UNIQA Group Sustainability Report 2023 11.04.2024

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

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

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 Westeworld. 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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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.

2023 Sustainability Report

1.3 UNIQA at a glance

Central Europe (CE)

The pin shows the

EasteEurope (EE) market position in

the relevant country.

South-EasteEurope (SEE)

UNIQA at a glance

PL

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UA

5

CZ

5

SK

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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 EasteEurope (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 EasteEurope 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.

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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.

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.

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

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).