New UNIQA strategy: Profitable growth, progressive dividends

• Management presents new “Growing Impact 2025 – 2028” strategy at Capital Markets Day in London
• Average premium growth of 5 per cent per year
• Net combined ratio consistently below 94 per cent
• Annual growth in consolidated profit of at least 6 per cent
• Stable and sustainable return on equity after taxes of over 12 per cent
• Annual increase in dividend per share

Andreas Brandstetter, CEO of UNIQA Insurance Group AG, and Group Management Board members Kurt Svoboda, Wolfgang Kindl and René Knapp present the new strategy chapter to analysts and investors at the Capital Markets Day in London: “Growing Impact 2025 – 2028”.

“With our diversified portfolio, robust sales strength, very strong market position in Austria and the dynamism of our Central and Eastern European companies, we remain on course for growth despite today’s geopolitical and economic challenges.

We will enhance our operational excellence, leveraging the exceptional expertise available to us throughout the Group and accelerate progress in digitalisation, investments in the promising healthcare sector and strategic partnerships. We are addressing megatrends such as an ageing population and the fight against climate change, and integrating them into our business model. However, it is particularly important for our investors that we remain an attractive choice for dividend-paying shares based on further growth in earnings,” emphasises Andreas Brandstetter

Stable market in Austria with promising growth opportunities

Business in Austria, a stable and mature market, is a reliable backbone. UNIQA is the market leader in six out of nine federal states and is clearly in first place in terms of brand awareness of insurance companies. Growth is being driven by the property and casualty segment. UNIQA is also particularly strong in health insurance with a market share of around 44 per cent. With an ecosystem of healthcare services outside of traditional insurance and medical infrastructure, there are numerous opportunities in an ageing society. UNIQA will therefore continue to invest in this area, including with our second brand, Mavie.

The strategic sales partnership with the Raiffeisen Banking Group in Austria and Central and Eastern Europe is also key.

International: attractive growth markets, diversified portfolio and sales strength

“Central and Eastern Europe is the continent’s fastest growing economic region and the potential for the insurance markets to catch up remains high. We are now a top 5 player in these core markets. There are still opportunities for us, and we will grow above the market average until 2028”, says Wolfgang Kindl, responsible for Customer and Markets International.

UNIQA is active in markets with a total of around 160 million inhabitants. This represents enormous potential. The company benefits from a successful market presence under one brand. The earnings contributions of the CEE subsidiaries will continue to increase. Already, around 80 per cent of customers and 40 per cent of premiums come from the CEE region, and the profitability of international business is high.

Synergies and economies of scale from the very successful acquisition and integration of the AXA companies in Poland, Czechia and Slovakia taken over in 2020 have exceeded expectations.

In future, UNIQA plans to sharpen its focus on the existing core markets in Central and Eastern Europe and will therefore dispose of the companies in Albania, Kosovo and North Macedonia. These are the smallest markets in the Western Balkans, with a share of 1.5 per cent of the UNIQA Group’s premiums written. The sale is contingent upon obtaining the necessary official authorisations. The transaction is expected to close in the second quarter of 2025.

Investing in growth

“Our sources of income and profit are diverse and broadly based in terms of regions, products and services. This allows us to continue investing in growth. In the coming years until 2028, we will focus even more strongly on our customers, continuously optimise our business processes, efficiency and performance, and increase our profitability. Advances in digitalisation will also lead to lower administrative costs”, emphasises Kurt Svoboda, Chief Financial and Risk Officer. Substantial investments are being made in IT; digitalisation and automation are enabling efficiency gains.

Svoboda sees new challenges due to climate change and describes the company’s strategy as follows: “We must prepare ourselves for the fact that the burden of natural catastrophes will remain at a high level. That is why we have set up our own NatCat Competence Centre, are expanding our know-how and expertise in underwriting risks and are well prepared with our reinsurance company UNIQA Re in Zurich.” UNIQA Re has been providing reinsurance protection for UNIQA in Austria and the international companies since 2012. In 2023, the first third-party customers were reinsured.

Sustainable transformation processes and ESG offer new business opportunities. The subsidiary UNIQA Sustainable Business Solutions, founded in 2024, extends loss prevention beyond traditional insurance solutions and helps companies to proactively eliminate potential hazards and minimise risks. The company is currently operating in Austria, Poland, Czechia and Slovakia, with more countries to follow.

Growing Impact: key financial figures

Summary of the key figures of the “UNIQA 3.0 – Growing Impact” strategy:

• An average premium growth of around 5 per cent per year: 3 per cent in Austria, driven by business in the property and casualty as well as health sectors. Internationally, the figure will be around 8 per cent.
• Consolidated profit is expected to grow by an average of at least 6 per cent annually over the period.
• The combined ratio, which indicates the ratio of total insurance service expenses to insurance revenue, will be below 94 per cent net after reinsurance.
• The contractual service margin (CSM) sustainability ratio, which measures the sustainability of expected profits from insurance contracts, is expected to increase to around 90 per cent in the UNIQA Group by 2028.
• The UNIQA Group is planning a stable and sustainable return on equity of over 12 per cent net.
• The solvency capital requirement (SCR) ratio according to Solvency II, which is considered to be an indicator of capitalisation, will remain within a stable range of over 180 per cent until 2028.

Still a dividend-paying share

“UNIQA remains committed to an attractive dividend policy,” emphasises Svoboda. On the basis of a solvency ratio of at least 180 per cent, UNIQA strives to allow shareholders to participate in the company’s success with a progressive dividend that increases in line with the annual results. The payout ratio is expected to be 50 to 60 per cent.

ESG: aiming for net zero

UNIQA takes ESG factors (environmental, social, governance) into account for both the insurance and investment business. UNIQA is committed to the Paris 1.5 degree target. The company will achieve net zero emissions within the business model (insurance business, own operations management) by 2040 in Austria, and by 2050 throughout the entire Group (investment, insurance business, own operations management). Sustainable investments account for around 10 per cent of the total portfolio value.

Further details on the UNIQA Capital Markets Day can be found here. A video recording of the UNIQA Capital Markets Day will also be available on this website from 16 December.

Images of the UNIQA Management Board members.