Uniqa Inrnce Grp Unsp/Adr

Ladies and gentlemen, we warmly welcome you to the conference call for the first half-year results for 2026 of the Unica Insurance Group AG. I am pleased to welcome the Chief Financial and Risk Officer Kurt Svoboda, who will guide us through the presentation shortly. After the presentation, we will move on to a Q&A session where you will be allowed to ask questions via audio line today. And having said this, I am handing over to you, Mr. Svoboda.

Thank you very much and welcome everybody to UNIQA's results on half year 2026 based on a new set of slides which should on the one hand give you as auditorium more transparency, more information and service about UNIQA insurance group AG. I start on the page number four which gives from our perspective the situation which is especially for us in the insurance industry at the moment the most important one. It's about interest rate environment. It is visible that all over Europe we have a quite impressive increase about on the interest rates. which on the one hand gave us in the result a boost especially in the ordinary income but also on the other hand as IFRS 17 is a very economic driven accounting scheme also on the topic of special discountings and topics on the evaluation. Inflation is a never-ending story, especially in our sea region. Austria yesterday reported an inflation of about 2.8 percentage points. All in all, we see inflation as manageable and in our results and in our business at the moment, not as a risk. But still, according to energy prices, global development, this is an ongoing topic, especially for the next couple of months. Climate and nut-cut I think is something that everybody can itself feel and see what's going on in terms of the heat about the dry situation especially here in eastern part of Austria and generally all over Europe with fires and with the heat wave across Europe. The positive thing is for us that we can report that in the first half year we had neglectable impact on nut cut and weather related claims about 22 million euros which is accordingly to the previous years neglectable and on the other hand and this is a message up front we do not believe that this stays at this level and therefore we took actions in this balance sheet for the half year to be prepared for higher losses in the second half year. But I come to that later on. I moved on to the group results on page number six, pointing out the growth by 12 percentage points, including all business, primary business and reinsurance business, including unicare and reinsurance. The primary business itself is in line with what was expected. I also will refer to that later on. Profitability with a nice ROE of 16%, return on risk by around 18%, more or less stable to the comparable period in 2025. and a solid solvency position that makes us ready for further improvement of our business and also our growth. If we come to page number seven and look about earnings before taxes, I would like to draw your attention on two topics. On the one hand, we have a 10% increase on the EBT. which was at a first glance driven only by the financial result because of technical result and other result is going down. This is from a perspective on the balance sheet purely looking correct but if you take into consideration that what I stated by talking about climate change we took actions in the first half year that we are prepared for balancing out the higher losses maybe or also development negatively on the capital markets in the second half of 2026. These measures that we took they are on the one hand are allocated to the technical result P&C Reserves, Health Reserves, but also on the other hand, on the other result. If we make it on a comparable basis, we have an improvement as well in the technical result as also in the other result. Therefore, please take the technical result not as an operative one, take this as an accounting one, which is impacted by measures that we took in the first half year. Good is the development of the admin concentration stable by 14.8 percentage points. Page 8, talking about the growth, gave us on the one hand in the business lines, and now here we are on the topic of the primary business, a 7.1 CAGR between 2021 and 2025. We can report out that we have, especially in the international business, a catch-up as Poland has developed in the second quarter quite impressively and tremendously. Maybe you remember that we have a very soft market in Poland in the first quarter of 2026. which gave us the position that we grew below the market and could not improve our growth like it was the case in 2025 but especially the month May and June have been very positive especially also for us we grew above the market we could achieve so far a growth in Poland by 6.6 percent We are above the market, the market growth at the moment was 3.3, Unica was 5.4 and therefore we are very confident to achieve in total in our international business the 8% by the end of the year in 2026. The CSMs in health and in life are on track. This is on page number 9. We show you here the distinction between operative and non-operative topics, especially when we talk about new business. We are quite positive with that what we achieved in the first half year 2026. Business line performance on page number 12. We have a combined ratio which is 91.6 and I can tell you that this is also in that case impacted by the measures that I talked about. If you carve out those measures I'm talking about, the information I can give you is that combined ratio was net basis below 90. Another thing that drove first half year very positively was the runoff. You see it here on page 12, 3.9% impact coming from better settlement of major big claims from the past. We do in that case also not believe that this goes on in the second half. So also here smoothing out by the end of the year is to be expected. When we talk about the international life business, we are now on page number 13. We can see here a very positive trend, especially what the earnings before tax is. and the premium the international business has at the moment higher importance in the live business than the Austrian business this has to do with prolongations that are and also expiring contracts in Austria and therefore focus on the international business with a very high new business margin and the satisfying CSM development which is then visible on page 14. The health business I'm talking about, page number 15, has an improvement in the earnings before DEX of up to 24 million euros. This has to do on the one hand with a better financial result. By the way, on the financial result, but I come to that in a minute, also on the CSM level, Strabag and higher, The technical results excluding actions and measurements that we took for the second half of the year is very positive for us. The new business margin I'm talking about 7.8% is visible on page number 16 in the upper right hand corner and gives us a confident new business CSM by 73 million euros. Also here the non-operating economic variance by around 280 million is quite high. When we talk about market performance itself, looking on Austria, page number 19, on the one hand, we are quite happy that the balance between the Austrian and the international contribution by both The earnings before taxes and the technical result is well balanced. This is also for us also key because this gives us a solid basis for the dividend stream by the end of the year. Combined ratio in both segments are below plan and gave us also room for taking actions for the second half. An international country deep dive on page 21 I would like to give on Poland. I explained to you that we have a growth of about 6.6% on premiums. I can also give you an information that we have a very solid and good PNC combined ratio in Poland. Leading to a quite good technical result of 47 million euros and we expect that Poland, especially in the second half of the year, will contribute much more than in the first half year. Especially when we talk about growth, again I mentioned before that we grew by 5.4% in Poland. This is by more than 90% driven by the volume effect. So from the 5.4, 4.6% is coming from volume effects and only 0.7 is coming from pricing effects. So this means the market is back and we as in our USP in the pricing can also in that case take our advantage on volumes and on new business the investment performance chapter 3.2 on page 22 is visible that on the one hand we could improve because of the interest rate situation our other comprehensive income by close to 1 billion interest rates on a 10 years austrian government bond have reached favorable 3.1 percentage points and this leads next page You can see this to a new investment yield which is more in line with that was about in the last quarters 4.3% and the average investment yield by 3.3 percentage points. Yes, we took also actions to improve the business. We sold some bonds out of duration purposes and with this bought new bonds with higher duration and higher ordinary income for the future. The bridge between the net investment income and the net financial result you see on the left hand side. Why is that that big at Unica? This has to do with the accounting treatment as variable fee approach and therefore the high impact from the fair value over the underlying item in health and in the life business. Cash and financial leverage is new information that will give especially in the half year two things I would like to report out on page 26. It's on the one hand that the cash remittance to the group is especially in line what was the target for 25 and also for the rest of Unica 3.0 and also the diversification of the cash remittance to the group. is in line between Austria, Unicaree and international business. So dividend streams and also our commitment to a progressive dividend in the future is in line with the funding of it. And this brings me on page number 28, the outlook and the guidance for the rest of the year. I can imagine that some of you are thinking about okay with a result of 327 million euros and the guidance of 540 to 570 million euros what does this mean for the second half of the year? Is there anything to expect because of less performance than in the first half? What I can tell you is We live in a situation that, especially here in Europe, we have high volatility. This comes from global impacts, especially coming from capital markets, and therefore we are cautious, believing that the impact, the positive impact on interest rates and also on bond and equity market in the second half of the year 26 is the same as it was in the first half year. And for that, we want to be prepared. The second thing is, we have now more or less the end of August, but still not the end of the season, why CAT events can have big hits in especially countries like Austria, Hungary, Slovakia, Czech Republic. And also for that, we want to be prepared. In other words, if such major events happen in the second half of the year, Unica is prepared to balance that out and achieve that what we propose to you and to the capital markets. That means the target range of 540 to 570 million Euro. If this is not the case and we, and especially for the population of these countries, can avoid things like I talked before, UNIQA will report, especially then in Q3, what this means for a new outlook and the guidance for the year 2026, but still at the moment for us it is too early in that case. The rest you think is known and for that I would like to close here my explanation about the half years and now happy to take your questions. Thank you.

Thank you, Mr. Svoboda and ladies and gentlemen. Now it's your turn. We are opening the Q&A session. If you would like to ask a question, please click on the raise your hand button on the lower part of the screen. If you are dialed in by phone, please press star 9 to raise your hand. And we have Participants raised their hand. Mr. Antoine Bouchetout, you should be able to unmute yourself, switch on the microphone, please, and ask your question. Mr. Bouchetout, please.

Good afternoon, everyone. Thank you for taking my questions. I have three. First, I'd like to come back to PMC because I'd like to better assess your underlying performance. So thank you for sharing that below 90% net combined ratio restated for the value sheet strengthening. But there was also the runoff ratio which had a favorable impact this first half. I think historically, You had a ratio which was closer to maybe minus 3%, and you did mention that it should come back most likely in H2. So I was wondering if you could maybe confirm that a good number for a medium-term perspective would be that minus 3% that I just mentioned. And also in some of your slides, you mentioned increased basic claims in P&C. I was wondering if you could provide more details on these. In what line of business? It seems to be mainly driven by Austria, but maybe I'm wrong on this. And I was wondering if you could maybe specify if it's more related to frequency or maybe severity or any additional information on this would be helpful. Then two other questions, but on the life and health side this time. Firstly, the technical results declined in both life and health. I think I understood from your comments that this was also related to The technical measures that you implemented in the first half, I just wanted to confirm that the spread between the CSM release and the technical result in life and health was related to those measures. And last question, on the live new business, it increased quite substantially in Austria and in the past you mentioned product launches or product launch projects that could support sales in Austria. So I was wondering if that was what drove the new business during the first half. Thank you.

Thank you, Adan. So talking about the first topic about P&C runoff basic claims and about collops. So first of all, yes, it is the case that we had runoff of about 3.9% as it's stated in the document. and I can tell you that normally we calculate with a runoff of about on average between one and a half and two percentage points why this was the reason in the first half year that it was more there have been one one-offs that much more one-offs that we have been in the past about 1.5 percentage points this has to do with lines of business like property this has to do with countries Poland Czech Republic and not Austria and this has to do with the fronting claim that we had in Austria in the first quarter fronting is treated in the accounting scheme especially in IFRS as gross and you see then the net result like it is in the reinsurance and therefore it's also visible in the run of treatment It's more or less not the frequency, it's more the severity, as you stated. And on the other hand, but basic claims, Anton, I can tell you that the basic claim The ratio in Unica for the first half year is 53 to 54 percentage points, defined as all claims excluding weather related, excluding nut cuts and excluding major claims above 500,000 euros. Second question was about the technical result in life and in health. Has it declined? Yes, you're correct. Especially in the health business, we took care especially on two aspects. A, maybe you know that in Austria the Health insurance companies offering inpatient and outpatient tariffs or ambulant tariffs and especially those ambulant tariffs are seen as a voucher system. An ambulant tariff or a tariff like that works Also, but not 100% in a way, that you have a limit which you can take as a benefit out of your premiums. If you go to Bryan Doctors, if you go and get new glasses or lenses or things like that. But you have a limitation on that. People know exactly how the limitation looks like and They are reaching in their invoices especially for those things in the first half year and that was another reason why you see here more business, more claims, in that case also more services for our customers. We expect this to be better in the second half of the year as those limits have already been achieved. In the live business, we took more or less no actions. This is the real situation out of the CSM. What we had in the live business in the second half of the year, standalone basis, was a recognition of an additional provision related to unit-linked legal cases in Poland. Third topic, you talked about the new business in Austria. Yes, you're right. We are quite happy with the new business margin in Austria. We are not happy with the premium volume. The new business comes from a better unit linked product and from a better unit linked profitability. And this is the reason why we have in that case a quite nice new business margin.

Okay, thank you very much.

Yes, thank you Mr. Buschtu for your question and we get to the next participant, Mr. Schnirch. Ulrich Schnirch, you should be able to unmute yourself now. Please switch on the microphone and ask your question. Mr. Schnirch, please go ahead. Mr. Schnich, we still can't hear you. You have to switch on your microphone. So that does not seem to work. And for those being on the telephone, please raise your hand by dialing star and nine on your telephone keypad. So Mr. Hutner, Mr. Michael Hutner, you should be able to unmute yourself.

I may take the following questions from Mr. Hartler because he was... Yeah, no, this is... Hey, sorry, sorry, I'm panicking.

I've got... Yeah, no, seriously, the instructions are a little bit slow. So, first of all, can you remind us what the confidence for your growth outlook? So you're maintaining 8% for the CE and non-life and half year was 7. So we only have six months now to catch up, which means we need 9% second half. I'm sure you said this on the call, but I couldn't hear. How much was the prudency addition in reserves in Q2? It feels like it would have been a huge number. There were no net cuts. My guess is we're looking at around 100 million, but I'm not sure. The third one is on the deal outlook. I know you can't discuss individuals, but is there a feeling that now things have become a little bit more affordable, there's more likelihood of a deal coming up? And then last point, and I think you did highlight it, you said you decided not to raise guidance. Let me put the question in a more positive or negative way. What would stop you raising the guidance in Q3? Thank you.

Yes, Michael, the line was not that good, but I think I can anticipate what your questions have been. If I'm not correct, then please tell me. So about the first question was about how are we confident to achieve the 8% full-year growth in the CE non-life, as at the moment we have 7%. Michael, two elements. The first one was, I repeat again, Poland and the second one is about Czech Republic and Slovakia. Coming back to Poland. We have in Poland at the moment 6.6% growth, which is for us a good sign because we have been half of this in the first quarter of 2026. We see now that the market is The market is not anymore softening and we see here that our new business is increasing on a weekly basis. We have caught up also the market position because in Q1 and in April and May we have been growing below the market. We have now since June, July and also I guess in August we are now ahead of the market. which in total gives us a favorable situation, half year 2026 Michael, Unica 5.4% growth market.

So by now we couldn't hear you in the past about 10 seconds.

This is the reason why we in Poland are confident that this contributes to the 7-8% by the end of the year. The second market is Czech Republic and Slovakia. Thank you for your attention. to achieve the 8% by the end of the year. So this is the answer to your first question. Your second question is about what do we see as a budget for the CART event for the second half of the year. You are not far away from that what you stated with the 100 million. If you just remind Boris was of around 85 million euros so therefore we see also a position in that way to be ready to compensate especially in the second half of the year if it comes. Your third question is about your impact on the measurements in the first half year. So I can tell you we had topics of around 80 million impacting the technical result of Unica in the first half year. Distributed about health, distributed in P&C, distributed in the external reinsurance business. And your last question, Michael, is what can hinder us in terms of increasing the outlook by the end of the year? The only thing that hindering us is if one of those elements I explained in the beginning of my explanation comes true. If there is a cut event in Europe in the next couple of weeks, then yes. If there is a negative impact on the capital market or on the equity market, In the next weeks out of US, Iran, Iran, Europe, whatever your name, this can have impact at Unica and again this is why we want to have here security and safeguarding for the rest of the year. If this is not the case Michael, we will certainly come up and give you new guidance.

Yes, thank you very much and we straight head back to Mr. Bustu. He seems to have a follow-up question. So Mr. Bustu, you can unmute yourself and ask your question, please.

Yes, indeed. Thank you for taking my follow-up question. I wanted to come back on the solvency ratio. You have lowered sensitivity to the interest rates quite significantly. This was already visible in Q1. But I was wondering if you could share some of the actions that you took to make this possible. Thank you.

Yeah, John, about the following actions we took. On the one hand, we took a little bit of a view of ALM. There is a microphone in the back So we took an ALM approach that means The second thing is we restructured the model especially when we look about fully the model of Unica and the third thing was that especially also the profitability of our products and in the health business with higher increases of indexation was better reflected in our With these we feel now comfortable and yes you're right we have now minimized the volatility on the movements 50 or 100 basis points which gives us more comfort especially the personal lines movements on interest rates okay thank you

Well, thank you very much again, Mr. Buschtu. And I'm waiting for maybe some participants raising their hand and questions. This seems to be not the case. In the meantime, we have not received further questions. and would therefore come to the end of this conference call. Thank you very much to the participants and their interest in Unica Insurance Group. A big thank you to you, Mr. Svoboda, for the presentation and the time taking the questions. And before we close this call, I hand back to you, Mr. Svoboda, once again for some closing remarks. Thank you from my side. Have a lovely remaining week and goodbye.

Thank you and also thank you for participating in UNIQA's 15th half year 2026 results. I wish you a nice remaining summer and all the best. Thank you.