Growth despite difficult economic conditions:

Encouraging growth in the recurring premiums of 4.1%
Decline in single premium business by 14.0%
Group premium volume allocated at EUR 1,655 million (+1.4%)

Significant increases in recurring premiums in all lines:
Property and casualty insurance +4.2% / life insurance +3.6% / health insurance: +4.8%

Continued double-digit growth in euro-based recurring premiums in Eastern and South-Eastern Europe despite unfavourable currency developments:
Eastern and South-Eastern Europe: +18.7% / Austria: +2.3% / Western Europe: -0.2%

Combined ratio at 94.5%

Consolidated profit doubled to EUR 28 million, profit on ordinary activities at EUR 31 million (-27.4%)

Continued volatility on the capital markets and uncertainty regarding general economic developments make reliable forecasts for the entire year impossible

Group Embedded Value 2008 negatively affected by developments in the financial markets

UNIQA CEO Konstantin Klien: "In the first quarter of 2009, the UNIQA Group proved its ability to perform even during difficult times with clear growth in recurring premiums by 4.1% and a doubling of the Group results. I see a confirmation of our long-term strategy of diversification in the region of Eastern and South-Eastern Europe in the fact that we succeeded in keeping the growth in euro-based recurring premiums from these markets in the double-digit range at 18.7% and nearly at the level of the previous year (+21.6%). Taking local currencies as the basis, the increase in recurring premiums in these markets even amounts to 30%. In Austria, the UNIQA Group succeeded in increasing recurring premiums during the first quarter by 2.3%, which is even better than the same period of the previous year (+1.4%). This also places us clearly above the market forecast for 2009. In Western Europe, we were not able to increase the premiums, but even here we are situated significantly better than the market with our niche policy.” 

In the 1st quarter of 2009, the UNIQA Group succeeded in achieving considerable growth under difficult economic conditions. Despite the unfavourable currency developments in Eastern and South-Eastern Europe, it was possible to increase the Group’s euro-based recurring premiums written (including the savings portion of unit- and index-linked life insurance) by 4.1% to EUR 1,442 million (1-3/2008: EUR 1,385 million). At the same time, the single premiums fell by 14.0% as expected due to the economic environment. In total, the euro-based Group premium volume written (recurring premiums and single premiums) rose 1.4% to EUR 1,655 million (1-3/2008: EUR 1,633 million). Adjusted for the currency rate fluctuations, premium growth even amounts to 3.6%.

The strongest growth seen in the 1st quarter of 2009 was in the UNIQA Group companies in Eastern and South-Eastern Europe, despite the major economic difficulties and currency turbulence in parts of the region. The euro-based recurring premiums written were increased by 18.7% to EUR 230 million (1-3/2008: EUR 194 million), while the revenue from the single premium business fell by 28%. Taking local currencies as the basis, the growth in recurring premiums even amounted to 30%. The total euro-based Group premium volume written (recurring premiums and single premiums) from this region increased by 3.5% to EUR 298 million (1-3/2008: EUR 288 million), making the region’s contribution to the Group premiums 18.0% (1-3/2007: 17.6%).

The premium volume from recurring policies in the core market of Austria also increased significantly by 2.3% to EUR 985 million (1-3/2008: EUR 963 million). This places the growth almost one percentage point above the same period of the previous year. This more than compensated for the decline in single premium business by 8.1%, and the total premium volume (recurring premiums and single premiums) from the Austrian home market increased by 1.3% to EUR 1,078 million (1-3/2008: EUR 1,064 million) – a very pleasing development in consideration of a forecast for the entire insurance industry in 2009 in the range of negative 1.9% to positive 0.8%.

The combined ratio did increase compared with 2008 but was still at a satisfactory level of 94.5% (1-3/2008: 86.7%).

The portfolio of capital investments of the UNIQA Group at the end of the 1st quarter of 2009 was slightly less than the same point of the previous year at EUR 21,352 million (31 March 2008: EUR 21,647 million). The net investment income increased in the first three months of 2009 by 86.2% to EUR 146 million (1-3/2008: EUR 79 million).

The Group results (after taxes and minority shares) of the UNIQA Group doubled in the first quarter of 2009 by 100.9% to EUR 28 million (1-3/2008: EUR 14 million). The earnings per share rose accordingly to EUR 0.22 (1-3/2008: EUR 0.12). The profit on ordinary activity fell by 27.4% to EUR 31 million (1-3/2008: EUR 42 million).

In view of the continued high volatility on the capital markets and the uncertainties with regard to the further development of economic conditions, it is not currently possible to make a reliable forecast for the 2009 financial year and beyond.

Premium development in property and casualty insurance
In property and casualty insurance, the UNIQA Group increased premium volumes in the first three months of the current year by 4.2% to EUR 797 million (1-3/2008: EUR 764 million). While the premiums in Austria increased by 1.7% to EUR 460 million (1-3/2008: EUR 453 million), they continued to grow rapidly in the regions of Eastern and South-Eastern Europe by 18.7% to EUR 188 million (1-3/2008: EUR 159 million). Taking local currencies as the basis, the growth in premiums even amounted to roughly 31%. In the Western European markets, the premiums declined in line with the overall economic developments by 3.3% to EUR 147 million (1-3/2008: EUR 153 million).

Premium development in life insurance
In life insurance, the recurring Group premiums written of the UNIQA Group grew by an encouraging 3.6% to EUR 389 million (1-3/2008: EUR 375 million). In the area of single premium policies, the worsening of the economic conditions resulted in an expected decline – corresponding revenues fell by 14.0% to EUR 213 million (1-3/2008: EUR 248 million). The total Group premiums written from life insurance (recurring premiums and single premiums) declined as a result of this development by 3.4% to EUR 602 million (1-3/2008: EUR 623 million). Adjusted for the currency fluctuations in Eastern and South-Eastern Europe, this decline amounts only to 0.6%.

In Austria, the recurring premiums from life insurance grew by 2.2% to EUR 326 million (1-3/2008: EUR 318 million), while the single premiums declined by 8.1% to EUR 93 million (1-3/2008: EUR 101 million). In total, this resulted in a slight overall premium decline of 0.3% to EUR 418 million (1-3/2008: EUR 419 million).

After an extremely successful year in 2008, the life insurance business in Eastern Europe exhibited more subdued behaviour, whereby the growth in euro-based recurring premiums of 15.7% to EUR 39 million (1-3/2008: EUR 34 million) is quite pleasing in consideration of the unfavourable currency developments. The single premiums fell as a result of the economic conditions by 27.9% to EUR 68 million (1-3/2008: EUR 94 million). In total, this results in a euro-based premium decline in life insurance in the region of 16.3% (currency-adjusted: -2.4%) to EUR 107 million (1-3/2008: EUR 128 million).

In Western Europe, the companies of the UNIQA Group were able to slightly increase the premiums from life insurance in the first three months of 2009 by 0.9% to EUR 76 million (1-3/2008: EUR 75 million). Here too, single premiums fell slightly (-0.4%) while the recurring premiums grew (+3.8%).

Premium development in health insurance
The premiums written in health insurance increased during the 2009 reporting period by 4.8% to EUR 257 (1-3/2008: EUR 245 million). In Austria, premium volume grew by 3.6% to EUR 199 million (1-3/2008: EUR 192 million). Internationally, premiums rose by 9.1% to EUR 58 million (1-3/2008: EUR 53 million) and contributed 22.6% (1-3/2008: 21.7%) to the Group health insurance premiums.

Group Embedded Value 2008 negatively affected by the developments in the financial markets

As a result of the changes to the general conditions caused by the financial crisis and in line with the general trends in the industry on an international level, the UNIQA Group’s European Embedded Value also fell in 2008. The activities in Austria were particularly affected whereas due to strong organic growth in life insurance business in Eastern and South-Eastern Europe it was even possible to increase the Embedded Value in this region. Overall and after subtracting the minority shares in the Group, the 2008 European Embedded Value for the UNIQA Group calculated using the “MCEV principles” is EUR 1.86 billion (2007: EUR 2.39 billion), which corresponds to a decline of 22%.
Before deducting minority shares the Group’s Embedded Value was EUR 2.25 billion (2007: EUR 2.90 billion).

Reservations concerning statements about the future
This message contains statements that refer to future developments in the UNIQA Group Austria. These statements are appraisals that are made based on all information available to us at the current point in time. If the assumptions on which they are based do not occur, the actual events may vary from the results currently expected. For this reason, we cannot accept liability for these statements.