The rating agency Standard & Poor’s confirmed the existing “A” rating for the UNIQA Group today, 28 May 2010.

In doing so, S&P emphasised the strong competitive position of the UNIQA Group and its continued high degree of financial flexibility thanks to the core shareholders.

In terms of the strong competitive situation, the partnership with Raiffeisen in the area of the “bancassurance” was particularly emphasised as a differentiating strength. S&P also acknowledged the successful expansion of UNIQA within Eastern Europe and within other European countries, in addition to its position as one of the market leaders in Austria. The rating agency also expected that UNIQA would defend its good market position in Austria and that the growth in Eastern Europe would be able to be continued.

S&P continues, as before, to consider the structural economic conditions and the situation on the capital markets as a challenge for UNIQA and thus assessed the outlook as negative due to this and due to the volatile results of recent years caused by the financial crisis. S&P holds out the prospect of raising the outlook to stable if UNIQA continues to make significant progress and can return the earnings capacity to the level it was at prior to the financial crisis.

This assessment was not taken into consideration for the quarterly figures of the UNIQA Group which were also published today. In comparison to the same quarter last year, the UNIQA Group increased the premium volume by 8% and the profits by almost 39% in the first three months of this year.

• Continued dynamic growth of 8% in Group premiums according to IFRS
• Disproportional growth in international business with a premium increase of almost 18% in Eastern and Western Europe
• Profit increased by almost 39% to €43 million
• European embedded value for 2009 increased by 23%

UNIQA CEO Dr. Konstantin Klien: “An increase of 8.0% in IFRS premiums written is a clear sign of the continued growth course of the UNIQA Group, even during tense economic times, and a confirmation of the long-term strategy of balanced regional diversification. In light of the disproportional growth of our group outside of Austria, 40.3% of the premiums already came from international business during the first quarter of 2010. This area received a strong boost in the first three months from above-average growth in life insurance in Western Europe and renewed two-digit gains in property and casualty as well as health insurance in Eastern and South Eastern Europe. In our core market of Austria, however, our premium growth of 2.2% represented a higher increase than the market forecast of plus 0.8% for 2010. I view the fact that we continue to gain market share across broad segments of our international business as the result of a quality-oriented product and service policy that relies on product innovations and positioning ourselves even closer to our customers, even in difficult times. We were able to improve our profit by 38.7% to €43 million. After taxes, the profit for the period was €27 million, up 40% from the first quarter of 2009. The positive development of the UNIQA Group is also confirmed by the increase in the European embedded value by 23% in 2009 to reach €2,985 million.

Despite the continued uncertainty surrounding the economic situation, the UNIQA Group succeeded in the first quarter of 2010 in increasing its IFRS premiums written (excluding the savings portion of unit- and index-linked life insurance) by 8.0% to €1,593 million. The premiums earned according to IFRS even increased by 9.6% to €1,330 million.

In the home market of Austria, it was possible to increase the IFRS premiums written by 2.2% to €950 million. The strongest growth was seen here in property and casualty insurance with a premium increase of 3.4% to €476 million.

In international business, the companies of the UNIQA Group were able to increase the IFRS premiums 17.8% to €643 million, bringing the level of internationalisation to over 40% for the first time in the first quarter of 2010. The premium revenue in Western Europe grew disproportionately well at +31.0%. This exceptional increase was driven in part by a more than doubling of life insurance premiums in Italy as part of the intensified cooperation with Veneto Banca. In the regions of Eastern and Southern Europe, which have been hit hard by the financial and economic crisis, UNIQA succeeded in raising the IFRS premiums written by 5.5%, which brought with it improved market shares in many areas. Two-digit growth rates were achieved here in the Czech Republic, Hungary, Ukraine, Serbia and Montenegro.

In the segment of property and casualty insurance, the Group premiums reached €835 million, which represents an impressive growth of 4.9% compared to the same period of the previous year. The companies of the UNIQA Group achieved considerable gains here in general business with innovative products, particularly in the areas of motor vehicle insurance as well as renter and homeowner insurance, and were able to improve premium revenues in the area of industry and special business thanks to the high level of competence in serving large, internationally active customers. In Austria, the premium volume reached €476 million – a growth of 3.4% –  and the volume in international business grew to €359 million (+6.9%). The growth in Eastern and South Eastern Europe remained in the two-digit range at 10.4%. The level of internationalisation in property and casualty insurance on the basis of IFRS premiums written rose to 43.0%.

In life insurance, the IFRS premiums written during the first quarter were at €497 million, or 14.7% above the same period of the previous year. In Austria, it was possible to compensate for the period-related declines in single premium business with an increase in recurring premiums to keep the premium volume stable at €270 million. In the international area, premiums were boosted 39.0% by exceptional growth rates in Italy to reach €227 million. In Eastern Europe, the generally cautious savings behaviour prompted by the economic and financial crisis had a dampening effect on the developments in life insurance. Nevertheless, UNIQA succeeded in increasing the premiums (including the savings portion) by 2.9% (excluding the savings portion: -5.0%). The international share of life insurance premiums written according to IFRS reached 45.7%.

After the first three months of this year, the premiums written in health insurance amounted to €260 million, which is 6.0% above the comparison value from last year. In Austria, the premium volume increased by 2.4% to €204 million, while the international business saw an increase of 21.7% to €56 million. Although based on a low initial volume, the growth in this segment remains very high at over 30% in Eastern Europe.  In total, 21.5% of the health insurance premiums of the UNIQA Group come from the regions outside of Austria.

The investment portfolio as at 31 March 2010 was at €23,690 million, which is 10.9% above the comparison value of the previous year and 4.5% above the value on 31 December 2009. The net investment income increased compared to the same period of the previous year by 70.6% to reach €250 million.

The total insurance benefits grew by 19.7% to €1,190 million, driven in particular by the increased allocation for latent profit participation due to the rise in capital returns.

At 7.1%, the increase in operating expenses was still below the increase in IFRS premiums written despite further investments in sales expansion and brand awareness.

Thanks to the business developments, the profit before taxes increased by 38.7% to €43 million. After taxes, the remaining net profit for the period was €27 million, roughly 40% higher than in the first quarter of 2009.

Outlook
The data available so far indicate that the growth dynamics of the UNIQA group have accelerated still further – the increases in the preliminary figures for premiums written after four months exceed the growth rates of the first three months both in Austria and internationally.

With respect to the annual profit, UNIQA considers an increase to roughly €120 million to be a possibility, even if the weather losses in recent days cannot yet be fully assessed. This assumes that there are no negative surprises on the capital markets that affect the income statement or natural catastrophes comparable to the previous year and that the predictions of a slight economic recovery hold true.

European embedded value increased by 23% to €2,985 million
The European embedded value (EEV) of the UNIQA Group was increased in 2009 by 20% to €2,358 million – a clear indication of the long-term orientation of the life and health insurance business within the Group. Before deducting minority shares, the EEV for 2009 was €2,985 million (+23%). Both the good development of the core operational business as well as the positive interest rate changes were responsible for this increase.

In consideration of the dividend payments, the profitability of the European embedded value of the UNIQA Group reached 22.3% in 2009. This value is significantly above that of the “pre-crisis years” of 2006 (17.3%) and 2007 (17.7%).

The European embedded value, which is calculated based on international guidelines, represents the value of the insurance policy portfolio and is composed of the net assets for life, health and property/casualty insurance as well as the current value of future income from the existing life and health insurance portfolio. This calculation took into account the life and health insurance business of the UNIQA Group in Austria, Italy, Slovakia, Hungary, Poland and the Czech Republic.
The European embedded value of the UNIQA Group was fully confirmed by B & W Deloitte GmbH, Cologne.

Reservations concerning statements about the future
This message contains statements that refer to future developments in the UNIQA Group Austria. These statements are appraisals that are made based on all information available to us at the current point in time. If the assumptions on which they are based do not occur, the actual events may vary from the results currently expected. For this reason, we cannot accept liability for these statements.

• Continued dynamic growth of 8% in Group premiums according to IFRS
• Disproportional growth in international business with a premium increase of almost 18% in Eastern and Western Europe
• Profit increased by almost 39% to €43 million
• European embedded value for 2009 increased by 23%

Despite the continued uncertainty surrounding the economic situation, the UNIQA Group succeeded in the first quarter of 2010 in increasing its IFRS premiums written (excluding the savings portion of unit- and index-linked life insurance) by 8.0% to €1,593 million. The premiums earned according to IFRS even increased by 9.6% to €1,330 million.

In the home market of Austria, it was possible to increase the IFRS premiums written by 2.2% to €950 million.  In international business, the UNIQA Group succeeded in increasing the IFRS premiums by 17.8% to €643 million. The premium revenue in Western Europe grew disproportionately well at +31.0%. In the regions of Eastern and Southern Europe, which have been hit hard by the financial and economic crisis, UNIQA succeeded in raising the IFRS premiums written by 5.5%, which brought with it improved market shares in many areas.

In the segment of property and casualty insurance, the Group premiums reached €835 million, which represents an impressive growth of 4.9% compared to the same period of the previous year. In Austria, the premium volume reached €476 million – a growth of 3.4% – and the volume in international business grew to €359 million (+6.9%). The growth in Eastern and South Eastern Europe remained in the two-digit range at 10.4%.

In life insurance, the IFRS premiums written during the first quarter were at €497 million, or 14.7% above the same period of the previous year. In Austria, it was possible to compensate for the period-related declines in single premium business with an increase in recurring premiums to keep the premium volume stable at €270 million. In the international area, premiums were boosted 39.0% by exceptional growth rates in Italy to reach €227 million. In Eastern Europe, the generally cautious savings behaviour prompted by the economic and financial crisis had a dampening effect on the developments in life insurance. Nevertheless, UNIQA succeeded in increasing the premiums (including the savings portion) by 2.9% (excluding the savings portion: -5.0%).

After the first three months of this year, the premiums written in health insurance amounted to €260 million, which is 6.0% above the comparison value from last year. In Austria, the premium volume was increased by 2.4% to €204 million, while growth in international business was 21.7% to reach €56 million.

The investment portfolio as at 31 March 2010 was €23,690 million, which is 10.9% above the comparison value of the previous year and 4.5% above the value on 31 December 2009. The net investment income increased compared to the same period of the previous year by 70.6% to reach €250 million.

The total insurance benefits grew by 19.7% to €1,190 million, driven in particular by the increased allocation for latent profit participation due to the rise in capital returns.

The Group succeeded at keeping the growth in operating expenses of 7.1% below the increase in IFRS premiums written.

Thanks to the business developments, the profit before taxes increased by 38.7% to €43 million. After taxes, the remaining net profit for the period was €27 million, roughly 40% higher than in the first quarter of 2009.

Outlook
The data available so far indicate that the growth dynamics of the UNIQA group have accelerated still further – the increases in the preliminary figures for premiums written after four months exceed the growth rates of the first three months both in Austria and internationally.

With respect to the annual profit, UNIQA considers an increase roughly €120 million to be a possibility, even if the weather losses in recent days cannot yet be fully assessed. This assumes that there are no negative surprises on the capital markets that affect the income statement or natural catastrophes comparable to the previous year and that the predictions of a slight economic recovery hold true.

European embedded value increased by 23% to €2,985 million
The European embedded value (EEV) of the UNIQA Group was increased in 2009 by 20% to €2,358 million. Before deducting minority shares, the EEV for 2009 was €2,985 million (+23%). Both the good development of the core operational business as well as the positive interest rate changes were responsible for this increase.

In consideration of the dividend payments, the profitability of the European embedded value of the UNIQA Group reached 22.3% in 2009. This value is significantly above that of the “pre-crisis years” of 2006 (17.3%) and 2007 (17.7%).

Reservations concerning statements about the future
This message contains statements that refer to future developments in the UNIQA Group Austria. These statements are appraisals that are made based on all information available to us at the current point in time. If the assumptions on which they are based do not occur, the actual events may vary from the results currently expected. For this reason, we cannot accept liability for these statements.