Earnings Document
Media Release
Quarterly Statement:
- Combined ratio in property-casualty reinsurance (86.5%) only slightly higher than expected (86%), despite above-average losses attributable to natural catastrophes
- Total technical result for life and health reinsurance (€320m) and net result for ERGO (€219m) exceed pro-rata guidance (full year: €1.0bn and €0.7bn, respectively)
- April renewals generate considerable premium growth (+11.1%) with rate increases (+4.7%)
- Positive trend in investment business continues: retuon investment increases to 3.0%
- Outlook confirmed following pleasing operational performance
"The earthquake that hit
Summary of Q1 figures
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based on IAS 39, the standard applicable up to
In Q1 2023,
Equity was higher at the reporting date (€28,182m) than at the start of the year
(€27,245m). The solvency ratio was approximately 254% (260% as at
The annualised retuon equity (RoE) for Q1 2023 was 17.3% (23.6%).
Reinsurance: Net result of €1,051m
The reinsurance field of business contributed €1,051m (1,324m) to the Group's net result in Q1. Insurance revenue from insurance contracts issued climbed to €9,232m (8,656m). The total technical result amounted to €1,248m (1,588m), and the operating result was €1,467m (1,598m).
Life and health reinsurance generated a total technical result of €320m (238m) in Q1. The contribution to net result from release of the contractual service margin was in line with expectations. Strong growth in new business more than offset the amount released. The net result for life and health reinsurance totalled €291m (367m). Insurance revenue from insurance contracts issued came to €2,734m (2,913m).
Property-casualty reinsurance generated a net result of €760m (958m) in Q1. Insurance revenue from insurance contracts issued rose to €6,498m (5,743m). The combined ratio was 86.5% (77.0%) of insurance revenue (net). The normalised combined ratio was 85.1%.
Major losses of over €30m each totalled €1,035m (618m). These figures include gains and losses from the run-off of major losses from previous years. Major-loss expenditure corresponded to 16.4% (11.1%) of insurance revenue (net), and was thus above the long-term average expected value of 14%. Man-made major losses fell slightly to
1 Overlay approach applied to participating business in ERGO life and health insurance.
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€165m (170m). Major losses from natural catastrophes rose to €870m (448m). The major loss figures above take account of the effects from discounting and risk adjustment. As a consequence of the earthquake in
In Q1, reserves of €314m (291m) were released for basic losses from prior years; this figure corresponded to 5.0% (5.3%) of insurance revenue (net).
In the reinsurance renewals as at
Prices developed positively overall and for the most part more than compensated for the significantly higher loss estimates in some areas, which were caused primarily by inflation or other loss trends. To varying degrees, price increases were evident around the world. All in all, prices for the
ERGO: Net result of €219m
In the ERGO field of business,
The ERGO Property-casualty
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ERGO International generated a net result of €12m (84m). Major losses in Polish property-casualty business, the negative claims development in legal protection insurance and a seasonal effect in Spanish health insurance business had a material impact on the net result. These developments were partially offset by contributions to net result from the undertakings in
The total technical result for the field of business amounted to €561m (275m), and the operating result was €301m (€267m). In the Property-casualty
Investments: Investment result of €1,612m
Regular income from investments climbed to €1,601m (1,415m). The balance from write-ups and write-downs was -€28m(-1,031m). The balance from gains and losses on disposal came to €166m (936m). The fair-value change was €74m (-926m). Write- downs and falling stock markets in connection with the war in
Overall, the investment result for Q1 represents a retuof 3.0% on the average market value of the portfolio, which is considerably higher than the forecast of above 2.2% for the full year. The running yield was 3.0%, and the yield on reinvestment 4.4%. As at
Outlook for 2023: Annual guidance unchanged at €4.0bn
All forecasts and targets face considerable uncertainty owing to fragile macroeconomic developments and volatile capital markets. In particular, there continues to be considerable uncertainty regarding the financial impact of the Russian war of aggression in
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Disclaimer
This media release contains forward-looking statements that are based on current assumptions and forecasts of the management of
Attachments
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Aegon’s trading update for the first quarter 2023
UNIQA Group 2022 17.05.2023
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