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Uniqa Insurance Group's H1 profit drops YOY

Uniqa Insurance Group AG reported that first-half net profit attributable to the shareholders of the company decreased 5.9% to €105.6 million from €112.3 million a year ago.

EPS amounted to 34 cents, versus 37 cents in the first half of 2018. The group's technical result declined in the first half, primarily a result of a 51.3% year over year rise in costs to €26.7 million from €54.9 million. Operating earnings decreased only slightly due to a higher investment result, falling to €164.1 million from €171.7 million.

Operating expenses rose to €449.0 million from €422.2 million, owing in part to increased write-downs of capitalized acquisition costs in life insurance. Other operating expenses climbed year over year to €247.8 million from €220.4 million due to higher investments and additional resources and staff requirements for strategic projects. This includes costs in connection with the innovation and investment program amounting to roughly €27 million, compared to about €12 million a year earlier.

Investment income rose to €301.0 million from €288.7 million.

Total premiums written ticked up slightly to €2.81 billion from €2.80 billion, while retained premiums earned increased to €2.43 billion from €2.39 billion.

For 2019, UNIQA is expecting growth in property and casualty premiums of approximately 2% and a rise in health insurance premiums of about 3%. In view of low interest rates and the subdued demand for long-term pension products, the company projects a continuing decline in life insurance premiums.

UNIQA expects lower investment income in 2019 due to the nonrecurring effect from the sale of Casinos Austria Aktiengesellschaft in 2018. The company is still intending to increase the annual distribution per share again in the coming year as part of a "progressive" dividend policy.