UNIQA Posts Significant Increase in Q4 Profit
According to preliminary unaudited data, in the fourth quarter of 2009 the UNIQA Group earned profits of 39.5 mln euro, the best quarterly results in the last one and a half years.
For the entire financial year 2009, the preliminary data yield a profit of 81.5 mln. Euros (2008: 90 mln euros).
"In light of the severe turbulence on the international capital markets, in a few Central and Eastern European economies, the severe weather damages and our continued investments in further growth, the 9.5% fall in results is moderate. It is also pleasing to see that each of our three strategic regions - Austria, Western Europe as well as Eastern and South Eastern Europe - delivered positive results. Our unusually large (compared to the rest of the market) growth in premiums and only slight fall in results in comparison with the previous year underscore the UNIQA Group's stability, even under persistently difficult circumstances. This was also confirmed by our successfully placed capital increase in December and our continued "A" rating by Standard & Poors", UNIQA CEO Konstantin Klien commented.
In consolidated premium volume written, the UNIQA Group achieved an increase of 1.2% on 5.004 mln. euros according to international accounting rules (i.e., excluding the savings portion of the unit- and index-linked life insurance). Adjusted for exchange rate fluctuations, premium growth of more than 4.5% was achieved.
In the home market of Austria, premium volume written climbed by 2.8% to 3,131 mln euros. Including the savings portion of premiums from unit- and index-linked life insurance, growth almost reached 5% while the prognosis for the Austrian insurance market was at -0.3%. The UNIQA Group's companies in Austria achieved the strongest growth in life insurance with more than 6% (including savings portions and +1.1% excluding savings portions), followed by property and casualty insurance at 3.9%, and health insurance at 3.4%.
In Eastern and South Eastern Europe, the UNIQA Group's companies generated a premium volume written of approximately 1,079 mln euros (+7.4% adjusted for currency fluctuations / -7.3% on a euro basis). In the property and casualty insurance that dominated the markets, we were able to gain 19.1% (currency-adjusted) and more than double our premiums in health insurance. In life insurance, UNIQA companies' premiums fell by 12.5% (currency-adjusted) in the course of significant industry-wide market corrections.
In Western Europe, UNIQA managed to increase its premium volume written by 9.1% to 794 mln euros. Life insurance premiums increased by 47% while there were slight drops in health insurance (1.1%) and property and casualty insurance (3.5%).
Group-wide, adjusted for currency fluctuations, property and casualty insurance achieved the strongest growth in premiums at 6.9%. Health insurance increased by 3.7% and life insurance - despite heavily negative market trends - by 2.5%.
Insurance benefits to UNIQA Group customers and corresponding provisions increased - according to preliminary data - by approximately 15% to 4,054 mln euro. This growth was almost exclusively due to extraordinary storm events and the strong increase in amounts allocated to deferred profit sharing because of significantly increased investment income. Group-wide, retained insurance benefits in property and casualty insurance climbed primarily because of storm damage by 8.2% to 1,562 mln euro. In life insurance, the increased amounts allocated to deferred profit sharing resulted in an increase in benefits of 27.2% to 1,690 mln euro. Health insurance benefits rose by 5.3% to approximately 812 mln euro.
Costs increased primarily because of social capital expenses that increased by 2.3% to 1,284 mln euro. Adjusted for this effect caused by the interest rate situation in 2008 and 2009, costs fell by approximately 2.4%. The cost ratio will therefore sink significantly in comparison to the previous year from an adjusted perspective.
In investments, preliminary data show a gain of 5.9% to 22.6 bln euro. After 2008, net investment income in 2009 increased significantly, to approximately 715 mln euro.