EANS-News: UNIQA Insurance Group AG / UNIQA on track to achieve targets set

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9-month report

UNIQA on track to achieve targets set

* Planned decrease in single premiums in life insurance reduces Group
premiums written by 2.3 per cent to EUR 4,753.3 million

* Recurring Group premiums climb by 1.9 per cent to EUR 3,949.6
million

* Retained insurance benefits down 2.3 per cent at EUR 3,431.4
million

* Combined ratio virtually unchanged at 98.2 per cent (+0.2 pp)

* Net investment income decreases to EUR 490.1 million (-20.7 per
cent) due to further deterioration in the low-interest rate
environment

* Earnings before taxes down 42.9 per cent at EUR 172.2 million in
line with expectations

* Earnings outlook for 2016 confirmed: up to 50 per cent lower than
record earnings from 2015 due to high future investments and
strained economic conditions

UNIQA CEO Andreas Brandstetter comments on the first three quarters
of 2016 as follows: "With earnings before taxes of EUR 172.2 million
after nine months, we are in line with our expectations overall,
although an unexpectedly large number of major claims arose in
property and casualty insurance in the third quarter. At the start of
the year, we already announced that earnings for the current year
would be up to 50 per cent lower than the record earnings from 2015
due to high future investments and the strained economic conditions.
We are therefore on track to achieve the targeted earnings for 2016
as a whole, even though the challenging low interest rate
environment is still putting investment income under a great deal of
pressure."

With regard to the development of claims, Brandstetter comments: "The
third quarter of 2016 was influenced by a larger than average number
of major claims in Austria and the international markets. As a
result, the combined ratio in property and casualty insurance
increased slightly to 98.2 per cent in the first nine months of the
year. We are not satisfied with this figure, which is considerably
higher than we had expected. Therefore, we will continue unabated
with our efforts to achieve further improvements in this area on a
sustainable basis. Returning to the path of recent years with a
steady decrease in the combined ratio is a top priority for us."

With regard to the development of premiums, Brandstetter comments:
"In the first three quarters of 2016, recurring premiums climbed by
1.9 per cent overall as a result of moderate growth in Austria and
more substantial increases internationally. The decline in premiums
written is entirely due to the fact that we deliberately reduced
single premium business because it is not attractive for our
customers in the current interest rate environment and has a poor
return on capital for the Group. We achieved very good growth in
property and casualty insurance and also continued our solid growth
in health insurance." With regards to the anticipated development,
Brandstetter says: "For the 2016 financial year, we still expect
earnings before taxes to be up to 50 per cent lower than the very
good earnings for 2015. This is due firstly to the innovation
programme launched at the beginning of 2016 with significant future
investments in the redesign of the business model, the enhancement of
staff expertise and the necessary modernisation of our IT landscape.
Secondly, we do not expect the persistently difficult conditions with
negative interest rates, decreasing investment income and political
uncertainty in individual markets to improve in the medium term. We
are keeping to our plan to continuously increase the annual
distribution per share in the years to come on the basis of very
sound capital resources as part of a progressive dividend policy."

Key Group figures for first nine months of 2016 in detail

The premiums written by the UNIQA Group including the savings portion
of unit- and index-linked life insurance fell by 2.3 per cent to EUR
4,753.3 million in the first three quarters of 2016 (1 - 9/2015: EUR
4,866.1 million) due to the reduction in single premium business in
the life insurance segment in line with planning. While recurring
Group premiums rose by 1.9 per cent to EUR 3,949.6 million (1 -
9/2015: EUR 3,876.8 million), single premiums in life insurance fell
by 18.8 per cent to EUR 803.7 million (1 - 9/2015: EUR 989.3
million).

Premiums written in health insurance climbed by 4.0 per cent to EUR
778.8 million in the period under review (1 - 9/2015: EUR 749.1
million), while in property and casualty insurance they grew by 2.4
per cent to EUR 2,079.1 million in the first nine months of 2016 (1 -
9/2015: EUR 2,029.6 million). In life insurance, total premiums
written - including the savings portion of unit- and index-linked
life insurance - declined by 9.2 per cent to EUR 1,895.3 million (1 -
9/2015: EUR 2,087.5 million) due to the reduction of single premium
business.

Premiums earned in accordance with IFRS (i.e. not including the
savings portion of unit- and index-linked life insurance) decreased
by 2.1 per cent to EUR 4,219.3 million (1 - 9/2015: EUR 4,307.6
million).

The UNIQA Group's net insurance benefitsfell by 2.3 per cent to EUR
3,431.4 million in the first nine months of 2016 (1 - 9/2015: EUR
3,512.5 million) as a result of the decline in premiums in life
insurance.

Total operating expensesless reinsurance commissions received rose by
1.7 per cent to EUR 1,015.0 million in the first nine months of 2016
(1 - 9/2015: EUR 998.5 million). Acquisition expenses posted a
decrease of 0.8 per cent to EUR 702.7 million (1 - 9/2015: EUR 708.5
million). Other operating expenses (administration costs) climbed by
7.8 per cent in the first three quarters of 2016 to EUR 312.4 million
(1 - 9/2015: EUR 289.9 million) as a result of expenses relating to
the innovation and investment programme.

As expected, theGroup cost ratiorose to 22.4 per cent (1 - 9/2015:
21.4 per cent) as a result of the decrease in premiums and the
increase in investments. The combined ratioafter reinsurance
increased slightly to 98.2 per cent (1 - 9/ 2015: 98.0 per cent) due
to higher than average expenses from major claims in the third
quarter.

Net investment incomefell by 20.7 per cent to EUR 490.1 million in
the first three quarters of 2016 (1 - 9/2015: EUR 618.0 million),
partly due to negative exchange rate effects. The comparative figure
for the previous year was influenced by positive measurement results
and the reorganisation of the strategic investment policy in 2015,
whereas in the first nine months of 2016, it was curbed by further
intensification of the low-interest rate environment.

The investmentof the UNIQA Group (including unit- and index-linked
life insurance investments) increased as against the end of the
previous year to EUR 30,584.9 million as at 30 September 2016 (31
December 2015: EUR 29,416.1 million).

The technical result of the UNIQA Group declined by 50.7 per cent to
EUR 74.4 million in the first three quarters of 2016 (1 - 9/2015: EUR
151.0 million). Operating earnings declined by 32.3 per cent to EUR
230.6 million (1 - 9/2015: EUR 340.4 million), chiefly as a result of
the decline in the investment result. The UNIQA Group's earnings
before taxes amounted to EUR 172.2 million (1 - 9/ 2015: EUR 301.9
million). These earnings include extraordinary income before taxes of
EUR 37 million from the sale of our minority financial investment in
Niederösterreichische Versicherung AG, investments of around EUR 30
million as part of our innovation programme, and a EUR 30 million
increase in expenses from major claims compared to the previous year.

Consolidated profit(net profit for the period attributable to the
shareholders of UNIQA Insurance Group AG) decreased in line with
planning by 39.3 per cent to EUR 148.8 million (1 - 9/2015: EUR 245.0
million). Earnings per shareamounted to EUR 0.48 (1 - 9/2015: EUR
0.79).

The UNIQA Group's equityposted an increase of 6.8 per cent since the
beginning of the year and amounted to EUR 3,367.9 million as at 30
September 2016 (31 December 2015: EUR 3,152.7 million).

The average number of employeesat the UNIQA Group decreased to 13,908
in the first nine months of 2016 (1 - 9/2015: 14,038).

Outlook for 2016

At the beginning of 2016, UNIQA launched the biggest innovation
programme in the company's history and will invest around EUR 500
million in the redesign of the business model, the necessary build-up
of staff expertise and the required IT systems over the next ten
years. A good portion of these considerable future investments will
take effect in 2016. In combination with the persistently difficult
conditions - such as ongoing low interest rates, sinking investment
income and political uncertainty in individual markets - UNIQA
expects earnings before taxes in the 2016 financial year to be up to
50 per cent lower than the very good earnings for 2015. Despite the
investments and the challenging economic environment, UNIQA intends
to continuously increase the annual distribution per share in the
years to come as part of a progressive dividend policy.

Forward-looking statements

This press release contains statements concerning UNIQA's future
development. These statements present estimates which were reached on
the basis of all of the information available to us at the present
time. If the assumptions on which they are based do not occur, the
actual results may deviate from the results currently expected. As a
result, no liability is accepted for this information.

UNIQA The UNIQA Group is one of the leading insurance groups in its
core markets of Austria and Central and Eastern Europe (CEE). 21,300
employees and exclusive sales partners serve more than 10 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.

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

Original-Content von: UNIQA Insurance Group AG, übermittelt durch news aktuell