10. Assets and liabilities held for sale and discontinued operations
At the Supervisory Board meeting on 23 August 2023, UNIQA Insurance Group AG decided to sell its 75% stake in the Limited Liability Company “Insurance Company “Raiffeisen Life” (Moscow, Russia – “Raiffeisen Life”). The expected sale price for the stake held by UNIQA is around € 24.0 million. The sale is expected to be completed in the first quarter of 2024 once all the necessary regulatory approvals have been obtained.
The sale of the company is classified as a discontinued operation. The assets and liabilities associated with the discontinued operations are presented in the consolidated statement of financial position under the assets and liabilities in disposal groups held for sale. The profit and loss of the discontinued operation is presented in the consolidated income statement under the item “Profit/(loss) from discontinued operations (after tax)” and has been reported until now in the UNIQA International segment. In addition to the current result, the profit/(loss) from discontinued operations includes a fair value impairment of € 18.3 million and costs to sell of € 216 thousand.
The following table shows the assets and liabilities in disposal groups held for sale:
In € thousand |
31/12/2023 |
|---|---|
Property, plant and equipment |
262 |
Intangible assets |
1,374 |
Investments |
192,474 |
Assets from insurance contracts |
142 |
Assets from reinsurance contracts |
1,105 |
Receivables and other assets |
4,573 |
Deferred tax assets |
87,308 |
Cash |
12,957 |
Assets in disposal groups held for sale |
300,196 |
In € thousand |
31/12/2023 |
|---|---|
Liabilities from insurance contracts |
168,204 |
Liabilities from reinsurance contracts |
486 |
Financial liabilities |
242 |
Other provisions |
18,420 |
Liabilities and other items classified as liabilities |
1,540 |
Deferred tax liabilities |
85,886 |
Liabilities in disposal groups held for sale |
274,778 |
If an operation is classified as a discontinued operation, the consolidated statement of comprehensive income as well as the data relating to it for the comparative year is restated so that it were as if the operation had been discontinued from the start of the comparative year.
In € thousand |
1–12/2023 |
1–12/2022 |
|---|---|---|
Technical result |
|
|
Insurance revenue |
30,760 |
50,991 |
Insurance service expenses |
–19,281 |
–22,531 |
Technical result from reinsurance |
990 |
–1,850 |
|
12,468 |
26,611 |
Financial result |
|
|
Net investment income |
|
|
Income from investments |
40,026 |
100,914 |
(of which interest income from the application of the effective interest method) |
15,783 |
21,343 |
(of which changes in value based on the impairment model for expected credit losses) |
23,702 |
77,528 |
Expenses from investments |
–22,410 |
–112,133 |
(of which changes in value based on the impairment model for expected credit losses) |
–21,851 |
–111,023 |
|
17,615 |
–11,219 |
Financial result from insurance contracts |
–32,665 |
–11,868 |
Financial result from reinsurance contracts |
21 |
13 |
|
–15,029 |
–23,073 |
Non-technical result |
|
|
Other income |
17,604 |
19,238 |
Other expenses |
–15,039 |
–22,776 |
|
2,565 |
–3,539 |
Operating profit/(loss) |
4 |
–1 |
Amortisation of VBI and impairment of goodwill |
0 |
–49 |
Finance cost |
–24 |
–30 |
Earnings before taxes |
–20 |
–80 |
Income taxes |
–806 |
394 |
Current profit/(loss) from discontinued operations (after tax) |
–826 |
314 |
Amortisation and disposal costs |
–18,505 |
0 |
Profit/(loss) from discontinued operations (after tax) |
–19,332 |
314 |
of which attributable to shareholders of UNIQA Insurance Group AG |
–19,125 |
235 |
of which attributable to non-controlling interests |
–207 |
78 |
The currency translation differences recognised in other comprehensive income relating to the discontinued operations amount to € 12,340 thousand (2022: €–8,421 thousand), the change in the revaluation reserve for debt instruments amounts to €–5,205 thousand (2022: €–110 thousand) and the changes from insurance contracts amount to €–4,155 thousand (2022: €–4,984 thousand).