EANS-News: UNIQA Insurance Group AG / UNIQA increases earnings and premiums in strong first quarter 2015

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3-month report

UNIQA increases earnings and premiums in strong first quarter 2015

* Profit on ordinary activities (EBT) rises by 15.5 per cent to
EUR94.0 million * Consolidated net profit up 37.5 per cent to EUR76.9
million * Strong growth in premiums of 19.8 per cent to EUR2,039.5
million * Administrative expenses reduced by 10.7 per cent * EBT
forecast for 2015 as a whole unchanged at between EUR425 million and
EUR450 million

In the first three months of 2015, UNIQA Insurance Group AG (UNIQA
Group) generated a profit on ordinary activities (EBT) of EUR94.0
million (+15.5 per cent; 1-3/2014: EUR81.4 million). Consolidated
profit (after taxes and minority interests) amounted to EUR76.9
million (+37.5 per cent; 1-3/2014: EUR55.9 million). UNIQA achieved
this growth in earnings despite having recognised write-downs of
around EUR9 million on senior bonds guaranteed by the Federal State
of Carinthia of Heta (formerly Hypo Alpe-Adria-Bank International) as
a result of the debt moratorium issued by the Austrian Financial
Market Authority (FMA) in March.

UNIQA CEO Andreas Brandstetter comments: "This growth and good start
to 2015 was primarily due to further reduction of administrative
expenses and a higher investment result. There was also a positive
premium development, although we will not continue this in the same
form in the coming quarters, since we are not aiming for any further
growth in single premium business in life insurance in the current
environment. Despite the historic challenge of a low-interest
environment further exacerbated by the ECB's bond purchases and a
fragile economic development in parts of Europe, we are hold on to
our ambitious outlook for earnings in 2015."

Key Group figures for Q1 2015

The UNIQA Group's premiums written, including the savings portion of
unit- and index-linked life insurance, increased by 19.8 per cent to
EUR2,039.5 million in the first three months (1-3/2014: EUR1,702.6
million). There was extremely strong growth in single premium
business in life insurance (+129.9 per cent), which was chiefly
attributable to very strong demand in bank-based sales in Austria and
Italy. In total, premiums written in life insurance - including the
savings portion of unit- and index-linked life insurance - rose by
48.5 per cent to EUR972.1 million (1-3/2014: EUR654.8 million).
Premium income in the health insurance business area climbed by 4.6
per cent to EUR260.9 million (1-3/2014: EUR249.5 million), while in
property and casualty insurance it grew by 1.0 per cent to EUR806.5
million (1-3/2014: EUR798.3 million).

Retained premiums earned in accordance with IFRS (i.e. not including
the savings portion of unit- and index-linked life insurance)
increased by 24.6 per cent to EUR1,707.7 million (1-3/2014:
EUR1,370.9 million).

The UNIQA Group's retained insurance benefits rose by 35.2 per cent
to EUR1,485.9 million in the first three months of 2015 (1-3/2014:
EUR1,098.9 million) due to the substantial increase in premiums in
life insurance.

There was a significant reduction in administrative expenses(other
operating expenses), which fell by 10.7 per cent to EUR90.1 million
(1-3/2014: EUR101.0 million). Despite the strong premium growth,
operating expenses for acquisition increased by only 8.1 per cent to
EUR251.5 million (1-3/2014: EUR232.6 million). Overall, operating
expenses less reinsurance commissions received grew by 3.0 per cent
year on year to EUR335.7 million (1-3/2014: EUR325.8 million).

The Group cost ratio improved from 21.8 per cent to 18.4 per cent as
a result of the extremely strong growth in premium income and the
further reduction of administrative expenses. However, the cost ratio
will increase again in the quarters ahead when premium growth levels
off as expected and planned.

The combined ratio in property and casualty insurance rose from 97.9
per cent to 98.8 per cent. This was primarily due to generally
increased costs with a higher number of small and medium-sized loss
events and the increase in reserves for extraordinary loss events
that was implemented as planned. By contrast, costs in property and
casualty insurance continued to decline.

Net investment income of the UNIQA Group rose by 55.1 per cent from
EUR152.9 million to EUR237.2 million in the first quarter of 2015.
This was largely attributable to net evaluation gains on the
investment portfolio and extraordinary income generated as part of
the planned reduction of the property portfolio. The aim here is to
optimise asset allocation across the strategic investment policy.

The investment portfolio of the UNIQA Group (including unit- and
index-linked life insurance investments) increased by EUR1,086.8
million as against the end of the previous year to EUR30,299.5
million as at 31 March 2015 (31 December 2014: EUR29,212.7 million).

The UNIQA Group's profit on ordinary activities (EBT)came to EUR94.0
million in the first three months, up 15.5 per cent on the previous
year's level (1-3/2014: EUR81.4 million).

Consolidated net profit (after taxes and minority interests)
increased by 37.5 per cent to EUR76.9 million (1-3/2014: EUR55.9
million) as a result of relatively low tax expenses. Earnings per
share amounted to EUR0.25 (1-3/2014: EUR0.18). The return on equity
after taxes and minority interests rose to 9.7 per cent in the first
quarter of 2015 (1-3/2014: 7.9 per cent).

Compared to the end of 2014, the UNIQA Group's total equity climbed
by 6.1 per cent to EUR3,292.1 million as at 31 March 2015 (31
December 2014: EUR3,102.4 million) due to increases in the market
values of fixed-income securities in particular. The solvency ratio
(Solvency I) rose to 302.2 per cent (31 December 2014: 295.4 per
cent) as a result of this development.

The average number of employees at the UNIQA Group decreased to
13,966 (1-3/ 2014: 14,656) due to restructuring measures. 5,604 of
these employees were employed in field sales and 8,362 in
administration.

Outlook: For 2015, the UNIQA Group has set itself the target of
increasing its profit on ordinary activities to between EUR425
million and EUR450 million. This assumes that the capital market
environment will be stable, that economic development will improve
moderately and that losses caused by natural disasters will remain
within a normal range.

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.

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