Group business development

• Premiums written (including savings portions from unit-linked and index-linked life insurance) rose by 9.7 per cent to €7,185.6 million
• Technical result at €562.2 million
• Combined ratio (gross) improved from 91.7 per cent to 89.4 per cent
• Financial result increased to €150.2 million
• Earnings before taxes in 2023 increased by 56.6 per cent to €426.4 million
• Proposed dividend of €0.57 per share for 2023

Changes in premiums

UNIQA’s total volume of premiums written increased in 2023. Taking into account the savings portions from unit-linked and index-linked life insurance, the volume climbed 9.7 per cent to €7,185.6 million (2022: €6,548.7 million). The main driver for this was the solid growth in both property and casualty insurance and in health insurance.

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

In € million

Premiums written in property and casualty insurance grew by 14.4 per cent to €4,214.3 million in 2023 (2022: €3,683.0 million) due to index adjustments and a good sales performance. In health insurance, premiums written rose by 8.8 per cent to €1,388.1 million in the reporting period due to premium adjustments and good new business development (2022: €1,275.9 million). In life insurance, premiums written, including savings portions from unit-linked and index-linked life insurance, decreased slightly by 0.4 per cent to €1,583.2 million (2022: €1,589.8 million).

Premiums written, including savings portions from unit-linked and index-linked life insurance, at UNIQA Austria increased by 5.0 per cent to €4,290.0 million in 2023 (2022: €4,086.4 million). The UNIQA International segment saw an increase of 13.8 per cent to €2,787.9 million (2022: €2,450.0 million).

Change in insurance revenue

The insurance revenue of the UNIQA Group rose in 2023 by 12.1 per cent to €5,994.1 million (2022: €5,346.9 million). This development was primarily driven by very strong premium growth in property and casualty insurance and an interest rate-induced higher release of the contractual service margin (CSM release) in health insurance and life insurance.

The release of the contractual service margin amounted to a total of €318.9 million (2022: €314.5 million).

Insurance revenue in property and casualty insurance grew by 12.9 per cent to €4,006.3 million in 2023 (2022: €3,547.8 million).

In health insurance, insurance revenue in the reporting period rose by 8.3 per cent to €1,234.7 million (2022: €1,139.7 million). The release of the contractual service margin increased by 10.0 per cent to €94.7 million (2022: €86.1 million).

Insurance revenue in life insurance increased by 14.2 per cent to €753.1 million in 2023 (2022: €659.3 million). In contrast, the release of the contractual service margin decreased slightly by 1.9 per cent to €192.2 million (2022: €196.0 million).

Change in insurance service expenses

The insurance service expenses of the UNIQA Group rose in 2023 by 11.5 per cent to €5,291.0 million (2022: €4,744.5 million). The main drivers for this were very high burdens from natural catastrophes and major claims – primarily from the Austrian portfolio.

The overall cost ratio – the ratio of direct and indirect costs to insurance revenue – nevertheless increased only slightly to 31.0 per cent (2022: 30.9 per cent).

Insurance service expenses in property and casualty insurance increased by 10.0 per cent to €3,580.8 million (2022: €3,254.3 million). The cost ratio improved to 31.9 per cent (2022: 32.5 per cent). The combined ratio (gross before reinsurance) fell to 89.4 per cent (2022: 91.7 per cent) despite the significant impact from natural catastrophes and major claims due to the improved cost ratio and excellent technical performance in the international segment.

Combined ratio (gross before reinsurance)

In per cent

In health insurance, insurance service expenses grew by 6.9 per cent to €1,110.3 million in 2023 (2022: €1,038.5 million). The cost ratio in this segment increased to 18.2 per cent (2022: 17.3 per cent).

In life insurance, insurance service expenses rose by 32.8 per cent to €600.0 million (2022: €451.7 million). The cost ratio in life insurance increased to 46.9 per cent (2022: 46.0 per cent).

Technical result from reinsurance

The technical result from reinsurance in 2023 amounted to €–140.9 million (2022: €–38.4 million). The reason for this increase is the high burden from both natural catastrophes – especially the storms in the summer months – and major claims.

Technical result

In 2023, the technical result of the UNIQA Group (see Note 5 in the consolidated financial statements) nevertheless remained at nearly the level of the previous year at €562.2 million (2022: €564.0 million).

Financial result

The UNIQA Group’s investment portfolio (including investment property, financial assets accounted for using the equity method and other investments) rose by €1,055.9 million to €20,431.9 million as at 31 December 2023 compared with the last reporting date (31 December 2022: €19,376.0 million).

Net investment income increased in 2023 to €588.8 million due to the excellent current income (2022: €179.8 million). The financial result increased to €150.2 million as a result (2022: €–49.9 million). Due to the recognition of the 15.7 per cent equity-accounted holding in the construction firm STRABAG SE, there was a positive contribution in the amount of €76.0 million in 2023 (2022: €99.6 million).

Net investment income from unit-linked and index-linked life insurance amounted to €306.0 million in 2023 (2022: €–492.5 million).

A detailed description of the financial result can be found in the consolidated financial statements (see Note 4 in the consolidated financial statements).

Non-technical result

The non-technical result amounted to €–206.4 million in 2023 (2022: €–161.7 million). Other income rose by 22.2 per cent to €436.1 million (2022: €356.7 million), while other expenses increased by 23.9 per cent to €642.5 million (2022: €518.5 million).

Earnings before taxes

Operating profit grew by 43.6 per cent to €506.1 million due to the increased financial result (2022: €352.4 million). The UNIQA Group’s earnings before taxes increased accordingly by 56.6 per cent to €426.4 million (2022: €272.3 million).

Earnings before taxes

In € million

In property and casualty insurance, earnings before taxes increased to €211.5 million (2022: €9.5 million), while in health insurance they declined by 20.9 per cent to €44.1 million (2022: €55.8 million). Lastly, in life insurance, earnings before taxes fell by 17.5 per cent to €170.8 million (2022: €207.0 million).

Income tax expense increased in 2023 to €103.2 million (2022: €16.9 million). This increase is due to the decision not to recognise loss carryforwards, which were higher in the financial year, as deferred tax assets. In consequence, the tax burden increased to 24.2 per cent in 2023 (2022: 6.2 per cent).

The profit/(loss) for the period from continuing operations amounted to €323.1 million (2022: €255.4 million). Due to the planned sale of the Russian business, the company incurred a loss from discontinued operations (after tax) in the amount of €–19.3 million in 2023 (2022: €0.3 million). As a result, the profit/(loss) for the reporting period was €303.8 million (2022: €255.7 million).

Consolidated profit/(loss) (proportion of the profit/(loss) for the period attributable to the shareholders of UNIQA Insurance Group AG) increased by 18.3 per cent to €302.7 million (2022: €256.0 million). The earnings per share rose to €0.99 (2022: €0.83). The earnings per share from continuing operations was €1.05 in 2023 (2022: €0.83).

Earnings per share

In €

The return on equity (profit/(loss) for the period from continuing operations in relation to the average equity excluding non-controlling interests) increased in the reporting year to 14.1 per cent (2022: 11.6 per cent). This calculation does not take into account the effect of the planned sale of the Russian company (profit/(loss) from discontinued operations (after tax)).

On this basis, the Management Board will propose a dividend of €0.57 per share to the Supervisory Board and the Annual General Meeting (2022: €0.55 per share).

Dividend per share

In €

Own funds and total assets

Total equity attributable to the shareholders of UNIQA Insurance Group AG increased by €826.9 million to €2,710.2 million in the past financial year (31 December 2022: €1,883.3 million). This was due to the increased measurement of financial instruments available for sale caused by the fall in the general interest rate level at the end of 2023. Non-controlling interests came to €19.9 million (31 December 2022: €17.7 million). Total assets amounted to €28,151.0 million at 31 December 2023 (31 December 2022: €26,641.1 million).

Change in contractual service margin

The contractual service margin (CSM) declined to €5,266.3 million as at 31 December 2023 (31 December 2022: €5,411.0 million). The main reasons for this development were the ongoing release of the contractual service margin in line with the development of the insurance portfolio and the reclassification of the Russian life insurance business as a discontinued operation. In property and casualty insurance, the CSM increased slightly to €61.9 million (31 December 2022: €60.5 million) and in health insurance to €3,366.2 million (31 December 2022: €3,328.3 million). In life insurance, on the other hand, it fell to €1,838.2 million (31 December 2022: €2,022.2 million).

Consolidated Statement of Cash Flows

UNIQA’s net cash flow from operating activities amounted to €325.3 million in 2023 (2022: €–532.0 million). Cash flow from investment activities amounted to €41.0 million (2022: €798.3 million). Net cash flows from financing activities amounted to €–333.7 million (2022: €–188.7 million). Overall, cash and cash equivalents increased by €31.9 million to €699.5 million in the 2023 financial year (2022: €667.6 million).

Employees

In 2023, the average number of employees (full-time equivalents, or FTEs) at UNIQA rose slightly to 14,629 FTEs (2022: 14,515). This includes 3,798 FTEs (2022: 3,813) who were employed as field sales employees. The number of employees in administration was 10,831 FTEs (2022: 10,702).

In 2023, the Group had an average of 4,963 FTEs (2022: 4,787) in the Central Europe (CE) region – Poland, Slovakia, Czechia and Hungary – as well as 2,197 FTEs (2022: 2,263) in the Southeastern Europe (SEE) region – Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Montenegro, North Macedonia and Serbia – and 1,447 FTEs (2022: 1,554) in the Eastern Europe (EE) region – Romania and Ukraine. The average number of FTEs in the other markets in 2023 was 114 (2022: 150). A total of 5,908 FTEs were employed in Austria (2022: 5,761). Including the employees of the general agencies working exclusively for UNIQA, the total number of people working for the Group amounts to 21,089 (2022: 20,994).

In 2023, 50 per cent of the staff working in administrative positions at UNIQA in Austria were women (2022: 54 per cent). In sales, the ratio was 76 per cent men to 24 per cent women (2022: 78 per cent men to 22 per cent women). 16.5 per cent (2022: 16.6 per cent) of employees were working part-time. The average age in the past year was 43 years (2022: 42 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 2023, around 14 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 (2022: around 12 per cent). Around 77 per cent of employees will participate in the profit-sharing scheme for 2023 (2022: around 73 per cent). 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, 101 apprentices are being trained.