EANS-News: UNIQA Insurance Group AG / Earnings growth and higher premiums in first half of 2015

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6-month report

UNIQA records earnings growth and higher premiums in first half of
2015

· EBT of EUR 190.8 million (+5.2 per cent)
· Consolidated net profit rises by 27.3 per cent to EUR 156.3 million
· Premiums written (including savings portion) up 13.5 per cent to
EUR 3,552.2 million
· Combined ratio improves to 97.1 per cent (1-6/2014: 98.4 per cent)
· Group cost ratio reduced to 20.6 per cent (1-6/2014: 22.3 per cent)

In the first half of 2015, UNIQA Insurance Group AG (UNIQA Group)
generated a profit on ordinary activities (EBT) of EUR 190.8 million
(+5.2 per cent; 1-6/ 2014: EUR 181.4 million). Consolidated net
profit (after taxes and minority interests) amounted to EUR 156.3
million (+27.3 per cent; 1-6/2014: EUR 122.8 million).

UNIQA CEO Andreas Brandstetter: "Our strong earnings performance in
the first half of the year was due particularly to the improvement in
the combined ratio for property and casualty insurance on the back of
lower losses and the solid earnings contribution from health
insurance, supplemented by a higher investment result and extremely
positive premium development. However, this will not continue in the
same vein in the coming quarters, as the growth in single premiums in
life insurance is being severely constricted by the current low
interest rate environment. Despite the challenge posed by
historically low interest rates, we are keeping to our ambitious
outlook for earnings in 2015."

Key Group figures 1-6/2015

Premiums written by the UNIQA Group - including the savings portion
of unit- and index-linked life insurance - rose by 13.5 per cent to
EUR 3,552.2 million in the first half of 2015 (1-6/2014: EUR 3,130.3
million). This increase is primarily attributable to extremely strong
growth in single premium business in life insurance - particularly in
bank-based sales in Italy - and good development in the area of
health insurance. While recurring premiums rose by 0.4 per cent
across all business areas, single premiums in life insurance climbed
by 91.8 per cent. Premiums written in life insurance were up 32.3 per
cent at EUR 1,619.8 million (1-6/2014: EUR 1,224.2 million), while
premium income in health insurance increased by 4.1 per cent to EUR
505.4 million (1- 6/2014: EUR 485.3 million). Premiums in property
and casualty insurance rose only slightly to EUR 1,427.0 million
(+0.4 per cent; 1-6/2014: EUR 1,420.9 million) as a result of
restraint in the highly competitive vehicle business in CEE.

Retained premiums earned (in accordance with IFRS, not including the
savings portion of unit- and index-linked life insurance) increased
by 16.5 per cent to EUR 3,081.0 million (1-6/2014: EUR 2,643.8
million).

The UNIQA Group's retained insurance benefits increased by 19.3 per
cent to EUR 2,555.2 million in the first half of 2015 (1-6/2014: EUR
2,142.0 million) as a result of the substantial increase in premiums
in life insurance.

Total operating expenses less reinsurance commissions increased by
5.5 per cent to EUR 685.2 million compared with the same period of
the previous year (1-6/ 2014: EUR 649.4 million). Despite the strong
premium growth, operating expenses for acquisition only rose by 6.8
per cent to EUR 490.1 million in the first half of the year
(1-6/2014: EUR 458.9 million). Other operating expenses
(administrative expenses) increased by 2.5 per cent to EUR 195.2
million in the first half of 2015 (1-6/2014: EUR 190.5 million).

The Group cost ratio (after reinsurance) improved from 22.3 per cent
to 20.6 per cent. In 2012, the first full financial year after the
UNIQA 2.0 strategy programme was launched, the cost ratio was still
25.0 per cent. However, the cost ratio will increase again in the
second half of the year when premium growth levels off as planned and
expected.

The combined ratio (after reinsurance) improved by 1.3 percentage
points to 97.1 per cent as a result of the lower level of losses
(1-6/2014: 98.4 per cent); in 2012, the combined ratio was still
101.3 per cent.

Net investment income rose by 9.1 per cent to EUR 405.3 million in
the first half of 2015 (1-6/2014: EUR 371.6 million). In addition to
the positive development of ordinary income, this was due to
extraordinary income from the reduction of the property portfolio in
line with the investment strategy as part of the continued
optimisation of asset/liability allocation.

As of 30 June 2015, the investment portfolio of the UNIQA Group
(including unit- and index-linked life insurance investments)
declined slightly to EUR 29,122.6 million compared with the end of
the previous year (31 December 2014: EUR 29,212.7 million).

The UNIQA Group's profit from ordinary activities amounted to EUR
190.8 million, up 5.2 per cent on the same period of the previous
year (1-6/2014: EUR 181.4 million).

Consolidated net profit (after taxes and minority interests)
increased by 27.3 per cent to EUR 156.3 million (1-6/2014: EUR 122.8
million). Earnings per share amounted to EUR 0.51 (1-6/2014: EUR
0.40). The UNIQA Group's return on equity rose to 10.4 per cent as a
result of the improvement in earnings (1-6/ 2014: 8.6 per cent).

UNIQA Group's equity fell by 4.6 per cent to EUR 2,939.1 million in
the first six months of 2015 (31 December: EUR 3,082.2 million) due
to the decline in the market values of fixed-income securities in
particular. The solvency ratio (Solvency I) remained extremely strong
in the first half of 2015 at 287.2 per cent (31 December 2014: 295.4
per cent).

The number of employees at the UNIQA Group fell to 14,167 (1-6/2014:
14,620).

Outlook For 2015, the UNIQA Group has set itself the target of
increasing its profit on ordinary activities to between EUR 425
million and EUR 450 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
referring to the future development of the UNIQA Group. 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