• Acquisition costs

    The amount paid to acquire an asset in cash or cash equivalents of another form of compensation at the time of acquisition, in addition to the purchase of directly attributable costs.

  • Affiliated companies

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

  • Amortised cost

    Amortised cost refers to the purchase price of an asset adjusted for depreciation and amortisation expense.

  • 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.

  • Associated companies

    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.


  • 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.


  • Contractual service margin (CSM)

    The contractual service margin represents the expected future profit that an insurer will recognise as it provides insurance contract services for a specific group of insurance contracts.

  • 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.


  • 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.

  • Directly attributable expenses

    Directly attributable expenses are expenditures that can be clearly allocated to a specific insurance contract. Examples include sales commissions and the administrative expenses for this contract.

  • 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.


  • Economic capital model (ECM)

    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.

  • Economic capital requirement ratio (ECR 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.


  • General measurement model (GMM)

    General measurement model under IFRS 17 that is generally to be applied if the premium allocation model or the variable fee approach are not to be applied.


  • 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 revenue

    The insurance revenue reflects the portion of the total consideration received, adjusted for the time value of money and investment components, that is allocated to the insurance benefits provided in the period, which are caused by the reduction in the LRC for the period.

  • Insurance service result

    The net amount of insurance revenue and insurance services expenses.


  • Liability for incurred claims (LIC)

    Reserve for claims incurred but not yet paid.

  • Liability for remaining coverage (LRC)

    Technical provision under IFRS 17 for future assumption of insurance risks from existing business.


  • 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.


  • 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.


  • 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).


  • Premium allocation approach (PAA)

    The premium allocation approach is a simplified, less complex approach that is only permissible if certain criteria are met. The simplified measurement model is primarily used in shortterm property insurance.

  • 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.


  • 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 amortised cost are recorded directly in equity in the items “Valuation of equity and debt instruments”, “Revaluations from defined benefit obligations” and “Valuation of insurance and reinsurance contracts” after deduction of deferred taxes.

  • 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.


  • 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.


  • Technical expenses

    Total of insurance benefit payments and changes in the claims provision during the financial year in connection with direct insurance contracts. Also includes the costs directly attributable to the insurance business.

  • 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.


  • 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.

  • Variable fee approach (VFA)

    The VFA was introduced to take account of the special characteristics of insurance contracts with direct participation features. It is used primarily where policyholders share in the returns of the underlying items, particularly in health and life insurance.