19.11.2020
- Premiums written: € 4,091 million (minus 0.1 per cent)
- Underwriting result up by 99.0 per cent (€ 124.9 million)
- Combined ratio stable at 95.9 per cent
- Investment income down by 8.9 per cent (€ 397.8 million)
- Earnings before taxes: € 214 million (minus 0.4 per cent)
With premiums written of € 4,091.2 million and earnings before taxes of € 213.8 million, UNIQA has followed the first half of the year by successfully closing the third quarter of 2020 – in the middle of the COVID-19 crisis. EBT of € 159 million was generated in the three months from July to September alone, making this quarter one of the most successful in the company’s history.
Underwriting result nearly doubled. It increased by 99.0 per cent to € 124.9 million in the first three quarters – showing how strong UNIQA’s core insurance business is. This is despite UNIQA having to pay out over € 70 million in additional insurance benefits from January to September for business interruptions and cancelled events due to COVID-19.
Key Group figures January to September 2020 in detail
The UNIQA Group’s premiums written, including the savings portion of unit- and index-linked life insurance, remained virtually on a par with the previous year in the first three quarters of 2020 at €4,091.2 million, dropping by only 0.1 per cent (January to September 2019: € 4,095.7 million). While the recurring premiums this includes moved up by 0.2 per cent to € 4,024.6 million (January to September 2019: € 4,015.7 million), single premiums in life insurance declined by 16.7 per cent to € 66.7 million in line with strategy (January to September 2019: € 80.1 million). Retained premiums earned (in accordance with IFRS) increased by 0.3 per cent to € 3,653.2 million (January to September 2019: € 3,642.3 million).
Premiums written in property and casualty insurance rose by 1.0 per cent to € 2,224.6 million in the first nine months of 2020 (January to September 2019: € 2,201.5 million). Retained premiums earned in this segment went up by 1.5 per cent. Premiums written in health insurance rose by 3.2 per cent to € 882.8 million in the reporting period (January to September 2019: € 855.5 million). Retained premiums earned in health insurance (in accordance with IFRS) saw an upturn of 4.0 per cent. In life insurance, premiums written including the savings portion of unit- and index-linked life insurance decreased by a total of 5.3 per cent to € 983.8 million in the first nine months of 2020 (January to September 2019: € 1,038.8 million). The key driver behind this performance remains low demand stemming from continued low interest rates.
In international business, premiums written including the savings portion of unit- and index-linked life insurance declined by 3.9 per cent to € 1,129.9 million in the first nine months of 2020 (January to September 2019: € 1,175.7 million). As a result, the international companies contributed 27.6 per cent of total Group premiums in the first three quarters of 2020 (January to September 2019: 28.7 per cent).
In Austria, premiums written including the savings portion of unit- and index-linked life insurance rose by 1.1 per cent to € 2,938.0 million in the first nine months of 2020 (January to September 2019: € 2,905.9 million).
The total amount of retained insurance benefits of the UNIQA Group decreased by 3.0 per cent to € 2,705.4 million in the first three quarters of 2020 (January to September 2019: € 2,789.8 million).
Total operating expenses less reinsurance commissions received rose by 2.8 per cent to € 1,046.8 million in the first nine months of 2020 (January to September 2019: € 1,018.6 million). Acquisition expenses increased by 0.3 per cent to € 678.1 million (January to September 2019: € 675.7 million). Other operating expenses (administration costs) climbed by 7.2 per cent in the first nine months of 2020 to € 381.1 million (January to September 2019: € 355.6 million) as a result of higher investments and additional resources and staff requirements for the strategic projects. This includes costs in connection with the innovation and investment programme amounting to roughly € 43 million (January to September 2019: roughly € 31 million).
The total 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 increased to 27.0 per cent (January to September 2019: 26.3 per cent). The combined ratio after reinsurance remained stable at 95.9 per cent despite higher costs (January – September 2019: 95.9 per cent).
Investment income fell by 8.9 per cent to € 397.8 million in the first three quarters of 2020 (January to September 2019: € 436.6 million). In the same period of the previous year, realised gains from selling properties amounting to around € 45 million had a positive effect. No gains from selling properties were posted in the first three quarters of 2020.
The investment portfolio of the UNIQA Group increased as against the end of the previous year to € 20,665.9 million as at 30 September 2020 (31 December 2019: € 20,624.8 million).
The underwriting result of the UNIQA Group increased significantly by 99.0 per cent to € 124.9 million in the first three quarters of 2020 (January to September 2019: € 62.8 million). In contrast, operating earnings increased slightly by 2.1 per cent to € 262.0 million (January to September 2019: € 256.6 million). Earnings before taxes of the UNIQA Group declined slightly by 0.4 per cent to € 213.8 million (January to September 2019: € 214.7 million).
Consolidated net profit (net profit for the period attributable to the shareholders of UNIQA Insurance Group AG) decreased by 0.4 per cent to € 166.5 million (January to September 2019: € 167.1 million). Earnings per share amounted to € 0.54 (January to September 2019: € 0.54).
As at 30 September 2020, equity attributable to the shareholders of UNIQA Insurance Group AG increased to € 3,462.2 million (31 December 2019: € 3,401.0 million).
The average number of employees at the UNIQA Group rose to 12,776 in the first nine months of 2020 (January to September 2019: 12,750).
Outlook
Given the persistently high level of uncertainty regarding macroeconomic and financial developments, UNIQA cannot currently provide a forecast for the 2020 financial year.
Forward-looking statements
This press release contains statements concerning UNIQA’s future development. These statements present estimates that 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.