UNIQA retains very strong capital resources and excellent risk position Economic capital requirement ratio according to internal management formula at a strong 205 per cent At 248 per cent, regulatory capital ratio almost unchanged compared to the previous year Profitability of new business in life and health insurance improves further to an excellent new business margin of 5.9 per cent Annual Report 2018 published UNIQA Insurance Group AG (UNIQA) has now announced the capital requirement ratios, the market embedded value and the risk profile as at the end of 2018. Capital requirement ratios remain excellent The economic capital requirement ratio of the UNIQA, which gauges capitalisation, was 205 per cent on 31 December 2018 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: “Despite a turbulent end of the year, our capital position remains at a very high level. This is an excellent position, even in international comparison, which sustainably strengthens our business.” The provisional regulatory capital requirement ratio according to Solvency II as of 31 December 2018 was 248 per cent. The verified regulatory capital requirement ratio will be published in mid-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. UNIQA has been using such a model for the actuarial risk of property and casualty insurance since 2017. As part of the continuous improvement and further development of the internal model, UNIQA has set itself the target of being the first Austrian insurance group to also evaluate all market risks according to an internal management approach. The application for approval of this model extension will be made in the first half of 2019. This consolidates and standardises the UNIQA internal and regulatory management approach. The economic capital requirement ratio, for which UNIQA utilises no regulatory transitional provisions, is the ratio of the economic own funds of € 5,286 million (2017: € 5,656 million) to the economic own funds requirement of € 2,584 million (€ 2,699 million) according to the internal capital formula. The high share of particularly secure Tier 1 capital (core capital), which currently accounts for 83% of equity at UNIQA, should be emphasised. Embedded Value: Solid earnings for UNIQA even in the future The market consistent embedded value after minority interests of the UNIQA Group’s life and health business improved by 3.3 per cent (not including dividend payment and exchange rate effects) in the past year to € 3,363 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 plus the present value of future income from the existing life and health insurance portfolio. The value of in-force business (VIF) in life and health insurance increased to € 2,333 million (2017: € 2,266 million). Kurt Svoboda “2018 shows the results of the successful implementation of our strategy, in particular in life insurance. Even in a difficult interest rate environment, we are able to bring sustainable high-yield products to the market. We had the courage to break rigid structures and take new directions, as we have shown in the commission design. Overall, a decline in new business in life insurance has been seen through the years. The traditional life insurance product in particular is impacted by low interest rates but continues to be very attractive to investors seeking security combined with the coverage of biometric risks.”  The new business margin – a ratio for profitability of the new business in life and health insurance – improved to 5.9 per cent (2017: 4.5 per cent); for CEE, it remained at an excellently high level of 10.4 per cent in 2018 (2017: 5.7 per cent). The persistently good profitability of new business in Austria is particularly gratifying, meaning that earnings expectations in absolute terms remain unchanged despite declining new business premiums. B & W Deloitte GmbH, Cologne, fully certified the market consistent embedded value of the UNIQA Group’s life and health business. Annual Report 2018 published Today UNIQA also published its annual report 2018: http://reports.uniqagroup.com/2018/ar