UNIQA continues to grow in 2009
The UNIQA Group continued to grow in financial year 2009. Under difficult structural conditions and despite negative currency developments in Eastern and South-Eastern Europe, provisional data shows that the Group managed to increase the consolidated premium volume written according to international accounting practice (excluding the savings portion of premiums from unit and index-linked life insurance) by 1.2% to EUR 5,004 million. Adjusted for currency fluctuations in CEE and SEE, this produced a growth rate far in excess of 4.5%. If the savings portion of premiums from unit and index-linked life insurance is included, the premium volume written rose by 2.6% based on local currencies (by -0.5% based on the euro).
Contrary to market developments, UNIQA also achieved strong premium growth (excluding the savings portion) of +2.8% in Austria and +9.1% in Western Europe. In the extremely difficult market environment of Eastern and South-Eastern Europe, UNIQA also managed to achieve continued growth in 2009, with the premium volume written (excluding the savings portion) achieving a considerable increase of 7.4% in the region on the basis of local currencies (-7.3% based on the euro).
"2009 at UNIQA was particularly noted for above-average results in the home market of Austria and a negative exchange rate trend across large parts of Eastern Europe, which muted growth in the region on top of generally poor economic growth. However, thanks to our strategy of sustainable growth, we successfully defied the stagnating to falling market trends in practically all 21 countries in which we operate and significantly increased our overall market share. The basis for this is formed by our innovation and quality offensive in all areas and regions, which we have further strengthened even during the economic crisis. Our strong regional diversification in Eastern and Western Europe proved to be a stabilising factor in 2009, particularly in light of the difficult structural conditions, with some negative developments in specific countries and regions. In addition to our strong organic growth, we further strengthened our presence in Eastern and South-Eastern Europe in 2009 by acquiring a majority stake in SIGAL, which operates in Albania, Kosovo and Macedonia, and with the commencement of operations of Raiffeisen LIFE in Russia. The premiums from these subsidiaries are not included in the current data and will be accounted for in the Group premiums in 2010.", UNIQA CEO Konstantin Klien commented.
In Austria, the group companies of the UNIQA Group - excluding acquisitions - increased the premium volume written including the savings portion from unit and index-linked life insurance by almost 5% and clearly outperformed the market forecast of -0.3%. Excluding the savings portion, premiums grew by 2.8% to EUR 3,131 million.
The non-life and accident insurance line succeeded in maintaining growth at a high level across all segments - including motor vehicle insurance - in a difficult competitive environment and grew premiums by 3.9% to a total of EUR 1,324 million. The latest forecast for average Austrian market growth in property and casualty insurance of 1.2% is far below the value achieved by UNIQA.
Life insurance premiums, including the savings portion, rose by more than 6% (market forecast for 2009: -2.5%) because of the massive growth in single premiums with attractive guarantee concepts and innovative, flexible life insurance models, especially for unit-linked life insurance. By increasing life insurance premiums (excluding the savings portion) by 1.1% to EUR 1,034 million, UNIQA also succeeded in making above-average use of the market potential. In health insurance, the UNIQA Group further secured its market leadership with a 3.4% increase in premiums to EUR 773 million.
UNIQA succeeded in strongly increasing premiums in Eastern and South-Eastern Europe, with the exception of life insurance, following on the enormous rates of increase in the previous year and despite the fact that the region was heavily impacted by the consequences of the financial and economic crisis. Above all in property and casualty insurance, which extensively dominates the markets in the region, the UNIQA Group successfully decoupled itself from the stagnating market trend and generated premium growth of 19.1% to EUR 729 million on the basis of local currencies (+3.9% based on the euro).
Premiums earned from private health insurance continued to develop extremely dynamically in this region - even though from a low base. Adjusted for exchange rate fluctuations, the UNIQA Group more than doubled the premium volume written in this segment by 114.5% to almost EUR 15 million (+66.9% based on the euro). As expected, it was not possible in the life insurance line to offset the marked industry-wide correction amongst single premium policies and the weak demand for unit-linked life insurance through the increase in ongoing life insurance premiums. Overall, life insurance premiums (excluding the savings portion of unit-and index-linked life insurance) fell by 12.5% in the region to EUR 335 million (-26.1% based on the euro).
Overall, the Group companies of the UNIQA Group in Eastern and South-Eastern Europe generated a premium volume written (excluding the savings portion) of EUR 1,079 million - adjusted for exchange rate fluctuations, this corresponds to growth of 7.4% (-7.3% based on the euro). Including the savings portion, the premium volume written in the region rose by 4.1% (-9.9% based on the euro).
In contrast to Eastern Europe, the life insurance premiums increased sharply in Western Europe, while the consequences of the economic crisis made themselves clearly felt in the property and casualty lines. In this region, the UNIQA Group succeeded in increasing the life insurance premium volume written (excluding the savings portion from unit- and index-linked life insurance) by a significant 47.0% to EUR 255 million. On the other hand, the premiums from property and casualty insurance in the region fell by 3.5% to EUR 390 million. In the health insurance segment, premiums fell by 1.1% to EUR 149 million. Overall, UNIQA was able to grow the Group premium volume written (excluding the savings portion) in Western Europe by 9.1% to EUR 794 million. Including the savings portion yields an 8.9% decline in premiums for the markets of Western Europe.