All business lines contributed to this increase: property and casualty insurance grew by 4.4%, health insurance by 3.8% and life insurance by 2.5%. "In view of the depreciation of EUR 127 million on Russian bonds, as already communicated in July, and the high level of adverse impact from major claims and natural catastrophes, the results for the first half of the year are solid," says Andreas Brandstetter, CEO of the UNIQA Insurance Group.
The combined ratio rose from a very strong 92.6% in the first half of 2021 to 95.0%. Responsible for this were not only higher burdens due to major claims and natural catastrophes, but also inflation-related price increases for repair services - both primarily at our Austrian subsidiary. At the same time, however, UNIQA was able to further improve the total cost ratio slightly from 26.9% to 26.8%. "A look at the challenging first half of 2022 shows that, despite strong headwinds, we are still on course with our strategic program, 'UNIQA 3.0 - Seeding the Future'. This is mainly due to the fact that we had already launched a number of strategic initiatives at an early stage in 2020, of which the cost-cutting measures in particular are paying off, in view of the current inflation," adds Brandstetter.
Consolidated key figures for 1 - 6/2022 in detail
The UNIQA Group's premiums written including savings portions from unit-linked and index-linked life insurance rose by 3.8% to EUR 3,436.0 million in the first half of 2022 (1 - 6/2021: EUR 3,310.0 million). While recurring premiums grew by 3.4% to EUR 3,349.3 million (1 - 6/2021: EUR 3,239.2 million), single premiums in life insurance increased by 22.4% to EUR 86.7 million (1 - 6/2021: EUR 70.8 million). Premiums earned including net savings portions of the premiums from unit-linked and index-linked life insurance totaling EUR 174.7 million (1 - 6/2021: EUR 160.1 million) rose by 4.5% to EUR 3,116.4 million in the first half of 2022 (1 - 6/2021: EUR 2,983.2 million). Premiums earned (net, in accordance with IFRS) increased by 4.2% to EUR 2,941.8 million (1 - 6/2021: EUR 2,823.1 million).
Premiums written in property and casualty insurance grew by 4.4% to EUR 1,960.0 million in the first six months of 2022 (1 - 6/2021: EUR 1,877.4 million). In health insurance, premiums written in the reporting period rose by 3.8% to EUR 638.3 million (1 - 6/2021: EUR 615.2 million). In life insurance, premiums written including savings portions from unit-linked and index-linked life insurance rose overall in the first six months of 2022 by 2.5% to EUR 837.6 million (1 - 6/2021: EUR 817.5 million). The single premium business grew in the first half of 2022 by 22.4% to EUR 86.7 million (1 - 6/2021: EUR 70.8 million).
The total amount of net insurance benefits in the UNIQA Group rose by 3.7% to EUR 2,125.3 million in the first half of 2022 (1 - 6/2021: EUR 2,050.3 million), which was less than the growth in premiums earned. The loss ratio after reinsurance therefore increased slightly in the first six months of 2022 to 63.0% (1 - 6/2021: 62.2%). The combined ratio after reinsurance increased to 95.0% (1 - 6/2021: 92.6%).
Total operating expenses, less reinsurance commission received, rose in the first six months of 2022 by 4.0% to EUR 834.3 million (1 - 6/2021: EUR 802.5 million). Expenses for the acquisition of insurance increased by 14.6% to EUR 568.0 million (1 - 6/2021: EUR 495.8 million). The reinsurance commission received amounting to EUR 12.2 million (1 - 6/2021: EUR 11.0 million) has already been deducted from the acquisition costs. Other operating expenses (administrative expenses) decreased in the first half of 2022 as a result of the successful cost-reduction measures by 13.2% to EUR 266.3 million (1 - 6/2021: EUR 306.7 million). This item includes costs under the innovation and investment programme amounting to around EUR 19 million (1 - 6/2021: approximately EUR 24 million).
The total cost ratio, i.e. the ratio of total operating expenses to the premiums earned including net savings portions of the premiums from unit-linked and index-linked life insurance, decreased slightly to 26.8%, taking into account the reinsurance commission received (1 - 6/2021: EUR 26.9%).
The UNIQA Group's investment portfolio (including investment property, financial assets accounted for using the equity method and other investments) fell to EUR 18,927.7 million as at 30 June 2022 compared with the last reporting date (31 December 2021: EUR 21,785.0 million), due to the decreased measurement of financial instruments available for sale in connection with increased yields.
Net investment income fell by 31.2% to EUR 211.2 million in the first half of 2022 (1 - 6/2021: EUR 307.2 million). In particular, the impairment of Russian bonds in the amount of EUR 127 million as well as additional impairments on the investment in RBI amounting to EUR 28 million had a negative effect in the first half of 2022. In contrast, realised gains in equity and equity funds of around EUR 63 million and realised gains from the sale of properties of around EUR 36 million had a positive effect on net investment income in the first half of 2022. The application of the equity method of accounting for the 15.3% holding in construction group STRABAG SE resulted in a positive contribution to earnings in the amount of EUR 34.1 million in the first half of 2022 (1 - 6/2021: EUR 12.4 million).
The technical result of the UNIQA Group rose by 7.6% in the first half of 2022 to EUR 119.5 million (1 - 6/2021: EUR 111.1 million), mainly due to the improved results in health and life insurance. Due to the lower net investment income, however, the operating profit fell by 21.9% to EUR 216.4 million (1 - 6/2021: EUR 277.0 million). The UNIQA Group's earnings before taxes dropped accordingly by 21.5% to EUR 169.4 million (1 - 6/2021: EUR 215.7 million).
Consolidated profit/(loss) (i.e. the proportion of the net profit for the period attributable to the shareholders of UNIQA Insurance Group AG) decreased by 11.8% to EUR 150.6 million (1 - 6/2021: EUR 170.7 million). Earnings per share amounted to EUR 0.49 (1 - 6/2021: EUR 0.56).
Equity attributable to the shareholders of UNIQA Insurance Group AG fell to EUR 1,969.6 million as at 30 June 2022 (31 December 2021: EUR 3,303.6 million). The main reasons for this development were the decrease in the measurement of financial instruments available for sale due to the increase in returns and the dividend payment for the 2021 financial year.
The Solvency II ratio as at 30 June 2022 was approximately 234% (31 December 2021: 196%).
The average number of employees at the UNIQA Group fell in the first six months of 2022 to 14,273 (1 - 6/2021: 14,748).
Outlook
UNIQA expects premium income to rise and projects robust growth in its core underwriting business this year. However, it is currently impossible to provide a solid assessment of capital market developments and thus a stable forecast regarding net investment income. UNIQA therefore remains unable to make a profit forecast for the year as a whole.
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