UNIQA bonds: Solidly financed

Interest burden lowered, term extended

After equity, subordinated capital takes second place in the capitalisation of our insurance business. Here we have recently been able to achieve a significant structural improvement: in December 2021, we took advantage of market conditions and repurchased outstanding subordinated bonds with a nominal value of €375 million in parallel with the issue of a green bond. This not only enabled us to extend the maturity of our financial liabilities, but above all significantly reduced the interest burden in the coming years. The buy-back was carried out at a premium on the nominal amount. We have already fully reflected these additional finance costs in the balance sheet in the fourth quarter of 2021.

Long-term financing at favourable conditions

In total, UNIQA had subordinated bonds with a nominal value of €1,050 million outstanding as at 31 December 2021. After the transaction at year-end 2021, the weighted average coupon of these subordinated bonds is around 4.3 per cent. Combined with the long maturity, the low interest rate makes these capital instruments very attractive. In addition, there is currently a senior bond with a nominal value of €600 million on the market, which we issued in connection with the acquisition of the former AXA companies in CEE.

Green bonds – active investments in a sustainable future

Within the scope of issuing our green bonds, we have committed ourselves to making investments in equal amounts in renewable energy projects (wind and solar parks) as well as in sustainable waste management (waste separation, recycling including energy production) and mobility (rail transport, local public transport). The performance of our green bonds impressively proves how much sustainable investment forms are sought after in the portfolios of many investors. In terms of climate protection, we see a clear and gratifying trend here: sustainability has become a determining factor in investment decisions.

Standard & Poor’s confirms excellent capitalisation

The current A– rating from Standard & Poor’s (S&P) for the UNIQA Insurance Group reflects our financial strength. This rating is based on the profitable business model, market leadership in private health insurance in Austria and first-class capitalisation, which has already reached the AAA Level in the S&P model. The currently outstanding subordinated bonds are fully recognised as capital by S&P and are therefore a long-term component of our capital strategy.