• Acquisition costs

    The amount paid to acquire an asset in cash or cash equivalents or the fair value of another form of compensation at the time of acquisition.

  • Affiliated companies

    The parent company and its subsidiaries are affiliated companies. Subsidiaries are entities controlled by UNIQA.

  • Amortised cost

    Amortised costs are costs of acquisition less permanent impairment (e.g. ongoing depreciation and amortisation).

  • Asset allocation

    The structure of the investments, i.e. the proportional composition of the overall investments made up of the different types of investment (e.g. equities, fixed-income securities, equity investments, land and buildings, money market instruments).

  • Asset liability management

    Management concept whereby decisions related to company assets and the equity and liabilities are coordinated. Strategies related to the assets and the equity and liabilities are formulated, implemented, monitored and revised with this in a continuous process in order to attain the financial objectives given the risk tolerances and restrictions specified.

  • 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 contractual regulations.

  • Available-for-sale financial assets

    The available-for-sale financial assets include financial assets that are neither due to be held to maturity, nor have been acquired for short-term trading purposes. Available-for-sale financial assets are measured at fair value. Fluctuations in value are recognised in other comprehensive income in the consolidated statement of comprehensive income.


  • Benchmark method

    An accounting and measurement method preferred within the scope of IFRS accounting.

  • Best estimate

    Calculation based on the best estimate. This is the probability-weighted average of future cash flows taking into account the expected present value and using the relevant risk-free yield curve.


  • Combined ratio

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

  • Corporate governance

    Corporate governance refers to the legal and factual framework for managing and monitoring companies.Corporate governance regulations are used in order to ensure transparency and thereby boost confidence in responsible company management and controls based around added value.

  • 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).


  • Deferred acquisition costs

    These include the costs of the insurance company incurred in connection with the acquisition of new or the extension of existing contracts. Costs such as acquisition commissions as well as costs for processing applications and risk assessments are some of the items to be recorded here.

  • Direct insurance/insurance business acquired with the company itself

    This relates to those contracts that a direct insurer enters into with private individuals or companies. The opposite of this is insurance acquired as a reinsurer (indirect business) for business acquired from another primary insurer or a reinsurer.

  • Duration

    Duration refers to the weighted average term of an interest-rate-sensitive investment or of a portfolio and is a measure of risk for the sensitivity of investments in the event of changes to interest rates.


  • ECM

    Economic Capital Model. UNIQA assessment based on the EIOPA standard formula for calculating the risk capital requirement with the deviations of risk exposure for EEA (European Economic Area) government bonds, treatment of asset-backed securities and using the partial internal model for property and casualty insurance.

  • Economic capital requirement (ECM)

    Risk capital requirement that results from the economic capital model.

  • ECR ratio

    Economic capital requirement ratio. Ratio of eligible capital (own funds) to risk capital according to the UNIQA Economic Capital Model. It represents a solvency ratio according to internal calculation methodology.

  • 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).


  • Fair value

    The fair value is the price that would be collected in an ordinary business transaction between market participants for the sale of an asset or that would be paid for transferring a liability.

  • FAS

    US Financial Accounting Standards that set out the details on US GAAP (Generally Accepted Accounting Principles).


  • 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.


  • Hedging

    Hedging against unwanted changes in exchange rates or prices using an appropriate offsetting item, particularly derivative financial instruments.


  • IASs

    International Accounting Standards.

  • 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.

  • Insurance provision

    Provision in the amount of the existing obligation to pay insurance benefits and reimbursements, predominantly in life and health insurance. The provision is determined using actuarial methods as a balance of the present value of future obligations less the present value of future premiums.


  • Loss ratio

    The ratio of insurance benefits in property and casualty insurance to premiums earned.


  • Minimum capital requirement (MCR)

    The minimum level of security below which the eligible basic own funds should not fall. The MCR is calculated using a formula in relation to the solvency capital requirement.


  • Net

    The part of risk which is assumed but that the insurer/reinsurer does not cede as reinsurance.

  • 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.


  • 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.

  • Overall solvency needs (OSN)

    Designates the company’s individual risk assessment and the resulting capital requirements. Corresponds to the ECR at UNIQA.

  • Own risk and solvency assessment (ORSA)

    The company’s own forward-looking risk and solvency assessment process. It forms an integral part of corporate strategy and the planning process – but is also part of the overall risk management strategy.


  • (Partial) internal model

    Internally generated model developed by the insurance or reinsurance entity concerned and at the instruction of the FMA to calculate the solvency capital requirement or relevant risk modules (on a partial basis).


  • 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.

  • 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.

  • Profit participation

    Policyholders have a reasonable right under statutory and contractual regulations to the company’s surplus profits generated in life and health insurance. The level of this profit participation is determined again each year.

  • Provision for premium refunds and profit participation

    The part of the surplus set aside for future distribution to the policyholders is placed in the provisions for premium refunds or profit participation. Deferred amounts are also included in the provision.

  • Provision for unsettled claims

    Also known as a claims reserve; takes into account obligations from claims that have already occurred as at the reporting date but which have not yet been settled in full.


  • Reinsurance premiums ceded

    Proportion of premiums to which the reinsurer is entitled as a result of assuming certain risks within the scope of reinsurance coverage.

  • Reinsurance

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

  • Retrocession

    Retrocession means reinsurance of inward reinsurance and is used as a risk policy instrument by professional reinsurance companies as well as in active reinsurance by other insurance companies.

  • 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.

  • Revaluation reserves

    Unrealised gains and losses resulting from the difference between the fair value and the amortised cost are recorded directly in the equity in the item “Revaluation reserve” without affecting profit, and following deduction of deferred tax and deferred profit participation (in life insurance).

  • Risk appetite

    Conscious assumption and handling of risk within risk-bearing capacity.

  • Risk limit

    Limits the level of risk and ensures that, based on a specified probability, a certain level of loss or a certain negative variance from budgeted values (estimated performance) is not exceeded.

  • Risk margin

    Under Section 161 of the Austrian Insurance Supervision Act 2016, the risk margin is an add-on to the best estimate to ensure that the value of technical provisions equates to the amount that insurers and reinsurers would need so that they are able to assume and satisfy their insurance and reinsurance obligations.


  • Securities held to maturity

    Securities that are held to maturity Securities that are held to maturity are debt securities that are intended to be held until they reach maturity. They are accounted for at amortised cost.

  • Solvency capital requirement (SCR)

    The eligible own funds that insurers or reinsurers must hold to enable them to absorb significant losses and give reasonable assurance to policyholders and beneficiaries that payments will be made as they fall due. It is calculated to ensure that all quantifiable risks (such as market risk, credit risk, life underwriting risk) are reliably taken into account. It covers both current operating activities and the new business expected in the subsequent twelve months.

  • 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.

  • Standard model (formula)

    Standard formula for calculating the solvency capital requirement.

  • Stress test

    Stress tests are a special form of scenario analysis. The objective is to provide a quantitative statement on the loss potential for portfolios in the event of extreme market fluctuations.

  • Subordinated liabilities

    Liabilities that can only be repaid following the rest of the liabilities in the event of liquidation or bankruptcy.

  • 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.


  • Unearned premiums

    The part of the premiums that represents the compensation for the insurance period after the reporting date but which has not yet been earned as at the reporting date. Except in the case of life insurance, unearned premiums must be stated in the balance sheet as a separate item under the technical provisions.


    US Generally Accepted Accounting Principles.


  • Value at risk

    Risk quantification method. This involves the calculation of the expected value of a loss that may arise in the event of unfavourable market developments with a probability specified within a defined period.

  • Value of business in force

    Calculation of the value of business in-force (VBI). Designates the present value of future profits arising from life insurance contracts, less the present value of the costs arising from the capital to be held in connection with this business.