23. Capital management

Capital management takes place with due regard to the regulatory and statutory requirements. After came into force on 1 January 2016, the definitions and methods used to calculate available own funds, as well as risk capital requirements and management standards, were replaced by  II standards.

In the context of Group management, the appropriate coverage of the solvency capital requirement in accordance with on a consolidated basis is constantly monitored. Active capital management is implemented in order to ensure that the individual Group companies and the Group as a whole have a reasonable capital base at all times. Aside from the five-year planning, another objective of active capital management is also to actively guarantee UNIQA’s financial capacity, including under difficult economic conditions, in order to safeguard the continued existence of the insurance business.

In addition to the capital/minimum capital requirements, UNIQA has set itself a target capitalisation for the Group of at least 170 per cent. The solvency ratio is managed using strategic measures which result in a reduction in the capital requirements and/or increase the amount of existing capital.

UNIQA also takes the potential impact on the rating by recognised rating agencies into account in the capital management process. Standard & Poor’s (S&P) currently applies a credit rating of “A–” to UNIQA Insurance Group AG. In the S&P capital model UNIQA achieves significant surplus coverage for the current level. UNIQA assumes that it will secure its surplus coverage of the AA level at a minimum in the long term and will also improve the rating in line with the corporate strategy as a result.

UNIQA Österreich Versicherungen AG and UNIQA Re AG each have a rating of “A”. The bond issued in 2013 (€350.0 million  2, first call date: 31 July 2023), the subordinated capital bond issued in 2015 (€500.0 million Tier 2, first call date: 27 July 2026) and the subordinated capital bond issued in 2020 (€200.0 million  2, first call date: 9 July 2025) are rated “BBB” by S&P. The agency rates the outlook for all companies as “stable”.

Further quantitative and qualitative information related to capital management according to Solvency II is included in the “Solvency and Financial Condition Report” (SFCR).

Solvency II
European Union Directive on publication obligations and solvency rules for the equity base of an insurance company.
Solvency
An insurance company’s equity base.
Solvency II
European Union Directive on publication obligations and solvency rules for the equity base of an insurance company.
Solvency
An insurance company’s equity base.
Supplementary capital
Paid-in capital that is provided to the insurance company for a minimum of five years with a waiver of the right to cancel under the relevant agreement, and for which interest may only be paid provided that this is covered by the annual net profit.
Tiers
Classification of the basic own fund components into Tier 1, Tier 2 and Tier 3 capital using the own funds list in accordance with the criteria specified in the EU implementing regulation. If a component of basic own funds is not included in the list, an entity must carry out its own assessment and decide on a classification.
Tiers
Classification of the basic own fund components into Tier 1, Tier 2 and Tier 3 capital using the own funds list in accordance with the criteria specified in the EU implementing regulation. If a component of basic own funds is not included in the list, an entity must carry out its own assessment and decide on a classification.