Group business development
- Premiums written (including savings portions from unit-linked and index-linked life insurance) rose by 3.6 per cent to €5,565.3 million
- The combined ratio deteriorated from 96.4 per cent to 97.8 per cent
- Non-recurring expenses of €205 million for the restructuring provision and impairment losses on goodwill in the fourth quarter of 2020
- Consolidated profit/(loss) due to non-recurring effects of €19.4 million
- Proposed dividend of €0.18 per share for 2020
- Pre-tax profit at 2018 levels expected for 2021
In € million |
2020 |
2019 |
2018 |
|---|---|---|---|
Premiums written including savings portions from unit-linked and index-linked life insurance |
5,565.3 |
5,372.6 |
5,309.5 |
Cost ratio (after reinsurance) |
29.4% |
27.2% |
25.9% |
Combined ratio (after reinsurance) |
97.8% |
96.4% |
96.8% |
Earnings before taxes |
57.1 |
232.0 |
294.6 |
Consolidated profit/(loss) (proportion of the net profit for the period attributable to the shareholders of UNIQA Insurance Group AG) |
19.4 |
171.0 |
243.3 |
Changes in premiums
UNIQA’s total premium volume, including savings portions from unit-linked and index-linked life insurance in the amount of €304.1 million (2019: €309.8 million), increased by 3.6 per cent to €5,565.3 million in 2020 (2019: €5,372.6 million). The main driver of this was the initial consolidation of AXA CEE companies in the fourth quarter of 2020. Details on the acquisition of the AXA companies can be found in note 1 to the consolidated financial statements.
Premiums written including savings portions from unit-linked and index-linked life insurance
In € million
The premium volume fell slightly overall compared with the previous year due to the coronavirus pandemic after adjusting the premiums from the AXA companies acquired. Slight declines in premiums in property and casualty insurance were recorded in the maritime, aeronautical and transportation insurance business lines as well as other insurance policies due to the coronavirus. No Covid-19-related effects were observed in the health and life insurance business areas.
In the area of insurance policies against recurring premium payments, there was a pleasant increase of 3.9 per cent to €5,472.2 million (2019: €5,267.9 million). In the area of the single premium business, however, the premium volume fell by 10.9 per cent to €93.2 million (2019: €104.6 million) in line with the strategy.
Premiums written in property and casualty insurance grew by 5.7 per cent to €3,010.3 million in 2020 (2019: €2,846.8 million). In health insurance, premiums written in the reporting period increased by 3.2 per cent to €1,167.6 million (2019: €1,130.8 million). In life insurance, premiums written including savings portions from unit-linked and index-linked life insurance fell overall by 0.5 per cent to €1,387.5 million (2019: €1,394.9 million). One of the reasons for this was the subdued demand due to low interest rates and the temporary closure of our partner banking branches during the lockdown phases in 2020, especially in CEE.
The Group premiums earned, including savings portions from unit-linked and index-linked life insurance (after reinsurance) in the amount of €304.1 million (2019: €309.8 million), rose by 3.1 per cent to €5,333.7 million (2019: €5,170.8 million). The volume of premiums earned (net, in accordance with IFRSs) even grew by 3.5 per cent to €5,029.5 million (2019: €4,861.1 million).
In € million |
2020 |
2019 |
2018 |
|---|---|---|---|
Premiums written |
3,010.3 |
2,846.8 |
2,774.4 |
Insurance benefits (net) |
–1,775.1 |
–1,719.5 |
–1,690.1 |
Loss ratio (after reinsurance) |
63.2% |
64.2% |
65.4% |
Operating expenses (net) |
–970.7 |
–861.2 |
–811.0 |
Cost ratio (after reinsurance) |
34.6% |
32.2% |
31.4% |
Combined ratio (after reinsurance) |
97.8% |
96.4% |
96.8% |
Net investment income |
29.5 |
122.1 |
128.1 |
Earnings before taxes |
–67.9 |
61.4 |
120.3 |
Technical provisions (net) |
3,732.1 |
3,061.3 |
2,970.6 |
In € million |
2020 |
2019 |
2018 |
|---|---|---|---|
1,167.6 |
1,130.8 |
1,086.4 |
|
Insurance benefits (net) |
–963.1 |
–969.3 |
–908.0 |
Operating expenses (net) |
–225.0 |
–187.8 |
–183.9 |
Cost ratio (after reinsurance) |
19.3% |
16.7% |
17.0% |
Net investment income |
104.5 |
109.0 |
103.4 |
Earnings before taxes |
79.5 |
85.8 |
96.2 |
Technical provisions (net) |
3,622.8 |
3,433.9 |
3,190.9 |
In € million |
2020 |
2019 |
2018 |
|---|---|---|---|
Premiums written including savings portions from unit-linked and index-linked life insurance |
1,387.5 |
1,394.9 |
1,448.6 |
Insurance benefits (net) |
–956.4 |
–977.3 |
–1,035.7 |
Operating expenses (net) |
–370.7 |
–358.1 |
–319.8 |
Cost ratio (after reinsurance) |
27.2% |
26.1% |
22.6% |
Net investment income |
371.3 |
354.1 |
353.5 |
Earnings before taxes |
45.5 |
84.8 |
78.2 |
Technical provisions (net) |
16,442.0 |
15,588.7 |
15,483.4 |
of which technical provisions from unit-linked and index-linked life insurance (net) |
5,115.4 |
4,646.0 |
4,721.8 |
Change in insurance benefits
Insurance benefits before reinsurance (see note 9 in the consolidated financial statements) increased in the 2020 financial year by 1.4 per cent to €3,819.8 million (2019: €3,765.3 million). Consolidated insurance benefits (net) rose less strongly than the volume of premiums earned in the past year by 0.8 per cent to €3,694.6 million (2019: €3,666.1 million).
Insurance benefits (net)
In € million
In 2020 despite the extraordinary charges associated with the Covid-19 pandemic, the loss ratio after reinsurance in property and casualty insurance fell to 63.2 per cent (2019: 64.2 per cent) due to a favourable trend in basic losses. An additional loss was incurred of around €70 million mainly from the area of business interruption insurance in direct connection with Covid-19. This was counteracted by lower expenses for motor vehicle insurance due to lower mobility in 2020. However, the combined ratio after reinsurance deteriorated to 97.8 per cent (2019: 96.4 per cent) due to the higher cost ratio at Group level.
Combined ratio after reinsurance
In per cent
Operating expenses
Total consolidated operating expenses (see note 10 in the consolidated financial statements) less reinsurance commission and share of profit from reinsurance ceded rose by 11.3 per cent to €1,566.4 million in the 2020 financial year (2019: €1,407.1 million). Expenses for the acquisition of insurance less reinsurance commission received and the share of profit from reinsurance ceded in the amount of €18.5 million (2019: €17.9 million) increased slightly less than the volume of premiums earned, by 3.0 per cent to €934.9 million (2019: €907.4 million). Other operating expenses rose by 26.4 per cent to €631.5 million (2019: €499.7 million) due to higher personnel and IT costs in connection with the integration of the AXA companies in CEE in the amount of €39 million and one-off restructuring expenses of €99 million. This includes expenses amounting to around €62 million (2019: around €51 million) as part of the innovation and investment programme.
The cost ratio after reinsurance, i.e. the ratio of total operating expenses less the amounts received from reinsurance commission and share of profit from reinsurance ceded to the Group premiums earned, including savings portions from unit-linked and index-linked life insurance, increased to 29.4 per cent during the past year (2019: 27.2 per cent) as a result of the developments mentioned above. The cost ratio before reinsurance rose to 28.6 per cent (2019: 26.7 per cent).
Investments
The UNIQA Group’s investment portfolio (including investment property, financial assets accounted for using the equity method and other investments) rose by €1,694.4 million to €22,319.2 million in the 2020 financial year (31 December 2019: €20,624.8 million). The main reason for this was the first-time inclusion of the capital investment portfolio of the AXA-CEE companies.
Net investment income fell to €505.4 million (2019: €585.2 million). The reasons for this were losses in the value of shares, fixed-income securities and equity investments. In addition, gains realised from the sale of properties of around €46 million had a positive impact in 2019. No significant gains from the sale of properties were recorded in 2020. Currency effects amounting to around €15.7 million also had a negative effect on net investment income. In addition, the equity method accounting of the 14.3 per cent holding in STRABAG SE in 2020 resulted in a positive contribution to earnings of €56.0 million (2019: €57.4 million). A detailed description of net investment income can be found in the consolidated financial statements (see note 5 in the consolidated financial statements).
Net investment income declined compared with the previous year due to negative capital market developments as a result of the coronavirus pandemic. However, an upward trend was observed in the capital markets from the second quarter of 2020. Any reversals of impairment losses were recognised in other comprehensive income in the item “Profits recognised in equity from the measurement of financial instruments available for sale”.
Other income and other expenses
Other income rose by 12.6 per cent in 2020 to €216.5 million (2019: €192.4 million). Other expenses rose by 20.7 per cent to €230.5 million in the reporting period (2019: €191.0 million).
Results
The UNIQA Group’s technical result fell in 2020 by 13.5 per cent to €78.3 million (2019: €90.5 million) as a result of the increased cost burden from one-off expenses. Operating profit fell by 28.4 per cent to €247.6 million (2019: €345.9 million).
UNIQA’s earnings before taxes fell by 75.4 per cent to €57.1 million (2019: €232.0 million), primarily due to the one-off restructuring provision and impairment of goodwill. Profit/(loss) for the year also fell by 86.1 per cent to €24.3 million (2019: €175.1 million). Income tax expense fell to €32.8 million in 2020 (2019: €57.0 million).
Earnings before taxes
In € million
The consolidated profit/(loss) (i.e. proportion of the net profit for the period attributable to the shareholders of UNIQA Insurance Group AG) amounted to €19.4 million (2019: €171.0 million). Earnings per share fell as a result to €0.06 (2019: €0.56).
Earnings per share
In €
The return on equity (after taxes and non-controlling interests) fell to 0.6 per cent in the reporting period (2019: 5.4 per cent).
Return on equity
In per cent
On this basis, the Management Board will propose a dividend of €0.18 per share to the Supervisory Board and the Annual General Meeting (2019: €0.18 per share).
Dividend per share
In €
Own funds and total assets
Total equity attributable to the shareholders of UNIQA Insurance Group AG increased by €82.4 million to €3,450.1 million in the past financial year (31 December 2019: €3,367.7 million). This was due to the increased measurement of financial instruments available for sale caused by the general fall in interest rates. Non-controlling interests came to €24.8 million (31 December 2019: €19.4 million). The Group’s total assets came to €31,908.0 million as at 31 December 2020 (31 December 2019: €28,673.8 million).
Cash flow
UNIQA’s net cash flow from operating activities amounted to €167.9 million in 2020 (2019: €519.9 million). Cash flow from investment activities amounted to €–714.7 million (2019: €–526.9 million). Net cash flows from financing activities amounted to €712.8 million as a result of the issuance of two bonds (2019: €–958.9 million). Overall, cash and cash equivalents increased by €161.1 million to €640.7 million in the 2020 financial year (2019: €479.6 million).
Employees
UNIQA’s average number of employees (full-time equivalents, FTEs) rose in 2020 to 13,408 (2019: 13,038) due to the inclusion of the AXA-CEE companies. These included 4,138 (2019: 4,202) field sales employees. The number of employees in administration amounted to 9,271 (2019: 8,836).
In 2020, the Group had an average of 3,231 FTEs (2019: 2,766) in the Central Europe (CE) region – Poland, Slovakia, the Czech Republic and Hungary – as well as 2,285 FTEs (2019: 2,278) in the Southeastern Europe (SEE) region – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia and Serbia – and 1,622 FTEs (2019: 1,647) in the Eastern Europe (EE) region – Romania and Ukraine. There were 103 FTEs (2019: 112) working in Russia (RU). The average number of FTEs in the Western European markets in 2020 was 42 (2019: 42). A total of 6,125 FTEs were employed in Austria (2019: 6,193). Including the employees of the general agencies working exclusively for UNIQA, the total number of people working for the Group amounts to around 23,500.
In 2020, 60 per cent of the staff working in administrative positions at UNIQA in Austria were women (2019: 55 per cent). In sales the ratio was 80 per cent men to 20 per cent women (2019: 82 per cent men to 18 per cent women). 24.6 per cent (2019: 15.4 per cent) of employees were working part time. The average age in the past year was 44.5 years (2019: 44 years).
There was no bonus for managers or selected key employees nor was there any employee participation in the 2020 financial year due to the coronavirus pandemic.
In addition, UNIQA offers young people in training the opportunity to get to know foreign cultures and make international contacts. Currently 93 apprentices are being trained.