EANS-News: UNIQA Insurance Group AG / Further rise in UNIQA Embedded Value in 2013: Positive signal to shareholders

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Company Information/Embedded Value in 2013

Wien (euro adhoc) - Further rise in UNIQA Embedded Value in 2013:
Positive signal to shareholders

- Group Embedded Value (GEV) increased to 4,217.2 million euros
(+45.4 per cent) - Boosted by capital increase (re-IPO) and change in
interest-rate levels - Positive operating effects on profitability as
a result of UNIQA 2.0 strategic program

In 2013, market-consistent Embedded Value after minority interests of
UNIQA Group increased by 45.4 per cent year-on-year to 4,217.2
million euros (2012: 2,899.6 million euros). The present value in the
life and health insurance sector (value of in-force business/VIF)
rose by 39.7 per cent to 1,702.6 million euros (2012: 1,218 million
euros). The return on Group Embedded Value increased to 657.5 million
euros (2012: 253.3 million euros) or to 23.2 per cent (2012: 16.5 per
cent). And the New Business Margin - a key figure for profitability -
rose to 2.2 per cent (2012: 1.5 per cent). For CEE, it remained at a
high profit level in 2013 at 5.8 per cent.

The development of Embedded Value shows that the company is on the
right track. UNIQA director, CRO Kurt Svoboda, stated: "In 2013, we
successfully completed a further step of our long-term UNIQA 2.0
strategic program as scheduled. The key figures and our findings and
analyses from the embedded-value calculations are extremely relevant
to the management and alignment of the company and the life insurance
business in particular".

This positive performance is partly attributable to the financial
performance, the operating profit in 2013 and the growth in equity as
a result of the capital increase in the past financial year. An
improvement in capital market assumptions as a result of rising
interest rates and falling volatility also contributed to the
development of Embedded Value.

Successful strategies bearing fruit UNIQA pursues a long-term
asset/liability management (ALM) approach. Accordingly, the maturity
structures of the asset and liability items are coordinated, thus
reducing the interest rate risk. This also decreases the sensitivity
of the embedded value to interest rate fluctuations. In addition, in
the context of a risk/return approach, the company is working on a
changed product strategy and realignment of profitability management
in life insurance. Last year's re-IPO has also had a positive impact
on the embedded value.

The Market-Consistent Embedded Value, which is calculated based on
international guidelines, represents the value of the insurance
policy portfolio and is composed of the net assets for life, health,
property and casualty insurance as well as the current value of
future income from the existing life and health insurance portfolio.
This calculation took into account the life and health insurance
business of UNIQA in Austria, Italy, Poland, Slovakia, the Czech
Republic, Hungary and Russia.

The Market-Consistent Embedded Value of the UNIQA Group was reviewed
in full by B & W Deloitte GmbH, Cologne.

UNIQA Facts & Figures Group key figures 2013: Premiums written -
including the savings portion of unit- and index-linked life
insurance - increased by 6.2 per cent to 5,885.5 million euros (2012:
5,543.1 million euros). Premiums earned - including the savings
portion of unit- and index-linked life insurance - rose by 6.9 per
cent to 5,638.2 million euros (2012: 5,273.8 million euros).

Retained insurance benefits increased by 5.2 per cent to 3,955.3
million euros (2012: 3,758.5 million euros).

Operating expenses (less reinsurance commissions received and profit
shares from reinsurance business ceded) rose by 2.9 per cent to
1,357.6 million euros (2012: 1,319.3 million euros). This includes
non-recurring provisions for new strategic projects (operational
excellence and IT) in the amount of 25 million euros.

The Group cost ratio after reinsurance fell to 24.1 per cent (2012:
25.0 per cent). Adjusted for the non-recurring provisions for new
strategic projects, the Group cost ratio amounted to 23.7 per cent.

The combined ratio in property and casualty insurance after
reinsurance improved to 99.9 per cent (2012: 101.3 per cent).
Adjusted for flood-related costs and the non-recurring provisions,
the combined ratio amounted to 98.3 per cent.

Investments, including unit- and index-linked life insurance
investments, increased by 1,057.6 million euros as against the end of
the previous year to 27,383.6 million euros (31 December 2012:
26,326.0 million euros). Net investment income declined to 780.0
million euros as a result of the low level of interest rates (2012:
791.4 million euros).

The Group's profit on ordinary activities (EBT) increased by 49.7 per
cent to 305.6 million euros (2012: 204.2 million euros).

Net profit for the period increased by 72.3 per cent to 286.8 million
euros (2012: 166.5 million euros). This figure includes the result of
discontinued operations in the amount of 50.0 million euros (2012:
9.9 million euros), which is attributable to the reversal of a
provision (for HEROS litigation risks) in connection with the
disposal of the Mannheimer Group.

Consolidated net profit (after taxes and minority interests)
increased by 123.0 per cent to 283.4 million euros (2012: 127.1
million euros).

The Management Board will propose to the Supervisory Board and the
Annual General Meeting the distribution of a dividend of 35 cents per
share for the 2013 financial year (2012: 25 cents). Based on a total
of 308,180,530 dividend-bearing shares, this corresponds to a total
distribution of 107.9 million euros and a distribution ratio of 37.6
per cent of net profit for the period.

The total equity of the UNIQA Group increased by 37.4 per cent to
2,789.9 million euros as a result of the re-IPO (31 December 2012:
2,030.0 million euros).

The solvency ratio (Solvency I) rose to 287.1 per cent (31 December
2012: 216.0 per cent).

The Group's total assets increased to 31,068.6 million euros (31
December 2012: 30,054.6 million euros).

The return on equity (ROE) after taxes and minority interests
amounted to 11.9 per cent (2012: 8.8 per cent).

UNIQA 2.0 UNIQA 2.0 is a long-term strategy programme that the
company has been implementing since May 2011. UNIQA has set itself
the target of increasing its customer base to 15 million by 2020 and
improving its EBT by up to 350 million euros between 2010 and 2012.
In the process, the company is focusing on its core business as a
primary insurer in its core markets of Austria and Central and
Eastern Europe (CEE). The business model is geared towards profitable
growth and long-term value added in these markets. UNIQA intends to
increase the profitability of UNIQA Austria, improve the productivity
of Raiffeisen Versicherung Austria and exploit growth potential in
CEE, and is implementing a consistent risk/return approach.

UNIQA Group The UNIQA Group is one of the leading insurance groups in
its core markets of Austria and Central and Eastern Europe (CEE).
22,000 employees and exclusive sales partners serve around 9.3
million customers in 19 countries. UNIQA is the second-largest
insurance group in Austria with a market share of around 22 per cent.
UNIQA operates in 15 markets in the CEE growth region: Albania,
Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic,
Hungary, Kosovo, Macedonia, Montenegro, Poland, Romania, Russia,
Serbia, Slovakia, and Ukraine. The UNIQA Group also includes
insurance companies in Italy, Switzerland and Liechtenstein.

Reservations concerning statements about the future This message
contains statements that refer to future developments of the UNIQA
Group. These statements are appraisals that are made based on all
information available to us at the current point in time. If the
assumptions on which they are based do not occur, the actual events
may vary from the results currently expected. For this reason, we
cannot accept liability for these statements.

Further inquiry note:
UNIQA Insurance Group AG
Norbert Heller
Tel.: +43 (01) 211 75-3414
mailto:norbert.heller@uniqa.at

end of announcement euro adhoc
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company: UNIQA Insurance Group AG
Untere Donaustraße 21
A-1029 Wien
phone: 01/211 75-0
mail: investor.relations@uniqa.at
WWW: http://www.uniqagroup.com
sector: Insurance
ISIN: AT0000821103
indexes: WBI, ATX Prime, ATX
stockmarkets: official market: Wien
language: English