UNIQA Insurance Group (UQA) H1 2024 earnings summary

Executive summary

• Earnings before taxes rose 19% to €277.5m in H1 2024, driven by strong premium growth and investment income across all business lines and regions.

• Insurance revenue increased 10.4% to €3,211.6m; gross written premium up 8.8% to €4,071.3m.

• Net investment income surged 41% to €438m, supported by higher interest rates and favorable equity markets.

• Combined ratio improved to 87.3% from 87.7%, reflecting strong underwriting and low claims from major losses.

• Favorable claims development and stable customer base across all regions and business lines.

Financial highlights

• Profit for the period rose 25.7% to €223.9m; earnings per share increased to €0.72; book value per share up 38% to €8.79.

• Return on equity at 16.3%, down 2.2pp year-over-year; solvency ratio at 266%, well above target.

• Group cost ratio slightly improved to 31.3%; new investment yield at 4.3%.

• Equity position decreased by 2.2% due to OCI interest rate effects; net OCI decreased by €253m.

• Dividend of €0.57 per share paid in June 2024.

Outlook and guidance

• Profitability for 2024 targeted in line with FY23 result, with payout ratio up to 60% and solvency ratio at least 170%.

• Cautious outlook for H2 2024 due to ongoing Nat Cat season, inflation, and geopolitical risks.

• Strategic update to be announced after 9M24 results at Capital Markets Day in late autumn.

• Cost ratio expected to continue decreasing as a strategic target, with IT and digitalization investments ongoing.

• No major impact on combined ratio anticipated for Q3 or Q4 from recent weather events.