12. Property, plant and equipment

Property, plant and equipment are accounted for using the cost model.

Gains on the disposal of property, plant and equipment are recorded under the item “Other insurance income”, while losses are recorded under “Other technical expenses”.

If the use of a property changes and an owner-occupied property becomes an investment property, the property is reclassified as investment land and buildings with the carrying amount at the date of the change.

Property, plant and equipment are depreciated on a straight line basis over a useful life for buildings of 15 to 80 years and for technical systems and operating and office equipment of 2 to 20 years. Depreciation methods, useful lives and residual values are reviewed on every reporting date and adjusted if necessary. The depreciation charges for property, plant and equipment are recognised in profit/(loss) for the period on the basis of allocated under the items , “Operating expenses” and investment income” so that the expenses and earnings are distributed on the basis of their causation.

Leases

There are around 1,200 contracts throughout the entire Group which fall within the scope of the standard and for which UNIQA is lessee. Nearly all contracts are simple standard contracts. They mainly relate to real estate and in part to operating and office equipment. A significant portion of the capitalised rights of use consists of a small number of contracts concluded for an indefinite period. For these contracts, estimates were made on the basis of the most probable assumptions regarding the term and the exercise of termination options. The terms used to calculate these contracts are up to 40 years. The average term of the remaining contracts is between 3 and 5 years.

The discount rate used to determine the liability consists of the risk-free interest rate adjusted for country risk, creditworthiness, the quality of collateral and a repayment factor.

Leases with a contractual term of less than twelve months and low value assets were not recognised. Leases where the underlying asset value does not exceed a new value of €5 thousand and those with a contract term of less than twelve months were not recognised.

Acquisition costs

In € thousand

Land and buildings for own use

Usage rights from land and buildings for own use

Other property, plant and equipment

Usage rights from other property, plant and equipment

Total

At 1 January 2020

414,585

70,584

238,429

1,757

725,355

Currency translation

–5,268

–409

–2,776

–62

–8,514

Change in basis of consolidation

0

27,332

3,128

2,584

33,044

Additions

1,907

31,106

21,331

119

54,463

Disposals

–33,048

–29,498

–8,831

–249

–71,626

Reclassifications

14,355

0

73

0

14,428

At 31 December 2020

392,532

99,115

251,354

4,148

747,149

At 1 January 2021

392,532

99,115

251,354

4,148

747,149

Currency translation

660

442

709

36

1,847

Change in basis of consolidation

0

0

920

0

920

Additions

2,668

46,290

23,963

533

73,454

Disposals

–3,013

–17,920

–20,272

–327

–41,532

Reclassifications

–24,858

0

4

0

–24,854

At 31 December 2021

367,988

127,928

256,679

4,390

756,984

Accumulated depreciation and impairment losses

In € thousand

Land and buildings for own use

Usage rights from land and buildings for own use

Other property, plant and equipment

Usage rights from other property, plant and equipment

Total

At 1 January 2020

–186,048

–9,937

–176,947

–643

–373,575

Currency translation

1,910

112

1,694

27

3,745

Additions from depreciation

–11,142

–13,066

–16,673

–736

–41,617

Disposals

27,637

599

6,561

235

35,031

Reclassifications

–5,986

0

–9

0

–5,994

At 31 December 2020

–173,628

–22,292

–185,373

–1,117

–382,410

At 1 January 2021

–173,628

–22,292

–185,373

–1,117

–382,410

Currency translation

–216

–100

–511

3

–823

Change in basis of consolidation

0

0

1

0

1

Additions from depreciation

–8,164

–16,491

–17,456

–1,210

–43,321

Disposals

1,949

9,590

14,386

273

26,198

Reclassifications

8,866

0

–1

0

8,865

At 31 December 2021

–171,192

–29,294

–188,955

–2,050

–391,491

Carrying amounts

In € thousand

Land and buildings for own use

Usage rights from land and buildings for own use

Other property, plant and equipment

Usage rights from other property, plant and equipment

Total

At 1 January 2020

228,537

60,647

61,482

1,114

351,780

At 31 December 2020

218,904

76,823

65,981

3,031

364,739

At 31 December 2021

196,796

98,634

67,723

2,340

365,493

The fair values of the land and buildings for own use are derived from expert reports and are comprised as follows:

Fair values

In € thousand

Property and casualty insurance

Health
insurance

Life
insurance

Total

At 31 December 2020

189,887

38,566

205,250

433,703

At 31 December 2021

192,028

16,346

199,205

407,578

Other property, plant and equipment refers mainly to technical systems and operating and office equipment.

Amounts recognised in consolidated financial statements

In € thousand

2021

2020

Amounts recognised in the consolidated income statement

 

 

Interest on lease liabilities

998

759

Expenses relating to short-term leases

2,317

1,405

Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets

2,764

4,838

Amounts recognised in the consolidated statement of cash flows

 

 

Cash outflows for leases

–16,906

–13,768

Operating expenses
This item includes acquisition expenses as well as 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.
Net
The part of risk which is assumed but that the insurer/reinsurer does not cede as reinsurance.