Segment reporting

Operating segments

The accounting and measurement methods of the segments that are subject to mandatory reporting correspond with the consolidated accounting and measurement methods. The earnings before taxes for the segments were determined taking the following components into account: summation of the IFRS profits in the individual companies, taking the elimination of net investment income in the various segments and impairment of goodwill into consideration. All other consolidation effects (profit/(loss) for the period at associates, elimination of interim results, and other overall effects) are included in “Consolidation”. The segment profit/(loss) obtained in this manner is reported to the Management Board of UNIQA Insurance Group AG to manage the Group in the following operating segments:

UNIQA Austria – includes the Austrian insurance business.
UNIQA International – includes all foreign primary insurance companies and a foreign Group service company as well as the Austrian holding company UNIQA International AG. This segment is divided on a regional basis into the following main areas:
Central Europe (CE – Poland, Slovakia, the Czech Republic and Hungary)
Eastern Europe (EE – Romania and Ukraine)
Russia (RU)
Southeastern Europe (SEE – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia and Serbia)
Western Europe (WE – Liechtenstein and Switzerland)
Administration (Austrian holding companies)
Reinsurance – includes UNIQA Re AG (Zurich, Switzerland), UNIQA Versicherung AG (Vaduz, Liechtenstein) and the reinsurance business of UNIQA Insurance Group AG.
Group functions – includes the remaining items for UNIQA Insurance Group AG (net investment income and administrative costs) as well as all other remaining Austrian and foreign service companies.

Operating segments

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In € thousand	UNIQA Austria		UNIQA International		Reinsurance		Group functions		Consolidation		Group
In € thousand	1–12/2019	1–12/2018	1–12/2019	1–12/2018	1–12/2019	1–12/2018	1–12/2019	1–12/2018 adjusted	1–12/2019	1–12/2018	1–12/2019	1–12/2018 adjusted
Premiums written (gross), including savings portions from unit-linked and index-linked life insurance	3,800,819	3,734,400	1,561,242	1,564,649	1,129,178	1,098,345	0	0	–1,118,689	–1,087,925	5,372,550	5,309,469
Premiums earned (net), including savings portions from unit-linked and index-linked life insurance	3,057,035	3,031,811	1,082,632	1,059,062	1,029,297	985,588	0	0	1,872	5,208	5,170,836	5,081,670
Savings portions from unit-linked and index-linked life insurance (gross)	211,683	219,802	98,083	100,712	0	0	0	0	0	0	309,766	320,513
Savings portions from unit-linked and index-linked life insurance (net)	211,683	220,214	98,083	100,712	0	0	0	0	0	0	309,766	320,925

Premiums written (gross)	3,589,137	3,514,598	1,463,159	1,463,937	1,129,178	1,098,345	0	0	–1,118,689	–1,087,925	5,062,785	4,988,955

Premiums earned (net)	2,845,352	2,811,597	984,549	958,350	1,029,297	985,588	0	0	1,872	5,208	4,861,071	4,760,744
Premiums earned (net) – intragroup	–704,769	–662,714	–381,412	–387,285	1,084,309	1,044,792	0	0	1,872	5,208	0	0
Premiums earned (net) – external	3,550,121	3,474,312	1,365,961	1,345,636	–55,012	–59,203	0	0	0	0	4,861,071	4,760,744
Technical interest income	300,108	309,474	31,130	26,112	0	0	0	0	0	0	331,238	335,586
Other insurance income	3,842	12,213	20,576	21,921	216	251	349	1,753	–3,469	–3,743	21,514	32,395
Insurance benefits	–2,417,314	–2,390,251	–541,556	–561,788	–700,442	–682,442	3,354	2,539	–1,120	–1,806	–3,657,078	–3,633,748
Operating expenses	–635,734	–564,868	–414,880	–376,591	–303,674	–299,601	–48,513	–68,410	–4,315	–5,183	–1,407,116	–1,314,653
Other technical expenses	–14,873	–14,768	–40,075	–34,419	–15,430	–12,100	2,345	–166	17,931	14,203	–50,102	–47,250
Technical result	81,383	163,398	39,745	33,585	9,966	–8,303	–42,466	–64,285	10,898	8,680	99,526	133,074

Net investment income	424,126	418,322	61,587	81,720	29,450	23,493	356,284	309,813	–286,202	–248,319	585,244	585,029
Income from investments	539,199	512,177	89,737	96,550	43,163	35,801	482,698	593,331	–385,839	–320,284	768,959	917,575
Expenses from investments	–133,651	–112,433	–28,319	–15,035	–13,713	–12,308	–130,954	–334,583	58,495	32,624	–248,143	–441,735
Financial assets accounted for using the equity method	18,578	18,578	169	206	0	0	4,540	51,065	41,141	39,341	64,428	109,189
Other income	1,565	1,204	23,334	10,814	2,540	12,897	194,271	157,683	–29,351	–5,340	192,359	177,258
Reclassification of technical interest income	–300,108	–309,474	–31,130	–26,112	0	0	0	0	0	0	–331,238	–335,586
Other expenses	–11,470	–14,739	–15,400	–39,724	–5,544	–4,298	–186,557	–153,378	27,952	2,457	–191,019	–209,683
Non-technical result	114,113	95,312	38,392	26,699	26,446	32,092	363,997	314,118	–287,601	–251,202	255,346	217,018

Operating profit/(loss)	195,495	258,710	78,136	60,283	36,412	23,788	321,532	249,833	–276,703	–242,522	354,872	350,092
Amortisation of goodwill and impairment losses	–1,786	–1,913	–2,777	–761	0	0	0	0	0	0	–4,562	–2,674
Finance cost	–25,102	–25,080	–4,743	–4,410	–2,901	–2,900	–66,511	–64,201	44,614	43,792	–54,643	–52,800
Earnings before taxes	168,608	231,716	70,617	55,112	33,511	20,888	255,021	185,632	–232,089	–198,730	295,667	294,618

Combined ratio (property and casualty insurance, after reinsurance)	93.9%	91.6%	95.0%	95.5%	97.4%	99.6%	n/a	n/a	n/a	n/a	96.4%	96.8%
Cost ratio (after reinsurance)	20.8%	18.6%	38.3%	35.6%	29.5%	30.4%	n/a	n/a	n/a	n/a	27.2%	25.9%

Associates

Associates are all the entities over which UNIQA has significant influence but does not exercise control or joint control over their financial and operating policies. This is generally the case as soon as there is a voting share of between 20 and 50 per cent or a comparable significant influence is guaranteed legally or in practice via other contractual regulations.

Reinsurance

An insurance company insures part of its risk via another insurance company.