Group business development

  • written (including savings portions from unit-linked and index-linked life insurance) rose by 14.2 per cent to €6,358.0 million
  • improved from 97.8 per cent to 93.7 per cent
  • Finance costs rose to €134.8 million due to one-off effects from bond buybacks in the fourth quarter of 2021
  • Earnings before taxes at €382.3 million in 2021 due to the very strong performance
  • Proposed dividend of €0.55 per share for 2021
UNIQA Group

In € million

2021

2020

2019

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

6,358.0

5,565.3

5,372.6

Cost ratio (net after reinsurance)

27.4%

29.4%

27.2%

Combined ratio (net after reinsurance)

93.7%

97.8%

96.4%

Earnings before taxes

382.3

57.1

232.0

Consolidated profit/(loss) (proportion of the net profit for the period attributable to the shareholders of UNIQA Insurance Group AG)

314.7

19.4

171.0

Changes in premiums

UNIQA’s total premium volume increased in 2021 – taking into account the savings portions from unit-linked and index-linked life insurance in the amount of €324.6 million (2020: €304.1 million) – by 14.2 per cent to €6,358.0 million (2020: €5,565.3 million). The main driver of this was the full effect of the initial consolidation of the former AXA CEE companies, which took place in the fourth quarter of 2020.

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

In € million

Premiums written including savings portions from unit-linked and index-linked life insurance (bar chart)

In the area of insurance policies with recurring premium payments, there was an encouraging increase of 13.4 per cent to €6,207.8 million (2020: €5,472.2 million). In the single premium business, the premium volume also increased to €150.2 million (2020: €93.2 million).

in property and casualty insurance increased by 15.9 per cent to €3,489.5 million in 2021 (2020: €3,010.3 million). In health insurance, written rose by 5.0 per cent to €1,226.5 million in the reporting period (2020: €1,167.6 million). In life insurance, the premiums written including savings portions from the unit-linked and index-linked life insurance increased by 18.3 per cent to €1,642.0 million (2020: €1,387.5 million).

The Group’s including savings portions from unit-linked and index-linked life insurance (after ) amounting to €324.6 million (2020: €304.1 million) rose by 12.9 per cent to €6,022.2 million (2020: €5,333.7 million). The volume of premiums earned (, in accordance with ) increased by 13.3 per cent to €5,697.6 million (2020: €5,029.5 million).

Property and casualty insurance

In € million

2021

2020

2019

Premiums written

3,489.5

3,010.3

2,846.8

Insurance benefits (net)

–1,965.1

–1,775.1

–1,719.5

Loss ratio (after reinsurance)

61.3%

63.2%

64.2%

Operating expenses (net)

–1,037.8

–970.7

–861.2

Cost ratio (net after reinsurance)

32.4%

34.6%

32.2%

Combined ratio (net after reinsurance)

93.7%

97.8%

96.4%

Net investment income

135.2

29.5

122.1

Earnings before taxes

107.3

–67.9

61.4

Technical provisions (net)

3,891.2

3,732.1

3,061.3

Health insurance

In € million

2021

2020

2019

Premiums written

1,226.5

1,167.6

1,130.8

Insurance benefits (net)

–997.7

–963.1

–969.3

Operating expenses (net)

–206.6

–225.0

–187.8

Cost ratio (net after reinsurance)

17.0%

19.3%

16.7%

Net investment income

163.1

104.5

109.0

Earnings before taxes

173.0

79.5

85.8

Technical provisions (net)

3,812.8

3,622.8

3,433.9

Life insurance

In € million

2021

2020

2019

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

1,642.0

1,387.5

1,394.9

Insurance benefits (net)

–1,141.4

–956.4

–977.3

Operating expenses (net)

–404.1

–370.7

–358.1

Cost ratio (net after reinsurance)

25.2%

27.2%

26.1%

Net investment income

349.6

371.3

354.1

Earnings before taxes

102.0

45.5

84.8

Technical provisions (net)

15,907.0

16,442.0

15,588.7

of which technical provisions from unit-linked and index-linked life insurance (net)

5,028.5

5,115.4

4,646.0

Change in insurance benefits

before reinsurance (see note 8 in the consolidated financial statements) increased by 14.3 per cent to €4,365.5 million in the 2021 financial year (2020: €3,819.8 million). Consolidated insurance benefits (net) rose less than the volume of in the past year by 11.1 per cent to €4,104.2 million (2020: €3,694.6 million).

Insurance benefits (net)

In € million

Insurance benefits (net) (bar chart)

Despite a significant burden from natural catastrophe and major losses due to favourable basic loss development, the after in property and casualty insurance decreased to 61.3 per cent in 2021 (2020: 63.2 per cent). At around €94 million, the claim load from natural catastrophes was far above the average of recent years. In particular, there were decreasing claims expenses in the area of motor vehicle insurance due to lower mobility levels in 2021 in connection with Covid-19. The combined ratio after reinsurance therefore improved strongly to 93.7 per cent due to the lower at Group level (2020: 97.8 per cent).

Combined ratio after reinsurance

In percent

Combined ratio after reinsurance (bar chart)

Operating expenses

Total consolidated (see note 9 in the consolidated financial statements), less reinsurance commissions received and the share of profit from reinsurance ceded, rose by 5.2 per cent to €1,648.5 million in the 2021 financial year (2020: €1,566.4 million). The expenses for the acquisition of insurance less reinsurance commissions received and the share of profit from reinsurance ceded amounting to €23.6 million (2020: €18.5 million) increased less than the volume of premiums earned by 10.1 per cent to €1,029.2 million (2020: €934.9 million). Other operating expenses decreased by 1.9 per cent to €619.4 million (2020: €631.5 million). This includes expenses amounting to around €60 million (2020: around €62 million) as part of the innovation and investment programme.

A one-off restructuring provision of around €100 million was included in the 2020 financial year affecting costs. However, the full costs of the former AXA CEE companies amounting to more than €100 million are included in 2021 due to the full-year consolidation. The decrease in is therefore due in part to the initial successes from the cost 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 27.4 per cent during the past year as a result of the developments mentioned above (2020: 29.4 per cent). The before reinsurance fell to 26.4 per cent (2020: 28.6 per cent).

Investments

The UNIQA Group’s investment portfolio (including investment property, financial assets accounted for using the and other investments) decreased by 2.4 per cent to €21,785.0 million in the 2021 financial year (31 December 2020: €22,319.2 million).

investment income increased by 28.2 per cent to €648.0 million (2020: €505.4 million). This was mainly due to realisations from equity funds, fixed-income securities and, to a lesser extent, gains from the sale of properties. Currency effects amounting to €8.8 million had a negative impact on net investment income. In addition, the equity method accounting of the 15.3 per cent holding in STRABAG SE in 2021 resulted in a positive contribution to earnings of €70.5 million (2020: €56.0 million). A detailed description of net investment income can be found in the consolidated financial statements (see note 4 in the consolidated financial statements).

Other income and other expenses

Other income rose by 38.7 per cent in 2021 to €300.4 million (2020: €216.5 million). Other expenses grew less strongly in the reporting year by 8.7 per cent to €250.6 million (2020: €230.5 million).

Results

The UNIQA Group’s technical result increased by 167.2 per cent to €209.2 million in 2021 due to the improved cost development and the favourable claim load (2020: €78.3 million). Operating profit increased by 137.4 per cent to €588.0 million (2020: €247.6 million).

Accordingly, UNIQA’s earnings before taxes increased almost sevenfold to €382.3 million (2020: €57.1 million). Profit/(loss) for the year also increased in the reporting year to €317.9 million (2020: €24.3 million). Income tax expense increased to €64.4 million in 2021 due to the good result (2020: €32.8 million).

Earnings before taxes

In € million

Earnings before taxes (bar chart)

The consolidated profit/(loss) (share of the profit/(loss) for the period attributable to the shareholders of UNIQA Insurance Group AG) amounted to €314.7 million (2020: €19.4 million). Earnings per share rose as a result to €1.03 (2020: €0.06).

Earnings per share

In €

Earnings per share (line chart)

The (after taxes and ) rose to 9.3 per cent in the reporting year (2020: 0.6 per cent).

Operating return on equity

In percent

Return on equity (bar chart)

On this basis, the Management Board will propose to the Supervisory Board and the Annual General Meeting the distribution of a dividend of 55 cents per share (2020: 18 cents per share).

Dividend per share

In €

Dividend per share (bar chart)

Own funds and total assets

The equity attributable to the shareholders of UNIQA Insurance Group AG fell in the past financial year by €146.5 million to €3,303.6 million (31 December 2020: €3,450.1 million). The reason for this was the fall in the measurement of financial instruments available for sale through the increase in the general interest rate level. Non-controlling interests amounted to €19.7 million (31 December 2020: €24.8 million). The Group’s total assets came to €31,547.8 million as at 31 December 2021 (31 December 2020: €31,908.0 million).

Cash flow

UNIQA’s net cash flow from operating activities amounted to €726.1 million in 2021 (2020: €167.9 million). Cash flow from investment activities amounted to €­–653.2 million (2020: €–714.7 million). Net cash flows from financing activities amounted to €–127.9 million (2020: €712.8 million). Overall, cash and cash equivalents decreased slightly by €48.1 million in the 2021 financial year to €592.6 million (2020: €640.7 million).

Employees

UNIQA’s average number of employees (full-time equivalents, FTEs) increased to 14,849 FTEs in 2021 due to the inclusion of the AXA CEE companies (2020: 13,408). This includes 4,005 FTEs (2020: 4,138) as field sales employees. The number of employees in administration amounted to 10,844 FTEs (2020: 9,271).

In the Central Europe (CE) region – Poland, Slovakia, the Czech Republic and Hungary – the Group employed an average of 4,887 FTEs in 2021 (2020: 3,231), while 2,286 FTEs (2020: 2,285) were employed in the Southeastern Europe (SEE) region – Albania, Bosnia and Herzegovina, Bulgaria, Kosovo, Croatia, Montenegro, North Macedonia and Serbia – and 1,599 FTEs (2020: 1,622) in the Eastern Europe (EE) region of Romania and Ukraine. There were 110 FTEs working in Russia (RU) (2020: 103). The average number of FTEs in the Western European markets in 2021 was 42 (2020: 42). A total of 5,925 FTEs were employed in Austria (2020: 6,125). Including the employees of the general agencies working exclusively for UNIQA, the total number of people working for the Group amounts to around 22,400.

In 2021, 60 per cent (2020: 60 per cent) of the staff working in administrative positions at UNIQA in Austria were women. In sales, the ratio was 80 per cent men to 20 per cent women (2020: 80 per cent men to 20 per cent women). 17.3 per cent (2020: 24.6 per cent) of employees were working part-time. The average age in the past year was 44 years (2020: 44.5 years).

In Austria almost all employees have a share in the company’s success through some form of variable participation programme. There is a bonus system in place for managers and selected key employees on the one hand and a profit-sharing scheme for eligible employees on the other. In 2021, around 13 per cent of employees participated in the bonus programme for managers and selected key employees, a variable remuneration system that is linked to both the success of the company and personal performance (2020: no bonus in place). Around 73 per cent of employees will participate in the profit-sharing scheme for 2021 (2020: no employee participation). The amount of the profit-sharing budget depends on the achievement of a profit target, and distributions will only take place after the company’s success has been determined in the following year.

In addition, UNIQA offers young people in training the opportunity to get to know foreign cultures and make international contacts. Currently 88 apprentices are being trained.

Premiums
Total premiums written. All premiums from contracts written in the financial year from business acquired by the company directly and as inward reinsurance.
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.
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 premiums not yet written are taken into account, along with the gross premium volume written attributable to the financial year.
Reinsurance
An insurance company insures part of its risk via another insurance company.
Net
The part of risk which is assumed but that the insurer/reinsurer does not cede as reinsurance.
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).
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.
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 premiums not yet written are taken into account, along with the gross premium volume written attributable to the financial year.
Loss ratio
The ratio of insurance benefits in property and casualty insurance to premiums earned.
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 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.
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.
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).
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).
Net
The part of risk which is assumed but that the insurer/reinsurer does not cede as reinsurance.
Return on equity (ROE)
The return on equity is the ratio of the profit/(loss) to the average equity, after deducting non-controlling interests in each case.
Non-controlling interests
Shares in the profit/(loss) that are not attributable to the Group but rather to companies outside the Group that hold shares in affiliated companies.