Operating segments

UNIQA International

  • (including savings portions from unit-linked and index-linked life insurance) fell slightly to €1,561.2 million
  • improved to 95.0 per cent
  • The technical result rose to €39.7 million
  • Earnings before taxes further increased to €70.6 million

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UNIQA International

In € million

2019

2018

2017

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

1,561.2

1,564.6

1,608.5

Cost ratio (after reinsurance)

38.3%

35.6%

31.2%

Combined ratio (after reinsurance)

95.0%

95.5%

97.1%

Earnings before taxes

70.6

55.1

42.8

Changes in premiums

In the UNIQA International segment, written including savings portions from unit-linked and index-linked life insurance fell slightly by 0.2 per cent to €1,561.2 million in the 2019 financial year (2018: €1,564.6 million). While recurring premiums rose by 0.2 per cent to €1,481.8 million (2018: €1,479.0 million), single decreased as planned by 7.2 per cent to €79.5 million (2018: €85.7 million). That means that in 2019 the international companies contributed a total of 29.1 per cent (2018: 29.5 per cent) to total Group premiums.

Including savings portions from unit-linked and index-linked life insurance, UNIQA International’s volume of amounted to €1,082.6 million (2018: €1,059.1 million). The volume of premiums earned (net, in accordance with ) increased in 2019 by 2.7 per cent to €984.5 million (2018: €958.4 million).

in property and casualty insurance increased by 0.9 per cent to €1,076.9 million (2018: €1,067.4 million), whereas they fell in health insurance by 3.9 per cent to €74.6 million (2018: €77.6 million). In life insurance, premiums written including savings portions from unit-linked and index-linked life insurance fell by 2.4 per cent to €409.8 million (2018: €419.7 million) due to the planned withdrawal from the single-premium business.

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)

In property and casualty insurance, (net, according to IFRSs) rose by 5.0 per cent to €614.1 million (2018: €584.8 million); in health insurance, they increased by 1.7 per cent to €67.0 million (2018: €65.8 million). However, in life insurance, they fell by 1.4 per cent to €303.5 million (2018: €307.7 million). Including savings portions from unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €401.6 million (2018: €408.4 million).

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Property and casualty insurance

In € million

2019

2018

2017

Premiums written

1,076.9

1,067.4

997.3

Insurance benefits (net)

–347.6

–339.2

–316.2

Loss ratio (after reinsurance)

56.6%

58.0%

58.1%

Operating expenses (net)

–235.7

–219.6

–212.5

Cost ratio (after reinsurance)

38.4%

37.5%

39.0%

Combined ratio (after reinsurance)

95.0%

95.5%

97.1%

Net investment income

25.3

23.8

28.2

Earnings before taxes

24.1

17.5

15.5

Technical provisions (net)

678.6

653.7

631.8

In the Central Europe region (CE) – Poland, Slovakia, the Czech Republic and Hungary – premiums written including savings portions from unit-linked and index-linked life insurance increased by 1.0 per cent to €943.7 million in the 2019 financial year (2018: €934.0 million). In Eastern Europe (EE) – Romania and Ukraine – they rose sharply by 13.8 per cent to €201.5 million (2018: €177.0 million). In Southeastern Europe (SEE), comprising Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia and Serbia, the premiums written including savings portions from unit-linked and index-linked life insurance increased by 4.0 per cent to €319.4 million (2018: €307.0 million) in the 2019 financial year. In Russia (RU), by contrast, they fell by 10.8 per cent to €88.5 million (2018: €99.2 million). They also declined in Western Europe (WE) – Liechtenstein and Switzerland – in this case to €8.1 million (2018: €47.3 million).

Changes in insurance benefits

Net at UNIQA International fell by 3.6 per cent to €541.6 million in 2019 (2018: €561.8 million). They rose 2.5 per cent in property and casualty insurance to €347.6 million (2018: €339.2 million). In health insurance, they fell by 5.8 per cent to €38.8 million (2018: €41.3 million). They also decreased in life insurance, down by 14.5 per cent to €155.1 million (2018: €181.4 million). This pushed the loss ratio in property and casualty insurance down to 56.6 per cent in 2019 (2018: 58.0 per cent), while the combined ratio after in the UNIQA International segment improved to 95.0 per cent (2018: 95.5 per cent).

In the Central Europe region, insurance benefits rose by 2.3 per cent to €278.4 million in 2019 (2018: €272.2 million); in the Eastern Europe region, however, they fell by 11.2 per cent to €55.6 million (2018: €62.7 million). In Southeastern Europe, meanwhile, they increased by 2.6 per cent to €137.5 million (2018: €134.0 million). At €69.2 million (2018: €79.2 million), benefits in Russia were down 12.6 per cent year on year. It was similar in Western Europe, where they fell to €0.8 million (2018: €13.7 million).

Operating expenses

less reinsurance commission and share of profit from ceded, which amounted to €133.0 million (2018: €130.6 million), increased by 10.2 per cent to €414.9 million in the 2019 financial year (2018: €376.6 million). In property and casualty insurance, they rose by 7.4 per cent to €235.7 million (2018: €219.6 million); in health insurance, by contrast, they fell by 13.6 per cent to €21.3 million (2018: €24.7 million). In life insurance, they increased 19.3 per cent to reach €157.9 million (2018: €132.4 million).

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Health insurance

In € million

2019

2018

2017

Premiums written

74.6

77.6

62.8

Insurance benefits (net)

–38.8

–41.3

–36.3

Operating expenses (net)

–21.3

–24.7

–21.8

Cost ratio (after reinsurance)

31.8%

37.5%

38.1%

Net investment income

0.4

0.5

0.3

Earnings before taxes

7.1

0.2

–0.1

Technical provisions (net)

44.8

37.2

32.3

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Life insurance

In € million

2019

2018

2017

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

409.8

419.7

548.4

Insurance benefits (net)

–155.1

–181.4

–185.2

Operating expenses (net)

–157.9

–132.4

–121.7

Cost ratio (after reinsurance)

39.3%

32.4%

22.6%

Net investment income

35.9

57.5

42.9

Earnings before taxes

39.4

37.5

27.4

Technical provisions (net)

1,654.4

1,577.7

1,647.4

The 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 unit-linked and index-linked life insurance, amounted to 38.3 per cent during the past year (2018: 35.6 per cent).

In Central Europe, less reinsurance commission and share of profit from reinsurance ceded rose by 0.7 per cent to €190.9 million in the reporting year (2018: €189.6 million). In Eastern Europe, they rose by 46.9 per cent to €83.5 million (2018: €56.9 million), and in Southeastern Europe they increased by 8.9 per cent to €101.3 million (2018: €93.1 million). In Russia, costs rose by 17.9 per cent to €16.4 million (2018: €13.9 million), while they fell in Western Europe by 35.3 per cent to €2.1 million (2018: €3.2 million). In administration (UNIQA International AG), costs increased by 3.3 per cent to €20.7 million (2018: €20.0 million).

Net investment income

Net investment income in the segment dropped by 24.6 per cent to €61.6 million in 2019 (2018: €81.7 million).

Earnings before taxes

Earnings before taxes in the UNIQA International segment rose by 28.1 per cent to €70.6 million in the reporting year (2018: €55.1 million) on account of the better technical result. Earnings before taxes in property and casualty insurance improved to €24.1 million (2018: €17.5 million); in health insurance, they increased to €7.1 million (2018: €0.2 million). Lastly, in life insurance, earnings before taxes increased by 5.2 per cent to €39.4 million (2018: €37.5 million).

Earnings before taxes UNIQA International

In € million

Earnings before taxes UNIQA International (bar chart)
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.
Combined ratio
Total sum of operating expenses and insurance benefits in relation to the (net) premiums earned in property and casualty insurance.
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
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 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 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.
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).
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.