UNIQA Insurance Group (UQA) Q3 2024 earnings summary

Executive summary

• Insurance revenue rose 10% to €4,888m and gross written premiums increased 9.2% to €6.0 billion year-over-year, with all business lines and both Austria and CEE contributing.

• Earnings before taxes increased 1.4% to €340.3 million, and profit after taxes and minorities reached €264 million, up 6.4% year-over-year, despite severe flood-related claims.

• Net investment income surged 40% to €619m, supported by higher current income and favorable equity markets.

• Major natural catastrophe (storm/flood “Boris”) caused €230 million gross damages and €86–82 million net impact, the largest such event in company history, but was largely offset by reinsurance and strong performance in other lines.

• Strategic exit from Albania, North Macedonia, and Kosovo to focus on core and profitable CEE markets, with sale expected to close in 2025.

Financial highlights

• Insurance revenue under IFRS 17 increased 10.3% to €4,888.3 million year-over-year.

• Net investment income improved by around €170 million year-over-year; average net new investment yield slightly decreased to 4.4%.

• Combined ratio in P&C increased to 93.3% due to Boris, with the storm alone adding 5.6 percentage points.

• Financial result reached €182 million, supported by stable asset allocation and positive market developments.

• Solvency capital requirement (SCR) ratio remained high at 170–262% as of 30 September 2024.

Outlook and guidance

• Profitability for full-year 2024 targeted in line with 2023, with continued positive outlook for 2025 and beyond.

• Ongoing cost discipline and optimization are crucial due to inflation and rising insurance service expenses.

• No significant impact anticipated from reinsurance renewals or weather-related claims for 2025; further details to be provided at the December Capital Markets Day.

• Dividend payout ratio remains up to 60%, with aim for annually increasing dividends.

• Anticipate the full winding up of Boris-related losses by end of 2025, with no expected impact on 2025 results.