UNIQA Group 2022 17.05.2023

Solvency and Financial Condition Report 2022

UNIQA Group

living better together

2	2022 / UNIQA GROUP

Ladies and gentlemen, dear shareholders, dear UNIQA customers,

With this Solvency and Financial Condition Report, we want to share with you a comprehensible overview of the UNIQA Group and its risk and capital position for 2022. A sound solvency position and proactive approach to risks continue to form the basis of our business actions for the benefit of our customers, employees and shareholders.

The review for 2022 is unfortunately heavily marred by the tragic events in Ukraine. The UNIQA Group and its employees were also directly affected through our companies in Russia and Ukraine. The initial focus in Ukraine following the outbreak of the war was on supporting Ukrainian colleagues and their families in fleeing the war while also maintaining business operations. This ranged from organising housing outside the country, to collecting donations and setting up a buddy system for refugee colleagues.

Even though 2022 was challenging and heavily influenced by the war in Ukraine and the associated economic factors, the UNIQA Group recorded a noticeable increase in both its corporate result and its solvency ratio. This development was heavily influenced by the capital market environment. The effects on interest rate trends and the rise in the euro yield curve also had the most significant impact on the increase in the UNIQA Group's capitalisation ratio. This further reinforced our resilience to unexpected shocks. UNIQA will continue to monitor economic developments closely so as to be able to react quickly to potential changes or other events.

Huge efforts were made in 2022 to achieve the goals of the "UNIQA 3.0" corporate strategy. Following on from what has been a successful year, it is still important to continue setting ambitious goals. UNIQA not only wants to meet the expected challenges, but also use them as an opportunity to keep evolving. The continuous development of risk management and the models used to measure and control the solvency and financial condition form an essential basis for this.

We hope that this report on the 2022 solvency and financial condition of our company helps to further strengthen your trust in UNIQA and our products and services.

Many thanks for this trust.

Yours sincerely,

Kurt Svoboda

CFO/CRO UNIQA Insurance Group AG

2022 / UNIQA GROUP

Contents
Executive summary	5
A Business and performance	8
A.1	Business activities	8
A.2	Technical result	12
A.3	Investment performance	16
A.4	Performance of other activities	18
A.5 Any other information	19
B System of governance	20
B.1	General information on the system of governance	20
B.1.1 Supervisory Board	20
B.1.2 Management Board and committees	22
B.1.3 Key functions	26
B.1.4 Remuneration	33
B.1.5 Significant related party transactions with companies and individuals	35
B.2	Fit and proper requirements	36
B.3	Risk management system including the company's Own Risk and Solvency Assessment	39
B.3.1 General	39
B.3.2 Risk management, governance and organisational structure	39
B.3.3 Risk strategy	40
B.3.4 Risk management process	41
B.3.5 Risk-related committees	42
B.3.6 Governance of the partial internal model	42
B.3.7 The company's Own Risk and Solvency Assessment (ORSA)	43
B.4	Internal control system	46
B.4.1 Overview of the internal control system	46
B.4.2 Compliance function	46
B.5	Internal audit function	46
B.6 Actuarial function	47
B.7	Outsourcing	47
B.8 Any other information	48
C Risk profile	49
C.1 Underwriting risk	51
C.1.1 Description of the risk	51
C.1.2 Risk exposure	52
C.1.3 Risk assessment	54
C.1.4 Risk concentration	56
C.1.5 Risk mitigation	57
C.1.6 Stress and sensitivity analyses	58
C.2 Market risk	58
C.2.1 Description of the risk	58
C.2.2 Risk exposure	59
C.2.3 Risk assessment	59
C.2.4 Risk concentration	60
C.2.5 Risk mitigation	60
C.2.6 Stress and sensitivity analyses	61
C.3 Credit risk/default risk	62
C.3.1 Description of the risk	62
C.3.2 Risk exposure	62

4	2022 / UNIQA GROUP

C.3.3 Risk assessment	63
C.3.4 Risk concentration	63
C.3.5 Risk mitigation	63
C.3.6 Stress and sensitivity analyses	63
C.4 Liquidity risk	64
C.4.1 Description of the risk	64
C.4.2 Risk exposure	64
C.4.3 Risk assessment and risk mitigation	64
C.4.4 Stress and sensitivity analyses	65
C.5 Operational risk	65
C.5.1 Description of the risk	65
C.5.2 Risk exposure	65
C.5.3 Risk assessment	65
C.5.4 Risk concentration	65
C.5.5 Risk mitigation	66
C.5.6 Stress and sensitivity analyses	66
C.6 Other material risks	66
C.7 Any other information	66
C.7.1 Risk concentration	66
C.7.2 Risk mitigation from deferred tax	68
D Measurement for solvency purposes	69
D.1 Assets	69
D.2 Technical provisions	78
D.2.1 Non-life technical provisions	79
D.2.2 Life and health (similar to life) technical provisions	84
D.2.3 Use of volatility adjustments	87
D.3 Other liabilities	87
D.4 Alternative methods for measurement	92
D.5 Any other information	92
E Capital management	93
E.1 Own funds	93
E.2 Solvency capital requirement and minimum capital requirement	98
E.3 Use of the duration-based equity risk sub-module in the calculation of the solvency capital requirements	99
E.4 Differences between the standard formula and any internal models used	99
E.5 Non-compliance with the minimum capital requirement or solvency capital requirement	103
E.6 Any other information	103
Appendix I - Affiliated companies and associates as at 31 December 2022	104
Appendix II - QRTs	106
Appendix III - Regulatory requirements for the SFCR	130
List of figures	131
List of tables	132
Glossary	134

2022 / UNIQA GROUP

Executive summary

The following executive summary is aimed at providing a compact overview of the main content in this Solvency and Financial Condition Report of the UNIQA Group.

The figures stated here, both in the executive summary and in the report itself, relate exclusively to UNIQA Group. For all other figures, please refer to the respective reports of the individual companies for 2022.

We present the company and its underlying business model together with the most important figures related to premium reve- nues, benefits and investment performance in Chapter A, Business and performance. Overview:

The UNIQA Group provides its customer with a comprehensive portfolio of products in property and casualty insurance, life insurance and health insurance.

The listed holding company, UNIQA Insurance Group AG, manages the Group and also operates in the indirect insurance business (i.e. inward reinsurance).

UNIQA Österreich Versicherungen AG is a wholly owned subsidiary of UNIQA Insurance Group AG and has been the Group's only direct insurer on the Austrian market since 1 October 2016. Business activities include all product lines as in the UNIQA Group.

The UNIQA Group operates in the core markets of Austria and Central and EasteEurope as well as, on a lesser scale, in WesteEurope. The Group is now made up of more than 80 companies in 18 countries.

With its comprehensive product range, UNIQA is a multiline insurance company that sells its products based on a multi-channel strategy

that means using all sales channels likely to produce successful results (exclusive sales, insurance brokers, banks and direct sales). The objec- tive is to achieve a balanced mix between the business lines, with a con- sciously managed surplus in property and casualty insurance in the pre- viously ongoing low interest rate environment.
UNIQA's total premium volume, including savings portions from unit- linked and index-linked life insurance in the amount of €335.0 million (2021: €324.6 million), increased by 3.9 per cent to €6,605.2 million in 2022 (2021: €6,358.0 million). Premiums written in property and casualty insurance increased by 5.6 per cent to €3,686.0 million in 2022 (2021: €3,489.5 million). In health insurance, premiums written rose by 4.1 per cent to €1,277.3 million in the reporting period (2021: €1,226.5 mil- lion). In life insurance, premiums written including the savings portion of unit-linked and index-linked life insurance remained stable overall at €1,641.9 million (2021: €1,642.0 million).

Figure 1: Distribution of premiums by UNIQA Group's lines of business

Details on the individual business lines and explanations on their developments are provided in Chapters A.2 to A.5.

As outlined in Chapter B, System of governance, UNIQA has developed the organisational structure further within the scope of the preparations for Solvency II, resulting in a transparent system with clear assignments and an appropriate separation of responsibilities. The core of this system is the "three lines" concept, with clear distinctions between those parts of the organisation that assume the risk within the scope of business activities (first line), those that monitor the assumed risk (second line) and those that carry out the independent internal reviews (third line).

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UNIQA Insurance Group AG published this content on 17 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 May 2023 06:36:50 UTC.