EUR 246.3 million (+41.9$) or 10.2% of the Group’s premium volume came from the international subsidiaries (this international share would be 13.5% if the AXA companies had been included).

Life insurance transactions on the basis of single premiums and special products (e.g. contracts with a shortened premium length) were drastically reduced in the reporting year for risk and income reasons.  Premium income from this segment therefore declined as planned by 52.9% to EUR 206.2 million (2001: EUR 438.1 million).  The earned premium income from life insurance transactions with recurring premiums increased in contrast by 12.4% to EUR 736.6 million (2001: EUR 655.5).

The premiums earned in health insurance increased by 3.9% to EUR 688.6 million.

Premium income from property and casualty insurance increased by 14.1% to EUR 774.3 million (2001: EUR 678.5).

1.2. Decrease in benefit payments
The premium income in the past financial year relates to retained insurance benefits of EUR 2,351.9 million. This is 7.0% or EUR 177.4 million less than in 2001 EUR 2,529.3 million).

EUR 198.6 million (+71.9%) or 8.4% of Group’s benefits were paid out by its international subsidiaries.

Premium income from property and casualty insurance increased by 18.8% to EUR 588.3 million (2001: EUR 495.2) – mainly because of the flood claims in Austria and the Czech Republic. Health insurance benefits rose by 4.7% to EUR 629.2 million (2001: EUR 600.7). Retained insurance benefits from life insurance declined because of the targeted withdrawal from single premium policiesand the reduced profit sharing ratio which had to be adjusted to the tense capital market environment.

1.3. Combined ratios could be reduced
The total consolidated operating expenses could be reduced successfully - by 6.2% to EUR 472.4 million (2001: EUR 503.8 million). The underwriting cost development (including change of deferred acquisition costs and less the re-insurance commissions) was slowed down by 3.9% to EUR 279.4 million. The reduction of 9.4% to EUR 193.0 million in other operating expenses was even more significant. 

The total combined ratio fell by 19.6% (2001: 20.7) as a result of the consistent implementation of the cost reduction programme and an additional total of EUR 31 million was saved over the past year, of which EUR 20 million in administrative expenses. 

The domestic operating expenses decreased by as much as EUR 50 million or 11.2% to EUR 397.9 million. The domestic combined cost ratio fell from 19.8% to 18.4%.

1.4. Capital investment result affected by difficult capital market environment
UNIQA increased the total capital investments in 2002 by 4.4% to EUR 11,682.1 million (2001: EUR 11,188 million). EUR 11,350.6 came from the Austrian companies. Net investment income declined by EUR 184.1 million to EUR 475.9 million. The ordinary (net) income from investments amounted to EUR 612.7 million (2001: EUR 665.6 million). This development was primarily the result of ending or selling high-interest bonds and loans that were re-invested at different conditions because of the situation on the capital markets.

The continuing weak development in the share markets led to a decrease in the value of the UNIQA Group share portfolio. Realised price losses in variable- interest securities were for the most part offset by capital gains from the sale of fixed-interest securities.

1.5. Ordinary business activity
In 2002, which was a very difficult year for the whole insurance industry, the UNIQA Group achieved a result from ordinary business activity of EUR 35.3 million - EUR 10.1 million less than in 2001 (EUR 45.3 million). This decline was primarily due to  the continued difficult capital market environment causing lower capital income and the extraordinary number of claims from the flood disasters in Austria and the Czech Republic. The considerable improvement in the actuarial results from the property and health insurance lines and the cost reductions already made were only able to even out the negative effects to a certain extent.

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