Through acquisition of the company formerly known as AXA in Austria, Hungary and Liechtenstein and vigorous organic growth, the UNIQA group experienced a definite growth spurt in 2003, thus strengthening the group’s leading position on the Austrian market and giving its international operations in Central and Eastern Europe a massive boost.

• The provisionally earned premium of the UNIQA group’s home and international operations amounts to a total of € 3 265.2 million or 22.1% over the previous year’s figure. Around € 440 million of the absolute premium growth of € 590.3 million results from the takeover of the former AXA in Austria, Hungary and Liechtenstein. According to the consolidation guidelines for these companies, only the values for the second half-year are contained in the UNIQA group’s IAS-financial statement for 2003.
• UNIQA’s profit on ordinary activities (UNIQA has been drawing up its balance sheet according to IAS since 1999) is going to be almost double what it was in 2002 (€ 35,3 million), i.e. well over € 60 million, according to preliminary data.
• The management board intends to propose a 25% increase in the dividends to 20 cents per share to the board of directors and to the shareholders’ meeting respectively.
• It was possible to reduce the cost ratio (excluding commission) by 0.2% from 14.9% in 2002 to 14.7%, although the integration of the AXA operations taken over in Austria, Hungary and Liechtenstein and the market reorganisation in Poland and Hungary in 2003 resulted in substantial one-off costs.
• The capital investments of all the companies amounted to € 13 282.6 million. Compared with the value the previous year (incl. the former AXA operations), this represents an increase of 3.3%, although a marked liquidity outflow occurred in the fourth quarter owing to an increase in life insurance policy maturity.
  Securities produced a profit of 6.2%, which meant that the benchmark on which they were based was definitely exceeded.

Austria
The UNIQA group operations earned € 2 792.5 million within Austria in 2003, which meant 17.4% more premiums than in 2002. Benefits of € 2 079.6 million represented an increase of 10.5%, which was markedly lower than the premiums.

The most conspicuous growth turned out to be in damage and accident insurance, in which earned premiums were raised by 33.8% to € 1 012.3 million. Growth in the automobile area and in the other property insurance classes took place at the same time in a very similar way. Insurance benefits rose by 19.3% (to € 666.9 million), which was less than the increase in premiums.

€ 1 131.4 million in premiums was earned in life insurance, which was an increase of 13.1%. With around 52 000 policies, premiums of € 51.3 million and an average premium of € 996 per policy, which was markedly above the market average, the great expectations in the UNIQA group’s  “state-assisted pension plan” area were even exceeded.

As a result of a large number of expiries, insurance benefits in life insurance rose by 11.1% to € 871 million.

Despite a market share of about 50%, the UNIQA group succeeded in growing more than the rest of the market in health insurance, where there was an increase in premiums of 4.2% to € 648.8 million.

Insurance benefits rose by 0.5% to € 541.8 million.

International
The UNIQA group also markedly increased the premium volume outside Austria to a value of € 472.8 which is 60% above that of the previous year. Insurance benefits from international operations rose by 40.1% to € 322.4 million.

Cooperation in the sales of insurance products was started most successfully with the Raiffeisen Banks in Slovakia and Croatia. It is going to be intensified this year in Hungary and Poland – two very large and important markets for both partners.

Additional financial scope for further expansion into the CEE countries is resulting for UNIQA through the commitment of the EBRD (European Bank for Reconstruction and Development). In a framework agreement signed in 2003, UNIQA received the largest investment commitment (up to € 70 million) granted by EBRD so far to an insurance company for the expansion of its Eastern European activities.

The legal steps for taking over both the R+V companies in Poland and Slovakia will presumably have been concluded by the middle of this year thus reinforcing UNIQA´s significance in these markets. Preparations for the integration of the two companies into the UNIQA group are running according to plan.

Tax reform
Measures intended to improve the taxation treatment of actuarial reserves, the reduction of corporate tax and accompanying measures for the taxation of holdings are going to contribute – as a first step – to the improvement of the location situation in Austria.

Mannheimer
In December 2003 UNIQA announced a capitalisation and reorganisation concept for the German Mannheimer AG Holding. According to this concept, UNIQA is to supply the Mannheimer AG Holding with fresh equity to the value of € 79.5 and to raise the fraction of nominal capital currently standing at 20% to just over 87%.