- Significant premium increases in Austria and Western Europe – without additional acquisitions and contrary to the market trend
- Sustained robust growth stimuli from ongoing premiums in Eastern Europe
- Significantly high benefits paid to customers and injured parties
- Further increase in provisions for future benefits and reserves
- Costs kept to previous year's level without radical measures
- Profit up slightly from the first six months

In the first three quarters, the UNIQA Group Austria generated consolidated premiums in life insurance of €3,510 million. Despite the repercussions of the financial crisis and negative currency developments, the premium level grew by 0.8% compared to the same period in the previous year.Adjusted for the exchange rate fluctuations, significant premium growth of 4.5% was achieved.UNIQA generated strong premium growth in Austria (+2.9%) and Western Europe (+3.0%) despite a declining market trend.It is particularly noteworthy that UNIQA sustained its momentum even in Eastern and South Eastern Europe in an extremely difficult market environment. In ongoing premiums, above-average growth of 12.4% on a euro basis was achieved in the region.From a sector perspective, property and casualty insurance stands out with 3.9% premium growth.

While it was possible to keep costs stable compared to the same period in the previous year, storm claims and several major events made it necessary to pay out significantly more benefits to customers and injured parties and provisions were set aside for outstanding claims.The positive trend for return on capital continued – net profit from capital investments more than doubled and a large portion of it was used for a massive build-up of provisions.

This resulted in a profit for the first nine months of €42 million, which is €7 million higher than at the end of the first six months but still less than in the same period in the previous year (€104 million).

UNIQA CEO Konstantin Klien: “By systematically continuing our quality strategy, we have been able to utilize the potential arising from the markets weakened by the financial crisis for UNIQA in an above-average manner.In Austria and in nearly all the other 20 European countries in which we operate, UNIQA continues to enjoy increased customer confidence and clear gains in market share.We observe a broad trend towards more safety and stability, particularly in the selection of partners from finance – a trend from which we are benefiting.I see this development as the result of our long-term corporate policy.Along these lines, we have taken advantage of the sharp increase in return on capital to build up our provisions while simultaneously improving our profit compared to the first six months.Even if we are still far from achieving the profits of previous years, and 2010 will certainly not be a simple year, UNIQA today is substantially stronger than it was a year ago.In doing so, we have broadened the basis for future growth."

In Austria, the UNIQA Group companies - excluding additional acquisitions - increased the retained premiums earned by 2.9% to €2,284 million, well exceeding the market forecast of -0.3% for the year as a whole.Momentum was sustained particularly in property and casualty insurance with an increase in premiums of €980 million or 5.3%.Contributing factors included definite gains in the general business as well as a significant increase in the motor vehicle lines which clearly exceeded the increase in new car registrations.Even with the marginal 0.3% decline in premiums in life insurance to €725 million, UNIQA is in a significantly better position than the Austrian average.Including the savings portion of the unit- and index-linked life insurance, UNIQA recorded a significant premium growth of 3.2% in this business line (market forecast for 2009: 2.5%).Contrary to the general market trend, the companies of the UNIQA Group recorded significant growth owing to innovative products in the area of unit- and index-linked life insurance.In particular single premium policies with new guarantee components and flexible life insurance models are very popular with customers.In health insurance, premiums in Austria rose by 3.2% to €579 million. UNIQA thus successfully reinforced its undisputed market leadership in this segment.

After the enormous rates of increase in 2008 and although the region was severely impacted by the repercussions of the financial and economic crisis, significant growth was recorded in all lines of business in Eastern and South Eastern Europe except single premium life insurance policies.Particularly in property and casualty insurance, which largely dominates the markets of the region, the UNIQA Group has successfully disengaged itself from the rather stagnant market trend and on a local basis generated premium growth of 26.3% to €488 million (+10.2% on a euro basis).
The trend for private health-insurance premiums continued to be exceptionally dynamic in this region, although from a relatively lower starting point.In this segment, the UNIQA Group increased premiums earned – adjusted for currency fluctuation – by 62.4% to €8 million (+31.4% on a euro basis) as a result of the successful introduction of product worlds and quality standards.The successful transfer of know-how from the position of the market leader in Austria made a substantial contribution to this very positive development.
In life insurance, the divergent development in Eastern and South Eastern Europe continued in the third quarter. While there were significant market adjustments in single premiums after the exceptionally high increases of the previous year due to the financial crisis, the UNIQA Group continued to increase ongoing premiums significantly.Ongoing premiums earned on a local basis were increased by 38.9% to €77 million (+26.2% on a euro basis).As expected, it was not possible to compensate the significant adjustment in single premiums (-24.3% on a local basis or -39.5% to €173 million on a euro basis). In sum, life insurance premiums in the region dropped by 13.2% to €249 million (-28.0% on a euro basis).All in all, the Group companies generated €746 million in premiums earned in Eastern and South Eastern Europe. Adjusted for exchange rate fluctuations, this reflects growth of 9.4% (-6.2% on a euro basis).

In contrast to Eastern Europe, premiums from life insurance especially were significantly higher in Western Europe while the repercussions of the economic crisis were clearly evident in property and casualty insurance.In particular due to the increased sales cooperation with Veneto Banca in Italy and the dynamic performance of Mannheimer, the UNIQA Group succeeded in increasing the life insurance premiums earned in this region by an impressive 52.9% to €129 million.As in Austria and in contrast to Eastern Europe, single premium policies grew at an exceptionally high rate in Western Europe.In contrast, the premiums in property and casualty insurance declined in the region by 11.5% to €237 million. This development is solely due to declines in Italy, while the German Mannheimer Group was able to grow slightly in this segment as well - and contrary to the market trend - owing to its successful niche policy.In health insurance, it was possible to maintain the premium level of the previous year at 114 million in a difficult environment.In sum, UNIQA increased Group premiums earned in Western Europe by 3.0% to €480 million.

After the good developments in the previous year, the total amount of insurance benefits increased significantly in the first three quarters.The accumulation of major losses, the burdens due to the storm events in the third quarter, the first-time recognition of the companies in Romania and in particular the sharply increased allocation to deferred profit sharing in life insurance were the determining factors for this development.The net charge due to the storm losses alone came to approximately €45 million.All in all, retained insurance benefits were up 13.7% to €3,053 million.

As of 30 September 2009, the portfolio of investments of the UNIQA Group rose by 1.2% compared to the same period in 2008 to €22,080 million. The increase in net income from investments by 121.4% to €564 million resulted in a definite increase in the deferred profit sharing to the benefit of the policyholders.This results in no direct impact on profit to a comparable degree.

At €899 million, net costs were maintained at nearly the previous year's level (€897 million) in the first nine months due to the systematic compliance with optimization programs and without a shift in strategy.In Austria, this resulted in a lower cost ratio, given the significant premium increases.

Profit  on ordinary activities of the UNIQA Group amounted to €42 million after the first three quarters. Compared to the first half, this reflects an increase of 7 million or 20%.Development in the third quarter (July to September) was thus significantly better than in the same period of the previous year.

Outlook
UNIQA expects that the regionally very divergent market developments will continue or even intensify.In the countries of Eastern and South Eastern Europe in particular, the economic recovery and stabilization will proceed at extremely different rates of speed. Furthermore, the negative impacts of the financial and economic crisis can be expected to burden the insurance industry in the coming year as well.Phases of high volatility can also be expected to continue in the capital markets.

Based on the development in the current year and the currently available market data and forecasts, UNIQA expects premium development in Austria and also in the Eastern and South Eastern European region will significantly surpass the industry average for 2009 as a whole.Property and casualty insurance and some areas of life insurance will be the primary pillars.In the medium-term, an economic recovery will begin, particularly in property insuranceIn the long-term, the growing significance of private retirement provisions - across all regions - will provide for above-average growth factors primarily in personal insurance (life and health).

Dueto the continued uncertainties regarding further developments in the capital markets and the real economy, it remains impossible to make a reliable profit forecast for the 2009 financial year.

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.