UNIQA plans to exploit the opportunities offered in European markets by increasing internationalisation of its core business. With a push to foreign involvement, the new Chairman, Dr. Konstantin Klien, sees an opportunity for gaining new space for expansion, and by regional spreading of risk reducing dependence on the difficult home market.

The total insurance market in Central and Eastern Europe currently has a premium volume of about EUR 15 billion. For comparison, the German market alone is six times larger (c. EUR 110 billion). Experts think this difference will become much smaller because of stronger market growth in Central and Eastern Europe.  Accordingly, in the area of life assurance there could be an increase in premium volume of between 10 and 15% and in non-life business between 6 and 8%. “We want to profit from this trend and are well prepared with our life and sickness insurance products in the area of the prospering sector of health care and provision for the aged”, comments Dr. Klien.

Currently UNIQA is active not only in its home market, Austria, but also in the Czech Republic, Slovakia, Croatia, Poland, Italy, Switzerland, Spain and Liechtenstein. Hungary and Slovenia are strategic targets for UNIQA, where majority holdings and the setting up of new companies are both being considered. “In both markets there is enormous growth potential in certain market sectors. But we are not rushing to get involved in either country, but following up the premises of a positive result in Central and Eastern Europe”, explained Dr. Klien.

By 2005, foreign business should increase to 15% of the Group’s premium income, and, depending on the point in time when operations in a particular country start, a sustained ROE of 15% should be achieved. The preconditions for this will be met by consolidating administration and keeping it lean by using central services (EDP and e-commerce services, accounting, product development). “Corresponding to our new ´Regional Concept´, we are introducing a new kind of eutomomy in our subsidiaries, and are giving them a lot of say in local decisions”, announced Dr. Klien.