UNIQA revises 2020 forecast; decides against complete elimination of proposed dividend

Written by Adam Cadle

14/04/2020

UNIQA has revised its forecast for 2020 and expects negative earnings before taxes in the low double-digit million euro range for the first quarter of 2020.

“The significant negative effects of COVID-19 on the capital markets in the first quarter of 2020 will have a negative impact, above all, on the investment result of UNIQA,” the company said.

“Due to the high uncertainty regarding the overall economic and financial impact of COVID-19 in the further course of the year, UNIQA cannot maintain the forecast for the business year 2020, according to which the result from ordinary activities in 2020 will be approximately at the level of 2019. UNIQA therefore expects a possibly negative result before taxes for the full year 2020.”

UNIQA said a complete elimination of the dividend will not be proposed to the annual shareholders meeting but a reduction of the planned dividend of 54c per share to 18c per share for the 2019 financial year.

In a statement, the insurer said: “A complete elimination of the dividend for the 2019 financial year is not proposed to the annual shareholders meeting because - despite the burdens resulting from developments on the capital markets - on the one hand, the solvency ratio (SCR) at the end of the first quarter of 2020 is at the upper end of the target range of 155% to 190%. At the end of 2019, the solvency ratio (SCR) was 216%.”

UNIQA Insurance Group AG will postpone the planned transfer of in-group services and their reinsurance business to UNIQA Österreich Versicherungen AG. UNIQA Insurance Group AG will remain for the time being as a reinsurance company. The merger of UNIQA International AG and UNIQA Österreich Versicherungen AG will take place according to plan.

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