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Vienna – UNIQA Insurance Group AG has announced its preliminary group indicators for 2024, revealing a year of notable growth despite challenging conditions. The insurance giant reported a substantial increase in corresponded premiums, rising by 9.1 percent too reach 7.8 billion euros. This growth was mirrored in the company’s net group result, which surged by 14.9 percent to 348 million euros. The result before tax also saw a positive uptick, increasing by 3.6 percent to 442 million euros. These figures highlight UNIQA’s strong performance across its key markets and business segments, even in the face of adverse weather events.
Financial Highlights of 2024
The 2024 financial year proved fruitful for UNIQA, with significant gains across various key performance indicators. The group’s success was fueled by strong sales performance and strategic adjustments, contributing to overall growth in a competitive market. The company’s ability to navigate economic uncertainties and capitalize on opportunities has positioned it favorably for continued success.
A key driver of UNIQA’s success was the growth in premium income across all segments. Damage and accident insurance saw a notable 11 percent increase, while health insurance grew by 10 percent, and life insurance experienced a 3.3 percent rise. This diversified growth strategy has allowed UNIQA to strengthen its market position and enhance its resilience against market fluctuations.
Andreas Brandstetter, CEO of UNIQA Insurance Group AG, highlighted the company’s regional performance, stating:
in Austria we grew by 4.6 percent, strongly worn from damage and accident insurance as well as the health insurance. In Central and eastern Europe,the premiums have increased by 13.9 percent,primarily due to strong growth in the damage and accident insurance as well as in life insurance.
Andreas Brandstetter, CEO UNIQA Insurance Group AG
Brandstetter further noted that Poland, the largest market in Central and Eastern Europe, demonstrated remarkable growth, with a premium increase of almost 22 percent, solidifying its role as a significant growth engine for the group.
Impact of Storm “Boris” and Natural Disasters
Despite the overall positive performance, UNIQA faced challenges in 2024 due to severe weather events, especially the dramatic floods in September. These floods resulted in substantial payouts for storm damage, amounting to 222 million euros gross, or 85 million euros after reinsurance. The impact of these events was reflected in the combined ratio net,a crucial metric indicating the ratio of total insurance expenses to insurance income.
The combined ratio net in damage and accident insurance increased slightly to 93.1 percent, up from 92.8 percent in 2023. While this increase indicates the financial strain caused by the storm, the ratio remains at a healthy level, demonstrating UNIQA’s effective risk management and reinsurance strategies.
Segment Performance in Detail
UNIQA Insurance Group AG’s financial reporting adheres to the new initial standards IFRS 9 and IFRS 17, implemented in 2023. the group’s charged premiums, including savings components of fund and index-bound life insurance, saw a significant increase, rising by 9.1 percent to 7,839.7 million euros in 2024, compared to 7,185.7 million euros in 2023.
Insurance revenue, as per IFRS 17, also experienced substantial growth, increasing by 9.4 percent to 6,557.2 million euros in 2024, up from 5,994.1 million euros in 2023.All segments contributed to this growth, with damage and accident insurance rising by 10.4 percent, health insurance by 9.8 percent, and life insurance by 3.5 percent.
In Austria, insurance turnover increased by 5.7 percent to 3,720.0 million euros, while international operations saw a more significant rise of 13.4 percent, reaching 2,755.0 million euros.
The insurance expenses of the UNIQA Group increased by 11.5 percent to 5,900.4 million euros, while the insurance result remained relatively stable at 560.5 million euros. The investment result saw a notable increase due to excellent ongoing yield, rising to 749.7 million euros. Consequently, the financial result increased to 210.2 million euros.
Dividend Proposal and future Outlook
Reflecting the company’s strong performance, UNIQA has proposed a 5 percent increase in the dividend, suggesting a payout of 0.60 euros per share. This proposal underscores the company’s commitment to delivering value to its shareholders.
Looking ahead, UNIQA has outlined its strategic program “Uniqa 3.0- Growing Impact” for the years 2025 to 2028. The company aims for an average annual growth of 5 percent in offset premiums and a 6 percent increase in net results. The pay-out ratio is projected to remain within the range of 50 to 60 percent, with growing dividends per share.
UNIQA’s focus for the 2025 financial year remains on improving its core insurance businesses in austria and achieving profitable growth in Central and Eastern Europe. the company anticipates strong growth above GDP, driven by targeted sales activities and adjustments related to inflation and index developments.
Despite potential challenges from geopolitical and economic instability, and also increasing natural disasters, UNIQA aims to maintain its target profitability above the level of 2024. The company acknowledges the uncertainty associated with future business progress but remains optimistic about its ability to navigate these challenges and deliver strong results.
UNIQA Group: A Regional Leader
The UNIQA group stands as one of the leading insurance companies in its core markets of Austria and Central and Eastern Europe. With over 21,000 employees and exclusive sales partners, UNIQA serves approximately 17 million customers across 17 countries.In Austria,UNIQA holds a market share of around 21 percent,making it the second-largest insurance group in the country. The company’s extensive presence in the CEE growth region, spanning 14 markets, further solidifies its position as a key player in the European insurance landscape.
UNIQA’s Triumph: Decoding the Insurance Giant’s Remarkable Growth and Resilience
Did you know that despite economic headwinds and notable natural disasters, UNIQA Insurance Group experienced a double-digit surge in net profits? This interview delves into the strategic maneuvers and market insights that propelled UNIQA’s extraordinary performance, offering valuable lessons for businesses navigating a complex global landscape.
Interviewer: Dr. Anya Sharma, Senior Editor, world-today-news.com
Expert: Professor David Miller, Distinguished Professor of Global Finance and Insurance, University of Zurich.
Interviewer: Professor Miller, UNIQA’s 2024 results showcased impressive premium growth and a significant increase in net profit despite significant storm-related payouts.What were the key contributing factors to this success?
Professor Miller: UNIQA’s success story is a testament to a well-executed multi-pronged strategy. Diversified portfolio management played a crucial role. Their growth wasn’t concentrated in a single segment; instead, it spanned damage and accident insurance, health insurance, and life insurance. This diversification mitigated risks inherent in relying on a single product or market. Their expansion into Central and Eastern Europe, particularly their impressive performance in Poland, also significantly boosted overall results. This strategic expansion into high-growth markets presents significant opportunities for long-term growth in the insurance sector.Furthermore, effective risk management and robust reinsurance strategies helped them absorb the financial impact of extreme weather events like the devastating floods, limiting the overall damage to their profitability.
Interviewer: The article highlights the impact of Storm “Boris” and the resulting payouts. How did UNIQA effectively manage the financial strain caused by such significant natural disasters?
Professor Miller: The impact of catastrophic events, such as the extreme weather events exemplified by Storm “Boris,” requires careful planning and a thorough risk management approach. UNIQA demonstrates the value of proactive disaster planning. A critical aspect was their reinsurance strategy. By transferring a portion of the risk to reinsurers, thay significantly minimized their net exposure to such substantial payouts. This strategic risk mitigation effectively cushioned the financial blow of the storm, allowing the company to maintain financial stability. Moreover, their strong capital position enabled them to absorb these losses while maintaining their commitment to policyholders and ensuring the continued solvency of the company.It’s crucial for insurance companies to not only forecast the likelihood of catastrophes but also meticulously plan for appropriate financial and logistical responses.
interviewer: The company’s growth in Central and Eastern Europe, particularly in Poland, was remarkable. What market dynamics contributed to this success?
Professor Miller: The success of UNIQA in Central and Eastern Europe, especially in Poland, reflects several key factors.First is the region’s expanding insurance market. As these economies develop, there’s a growing demand for diverse insurance products. Second, UNIQA likely benefited from effective market penetration strategies, adapting products and services to the local needs and preferences of these markets. third, a strong local presence and established distribution networks are essential for success in these diverse markets. Understanding regional nuances and building trust wiht local communities are critical for growth within the Central and Eastern European insurance landscape.
Interviewer: UNIQA’s “uniqa 3.0 – growing Impact” strategic program projects significant growth for 2025-2028. What are the critical components of this ambitious plan, and what challenges might UNIQA face in achieving its objectives?
Professor Miller: “Uniqa 3.0” reflects a forward-looking approach to sustainable growth. Core components likely include continued expansion in their existing markets, further refinement of their product portfolio to cater to evolving customer demands across all sectors, and technological investments to boost operational efficiency and improve customer experience. Technological innovation within the insurance sector is paramount. The challenges ahead include navigating macroeconomic volatility affecting insurance markets. Geopolitical instability and inflation are significant looming issues, requiring agility and adaptability. Moreover,increasing competition and the need to constantly innovate to stay ahead of emerging competitors demand strategic planning across all areas of the business.
Interviewer: UNIQA’s dedication to shareholder value is evident in its proposed dividend increase. How does this strategy support the company’s overall long-term growth?
Professor Miller: the dividend increase not only demonstrates the company’s confidence in its financial performance but also strengthens its appeal to investors. Rewarding shareholders is a key component of attracting investment and retaining existing investors. This signals financial strength and long-term commitment, securing investment capital for future strategic endeavours. This helps sustain the company’s growth trajectory and enables further investments in growth initiatives such as expanding into new markets and adapting to market changes and trends.
Interviewer: In closing, what key takeaways can businesses learn from UNIQA’s success journey?
Professor Miller: UNIQA’s achievements provide several valuable lessons:
Diversification is key: Don’t put all your eggs in one basket.
Strategic expansion: Identify and exploit high-growth markets.
Robust risk management: invest in effective strategies to mitigate potential losses.
Strong financial position: Maintain a robust capital base to withstand market shocks.
Shareholder value: Prioritize shareholder returns while maintaining long-term growth.
Adaptability and innovation: Continuously adapt to changing market dynamics and remain committed to technological innovation.
The insurance industry needs to continuously evolve to meet the changes in the global climate.
What are your thoughts on UNIQA’s performance, and what other strategies do you believe are crucial for success in the insurance industry today? Share your insights in the comments below!