UNIQA Insurance Group AG Investor Presentation 9M17 Results
1. Highlights 2. Economic Capital and Embedded Value 2016 3. Strategic initiatives 4. 9M17 results 5. Appendix UNIQA Investor Relations 2
UNIQA at a glance UNIQA’s geographical footprint Key financials EURm 2012 (a) 2016 (e) 2013 2014 2015 Gross written premiums (b) 5,543 5,886 6,064 6,325 5,048 Premiums earned 5,274 5,641 5,839 6,102 4,443 (retained) (b) Profit on ordinary activities (adjusted for one-off 204 308 378 423 225 items) (a) Consolidated net profit 127 285 290 331 148 Combined ratio (net) (P&C) 101.3% 99.8% 99.6% 97.8% 98.1% Return on Equity (d) 8.7% 11.9% 9.9% 10.9% 4.7% Diversification by regions and products (GWP (b)(c) FY16) UNIQA International Life 28% 30% 50% P&C 72% 20% Health UNIQA Austria (a) Excluding Mannheimer Group in 2012 (b) Including savings portion of premiums from unit- and index-linked life insurance, (c) Excluding consolidation and UNIQA Reinsurance, (d) adjusted, annualized, (e) UNIQA signed contract to sell Italian operations on Dec 2, therefore FY16 IFRS figures excluding Italy UNIQA Investor Relations 3
Key Financial Indicators Earnings per share (EUR) Economic Capital Ratio (%) 215% 214% 0.98 182% 0.79 161% 150% Sheet „Share Charts“ 0.61 0.48 0.37 Shareholder‘s 9M13 9M14 9M15 9M16 9M17 FY13 FY14 FY15 FY16 6M17 Operating Return on Equity (%) Book value per share (EUR) 10.20 10.34 10.12 10.00 17.2% 15.6% 14.6% 10.0% 9.4% 8.98 FY13 FY14 FY15 FY16 9M17 FY13 FY14 FY15 FY16 9M17 UNIQA Investor Relations b) Operating ROE = (EBT excl. goodwill amortisation)/(own funds excl. revaluation reserve) 4
UNIQA is very well positioned Strategic Market leading Growth Dividend Clearly defined bancassurance position in potential in capacity strategy partnership Austria CEE with Raiffeisen € UNIQA Investor Relations 5
Market leading position in Austria Austria GWP (b) by distribution channel Market shares in Austria (a) Bank P&C 17.6% 2 20% Direct and others 4% Own employees 50% and exclusive agencies Health 47.0% 1 26% Brokers and multi agencies Life 20.9% 2 Own sales force ~1,700 Overall 22.3% Exclusive agents ~ 910 2 Relatively concentrated insurance market; Top 4 players with almost 70% market share overall; Stable market structure Positive long-term growth trend for Health; Growing demand for private health care insurance Strong macroeconomic fundaments; High GDP per capita; Solid public finance Source: Austrian Insurance Association – based on GWP b) FY 2016 GWP including savings portion from unit- and index-linked life UNIQA Investor Relations (a) 6 insurance, excluding single premiums
Strategic partnership with Raiffeisen banking group in AT & CEE Business model based on products tailored to banking requirements, excellent process quality and high level sales support including sustainable incentive schemes, sales support/training and POS-tools Austria Distribution via local Raiffeisen banks through the brand Raiffeisen Versicherung Austria based on new cooperation agreements since January 2013, recently extended until 2022 with automatic renewal Highest customer reach through leading retail network with c.2,000 outlets and c.2.8m customers Raiffeisen Versicherung is an integral part of the Raiffeisen banking group‘s online strategy CEE Distribution via Raiffeisen Bank International based on strengthened strategic preferred partnership for CEE countries since June 2013 Raiffeisen Bank International with ~2,700 outlets and c.14.5m customers in CEE. Top 5 market position in 10 countries UNIQA Investor Relations 7
Secular and profitable growth opportunity in CEE Broad CEE platform with 15 core markets Insurance density 6.640 2.581 Central Europe (CE) Eastern Europe (EE) South Eastern Europe (SEE) 2.371 Clients: 0.8m Clients: 3.0m Clients: 2.0m 2.174 GWP: EUR 866m GWP: EUR 165m GWP: EUR 275m Share of GWP: 63.5% Share of GWP: 12.1% Share of GWP: 20.2% 1.955 Russia Clients: 0.2m GWP: EUR 58m Share of GWP: 4.2% Austria in 1977 – 1984 Austria in 1955 – 1972 461 414 338 300 276 146 129 111 94 101 103 69 39 46 28 UA AL KS MK BA RS RO RU ME BG HR HU PL SK CZ AT EU DE IT CH Annual insurance spending p.c. in EURO, Bosnia excluding Republika Srpska EU, DE, IT, CH: figures FY 2015;: HU, BG, RS, MK, UA, RO: figures FC from Q3 2016 Source: Company information Source: Regional Supervisory Authorities & Associations UNIQA Investor Relations 8
Free surplus generation covering progressive dividend policy Life and health free surplus generation Surplus in € M Less capital intensive new 400 business in life (reduction of guarantees) 300 254 Reduction in one-off 171 63 200 139 commission payments 43 46 100 48 191 14 In-force measures to push 128 93 35 0 23 13 -9 transfer from VIF 2012 2013 2014 2015 2016 -100 Improving combined ratio will Health & Life P&C contribute higher free surplus generation from P&C business Dividend payment in the future In € M 200 150 140 130 150 120 110 100 50 0 2012 2013 2014 2015 2016 UNIQA Investor Relations 9
Strategy UNIQA Investor Relations 10
UNIQA will be able to ensure attractive financial results Key initiatives 2016 – 2020 Operating KPIs Targeted financial results 2% GWP 13.5% p.a. operating ROE 1 <24% average in 2017 – 2020 NCR 2 in 2020 “Each year <95% COR in 2020 increasing DPS” >170% in 2016 – 2020 ECR from 2016 Net cost reduction and Combined Ratio improvement will provide attractive returns on key initiatives UNIQA Investor Relations 1: Operating ROE = (EBT excl. goodwill amortisation)/(own funds excl. revaluation reserve); 2: Net cost ratio – changed target after 11 sale of Italian operations
Significant investments to advance UNIQA’s business model started in 2016 Investments assigned to initiatives 2016 – 2020 2021 – 2025 Investments 2016-2020 Total Thereof Total Thereof Σ € 330M Investment Investment Expensed Expensed Operational € 70M € 60M - - 21% Excellence 56% € 75M € 65M - - Digitisation 23% € 150M – € 100M – € 185M € 115M Core IT 200M 115M Operational Excellence € 150M – € 100M – Digitisation € 330M € 240M Sum total 115M 200M Core IT First year of capital expenditure program 2016: EUR 55m through P&L Capital expenditure program in 9M17: EUR 25m through P&L UNIQA Investor Relations 12
1. Highlights 2. Economic Capital and Embedded Value 2016 3. Strategic initiatives 4. 9M17 results 5. Appendix UNIQA Investor Relations 13
Very solid capital position as strong basement Economic capital position Measures used ECR SCR ECR-ratio 217% 214% Internal Model Yes, P&C business No 5,596 5,658 In EUR mn Sovereign Risk charge Yes (full loading) No 2,640 Volatility Adjustments Yes (static) Yes (static) 2,575 Transitionals 1 No No Matching Adjustment No No 2017 Q1 2017 Q2 Development of ECR-ratio 215% Own Funds Economic Capital Requirement 214% 217% 220 210 194% 214% 200 Regulatory SII capital position 205% 190 202% 180 161% 170 182% 153% SCR-ratio 205% 214% 160 ECR ratio 150 140 150% 155% SCR ratio 130 5,575 5,439 120 In EUR mn 110 103% 100 2,658 2012 2013 2014 2015 2016 Q1 2017 Q2 2017 2,608 Diverging movements between regulatory SCR and ECR comes from first time exclusion of Italian business units in the regulatory SCR 2017 Q1 2017 Q2 calculation (ECR already recognised the sale since Q4/2016) Own Funds Solvency Capital Requirement 14 UNIQA Investor Relations 1 Applies to major transitionals on interest rate or technical provision
Group ECR Results Details on Economic Capital Ratio +115% ECR development by Risk Module ECR strongly reduced In EUR mn 5.382 Reduction in almost all risk modules, Tier 3 0,1% driven by sale of Italian business Tier 2 17,3% 258 856 Strongest reduction in Market Risk 153 471 due to risk charge on government 2.809 462 448 Tier 1 unrestr. 162 2.509 2.335 bonds 82,7% Improved diversification effect Market Life Non-life Health Counter- Diversi- Basic Tax Adj. OpRisk ECR Own Eligible own funds further increased risk under- under- CAT party fication ECR funds Strong operating earnings in Life and writing writing & SLT default (PIM) Health more than compensate for reduction of EUR 250mn in Tier1 177 Change vs. 2015 restricted capital and negative 59 32 economic variance from lower interest 17 rates -12 -33 -32 -40 -340 -349 -348 ECR split by Region 1 ECR split by LoB ECR split by Risk Module 4% Life 2% Market risk AT 8% 13% Health SLT Default risk 5% WEM 31% Non-Life Life underwriting CEE 8% 44% 12% Non-Life underwriting SEM Health SLT / CAT EEM 64% 7% 77% 25% 1 Region WEM includes internal risk transfer to UNIQA Re and business in Liechtenstein 15 UNIQA Investor Relations
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