- Upgrade to “A+” for UNIQA Österreich Versicherungen AG, UNIQA Re AG, and UNIQA Poland
- Long-term issuer credit rating of UNIQA Insurance Group AG raised to “A”
- Rational: Very strong operating performance, broader earnings and revenue diversification, robust capital position, and successful deleveraging
S&P Global Ratings has upgraded the ratings of three core entities of the UNIQA Group: UNIQA Österreich Versicherungen AG, the reinsurance company UNIQA Re AG (Zurich), and UNIQA Poland (UNIQA Towarzystwo Ubezpieczen S.A.) are now rated “A+”. At the same time, the long-term issuer credit rating of the listed UNIQA Insurance Group AG was raised from “A-” to “A”. The outlook for all entities is stable.
S&P cites the following main reasons for the upgrade:
- Very strong operating performance and underwriting results, which compare favorably with other “A+” rated insurers.
- Successful execution of the business strategy with greater diversification of earnings between Austria and international markets in Central and Eastern Europe (CEE).
- Robust capital position and solid balance sheet structure, underpinned by a high solvency ratio of 283%.
- Disciplined capital allocation and sustainable deleveraging, further strengthening the Group’s financial position.
The combination of disciplined capital allocation, operational strength, and a strong market position in Austria as well as in the key CEE countries provides an excellent basis for UNIQA to maintain performance in line with other “A+” rated insurers.
Kurt Svoboda, Chief Financial and Chief Risk Officer of UNIQA Insurance Group AG, emphasizes: “S&P’s upgrade of our operating companies to A+ with a stable outlook is a clear confirmation of our successful strategy, our balance sheet strength as well as our stable and diversified business model. Despite the macroeconomic and geopolitical challenges of recent years, our teams have consistently worked with determination to achieve our goals and create sustainable value for our customers and stakeholders. This recognition gives us additional confidence and motivates us to make UNIQA even stronger and more resilient for the future.”
Continuous development, significantly intensified
The experts at S&P state in their rating: “In recent years, UNIQA has managed to deliver a consistently strong and resilient performance despite several external challenges from inflation, the Russia-Ukraine war, and weak macroeconomic developments in Austria in the last three years.”
According to S&P, this strengthened position is “a result of UNIQA's continued developments over the last decade which further intensified after UNIQA acquired AXA CEE operations in 2020.”
Thanks to a strongly diversified business profile, solid and stable earnings also in the future
S&P justifies the stable outlook by stating that UNIQA, thanks to its strongly diversified business profile, will continue to generate solid and stable earnings at the level of other “A+” peers and at the same time maintain its very strong capital adequacy and balance sheet strength.
Upgrade also for bonds
As part of the upgrade, two outstanding junior subordinated bonds of UNIQA were also raised from “BBB” to “BBB+”, while the senior debt ratings were raised to “A”.
The full S&P rating is available as a PDF download.