23.08.2017 |
- Considerable premium growth in all insurance sectors: premiums written +6.6%
- Retained insurance benefits increase by slower rate of 2.4%
- Combined ratio improves from 97.1% to 96.8%
- Investment income falls 7.5% to € 233.5 million due to low interest rates
- Earnings before taxes rise 10.2% to € 95.5 million
- Progressive dividend policy to be continued
UNIQA Insurance Group AG (UNIQA) with further growth in the first half of 2017: Premiums written including the savings portion of unit- and index-linked life insurance increased by a good 6.6 per cent. In line with strategy, UNIQA grew significantly in property and casualty insurance and unit- and index-linked life insurance in Central and Eastern Europe in particular. Health insurance has been growing constantly throughout the Group for years – currently by 3.4 per cent.
Andreas Brandstetter, CEO UNIQA Insurance Group: “We are on the right path: The premium volume, combined ratio and cost ratio developed positively. In the first half of 2017, we generated satisfactory earnings before taxes of € 95.5 million – 10.2 per cent more than in the previous year. There is a fly in the ointment, however, because we have to make a purchase price adjustment in connection with the sale of our Italian Group companies as a result of the insolvency of the Italian Veneto Banca. The resulting non-recurring negative effect on earnings from discontinued operations reduces consolidated net profit in the first half of 2017 to € 41.3 million. Nevertheless, and after the storm damage in the summer, we are currently still expecting a slight year-on-year improvement in earnings before taxes in the 2017 financial year and intend to slightly increase the dividend per share again in 2017.”
Key Group figures 1 - 6/2017 in detail
The premiums written by the UNIQA Group including the savings portion of unit- and index-linked life insurance increased by 6.6 per cent to € 2,798.6 million in the first half of 2017 (1 - 6/2016: € 2,624.6 million) due to the sound growth in all sectors. The same pattern was seen in recurring premiums, which rose by 4.2 per cent to € 2,656.0 million (1 - 6/2016: € 2,547.9 million), premiums earned including the net savings portion of the premiums from unit- and index-linked life insurance, which increased by 7.8 per cent to € 2,583.7 million (1 - 6/2016: € 2,396.6 million), and retained premiums earned (in accordance with IFRS), which climbed by 3.8 per cent to € 2,314.9 million (1 - 6/2016: € 2,229.6 million).
All three insurance sectors saw positive growth rates in the first half of the year. Premiums written in health insurance were up 3.4 per cent at € 522.5 million (1 - 6/2016: € 505.4 million). Life insurance saw growth in premiums written including the savings portion of unit- and index-linked life insurance totalling 9.1 per cent to € 834.4 million (1 - 6/2016: € 764.7 million). In the first six months of 2017, the premiums written in property and casualty insurance increased by 6.4 per cent to € 1,441.6 million (1 - 6/2016: € 1,354.5 million).
In international business, premiums written grew by a considerable 23.2% to € 837.1 million (1 - 6/2016: € 679.7 million); in Austria they increased slightly to € 1,930.7 million (1 - 6/2016: € 1,924.8 million).
The total amount of retained insurance benefits of the UNIQA Group rose by 2.4 per cent to € 1,749.0 million in the first half of 2017 (1 - 6/2016: € 1,708.4 million) and thus grew at a much slower rate than premiums. Total operating expenses less reinsurance commissions received rose by 2.4 per cent to € 645.7 million in the first six months of 2017 (1 - 6/2016: € 630.8 million). Acquisition expenses posted an increase of 1.7 per cent – and thus much lower than the premium volume earned – to € 443.0 million (1 - 6/2016: € 435.4 million). Other operating expenses (administration costs) climbed by 3.8 per cent in the first half of 2017 to € 202.7 million (1 - 6/2016: € 195.4 million) as a result of expenses of around € 16 million relating to the innovation and investment programme.
The cost ratio – the ratio of total operating expenses to premiums earned including the net savings portion of the premiums from unit- and index-linked life insurance – less reinsurance commissions received improved to 25.0 per cent (1 - 6/2016: 26.3 per cent). The combined ratio after reinsurance improved to 96.8 per cent (1 - 6/2016: 97.1 per cent).
Investment income fell by 7.5 per cent to € 233.5 million in the first half of 2017 (1 - 6/2016: € 252.4 million) under the influence of persistently low interest rates and negative exchange rate effects.
The investment portfolio of the UNIQA Group (including investment property, financial assets recognised at equity and other investments) decreased slightly as against the end of the previous year to € 19,684.4 million as at 30 June 2017 (31 December 2016: € 20,024.8 million).
The technical result of the UNIQA Group improved by 57.2 per cent to € 71.7 million in the first half of 2017 (1 - 6/2016: € 45.6 million). However, operating earnings were unchanged at € 125.3 million (1 - 6/2016: € 125.3 million) as a result of the decline in the investment result. The UNIQA Group’s earnings before taxes increased by 10.2 per cent to € 95.5 million (1 - 6/2016: € 86.6 million).
However, consolidated net profit declined by 54.3 per cent to € 41.3 million (1 - 6/2016: € 90.3 million) due to the one-off negative effect from the purchase price adjustment in connection with the sale of the Italian business. Earnings per share amounted to € 0.13.
As at 30 June 2017, equity amounted to € 2,997.6 million (31 December 2016: € 3,186.3 million).
The average number of employees (full-time equivalents, FTE) at the UNIQA Group decreased to 12,806 in the first six months of 2017 (1 - 6/2016: 13,442).
Outlook for 2017
On the basis of the strong performance in the first half of the year, UNIQA expects premiums written to grow by at least 3 per cent in 2017. Even after the storm damage in July and August, UNIQA is continuing to forecast a slight year-on-year improvement in earnings before taxes for 2017 as a whole. Despite the investment programme that has been running since 2016 and the challenging environment of low interest rates, UNIQA still intends to continuously increase the annual distribution per share in the years to come as part of a progressive dividend policy.
Forward-looking statements
This press release contains statements referring to the future development of the UNIQA Group. These statements present estimates which were reached on the basis of all of the information available to us at the present time. If the assumptions on which they are based do not occur, the actual results may deviate from the results currently expected. As a result, no liability is accepted for this information.
UNIQA
The UNIQA Group is one of the leading insurance groups in its core markets of Austria and Central and Eastern Europe (CEE). Around 20,000 employees and exclusive sales partners serve over 9.6 million customers in 18 countries. UNIQA is the second-largest insurance group in Austria with a market share of more than 21 per cent. UNIQA operates in 15 markets in the CEE growth region: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Kosovo, Macedonia, Montenegro, Poland, Romania, Russia, Serbia, Slovakia and Ukraine. The UNIQA Group also includes insurance companies in Switzerland and Liechtenstein.