In its first financial year, the UNIQA Group registered a clear premium growth of 4.2% to ATS 31,505.6 million (EUR 2,289.6 Million) in 1999, in spite of difficult market conditions and whilst in the phase of complete adjustment and re-organisation.

The profit on ordinary activities, however, declined by 22.3% to ATS 827.0 million (EUR 60.1 million). The reasons for this are, amongst others, the development of the property and casualty insurance. This line is marked by falling premium levels with a simultaneous strong increase in benefit payments, especially in motor vehicle insurance.            

In addition, 1999 was strongly influenced by the extraordinary depreciation in the real estate sector resulting from the market development, which was caused by the depreciation in fixed interest securities conditioned by the increased interest levels, as well as special expenses for the introduction in the market. The stock exchange listed UNIQA Versicherungen AG will propose a dividend distribution of 16% at the shareholders meeting on 20 June 2000.

The restructuring of the Group was very successful. In Austria the Bundesländer-Versicherung and Austria-Collegialität were merged into a powerful and efficient Group. The Raiffeisen Versicherung, Austria‘s leading bank insurer, was restructured to a composite insurer for bank sales. The Salzburger Landes-Versicherung continues to operate as a local provider. The Collegialität covers the direct insurance business for the UNIQA Group.            

The UNIQA International Versicherungs-Holding manages the strategic expansion of the operations abroad. The foreign subsidiaries and holdings in foreign insurance companies are grouped here. Forcing growth abroad creates new scope for expansion and reduces the dependence on the home market through risk diversification. In 1999, these foreign subsidiaries and holdings in foreign insurance companies already accounted for 12.7 % of the Group’s profit on ordinary activities.

Premiums       
The consolidated gross premiums written increased by ATS 1,278 million or +4.2 % (EUR 92.9 million) to ATS 31,505.6 Million (EUR 2,289.6 million). 

The fully consolidated domestic insurance companies - UNIQA Versicherungen AG, UNIQA Sachversicherung AG, UNIQA Personenversicherung AG, Raiffeisen Versicherung AG, Salzburger Landes-Versicherung AG and Collegialität Versicherung AG – contributed 95.3 % of this with a premium volume of ATS 30,036.2 million (EUR 2,182.8 million).

The fully consolidated insurance companies outside Austria, included are Austria Assurances S.A. in Switzerland, Austria Assicurazioni S.p.A. in Italy, Cesko-Rakouska Pojistovna a.s. (CRP) in the Czech Republic and Otcina Poistovna a.s. in the Slovak Republic as well as Austrija Osiguranje in Croatia, increased their share of premium to the equivalent of 1,469.4 million (EUR 106.8 million) or 4.7% (1998: 4.4%).

Expenses        
The premium income compares to expenditure for claims of ATS 21,417.9 million (EUR 1,556.5 million). This is 4.2% or ATS 870.1 million (EUR 63.2 million) more than in 1998. The share of the domestic companies is 96,9 % or ATS 20,762.0 million (EUR 1,508.8 million) and the foreign companies have a share of 3.1 % or ATS 655.8 million (EUR 47.7 Million).             
The retained operating expenses were ATS 6,572.1 million (EUR 477.6 million). The domestic companies incurred 95.0 % or ATS 6,241.0 million (EUR 453.5 million) of the expenses, and ATS 331.1 million or 5.0 % (EUR 24.1 million) abroad.
The premium cost ratio for the UNIQA Group in 1999 was 22.8% (1998: 23,1%).

Investments
Investments were increased by ATS 123,555.8 million (EUR 8,979.2 million) or 6.0 % to ATS 130,943.5 million (EUR 9,516.0 million). Of that, ATS 129,271.9 million (EUR 9,394.6 million) or 98.72% applied to the domestic and ATS 1,671.6 million (EUR 121.4 million) to the foreign Group companies.            

The consolidated net financial investments earned in 1999 of ATS 7,865.6 million (EUR 571.6 million) are 0.5% above the previous year’s value of ATS 7,827.7 million (EUR 568.9 million).  
The hidden real estate reserves, which had to be reported for the first time in 1999, amounted to ATS 5,307.9 million (EUR 385.7 million).  

Results of the ordinary Business activities         
The UNIQA Group achieved a profit on ordinary business activities of ATS 827.0 million (EUR 60.1 million) in the 1999 financial year. This is a decrease of 22.3 % or ATS 237.3 million (EUR 17.3 million) compared to the previous year. ATS 722.2 million (EUR 52.5 million) or 87,3% of the Group’s profit on ordinary business activities applied to the consolidated domestic insurance companies and ATS 104.8 million (EUR 7.6 million) or 12.7 % to the foreign companies.

The reason for the decline in profit on ordinary business activities is the declining premium level and a strong increase in benefits paid in property and casualty insurance – especially in motor vehicle insurance -, the depreciation in the fixed interest securities sector conditioned by the strongly increased interest levels and the extraordinary depreciation in the real estate sector caused by the market development as well as special charges for the brand implementation

Employees     
The UNIQA group employed on average 6,361 employees in 1999. Of those, 5,420 were employed domestically and 941 abroad.              
In the Whole Group, 3,200 employees worked in the sales force and 3,161 in administration.