UNIQA Embedded Value remained almost unchanged in 2014

16 April 2015 — Vlad BOLDIJAR
Last year, the market-consistent Embedded Value of the UNIQA Group before minority interests remained almost unchanged at EUR 4.20 billion (EUR 4.21 billion in 2013), the Austrian insurer said in a press release. In the life and health insurance sector, the indicator fell by 8.0% to EUR 1.57 billion (vs. EUR 1.70 billion in 2013), while the adjusted equity applicable rose by 4.0% to EUR 2.60 billion (vs. EUR 2.48 billion a year before).

"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", commented Kurt SVOBODA, UNIQA CRO/CFO.

At the same time, the new business margin declined to 1.7% (vs. 2.2% in 2013 or 1.5% in 2012), while for the CEE region, it remained at a high profit level of 5.9% in 2014 (5.8% in 2013).

The economic capital ratio of the Group, was at a level of 150% at 31 December 2014. This represents a reduction of 11% as against the previous year, "which also reflects the lower level of interest rates at present", the Austrian insurer noted in the press release.

"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 ccordance with Solvency II are still measured with risk capital. For us, this means the recognition of an additional EUR 532 million of risk capital. Although this serves to decrease our risk ratio, it reflects the actual risk situation to a far greater extent", said Kurt SVOBODA.

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