.

These assets or disposal groups are recognised at the lower of their carrying amounts or fair values less costs to sell. Any impairment loss of a disposal group is firstly attributed to goodwill and then to the remaining assets and liabilities on a proportional basis – with the exception that no loss is attributed to financial assets, deferred tax assets, assets in connection with employee benefits or investment property that continues to be measured based on the Group’s other accounting policies. Impairment losses on the first-time classification as held for sale and any subsequent impairment losses are recognised in profit or loss.

Intangible assets held for sale and property, plant and equipment are no longer amortised or depreciated and any investments recognised using the equity method are no longer equity-accounted.

Due to the contract of assignment dated 3 January 2017, the 29 per cent holding in Medial Beteiligungs-Gesellschaft m.b.H. (Medial), Vienna, is stated under this item.

On 16 May 2017, the sale of the 99.7 per cent holding in the Group company UNIQA Assicurazioni SpA (Italian Group) was closed. Assets and liabilities that were recorded under the item “Assets and liabilities in disposal groups held for sale” up until the closing were derecognised accordingly.

Assets and liabilities in disposal groups held for sale are as follows:

In the course of the sale of the Italian Group, UNIQA provided a contractual guarantee to Società Reale Mutua di Assicurazioni in the amount of maximum €40 million from the sales partnership with Veneto Banca S.p.A. (Montebelluna, Italy), which remains in place until 2019. The reinsurance obligations towards the Italian Group that were entered into prior to the sale will be cleared by 31 December 2019.

As a result of insolvency proceedings regarding Veneto Banca S.p.A. that began in June 2017, Banca Intesa Sanpaolo (Turin, Italy) has taken over part of Veneto Banca’s business. However, the sales partnership with the UNIQA Italian Group has not been taken over as yet. As a result, UNIQA is likely to be liable for payment of the full amount based on the contractual guarantee. A corresponding provision of €40 million has been formed for this purpose.

The Italian Group was deconsolidated effective 30 June 2017. The net assets sold and the net profit from the deconsolidation are composed of the following:

Discontinued operations

A discontinued operation is a part of the Group that has either been sold or has been categorised as held for sale, and which

• represents a major line of business or a geographical area of operations,
• is part of a single coordinated plan to dispose of a separate, major line of business or geographical area of operations, or
• is a subsidiary acquired exclusively with a view to resale.

The entity is classified as a discontinued operation when the aforementioned criteria are fulfilled.

If an operation is classified as a discontinued operation, the consolidated statement of comprehensive income as well as the data relating to it for the comparative year is adjusted so that it were as if the operation had been discontinued from the start of the comparative year.