UNIQA: continues strong capital requirement ratios and excellent risk position Economic capital requirement ratio according to internal management formula at a strong 210 per cent Regulatory capital requirement ratio increased to 250 per cent after successful approval of the partial internal model Group embedded value grows by 3.2 per cent, driven by profitable new business and increased interest rates Profitability of new business in life and health increased considerably to 4.5 per cent UNIQA Insurance Group AG (UNIQA) has now announced the capital requirement ratios, the group embedded value and the risk position for the past financial year. Capital requirement ratios sustainably high The economic capital requirement ratio of the UNIQA Group, which gauges capitalisation, was 210 per cent on 31 December 2017 on the basis of the internal management formula and thus continues to be at a very high level. Kurt Svoboda, UNIQA Group CFO/CRO and CEO of UNIQA Austria: “UNIQA continues to be excellently capitalised. With our excellent capital position in comparison to our European peers, we have established the foundation for continuing our growth and innovation strategy. At 210 per cent, we have massively exceeded the upper end of the target range we defined of 190 per cent despite the use of risk capital for government bonds. UNIQA now has around € 700 million in surplus capital, which we would like to invest in growth. The provisional regulatory capital requirement ratio according to Solvency II as of 31 December 2017 was 250 per cent. The verified regulatory capital requirement ratio will be published at the end of May in the report on solvency and financial position. As part of Solvency II, besides the regulatory defined standard formula, there is an option for insurance companies to use an internal model to calculate the risk capital requirement. The UNIQA Group has developed such a model for the actuarial risk of property and casualty insurance and presented it for approval to the Austrian Financial Market Supervision (FMA). This approval was granted by FMA in December 2017. The economic capital requirement ratio, for which UNIQA utilises no regulatory transitional provisions, is the ratio of the economic own funds of € 5,656 million (2016: € 5,382 million) to the economic own funds requirement of € 2,699 million (€ 2,509 million) according to the internal capital formula. Economic own funds consist of Tier 1 capital (core capital), Tier 2 capital (subordinated capital) and Tier 3 capital (other capital holdings). Embedded Value: Solid earnings for UNIQA even in the future The market consistent embedded value after minority interests of the UNIQA Group improved by 3.2 per cent in the past year to € 5,140 million (2016: € 4,981 million). The market consistent embedded value compiled according to international guidelines measures the value of the portfolio of insurance policies and comprises the net assets for life, health, and property and casualty insurance plus the present value of future income from the existing life and health insurance portfolio. The 2016 starting values were restated due to the first-time inclusion of the life insurance business in Croatia and the adjustment of the cost of capital to Solvency II. The value of in-force business (VIF) in life and health insurance increased by 12.2 per cent to € 2,266 million (2016: € 2020 million). UNIQA Management Board member Kurt Svoboda (CFO/CRO): “On one hand, the improvement of the embedded value is boosted by a slightly increased interest rate environment. On the other profitability for the new business improved in line with our strategy. The solid performance of new business profitability is particularly gratifying. This confirms our path taken toward continuous development of the life insurance business despite the challenging, external factors.”  The new business margin – a ratio for profitability of new business in life and health insurance in 2017 – improved to 4.5 per cent (2016: 3.9 per cent); for CEE, it remained at a persistently high level of 5.7 per cent in 2017 (2016: 4.3 per cent). Performance in Austria is particularly gratifying, where the traditional life insurance business was put to the test by the persistently low interest rates and where continued successes have now been seen thanks to the adjustments made for more capital-efficient products. The further transformation of new business to include more risk- and unit-linked insurance remains a challenge. B & W Deloitte GmbH, Cologne, fully certified the market consistent embedded value and the economic capital requirement ratio of the UNIQA Group.