EANS-News: UNIQA Insurance Group AG / UNIQA remains on track in Q1 2014

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quarterly report

UNIQA remains on track in Q1 2014

· Premiums written up 2.3 per cent

· Retained premiums earned (not including savings portions) rise by
6.6 per cent

· Further improvement in Group cost ratio and combined ratio,
significant increase in earnings in core insurance business

· EBT up 20.2 per cent on a like-for-like basis (not including non-
recurring effects from the hotel sale in 2013)

· Continued strong Solvency I ratio of 287 per cent

In the first quarter of 2014, the UNIQA Insurance Group AG (UNIQA
Group) generated a profit on ordinary activities (EBT) of EUR 81.4
million. On a like- for-like basis (not including the non-recurring
effect from the sale of the hotel group in the first quarter of 2013
in the amount of EUR 49.1 million), EBT was up 20.2 per cent. If this
non-recurring effect in the first quarter of 2013 is included, EBT in
the first three months of 2014 was 30.3 per cent lower than the
previous year's figure (1-3/2013: EUR 116.8 million).

The UNIQA Group increased its premiums written - including the
savings portion of unit- and index-linked life insurance - by 2.3 per
cent to EUR 1,702.6 million (1-3/2013: EUR 1,664.0 million). Retained
premiums earned (in accordance with IFRS, not including savings
portions) climbed by 6.6 per cent to EUR 1,370.9 million (1-3/2013:
EUR 1,286.5 million).

UNIQA CEO Andreas Brandstetter comments: "Since 2011 we have made
sustainable progress in many areas through the gradual implementation
of our UNIQA 2.0 long- term strategy programme. We improved once
again in the first quarter of 2014, particularly in core insurance
business. We generated moderate growth in premiums in a challenging
environment, while further reducing the cost ratio and the combined
ratio. As a result, EBT increased again this quarter on a like-for-
like basis, despite the decline in net investment income in a
low-interest environment. All in all, we came another step closer to
achieving our long-term goals this quarter. We will keep to our path
and continue to work systematically."

Key Group figures

Premiums written by the UNIQA Group - including the savings portion
of unit- and index-linked life insurance - rose by a moderate 2.3 per
cent to EUR 1,702.6 million in the first quarter of 2014 (1-3/2013:
EUR 1,664.0 million). Premium growth was curbed primarily by a
significant decrease in premiums in unit-linked life insurance. This
development was also triggered by effects in connection with the
resolution to completely withdraw from the German market and not to
conclude any new business, which was adopted back in 2011.

Retained premiums earned (in accordance with IFRS, not including the
savings portion of unit- and index-linked life insurance) increased
significantly by 6.6 per cent to EUR 1,370.9 million (1-3/2013: EUR
1,286.5 million).

Retained insurance benefits of the UNIQA Group climbed by 4.9 per
cent to EUR 1,098.9 million in the first quarter of 2014 (1-3/2013:
EUR 1,047.3 million). The increase in benefits is thus 1.7 percentage
points lower than the increase in premiums earned.

Operating expenses less reinsurance commissions received decreased by
1.6 per cent to EUR 316.4 million (1-3/2013: EUR 321.5 million).
There was a significant reduction in administrative expenses, which
fell by 14.7 per cent or EUR 15.8 million to EUR 91.6 million
(1-3/2013: EUR 107.4 million). Expenses for generating business
increased in step with the growth in retained premiums earned, rising
by 5.0 per cent to EUR 224.8 million (1-3/2013: EUR 214.1 million).

The Group cost ratio after reinsurance improved by 1.1 percentage
points to 21.2 per cent (1-3/2013: 22.3 per cent), chiefly due to the
reduced administrative expenses. 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.

The combined ratio improved by 0.5 percentage points to 97.8 per cent
(1-3/2013: 98.3 per cent). In 2012, the combined ratio was 101.3 per
cent.

The underwriting result of the UNIQA Group rose significantly by
146.3 per cent to EUR 65.6 million in the first quarter of 2014
(1-3/2013: EUR 26.6 million). This increase was attributable to the
lower growth in benefits in comparison to premium growth as well as
to the reduced costs.

Net investment incomeof the UNIQA Group fell by 36.5 per cent to EUR
143.6 million in the first quarter of 2014 (1-3/2013: EUR 226.0
million). However, the comparative figure for the previous year
included the book profit on the disposal of the Austria Hotels
International Group, which amounted to EUR 49.1 million. On a
like-for-like basis (not including the non-recurring effect from the
sale of the hotel group), net investment income decreased by 18.8 per
cent. This development firstly results from the fact that the first
quarter of 2013 was influenced by higher positive exchange rate
effects than the first quarter of 2014, and secondly from the effect
of the continuing low interest rates on new investment.

The investment portfolio of the UNIQA Group (including unit- and
index-linked life insurance investments) increased by EUR 881.1
million as against the end of the previous year to EUR 28,264.7
million as at 31 March 2014 (31 December 2013: EUR 27,383.6 million).

The UNIQA Group's profit on ordinary activities amounted to EUR 81.4
million in the first quarter of the current year. On a like-for-like
basis (not including the non-recurring effect from the sale of the
hotel group in the first quarter of 2013 in the amount of EUR 49.1
million), this corresponds to an increase of 20.2 per cent. If this
non-recurring effect in the first quarter of 2013 is included, EBT in
the first three months of 2014 was 30.3 per cent lower than the
previous year's figure (1-3/2013: EUR 116.8 million). The net profit
for the period amounted to EUR 57.7 million (1-3/2013: EUR 77.5
million), while the consolidated profit (after taxes and minority
interests) fell by 26.4 per cent to EUR 55.9 million (1-3/2013: EUR
76.0 million). In both cases, the decline is attributable to the
non-recurring effect from the sale of the hotel group in the first
quarter of 2013.

In the first three months of 2014, the UNIQA Group's total equity
increased by 6.0 per cent to EUR 2,957.0 million (31 December 2013:
EUR 2,789.9 million).

The solvency ratio (Solvency I) remained virtually unchanged in the
first quarter of 2014 as against the end of the previous year at a
very strong level of 286.6 per cent (31 December 2013: 287.1 per
cent).

Outlook The UNIQA Group has set itself the target of significantly
increasing its profit on ordinary activities again in 2014 in
comparison to 2013. This assumes that the capital market environment
will be stable, that economic development will continue to improve
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.

UNIQA 2.0 UNIQA 2.0 is a long-term strategy programme that the
company has been implementing since May 2011. UNIQA has set itself
the target of increasing its customer base to 15 million by 2020 and
improving its EBT by up to EUR 350 million between 2012 and 2015. In
doing this, the company is focusing on its core business as a primary
insurer in its core markets of Austria and Central and Eastern Europe
(CEE). The business model is geared towards profitable growth and
long-term value added in these markets. UNIQA intends to boost
profitability at UNIQA Austria, increase productivity at Raiffeisen
Versicherung in Austria and leverage the growth potential in the CEE
region and is implementing a systematic risk/return approach.

UNIQA The UNIQA Group is one of the leading insurance groups in its
core markets of Austria and Central and Eastern Europe (CEE). 22,000
employees and exclusive sales partners serve around 9.3 million
customers in 19 countries. UNIQA is the second-largest insurance
group in Austria with a market share of around 22 per cent. UNIQA
operates in 15 markets in the CEE growth region: Albania, Bosnia and
Herzegovina, Bulgaria, Croatia, the Czech Republic, Hungary, Kosovo,
Macedonia, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, and
Ukraine. The UNIQA Group also includes insurance companies in Italy,
Switzerland and Liechtenstein.

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