UNIQA boss Brandstetter: “Health is the new retirement provision”

The debates about elective doctors, two-class medicine, guest patients and ever higher expenses for hospitals, medication and treatments are also felt by insurance companies. However, from her point of view, in a positive sense. “People spend money on insurance or related services,” says Andreas Brandstetter, CEO of Uniqa. “Health is the new retirement provision.”

Uniqa is the market leader in this area in Austria, where 40 percent already have private health insurance. The premiums written across the group increased by 6.3 percent to 1.6 billion euros, 95 percent of which came from Austria. This means that the increase is higher than that in the life insurance sector (5.1 percent).

Riesenbedarf

When asked, Brandstetter clearly has little use for the term “two-class medicine”. There is a “huge need” for additional medical services. And in terms of budget, the state has its back against the wall anyway, as it advocates relief through private spending. Telemedicine will also not stop at Austria to relieve the burden on the system.

For Brandstetter, health is a growth market not only through new insurance contracts, but also through corresponding services. In 2020, the daughter Mavie was launched, who takes care of appropriate health care at the company level. Since last year, Mavie has been active in six other markets in Eastern and Central Europe (CEE) in addition to Austria and Germany. In the previous year, 1,000 new companies were acquired as customers. According to Brandstetter, Mavie’s sales are 250 million euros.

In the life insurance division, Uniqa is recording the greatest growth in the CEE markets. In Austria it was only 1.8 percent last year. “Life insurance has often been declared dead,” says Brandstetter confidently. According to Uniqa CFO Kurt Svoboda, the fact that 30 percent more funds are flowing out than are being added is due to the peak period for life insurance ten to 15 years ago. “This is an effect that will stay with us for several years to come.” Attempts are being made to keep the money within the group using savings products.

Well capitalized

Speaking of money: Similar to competitor Vienna Insurance Group (KURIER reported in yesterday’s edition, note), there is sufficient capital available. But while VIG says it is in some discussions about takeovers in CEE, Uniqa does not currently have anything concrete or ready to make a decision in mind, says Brandstetter. “We are open to everything that happens in the region.” After exiting the small markets of Albania, North Macedonia and Kosovo, Svoboda reaffirmed its commitment to Eastern Europe and also to acquisition opportunities outside of this region.

Overall, Uniqa increased its profit before taxes by 16.9 percent to 516.4 million euros. This year it is expected to be between 540 and 570 million euros – subject to exceptionally high, negative costs caused by natural disasters or capital market turmoil. After the good figures, the dividend is expected to increase from 0.60 to 0.72 euros per share. With a target payout ratio of 50 to 60 percent based on an annually increasing dividend, we want to offer our shareholders an attractive profit-sharing bonus,” says Brandstetter.