UNIQA: Capital ratio increases to 255% and good expectations for 2024

30 April 2024 — Daniela GHETU

The Austrian UNIQA Group report, solvency capital report and sustainability report for 2023 was published confirming the “very positive developments of the companies in CEE, which made a substantial contribution of around 50% to its increased profitability.”

“The 2023 financial year was once again successful for UNIQA. As a group, we were able to grow significantly in the premiums written by around 10% and further increase our result to EUR 426 million - despite extreme storm events, especially in Austria," said Kurt SVOBODA, CFO/CRO UNIQA Insurance Group AG.

“For the 2024 financial year, we are concentrating on further improving our core insurance business in our two home markets of Austria and CEE,” says SVOBODA, giving an outlook. “Based on a solvency ratio of at least 170%, we strive to allow our shareholders to participate in the success of our company progressively, i.e. with annually increasing dividend payments. The payout ratio will remain unchanged at up to 60%.”

With the switch to the new accounting standards IFRS 17 and IFRS 9 from January 1, 2023, UNIQA has also adjusted the calculation of the earnings targets for 2024 accordingly. A premium growth of >4%, a total cost ratio of <32.5%, a combined ratio in property and casualty insurance of <92%, a return on equity of >14%, a solvency ratio of >170% and customer satisfaction are expected of ≥4.5 stars. The dividend should be at least EUR 0.57.

The premiums written rose by 9.7% to EUR 7,185.6 million in 2023, and earnings before taxes were above expectations at EUR 426.4 million. The combined ratio improved significantly to 89.4%, with the very good underwriting development of international business playing an important role in this.

In 2023, special attention was paid to the health ecosystem. “Over the next few years, EUR 245 million will be invested in our private hospitals, in our own network of doctors, in telemedicine, but also in occupational health care and 24-hour care at home,” explains SVOBODA. The Mavie brand focuses on innovative services and products beyond traditional insurance. The portfolio is broad and ranges from home tests for blood or microbiome, to psychosocial coaching for employees of corporate customers, to 24-hour care at home.

As of December 31, 2023, UNIQA has a strong and stable regulatory capital ratio according to Solvency II of 255% compared to the previous year (2022: 246%). The group report on solvency and financial position will be published on May 17, 2024.

The regulatory capital ratio, for which UNIQA does not make use of any transitional provisions, results from the ratio of the equity capital of EUR 5,941 million (2022: EUR 5,607 million) and the equity capital requirement of EUR 2,328 million (2022: EUR 2,284 million). The share of particularly safe Tier 1 capital (core capital) currently accounts for 86% of UNIQA's own funds.

Further details can be found in  the 2023 Group Report “living better together” and the  Solvency Capital Report 2023 , both of which were published today.

Company outlook

For the 2024 financial year, the last of the Group’s strategy program “UNIQA 3.0 – Seeding the Future”, UNIQA is concentrating on further improving our core insurance business in our two home markets of Austria and CEE.

Expectations of strong growth in property and health insurance are based on targeted sales activities as well as adjustments related to inflation and index developments.

However, in the 2024 financial year we continue to expect high expenses for services in property and health insurance as well as - due to inflation - in the general cost area. It is therefore crucial to maintain strict cost discipline and continuously make optimizations in cost management.

Based on a solvency ratio of at least 170%, UNIQA strives to allow its shareholders to participate in the success of the company progressively, i.e. with annually increasing dividend payments. The payout ratio will remain unchanged at up to 60%.

These forecasts are subject to possible negative influences on the Group’s consolidated results, which may arise from geopolitical upheavals and the associated uncertainties for the global capital markets, from a volatile interest rate environment, the development of inflation in general, and, above all, from increased claims payments as a result of natural catastrophes. In connection with this, UNIQA expects its target profitability to be at the level of 2023.
 

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