Operating segments

UNIQA International

  • (including savings portions from unit-linked and index-linked life insurance) rose to €1,705.4 million
  • improved to 93.3 per cent
  • The technical result rose to €40.9 million
  • Earnings before taxes at €–27.0 million due to impairment of goodwill

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UNIQA International

In € million

2020

2019

2018

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

1,705.4

1,561.2

1,564.6

(after )

38.8%

38.3%

35.6%

(after reinsurance)

93.3%

95.0%

95.5%

Earnings before taxes

–27.0

16.0

55.1

Changes in premiums

written including savings portions from unit-linked and index-linked life insurance increased in the UNIQA International segment in 2020 by 9.2 per cent to €1,705.4 million (2019: €1,561.2 million) as a result of the acquisition of AXA companies in Poland, the Czech Republic and Slovakia. While recurring premiums increased by 10.8 per cent to €1,642.1 million (2019: €1,481.8 million), single fell as planned by 20.3 per cent to €63.4 million (2019: €79.5 million). That means that in 2020 the international companies contributed a total of 30.6 per cent (2019: 29.1 per cent) to total Group premiums.

Including savings portions from unit-linked and index-linked life insurance, the segment’s volume of amounted to €1,200.5 million (2019: €1,082.6 million). The volume of premiums earned (net, in accordance with ) increased in 2020 by 12.1 per cent to €1,103.4 million (2019: €984.5 million).

While grew in property and casualty insurance by 10.7 per cent to €1,192.6 million (2019: €1,076.9 million), they rose by 4.5 per cent to €77.9 million in health insurance (2019: €74.6 million). In life insurance, premiums written (including savings portions from unit-linked and index-linked life insurance) rose by 6.1 per cent to €434.9 million (2019: €409.8 million).

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, in accordance with IFRSs) rose by 14.4 per cent to €702.5 million (2019: €614.1 million), while in health insurance they grew by 11.1 per cent to €74.4 million (2019: €67.0 million). In life insurance, they increased by 7.5 per cent to €326.4 million (2019: €303.5 million). Including savings portions from unit-linked and index-linked life insurance, the volume of premiums earned in life insurance amounted to €423.5 million (2019: €401.6 million).

In Central Europe (CE) – which includes Poland, Slovakia, the Czech Republic and Hungary – premiums written including savings portions from unit-linked and index-linked life insurance increased in the 2020 financial year by 21.2 per cent to €1,143.5 million due to the inclusion of the AXA-CEE companies (2019: €943.7 million). In Eastern Europe (EE), comprising Romania and Ukraine, they fell by 4.1 per cent to €193.1 million (2019: €201.5 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 fell in 2020 by 9.4 per cent to €289.5 million (2019: €319.4 million). In Russia (RU), they fell by 19.3 per cent to €71.4 million (2019: €88.5 million). They remained stable in Western Europe (WE) – Liechtenstein and Switzerland – at €8.0 million (2019: €8.1 million).

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Property and casualty insurance

In € million

2020

2019

2018

written

1,192.6

1,076.9

1,067.4

(net)

–386.2

–347.6

–339.2

Loss ratio (after )

55.0%

56.6%

58.0%

(net)

–269.4

–235.7

–219.6

Cost ratio (after reinsurance)

38.3%

38.4%

37.5%

Combined ratio (after reinsurance)

93.3%

95.0%

95.5%

Net investment income

34.2

25.3

23.8

Earnings before taxes

–37.2

–30.5

17.5

Technical provisions (net)

1,275.9

678.6

653.7

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Health insurance

In € million

2020

2019

2018

77.9

74.6

77.6

Insurance benefits (net)

–42.2

–38.8

–41.3

Operating expenses (net)

–27.4

–21.3

–24.7

(after reinsurance)

36.8%

31.8%

37.5%

Net investment income

0.0

0.4

0.5

Earnings before taxes

4.5

7.1

0.2

Technical provisions (net)

46.0

44.8

37.2

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Life insurance

In € million

2020

2019

2018

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

434.9

409.8

419.7

(net)

–179.8

–155.1

–181.4

(net)

–169.6

–157.9

–132.4

Cost ratio (after reinsurance)

40.0%

39.3%

32.4%

Net investment income

71.8

35.9

57.5

Earnings before taxes

5.7

39.4

37.5

Technical provisions (net)

2,651.6

1,654.4

1,577.7

Changes in insurance benefits

Net at UNIQA International increased in 2020 by 12.3 per cent to €608.1 million (2019: €541.6 million). They rose by 11.1 per cent in property and casualty insurance to €386.2 million (2019: €347.6 million). In health insurance, they grew 8.6 per cent to reach €42.2 million (2019: €38.8 million). In life insurance, they also increased by 15.9 per cent to €179.8 million (2019: €155.1 million). This pushed the loss ratio in property and casualty insurance down to 55.0 per cent in 2020 (2019: 56.6 per cent), while the combined ratio after in the UNIQA International segment improved to 93.3 per cent (2019: 95.0 per cent).

In the Central Europe region, insurance benefits rose by 33.8 per cent in 2020 to €372.5 million (2019: €278.4 million), while in the Eastern Europe region, they increased by 14.5 per cent to €63.7 million (2019: €55.6 million). In Southeastern Europe, they decreased by 15.9 per cent to €115.6 million (2019: €137.5 million). At €54.9 million, benefits in Russia were 20.6 per cent below the previous year’s level (2019: €69.2 million). In Western Europe, they rose to €1.3 million (2019: €0.8 million).

Operating expenses

less reinsurance commissions received and the share of profit from ceded in the amount of €129.2 million (2019: €133.0 million) increased in the 2020 financial year by 12.4 per cent to €466.4 million (2019: €414.9 million). They rose 14.3 per cent in property and casualty insurance to €269.4 million (2019: €235.7 million), while in health insurance they rose by 28.4 per cent to €27.4 million (2019: €21.3 million). In life insurance, they increased by 7.4 per cent to €169.6 million (2019: €157.9 million).

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 38.8 per cent during the past year (2019: 38.3 per cent).

In Central Europe, less reinsurance commissions received and the share of profit from reinsurance ceded rose by 34.6 per cent to €256.9 million (2019: €190.9 million) in the reporting period. In Eastern Europe, they fell by 17.0 per cent to €69.3 million (2019: €83.5 million). They remained stable in Southeastern Europe at €101.5 million (2019: €101.3 million). In Russia, costs fell by 18.4 per cent to €13.4 million (2019: €16.4 million), while in Western Europe they also dropped by 32.4 per cent to €1.4 million (2019: €2.1 million). In administration (UNIQA International AG), costs rose by 15.4 per cent to €23.8 million (2019: €20.7 million).

Net investment income

The segment’s net investment income increased in 2020 by 72.3 per cent to €106.1 million (2019: €61.6 million).

Earnings before taxes

Despite the improvement in the technical result, earnings before taxes in the UNIQA International segment fell to €–27.0 million due to the impairment of goodwill (2019: €16.0 million). Earnings before taxes in property and casualty insurance therefore fell to €–37.2 million (2019: €–30.5 million), in health insurance they fell to €4.5 million (2019: €7.1 million). Lastly, in life insurance, earnings before taxes fell to €5.7 million (2019: €39.4 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 of operating expenses and insurance benefits divided by 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.
Cost ratio
Ratio of total operating 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).
Reinsurance
An insurance company insures part of its risk via another insurance company.
Combined ratio
Total of operating expenses and insurance benefits divided by 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.
Premiums
Total premiums written. All premiums from contracts written in the financial year from business acquired by the company directly and as inward reinsurance.
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.
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.
Cost ratio
Ratio of total operating 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).
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.
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.
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 operating 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.