EANS-News: UNIQA Insurance Group AG / UNIQA Embedded Value still at solid level in 2014/Economic capital ratio remains high

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Company Information/Group Embedded Value/Economic capital ratio

UNIQA Embedded Value still at solid level in 2014
Economic capital ratio remains high

· Group Embedded Value almost unchanged at EUR4.201 million
· Economic capital ratio (ECR) at solid 150% according to internal
approach
· UNIQA charges government bonds with capital

The market-consistent Embedded Value of the UNIQA Group before
minority interests remained almost unchanged at EUR4,201 million in
the year under review (2013: EUR4,217 million). The present value in
the life and health insurance sector (value of in-force business/VIF)
fell by 8.0% to EUR1,574 million (2013: EUR1,703 million), while the
adjusted equity applicable rose by 4.0% to EUR2,601 million (2013:
EUR2,489 million).

UNIQA CRO/CFO Kurt Svoboda commented: "The development of the
Embedded Value shows that the path adopted by the company in the life
insurance sector is the right one in light of the current strained
economic situation and, in particular, the low interest-rate
environment. The slight decline in Embedded Value was almost
exclusively attributable to the low interest rates, which had an
impact on carrying amounts in the area of life and health insurance
in particular."

The new business margin - a key figure for profitability - declined
to 1.7% (2013: 2.2%; 2012: 1.5%). For CEE, it remained at a high
profit level of 5.9% in 2014 (2013: 5.8%).

Capital ratios remain high The economic capital ratio of the UNIQA
Group, which serves as an indicator of capitalisation, was at a sound
level of 150% at 31 December 2014. This represents a reduction of 11
percentage points as against the previous year, which also reflects
the lower level of interest rates at present. Kurt Svoboda: "UNIQA is
pursuing a particularly conservative approach in terms of its capital
ratio. Government bonds that could be measured on a risk-free basis
in accordance with Solvency II are still measured with risk capital.
For us, this means the recognition of an additional EUR532 million of
risk capital. Although this serves to decrease our risk ratio, it
reflects the actual risk situation to a far greater extent."

The economic capital ratio, which represents the ratio of economic
capital of EUR4,080 million (2013: EUR4,442 million) and the economic
capital requirements of EUR2,722 million (2013: EUR2,762 million), is
calculated using the internal capital approach. Economic capital
combines tier 1 capital (core capital) and tier 2 capital
(supplementary capital), while the economic capital requirements
represent the theoretical requirements for capital in the event of an
extreme stress scenario.

The market-consistent Embedded Value, which is calculated on the
basis of 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 and the economic capital ratio
of the UNIQA Group were audited in full by B & W Deloitte GmbH,
Cologne.

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