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 consideration: 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 international primary insurance companies and an international service company as well as investment management companies and pension funds. 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

Reinsurance – includes UNIQA Re AG (Zurich, Switzerland) 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 international service companies.

Operating segments

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In € thousand	UNIQA Austria		UNIQA International		Reinsurance		Group functions		Consolidation		Group
In € thousand	1–12/2020	1–12/2019 adjusted	1–12/2020	1–12/2019 adjusted	1–12/2020	1–12/2019	1–12/2020	1–12/2019	1–12/2020	1–12/2019	1–12/2020	1–12/2019 adjusted
Premiums written (gross), including savings portions from unit-linked and index-linked life insurance	3,837,500	3,800,819	1,705,441	1,561,242	1,162,667	1,129,178	0	0	–1,140,262	–1,118,689	5,565,346	5,372,550
Premiums earned (net), including savings portions from unit-linked and index-linked life insurance	3,076,677	3,057,035	1,200,485	1,082,632	1,056,076	1,029,297	0	0	423	1,872	5,333,662	5,170,836
Savings portions from unit-linked and index-linked life insurance (gross)	207,018	211,683	97,104	98,083	0	0	0	0	0	0	304,122	309,766
Savings portions from unit-linked and index-linked life insurance (net)	207,018	211,683	97,104	98,083	0	0	0	0	0	0	304,122	309,766

Premiums written (gross)	3,630,482	3,589,137	1,608,337	1,463,159	1,162,667	1,129,178	0	0	–1,140,262	–1,118,689	5,261,224	5,062,785

Premiums earned (net)	2,869,659	2,845,352	1,103,382	984,549	1,056,076	1,029,297	0	0	423	1,872	5,029,539	4,861,071
Premiums earned (net) – intragroup	–727,578	–704,769	–369,557	–381,412	1,096,712	1,084,309	0	0	423	1,872	0	0
Premiums earned (net) – external	3,597,237	3,550,121	1,472,938	1,365,961	–40,636	–55,012	0	0	0	0	5,029,539	4,861,071
Technical interest income	294,250	300,108	27,875	31,130	0	0	0	0	0	0	322,125	331,238
Other insurance income	4,977	3,842	26,636	20,576	7,606	216	13,288	349	–10,839	–3,469	41,669	21,514
Insurance benefits	–2,383,735	–2,426,336	–608,096	–541,556	–700,605	–700,442	2,318	3,354	–4,461	–1,120	–3,694,579	–3,666,100
Operating expenses	–719,347	–635,734	–466,354	–414,880	–310,966	–303,674	–80,049	–48,513	10,316	–4,315	–1,566,399	–1,407,116
Other technical expenses	–13,405	–14,873	–42,579	–40,075	–14,801	–15,430	–163	2,345	16,887	17,931	–54,061	–50,102
Technical result	52,399	72,360	40,864	39,745	37,311	9,966	–64,606	–42,466	12,327	10,898	78,295	90,504

Net investment income	160,801	424,126	106,084	61,587	6,899	29,450	96,202	356,284	135,424	–286,202	505,409	585,244
Income from investments	486,190	539,199	132,427	89,737	37,579	43,163	321,071	482,698	–203,581	–385,839	773,686	768,959
Expenses from investments	–338,250	–133,651	–26,599	–28,319	–30,680	–13,713	–225,227	–130,954	286,791	58,495	–333,965	–248,143
Financial assets accounted for using the equity method	12,861	18,578	256	169	0	0	358	4,540	52,213	41,141	65,689	64,428
Other income	1,592	1,565	46,161	23,334	18,013	2,540	180,237	194,271	–29,455	–29,351	216,548	192,359
Reclassification of technical interest income	–294,250	–300,108	–27,875	–31,130	0	0	0	0	0	0	–322,125	–331,238
Other expenses	–9,527	–11,470	–63,793	–15,400	–1,031	–5,544	–184,942	–186,557	28,796	27,952	–230,497	–191,019
Non-technical result	–141,384	114,113	60,577	38,392	23,881	26,446	91,498	363,997	134,764	–287,601	169,335	255,346

Operating profit/(loss)	–88,985	186,473	101,441	78,136	61,192	36,412	26,892	321,532	147,091	–276,703	247,631	345,850
Amortisation of VBI and impairment of goodwill	–1,786	–1,786	–123,947	–57,377	0	0	0	0	–84	0	–125,817	–59,162
Finance cost	–28,287	–25,102	–4,530	–4,743	–2,901	–2,901	–75,428	–66,511	46,389	44,614	–64,758	–54,643
Earnings before taxes	–119,058	159,585	–27,036	16,017	58,291	33,511	–48,537	255,021	193,396	–232,089	57,056	232,045

Combined ratio (property and casualty insurance, after reinsurance)	98.7%	93.9%	93.3%	95.0%	95.8%	97.4%	n/a	n/a	n/a	n/a	97.8%	96.4%
Cost ratio (after reinsurance)	23.4%	20.8%	38.8%	38.3%	29.4%	29.5%	n/a	n/a	n/a	n/a	29.4%	27.2%

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).

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.

Reinsurance

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

Gross (premiums written)

The gross (premiums written) includes details on the items in the balance sheet and the income statement, excluding the proportion from 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.

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

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

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.

Equity method

Investment in associates is accounted for using this method. The value carried corresponds to the Group’s proportional equity in these companies. In the case of shares in companies that prepare their own consolidated financial statements, their Group equity is assessed accordingly in each case. Within the scope of ongoing measurement, this value must be updated to incorporate proportional changes in equity with the share of net income/(loss) being allocated to consolidated profit/(loss).

Combined ratio

Total of operating expenses and insurance benefits divided by the (net) premiums earned in property and casualty insurance.

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.