Uniqa Insurance : Group Report 2023 11.04.2024

Group Report 2023 | UNIQA­ Group

living better together

UNIQA Group at a glance

Consolidated key figures in € million	2023	20221)	Change
Premiums written2)	7,185.6	6,548.7	+ 9.7%
• of which property and casualty insurance	4,214.3	3,683.0	+ 14.4%
• of which health insurance	1,388.1	1,275.9	+ 8.8%
• of which life insurance	1,583.2	1,589.8	- 0.4%
Premiums written UNIQA Austria2)	4,290.0	4,086.4	+ 5.0%
Premiums written UNIQA International2)	2,787.9	2,450.0	+ 13.8%
Insurance revenue	5,994.1	5,346.9	+ 12.1%
• of which property and casualty insurance	4,006.3	3,547.8	+ 12.9%
• of which health insurance	1,234.7	1,139.7	+ 8.3%
• of which life insurance	753.1	659.3	+ 14.2%
Insurance service expenses	- 5,291.0	- 4,744.5	+ 11.5%
• of which property and casualty insurance	- 3,580.8	- 3,254.3	+ 10.0%
• of which health insurance	- 1,110.3	- 1,038.5	+ 6.9%
• of which life insurance	- 600.0	- 451.7	+ 32.8%
Technical result from reinsurance	- 140.9	- 38.4	+ 267.2%
Technical result	562.2	564.0	- 0.3%
• of which property and casualty insurance	287.5	255.9	+ 12.3%
• of which health insurance	122.0	101.8	+ 19.8%
• of which life insurance	152.8	206.3	- 25.9%
Group cost ratio	31.0%	30.9%	-
Combined ratio (gross before reinsurance)	89.4%	91.7%	-
Financial result	150.2	- 49.9	-
• of which net investment income	588.8	179.8	+ 227.4%
Non-technical result	- 206.4	- 161.7	+ 27.6 %
Operating profit/(loss)	506.1	352.4	+ 43.6%
Earnings before taxes	426.4	272.3	+ 56.6%
Profit/(loss) for the period from continuing operations	323.1	255.4	+ 26.5%
Profit/(loss) from discontinued operations (after tax)	- 19.3	0.3	-
Profit/(loss) for the period	303.8	255.7	+ 18.8%
Consolidated profit/loss	302.7	256.0	+ 18.3%
Return on equity3)	14.1%	11.6%	-
Investments	20,431.9	19,376.0	+ 5.4%
Shareholders' equity	2,710.2	1,883.3	+ 43.9%
Equity, including non-controlling interests	2,730.1	1,901.0	+ 43.6%
Total assets	28,151.0	26,641.1	+ 5.7%
Average number of employees (FTE)	14,629	14,515	+ 0.8%

1. In the interest of comparability, the figures for 2022 were recalculated in accordance with IFRS 9/17.
2. Including savings portions from unit-linked and index-linked life insurance (amounts determined in accordance with local accounting practices)
3. This calculation does not take into account the effect of the planned sale of the Russian company.

On 1 January 2023, two new international accounting standards came into effect, IFRS 9 (Financial Instruments) and IFRS 17 (Insurance Contracts), which have a significant impact on the presentation of the UNIQA Group's financial position, financial performance and profit or loss due to extensive changes in the measurement and accounting of financial instruments and insurance contracts. Due to the first application of these two accounting standards, a retrospective restatement was made of the values from the comparative period 2022 and as at the comparative date 31 December 2022. There is therefore no direct comparability with the figures published for the 2022 financial year or previous years.

Premiums written

In € million

7,186

			6,358	6,549
	5,373	5,565
6,000
5,000
4,000
3,000
2,000
1,000
	2019	2020	2021	2022	2023

(Including savings from unit-linked and index-linked life insurance)

Earnings before taxes

In € million

		IFRS 4/IAS 39			IFRS 9/17
			382		426
400
300				272
232
200
100		57
	2019	2020	2021	2022	2023

Combined ratio

In per cent

	IFRS 4/IAS 391)		IFRS 9/172)
100	97.8
96.4
95		93.7
		91.7
90				89.4
85
2019	2020	2021	2022	2023

1. Based on premiums earned (net after reinsurance)
2. Based on insurance revenue (gross before reinsurance)

Regulatory solvency capital requirement ratio (SCR)

In per cent

255

250				246
225	221
200			196
175		170
	2019	2020	2021	2022	2023

Dividend per share

In €

		0.55	0.55	0.571)
0.5
0.4
0.3
0.18	0.18
0.2
0.1
2019	2020	2021	2022	2023

1. Proposal to the Annual General Meeting

Return on equity

In per cent

		IFRS 4/IAS 39		IFRS 9/171)
15					14.1
12				11.6
			9.3
9
6	5.4
3
		0.6
	2019	2020	2021	2022	2023

1. This calculation does not take into account the effect of the planned sale of the Russian company (profit/(loss) from discontinued operations (after tax).

The UNIQA Group is one of the leading insurance companies in its core markets of Austria and Central and Eastern Europe (CEE). Around 21,000 employees and ­exclusive sales partners serve almost 17 million customers across 17 countries. UNIQA is the second largest insurance group in Aus- tria with a market share of about 21 per cent. In the CEE growth region,

UNIQA is present in 14 markets: Albania,­ Bosnia­ and Herzegovina, Bul- garia, Croatia, Czechia, ­Hungary, Kosovo, Montenegro, North Macedonia, Poland, Romania, Serbia, Slovakia and Ukraine. In addition, insurance companies in ­Switzerland and Liechtenstein are also part of the UNIQA Group.

Balanced	... in the core markets
portfolio ...	of Austria and CEE

19%

Health insurance

	61%
				Austria
59%				22%				39%
						CEE
			Life insurance
Property and
casualty insurance
		Premium distribution
UNIQA Group					UNIQA Austria
@UNIQA Insurance Group @uniqagroup @uniqa		@uniqa.at @uniqa.at

Highlights 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Foreword by the CEO . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Group Executive Board . . . . . . . . . . . . . . . . . . . . . . 30

Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

UNIQA 3.0 strategic programme:

The final sprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Mavie: on the way to being

a holistic healthcare provider . . . . . . . . . . . . . . . 48

Capital market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Market environment . . . . . . . . . . . . . . . . . . . . . . . . . 56 UNIQA shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 UNIQA bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 IFRS 9/17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Corporate governance . . . . . . . . . . . . . . . . . . . . . 64

Consolidated

Corporate Governance Report . . . . . . . . . . . . . . 67

Report of the Supervisory Board . . . . . . . . . . . . . 81

Performance 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . 86

(Consolidated)

Non-Financial Report . . . . . . . . . . . . . . . . . . . . . . . . 88 Group Management Report . . . . . . . . . . . . . . . . 130 Consolidated Financial Statements . . . . . . . 152

Notes to the Consolidated

Financial Statements . . . . . . . . . . . . . . . . . . . . . . . 159 Risk Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269 Auditor's Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286

Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292 Imprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297

living better together

Some day, history will probably describe 2023 as having been part of an era marked by the advent of upheavals signifying a profound transformation - one that at the time still remained largely obscure. Global efforts to fight climate change were marred by discord, while acute geopolitical crises unfolded in the Middle East, in Africa, and as a consequence of the Russian war of aggression on Ukraine. At the same time, there was a noticeable rad- icalisation of the political landscape, even in inherently robust democratic nations. Social and healthcare systems faced strains in an ageing Western world that had become somewhat complacent, even as its success story of the last eight decades was at risk of being cut short by entrenched interests, a reluctance to embrace reform and disagreement over intergenerational solidarity related to the concept of "productivity".

And yet every crisis offers opportunities. We are very pleased and proud to be able to serve 16.7 million customers in 17 European countries and provide them with a sense of security in an unstable world. "We" - that is around 16,000 dedicated employees, some of whom are introducing themselves to you personally in this report on the 2023 financial year. Because we want to make a reliable contribution so that you, as our shareholders, can enjoy living better together with UNIQA.

5

Group Report 2023

Highlights

2023

Standard & Poor's affirms rating and upgrades outlook

Twice in 2023, the international ratings agency Standard & Poor's (S&P) confirmed its ratings for the UNIQA Group and even improved the outlook: on 1 March 2023, S&P reaffirmed the "A" rating for UNIQA Österreich Versicherungen AG and UNIQA Re AG, as well as the "A-" rating for UNIQA Insurance Group AG. At the same time, S&P raised the outlook for the three companies from "negative" to "stable". All ratings as well as the outlook "stable" were reaffirmed on 8 November 2023. S&P particularly highlighted UNIQA's customer-oriented approach, the cooperation with banks (bancassurance), the successful integration of the companies acquired from AXA in CEE, the sustained robust profitability and capitalisation despite geopolitical and macro­ economic challenges, as well as the expected further expansion of the Group.

Integration of former AXA companies in CEE exceeds expectations: synergy ­targets achieved ahead of schedule

The integration of the former AXA subsidiaries in Poland, Slovakia and Czechia, acquired in 2020, into the UNIQA Group is progressing better than planned. The strategy behind this acquisition, at €1 billion the largest in our Group's history, is proving its worth: the consolidation of our reciprocal expertise is generating significant advances in many areas and is putting us in a leading position in terms of insurance expertise and profitability. The success story of the post-merger integration continued in 2023. The focus was on process sim- plification, integration and a cultural and operational transformation. Three years after the acquisition - and therefore earlier than planned - we were able to realise synergy effects of €50 million per year from the assimilation. All strategic goals of this major integration project should be achieved by the end of 2024. This puts us in an ideal position to meet the challenges of the future.

myUNIQA app: more digital services for over 500,000 customers

In the summer of 2023, UNIQA presented the enhanced version of the myUNIQA app. The updated app offers customers even more attractive features, such as fingerprint unlock, greater convenience in the electronic mailbox, and more intuitive operation. In addition, the app is available in English and now also provides access to the advantage club myUNIQA plus. The myUNIQA app should by no means reduce or replace personal advice for customers, but rather targets ­customers who prefer, for example, to quickly and easily handle damage reports themselves. Personal contact to provide advice remains an important pillar of the individual support that UNIQA offers customers. The fact that the new app has been very well received is shown not least by the excellent rating with 4.7 (out of a possible 5) stars in the Apple App Store.

6

Highlights

New photovoltaic system: Vienna headquarters becomes the Energy Tower

With the commissioning of a new photovoltaic system, we have transformed the UNIQA Tower in Vienna into an "Energy Tower". The new installation will produce 100,000 kWh of solar power annually. This not only reduces the electricity consumption for the UNIQA Tower by up to 40 per cent, but also eliminates 21 tonnes of carbon emissions. UNIQA is thus setting another example of environmental awareness and resource conservation: since 2020, the installed photovoltaic capacity has been increased from 50 kWp to over 400 kWp, multiplying it by a factor of eight within a few years - further evidence that the UNIQA Group is seriously pursuing its sustainability goals. This is also evident in the transformation towards "Green Finance": since 2019, UNIQA has no longer been providing property insurance for new coal industry businesses and, in the next step, plans to withdraw from investments in oil (by 2030) and natural gas (by 2035) in the industrial business.

Iris Brachmaier appointed as Group Chief People Officer

In August 2023, we were able to win Iris Brachmaier for the newly created position of "Group Chief People Officer" as part of a reorganisation of the management structure of our HR department. The lawyer, who most recently held a senior position in Strategy, HR & ESG at the international GG Group, has now taken on responsibility for personnel matters within the entire UNIQA Group. At the same time, Robert Linke, who has been significantly shaping and professionalising the human resources department at UNIQA since 2016, takes on the role of the new "Head of People Austria" with a focus on the employees in Austria. This strengthens the foundation for an effective and employee-oriented approach to HR matters and brings UNIQA a decisive step closer to becoming the best employer in the industry.

7

Group Report 2023

Comprehensive advertising campaign "Active together - living better"

Since June 2023, UNIQA has been running a broad-based advertising campaign on television, digital media and posters in Austria. UNIQA wants to raise awareness among Austrians that each individual can contribute to a better life for all through small actions. This is also emphasised by the overarching motto "Living better together - living actions together". The campaign simultaneously reflects UNIQA's commitment to a sustainable future. The collaboration with Admosfy, an initiative to create climate-neutral media campaigns, serves this purpose. The carbon emissions caused by the advertising campaign can be fully offset.

Partnership with ÖSV extended

The successful partnership between the UNIQA Group and the Austrian Ski Federation (ÖSV) has been in existence for 50 years and was extended for yet another three years in 2023. The agreement was signed at the end of September by Aus- trian Ski Federation Secretary General Christian ­Scherer and UNIQA Management Board member Kurt Svoboda. The extensive cooperation not only regulates the provision of advertising space, but also the broad support of the Austrian Ski Federation's young talent and co-­operation in the area of insurance. UNIQA not only wants to use this partnership to promote top-level sports, but also to continue to actively support skiing as a popular sport, especially for young people.

8

Highlights

Burkhard Gantenbein succeeds Walter Rothensteiner as Chairman of the Supervisory Board

On 6 June 2023, Burkhard Gantenbein was elected Chairman of the Supervisory Board of UNIQA Insurance Group AG, succeeding Walter­ Rothensteiner, who retired from this position after eleven years due to the age limit specified in the Articles of Association. Burkhard Gantenbein has been a member of the UNIQA Supervisory Board since 2017. Prior to that, he served among other things as a member of the Management Board of Generali Insurance Group and CEO of Helvetia Insurance in Austria. With the Swiss native, who also holds German citizenship, an experienced expert in the insurance industry is at the helm of the Supervisory Board.

Science Based Targets initiative ­confirms ambitious climate goals

As a pioneer in the Austrian insurance indus- try, UNIQA is committed to ambitious climate goals. We specifically plan to achieve net-­zero emissions by 2040 in Austria and by 2050 in all of our markets. We are also consistently aligning our investment portfolio with the 1.5°C target. These UNIQA targets were validated in December 2023 by the Science Based Targets initiative (SBTi), a collaboration of leading international environmental organisations. The validation covers emission reductions both in our own operations and in our investments. This makes UNIQA the only Austrian insurance company to date whose climate targets have been recognised by SBTi as science-based.

International corporate business: premium volume exceeds €1 billion

In 2023, premium revenues in international corporate business exceeded the €1 billion mark for the first time. With a 20 per cent increase in premium revenues, we were once again able to outperform our com- petitors. And this segment also holds great strategic potential for the future. We see significant growth opportunities in property and casualty insurance for corporate clients in particular - especially in Central and Eastern Europe, where the number of companies is constantly increasing.

We presented a new Group-wide B2B strategy in 2023 to leverage these opportunities. The goal is to further expand and scale our strong market position with a 360-degree range of services for corporate cli- ents. In addition to industry-specific insurance solutions and the development of omni-channel sales, our offers also include advisory services that go beyond traditional insurance, e.g., on the topics of ESG and risk management, as well as offers in the areas of affinity and employee benefits. As we also see great opportunities in the SME sector, we are diversifying our portfolio in this direction, too.

9

Group Report 2023

Private hospitals in Austria: UNIQA invests €245 million

In addition to the €65 million that are already being invested in the expansion and modern- isation of Döbling Private Hospital, we are currently investing €180 million in the merger and new construction of the Confraternität and Goldenes Kreuz Private Hospital in Vienna's ninth district. In Döbling, we celebrated the topping-out ceremony in October 2023, just nine months after the foundation stone was laid. The five-story extension, which will include new operating theatres, more space for the maternity ward, a lounge for staff and additional single rooms for patients, is scheduled to commence operations in 2026. The new building for Confraternität and Goldenes Kreuz will be one of the most modern private hospitals in Austria when it opens by mid-2028. Plans include, among other things, six operating theatres, two endoscopy rooms, four delivery rooms and an outpatient and doctors' office centre, in addition to 120 beds on four wards. In addition to the important focus on prevention, which we address under our second brand Mavie, with these extensive investments in the private hospitals of our PremiQaMed Group, we are setting new standards in medicine and care.

South East Europe: excellent results

For the second year in a row, UNIQA recorded double-digit growth in the SEE5 region in 2023, which is well above the market average. With almost two million customers, a premium volume of €305 million and around 1,600 employees, this is the third-largest region in the UNIQA Group. To improve the operating performance of the insurance companies operating in this region, UNIQA had already combined the five markets of Croatia, Serbia, Bosnia and Herzegovina, Monte- negro and Bulgaria into a single region under the title SEE5 in March 2022.

A year and a half later, the targeted transformation was clearly successful: in addition to the premium growth achieved, profitability has also increased sig- nificantly, with a 90 per cent increase in EBT in 2023 alone. This was based on initiatives designed to exploit the region's full potential, including the introduction of regional governance, the acceleration and simplification of all process- es, the targeted development of synergies, the harmonisation of regional brand activities and the launch of measures to promote the company culture and employee experience.

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