Uniqa Insurance : Group Sustainability Report 2023 11.04.2024

2023 Sustainability Report | UNIQA Group

living better together

2023 Sustainability Report

Contents

1	Introduction
1.1	Foreword by the CEO	06
1.2	About this report	08
1.3	UNIQA at a glance	10
1.4	Emerging risks	12
1.5	Sustainability risks	14
1.6	NatCat Competence Centre	16
1.7	Highlights 2023	18
1.8	Facts and figures	20

2 The UNIQA sustainability strategy and ESG integration

2.1 UNIQA sustainability strategy . . . . . . . . . . . . . . . . . . . .24 2.2 ESG integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 2.3 Stakeholder engagement. . . . . . . . . . . . . . . . . . . . . . . . .34 2.4 Our materiality analysis . . . . . . . . . . . . . . . . . . . . . . . . . .35

3	Sustainability in UNIQA's core business
3.1	Sustainable investment	40
3.2	Sustainability in insurance activities in the
	Corporate Business segment	50
3.3	Sustainability in insurance activities
	in the Retail segment	58
3.4	Sustainability in our own operational
	management	64
4	Sustainability in our UNIQA community
4.1	Our employees	72
4.2	Diversity and inclusion at UNIQA	78
4.3	Training and continuing education at UNIQA	82
4.4	Employee satisfaction	86
4.5	Occupational health and safety	90
4.6	Social activities and sponsorship	94

5 Sustainability in UNIQA's governance

5.1 Compliance and combatting corruption

and bribery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .98

5.2 Our approach to upholding human rights . . . . . . 102 5.3 Higher standards and improved

processes in data protection . . . . . . . . . . . . . . . . . . . 104

5.4 Risk-based cybersecurity . . . . . . . . . . . . . . . . . . . . . . . 106 5.5 Public affairs: the bridge to the world. . . . . . . . . . . 108

6 Key figures and performance

6.1 Key employee figures . . . . . . . . . . . . . . . . . . . . . . . . . . . 112 6.2 Key environmental figures . . . . . . . . . . . . . . . . . . . . . . 116

7 GRI content index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

8 Independent assurance report . . . . . . . . . . . . . . . . . 126

living better together

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2023 Sustainability Report

Foreword by the CEO

1.1 Foreword by the CEO

The year 2023 was another challenging year globally and regionally, which put us to the test as a community and also as individual leaders. Against the backdrop of unfortunately mostly quiet but all the more devastating climate change, geopolitically autocratic systems are aggressively exploring their options for expansion and cooperation, while the common values of democratic systems are coming under pressure. Europe's security architecture is viewed as being critical and efforts must be stepped up to safeguard collaborative relationships in the Western world. Despite these challenging framework conditions, we rely on our resilience and adaptability. We see these restraints as opportunities to create a sustainable economy, to improve coexistence and to increase cohesion. Our commitment is reflected in consistent steps, small or big, to further develop our business model and achieve net-zero emissions in Austria by 2040 and internationally by 2050.

Overcoming the many social and health challenges goes beyond mere insurance coverage and requires competent advice and comprehensive support, which are integral parts of our services. We actively integrate European environmental objectives and are committed to respect for human rights. At the same time, our commitment to the fight against human-induced climate change remains firmly anchored as an essential cornerstone of our "living better together" claim. This report provides information on the progress we

have made over the past year in integrating sustainability into our business model. Specifically, we have derived our medium-term and long-term goals for the core areas of investment and own operational management according to scientific principles and had them successfully validated by the Science Based Targets initiative (SBTi). For the core area of property insurance coverage, we have also calculated indirect emissions according to current frameworks and aligned our medium-term and long-term goals accordingly. We create action plans and implement them through consistent steps.

Despite challenging political, social and economic condi- tions, we strongly believe that our strategy strengthens our resilience. The majority of our stakeholders appreciate, and are even calling for, all our efforts to achieve a sustainable form of economic development and coexistence. We are already anticipating the forthcoming Sustainable Finance regulation in many of the lines of action being pursued and are thus on a safe and sustainable path. We call for climate action through our intensive dialogue as part of our memberships and actively promote our climate strategy through targeted measures and action plans.

This would not be possible without a common system of values that we all live by as UNIQA employees, and that makes me proud of what we have achieved. Our Management Board team's thanks go to all our colleagues who have made these successes and progress possible!

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Yours, Andreas Brandstetter

CEO UNIQA Insurance Group AG

GRI 2-22,2-23

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2023 Sustainability Report

1.2 About this report

In this Sustainability Report for UNIQA Insurance Group AG, we would like to present the economic, environmental and social impact of our business activities during the year under review, 2023. We would also like to provide insight into the direction we are moving in with our holistic business approach. The aim of this report is to provide our stakeholders with transparency on where we stand on sustainable corporate governance, what we intend to work on and what we want to improve in future.

This Sustainability Report was prepared in accordance with the Global Reporting Initiative (GRI 2021) standards. A summarised (consolidated) non-financial report was also prepared in accordance with the Austrian Sustainability and Diversity Improvement Act (Directive 2014/95/EU) and is published as such in the 2023 Group Report. Last year's report was published on 5 April 2023. This ensures the transparency and comparability of the information provided. The GRI codes for the indicators presented are noted in the relevant report sections and tables of key figures, as well as shown clearly in the GRI content index in the notes. This report includes information and data relating to UNIQA Insurance Group AG (UNIQA Group). The reporting period for the published performance indicators and descriptions is the financial year, which covers the period from 1 January to 31 December 2023. Reporting takes place annually. Due to the scope of the information required by the EU Taxonomy Regulation, this information is only disclosed in the 2023 (consolidated) non-financial report. This report contains the content of the climate report to be published annually in accordance with the Green Finance

Alliance (GFA) criterion 1.2.1. The corresponding content can be found in the sections on the sustainability strategy (2.1) and core business (3.1, 3.2, 3.3 and 3.4).

All content and data in this report refer to the UNIQA Group and its fully consolidated Group companies. Should any content or key performance indicators not cover the entire UNIQA Group, this is clearly indicated in the report or explained in more detail in footnotes in the respective sec- tions. The Telemedi Group, a Polish start-up, was acquired to supplement our health insurance services effective 31 Decem- ber 2023. The company has 49 employees. As the company was acquired just before the year-end financial statements, it cannot be included with corresponding ESG-related data for the 2023 financial year. In mid-2023, UNIQA withdrew completely from the Russian market and sold its subsidiary Raif- feisen Life in full to the Russian insurance company Renaissance Life. Since them, UNIQA only operates in 17 countries. As UNIQA continues to assume responsibility for employees and the environment in the 2023 financial year, this data is included in this report.

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2023 Sustainability Report

1.3 UNIQA at a glance

16.7	8.5	4.5	3.7
million	million	million	million
customers in	customers	customers	customers in
in EE, SEE and	Austria
17 countries	in CE
Liechtenstein

Central Europe (CE)

The pin shows the

Eastern Europe (EE) market position in

the relevant country.

South-Eastern Europe (SEE)

UNIQA at a glance

PL

6

UA

5

CZ

5

SK

4

AT	HU
2	RO
5
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	HR
	6

The UNIQA Group is one of the leading insurance companies

Most of our customers that we support hold property and casu-

RS

in its core markets of Austria and Central and Eastern Europe (CEE).

alty insurance policies, which account for 59 per cent of premi- ums, followed by health insurance at 19 per cent and life insur-

BA

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More than 15,000 employees serve over 16.7 million customers across

17 countries. UNIQA offers its products and services via all distribution channels (hired sales force, general agencies, brokers, banks and direct sales) and covers virtually the entire range of insurance lines. UNIQA is the second-largest insurance group in Austria, with a presence in

14 countries of the CEE growth region: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, 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.

GRI 2-1,2-6,205-1

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ance at 22 per cent. We are particularly proud to be the best known insurance brand in Austria, to serve our customers with a nationwide sales network and to build on a successful sales partnership with the Raiffeisen Banking Group. The insurance market in Austria is already mostly saturated, whereas in CEE we clearly have growth potential. Austrians currently spend around € 2,148 on average on insurance products each year. Annual per capital insurance expenditure in Central and Eastern Europe is still significantly lower than in Austria: the average premium in these markets is around € 250, roughly € 435 in Poland, Slovakia, Czech Republic and Hungary, which we have jointly defined as our second core market - and this with a clearly rising trend. All further information on the UNIQA Group's business activities can be found in the 2023 Group Report.

ME	XK	BG
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3	1

MK

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2023 Sustainability Report

Emerging risks

1.4 Emerging risks: keeping an eye on future challenges at all times

The insurance industry operates in a risk landscape that is constantly changing and that features new ecological, technolog- ical, geopolitical, economic and legal developments as well as their increasing dependencies. The risks arising from this environment are defined as "trends or emerging challenges (emerg- ing risks) with a high degree of uncertainty in terms of probability of occurrence and expected claim amount". Each year, the UNIQA Group Risk Management team identifies the most important emerging risks for the UNIQA Group as the first step. These risks are then evaluated by experts from the UNIQA Group in terms of impact and time horizon in the second step. The evaluation was carried out by 44 participants (100 invited experts; mostly B-1 managers at UNIQA International and UNIQA Austria, as well as the respective local risk managers) completing an online survey.

1.Geopolitical conflicts and terrorism:

The significance of this risk has increased in recent years, from 17th place in 2018 to 1st place in 2023. Alongside Ukraine, the (potential)

areas of geopolitical tension are the Korean Peninsula, the South China Sea and Taiwan and the Middle East. The potential consequences of geopolitical conflicts may be political instability and violent social unrest, particularly where there are instances of high food and energy prices, water scarcity, high unemployment, income inequality and a deterioration in public services. These conflicts may also impact financial markets and lead to insured losses arising from business interruptions and ownership rules. High value concentration areas are particularly affected, which are not taken into account in actuarial models. The UNIQA Group's experts are responsible for monitoring and reporting on this particular risk category on a regular basis. In doing so, they can influence the strategic asset allocation, new business and products.

2.Cyber risks:

Cyber risks were at the top of the most significant emerging risks for the UNIQA Group from 2018 and 2022, and this year they came in second place for the first time.

Increasingly sophisticated and technologically advanced cy- bersecurity attacks have increased in recent years, not only in terms of attack patterns and frequency, but also in terms of impact. One observable trend is that ransomware groups constantly "retire" and change their identity to circumvent law enforcement and sanctions. It is likely that this trend will con- tinue, new ransomware groups will emerge within a short period of time and smaller groups will be bought up, which may lead to an overlapping use of different ransomware versions.

The top three emerging risks for the UNIQA Group in 2023

3.Extreme weather events and natural disasters:

Extreme weather events and natural dis­ asters (NatCat events) have been among the most significant emerging risks for the

UNIQA Group since 2018. The risk is that these events cause unexpectedly high damage that leads to a loss of assets (e.g. as a result of property damage or harm to human health). Climate change poses a serious threat to nature and society as a whole. The negative impacts are already being felt today and will intensify in the future. The extent to which planned packages of measures to mitigate the effects of climate change are implemented in a timely manner and actually become effective is a risk derived from this.

The risk of "climate action" (6th place), cited here because it is significant in the context of ESG, is defined as "interventions in the climate system to counteract climate change" (e.g. techniques to capture carbon dioxide, solar geoengineering...), resulting in stranded assets, unknown receivables in the areas of property, liability, mortality, D&O and health. The experts rated this risk in 27th place last year.

We mitigate the risk caused by extreme weather events and natural disasters by constantly reviewing our calculation model, underwriting guidelines and reinsurance program. We also have our own team of experts in place, who are explicitly responsible for dealing with this particular topic.

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2023 Sustainability Report

1.5 Sustainability risks: key element of our risk management

Clear and sustainable risk management	Risk identification: The UNIQA Group's risk catalogue	Risk reporting: Sustainability risks are integrated into
Our goal is to protect our customers from risks, minimise	1. is expanded to include sustainability risks and poten-	5. the UNIQA Group's most important internal (ORSA) and
these risks through effective bundling and generate prof-	tial ESG-related causes. This ensures sustainability risks are	external reports (SFCR, RSR, Group Report). Regular updates
its for the company. The UNIQA Group has created its own	explicitly taken into account. We implement this within the	are carried out on an annual basis, as well as in the context of
Management Board role at Group level with the Chief Finan-	framework of our internal control system (ICS). The risk iden-	possible ad hoc reports.
cial and Risk Officer (CFRO) to ensure we remain focused on	tification process and risks are reviewed annually Group-wide.
minimising risk. The role of the Chief Financial and Risk	Short-term impacts are defined with a horizon of one year.	2023 - a year of further development
Officer (CFRO) is also embedded in the management boards		One of our main topics in 2023 was the further development of
at the various Group companies, which ensures that deci-	Risk assessment and scenarios: For the assessment	the long-term climate scenarios, taking into account experiences
sion-making is risk-based in all the relevant bodies.	2. of sustainability risks, we currently focus on climate	from the previous reporting period in the assessment process. A
The UNIQA Group Risk Management team actively follows the	scenarios from the IPCC (Intergovernmental Panel on Climate	quantitative approach was developed for the entire UNIQA Group.
various developments in sustainability, analysing their impact	Change) and corresponding RCPs (Representative Concentra-	Both physical risks (NatCat risk, physical risk exposure of issuers)
on the Group as part of the risk management process.	tion Pathways). Both Early Action (i.e. RCP 4.5) and No Addi-	as well as transitory risks (climate-related assets) were analysed in
The risk strategy is validated on a regular basis and also dis-	tional Action (i.e. RCP 8.5) scenarios and their impact on the	the UNIQA Group's portfolio.
cussed in the Risk Committee with the Management Board's	value of the UNIQA Group's investments and NatCat claims are	In addition, the UNIQA Group identified sustainability risks and
input. The UNIQA Group's risk management system is based	taken into account here. Data from the Bank of England sce-	potential causes in the operational risk cycle (internal control sys-
on our risk management policy, in which we have anchored	narios are used for both scenarios. We take short-term, medi-	tem and risk identification) at an early stage by critically reviewing
the definition of sustainability risks. We do not define sus-	um-term and long-term impacts into account.	different departments and business units and raised awareness of
tainability risks as a separate type of risk, but as a gener-		ESG risks across the entire UNIQA Group. The starting point was
al risk classification that influences existing risk categories	Risk monitoring using a limit system: The UNIQA	the implementation of upcoming changes resulting from a review
which the UNIQA Group is exposed to. The occurrence of	3. Group monitors the ESG-related investment profile of its	of the Solvency II quantitative reporting templates. This involves
sustainability risks may have an actual or potential material	international subsidiaries on an ongoing basis. Limits are set	reporting quantitative data on physical and transitional risks
adverse impact on the value of the Group's assets, liabilities,	in such a way as to achieve continuous improvement in the	directly to the national supervisory authority and the European
financial position or reputation.	Group's ESG profile and a reduction in the transient risk. This is	Insurance and Occupational Pensions Authority (EIOPA).
The UNIQA Group's risk management system already takes	done on a monthly basis.	We also further developed the process for evaluating outsourc-
into account potential short (<1 year), medium (1 - 10 years)		ing risks throughout the Group, explicitly taking the sustainabili-
and long-term impacts (>10 years), measured parameters	Risk controlling: We define a risk mitigation plan or	ty of our outsourcing partners into account. All the relevant ESG
and objectives in terms of sustainability in the individual	4. strategy for each significant residual risk, describing the	data was integrated into our IT risk analysis software in 2023 to
elements of the risk management process.	imminent response to that risk (including sustainability risks	enable the daily monitoring of ESG limit utilisation rates from
	or risks with a sustainability-related cause).	2024 onwards.

GRI 2-25

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Sustainability risks

Main objectives for 2024: Further develop our risk management activities

1. Identify sustainability risks at an early stage:
2. • Identify, regularly address and manage sustainability risks at an early stage
3. Monitor the market and best practice continuously:
4. • Continuously monitor industry regulations and best practice
   • Adapt risk management strategies to new sustainability guidelines
5. Develop climate scenarios further:
6. • Further develop the climate scenario concept
   • Optimally prepare for long-termclimate-related risks
7. Implement legislative changes:
8. • Ensure compliance with regulatory changes
   • Disclose KPIs on physical and transition risk
   • Materiality analysis for regulatory requirements and financial impact
9. Improved limit system:
10. • Develop the reporting process further
    • Automate data analysis in the limit system
    • Assess sustainability risks for responsible investment practice more comprehensively

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2023 Sustainability Report

NatCat Competence Centre

1.6 NatCat Competence Centre

The UNIQA Group's Natural Catastrophes Competence Centre­ (NCCC) deals with the complexity of natural disasters and their development, especially in connection with climate change. The NCCC plays a crucial role in analysing various risk aspects for the Group. This includes understanding the risk exposure that changes over time, identifying risk concentrations and calculating the expected annual losses based on specific natural hazards and locations, both individually and on an aggregated basis.

An essential part of the NCCC's work is to analyse scenarios that realistically depict future events, including extreme and rare events, as well as the impacts of climate change under different temperature scenarios with a focus on floods, storms and hail. One essential feature of the NCCC's approach is the use of advanced stochastic models that simulate hundreds of thousands of potential natural events. These models are not only state-of-the-art, but are also regularly refined to incorporate the latest data and methods.

A unique feature of the NCCC's approach is that two-thirds of these models incorporate the UNIQA Group's own historical claims data and thus offer a tailored risk perspective that differs from the non-specific assessments of general market mod- els. The insights gained from these stochastic natural disaster models are fundamental to the Group's comprehensive nat­ ural disaster risk management strategy. The NCCC also plays a crucial role in the assessment of the Group's underwriting and reinsurance strategies, in particular through the annual stress scenario tests.

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2023 Sustainability Report

On the way to the climate transition

1.7 On the way to the climate transition - Highlights 2023

Acting responsibly together

In October 2021, the UNIQA Group joined the United Nations Net-Zero Asset Owner Alliance (NZAOA), which represents approximately US$10 trillion in assets under management. Its members have committed to transitioning their investment portfolios to net-zero GHG emissions by 2050. In 2023, the UNIQA Group reported to the NZAOA for the first time and contributed to the annual progress report. The UNIQA Group has been a member of the Green Finance Alliance (GFA) since April 2022. Members play a leading role in climate action and demonstrate how protecting the climate and sustainable management are compatible. Their specific goals include, among others, clear exclusion criteria and phased exit strategies for investments and insurance business related to coal, oil and gas- based value chains. As part of our membership, we focused on the requirements for calculating emissions and corresponding targets in underwriting in 2023.

Diversity and inclusion make all the difference!

Our diversity and inclusion (D&I) strategy is the basis for all our activities and is part of our UNIQA 3.0 agenda for the future. A D&I policy was prepared and rolled out for the entire Group to establish commitment and clear responsibilities. The policy will be reviewed annually and revised as necessary to reflect any legislative changes and other developments in the UNIQA Group. Individuals have been entrusted with D&I agendas and a contact person responsible for D&I has been appointed in our core markets.

3.8

Stages along the employee journey -

Annual employee survey 2023

Climate targets validated by SBTi

In 2023, the Science-Based Target initiative (SBTi) successfully validated our interim climate targets for four areas of our investment portfolio, which accounted for 23 per cent of our total investment volume in the baseline year 2021, as well as the 2030 interim targets for our own operational management. This is an important step for us to optimally align our portfolio and our own operation's CO2 emissions (Scope 1 and 2) with a 1.5 degree Celcius climate target path.

Clear targets to reduce insurance- associated emissions

As a member of the Austrian Green Finance Alliance (GFA), it is particularly important for us to set clear targets to reduce our insurance-associated greenhouse gas emissions to net-zero in Austria by 2040 and in CEE by 2050. We were able in the 2023 reporting year to finalise the analysis of our Austrian corporate

portfolio for the 2022 financial year using the PCAF (Partner- ship for Carbon Accounting Financials) methodology to measure insurance-associated emissions. We were also able to carry out the calculation for the year 2023 in Austria. We will use 2022 as the baseline year for tracking of targets in future. Details can be found in the section "Sustainability in insurance activities in corporate business" on pages 50 - 57.

EMAS environmental management system for the core market of Austria

With the adoption of an environmental statement, the implementation of seven internal EMAS environmental audits and the development of expertise, we have set the first important foundations for the introduction of an EMAS environmental management system at our sales locations in Austria. Our goal is to be recognised as an EMAS company by the end of 2024.

Sustainable advice reinterpreted

By recording our customers' sustainability preferences digitally in a structured manner, we focus on individual wishes and needs and offer tailor-made advice. We support the sustainability training of our sales colleges in Austria specifically by offering special training formats, drawing on the support of experts for sustainability from the university and NGO sector and having entered into a cooperation with the Austrian Federal Ministry for Climate Action.

Our Austrian customer portal myUNIQA reduces our environmental footprint:

• 565,000 registered customers
• 21 per cent of our private customers­ use the electronic mailbox
• 465,000 applications are signed electronically

4.4				I get hired
4.0				I am onboarded
4.0				I am working
3.7				I am engaged
3.7				I am learning
3.6				I am performing
3.5				I am changing my roles
3.4				I am rewarded

Group-wide employee survey

In 2023, the first Group-wide Employee Experience (EX) survey achieved an impressive response rate of 75 per cent. A total of 9,588 colleagues from 12 UNIQA countries shared valuable insights into their experience at work. In Octo- ber 2023, we surveyed a group of 869 new colleagues about their experience during the recruitment and onboarding pro- cess. The overall result measured by the UNIQA EX Index is 3.8 stars (on a 5-star scale).

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